BNP Paribas Reports Better-Than-Expected 1st-Quarter Net Profit -- Update

By Noemie BisserbeFeaturesDow Jones Newswires

French bank BNP Paribas SA (BNP.FR) reported a better-than-expected net profit for the first quarter, aided by a rebound in bond trading.

The Paris-based lender, France's largest listed bank by assets, said Wednesday net profit rose 4% to 1.89 billion euros ($2.06 billion) from EUR1.81 billion a year earlier. That beat analysts' expectations for a profit of EUR1.54 billion, according to a poll by data provider FactSet.

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Revenue rose 4% to EUR11.3 billion.

Like other U.S. and European lenders, BNP Paribas benefited from a bond-trading boom, despite the Trump administration's failure so far to deliver on promises to overhaul the tax code and loosen financial regulations.

BNP Paribas's corporate and investment-bank pretax income nearly doubled in the latest quarter to EUR778 million, bolstered by its fixed-income platform.

The bank's international financial-services division, which includes retail banks outside the eurozone, wealth management, consumer finance and insurance, posted a 16% jump in pretax income to EUR1.22 billion.

However, pretax profit for BNP's retail banks in France, Italy, Belgium and Luxembourg fell 0.5% to EUR705 million, hurt by persistently low interest rates.

The bank's core Tier 1 ratio, which measures its top quality capital such as equity and retained earnings against risk-weighted assets, rose to 11.6% in March from 11.5% in December, mainly because of the sale of its stake in First Hawaiian Bank.

BNP Paribas is the first major French bank to report first-quarter earnings. Societe Generale SA (GLE.FR) is set to report results Thursday and Credit Agricole SA (ACA.FR) will report on May 11.

Write to Noemie Bisserbe at

(END) Dow Jones Newswires

May 03, 2017 01:36 ET (05:36 GMT)