France’s biggest listed bank, BNP Paribas, says it will not have to raise more money in order to meet tougher new industry rules on how much capital banks must hold in reserve.
As it announced better than forecast third-quarter results BNP Paribas’ outlook for the year was very upbeat.
That followed strong quarterly results from rival Societe Generale and boosted investor confidence in the banking sector in France.
BNP reported net income of 1.9 billion euros, up 46 percent year-on-year.
“Results are strong at SocGen and very solid at BNP; it’s taken as a positive,” WestLB analyst Christoph Bossmann said.
Falling loan provisions and strong retail banking exposure helped BNP and SocGen beat third-quarter forecasts despite a sluggish quarter for investment banking that hurt rivals Credit Suisse, Nomura and Morgan Stanley.