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BNP Paribas profits hit by Greek debt writedowns | BNP Paribas profits hit by Greek debt writedowns |
(40 minutes later) | |
BNP Paribas, France's biggest listed bank, has reported a 50% fall in profit for the final three months of 2011, after taking further losses on its Greek debt holdings. | BNP Paribas, France's biggest listed bank, has reported a 50% fall in profit for the final three months of 2011, after taking further losses on its Greek debt holdings. |
It reported net income of 765m euros ($1bn; £641m) for the quarter, after writing down its Greek assets by a further 567m euros. | It reported net income of 765m euros ($1bn; £641m) for the quarter, after writing down its Greek assets by a further 567m euros. |
The bank said it had now written down the value of its Greek debt by 75%. | The bank said it had now written down the value of its Greek debt by 75%. |
For 2011 as a whole, net income was down 22.9% to 6bn euros. | For 2011 as a whole, net income was down 22.9% to 6bn euros. |
Despite the sharp fall in fourth quarter profits, BNP's results were better than analysts' expectations and quarterly revenues of 9.69bn euros were also stronger than forecast. | |
Shares in BNP rose 7% in early trading in Paris, with investors also encouraged by news that the bank had hit new capital requirements ahead of schedule. | |
The bank's Tier 1 capital ratio - assets held in reserve as a buffer against financial troubles - has reached 9.2%. European regulators have set banks a minimum ratio of 9% to be hit by the end of June 2012. | |
In an interview with Reuters Insider TV, BNP Paribas chief executive Jean-Laurent Bonnafe said he was optimistic that 2012 would be a better year. | |
"The beginning of the year has been quite strong in investment banking. [We see] some kind of stabilisation of the eurozone situation," Mr Bonnafe said. | |
"[We see] some kind of a slowdown in Europe... not a recession." | |
Banks across Europe have seen their profits hit by the eurozone debt crisis which has forced them to write down their exposures to sovereign debt. | |
BNP Paribas said it had written down its holdings of Greek debt by a total of 3.45bn euros in 2011. |
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