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BNP Paribas Q4'17 net income declines, as revenues tick down

Paris-based BNP Paribas SA reported fourth-quarter 2017 net income attributable to equity holders of €1.43 billion, down 1.1% from €1.44 billion a year earlier, as revenues dipped.

Revenues decreased to €10.53 billion from €10.66 billion. Operating income declined 14.9% to €1.93 billion. The bank booked a €196 million gain from nonoperating items, compared to a gain of €5 million in the fourth quarter of 2016.

For full year 2017, the French lender's net income attributable to equity holders slightly increased on a yearly basis to €7.76 billion from €7.70 billion.

EPS for the 2017 was €6.05, compared to the year-ago €6.00. Return on equity was 8.9%.

The bank's fully loaded Basel III common equity Tier 1 ratio stood at 11.8% as of Dec. 31, 2017, up from 11.5% a year ago.

The lender noted that the estimated impact of the first-time application of the new IFRS 9 accounting standard on Jan. 1 is expected to be limited for the group, with roughly negative €2.5 billion for shareholders' equity revaluated.

BNP Paribas' board proposed a dividend of €3.02 per share in cash, up 11.9% compared to 2016, equivalent to a 50% payout ratio.

The group confirmed its 2020 targets with revenue growth above or equal to 2.5% per year and €2.7 billion in recurring cost savings starting in 2020, adding that it is aiming for ROE above 10% at that time.