BNP profits hit by write-downs

French bank BNP Paribas has seen its second quarter profit fall by 34% as a result of write-downs related to the global credit crunch.

The firm said net income for the three months to the end of June dropped to 1.5bn euros ($2.3bn; £1.2bn), from 2.3bn euros a year earlier.

Profits at its investment banking arm more than halved to 523m euros after it took an asset write-down of 542m euros.

The bank has not been as badly affected by the credit problems as its peers.

Despite the continued problems in the financial markets, BNP Paribas chief executive Baudouin Prot said that the bank was well capitalised and would not need to tap its shareholders for extra cash.

The results come after its smaller rival Societe Generale reported a second-quarter profit fall of 63% to 644m euros.