 "BNP Paribas posts higher Q3 profits, helped by asset sale and cost cuts")
BNP Paribas reported an 8 percent rise in quarterly net profit, as an asset sale and cost cuts helped compensate for a goodwill impairment in Turkey and weakness in its markets-related unit.
The French bank was no exception to major declines in bond trading revenue that hit its rivals due to reduced client activity and low market volatility compared to a year ago when Brexit and the US election led to market turbulence.
"BNP Paribas reported in the third quarter good business development in an improved economic environment in Europe," the bank said in a statement.
"However, the market context this quarter was unfavourable for the market activities".
Overall, revenues fell 1.8 percent to 10.39 billion euros ($12.1 billion) over the quarter, below the 10.6 billion euros expected by analysts. Revenues were weighed down by adverse foreign exchange movements.
Fixed income trading fell 26 percent, worse than US rivals which on average saw a 22 percent fall in FICC (fixed income, currencies and commodities) operations, but better than a slump of more than 30 percent in that area at European peers such as UBS, Deutsche Bank and Barclays.
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Third quarter net income stood at 2.04 billion euros, above the 1.9 billion euros expected by analysts, boosted by a sale of a stake in Indian insurance company SBI Life.
The accounting gain also helped offset a 172 million euros goodwill impairment on its TEB Bank in Turkey where the Turkish lira depreciated by 20 percent versus the euro year-on-year.