If the continued low interest rate environment continue to weigh on the business of retail banking, BNP Paribas is catching up in market activities. The first French banking group, which opened the ball of the publication of the interim results of the sector in the Hexagon, has exceeded expectations with a solid performance. Net income in the second quarter, to 2.39 billion euros, appears in decline of 6.4% due to exceptional items such as gains from the disposal of securities Visa last year, but up from 17.2% in eliminating these non-recurring items.
BNP Paribas welcomes a “good business momentum” which allowed him to increase 2.5% net banking income (the equivalent of the revenue of the banks) of its operating divisions.
The retail banking market “domestic” (France, Belgium, Luxembourg, Italy) limits the decline of revenues to 0.3% in the second quarter to 3.9 billion euros. Thierry Laborde, the director of the centre, has shown, however, is more optimistic :
“We had a guidance [forecast] to -3% in France, what we see instead is -1% today. The turnaround in France will happen in a few quarters, this will depend on the evolution of the rate curve, ” he said during a press conference.
Market share earned
Despite a context that does little to bearer on interest rate markets, foreign exchange and raw materials, as we have seen in the results of the us banks are penalized by the decline in the trading fixed income, BNP Paribas has done better than expected in the investment banking and financing (Corporate & Institutional Banking, CIB, financial services to businesses and investors), whose revenues rose 4.6% to 3.2 billion euros. However, the activity “Global Markets” has decreased by 2.3%, due to the fall in the segment’s Fixed Income (rates, currencies, commodities) as compared to second quarter 2016 very dynamic. But the BNP has caught up on the markets of equities and derivatives as well as the services to hedge funds and pension funds.
“We have gained market share because there is no other european group that is comparable by its wealth of trades that nourishes the activity of IPC. And for the first time in our history, Exane BNP Paribas has reached number one in the rankings Extel research pan-european equities, the brokerage and the sale of shares in Europe, usually dominated by banks, anglo-saxon” welcomed Yann Gérardin, head of the IPC.
BNP Paribas took advantage of the decline of several major european banks, Barclays, Credit Suisse, Deutsche Bank (which is struggling to return to growth), and UBS, which have reduced the sail and lost ground in market activities. The context of the Brexit would allow him also to win contracts in corporate banking and in trading activities (trade finance, cash management). The bank of the rue d’antin is hoping to establish itself as the financial partner of the european leading companies of the Old continent, but also british when the country’s banks refocus on their domestic market (with the exception of HSC).
Has the Bourse of Paris, the BNP Paribas gave a little ground in the morning, in a market that is largely oriented to the downside, and then move to the green in the middle of the day (+0.4 percent).