BNP Paribas announces third quarter 2004 results (FR)

Third quarter results: net banking income €4,531million (+3.4%), gross operating income €1,705 million (+7.0%), operating income (after cost of risk) €1,589 million (+27.8%), net income Group share €1,101 million (+13.5%),

The Retail Banking businesses continued to enjoy regular growth, in the French banking network as well as in financial services and internationally despite the fall in the dollar.

The Asset Management and Services core business further extended the buoyant growth in its operating income despite lacklustre financial markets.

Corporate and Investment Banking managed almost to maintain its gross operating income in a mediocre environment and derived the full benefit of a declining cost
of risk.

First nine months of 2004 highlights:

  • net income Group Share : €3,716million (+31.1%)
  • annualised ROE after-Tax : 17.7% (+3.6 points).

Operating income up 27.8% compared to the third quarter 2003
In the third quarter 2004, the environment for banking and financial services remained pretty mixed: e.g. the slowdown in economic growth and the drop in the capital market business starting in August weighed in on revenues while there was confirmation of the improved quality of borrowers´ credit, which was already evident since the beginning of the year.

Given this situation, BNP Paribas Group managed to grow its net banking income 3.4% compared to the third quarter 2003, bringing it to 4,531 million euros.

Operating expenses and depreciation remain contained at 2,826 million euros (+1.4%) and gross operating income reached 1,705 million euros, up 7.0% compared to the third quarter 2003.

The cost of risk was 116 million euros, down substantially (-66.9%), such that gross operating income rose 27.8% compared to the third quarter 2003, to 1,589 million euros.

The amount of capital gains realised by the Group in the third quarter 2004 (173 million euros) was largely below their level in the third quarter 2003 (423 million euros). Net income group share was 1,101 million euros (+13.5% compared to the third quarter 2003).

For the first nine months of 2004, the net income group share rose 31.1% to 3.7 billion euros. The after-tax return on equity was 17.7% and the 61.0% cost/income ratio improved 1.9 percentage points compared to the same period last year (62.9%).

Source: BNP Paribas

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