BNP Paribas increases savings forecast in integration of Fortis

Paris: French bank BNP Paribas raised its forecast for savings from the integration of BNP Paribas Fortis, its largely Belgian arm, to 900 million euros (Dh4.9 billion) by 2012 from 500 million.

BNP forecast the business would boost earnings as early as next year before restructuring costs and return on invested equity should exceed 20 per cent by 2012, it said in a presentation to investors in Brussels on Tuesday.

BNP Paribas took control of the Belgian banking arm of Belgian-Dutch financial group Fortis, which was broken up over the past year. BNP Paribas Fortis employs 18,000 people in Belgium and 34,000 people worldwide.

"The integration project is going well. BNP Paribas Fortis businesses have stabilised asset flows and even gained inflows in retail banking," BNP said in a statement.

The bank predicted that the integration should benefit earnings as early as 2010 before restructuring costs and add 8.5 per cent in 2012, when full synergies should have come through.

BNP Paribas shares rose as much as 2.5 per cent and were up 2.4 per cent at 56.29 euros by 0937 GMT, in line with the DJ bank index.