BNP Paribas confirms financial stability of French banking sector (FR)

Since the beginning of the week there have been all kind of rumors regarding the eurozone and France. Competent authorities made clear that they were unfouded. In particular, Standard and Poors, Moody's and Fitch have successively indicated that rumors regarding a possible downgrade of France 's AAA rating were unfounded.

In the same vein, various rumors have circulated on french banks. On this issue, the governor of the Banque de France has just underlined their "financial stability and their capacity for resistance, as shown since the beginning of the crisis." He said the banks "confirmed their financial solidity" when they announced their financial results for the first half of 2011, and that this was "thanks to rigorous risk management and a universal-banking model based on diversified activities." He also said that the "capital levels, supported by very strong levels of equity, are adequate, and that medium- and long-term financing programmes are being undertaken in conditions that are quite satisfactory."

Regarding BNP Paribas, thanks to its strong and recurrent profit-generating capacity which is based on a diversified economic model and rigorous risk management, solvency ratios have been reinforced with each passing quarter to reach a Common Equity Tier 1 of 9.6% as at 30 June 2011. Its pre-tax profit for the first half was €7.4 billion, as published on 2nd of August, and its after-tax profit was €4.7 billion, and this includes Greek debt provisions following the 21 July agreement. The bank's post-tax ROE for the first half was 13.8%, one of the highest among banks in the western world.

Source: BNP Paribas

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