BNPP’s VAR sinks on prop trading exit, calmer markets
Risk of loss down 17% quarter-on-quarter
Trading risk at BNP Paribas fell sharply in Q2, to its lowest point since end-2017, following the shuttering of its proprietary trading unit.
Average value-at-risk over the quarter was €19 million ($21 million), down 17% on Q1, and 21% on a year ago.
The bank also reported no VAR breaches for the second consecutive quarter, meaning on no one day did trading losses exceed its modelled estimates.
BNP Paribas stated the reduced risk of loss was because of the wind-down of Opera Trading
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