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Bloomberg
BNP Paribas signalled higher revenue and potential share buybacks this year after reporting weaker-than-expected trading results and a slowdown at fixed-income business.
The French bank posted an uneven fourth-quarter performance that saw net income and provisions beat estimates, while overall revenue and trading came in below expectations. While the lender signaled an uncertain outlook as the pandemic continues to lock down large swathes of Europe, it did signal that revenue would trend upwards this year as economies start to rebound in the second half.
Revenue from fixed-income trading rose 22% to 1 billion euros, higher than the average increase of about 10% at the five biggest Wall Street banks but well below analyst forecasts of 1.24 billion euros. Equities revenue of 497 million euros was about 4% lower than a year earlier in a strong quarter and missed estimates of 568 million euros.
BNP joined other European lenders in hinting that the worst of the crisis is probably over in terms of their loan books, after Banco Santander SA and Deutsche Bank AG both set aside less than expected to cover the cost of souring credit.
The French lender said provisions probably will decline to more average levels this year, cushioned by government compensation and stimulus plans intended to keep businesses and individuals afloat.