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Feb. 6, 2019, 1:08 a.m. EST

BNP cuts revenue guidance, vows to trim costs

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By Pietro Lombardi

BNP Paribas SA (BNP.FR) cut its revenue guidance and vowed to increase cost savings as fourth-quarter net profit rose.

Net profit for the period rose 1.1% on year to 1.44 billion euros ($1.64 billion), the bank said Wednesday.

France's largest listed bank by assets posted a 3.5% decline in revenue to EUR10.16 billion.

BNP updated its 2020 targets. It now sees revenue growth of 1.5% per year between 2016 and 2020, down from a previous guidance of 2.5%. It also increased its recurring cost savings target to EUR3.3 billion from 2020, up from a previous target of EUR2.7 billion. Of the additional EUR600 million, roughly EUR350 million will come from its corporate and institutional banking unit, it said.

The bank said it would propose a dividend of EUR3.02 per share, stable compared with the previous year.

The bank's core Tier 1 capital ratio--a key measure of capital strength--rose to 11.8% in December from 11.7% in September.

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