French banking giant BNP Paribas posted its first year-on-year quarterly profit increase for almost two years Wednesday. Net income rose 69% to $1.11bn, helped by a revival in investment banking earnings.
Pre-tax profit at the corporate and investment bank rose to $572m. Revenues from trading rose 26% from the third quarter last year to $881m, but declined 21% when compared to the second quarter. Once again, this is down to the fact that the 'easy money' to be made from bonds is on the decline. Profit before tax from asset management and private banking activities rose 2.5% to $235m.
The bank's results are viewed more positively by analysts than those recently posted by Credit Suisse and Deutsche Bank. BNP Paribas has spent around $3.4bn acquiring businesses in France and the US in the last year or so and more US activity, perhaps on the wealth management side, can by expected in America before too long. The bank's shares have risen around 20% this year so far. Overall, given where we are in the economic cycle, a good performance by the bank in the quarter.