BNP Paribas plans to cut investment banking costs by 12pc
BNP Paribas presented plans to cut investment banking costs by 12pc by 2019 on Friday in a bid to bolster profitability and said it would quit some activities in order to fuel growth.
Regulatory and compliance costs, along with a previously announced €900m writedown on the value of its BNL Italian unit, pushed net income down 51.7pc to €665m, undershooting the average of analyst estimates of 845 million in a Reuters poll.
But France's biggest bank reported slightly better-than-expected revenue growth in the fourth quarter, with corporate and institutional banking revenue up 8.4pc, partly thanks to a sharp increase in derivatives trading.
BNP Paribas said it planned to generate €1bn in cost savings by 2019 and focus on businesses that use less capital and generate fees, such as securities services, transaction banking, and advisory businesses.