BNP Paribas reported a 9% rise in first-quarter net income to €3.2bn, driven by asset management growth and cost cuts, but its investment banking division lagged Wall Street peers. The French giant’s global markets revenue rose 2.5%, trailing Morgan Stanley’s 20%+ surge and JPMorgan’s gains. Geopolitical tensions, including the Iran war and Venezuela intervention, weakened the dollar, limiting euro gains for European lenders. Crédit Agricole, France’s second-largest bank, saw its investment bank revenue drop 4%, with fixed-income trading down 6.4%.

Both banks faced legal risks: BNP provisioned €219mn, and Crédit Agricole set aside €28mn for Middle East-related credit risks. Asset management growth offset declines, with BNP’s segment doubling revenues post-Axa Investment Managers acquisition.