Accelerated decline in provisions for BNP Paribas in Q2
Posted by adminBNP Paribas publishes a net profit increase of 31.2% for the second quarter, above expectations, thanks to a sharper than expected decline in provisions for bad loans, offsetting lower revenues from its market activities.
The second bank in the euro zone by market capitalization, after Spain's Santander, said in a statement that recorded a net profit of 2.105 billion euros in the quarter ended June 30, with net banking income up 11 , 8% to 11.17 billion.
His provisions for risk of loss on the credit fell by 53.9% to 1.08 billion euros.
The consensus of the writing for Reuters on average expected a net increase of only 8% to 1.7 billion euros and provisions were down 36%.
BNP Paribas also said to be "ahead" on its program of synergies from the integration of the Belgian bank Fortis acquired last year, with 402 million euros of synergies on a target of 900 million.
In corporate finance and investment, the decline in profit before tax is also less than expected at 16.4% in the second quarter against 20% expected by the market.
Elsewhere in Europe, Swiss banks UBS and Credit Suisse have also announced last week the quarterly results above market expectations.
The German group Deutsche Bank's side recorded a drop in supplies.
The European banking sector has benefited in recent days a series of good news.
The results of stress tests that have been submitted 91 banks in the European Union and the announcement by the Basel Committee that it would make its proposed regulations have indeed helped to allay investor concerns about the soundness of sector balance sheets.
Since the beginning of the year, the benchmark Stoxx 600 European banks rose 0.36%. The action of BNP Paribas has cut its losses recently but it is still in decline of 5.7% since 1 January.
Societe Generale, the second French bank by market capitalization, reports earnings on Wednesday.