Stock Movers BNP Paribas Falls, HSBC Gains, Novartis Down
Oct 28, 2025
Chloe Melle, a Bloomberg reporter specializing in European banking and pharma, shares her insights on recent market shifts. BNP Paribas faces challenges with loan-loss provisions climbing to €905 million due to souring debt. Meanwhile, HSBC raises its profit outlook despite a hefty $1.1 billion hit from the Madoff scandal. Novartis, on the other hand, struggles with its slowest profit growth in two years, contending with generic competition and planning for a $12 billion deal with Avidity as a long-term strategy.
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BNP Faces Credit And Legal Pressures
- BNP Paribas's trading unit suffered a credit hit that overshadowed strong equities trading in Q3.
- Rising loan-loss provisions and legal and political challenges make BNP the weakest performer among large European banks.
HSBC Raises Outlook Amid Lingering Headwinds
- HSBC raised its profitability outlook despite a Q3 profit decline driven by a large litigation provision.
- Investors appear to trust CEO George Leddy's overhaul despite concerns about rates, loan growth, CRE impairments and Madoff litigation.
Novartis Sees Slowing Profit Growth
- Novartis reported the slowest quarterly profit growth in nearly two years as key drugs faced increasing U.S. generic competition.
- The company plans acquisitions and R&D, including a $12 billion Avidity deal, but expects worse pressure in Q4.