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BNP Paribas earnings beat expectations with ‘strong momentum’ in domestic markets

People walk past BNP Paribas, a french international banking group.
ANGELA WEISS | AFP | Getty Images

BNP Paribas has reported net profit above expectations for the final quarter of 2021, driven by a strong activity in domestic markets.

The bank’s net income came in at 2.31 billion euros ($2.63 billion) for the quarter. That’s above the 2.05 billion euros expected by analysts, according to data from Refinitiv.

The French lender also surprised to the upside with its annual figure, with net income standing at 9.49 billion euros, above the 8.92 billion euros forecasted.

“For the whole of 2021, Domestic Markets’ results were up very sharply, driven by increased activity,” the bank said in a statement.

Jean-Laurent Bonnaf?, the bank’s CEO, added: “With a reinforced profitability in 2021 and a 10% ROTE [return on tangible equity], the Group’s results is the outcome of our long-term strategy and transformation.”

BNP Paribas also said it wants to achieve a return on tangible equity — a measure of return for investors — of more than 11% by 2025.

The latest earnings release comes as markets consider the possibility of higher interest rates in Europe. This could support the profit margins of many European lenders, which have long complained about the low interest rate environment.

Shares of BNP Paribas are up by about 46% over the last 12 months.

This story is being updated. Please check back again later for more.

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