Shares in BNP Paribas fell sharply after the French bank warned it may have to pay far more than the $1.1 billion (£654 million) it has already set aside for alleged breaking of US sanctions over Iran.
“There is uncertainty with respect to the amount and the nature of penalties the US will impose,” BNP chief financial officer Lars Machenil told Reuters Insider television. “It’s not impossible that the fine is far in excess of the [$1.1 billion] provision.”
BNP reported a 5.2% rise in first-quarter after-tax profits to €1.67 billion (£1.37 billion) as it saw the benefits of its full takeover of Fortis and a drop in costs. The profit was above expectations, but the bank’s shares fell 3% to €54.25.
The news came as it was reported that BNP and Credit Suisse could face criminal charges from US and state prosecutors. The Department of Justice is working with state prosecutor in Virginia on a probe of whether Credit Suisse helped US citizens avoid tax and with Manhattan prosecutors on BNP Paribas, according to Bloomberg.
Credit Suisse has previously denied the tax allegations and did not comment today. BNP Paribas declined to comment.
