BNP Paribas posted a 33-percent quarterly profit rise on Thursday as improved stock markets drove gains at securities businesses, but concerns the French bank could make a costly acquisition weighed on its shares.
The Paris-based bank, the eurozone's biggest bank by market value, also raised its dividend, forecast higher 2004 results and said it would focus on expansion this year, although BNP's chief executive pointed to targeted deals, not blockbusters.
BNP's acquisition plans, particularly in the western United States where it has a retail bank, have been the subject of speculation since it lost out to Credit Agricole in a push to buy smaller French bank Credit Lyonnais over a year ago.
BNP earned 927 million euros ($1.16 billion) in the fourth quarter last year versus 696 million euros a year earlier.
This figure was boosted by a lower-than-expected tax rate, Dresdner Kleinwort Wasserstein analysts said in a note.
A Reuters poll of 20 analysts on average had forecast BNP would earn 838 million euros.
Revenues rose nearly five percent to 4.391 billion euros, while gross operating profits, or revenues minus costs, rose 13 percent to 1.626 billion euros. Both these figures fell just short of forecasts.
Profit before tax at the corporate and investment bank rose to 422 million euros from 235 million a year earlier, helped by lower costs and higher trading revenues, while retail bank profits rose to 675 million euros from 610 million euros.
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