French lender BNP Paribas (BNPQY.PK, BNP.L) reported Wednesday that its fourth-quarter net income attributable to equity holders was 1.442 billion euros, up 1.1% from last year's 1.426 billion euros.
Net income included the spot impact, at the closing date, of the sharp fall in the markets on the revaluation of the residual stake in First Hawaiian Bank and on part of the insurance portfolios of negative 220 million euros.
Pre-tax income fell 20.7 percent to 1.68 billion euros from 2.12 billion euros a year ago. It was down by 12.2% for operating divisions.
Revenues for the quarter totaled 10.16 billion euros, down 3.5% from 10.53 billion euros last year, which included an exceptional item of 11 million euros in Own Credit Adjustment or OCA and own credit risk included in derivatives or DVA. Revenues were down by 2.7% at constant scope and exchange rates.
Further, the company said its Board of Directors will propose at the Shareholders' Meeting the payment of a dividend of 3.02 euros per share, stable compared to 2017, payable in cash.
Looking ahead, the Group said it is updating its 2020 plan's targets with revenue growth during the period from 2016 to 2020 reviewed at 1.5% per year (2.5% per year in the initial plan) and a recurring cost savings target of 3.3 billion euros (2.7 billion euros in the initial plan) from 2020.
It expects about 2.5% growth of risk-weighted assets per year by 2020 with active management of the balance sheet through sales of non-core equity stakes or assets.
The Group thus expects more than 20% growth in the earnings per share between 2016 and 2020 leading to, with a 50% pay-out ratio, an increase of the dividend of 35% during the same period.