PARIS (dpa-AFX) - Shares of BNP Paribas (BNPQY.PK, BNP.L) were gaining around 4 percent in the early morning trading after the French lender reported Friday a profit in its second quarter, compared to hefty loss last year, reflecting the absence of prior year's huge U.S. settlement loss. Excluding items, attributable earnings rose from last year. Revenues also climbed with improved performance in all divisions.
Further, the company said it is actively implementing the remediation plan agreed as part of the comprehensive settlement with the U.S. authorities and is continuing to reinforce its internal control and compliance system.
For the second quarter, net income attributable to equity holders was 2.56 billion euros, compared to a loss of 4.22 billion euros in 2014.
Pre-tax income was 3.69 billion euros, compared to loss of 3.45 billion euros a year ago.
The latest results included one-time gains of 283 million euros, while the prior year's results were impacted by charges of 6.50 billion euros including 5.95 billion euros in the costs related to the comprehensive settlement with the U.S. authorities.
Excluding the one-off items, attributable net income attributable was 2.30 billion euros, compared to 2.02 billion euros a year ago, illustrating the very good performance this quarter, the company noted.
Gross operating income went up 24.8 percent to 4 billion euros, while it increased 13.5 percent for the operating divisions.
In the quarter, revenues totaled 11.08 billion euros, a growth of 15.8 percent from 9.57 billion euros last year. Revenues in this quarter included an exceptional impact in Own Credit Adjustment or OCA and own credit risk included in derivatives or DVA.
Revenues of the operating divisions were up 12.2 percent with a 20.7 percent growth at International Financial Services and 15.6 percent increase at Corporate and Institutional Banking as well as continued increase in Domestic Markets. The results also benefited from the positive impact of the acquisitions made in 2014.
The company's cost of risk was up 5.6 percent from last year at 903 million euros, due to the scope effect related to the acquisitions made in 2014. Excluding this effect, cost of risk was down slightly.
As of June 30, the fully loaded Basel 3 common equity Tier 1 ratio stood at 10.6 percent, up 30 basis points compared to March 31. The fully loaded Basel 3 leverage ratio came to 3.7 percent, a growth of 30 basis points from March 31.
In Paris, BNP Paribas shares were gaining 3.54 percent to trade at 59.70 euros.
Copyright RTT News/dpa-AFX