BNP Paribas Fourth-Quarter 2021: Preprovision Profits 10% Below Consensus Estimates

No-moat BNP Paribas reported a net attributable profit of EUR 2.3 billion for fourth-quarter 2021, 45% higher than the EUR 1.6 billion it disclosed a year earlier and 13% ahead of the EUR 2 billion expected by the consensus of analysts polled by BNP Paribas. However, the earnings beat was solely the result of loan-loss provisions coming in 47% lower than expected. BNP missed the EUR 3.7 billion preprovision consensus estimate coming in 10% lower at EUR 3.3 billion with revenue lower and costs higher than anticipated. Loan-loss provisions are unlikely to decline materially in the future, making earnings growth more challenging to achieve.