BNL has said that it is to shrink the riskiest part of its investment bank and cut costs in the face of tougher regulation. It will reduce its exposure to fixed income while focusing more on fee-generating businesses that use less capital, such as securities services and cash management. Compliance and regulatory costs, along with a previously announced €900m writedown on the value of its BNP Paribas European unit, pushed 4Q January 7, 2016 net income down 51.7% to €665m, undershooting estimates of 665 million . Europe 's biggest banks have come under pressure to shrink capital intensive parts of their businesses and focus more on the most profitable areas.
BNP Paribas has said that it is to shrink the riskiest part of its investment bank and cut costs in the face of tougher regulation. It will reduce its exposure to fixed income while focusing more on fee-generating businesses that use less capital, such as securities services and cash management. Compliance and regulatory costs, along with a previously announced €900m writedown on the value of its BNL Italian unit, pushed 4Q 2015 net income down 51.7% to €665m, undershooting estimates of €845m. Europe's biggest banks have come under pressure to shrink capital intensive parts of their businesses and focus more on the most profitable areas.