The French bank BNP Paribas reported better-than-expected net profit and revenues in the third quarter of this year on Friday, supported by its fixed income unit.
BNP Paribas saw a 3.3 percent year-on-year increase in net income in the third quarter, climbing to 1.886 billion euros ($2.06 billion), above analysts' expectations of 1.723 billion euros in a Reuters poll. Shares edged lower in the European session on Friday and were down 0.8 percent by 11.00 a.m. London time.
The French lender also saw a 2.4 percent improvement in total revenues compared to the same period a year ago, reaching 10.589 billion euros. Third-quarter earnings were substantially boosted by its fixed income division, which rose 41.3 percent compared to third quarter of 2015. This is a wider trend seen across the majority of banks with Barclays reporting bumper profits from the trading of bonds, as well as several Wall Street banks.
"Thanks to its integrated and diversified business model serving its customers, it reported good growth in the revenues of the operating divisions despite the low interest rate environment. The cost of risk was significantly lower," Jean-Laurent Bonnafé, the bank's chief executive officer, said in a statement.