BNP Paribas, France’s biggest bank, reported on Thursday an unexpected fall in profits of 26 per cent in 2013, after setting aside $1.1 billion to pay for a possible breach of US sanctions.
Full-year net income fell to 4.8 billion euros, from 6.5 billion euros in 2012.
Fourth-quarter profits were down 76 per cent over the year to 127 million euros.
Chief executive Jean-Laurent Bonnafe said in a statement the results showed “good operating resilience in a lacklustre economic environment in Europe.” The 1.1-billion-dollar provision related to the “retrospective review of US dollar payments involving parties subject to US economic sanctions,” the bank explained.
BNP Paribas is one of several banks that have held discussions with US regulators about payments to countries, people or entities that may have breached US sanctions.
British bank Standard Chartered PLC paid $ 327 million in 2012 to settle allegations it violated US sanctions on transactions with Iran, Libya and other countries.
