BNP Paribas, third quarter growth thanks to investment banking

BNP Paribas third quarter growth thanks to investment banking

(Finance) – BNP Paribasa French banking giant, has registered revenues up 2.7% in third quarter 11,941 million euros in 2024, thanks to the diversified and integrated business model; excellent performances of Corporate & Institutional Banking (CIB) with a +9% and of Investment & Protection Services (IPS) with a +4.9%, while Commercial, Personal Banking & Services (CPBS recorded a -2.6% and is stable (-0.1%) net of the intermediation margin linked to the sales of used vehicles in Arval L’.Group net profit was equal to 2,868 million euros, up by 5.9%.

The intermediation margin of Corporate & Institutional Banking (CIB) is growing significantly (+9.0%/3Q23) thanks to the combined effect of the excellent performances of the three business lines. In particular, Global Banking (+5.9%/3Q23) is driven by Capital Markets activities in the EMEA area (+12.4%8/3Q23) and Advisory in the EMEA area, as well as by Transaction Banking activities in the Americas and APAC. Global Markets (+12.4%/3Q23) benefits from significant growth in Equity & Prime Services businesses (+13.2%/3Q23) and FICC businesses (+11.8%/3Q23). Finally, Securities Services (+6.6%/3Q23) grew, supported by net interest margin and deposit growth.

“These excellent results are the result of the commercial performance of our operating divisions and demonstrate our Group’s ability to grow, while maintaining rigorous risk and resource management – commented the CEO Jean-Laurent Bonnafé – The third quarter, in particular, illustrates CIB’s ability to gain market share and the good commercial dynamics of our IPS division, particularly in Insurance and Asset Management. Our commercial banks should gradually benefit from the favorable change in the interest rate environment. On this basis, we confirm our trajectory for 2024 and remain focused on pursuing our long-term development, in particular with the planned acquisition of AXA IM, a major initiative that strategically repositions IPS within the Group.”

BNP Paribas confirms its trajectory for 2024: revenues increasing by more than 2% compared to 2023 revenues (46.9 billion euros), positive jaws effect, cost of risk lower than 40 bps and Group net profit higher than 2023 distributable net profit (11, 2 billion euros).

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