BNP Paribas Net Interest Income and Global Banking Revenues in Q3 at a Glance – Earnings Overview

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By Ed Frankl


BNP Paribas SA is due to publish its third quarter results on Thursday. Here’s what you need to know:


NET PROFIT: The French bank is expected to report net profit in the three months to the end of September of 2.37 billion euros ($2.34 billion), according to analyst estimates provided by FactSet. This compares to 2.50 billion euros in the same period last year.


REVENUES: The Paris-based lender is expected to post quarterly revenue of 12.00 billion euros, according to FactSet consensus, up slightly from 11.40 billion euros in the same period last year .


WHAT TO WATCH:

— HIGHER RATES AND INFLATION: As at many banks this quarter, BNP Paribas investors are likely to focus on how higher interest rates contributed to the improvement in net interest income, as lenders earn more on loans. Cost inflation and the impact of a potential economic downturn on operating performance will also play a key role in the update, RBC Capital Markets analyst Anke Reingen said in a note.

– WORLD BANK: There will likely be pressure on revenues from BNP’s global banking business due to subdued credit activity in the quarter, and some loan markdowns due to widening spreads, according to UBS analysts in a note.

–POLAND: The bank could expect a €200 million hit from the suspension of mortgages in Poland, RBC’s Anke Reingen said, and investors could expect further disruption as governments are considering efforts to protect customers from rising inflation.


Write to Ed Frankl at [email protected]

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