France's biggest listed bank BNP Paribas expects a positive end to the year after posting forecast-beating third-quarter results and will not need to raise capital to meet tougher industry requirements.
Chief executive Baudouin Prot, one of the few French bank bosses o have kept his position throughout the financial crisis, said this morning BNP would outdo arch-rival Societe Generale under the new rules with a core Tier 1 ratio "better" than 7.5 per cent by January 2013.
"(There will be) no capital increase whatsoever...I'm very confident on the capital position," Mr Prot told Reuters Insider television.
BNP reported net income of €1.9 billion, up 46 per cent year-on-year.
Revenue, which was forecast to fall slightly, rose 1.8 per cent. Corporate and investment banking held up well despite a sluggish quarter, while retail rebounded "strongly", Mr Prot said.
"I'm confident that the fourth quarter should be another good quarter," he said, without giving more details.
Despite consolidation heating up in the sector, with Spain's BBVA and Standard Chartered among those raising capital to help fund acquisitions, Mr Prot said BNP would hold back from splashing out.
"We don't exclude to make acquisitions...(but) we are going to remain very disciplined regarding the price we are ready to pay," said Mr Prot, who since taking the reins in 2003 has overseen the purchase of Italy's BNL and assets from Benelux bank Fortis," he said.
Reuters