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BNP delivers robust profits
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March 1, 2002: 4:07 a.m. ET
France's biggest bank say Q4 profit rises 19 percent, thanks to retail unit
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PARIS (CNN) - BNP Paribas, France's biggest bank, said on Friday robust earnings at its retail banking division boosted fourth-quarter profit more than 19 percent.
The Paris-based bank's results were the strongest set of figures released by any European bank because BNP relies on steady income from its consumer banking business. Many of its rivals rely more heavily on volatile investment banking income.
Net income rose to 866 million euros ($752 million) in the three months to December 31 from 726 million euros a year ago. For the year, net income slipped 2.6 percent to 4 billion euros, slightly above analysts' expectations.
BNP (PBNP) Chairman Michel Pebereau said the year had begun in an "unfavourable and unstable economic and market context." Pebereau declined to make any forecast for 2002.
Fourth-quarter pretax profit at its domestic retail banking business rose 26 percent 284 million euros.
The euro zone's biggest bank by market size said it increased provisions for possible bad loans by 1.7 percent to 410 million euros. Its debt provision for the year rose 14.9 percent, compared with a 42 percent rise at rival Societe Generale and 91 percent at Credit Lyonnais.
Many European banks have increased the amount of money they are setting aside for bad debts, including exposure to bankrupt U.S. energy trading group Enron and Argentina's economic crisis.
"The figures look solid and have benefited from the bank's low risk profile compared to some of its competitors," Jean-Baptiste Bellon, an analyst at Deutsche Bank, told Reuters. "Whether the stock can go any higher may depend on whether they can say more about the outlook for 2002."
BNP's stock, which has risen more than 10 percent this year while the European banking sector has slid 3 percent, slipped 1.9 percent to  55.00 in early Paris trading on Friday. 
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