Finance

BNP Paribas posts a profit rise on retail rebound and lower provisions

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A BNP Paribas logo is seen outside a bank office in Paris, France, August 6, 2018. REUTERS/Regis Duvignau/File Photo

PARIS, July 30 (Reuters) - French bank BNP Paribas (BNPP.PA) reported a 26.6% rise in net income in the second quarter, spurred by a rebound of French retail banking activity and as provisions for bad loans dropped back to pre-pandemic levels.

The euro zone's biggest listed lender said net income profit stood at 2.91 billion euros ($3.5 billion) with its cost of risk, reflecting provisions for bad loans, down by 43.8% at 813 million euros in the quarter.

Revenue was up 0.9%, as a 9.5% rebound in retail banking offset a drop in earnings from corporate and investment banking.

The lender said it will pay shareholders an additional dividend of 1.55 euro per share this year after the European Central Bank said last week it would lift restrictions on bank dividend payments and share buybacks beyond September, ending a crisis measure that forced banks to retain capital during the pandemic.

($1 = 0.8420 euros)

Reporting by Matthieu Protard and Jean-Michel Belot; Editing by Sarah White

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