PARIS, July 1 BNP Paribas has ample
funding to back the fine and penalties it must pay under
settlements with U.S. authorities over sanctions busting, the
French bank's top executives told analysts on a conference call
"Our liquidity situation, we always guided it as being
ample," said Chief Financial Officer Lars Machenil. "At Q1 we
had an overall excess of stable funding of 100 billion in euros
out of which 50 billion was in U.S. dollars. Yesterday when I
looked into the systems..., that figure was basically unchanged
at the end of the (second) quarter. This should allow having
relevant cash for the settlement."
Machenil also said there was "no rush" to seek the
additional tier 1 funding that is seen as a key measure of bank
stability as a result of having to pay the fine, set at almost
$9 billion (6.6 billion euros) under a settlement announced late
on Monday in the United States.
"It does not mean that we might not do something
opportunistically, but there is no rush for Tier 1," he said.
Machenil also added that the bank plans to offer cash
dividends for this year at 1.5 euro per share, unchanged from
2013. The payout would be about 50 cents below what it might
have been using a predicted payout ratio of 40.8 percent of
earnings, he added. This will help keep core equity tier 1 ratio
at around 10 percent.
(Reporting by Maya Nikolaeva; Editing by Andrew Callus)