BNP Paribas said it already meets more stringent global standards on leverage and doesn’t plan further asset cuts.
Bloomberg News reports that this comes a day after Deutsche Bank and Barclays announced plans to shrink.
'Deleveraging has been done,' Jean-Laurent Bonnafe, BNP Paribas’s chief executive officer, told journalists in Paris Wednesday after reporting second-quarter profit that beat analysts’ estimates. He ruled out a new asset-cutting program. BNP Paribas shares climbed to a two-year high in Paris.
'They appear to have done a pretty good job,' said Julian Chillingworth, who helps manage $30.4 billion at Rathbone Brothers Plc in London and holds BNP shares. 'You would expect the stock price to reflect that.'
Europe’s banks have been cutting risky assets and building up capital to meet tougher rules from regulators seeking to avoid a repeat of the taxpayer-funded rescues of 2008. Global supervisors are paying increasing attention to banks’ equity as a proportion of total assets, known as the leverage ratio, because it excludes risk-weightings that can vary between banks.
To access the full Bloomberg article hit the link below.