BNP Paribas on Friday reported net income of 2.3 billion euros ($2.74 billion) for the second quarter of the year, representing a 6.8% drop from a year ago.
However, the results beat expectations as analysts had forecast 1.48 billion euros in net income, according to data collected by Refinitiv.
CEO Jean-Laurent Bonnafé said in statement: “Our diversified banking model has proven its effectiveness in supporting clients and the economy in front of an unprecedented health crisis.”
At the end of the first quarter, the bank had set aside 502 million euros for potential loan losses as a result of the ongoing pandemic. And it has now added another 329 million euros to that total.
Here are other metrics from the Q2 results:
- Revenues were up by 4% from a year ago at 11.7 billion euros.
- Operating expenses fell over the same period by 1.3% at 7.3 billion.
- The CET 1 ratio rose to 12.4%, from 11.9% last year.
The bank said that despite the low interest rate environment, volumes rose which supported its domestic markets business. The corporate and institutional banking arm (CIB) also registered strong activity in “all client segments.”
“CIB raised over 160 billion euros in the second quarter on the global syndicated loan, bond and equity markets (+91% compared to the second quarter 2019) on behalf of its clients,” BNP said in a statement.
Speaking to CNBC, the bank’s chief financial officer, Lars Machenil, said: “Even if the volumes might be tapering off in the rest of the year, the market share that we stepped up, that is there to stay.”
Going forward, Machenil reiterated the expectation of a decrease in the bank’s bottom line between 15% and 20% by the end of the year, compared to 2019, on the back of the ongoing economic crisis.