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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

BNP Paribas tumbles after fourth-quarter results

(Sharecast News) - BNP Paribas tumbled on Thursday after its fourth-quarter profits missed estimated, as it struck a cautious note on the outlook. Fourth-quarter net income declined 50% from the same period a year earlier to €1.07bn, coming in below expectations of €1.74bn. This came as the French bank set aside €645m to cover losses tied to risk on financial instruments.

These reflected the extraordinary impact of provisions on mortgage loans in Poland, provisions for litigation related to Personal Finance, and provisions for risk on receivables.

Fourth-quarter sales ticked up 0.1% to €10.9bn, versus expectations for sales of €11.4bn.

BNP also said it was pushing back its profitability target. It now expects to reach a 12% return on tangible equity by 2026, rather than 2025.

"On the strength of its diversified model, BNP Paribas should continue to grow faster than its underlying economy and to gain market share, thus offsetting a deterioration in the economic environment that is now more marked than in the economic baseline scenario," it said.

"Nonetheless, various decisions by public authorities (ECB mandatory reserves, Belgian bank levy and Belgian government bonds) marked 2023."

At 1030 GMT, the shares were down 8% at €57.53.

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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