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BNP Paribas profits fall
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May 10, 2001: 3:18 a.m. ET
France's biggest bank posts decline in earnings, but retail banking advances
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LONDON (CNN) - France's biggest bank BNP Paribas said on Thursday net profits fell 7 percent in the face of wavering stock markets and a slowing economy.
BNP Paribas posted first-quarter net income of  1.25 billion ($1.1 billion) compared with 1.34 billion in the same quarter of 2000, slightly more than expected. Pretax profit edged down to 1.97 billion from 1.91 billion.
The bank's performance came a week after rivals Societe Generale (PGLE) and Credit Lyonnais (PCL) issued profit warnings, citing the U.S. slowdown feeding through to Europe.
BNP Paribas said first-quarter pretax profits from its corporate and investment banking businesses fell 22.2 percent to 665 million compared with 855 million in the same quarter a year ago.
Pretax profits from asset management and private banking declined 7.3 percent to 227 million from 245 million last year.
BNP Paribas (PBNP) said its retail banking business saw a 4.2 percent rise in pretax profits to 600 million compared with 576 million in the first quarter of 2000.
Net interest revenues rose 2.5 percent and outstanding loans increased 6.5 percent as the bank noted a significant upswing in lending to corporate and private customers in the first three months.
The bank declined to forecast its performance for the rest of the year, saying "the economic and business situation for the next three quarters seems especially difficult to predict."
BNP Paribas said on Monday it plans to buy 55 percent of BancWest of the U.S. for $2.45 billion to expands its international reach. 
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