BNP to book 5.8bn euro charge

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BNPCEOJean-Laurent Bonnafe Reuters. BNP Paribas chief executive Jean-Laurent Bonnafe.

Paris - France's biggest listed bank BNP Paribas expects to book a charge of 5.8 billion euros ($7.91 billion) in the second quarter related to its settlement of a US criminal charge over sanctions violations.

BNP agreed to pay a total of $8.97 billion in relation to violations of certain US laws and regulations regarding economic sanctions against certain countries and related record keeping.

“We deeply regret the past misconduct that led to this settlement,” chief executive Laurent Bonnafe was quoted as saying in the statement.

“Apart from the impact of the fine, BNP Paribas will once again post solid results this quarter...The group remains focused on implementing its 2014-2016 business development plan. We confirm our ambition to meet the targets of this plan announced in March this year”.

The statement also said that the bank expects its core equity tier one ratio at around 10 percent as of June 30, taking into account an intention to adapt its dividend for 2014 to a level equal to that of 2013 of 1.50 euros per share. - Reuters

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