BNP Paribas reports over 30 percent rise in net profit in second quarter

BNP Paribas, French largest bank by market value, announced on Wednesday a rise of 30.6 percent in its second-quarter net profit to 1.9 billion euros (2.4 billion dollars) from 1.45 billion euros (1.86 billion dollars) for the same period last year.

This increase was however 5.6 percent lower than the figure for the first quarter and its net banking income surged by 40.1 percent in the second quarter to 7.24 billion euros (9.27 billion dollars), according to the figures in a statement released by the bank on its website.

The statement also said that acquisition of Italian group BNL had strengthened retail operations, by contributing pre-tax profit of 214 million euros (about 273.9 million dollars) on income of 757 million euros (969 million dollars) and costs of 470 million euros (601.6 million dollars).

BNP's shares jumped by 4.20 percent to 78.20 euros in afternoon trading on the Paris stock exchange.

The bank also said that the cost to restructure BNL would be 450 million euros, and that cost savings would amount to 250 million euros, but said the benefits for income, still being evaluated, would exceed the estimated figure of 150 million euros.

The statement quoted the bank's CEO, Baudouin Prot, as saying that the BNP "is building a powerful and balanced platform firmly based on retail banking" and was "well positioned to make the most of developments on its markets."

Source: Xinhua