BNP Paribas Claims to have a Solid Financial Quarter

Daniel L
Category:  Financial News
French commercial lender, BNP Paribas, came out with worse than expected net profit for the fourth quarter of 2017. Profits fell 1.1 percent to €1.43 billion. It missed analyst and market expectations.

Here are the highlights of the fourth quarter results for France’s largest commercial bank. The bank reported full year pretax profit of €11.3 billion. This was up up 0.9 percent from €11.2 billion in 2016. The bank’s operating income came in at €10.3 billion. This was down 4.3 percent from €10.7 billion in 2016. Net profit to the shareholders was €7.76 billion. This up 0.7 percent from 2016.

During the teleconference BNP’s Chief Financial Officer Lars Machenil said that the results were pretty good. "If I look at BNP Paribas 2017 these are solid results, in a positive economic environment in Europe," he said. During the call he also said that “If I look at the bottom line it clocked in at 7.8 billion euros, up 4 percent, and a dividend of 3.02 euro per share." BNP s looking to a good start on its 2020 transformation plan.

BNP’s 2020 business development plan aims to update the bank's operational model. It also aims to improve operating efficiency as well as accelerating digitalization. Machenil said "We believe and we expect that our target of 10 percent target of return on equity (ROE) will be beaten by 2020.”

BNP Paribas said that their Full year pretax profit rose 13.4 percent for their operating divisions unit. This was up 4.7 percent as its domestic markets unit, increased by 18.2 percent. The bank’s international financial services group was up 14.6 percent at the corporate and institutional banking (CIB) division.
Further, BNP reported a 27 percent fall in fixed income and currencies (FIC) trading revenue for the final quarter of 2017.

During the give and take session of the earnings call, Machenil asked if things were going to change, and her responded that it was "a bit too early" to tell. We're there to accompany our clients and we'll have to see if demand picks up, if the market picks up.”
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