BNP Paribas said it would make a pre-tax loss of €1.4bn in the last three months of 2008 but would report a net profit of €3bn for the whole year. Shares in France’s biggest bank closed 17% higher at €25 on relief that the result, though below expectations of a €4bn ($5.2bn) pre-tax profit, would not be worse and that the bank had again ruled out a rights issue. Instead, BNP will strengthen its balance sheet by issuing €5.1bn of preference shares to the French government. It is the first to opt for the prefs, which are more expensive than the government alternative of subordinated loans.

This entry was posted by Gwen Robinson on Tuesday, January 27th, 2009 at 5:35 and is filed under Capital markets. Tagged with bnp paribas. Edit this entry.