BNP Paribas Posts Earnings Beat, Backs Guidance

By Elena Vardon

BNP Paribas backed its guidance for the year after posting better-than-expected earnings for the second quarter on a good performance across its business lines.

The French lender on Wednesday said that its net profit for the three months ended June 30 edged up to 3.395 billion euros ($3.69 billion) from EUR3.34 billion a year prior. Analysts' estimates taken from a company-compiled consensus had the figure at EUR2.91 billion.

Revenue grew 3.9% on year to EUR12.27 billion, beating expectations of EUR11.93 billion, it said.

Its corporate and institutional banking division--which it is betting on to gain market share and drive growth--posted a revenue rise of 12% after its global markets and its capital markets units posted double-digit growth.

For its retail banking activities, the Paris-based group reported stable revenue and said it expects headwinds from Belgian government bonds and European Central Bank mandatory reserves to start to fade in the second half of the year.

"BNP Paribas is well placed in the new phase of the economic cycle and accordingly confirms its 2024 trajectory," Chief Executive Jean-Laurent Bonnafe said.

The Paris-based group targets revenue growth of 2% higher on 2023's distributable revenues of EUR46.9 billion and forecasts that net income will top its previous year's EUR11.2 billion result.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

July 24, 2024 01:22 ET (05:22 GMT)

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