‘Remain careful when it comes to France’, warns BNP Paribas as revenues rise

BNP Paribas: 2016 was lacklustre for European markets

BNP Paribas saw a 1 percent uplift in revenues and a 15 percent increase in net income in 2016, compared to the year before, but shortcomings in the French bank's domestic retail arm have caused its chief financial officer to urge caution in France for the year ahead.

The bank's French retail arm battled against a low interest rate environment in 2016, Lars Machenil told CNBC Tuesday following the release of its full-year results.

Loans picked up in the latter half of the year, rising to 4.2 percent in the final quarter, however Machenil said he would "remain careful" when it comes to guidance for France.

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"To be very frank, stock markets have not been very positive, there has not been a lot of activity going on, so we will have to look how that evolves over 2017," he said.

The French bank posted a profit of 7.7 billion euros ($8.2 billion) for 2016, up 15 percent from the previous year.

"2016 started in a lacklustre way, particularly in European markets and so the bank has evolved quite strongly over the year," Machenil said of the overall business.

BNP Paribas unveiled its 2020 strategy Monday which targets additional revenue growth of approximately 6.5 percent.