Rising taxes, new regulations to impact BNP earnings next year

Paris

BNP Paribas, France's largest bank, said on Thursday that rising taxes and new regulations would impact earnings next year by 500 million euros (S$769 million) and unveiled increased cost cuts to cover growing compliance and control expenses.

The mounting burden would add to pressures from ultra-low interest rates crimping its margins and a weaker-than-expected eurozone economic recovery, BNP said. This painted a sharply more pessimistic picture than the assumptions underlying the bank's 2014-2016 strategic plan, which targets a return on equity of at least 10 per cent next year.