BNP Paribas gets a boost from equity trading as net profit rises 11%

BNP Paribas gets a boost from equity trading as net profit rises 11% [ad_1]

LONDON — BNP Paribas reported on Friday first-quarter net revenue of 1.8 billion euros ($2.18 billion) — an 11% improve from the earlier quarter.

Analysts had forecast a net revenue of 1.2 billion euros for the quarter, in line with Refinitiv.

The French financial institution reported robust outcomes from its funding banking division, the place revenues had been up nearly 25% from a yr in the past.

Its mentioned its equity and prime companies’ companies had been particularly robust, seeing a “record level” of exercise and a rebound in derivatives trading.

“It’s a quarter where basically all lights are green,” Lars Machenil, CFO of BNP Paribas, informed CNBC’s Charlotte Reed Friday.

“We’ve basically been raising more than 100 billion euros in financing. And this is a level of activity, which is better than what we saw in 2020 — it’s even better than what we saw in 2019. So that is quite good,” Machenil added.

Other highlights for the quarter:

  • Revenues hit 11.8 billion euros versus 10.8 billion on the finish of 2020.
  • Operating bills rose 13.7% from the earlier quarter.
  • CET 1 ratio, a measure of financial institution solvency, stood at 12.8% unchanged from the earlier quarter.

Revenue from mounted revenue, currencies and commodities trading fell, nevertheless, by nearly 16% from a yr in the past

“The fixed income part, when it comes to rates, is a bit lower compared to the high level a year ago, but then the equities are … doing very well. So we see that our CIB (corporate and institutional banking) as a whole, as a diversified approach, is really growing on all cylinders, and growing quarter after the quarter,” Machenil careworn.

Outlook

The French financial institution expects the European economic system to choose up within the coming months and rebound strongly within the third quarter. However, given the robust efficiency of the financial institution within the first three months of the yr, Machenil mentioned the financial restoration might truly be “a tad better than what we anticipated.”

Shares of BNP Paribas are up about 23% year-to-date.

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