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BNP Paribas Q1 income rises YOY despite lower CIB result

BNP ParibasSA reported a 10.1% year-over-year increase in first-quarter netincome attributable to equity holders to €1.81 billion, reflecting"solid" organic capital generation amid an unfavorable environmentcharacterized by low interest rates, a stock market crisis and the"wait-and-see attitude" by debt investors.

Excluding one-off items, attributable net income came in at€1.61 billion, up 4.0% from the first quarter of 2015. Pretax incomefor the quarter rose on a yearly basis to €2.64 billion from €2.55 billion.

The bank's corporate and institutional banking unit saw ayear-over-year drop in pretax income to €403 million from €885 million. Theretail banking and services division posted pretax income of €1.76 billion,compared to the year-ago €1.62 billion. First-quarter pretax income at unitBancWest Corp. rose to€221 million from the year-ago €178 million.

Revenues fell 2.0% on a yearly basis to €10.84 billion. Theresult included a one-off positive impact of €365 million in own creditadjustment and own credit risk included in derivatives, compared to a €37million positive impact in the first quarter of 2015.

Operating expenses declined 2.3% year over year to €7.63billion, and included the one-off impact of the acquisitions' restructuringcosts and the CIB transformationplan's costs for a total of €46 million, compared to €20 million inthe first quarter of 2015. The bank's cost of risk dropped to €757million from €1.04 billion a year earlier.

Annualized ROE, excluding one-off items, was 9.4%.

The bank's fully loaded Basel III common equity Tier 1 ratiowas 11.0% as at March-end, up by 10 basis points compared to the ratio at theend of 2015. The fully loaded Basel III leverage ratio came to 4.0%, unchangedfrom its level at the end of 2015.