BNP Paribas net profit soars in 2nd quarter

PARIS: BNP Paribas SA said Monday its net profit soared 31 percent in the second quarter as steep retail banking gains in France and the Benelux region offset declines in its investment banking operations.

The euro-zone's largest banking group by deposits said in a statement its net profit for the three months to June was euro2.1 billion (US$2.7 billion), up from euro1.6 billion a year earlier.

The Paris-based bank, which owns San Francisco's BancWest Corp., said the performance ``demonstrated the robustness of its diversified, integrated and customer-driven banking model.''

BNP Paribas' retail banking division's profits swelled as deposits and loans edged higher in the bank's core French and Benelux regions while its cost of risk dropped significantly from the year earlier period.

The division reported pre-tax profit of euro1.23 billion, more than double the euro571 million made a year earlier, while revenue rose 17 percent to euro5.9 billion.

Retail banking offset a weaker performance in the bank's corporate and investment banking division. This unit, the bank's largest in terms of profitability, saw revenue slump 30 percent to euro2.7 billion in the quarter. Capital markets, fixed income and equities and advisory operations all saw their revenue decline during the spring quarter, when the euro-zone financial markets were buffeted by the crisis brought on by Greece's near debt default and eventual bailout.