Latest news with #BNP
Reuters
3 hours ago
- Business
- Reuters
Breakingviews - EU bank surge masks discrete capital soap operas
LONDON/BERLIN, July 24 (Reuters Breakingviews) - Europe's banks are having a decent 2025. For all the new-year talk about the motoring U.S. economy and the stuttering European Union, bank stocks in the euro zone are up 46% since January – while U.S. lenders have on average risen just 16%. Yet while the sector seems to have become dull and dependable, there's still room for stock-specific soap operas. Lenders across Europe used to trade miles below book value due to a vicious cycle of negative rates and insufficient capital ratios. Second-quarter results from France's $106 billion BNP Paribas, opens new tab( opens new tab and $65 billion Deutsche Bank, opens new tab( opens new tab on Thursday show how rising rates and European rearmament plans have flipped the script. BNP made a return on tangible equity of 11.6%, while Deutsche managed 10.1% - both ahead of year-end targets. Stripping out the unhelpful effect of the stronger euro, the banks' fixed income and currency trading operations rose in line with or above the 15% year-on-year jump Wall Street rivals managed. The upshot is a stark re-rating: Deutsche shares have jumped from around half of expected tangible book value in January to above 80%. Yet both the German bank and BNP lag $134 billion Spanish rival Banco Santander's ( opens new tab 1.2 times multiple. One potential driver is the three banks' different capital situations. Neither BNP boss Jean-Laurent Bonnafé nor Deutsche Chief Executive Christian Sewing have a solvency headache: the French bank's 12.5% common equity Tier 1 (CET1) ratio is over 200 basis points above its minimum level as stipulated by the European Central Bank, and Deutsche's 14.2% ratio is similarly comfortable. But investors in a utility-like sector are laser-focused on share buybacks, and anything that could conceivably diminish them. By selling, opens new tab her Polish assets in May for 7 billion euros and flagging a 13% CET1 ratio, Santander boss Ana Botín has nixed lingering fears that her bank lacks enough capital for its Latin American-heavy business. That raises investor confidence that a 10 billion euro buyback programme will be maintained. In contrast, BNP and Deutsche's capital outlooks appear fuzzier. A recent ECB interpretation may mean Bonnafé can't fully use the so-called Danish Compromise capital wheeze to bed down last year's AXA Investment Managers deal, which could reduce the bank's CET1 ratio by up to 35 basis points. Meanwhile Deutsche's risk-weighted assets might balloon, opens new tab by over 100 billion euros by 2033 if reforms reducing the flexibility in calculating these RWAs aren't watered down. Neither of these count as real capital angst – especially as Deutsche is confident it can mitigate most of the pain. But now that banks are a defensive sector again, they're held to a higher bar. To hurdle that and trade above tangible book value, investors need more than hopeful words. Follow George Hay on Bluesky, opens new tab and LinkedIn, opens new tab and Pierre Briancon on Bluesky, opens new tab and LinkedIn, opens new tab.
Reuters
5 hours ago
- Business
- Reuters
BNP Paribas sees strong retail recovery, cushions profit fall
PARIS, July 24 (Reuters) - France's BNP Paribas forecast a strong rebound in its retail banking division for the second half of the year, soothing investor concerns on Thursday with tight cost control and a smaller-than-expected drop in quarterly profit. The euro zone's biggest bank by assets said it expected second-half revenue to rise more than 5% from a year earlier, fuelled by prolonged strict cost control and stronger sales in its retail and consumer businesses. The upbeat outlook helped overshadow a mixed quarter for BNP, as its investment bank lagged Wall Street rivals. BNP shares rose 2% in early Paris trading, outpacing France's blue-chip CAC 40 index (.FCHI), opens new tab. Deutsche Bank and other European lenders also reported second-quarter results on Thursday, with the German bank beating expectations. While the economic outlook remains uncertain, banks so far are not expecting a major hit from the latest wave of U.S. trade tariffs. BNP's net income in the April-to-June period fell 4% from a year earlier to 3.26 billion euros ($3.8 billion), slightly above analyst forecasts. Revenue rose 2.5% to 12.6 billion euros, in line with expectations, while provisions for bad loans matched estimates. At its investment bank, fixed income, currency and commodity trading revenues jumped 27%, lifted by market volatility due to U.S. President Donald Trump's tariff policies, but equity trading slumped and pre-tax income from global banking declined. Overall, investment banking revenue rose 4% from a year earlier. Several analysts welcomed the bank's lower-than-expected costs and the rebound in its retail operations. "Revenue performance in European retail was a standout and sets up well for H2 '25 acceleration," Jefferies analysts said in a note. "Elsewhere, the group exhibited strong cost control." CEO Bonnafe, whose tenure was extended in May, has made the investment bank a key part of his efforts to boost BNP's profits, while also cutting costs and bulking up in asset management with the recent acquisition of AXA Investment Managers. The bank's shares have underperformed rivals, however, and even this year's 22% gain lags the wider European banking sector (.SX7P), opens new tab, with investors cautious about BNP's relative growth prospects. BNP said its average tax rate for the quarter was nearly six percentage points higher than a year ago, following changes to U.S. tax rules on financing expenses. That weighed on net earnings, with pre-tax income up 3.1%. Earnings from BNP's insurance operations rose sharply, driven by solid operating income and a one-off gain related to a financial stake in China. BNP's retail and consumer division saw a 4.3% rise in net interest income in France. Analysts expect further improvement following a recent cut in the regulated rate on the country's popular Livret A savings account, which offers room for margin expansion. French banks typically lag their Spanish and Italian peers in benefiting from higher interest rates, as 96% of French mortgages are on a fixed rate. BNP announced an interim dividend of 2.59 euros per share, to be paid on September 30. It also said it expected to surpass 12.2 billion euros in net income this year, in line with its 2024-2026 targets. ($1 = 0.8503 euros)
News18
11 hours ago
- Politics
- News18
Plane Tragedy Reminds Bangladesh Of A Friendly India, Failing Yunus Regime
Last Updated: Ordinary Bangladeshis are slowly beginning to see how, despite all the brickbats from across the border, Bharat calmly stands with a helping hand in the time of tragedy American poet Theodore Roethke, in his poem In a Dark Time, writes: 'In the darkest hour, the eye begins to see.' Profound tragedy has struck Bangladesh in the form of a plane crash which killed dozens, or possibly over a 100 students of Milestone school and college. The nation is inconsolable. India, made a villain in the eyes of millions of Bangladeshis by relentless propaganda, has rushed burn-specialist doctors and nurses to treat the victims. Prime Minister Narendra Modi was quick to express his condolences. But the tragedy has set in motion two very strong strains of public reaction in Bangladesh. The first is a massive and spontaneous outpouring of friendliness and gratitude towards India after years. India had accrued deep public resentment in Bangladesh for backing the increasingly unpopular Sheikh Hasina regime, which ultimately fell to a mob on August 5, 2024. Since then, chief advisor Muhammad Yunus, his virulently anti-India and loose-tongued student advisors, and their Islamist puppeteers like Jamaat and Hizbut Tahrir ensured that relations reach rock bottom. They tried their best to make people forget India's role in liberating Bangladesh from Pakistan during the 1971 Muktijuddo, or sending vaccines during peak Covid-19, or supporting its economy and developmental projects. India maturely navigated the bile. No irresponsible remark was fired from New Delhi to Dhaka. And now, ordinary Bangladeshis are slowly beginning to see how despite all the brickbats from across the border, Bharat calmly stands with a helping hand in the time of tragedy. Bangladeshi social media, which was hijacked for the last couple of years by radical voices, is now coming alive again with praise for India. Islamist influencers like Pinaki Bhattacharya (a Muslim neo-convert eager to prove his loyalty to his Islamist masters) are being mocked, shamed, and rejected for trying to play dirty, anti-India politics after the deaths of so many students and a few teachers. While the renewed warmth towards India cuts across BNP, Swami League and Jatiya Party lines, the buyers' remorse over the Yunus regime has accelerated even faster after the Milestone mishap. Bangladesh is realising that it has put in power a bunch of clueless and incompetent young bigots led by a malevolent and maladroit Nobel recipient. Bangladesh's GDP is at a 20-year low. Its lifeline, the garment industry, has been immobilised by the mobocracy. Local industrialists say a famine-like situation is advancing along with an energy crisis and total collapse of law and order. To add insult, Yunus was caught on video smiling heartily at an all-party meeting right after the crash which took so many young lives. But he did not stop at that. Instead of announcing an emergency financial package, he exhorted the Bangladeshi citizenry to collect money and help the victims. This growing callousness, coupled with the recent Gopalganj massacre and public lynching of a businessman, is slowly tipping the patience of the public. It is still too early to expect a paucity- and violence-torn citizenry to effect change, but it is becoming clear to all that the nation cannot indefinitely feed itself with political and sectarian hate. Knives will have to come back to the kitchen. Abhijit Majumder is a senior journalist. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect News18's views. view comments Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Express Tribune
4 days ago
- Politics
- Express Tribune
BNP's Mengal off-loaded from Dubai flight
BNP chief Sardar Akhtar Mengal was off-loaded from a Dubai-bound flight on Sunday as his name was included in a no-fly list. Taking to his X handle, the BNP chief wrote that he was offloaded from the aircraft by immigration staff when traveling from Quetta to Dubai. He added that he was informed that his name had been put in provisional national identification list (PNIL). Mengal also shared a screenshot of his ticket, immigration counter and the PNIL notepad, which says, "Prevent from leaving abroad." Following the episode, people from different walks of life condemned the incident as Senator Sana Ullah Baloch stated, "We strongly condemn the arbitrary and politically motivated restriction imposed on Sardar Akhtar Jan Mengal, Member of National Assembly and former Chief Minister Balochistan, who was offloaded from his Dubai-bound flight at Quetta airport by immigration authorities." "According to Mr. Mengal, he was informed that his name has been placed on the Provisional National Identification List (PNIL)a deeply concerning act that undermines his constitutional right to freedom of movement guaranteed under Article 15 of the Constitution of Pakistan," he added. "Such measures not only violate the law and spirit of democratic values but also reflect the continued erosion of civil liberties."
Business Recorder
4 days ago
- Politics
- Business Recorder
BNP chief Akhtar Mengal barred from traveling abroad, offloaded at Quetta airport
Balochistan National Party (BNP) President Sardar Akhtar Jan Mengal was stopped from boarding an international flight on Sunday, with immigration officials citing his name on the Provisional National Identification List (PNIL), a watchlist used to restrict international travel. According to the Federal Investigation Agency (FIA), Mengal was offloaded from a private airline flight bound for Dubai at Quetta International Airport. The officials said his name being on the PNIL was the reason he was prevented from flying. Taking to X (formerly Twitter), Mengal confirmed the incident and said he was informed by immigration staff at the airport that he could not travel because his name was listed on the PNIL. 'I was scheduled to fly to Dubai, but was offloaded without prior notice,' he said. The move has sparked condemnation from senior BNP leaders. Former federal minister Agha Hassan Baloch and Ghulam Nabi Marri termed the act 'illegal and unconstitutional.' Mengal and BNP are supporters of terrorists: PPP They emphasised that Mengal is still a sitting member of the National Assembly, and his resignation, submitted earlier, has not yet been officially accepted. 'The government has no legal grounds to bar a serving MNA from international travel,' the BNP leaders said, calling for an immediate explanation from the authorities concerned. Mengal, a key voice from Balochistan in the federal legislature, has been vocal about rights violations in the province and the enforced disappearances issue. The travel restriction is likely to draw further criticism from political and human rights circles, who see such actions as part of a broader clampdown on dissenting voices.
