BNP Paribas share price slips to key support as bank earnings start

October 13, 2023 05:30 AM PDT | By Invezz

US bank earnings season starts

The biggest driver for US and European bank stocks like BNP Paribas is the start of the earnings season. While BNP is a French bank, investors use American earnings as a barometer of its performance.

Citigroup published strong results as its revenue jumped to $20.14 billion in Q3. Similarly, JP Morgan, the biggest bank in the US, said that its revenue soared to $40.6 billion while its profit jumped to $13.5 billion. Wells Fargo also published strong results as its revenue jumped to over $20 billion.

Watch here: https://www.youtube.com/embed/PkQaq97RQgI?feature=oembed

The key denominator for these results is interest rates. They both noted that higher interest rates had helped them boost their earnings. Rates in the US and other developed countries have soared to the highest level in more than two decades.

These results mean that BNP Paribas will likely publish strong results on October 26th. Like its American counterparts, BNP Paribas benefits from higher rates in Europe, where it does most of its business.

The most recent results showed that its net income rose by 16.4% as its revenue rose by 3.3%. Its distributable net income jumped to €.26 billion. As a result, the company launched the second €2.5 billion share buyback program.

I believe that BNP Paribas is a good investment for income investors. It is a safe bank with a dividend yield of 6.7%. Also, it will continue benefiting as rates remain high for a while.

BNP Paribas share price forecast

The daily chart shows that the BNP Paribas share price has been in an uptrend in the past few months. Along the way, the stock has formed an ascending channel shown in black. It dropped to the lower side of the channel as US banks started their earnings season.

The stock also moved slightly below the 50-day moving average while the Relative Strength Index (RSI) dropped below the neutral point of 50. Therefore, the outlook for the stock is neutral with a bullish bias. It will likely bounce back and retest the upper side of the channel at €62.71. This view will be invalidated if it moves below the lower side of the channel.

The post BNP Paribas share price slips to key support as bank earnings start appeared first on Invezz

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.