BNP Paribas, France’s number one bank, said third-quarter net income rose 11 per cent from a year ago as gains in fixed income trading and in international retail offset a lacklustre economic environment in its core European markets.
The third-quarter results mark a return to profit for the bank which posted its first net loss since the 2008 financial crisis in the previous quarter, the result of a $8.9 billion fine from US authorities for breaking US sanctions against Sudan, Cuba and Iran over a 10-year period up to 2012.
BNP reported net profit of €1.5 billion, compared with €1.36 billion a year earlier. Analysts expected earnings of €1.576 billion, on average.
Revenue rose 3.9 per cent to €9.54 billion from €9.18 billion in the third quarter of 2013. Revenues in the investment banking business - a business line closely watched by the market following
BNP’s settlement with the US authorities - grew by 2.9 per cent in the third quarter, signalling the affair did not affect relationships between
BNP and its clients. "CIB activities have been doing well, particularly fixed income...in rates and in forex," BNP Paribas chief financial officer Lars Machenil said.
Under the terms of the settlement with the US authorities, BNP will have to clear all its dollar transactions in New York, under supervision. Any oil and gas related business landing there throughout 2015 will be forwarded to a correspondent bank for clearing.
Mr Machenil said that operational solutions were being worked out in order to reach a deal with banks.
Reuters
