BNP Paribas SA (BNPQY) led stocks in Paris lower Tuesday after it posted a rise in fourth quarter profit but missed analysts' forecast as low interest rates and a "lacklustre" trading environment held down earnings.
France's biggest bank said net income for the final three months of 2016 came in at €1.44 billion, more than double the €665 million posted in the fourth quarter of 2015, but shy of the €1.5 billion anticipated by analysts Revenues for the final quarter totalled €10.66 billion, the bank said, slightly ahead of analysts' forecast of €10.48 billion.
BNP shares fell 3.7% in early Paris trading to change hands at €57.76 each in Paris by 08:15 GMT, trimming the three month gain to 15%. That gain has lagged both the 19.9% advance for the Stoxx Europe 600 Banks index and the staggering 53% rise for Deutsche Bank AG (DB) over the same period.
"Revenues are up despite a lacklustre environment this year. Costs were well contained and the cost of risk was significantly lower. The Group's balance sheet is rock-solid and the significant increase in the fully loaded Basel 3 common equity Tier 1 ratio to 11.5% testifies the capital generation," said CEO Jean-Laurent Bonnafe.
"After the success of its 2014-2016 plan, which allowed to attain the defined targets, the group now unveils its 2020 business development plan that announces an acceleration of digitalisation and targets an average growth of net income of more than 6.5% per year until 2020," he added.
