French banking giant BNP Paribas reported second quarter profits of 1.5 billion euros (2.3 billion dollars) Wednesday, down 34 percent on the same period last year but nevertheless better than forecast.
The subprime credit crisis in the US property market cost the bank another 542 million euros over the quarter, a little less than the 575-million-euro writedown announced Tuesday by Societe Generale for the same reason.
That brings the cost of the so-called credit crunch to the bank to nearly 2.4 billion euros since the crisis began a year ago.
Because BNP Paribas stayed out of the banking activities worst hit by the crisis, that is far less than some of its French banking rivals.
Because of the volatile stock market, the bank's finance and investment wing suffered again this quarter, its revenue dropping 24.57 percent. This was nevertheless better than the 41 percent drop in the first quarter of the year.
"The financial crisis and its knock-on effects continued to weigh on the profitability of the banking sector in the second quarter 2008, again with significant differentiation between the results of the players," said director general Baudoin Prot.
"In this context, BNP Paribas again delivered robust operating results in all its business units."
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