BNP Paribas Q3 net profit rises 45 percent

French bank BNP Paribas beats analyst expectations with 45 percent increase in Q3 net profit

• By Emma Vandore, AP Business Writer
• On 5:33 am EST, Thursday November 5, 2009

PARIS (AP) -- French bank BNP Paribas on Thursday reported a 45 percent increase in third quarter net profit thanks to gains in investment banking and the integration of newly acquired Belgian lender Fortis.

The eurozone's largest banking group said in a statement that it earned a net profit of euro1.3 billion ($1.92 billion) in the July to September quarter compared with euro901 million a year earlier.

The results beat expectations -- a Thomson Reuters poll of analysts had forecast net profit of euro1.01 billion -- and shares in the bank rose about 2 percent to euro53.70 in mid-morning trading.

BNP Paribas took advantage of troubles at Belgian lender Fortis, which it acquired, becoming the largest financial institution by deposits across the 16 countries that use the euro. The transaction, effective from May 12, added euro277 million to net profit in the quarter.

Asked whether BNP Paribas would be interested by other opportunities, CEO Baudouin Prot did not rule out small acquisitions but said integrating Fortis is the bank's priority.

The corporate and investment banking division, the company's largest and most profitable unit, was helped by a rebound in financial markets.

Revenue in investment banking rose 43 percent to euro2.93 billion, and increased 5 percent to euro4.58 billion at its retail banking unit, BNP Paribas said. Prot said that BNP's mixed model of investment and retail banking has proved to be "robust in the crisis."

Earnings at crosstown rival Societe Generale were also helped by investment banking gains.

SocGen said Wednesday that it made a net profit of euro426 million ($627 million) in the July to September period, compared with euro183 million a year earlier.

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