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BNP Paribas gets retail bank boost but trading lags

PHILIPPE HUGUEN | AFP | Getty Images

BNP Paribas, the French bank, became the latest big European bank to report profits fell at its investment bank on Friday, as it was boosted overall by profits in its retail division.

Its net profit rose to 1.83 billion euros ($2.01 billion) in the three months to the end of September, up 15 percent from the same time in 2014. However, this reflected a much healthier picture at its retail bank, where increased loan demand helped drive up total pretax profit by 5 percent to 979 million euros.


Lars Machenil, chief financial officer of the French bank, told CNBC: "European growth levels are not the same as we're seeing in our U.S. business, but for the moment, it's a progressive return to growth."

At its investment bank, which has had to restructure following a record $9 billion fine from U.S. authorities over sanctions violations, there was a 22 percent drop in pretax profit to 624 million euros in the third quarter.

The bank said in a statement that it has now finished the downsizing of its energy and commodity business, and also booked additional costs to comply with new regulations.

BNP Paribas also boosted its core tier-one ratio - a key measure of financial health - to 10.7 percent in September, up from 10.6 percent in June.