French banking group BNP Paribas has reported a net income of €1.59bn for the fourth quarter (Q4) of 2020, a 13.9% decrease compared to €1.84bn for Q4 2019.
The bank reported revenue of €10.82bn for Q4 2020, a 4.5% decrease compared to €11.33bn for the same quarter of the previous year.
The operating income of the firm was €1.66bn for Q4 2020, a 28.6% decrease compared to €2.33bn for the corresponding quarter in 2019.
BNP Paribas reported a pre-tax income of €2.23bn for Q4 2020, an 11.8% decrease compared to €2.52bn for the same period the previous year.
The company attributed the decline in income to more provisions for loans that may turn sour due to the effect of Covid-19 pandemic on global economies.
BNP Paribas chief executive officer Jean-Laurent Bonnafé said: “The world is now experiencing a health crisis that is unprecedented in its extent and duration. It has tested us, as it has tested all components of our societies. And it has reminded us of the importance of values such as solidarity and inclusion.
“The bank has mobilised all its resources to help our clients weather this crisis and lay the foundation for a solid and sustainable economic recovery.
“BNP Paribas has been highly resilient, thanks to its diversified and integrated model, its financial solidity, its digital and industrial transformation, and its platforms’ execution capabilities. On the strength of these advantages, we are well-positioned to enter a new phase in the development of our activities.”
BNP Paribas’ domestic markets business reported revenue of €3.83bn for Q4 2020, a 1.3% decrease compared to €3.88bn for the same quarter in 2019.
The international financial services business reported revenues of €3.91bn for Q4 2020, compared to €4.39bn for the corresponding quarter previous year.
The corporate and investment banking (CIB) business reported a revenue of €3.31bn for Q4 2020, an increase of 6.9% compared to €3.10bn for the same period in 2019.
The operating divisions reported revenue of €11.06bn for Q4 2020, a 2.7% decrease compared to €11.37bn for Q4 2019.
The company’s CET1 RATIO for Q4 2019 was 12.8%, which increased by 70 bps compared to Q4 2019.
