Top French banking group BNP Paribas reported on Tuesday a third quarter net profit of €1.89 billion, down 2.3 per cent from a year earlier despite the economic upheaval caused by the pandemic.

After getting through the second quarter relatively unscathed, the bank said the three months to September saw a sharp rebound in the economy, although those gains may now be in jeopardy due to a resurgence in coronavirus cases and new restrictions.

Third quarter net banking income – a broad measure of profit – came in at €10.89 billion, little changed from a year earlier and was up 2.1 per cent on a constant exchange rate basis.

The bank said it increased bad loan provisions by nearly 50 per cent to €1.2 billion but this was still some €200 million less than in the second quarter.

It increased bad loan provisions by nearly 50% to €1.2bn

BNP’s finance and investment arm saw revenues jump 17.4 per cent but its international financial services unit – which groups consumer credit, insurance and retail banking – fell 7.2 per cent.

For the nine months to September, BNP Paribas said net profit was down 13.4 per cent from a year earlier at €5.48 billion, in line with its forecast for a 15 to 20 per cent drop in the full-year 2020.