Equity markets help BNP Paribas deliver solid Q3 performance
BNP Paribas delivered solid performances for Q3, rebounding compared to the third quarter 2011, helped by a positive performance in the equity markets.
Operating division revenues rose 8.4%, with a 1.3% increase from retail banking (including private banking) and 3.7% in Investment Solutions, which covers the collection, management, development, protection and administration of client savings and assets. The corporate and investment banking division, which was down in the third quarter of last year thanks to the crisis, rebounded 33.2%.
In a statement, BNP Paribas said: “BNP Paribas posted this quarter, in a challenging environment, €1,324m in net income, up sharply compared to what it was in the third quarter 2011 (€541m), which was impacted by the sovereign debt crisis.”
Assets in the BNP Paribas Investment Solutions division were up 5.2% to €886bn (€842bn as at 31 December 2011), driven primarily by a positive performance of the equity markets.
The first nine months of the year saw net asset inflows of €900m. BNP Paribas said this would have been higher but for “a client’s (fund manager) decision in the third quarter to insource a distribution contract. Excluding this effect, net asset inflows were €12.2bn for the first nine months of the year.”
Net asset inflows were positive in all the business units in the first nine months of the year, except for Asset Management, BNP Paribas said. There were “good asset inflows in Wealth Management, in particular in the domestic markets and in Asia; good contributions from Insurance, especially in Asia (Taiwan, South Korea) and from Personal Investors, especially in Germany. Asset Management’s asset inflows into money market and bond funds were more than offset by asset outflows in the other asset classes.”
As at 30 September 2012, Investment Solutions’ assets under management break down as follows: Asset Management, €408bn; Wealth Management, €265bn; Insurance, €165bn; Personal Investors, €35bn; and Real Estate Services, €13bn.
In the third quarter 2012, Investment Solutions’ revenues were up 3.7%, totaling €1.5bn, compared to the third quarter 2011. Wealth and Asset Management revenues were down 4.5%, due to the decrease in outstandings in Asset Management. Insurance revenues jumped 17.6% (+10.5% at constant scope and exchange rates) due to good growth in protection insurance and savings outside of France. Revenues from Securities Services rose 3.7% compared to the third quarter 2011, driven by increased assets under custody and under administration.
In domestic markets retail banking, deposits grew 5.3% yoy, reaching €279bn, thanks to a “good sales and marketing drive”. BNP Paribas was able to develop the product offerings available across different domestic markets, and launched the “Priority” service for individual customers across the four networks. BNP Paribas Priority is a tailored financial advisory service currently with close to 200,000 customers.