BNP Paribas beat Q3 forecasts on the back of record equity trading, and launched a €1.3B buyback. Net income was €3.46B, against the analysts’ consensus of €3.23B. Revenue rose 9.5% to €13.76B. Corporate and institutional banking revenue climbed 16.6% to €5.2B, with equity and prime services up a record 50%. Fixed-income trading was flat. The cost-income ratio improved by 2.3 points to 58.3%. The buyback starts on 2 Nov, after ECB approval. BNP holds about €19B of French sovereign bonds, all but €3B of them to maturity, and wider French borrowing costs cut its core capital ratio by just 2 basis points.
BNP Paribas beat Q3 forecasts on the back of record equity trading, and launched a €1.3B buyback.
Net income was €3.46B, against the analysts’ consensus of €3.23B. Revenue rose 9.5% to €13.76B.
Corporate and institutional banking revenue climbed 16.6% to €5.2B, with equity and prime services up a record 50%. Fixed-income trading was flat.
The cost-income ratio improved by 2.3 points to 58.3%. The buyback starts on 2 Nov, after ECB approval. BNP holds about €19B of French sovereign bonds, all but €3B of them to maturity, and wider French borrowing costs cut its core capital ratio by just 2 basis points.
Efficiency also improved, with the cost-income ratio falling to 58.3%.
Riding that strength, BNP will start a €1.3 billion share buyback on 2 November. It also sought to calm nerves over France’s public finances. Of its roughly €19 billion in French government bonds, all but €3 billion are held to maturity, and rising French yields shaved just 2 basis points off its core capital ratio.