UPDATE 2-BNP Paribas Q3 beats forecast with Fortis boost
* Q3 net profit 1.305 bln eur
* Average Reuters forecast for net profit was 1.184 bln eur
* CEO says feels "optimistic", gives no specific guidance
(Adds comments from CEO and analyst, further background)
PARIS, Nov 5 (Reuters) - BNP Paribas (BNPP.PA), the eurozone's second-biggest bank by market capitalisation, posted higher profits on Thursday that beat market forecasts and trumped the results of many rival banks.
"I'm optimistic for our business," Chief Executive Baudouin Prot told CNBC television, although Prot declined to give any specific guidance on BNP's outlook.
Net profit rose 45 percent from a year ago to 1.305 billion euros ($1.9 billion), with earnings at the French bank boosted by its acquisition of Fortis assets and by its investment banking arm which benefited from a rebound in financial markets.
"Overall, a good set of results, particularly in CIB
(corporate and investment banking)," said WestLB analyst Christoph Bossmann, who has an "add" rating on BNP shares.
Many of the world's leading banks have posted higher third quarter profits over the past weeks, with the likes of Goldman Sachs (GS.N), JP Morgan (JPM.N) and Credit Suisse (CSGN.VX) all benefiting from the market upturn.
On Wednesday, domestic rival Societe Generale (SOGN.PA) said its third quarter net profit had more than doubled from last year to 426 million euros, although SocGen's earnings came in below the consensus forecast. [nL3620732]
Yet some doubts remain over the extent of the economic recovery and the amount of money banks have to set aside to cater for the risk of loans not being repaid.
Spain's Santander (SAN.MC), the eurozone's largest bank by market capitalisation, last month posted a small drop in profit as it had to boost provisions.
BNP Paribas' cost of risk charge came in at 2.3 billion euros for the third quarter, up 16 percent from last year, and CEO Prot said he expected the cost of risk to remain high.
"I don't expect any significant decrease in the cost of risk," Prot told CNBC.
BNP shares closed up 3.5 percent at 52.63 euros on Wednesday, giving the bank a market capitalisation of around 62 billion euros. The stock, one of Europe's best-performing bank shares, has risen around 80 percent so far this year and has outperformed a 50 percent gain in the DJ Stoxx European bank index .SX7P>
($1=.6782 Euro)
(Editing by Marcel Michelson)
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