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Banks boost earnings
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July 28, 1999: 4:30 a.m. ET
Deutsche, Paribas get timely boost from soaring profit
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LONDON (CNNfn) - Two of Europe's largest banks reported strong earnings Wednesday, timely responses to mounting pressures on both groups.
Paribas, which is in the final throes of a bitter three-way takeover battle in Paris, unveiled a 56 percent surge in net half-year earnings, with profit reaching a record level of 1.01 billion euros ($1.07 billion).
In Frankfurt, Deutsche Bank unveiled a 19 percent rise in operating profit for the first six months, just as the bank seeks to digest U.S. bank Bankers Trust. BT earnings were included for just the last three weeks of the quarter.
Paribas earnings benefited from a sharp tumble in the provisions the group was required to make for doubtful loans. In the six months ending in June, Paribas wrote off just 147 million euros against customers who can't pay back their borrowings, down from 422 million euros in the same period a year ago.
The bank also booked 508 million euros in capital gains from the sale of assets, an 80 percent increase over last year.
The bank's management hopes the record profit will sway investors as France's largest banking battle comes to a head. By the end of July investors will decide whether to back a friendly merger between Paribas and Société Générale, or to opt for a hostile three-way tie proposed by rival BNP.
All the banks involved are doing their best to garner investor support. SocGen reports Thursday, and BNP has already promised its first-half earnings will double.
Deutsche also announced healthy figures, in line with analysts' predictions. Operating profit in the half rose almost 20 percent to 2.035 billion euros ($2.16 billion), and net income jumped 45 percent to 1.8 billion euros.
Deutsche had healthy financial markets to thank for much of its first-half showing; trading profit soared almost 80 percent to 2.28 billion euros.
Having completed the drawn-out acquisition of Bankers Trust by early June, Germany's largest bank now faces the challenge of proving it can successfully integrate the U.S operation. Several senior BT executives, including former chief executive Frank Newman, have left the merged company already.
Investors warmed to the numbers in Frankfurt, and Deutsche shares rose just over 1 percent to 61.65 euros in Frankfurt, ahead of a conference giving more details on the numbers. 
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Deutsche Bank
Paribas
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