French bank BNP Paribas come in Wednesday a net income growth of 53 percent from the previous favour at 2.39 billion euros ($2.79 billion).
From a year ago anyhow, net income came in slightly lower, by 0.1 percent.
The bank turned in a statement that its business increased in the context of higher economic cultivation in Europe. But it also pointed out that “an unfavorable exchange rate so to speak” and a challenging market environment for corporate and investment banking prevented it from reaching even better results.
Speaking to CNBC, Lars Machenil, chief economic officer, said “the quarter for BNP Paribas has been solid.”
Here are some of the highlights in the second-quarter:
- Takings at 11.2 billion euros ($13.08 billion)
- Net income at 2.39 billion euros ($2.79 billion)
- Marvellous loans up by 3.7 percent from a year ago
BNP Paribas said that is 2020 transfigurement plan is well underway. The program, which is aiming for “digital modification” of the business, has allowed for 149 million euros in costs savings during the supporter quarter of the year, the lender said.
Nonetheless, in total, the group saw direct expenses going up by 4.2 percent from a year ago. BNP Paribas conjectured this was due to exceptional costs with the mentioned transformation plan and due to restructuring outlays with acquisitions.
“Yes, we are doing investments for transforming the bank, we are accompanying enlargement where it is and for the rest we contain the costs. So we remain on trajectory for the 2020 cost-to-income progress,” Machenil told CNBC’s Joumanna Bercetche.
Amid growing championship, some European lenders have looked at potential mergers to inflate their business. Societe Generale, for example, bought the equities and commodities actions of Commerzbank earlier this month.
When asked if BNP Paribas was looking to do almost identical deals, Machenil said “no”.
He also said that the French bank is not doing any primary preparations for Brexit, despite having some presence in the U.K. market.
“There’s so much uncertainty that is persistent around on what’s happening (that) we are focusing on business,” he said.