BNP Paribas posts record profit of 4.4 billion euros in the first quarter of 2023

2023-05-03 08:30:12

BNP Paribas bank recorded record net profit of 4.4 billion euros in the first quarter of 2023, boosted by the sale of its American subsidiary Bank of the West, i.e. nearly 2.5 times more than in 2022 on the same period, she announced on Wednesday May 3.

The group is thus on track to break a new record this year after the 10.2 billion in profits made in 2022, and while the banking sector has experienced turbulence in recent months. BNP Paribas makes no mention in its press release published Wednesday of the American banks having gone bankrupt or of the takeover of Credit Suisse by UBS. On the contrary, it highlights its “solidity”according to the term used by the general manager Jean-Laurent Bonnafé, quoted in the text.

The sale of Bank of the West, acquired by BNP Paribas in 1979 and sold for 16.3 billion dollars (14.8 billion euros) at the beginning of February, enabled the group to record a capital gain of nearly 3 Billions of Euro’s.

The group’s net banking income, equivalent to turnover for the sector, for its part increased by 1.4% compared to the first quarter of 2022, “composed” taking into account the new international accounting standards for the insurance sector, in force since 1^is January 2023. It stands at more than 12 billion euros.

All of the bank’s business lines experienced an increase in income: the part dedicated to companies and large institutions grew by 4%, to 4.9 billion euros, while commercial banks and specialized businesses saw their activity increase by 5.9% to 6.7 billion euros. The investment and savings businesses saw their income increase only very slightly (+0.6%, to 1.4 billion euros).

BNP Paribas, however, had to bear « l’impact extraordinaire » linked to the tightening by the European Central Bank of the conditions of the old giant loans granted to banks, and estimated at around 400 million euros. Of the “global adaptation costs” consumer credit activity also weighed 236 million euros on the accounts of BNP Paribas, which wants to cut more than 900 jobs in this sector and refocus on Europe.

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The World with AFP