BNP Paribas reported better-than-expected Q2 results, largely driven by a significant jump in its equities trading division. Revenue from equity and prime brokerage services soared by 58%, contributing to a 21% increase in net income on a reported basis, reaching $3.4 billion ($3.69 billion as reported by Reuters). This performance surpassed the average analyst estimate of $2.91 billion from 16 analysts.
The surge in equities trading was substantial enough to compensate for a slight decline in fixed-income trading, a contrast to some US firms that experienced double-digit gains in fixed-income. Overall, the bank's investment banking revenues climbed 12% from the previous year to $4.48 billion, outperforming rival Deutsche Bank's 10% rise in the same quarter. This marks the first time BNP Paribas' equities traders generated more revenue than their fixed-income counterparts.
Group revenues overall increased by about 8% to $12.3 billion, exceeding the average estimate of $11.9 billion. This strong performance, particularly in equities, positions BNP Paribas as a standout performer in the European markets, showcasing resilience against a backdrop of weaker travel and leisure shares and rising oil prices. The stock price reacted positively, hitting a 24-year high of $103.02 EUR and gaining 9.54% over the past four weeks, with a 37.46% increase over the last 12 months.
