BNP Paribas enjoys 46% profits rise

4 November 2010

BNP Paribas has reported net profits of €1.9 billion (£1.7 billion) for the third quarter, up 46 per cent on last year.

Like its rival Societe Generale on Wednesday (November 3rd), the French bank exceeded analysts' expectations with its latest trading update.

BNP, which is France's largest bank by market capitalisation, saw revenue increase by 1.8 per cent to €10.86 billion during the quarter.

Meanwhile, the amount of money set aside for bad loans declined by 47 per cent to €1.22 billion.

Speaking to Reuters, chief executive Baudouin Prot said the Paris-based lender will not require an increase in capital to meet the new industry requirements under Basel III.

"[There will be] no capital increase whatsoever ... I'm very confident on the capital position," he told the news agency.

BNP is the third biggest bank in Europe by market value after HSBC and Santander.

Societe Generale reported net income of €896 million for the third quarter this week, up from €426 million a year earlier.

By Claire Archer

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