Paris: BNP Paribas revealed its exposure to Greek sovereign debt yesterday, the largest so far among major French banks, as worries over wider contagion from the Greece debt crisis keep lenders under pressure.
BNP also posted first-quarter net profit that beat analyst forecasts, thanks to improved market conditions and the integration of Fortis, and said the economic recovery had begun.
The bank pegged its Greek sovereign debt exposure at 5 billion euros (Dh24 billion), a day after smaller rival Societe Generale said its exposure was 3 billion.
BNP added that it had 3 billion euros in corporate commitments in Greece, mainly with international firms involved in maritime defence and with risks that had "minimal correlation" to Greece's economy.
BNP's other major French rival, Credit Agricole, has said its sovereign Greek exposure is 850 million euros.
This puts BNP firmly ahead of both French peers in Greek exposure. However, unlike them, BNP does not have a significant banking subsidiary within Greece, and analysts see the group as relatively less vulnerable to the broader Greek economy.
BNP reported first-quarter net profit of 2.3 billion euros yesterday, a 47 per cent rise year-on-year and higher than the average forecast of 1.6 billion in a Reuters poll of 11 analysts.
"The first quarter 2010 has seen signs of the beginning of economic recovery," the group said.
The results were partly due to lower loan provisions as financial market conditions improved, helping BNP's corporate and investment banking unit squeeze out more profit.
