BNP Paribas SA, France's largest bank, posted a 21 percent drop in first-quarter profit, a smaller decline than analysts estimated, as a rebound at the investment bank cushioned a surge in loan losses.

BNP Paribas rose as much as 9 percent in Paris trading after the company reported net income of 1.56 billion euros ($2.08 billion), exceeding the 784 million-euro median estimate of 11 analysts surveyed by Bloomberg.

The investment banking division, along with competitors Credit Suisse Group AG and Deutsche Bank AG, profited from a thaw in credit markets, which froze after the collapse of Lehman Brothers Holdings Inc. Increased profit at the securities unit partly offset a tripling in provisions for bad loans.