BNP Paribas quarterly profit up despite "more challenging context"

BNP Paribas SA on Tuesday reported a rise in third quarter earnings, despite tariff uncertainty and a "wait-and-see attitude" among some clients.

The lender also hit out a recent legal verdict in Sudan, believing it should be overturned.

BNP Paribas said attributable net income in the third quarter of the year increased by 6.1% to EUR3.04 billion from EUR2.87 billion a year prior. Revenue rose 5.3% to EUR12.57 billion from EUR11.94 billion.

"The group achieved good operating performance in all three of its divisions in the third quarter and displays a very solid financial structure," Chief Executive Officer Jean-Laurent Bonnafe said.

The results were in line with the bank's aim of achieving net income of over EUR12.2 billion this year, it said.

At the start of the third quarter, BNP Paribas completed the EUR5.1 billion acquisition of AXA Investment Managers from AXA SA.

"The third quarter was highlighted by the integration of AXA IM, providing the group with a lever of strategic transformation and enabling us to become a leader in asset management," CEO Bonnafe said.

In the Corporate & Institutional Banking unit, revenue rose 4.5% on-year in the third quarter. Within that unit, Global Banking, which provides advisory, financing and transaction banking services, suffered a 2.6% decline in revenue. The result there was "resilient in a more challenging context than last year's", BNP Paribas said.

Global Banking was hurt by tariff worries, geopolitical uncertainty and a "wait-and-see attitude of corporate clients". The company also noted dollar depreciation versus the euro.

In the Commercial, Personal Banking & Services unit, revenue rose 3.1% on-year in the third quarter, with the Commercial & Personal Banking arm leading the way with 5.6% growth.

Investment & Protection Services revenue surged 28%, boosted by AXA IM and "organic growth at Insurance and Wealth Management".

Earlier in October, a US court verdict deemed BNP liable for atrocities committed in Sudan.

A New York jury on Friday found the bank helped prop up the regime of former Sudanese ruler Omar al-Bashir, opening the way to compensation demands.

The eight-member jury sided with three plaintiffs originally from Sudan, awarding a total of USD20.75 million in damages, after hearing testimony describing horrors committed by Sudanese soldiers and the Janjaweed militia.

Shortly after the verdict, BNP said it "very clearly stated its unwavering intention to appeal".

It affirmed Tuesday that the "jury verdict awarding damages to three individual plaintiffs is fundamentally flawed as a matter of fact and law and should be overturned".

"The jury's award of damages was specific to the three individual plaintiffs, whose legal claims were based on the prejudices they personally suffered. The trial court has indicated that it will continue to try the claims of other plaintiffs on an individual basis. Separate and apart from the factual and legal failings discussed above, any assertion that liability or damages have been established for the class is plainly wrong.

"BNP Paribas is confident in its legal arguments and that the verdict will be overturned on appeal. The bank is committed to pursuing that result," it said.