France's biggest bank, BNP Paribas, posted a narrow increase in net profit on Thursday, as its retail bank struggled in the low interest-rate environment.
Net profit came in at 2.56 billion euros ($2.83 billion) for the second quarter of 2016, up 0.2 percent on the second quarter of 2015. Quarterly revenue was up 2.2 percent.
However, gross operating income in its domestic retail business was down 4.5 percent on the same quarter a year earlier.
"It is true that the low interest rates weigh on our domestic market," Lars Machenil, BNP Paribas's chief financial officer, told CNBC on Thursday after the results were out.
The European Central Bank cut the main interest rate for the euro zone — of which France is a member — to 0.0 percent from 0.05 percent in March. This was an attempt to fend off the specter of growth-sapping deflation.
The bank's corporate and institutional banking (CIB) division performed well. Its revenue was up 1.4 percent on the second quarter of 2015, despite the "very challenging market environment" at the beginning of 2016.