BNP Paribas boosts profits with Italian takeover

9th May 2007, Comments 0 comments

PARIS, May 9, 2007 (AFP) - French bank BNP Paribas reported a 24.5-percent surge in first-quarter profit on Wednesday, with a boost from a takeover in Italy and from unexpectedly strong retail operations in France.

PARIS, May 9, 2007 (AFP) - French bank BNP Paribas reported a 24.5-percent surge in first-quarter profit on Wednesday, with a boost from a takeover in Italy and from unexpectedly strong retail operations in France.

Net profit in the first quarter amounted to 2,507 billion euros (3.4 billion dollars), strengthened by results from Italian bank BNL.

Net banking income rose by 20.5 percent to 8.2 billion euros.

The figures were sharply higher than the range forecast by analysts surveyed by Thomson IBES. They had put net profit at 2.0 billion euros and net banking income at 7.6 billion euros.

The price of shares in BNP Paribas was showing a gain of 1.91 percent to 89.17 euros in early trading.

BNP Paribas completed the integration of BNL in the second quarter of 2006.

In the first quarter of this year BNP achieved sales of 638 million euros, a 7.8-percent increase on a 12-month basis. But pre-tax profit shot up by 49.0 percent to 143 million euros.

BNP Paribas managing director Baudouin Prot said: "The success of the integration of BNL has been demonstrated in a rapid and incontrovertible way."

Overall activity by retail banking operations in France rose by 4.1 percent to 1.499 billion euros, excluding the effect of the recovery of provisions for potential problems.

Prot said that analysts had not expected these operations to achieve growth of 4.0 percent.


Copyright AFP

Subject: French news

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