BNP Paribas profit tops estimates on lower costs and global banking

BNP Paribas reported a fall in first-quarter profit and revenue on Thursday but beat analyst forecasts, as lower expenses and a strong performance in its corporate banking business offset flat or falling revenues elsewhere. The euro zone’s biggest bank said group net income over the first three months of the year declined by 2.2 percent from a year earlier to 3.10 billion euros ($3.31 billion), beating the 2.4 billion-euro average of 19 analyst estimates compiled by the company.

Revenues over the period came in at 12.5 billion euros, down 0.4 percent but also above the average analyst estimate of 12.2 billion euros. The cost of risk - money set aside for underperforming loans - stood at 640 million, below the 819 million euros expected by analysts.

The French lender, which disappointed investors in February by delaying a key profitability target, struck an upbeat tone for 2024, reiterating its goal to generate full-year earnings of more than 11.2 billion euros.

It also gave a new target for group revenues, saying it expected them to exceed its 2023 distributable sales of 46.9 billion euros by more than 2 percent, and that the effects of cost cutting flagged previously would begin from the second quarter.

However, revenue was flat or falling in most of the bank’s businesses.