Fixed-income and currency boom boosts BNP Paribas

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BNP Paribas leaned on its fixed-income and currency traders to power a record second quarter for the French bank’s markets business, even as its equities traders missed out on Wall Street’s latest boom.

Revenue at France’s biggest lender rose 2.5 per cent compared with the same quarter of 2024 to €12.6bn, beating analysts’ expectations thanks to a rise of almost 27 per cent in its fixed income, currencies and commodities trading business.

Pre-tax income was €4.6bn, up 3.1 per cent on the same period a year ago, and slightly ahead of analysts’ estimates, the bank said on Thursday.

BNP singled out its fixed-income bankers for capitalising on volatility linked to US President Donald Trump’s tariff threats. But the French lender’s equity trading, mergers and acquisitions advisory and capital markets’ activities did not gain from the uncertainty.

The bank said its equity traders had a more sluggish second quarter than 2024 as a result of “softer client demand” for its complex structured products such as derivatives following Trump’s “liberation day” measures on April 2.

Volatility linked to French President Emmanuel Macron’s decision to call snap parliamentary elections had boosted equity trading a year ago.

Equity and prime services trading recorded net revenue of €980mn, down 14.9 per cent on the previous year and worse than analysts had expected.

The unit’s weaker performance comes despite traders on Wall Street reporting booming revenues from trading, with Goldman Sachs reporting a second consecutive record quarter for its equity traders last week.

BNP also missed out on the rebound in investment banking at some of the largest US banks.

Revenues from the bank’s global banking unit were flat. The division, which houses the mergers and acquisitions, equity capital markets and debt capital markets businesses, was hit by a “wait-and-see attitude” in Europe, the Middle East and Africa, the lender said.

BNP said the division had a “good quarter . . . in a more challenging environment than last year”, including the backdrop of tariff announcements, geopolitics and the depreciation of the dollar against the euro.

Revenue from its commercial and personal banking services division, which includes retail banking, was flat compared with the same period a year ago, while its smaller investment and protection services division, which includes insurance and wealth management, grew by 4.4 per cent.

BNP said it expected net income for 2025 to exceed €12.2bn, in line with its 2024-26 guidance, while return on tangible equity — a closely watched measure of profitability — is expected to reach 11.5 per cent.