BNP Paribas rises as much as 7% after beating expectations with 3rd quarter results
- BNP Paribas reported a 2.3% drop in net income in the third quarter to 1.894 billion euros ($2.21 billion), but this topped expectations for a reading of 1.6 billion euros.
- Shares in France’s biggest lender rallied by as much as 7%, topping an index of European banking stocks and outperforming a 2% rise in Paris’ CAC 40 index.
- The bank’s investment banking division posted a 17.4% rise in revenue in the third quarter.
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BNP Paribas reported third-quarter revenue held steady in the third quarter of the year and beat expectations with a smaller-than-expected decline in net income on Tuesday, which sent its shares up by as much as 7%.
France’s largest lender, and Europe’s second largest bank by assets after HSBC, said net income in the three months to September fell 2.3% to 1.894 billion euros ($2.21 billion) compared with the same quarter last year, but this was above analyst expectations for 1.6 billion euros ($1.87 billion), according to data provider Refinitiv.
Total revenue, at 10.885 billion euros ($12.74 billion) was down just 0.1% from the third quarter of 2019, the bank said.
Shares in BNP Paribas were the biggest gainers on Paris’s CAC 40 index, rising by nearly 5.7% and topping the Stoxx Banking index.
The bank posted a 17.4% rise in revenue at its investment banking division, which houses its trading and markets unit.
France has suffered one of the highest death rates from COVID-19 in Europe, with over 37,000 fatalities, compared with the United Kingdom, where deaths now exceed 46,000. The country is currently subject to a renewed series of lockdown measures as the government grapples with an unwelcome surge in infections, right as the winter flu season is approaching.
“In an economic context featuring different dynamics across regions and sectors, BNP Paribas demonstrates its high resilience thanks to its financial solidity, its diversification, and the power of execution of its platform,” chief executive Jean-Laurent Bonnafe said in a statement.
Here are the key numbers:
- Pre-tax profit: 2.671 billion euros ($3.12 billion), down 4.8% from 2019.
- Net income: 1.894 billion euros ($2.21 billion), down 2.3% versus Q3 2019.
- Total revenue: 10.885 billion euros ($12.74 billion), down 0.1% year-on-year.
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