Paris-based bank BNP Paribas posted its financial results for the third quarter of 2023 on Thursday.

The latest results from BNP Paribas show that third-quarter net income dropped by 4 per cent from a year earlier to €2.66 billion ($2.81 billion), along the lines of the €2.64 billion analyst consensus compiled by the company.

Group sales over the three-month period ending in September rose by 4 per cent to €11.58 billion euros, slightly above the €11.52 billion consensus, the firm said in a statement.

The bank also reported a 12.7 per cent return on tangible equity which aligns with its goal of achieving 12 per cent by 2025.

Jean-Laurent Bonnafé, CEO at BNP Paribas, said: “This performance reflects our long-term approach, the efficiency of our platforms, our diversification by business line, geographical region and customer profile, and our proactive and prudent risk management.”

The firm’s shares slipped on Thursday amid a wider European banking sector sell off, after weaker-than-expected French retail and consumer finance results.

While roughly in line with market expectations, BNP's mixed quarterly results did not reassure investors as banks tackle rising interest rates and an uncertain economic outlook.

BNP said that its third quarter net interest revenue, its revenue on loans minus deposit costs for French retail operations was down by 5.9 per cent from a year earlier.

Pre-tax earnings for BNP's consumer finance unit fell by 42 per cent over the period.

BNP's overall revenue from trading fell by over 9 per cent in the third quarter, as FICC sales (fixed income, currencies and commodities) fell 14.3 per cent excluding the boost from a business the bank moved from equities to FICC.