BNP Paribas joins European rivals in posting boosted profits
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Loading... - Bertha Friedrich
- 04 Nov 2022
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BNP Paribas has posted higher-than-expected revenues and profits for the third quarter as it joined some of its rivals across Europe in benefiting from rising interest rates and offset a decline in share sales and dealmaking with a thriving trading business.
France’s biggest listed bank, which has made a push to extend its ties with companies across Europe in recent years, said net profit had jumped 10.3 per cent from a year earlier to €2.76bn, beating Refinitiv forecasts of €2.36bn.
In BNP Paribas’s corporate and investment bank, revenue from trading rates and commodity derivatives in particular boosted its earnings, at a time when businesses have been hedging their operations against rising energy prices.
That activity helped offset a fall in capital markets income, as companies held off on stock market listings and financing for acquisition deals slowed while recession fears gripped markets. BNP Paribas also said it had been hit by markdowns on leveraged finance loans that it had underwritten and struggled to sell down.
Overall, its corporate and investment banking business posted a 5.9 per cent rise in revenues — a slightly slowdown from a quarter earlier — to €3.8bn.
Rising revenues in BNP’s corporate and personal banking division reflected the boost from rising interest rates that has started to trickle through for lenders across Europe as profitability on their loans business improves.
Rivals from Deutsche Bank to Santander have also reported bumper profits for the July to September period as a result, even as economic headwinds rise.
Rising energy prices in Europe in particular are raising fears for businesses struggling to cope with their bills or pulling industrial investments. Read More...
