PARIS, Feb 5 (Reuters) - BNP Paribas, France’s largest bank, said on Thursday that rising taxes and new regulations would impact earnings next year by 500 million euros and said it would increase cost cuts to cover growing compliance and control expenses.
The bank’s profit was almost entirely wiped out last year by a nearly $9 billion fine to settle a U.S. sanctions violations case, posting 2014 net income of 157 million euros ($177.9 million).
For the fourth quarter alone, the bank posted net income of 1.3 billion euros, up sharply from the 110 million booked a year earlier, which was already hit by a provision for the U.S. case.
Revenue rose 7.2 percent in the final three months of 2014 to 10.15 billion euros, while loan provisions slipped marginally to 1.0 billion euros.
Banking sector-specific taxes would reach 900 million euros next year, knocking half a billion euros from net income, the bank said in a statement.
Meanwhile, additional compliance and regulatory costs would reach 250 million euros more than previously planned next year and would be largely absorbed by a further 230 million euros in cost cuts. ($1 = 0.8827 euros) (Reporting by Leigh Thomas and Matthias Blamont; Editing by James Regan)