[ad_1]
Major French bank BNP Paribas will earn significantly less due to the 2020 crown pandemic.
Major French bank BNP Paribas is preparing for a drop in earnings this year due to the coronavirus pandemic. Compared to the 8.2 billion euros the year before, the 2020 surplus could fall by 15-20% due to the economic consequences of the Corona crisis, the bank said in Paris on Tuesday. The drop was more pronounced in the first three months: due to the increase in provisions for possible defaults, the profit fell by a third compared to the same period of the previous year to 1.3 billion euros.
The news was well received in the financial market.
The reason for the price increases on Tuesday: The top of the bank around BNP chief Jean-Laurent Bonnafé shows with his 2020 earnings forecast significantly more optimistic than industry experts. Analysts at Bloomberg news agency recently assumed that BNP’s profits would drop more than 40 percent to less than five billion euros.
In the first quarter, the bank spent around € 500 million on possible loan defaults. That is an amount similar to that of Deutsche Bank. The bank had to face the corona crisis in the market and the even more expensive commercial business. The dividend freeze imposed by many regulators and the redemptions of securities after the fall in prices in the markets cost BNP Paribas a total of 568 million euros in the first quarter. This more than devoured the increase in commercial profits as a result of market turmoil.
Overall, the bank’s earnings in the first quarter fell 2.3 percent on-year to 10.9 billion euros. Without the one-time effects of a dividend freeze and depreciation, they would have risen 2.8 percent.
BNP’s national rival, Société Générale, even fell into the red in the first quarter due to the consequences of the coronavirus pandemic. Unlike many other banks, BNP and Societe Generale could hardly benefit from the dynamic market trading.
BNP’s stake in Euronext in Paris gained 4.06 percent on Tuesday at € 28.21.
/ zb / jha /
PARIS (dpa-AFX)
[ad_2]
