FX.co ★ BNP Paribas Quarter Profit Down 2.3%, Beats Forecast

The bank's net profit in July-September amounted to EUR 1.89 billion. Whereas for the same period last year, this figure was 1.94 billion euros, according to a press release from the organization.

Analysts on average estimated the bank's profit at 1.6 billion euros. Revenue decreased by only 0.1% and amounted to 10.89 billion euros.

Last quarter, BNP Paribas set aside 1.25 billion euros to cover potential problem loans. This is 47% more than in the same period last year. In the second quarter, the bank allocated 1.45 billion euros to reserves for possible loan losses.

BNP Paribas reported revenue growth across all three of its divisions. The most significant growth was recorded in the Corporate & Institutional Banking (CIB) segment, which increased revenue in July-September by 17% compared to the same period a year earlier.

Tier 1 bank capital adequacy was 12.6% at the end of September against 12.4% at the end of June.

BNP Paribas shares rose 5.5% in Paris trading on Tuesday. Since the beginning of the year, the bank's capitalization has dropped by 37.9%.