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Second-quarter profits at France’s biggest bank BNP Paribas fell slightly, in spite of cost-cutting measures, as the Company increased its provisions for bad debt, the bank said Wednesday.
Net income fell 4.7 per cent over the second quarter of 2012 to 1.76 billion euros ($ 2.33 billion) as the bank increased its loan-loss provisions by 30 percent to 1.1 billion euros.
Revenue fell 1.8 per cent to 9.92 billion euros.
BNP attributed its performance to the “still challenging economic environment in Europe”.
“The group’s balance sheet is rock-solid,” the bank said, pointing to the fact that it had exceeded international targets on top Tier 1 capital — a measure of a bank’s financial strength.
Like other French banks, BNP Paribas was penalized in 2011 and 2012 by its exposure to debt-strapped southern Europe markets, particularly Greece. The bank said Wednesday it would increase its focus on Germany and Asia.
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