The French lender intends to buy back more than 1 billion euros worth of shares after posting an earnings rise.

BNP Paribas reported a forecast-beating jump in quarterly earnings thanks to a surge in trading activity, boosting the French bank's struggling stock price as it pushes ahead with cost cuts to improve profitability.

Shares of BNP Paribas surged after the French bank posted strong fourth-quarter results, with net income up 15.7% to €2.32bn and a dividend hike. UBS fell sharply as earnings missed estimates, with CEO Sergio Ermotti warning of rising Swiss capital requirements.

Profit rose in the fourth quarter compared to the same period of the previous year for French banking giant BNP Paribas. BNP Paribas reported on Tuesday that its fourth-quarter net income, group share,

BNP Paribas CFO Lars Machenil discusses the performance of the lender's investment banking unit and at its commercial and retail arm, which rebounded in the fourth quarter. He also discusses the outlook for consolidation in the industry.