French bank BNP Paribas posted a stronger than expected 69-per cent rise in third-quarter net profit TOday that compared favourably to results of European rivals, thanks to investment gains and a rebound in financial markets.
But shares in the €-zone's largest bank by market value edged up only slightly as profits were broadly in line with forecasts once one-time capital gains were stripped out.
The Paris-based bank earned €970 million in the third quarter. That compared with €573 million a year earlier, when a stock market downturn forced BNP to make provisions to cover a drop in value in its investment holdings.
Improved stock markets lifted gains on investments for the bank's own accounts and boosted profits from advising companies on securities offerings. Loan loss reserve levels fell despite a €105-million addition to general provisions, and relatively low interest rates bolstered consumer loan demand.