BNP Paribas bolsters defences
BNP Paribas, France's biggest bank, doubled its third-quarter profit thanks to a rebound in debt product sales and lifted its capital levels to a new high as it prepares to weather a deepening European economic slowdown.
The bank said it had completed plans to slim down its balance sheet and lift capital ratios, effectively turning the page on the turbulent summer of 2011 that saw French banks scramble to sell assets after investors dumped their shares.
Banks across Europe are slashing costs and selling assets to cope with tougher regulations aimed at preventing a repeat of the 2008 financial crisis, as well as a deteriorating economy as countries implement austerity drives to cut their debts.
BNP's focus is now on broader cost cuts, with its domestic retail unit seen as ripe for change, BNP's chief executive told Reuters Insider television on Wednesday.
We have a very good, strict risk control and we are also working quite efficiently on the cost base, Jean-Laurent Bonnafe said. Although core markets like France, Belgium and Italy would perform reasonably well in coming quarters, its retail model in France was being adapted, he said.
BNP's third-quarter net profit more than doubled to 1.32 billion euros ($1.7 billion) from 541 million in the same period a year ago. The mean of 10 analyst estimates was 1.18 billion, according to a Reuters poll.
Revenue fell 3.4 percent to 9.7 billion euros. The mean estimate in the poll was 9.3 billion.
Earnings better all across the board ... Beats consensus in every business, said Cheuvreux
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