PARIS, Feb 5 (Reuters) - BNP Paribas presented plans to cut investment banking costs by 12 percent by 2019 on Friday in a bid to bolster profitability and said it would quit some activities in order to fuel growth.
Regulatory and compliance costs, along with a previously announced 900 million euro ($1.01 billion) writedown on the value of its BNL Italian unit, pushed net income down 51.7 percent to 665 million euros, undershooting the average of analyst estimates of 845 million in a Reuters poll.
But France’s biggest bank reported slightly better-than-expected revenue growth in the fourth quarter, with corporate and institutional banking revenue up 8.4 percent, partly thanks to a sharp increase in derivatives trading.
BNP Paribas said it planned to generate 1 billion euros in cost savings by 2019 and focus on businesses that use less capital and generate fees, such as securities services, transaction banking, and advisory businesses. ($1 = 0.8936 euros) (Reporting by Maya Nikolaeva and Julien Ponthus; Editing by James Regan)
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