France’s biggest listed lender BNP Paribas posted a better-than-expected third-quarter profit. This is on lower provisions for pandemic-related loan losses. BNP Paribas thrived on the economic rebound. This is to release cash set aside for pandemic losses. BNP Paribas reported a 32.2% rise in net income from a year ago to 2.50 billion euros. This is by beating a mean forecast for 2.23 billion euros.
Revenue was up 4.7% to 11.40 billion euros. This is while the cost of risk, reflecting provisions against bad loans, was down 43.3%. BNP Paribas overtook British bank HSBC last year. This is for becoming Europe’s largest bank by assets. It will launch a 900 million euro share buyback program. In its corporate and investment banking activities, the lender benefited from strong growth in equity trading activity. But revenue was down 28% in fixed income, currencies and commodities trading.
BNP Paribas gave a statement that in a more lackluster context, customer activity was lower on the rates and forex markets. But it remained strong on the commodities markets. In its international financial services activities, revenue fell by 3%. This reflects a weaker contribution from its insurance business. BNP Paribas shares have gained around 33% this year.