EUROPE - BNP Paribas today announced its second-quarter results, which saw the company’s net profits drop by almost 8% compared with the previous quarter.
However, compared with the same time last year, the company saw its profit margin increase by almost a third, to €2.1bn.
Overall the company, which merged with Belgium’s Fortis recently, posted €11.1bn in revenues, an almost 12% increase.
Baudouin Prot, chief executive, said BNP Paribas had confirmed, despite an unfavourable market, the effectiveness of its “diversified, integrated and client-centric business model”.
BNP’s investment solutions group also saw a year-on-year increase in revenues to €1.5bn, up by 15.7%.
The company’s assets under management rose sharply by 11% year on year, reaching €847bn.
BNP went on to note that an “adverse market environment” saw €8.9bn in asset outflows and overall net outflows of €4.4bn.
The company’s corporate and investment banking division fared worst, down 30% year-on-year and 28% compared with the previous quarter.
However, BNP said the results highlighted the strength of its model.
It said this model, combined with a sound balance sheet and quality assets, helped the company to pass the stress tests, maintaining a buffer of more than €20 billion in equity compared with the minimum deemed necessary by supervisors.
The company’s shares are currently trading up by 5.5%.
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