BNP profits drop 22% on exposure to Greek debt

AFP - France's biggest bank, BNP Paribas, said Wednesday its 2011 net profit tumbled 22 percent to 6.05 billion euros after setting aside 3.20 billion euros to cover its exposure to debt-stricken Greece.

BNP said its performance was also affected by financial market volatility towards the close of the year driven by concerns the eurozone debt crisis could lead to recession.

The lender said it would pay shareholders a dividend of 1.20 euros per share, unlike its peers Societe Generale and Credit Agricole which decided against any payout.

The bank said it was still able to meet the new core capital requirement of 9.0 percent set by regulators in the fallout from the global financial crisis, putting its level at 9.2 percent.

BNP added that in order to meet new banking sector regulations coming into force from the end of this year, it has reduced the size of its balance sheet which in turn improves its capital adequacy ratios.