BNP Paribas profits hit by exposure to Greek debt

BNP Paribas

Last Updated at 16 Feb 2018, 16:31 GMT *Chart shows local time BNP Paribas intraday chart
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BNP Paribas has reported flat profits after setting aside money to cover its exposure to Greek debt.

The French bank reported net profit of 2.12bn euros ($3.01bn; £1.85bn) for the three months to the end of June, up 1.1% from the same period last year.

It set aside 534m euros to cover its Greek exposure.

The second bailout for Greece is expected to lead to private sector creditors losing about 21% of their holdings.

BNP Paribas holds the most Greek debt of any of the French banks, about 5bn euros of sovereign debt, and was heavily involved in the discussions about private sector contributions to the bailout plan.

In a research note, analysts at Espirito Santo Investment Bank, said: "Divisionally, second quarter revenues from the corporate and investment banking business was the main disappointment, 6% lower than we were expecting."

Chief executive Baudouin Prot said the bank would not be cutting jobs, unlike other major European banks.

"We didn't go for the go-go hires as peers did in the last few quarters. If we didn't go for the go we didn't have to go for the stop," he said.

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