BNP Paribas income drops to 2.3b euros

BNP Paribas on Friday reported net income of 2.3 billion euros  for the second quarter of the year, representing a 6.8 percent drop from a year ago, CNBC reports.

However, the results beat expectations as analysts had forecast 1.48 billion euros in net income, according to data collected by Refinitiv. 

CEO Jean-Laurent Bonnafé said in statement: “Our diversified banking model has proven its effectiveness in supporting clients and the economy in front of an unprecedented health crisis.”

At the end of the first quarter, the bank had set aside 502 million euros for potential loan losses as a result of the ongoing pandemic. And it has now added another 329 million euros to that total.

Here are other metrics from the Q2 results:

Revenues were up by 4 percent from a year ago at 11.7 billion euros.

Operating expenses fell over the same period by 1.3 percent at 7.3 billion.

The CET 1 ratio climbed to 12.4 percent, from 11.9 percent last year.

The bank said that despite the low interest rate environment, volumes rose which supported its domestic markets business. The corporate and institutional banking arm (CIB) also registered strong activity in “all client segments.”

“CIB raised over 160 billion euros in the second quarter on the global syndicated loan, bond and equity markets (up by 91 percent compared to the second quarter 2019) on behalf of its clients,” BNP said in a statement.