BNP Paribas reveals Q4 and 2008 results

by Richard Kilner

Story link: BNP Paribas reveals Q4 and 2008 results

French bank BNP Paribas has released its financial results for the full year and fourth quarter of 2008.

For the year total revenue fell from €31bn to €27bn, and gross operating income was similarly affected, falling from €12bn to just under €9bn.

Annual net income fell by more than half, down from €7.8bn to just €3bn.

The fourth quarter was particularly difficult for the bank, as is reflected in the Q4 loss of over €1.3bn compared to a 2007 Q4 profit of €1bn.

The reasons behind the slump in profitability in the fourth quarter can be traced to a number of factors, including the soaring cost of risk, not aided by the enormous Madoff fraud (BNP Paribas was exposed to the tune of €345m).

The primary cause for the loss in Q4 has been attributed by the bank to difficulties encountered by its CIB division.

However, the results do bear reasonable comparison with other banks, all of which have been affected to a greater or lesser extent to the financial storm.

At the start of February Deutsche Bank announced losses in Q4 of €4.8bn (compared to a profit of €1bn, equal to BNP Paribas’, in Q4 2007).

Likewise troubled US banking giant Citi made huge losses of $8.29bn in the last quarter of last year.