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BNP Paribas reported a slight decline in third-quarter earnings

BNP Paribas

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The largest French bank BNP Paribas reported a slight decline in third-quarter earnings due to a weak performance of its corporate investment banking and retail banking in Europe. The revenue fell by 0.4% to 10.35 billion EUR, which is below analysts’ forecast of 10.61 billion EUR. However, the growth of the division of international financial services has contributed to a 4% growth in net profits of 2.12 billion EUR.

BNP Paribas’s operating costs increased by 2% over the quarter due to technological innovations to 7.2 billion EUR.

“The savings that will be generated next year, however, should bring us back to positive territory”, said the Chief Financial Officer of BNP Paribas, Lars Machenil.

The big European banks such as BNP Paribas and HSBC, which has surprisingly high profits on Monday, are trying to find new sources of profit while spending hard to keep pace with rapidly changing technologies and consumer habits.

The revenue from retail banking in France, Belgium and Italy remains weak as a result of persistently low interest rates. At the same time, the revenues from its corporate and investment banking have shrunk again due to the unfavorable trading environment.

The international financial services division, which has been the engine of growth in recent quarters and includes consumer lending, as well as retail banks in the United States and emerging markets, has again performed better than other departments in the third quarter. However, the results of the BNP Paribas’s unit reported a third-quarter slowdown compared to the previous one mainly due to the depreciation of the Turkish lira.