First Hawaiian
owner’s profits rise

PARIS » French bank BNP Paribas SA, owner of Honolulu's First Hawaiian Bank, posted a 13.5 percent increase in net profit in the third quarter yesterday, saying lower provisions for bad loans and tight cost controls had more than offset slower growth and choppy equity markets in Europe.

Net profit came in at 1.1 billion euros ($1.41 billion) in July-September, compared with 970 million euros in the year earlier.

Revenue, or net banking income, rose 3.4 percent to 4.53 billion euros ($5.81 billion) but fell short of most analysts' forecasts.

The bank said economic conditions had worsened in the third quarter, with European growth hampered by sharply higher oil prices. As a result, capital markets activity started declining from around August.

BNP Paribas' gross operating profit rose 7 percent to 1.71 billion euros ($2.19 billion).

As in previous quarters, the bottom line result was assisted by lower loan-loss provisions. This time the bank set aside 116 million euros ($149 million) compared with 350 million euros in the third quarter of 2003.

The bank's domestic and international retail banking networks contributed most to the revenue increase, along with the asset management and services divisions. The corporate investment banking division, meanwhile, saw revenue slide 4.5 percent to 1.33 billion euros ($1.70 billion).