BNP Paribas, the French bank, announced its lower reported second-quarter earnings on Thursday and revealed its plans to initiate a share buyback program starting next month.
Decline in Earnings
For the reported quarterly net profit, BNP Paribas recorded 2.81 billion euros ($3.12 billion), indicating a decrease compared to the profit of EUR3.09 billion achieved in the same period last year. The bank restated the earnings from the previous year in May after the sale of Bank of the West.
Revenue Drop
BNP Paribas reported that its revenue saw a decline of 1.5%, amounting to EUR11.36 billion for the quarter.
Analyst Expectations
According to analysts polled by FactSet, the anticipated figures for the quarter were EUR11.2 billion in revenue and EUR2.42 billion in net profit. BNP Paribas slightly surpassed these expectations.
Factors Affecting Quarterly Result
The bank attributed EUR786 million of pretax exceptional and extraordinary items to its quarterly result. These items included provisions for litigation, restructuring costs, and adjustments related to changes enacted by the European Central Bank regarding targeted longer-term refinancing operations.
Excluding Exceptional Items
After excluding the exceptional items mentioned above, BNP Paribas reported an 11% increase in quarterly net profit, amounting to EUR3.53 billion. Moreover, the bank’s revenue saw a 3.3% rise, reaching EUR11.92 billion.