By Ed Frankl
BNP Paribas SA is scheduled to report results for the third quarter on Thursday. Here’s what you need to know:
NET INCOME: The French bank is expected to report net income in the three months to the end of September of 2.37 billion euros ($2.34 billion), according to analyst estimates provided by FactSet. That compares with EUR2.50 billion in the same period last year.
RESULTS: The Paris-based lender is expected to post quarterly revenue of EUR12.00 billion, according to the FactSet consensus, up slightly from EUR11.40 billion in the same period last year.
WHAT TO WATCH:
–HIGHER RATES AND INFLATION: As with most banks this quarter, BNP Paribas investors will likely focus on how higher interest rates have contributed to increased net interest income, as lenders earn more from loans. Cost inflation and the potential impact of an economic slowdown on operating performance will also play a key role in the update, RBC Capital Markets analyst Anke Reingen said in a note.
–GLOBAL BANKING: There will likely be pressure on BNP Global Banking business results from muted lending activity in the quarter, and some write-downs on loans due to wide spread, UBS analysts said in a note.
–POLAND: The bank can expect earnings of EUR200 million from the mortgage holiday in Poland, RBC’s Anke Reingen said, and investors may watch for further disruptions as the government considers efforts to protect customers from rising inflation.
Write to Ed Frankl at email@example.com