BNP’s bad debt buoyancy upends market pessimism

BNP Paribas reported on July 31 a 19% year-on-year drop in pre-tax income for the first half of 2020 to 4.9 billion euros. Revenue rose by 1% to 22.6 billion euros.

The decline was mainly attributable to an increase in the French bank’s cost of risk, which broadly doubled year-on-year to 2.8 billion euros, equivalent to 0.66% of its total lending on an annualised basis. Strong revenue from second-quarter debt trading helped the investment banking division report a 16% year-on-year increase in first-half revenue, offsetting a steep decline in equities. The division’s pre-tax income of 1.8 billion euros was 14% higher than in the same period last year.

BNP said its common equity Tier 1 ratio rose by 40 basis points to 12.4% since the end of March. It reported an annualised return on tangible equity of 8.7% for the half, compared to 11% a year earlier.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Cramer says Trump's election delay suggestion 'sows chaos and chaos is bad for the stock market''It sows chaos, and chaos is bad for the stock market,' Jim Cramer said on 'Squawk on the Street.' He’s dreaming if he thinks he can delay an election. Maybe Donny Jr and Eric needed to increase their portfolio some more? Who gives a fuck about the stock market
Source: CNBC - 🏆 12. / 72 Read more »

Ecuador spat reveals sovereign-debt market cracksInvestors are suing to halt the country’s $17.4 bln restructuring, claiming it’s hoodwinking bondholders. They have a point. Going to court is a long shot, but Ecuador’s tactics will hurt its market-friendly makeover. And it may prompt an overhaul of how countries borrow, too.
Source: Breakingviews - 🏆 470. / 51 Read more »