BNP struggles to dispel Sudan litigation concerns as shares drop

Core Viewpoint - BNP Paribas is facing limited exposure to Sudan-related litigation, but uncertainty remains, leading to a decline in its share price [1][2]. Group 1: Legal Proceedings and Financial Impact - A U.S. jury found BNP Paribas liable for aiding Sudan's government in committing genocide, resulting in a court order for the bank to pay $20.5 million to three plaintiffs [2]. - The bank's shares fell by 1.6% on Tuesday, continuing a downward trend as investors reacted to the implications of the court ruling [2]. - The Chief Financial Officer stated that no provisions for Sudan-related litigation will be made in the upcoming third-quarter results, as the bank expects the verdict to be overturned on appeal [3]. Group 2: Legal Framework and Analyst Opinions - The CFO indicated that Swiss law applies to this case, which may limit the bank's liability, as confirmed by the Swiss government [4]. - Analysts express ongoing doubts about the situation, noting that while the bank perceives the risk of broader claims as low, uncertainty will likely affect the share price until clarity emerges from the appeal process [5]. - The CFO characterized the case as a private legal dispute rather than a regulatory or criminal matter, emphasizing that the verdict pertains only to the three plaintiffs and does not set a precedent for future claims [6]. Group 3: Future Considerations - The CFO acknowledged the unpredictability of how many additional plaintiffs might come forward and the duration of the appeal process, which could take between a couple of months to a year [7].