BNP Paribas eases losses

Picture: Thinkstock

Picture: Thinkstock

French Bank BNP Paribas said on Tuesday that its South African subsidiary had eased its losses after raising both interest and fee income in the year to December last year.

The SA unit is an issuer of a R10 billion domestic note bond programme listed in mid-October last year.

Net interest income more than doubled from R14,5 million to R33,5 million. Fee and commission income rose from R16,6 million to R28,5 million. After a R266 000 loss on financial instruments held for trading and a provision for impairment of contingent liabilities for R3,5 million, operating income rose from R31 million to R58,2 million, an 88 percent increase.

The income was eroded by personnel costs of R47.4 million and other operating costs of R49.7 million to yield a loss of R39 million, down from R 53,5 million the year before.

The company has received transfers of R726 million over the past two years from its head office in France as it sought to enter the SA market. It owns a majority stake in the equities division of troubled financial services group Cadiz.




today in print