French largest bank BNP Paribas posts $1.72 billion losses

On Tuesday France's largest bank by market value BNP Paribas confirmed though in fourth quarter it swung to the loss, it still intends to pay a dividend: the bank will pay a €1 dividend per share. 

BNP Paribas posted a net loss of €1.37 billion (or $1.72 billion), compared with €1.01 billion net profit in the year-earlier period. Its fourth-quarter losses were related to the demise of Lehman Brothers, the Madoff fraud, higher provisions and falling equity markets. For the full year, BNP Paribas posted €3.02 billion in net profit compared with €7.82 billion in 2007.

The bank also faced serious trouble in the Ukraine, particularly hit by the crisis: BNP Paribas took a €272 million provision and will close 100 branches there.

BNP Paribas still has an agreement to take over several assets of the Belgian-Dutch financial services group Fortis NV which will expire next week. The planned takeover hangs by a thread after Fortis holders last week successfully opposed the transaction. 
On Wednesday BNP Paribas shares closed at €24.62: they have lost more than 60% in value in recent months, on persisting concerns over its financial ratios. BNP Paribas said that at the end of December its Tier 1 ratio was 7.8% and could be lifted to 8.4% after it receives a second tranche of French government support that offered to the domestic banking sector.