BNP Paribas posted better-than-expected earnings and net profit in the first quarter, boosted by a rise in business returns following the drive to build its investment bank.
France’s largest listed lender has set its financial targets for 2025, despite stagnant economic growth in its domestic market and the fall of Russia’s invasion of the eurozone. Its goals include an annual revenue growth of more than 3.5 percent and a 60 percent return on dividends to shareholders.
Revenue rose 11.7 percent to 13.2 billion euros in the first quarter, while net income rose 2.1 billion euros, or 19.2 percent, beating analysts’ estimates.
After a period dominated by the corona virus epidemic the bank benefited from lower risk costs as the rates for bad loans dropped drastically and some rules were linked to the Bank of the West that sold it.
BNP Paribas, like its American competitors, noted that the deal had cooled in the first three months of the year. But the bank’s shares and fixed-income trading earnings rose sharply, with stock trading returns rising nearly 61 percent.
The group has consolidated a prime service business acquired from Deutsche Bank, a division that serves hedge funds, and as part of a broader drive to gain an edge in competitors’ retreat or restructuring, it has fully internalized its Exane equity brokerage. Bank units.
BNP Paribas expanded its lending across the eurozone at the height of the corona virus epidemic and sought to build on this.