French lender BNP Paribas (BNPQY.PK, BNP.L) Thursday reported a loss for the second quarter, hit by hefty charges related to a settlement with the U.S. However, underlying earnings improved from the prior year.
Net loss attributable to equity holders came in at 4.317 billion euros ($5.78 billion), compared with net income of 1.765 billion euros in the second quarter 2013.
On June 30, BNP had agreed to plead guilty and pay $8.9 billion to U.S. federal and state authorities for conspiring with other entities to deliberately and repeatedly violate longstanding U.S. sanctions against Sudan, Cuba, and Iran. BNP said today that considering the amount already provisioned, it booked this quarter a one-off charge for 5.950 billion euros.
Excluding the impact of the one-off items, net income attributable to equity holders totaled 1.924 billion euros, up 23.2 percent compared to the same period last year.
Revenues slid 2.3 percent to 9.568 billion euros from 9.789 billion euros, and included two exceptional items for negative 353 million euros.
Revenues from the operating divisions increased 4 percent at constant scope and exchange rates, excluding exceptional items.
In Retail Banking, Domestic Markets reported overall good performance with 3.8 percent growth in deposits, amid strong performance in France, Belgium and Cortal Consors in Germany.
In Investment Solutions, Assets under management grew 5.2 percent to 883 billion euros.
Corporate and Investment Banking revenues climbed 14.6 percent to 2.398 billion euros, at constant scope and exchange rates, excluding the impact of the introduction of Funding Valuation Adjustment or FVA.
Excluding the impact of the introduction of FVA, revenues from Advisory and Capital Markets increased 22.4 percent to 1.539 billion euros, in a more upbeat situation in Europe as a result of the European Central Bank's announcements.
The stock was up 0.4 percent in early morning trade at 50.06 euros.
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