*

Net income down 2.2% in Q1, revenue 0.4% lower y/y

*

FICC trading sales down 20%; corporate banking up 6%

*

Sees 2024 net income of more than 11.2 bln euros

(Recasts, adds comparison with Deutsche Bank in paragraph 3,

context in paragraph 4; analyst quotes in paragraph 5,6)

By Mathieu Rosemain

PARIS, April 25 (Reuters) - BNP Paribas beat

first-quarter profit forecasts on Thursday as lower expenses and

a decent performance in global banking helped offset a steep

fall in its fixed income trading.

The French posted a 20% fall on revenue from fixed income,

currencies and commodities (FICC) trading, significantly

underperforming big firms on Wall Street, where trading revenue

declined by about 3% on average amid less volatile markets.

In contrast, German rival Deutsche Bank, which

also reported quarterly results on Thursday, posted a 7%

increase in fixed income and currencies trading revenue.

BNPP said in a presentation that it was more exposed to the

Europe, Middle-East and Africa (EMEA) region, where it made 60%

of its FICC sales in 2023, and where the fall in activity was

much more acute than in the United States.

"Investors may nitpick the CIB (investment bank unit)

performance with another FICC miss and 20% year-on-year decline

in the FICC revenue base," Jefferies said in a note, adding

BNPP showed good cost control.

JPMorgan saluted a "solid start of the year for revenue."

The euro zone's biggest bank by assets said group net income

fell by 2.2% to 3.10 billion euros ($3.31 billion), beating the

2.4 billion expected on average by 19 analysts polled by the

company.

Overall revenue fell 0.4% to 12.5 billion euros but topped

the 12.2 billion expected by analysts.

Provisions for underperforming loans stood at 640 million,

below the 819 million euros expected by analysts.

The bank, which disappointed investors in February by

delaying a key profitability target, struck an upbeat tone for

2024, reiterating its goal to generate full-year earnings of

more than 11.2 billion euros.

It also gave a new target for group revenue, saying it

expected it to exceed its 2023 distributable sales of 46.9

billion euros by more than 2%, and that the effects of cost

cutting flagged previously would begin from the second quarter.

However, revenue was flat or falling in most of the bank's

businesses.

FRENCH RETAIL MARKET

Commercial and Personal Banking revenue rose 1% to 4.2

billion euros - above analyst estimates - but the net interest

margins in its French business dropped sharply, BNPP said.

Its net interest income, the difference between what lenders

earn on loans and pay out for deposits, fell by 8% in France in

the first quarter as the cost of inflation hedging instruments

offset a rise in net interest income, the bank said.

The French retail market, which is typically less profitable

than in other European countries because of stringent rules on

mortgage and savings accounts, has proven difficult for BNPP.

The bank announced the abrupt departure last month of the

head of that business, Marguerite Berard, who was seen by some

industry sources as a potential successor to CEO Jean-Laurent

Bonnafe.

Investors are watching banks' net interest income closely to

see if the boost from rising interest rates, which has helped

bank profitability - and their share prices - soar, is starting

to fade.

BNPP's corporate and investment banking business revenue

fell 4%.

Its global banking revenue rose 6.1% thanks to a jump in

capital markets activities such as helping companies issue

bonds.

($1 = 0.9359 euros)