BNP Paribas SA (ADR) (OTCMKTS:BNPQY) filled up the gap left behind a few days back as it finished the last trading session with a major loss of 3.48%. The volatility has been shrinking for the last few days and an expansion any day was highly expected. The volume of the day surged to 709,000, much higher than the daily average of 92,000 though far lower than the volume of the most active day of the year. The gap filling may or may not help the bulls but in the congestion phase going on right now, no clear direction is to be expected.


The Board of Directors of BNP Paribas SA (ADR)(OTCMKTS:BNPQY) met on October 29, 2015. The meeting was headed by Jean Lemierre and the Board evaluated the company’s financial results for 3Q2015. BNP stated that it was a quarter of robust organic capital generation and solid income growth.

The highlights

In a context of a steady growth return in Europe, BNP Paribas recorded a good overall financial performance in the third quarter of 2015. The revenues jumped 8.5% to 10,345 million euros over 3Q2014. Management included an exceptional impact of plus 37 million euros in OCA and own credit risk covered in derivatives. It amounted to -197 million euros in 3Q2014.

The revenues recorded positive growth in all the operating segments compared to 3Q2014: more than 11% at International Financial Services, 4.2% at Corporate & Institutional Banking and 0.8% in Domestic Markets. The performance gained from the positive impact of the acquisitions deal completed in 2014.

The numbers

Operating expenses jumped 7.3% to 6,957 million euros and included the one-off impact of efficient and simple transformation costs and the restructuring expenses of the acquisitions finalized in 2014 which amounted to 160 million euros compared to 154 million euros in 3Q2014. The operating costs surged 2.4% in domestic Markets, 8.3% in CIB and 12.4% at International Financial Services. At constant exchange rates and scope rates, they jumped 2.2% largely due to the investments done to reinforce compliance and execute new regulations.

Gross operating income jumped 10.9% to 3,388 million euros. It increased 3.2% for the operating segments. BNP Paribas cost of risk was at a moderate level at 882 million euros. The basis of comparison of 3q2014 had limited significance following the scope effect pertaining to the acquisitions finalized in FY2014 and a net write-back of provisions at CIB in 3Q2014. Non-operating items amounted to 163 million euros compared to 149 million euros in 3Q2014.