BNP Paribas profits flat, takes 534 mn euros hit on Greece

2nd August 2011, Comments 0 comments

French banking giant BNP Paribas reported Tuesday a second quarter net profit up 1.1 percent at 2.12 billion euros, short of analyst forecasts as it set aside 534 million euros to cover its Greek exposure.

Analysts polled by Dow Jones Newswires had expected a three months to June net profit of 2.21 billion euros ($3.14 billion).

BNP Paribas said its six months to June net profit was up 8.1 percent from a year earlier to 4.74 billion euros.

It said it held 2.3 billion euros of Greek government debt maturing by 2020.

The recently agreed second bailout for Athens involving private sector creditors estimates they will lose 21 percent on such holdings and the second quarter provision covers this eventuality, it said in a statement.

The bank said total second quarter provisions came to 1.35 billion euros.

In a difficult market, all operating sectors improved their performance compared with last year, it said.

They all contributed to "keeping profits high despite the negative impact" of the Greek debt bailout costs, it added.

© 2011 AFP

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