Paris, Feb 06: France's biggest bank BNP Paribas has posted a 20% drop in fourth quarter profit , as weak stock markets hurt trading and investment results, and sounded a note of caution about '03. BNP said it has earned 696m euros ($756 m) in the fourth quarter compared with 866 m euros in the year-ago quarter.
BNP’s gross operating profit fell 9.4% to 1.4 bn euros, while net banking income, or revenues, edged down 4.5% to 4.2 bn euros in the quarter. All the figures were in line or slightly better than consensus estimates. Still, BNP said it remained cautious given the uncertain economic backdrop.
A prolonged stock market slump has battered trading, investment banking and corporate lending businesses at the world’s biggest banks, despite solid results from consumer lending operations.
“The geopolitical, economic and financial troubles in ‘02 seem set to carry over into ‘03,” said BNP chairman Michel Pebereau in a statement.
French banks have performed better than many of their continental European peers, leaning on their profitable domestic retail operations to see them through the market downturn. Bureau Report