BNP Paribas reports $2.76bn net income for second quarter

2 August 2010

BNP Paribas has reported net income of €2.11 billion ($2.76 billion) for its work in the second quarter of 2010.

It means France's largest bank saw a profit rise of 31 per cent, with its bad loan provisions now at their lowest level since the collapse of Lehman Brothers at the height of the financial crisis in 2008.

The cost of risk to the company was down 53.9 per cent on the level recorded in the second quarter of 2009.

While corporate and investment banking earnings fell, this was nullified by profit rises from increased revenue at BNP Paribas' branch networks in the US, France and Belgium.

Simon Maughan, an analyst at MF Global Securities, told Bloomberg: "It wasn't a great quarter for investment banking, but the other businesses are improving.

"Their diversified model shows its strength."

Earlier this year, BNP Paribas revealed that it had an exposure of around €5 billion to the economically-troubled country of Greece, reported the Guardian.

By Asim Shah

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