SynopsisBNP Paribas reported a better-than-expected 33% rise in second-quarter net profit to €4.35 billion, driven by strong equity trading, a recovery in retail banking and gains from its revamped insurance partnership with Ageas.ETMarkets.comBNP Paribas reported a better-than-expected 33% rise in second-quarter net profit. French banking giant BNP Paribas reported a stronger-than-expected 33% rise in second-quarter net profit, driven by robust equity trading, a recovery in its retail banking business and gains from its revamped insurance partnership with Ageas, Reuters reported.The euro zone's largest bank by assets posted net income of 4.35 billion euros ($4.97 billion) for the three months ended June, surpassing the average analyst estimate of 4.21 billion euros compiled by the bank. Revenue rose 12% year-on-year to 14.1 billion euros, also beating market expectations, while operating expenses increased 10%.According to Reuters, BNP Paribas is the first major European investment bank to report second-quarter earnings, offering investors an early glimpse into how the sector benefited from heightened market volatility during the Iran conflict and a resurgence in mergers, acquisitions and initial public offerings.The bank's corporate and institutional banking division recorded a 13% increase in revenue, supported by a 43% surge in equity and prime services income, which reached a record level. However, fixed-income, currencies and commodities (FICC) trading revenue remained broadly unchanged, trailing the stronger growth reported by several U.S. banking peers.Reuters noted that analysts at Morgan Stanley had expected BNP's investment banking revenue to grow 7% during the quarter, compared with projected growth of 21% for UBS and 2% for Societe Generale. Meanwhile, major Wall Street lenders including JPMorgan and Bank of America reported overall investment banking revenue growth exceeding 30%.BNP Paribas also saw an improvement in its core retail banking operations. Net interest income in its French and Belgian businesses increased by around 17% from a year earlier, reflecting stronger lending profitability. In contrast, its Italian retail unit reported a nearly 5% decline in net interest income as loan revenue weakened.The stronger retail performance has supported the bank's stock, which has gained about 30% so far in 2026, outperforming the broader European banking sector.On the capital front, BNP Paribas said it achieved its target Common Equity Tier 1 (CET1) ratio of 13% by the end of June, earlier than the year-end timeline previously indicated by Chief Executive Jean-Laurent Bonnafe. The improvement was aided by the completion of a revised partnership with Belgian insurer Ageas in April, generating gains of 858 million euros.The lender also provided an update on its appeal against a U.S. court ruling related to Sudan-linked litigation. Reuters reported that BNP filed its opening brief with the U.S. Court of Appeals for the Second Circuit in May and has since received supporting amicus briefs from the U.S. and Swiss governments, academics and industry groups. The bank has not set aside any provisions related to the case.BNP Paribas reaffirmed its financial targets for 2026 and 2028 and said it plans to unveil its next strategic roadmap in February next year.The bank's cost of risk came in slightly above analyst expectations, rising more than 7% as it increased forward-looking provisions to account for geopolitical uncertainties, according to Reuters.Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless(You can now subscribe to our ETMarkets WhatsApp channel)Read More News on(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price...moreless