BNP Paribas 1Q Net Profit Rose 22% -- Earnings Review
May 02 2019 - 04:13AM
Dow Jones News
By Pietro Lombardi
BNP Paribas SA (BNP.FR) reported results for the first quarter
on Thursday. Here's what you need to know:
NET PROFIT: France's largest listed bank by assets reported a
22% increase in net profit to 1.92 billion euros ($2.15 billion).
This compares with analysts' expectations of EUR1.99 billion,
according to a consensus forecast provided by FactSet.
REVENUE: Revenue increased 3.2% on year to EUR11.14 billion,
beating expectations of EUR10.74 billion.
WHAT WE WATCHED:
-DISPOSALS: Capital gain on the sale of 14.3% of SBI Life
Insurance Co. (540719.BY)--BNP's Indian joint venture with the
State Bank of India--boosted the bottom line.
-INVESTMENT BANK: An unexpected strong performance of its
fixed-income business supported the bank's results. BNP's
fixed-income revenue jumped roughly 29%, supported by a strong
performance in rates and foreign-exchange transactions. Equity
revenue, however, was down about 30%. Revenue at the corporate and
institutional banking division was up 3.5%. The unit "recorded this
quarter an upturn in client activity despite a still lackluster
market context at the beginning of the quarter," the bank said.
-DIVISIONAL PERFORMANCE: The low interest-rate environment
weighed on the bank's domestic-markets division, whose revenue
declined slightly. The international financial-services unit, which
includes wealth management, consumer finance and insurance, posted
a 9.5% growth in revenue. "These results showed better than
expected CIB results (mainly in fixed income), resilient domestic
market (excluding Italy), strong insurance that more than offset
weaker BancWest and wealth management," Citi said.
-CAPITAL: "The negative comes from capital," Goldman Sachs said.
BNP's core Tier 1 capital ratio--a key measure of capital
strength--slipped to 11.7% in March from 11.8% at the end of
December.
Write to Pietro Lombardi at pietro.lombardi@dowjones.com
(END) Dow Jones Newswires
May 02, 2019 03:58 ET (07:58 GMT)
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