(AOF) – The first French bank to publish its first quarter accounts, Bnp Paribas presented a better performance than expected. On the stock market, the French bank’s shares gained 0.65% to 68.17 euros in a Parisian market in sharp decline. BNP Paribas benefited from lower than expected costs and the good performance of its Global Banking activities (merger and acquisition consulting, primary market activities, etc.), analysts report.
Good news on costs
Its net profit, group share, fell by 2.2% to 3.1 billion euros, down 2.2%, but it exceeded the consensus amounting to 2.4 billion euros. At 640 million euros (592 million in the first quarter of 2023 on a distributable basis), the cost of risk stood at 29 basis points of outstanding customer credit.
Management fees fell by 1.5% to 7.94, whereas they were anticipated at 8.15 billion euros by analysts. “The effects of additional operational efficiency measures (400 million euros) are expected from the second quarter of 2024,” said the banking establishment.
Net banking income fell by 0.4% to 12.483 billion euros. Analysts underline the good performance of Global Banking activities, whose revenues increased by 6.1% to 1.54 billion. Revenues are up very sharply within the Capital Markets platform, particularly in the Americas (+29.8%) and Europe Middle East Africa (+18.9%) zones.
On the other hand, revenues linked to market activities fell by 11.9% to 2.435 billion euros due to the 20.4% decline in FICC brokerage (bonds, foreign exchange, and commodities). BNP Paribas speaks of a “normalization” of activity on this market. Equity brokerage increased by 11%.
The net banking income of commercial banks increased by 1% to 4.2 billion euros. It was supported by the increase in interest income (+4.9%) excluding the negative impacts of the non-remuneration of compulsory reserves by the ECB, inflation hedges and Belgian State bonds and the good performance of commissions (+4.4%).
BNP Paribas on the right trajectory
The CET1 solvency ratio stood at 13.1%, down 0.1 points over the quarter.
The group finalized its share buyback program of 1.05 billion euros on April 23, 2024 and the board of directors will propose to the general meeting of shareholders on May 14, 2024 to pay a dividend of 4.60 euros .
Building on its results for the first quarter of 2024, BNP Paribas confirmed its 2024 trajectory: revenues growing by more than 2% compared to 2023 distributable revenues (46.9 billion), positive jaws effect, cost of risk less than 40 points base and net profit higher than the 2023 distributable net profit (11.2 billion).
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