BNP Paribas , the euro zone's biggest bank, saw profit more than double in the first quarter from a year earlier, bolstered by gains from its much-anticipated sale of its U.S. retail division while revenue beat estimates.
income, currency and commodities trading, usually a bright spot, plunged 17% to $3.93 billion, while equity trading revenue sank 7% to $3.02 billion.The sale of Bank of the West, which closed in February, yielded about 2.95 billion euros in capital gains, the French lender said, helping BNP Paribas shore up its CET 1 ratio -- a key measure of financial strength -- to 13.6%, up from 12.3% in the previous quarter.
The group's liquidity ratio was also up by 10 percentage points over the same period, to 139%, while the cost of risk -- money put aside for failing loans -- stood lower than expected at 642 millions euros.BNP's first-quarter sales were up by 1.4% from a year earlier to 12.03 billion euros, driven by its investment bank and its commercial and retail branch.
BNP's commercial and retail banking's sales in France grew faster than expenses in the first quarter, driven by the rise in interest rates charged on mortgages following tighter monetary policy. BNP's operating expenses also jumped 23% in the first quarter, notably propelled by a nearly 900 million-euro contribution to the Single Resolution Fund, an industry-funded safety net.
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