BNP’s results were aided by a 58 per cent jump in sales from equity and prime brokerage services.

France’s BNP Paribas posted better-than-expected quarterly earnings after investment banking revenue jumped due to a surge in equities trading, offsetting a sharp drop in net interest income at its French retail business.

The eurozone’s biggest bank by market value said second-quarter net income grew by 21 per cent on a reported basis from a year earlier to a record 3.4 billion euros, exceeding the 2.91 billion-euro average of 16 analyst estimates compiled by the group.

Group revenues rose about 8 percent to 12.3 billion euros, beating the 11.9 billion-euro average estimate. The cost of risk, or money set aside for failing loans, was a lower-than-expected 752 million euros.

BNP’s results were aided by a 58 per cent jump in sales from equity and prime brokerage services, which involve facilitating the buying, selling and lending of shares and providing other services to clients such as hedge funds.

BNP said its overall second-quarter investment bank revenues climbed 12 per cent from a year ago to 4.48 billion euros.

BNP’s results will be a boost for CEO Jean-Laurent Bonnafe, who has made its investment banking division a key driver of growth plans but has struggled to lift the bank’s shares in recent months.

The bank’s stock price has risen just 3.3 per cent in 2024, against a close to 22 per cent rise for the STOXX Europe 600 banks index , dragged down partly by the lender’s underwhelming performance and partly by recent political uncertainty following French President Emmanuel Macron’s decision to call snap parliamentary elections.

BNP, which forecast annual revenues from market activities rising by more than 7.5 per cent on average over 2021-2025, delivered a better performance at its equities trading business in the second quarter than some rivals on Wall Street.

France has seen a slow return of initial public offerings (IPO) in 2024, with the listings of Exosens and Planisware, for which BNP acted as global coordinator.

BNP’s second-quarter sales from trading in fixed income, currency and commodities (FICC) fell 7 per cent, as demand retreated, in particular for commodities.

Rising NII has swelled bank coffers this year, but analysts are concerned about it slowing as the ECB reduces interest rates.

BNP confirmed its full-year targets, including revenue growth of more than 2 per cent compared to 2023 distributable revenues and group net income of more than 11.2 billion euros.