BNP Paribas SA posted declining revenue from fixed-income trading over the third quarter, giving rise to market sentiment that European banks have underperformed compared to their US counterparts at a time when markets have become less turbulent.
The Paris-based bank posted a fixed-income revenue from bond trading of €1 billion ($1.1 billion) for the quarter, a 12% decline. Overall revenue for the lender fell 9% to €1.8 billion; lower than Wall Street estimates according to a Bloomberg survey. Net income for the three months ending September was €2.7 billion; a 4% drop.
“Last year when you had the things happening which drove prices in gas and other commodities, that was mainly impacting Europe,” company CFO Lars Machenil said with regard to the lender’s performance on Thursday. “The US has a different base of all these kind of products, didn’t have as much pressure on those commodities.”
