Bank BNP Paribas posted a record net profit of €4.4bn in the first quarter, boosted by the sale of its US subsidiary Bank of the West.
This was almost 2.5 times the figure posted by the parent company of BNP Paribas Fortis in the corresponding period of 2022.
The group is thus on track to set a new record this year after its €10.2 billion in profits in 2022,whereas the banking sector has experienced turbulence in recent months.
BNP Paribas also made no mention in its statement released on Wednesday of the failed US banks or UBS’s purchase of Credit Suisse. On the contrary, it highlights its “solidity,” as CEO Jean-Laurent Bonnafé put it, quoted in the text.
The sale of Bank of the West, acquired by BNP Paribas in 1979 and sold for $16.3 billion in early February, enabled the group to record a capital gain of nearly €3 billion.
The group’s net banking income, the equivalent of turnover for the sector, rose by 1.4% compared with the first quarter of 2022, “recomposed” by taking into account the new international accounting standards for the insurance sector, in force since 1 January 2023. It stands at more than €12 billion.
All of the bank’s core businesses saw increases in revenue: the part dedicated to companies and large institutions grew by 4%, to €4.9 billion, while commercial banks and specialised business lines saw their activity rise by 5.9% to 6.7 billion euros.
Investment and savings business lines, meanwhile, saw their revenue rise only very slightly (+0.6%, to €1.4 billion).
BNP Paribas, however, had to bear the “extraordinary impact” of the European Central Bank’s tightening of the terms of the former jumbo loans to banks, estimated at around €400 million.
“Global adaptation costs” in the consumer credit business also weighed on BNP Paribas’ accounts – to the tune of €236m – as it seeks to cut more than 900 jobs in this sector and refocus on Europe.
