French lender BNP Paribas (BNP.L,BNPQY.PK) Friday reported a 44.8% fall in first-quarter profit, as revenues from operating divisions dropped about 6 percent, with a fall in Corporate and Investment banking revenues amid a lacklustre economic environment in Europe. Adding to this was absence of a one-time gain the company had recorded last year.
The Group also said it is set to launch BNP Paribas' European digital bank, a pure mobile and online banking player, as part of its 2014-2016 business development plan.
According to the company, domestic markets' business activity resulted in a 6.1 percent growth in deposits compared to the previous year, with continued growth trend in all the networks.
In the first quarter, net income attributable to equity holders fell to 1.58 billion euros from 2.87 billion euros in the previous year. Pre-tax income was 2.62 billion euros, down from 3.94 billion euros in the prior year.
The recent-quarter results included a positive impact of two exceptional items totaling 149 million euros, a negative 215 million euros in own credit adjustment and a positive 364 million euros as a result of first-time adoption of Debit Value Adjustment under IFRS 13.
The company said its prior-year quarter had a positive impact on net income totaling 829 million euros, due to exceptional items.
Operating income climbed 22.3 percent to 2.56 billion euros.
Revenues for the quarter grew 1.7 percent to 10.06 billion euros. Operating expenses improved 4.8 percent to 6.51 billion euros, showing a very good cost control, the company said.
Revenues from the operating divisions dropped 5.9 percent from a year ago, while operating expenses of the divisions were lower 6.4 percent from the prior year.
Retail Banking division revenues improved 0.2 percent and Investment Solutions revenues were up 3.4 percent from last year. The company noted that the first quarter was a transition for Corporate and Investment banking, or CIB, after the end of the adaptation plan, and revenues fell 20.2 percent from a year earlier.
Common equity Tier 1 ratio was 11.7 percent.
Chief Executive Officer Jean-Laurent Bonnafé stated, "In a lacklustre economic environment in Europe, BNP Paribas Group generated 1.6 billion euros in net income this quarter, thanks in particular to good control of costs and risks."
In Paris, the shares are currently trading at 43.74 euros, up 2.02 percent.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.