Opposite trend for Bnp Paribas and its Italian subsidiary Bnl in the first quarter of 2018. If the Parisian giant records a 17% drop in net profit from January to March, the bank led by Andrea Munari even manages to triple the profit before taxes, reaching 51 million euros.
Going into details, BNP Paribas, in the first quarter of 2018 it achieved a Net income of 1,57 billion euros, down by 17,3% compared to the previous year. The result slightly exceeded analysts' expectations, amounting to 1,55 billion euros. According to the bank's statement, the joint effect of extraordinary expenses, a weak dollar and a negative performance in fixed-income trading, which weighed down investment banking turnover, was behind the decline.
Down too i Net revenues, down to 10,79 billion euro (-4,4% compared to the previous year). The Cet1 as at 31 March it stood at 11,6 per cent, while the immediately available liquidity reserves amounted to 321 billion euro.
“Although the market context has been lackluster in Europe compared to the first quarter of 2017”, commented the CEO, Jean Laurent Bonnafe, “the results are in line with the trajectory of the plan to 2020 and with the achievement of the objectives”. Despite the CEO's reassurances, the stock is currently down 2,5% on the Paris Stock Exchange.
However, Bnp can console itself with the results of Bnl. The Italian subsidiary seems to have started 2018 in the right gear, confirming ""the progressive improvement of its profitability" and generating "a pre-tax profit equal to 51 million euros, almost three times the level compared to the first quarter of 2017 (18 million euros)," reads the note released by Bnp Paribas.
Also growing are the deposits, which recorded a +7% with a significant increase in current accounts. Up there collection indirectly in life insurance (+7,1% y/y) and investment funds (+8,4%). Speaking of loans, despite a drop of 1,3% compared to the previous year, loans were almost stable net of the impact of the sale in the quarter of a portfolio of non-performing loans, equal to 0,8 billion. Down 2% to 713 million the intermediation margin, -6,6% for the interest margin +5,9% for commissions.
As for the operating costs, equal to 480 million euros, grew by 2,4% due to the development of specific commercial initiatives, and the cost of risk decreased by 59 million euros and is equal to 87 basis points in relation to loans to customers.
