On Tuesday 30 April 2019, the Board of Directors of BGL BNP Paribas examined the Group's consolidated financial statements for the first quarter of 2019.
The business of BNP Paribas was up this quarter in the three operating divisions with in particular a gradual upturn in the business of CIB. Economic growth slowed down in Europe but remained positive.
Revenues, at €11.144 million, were up by 3.2% compared to the first quarter of 2018 (+3.9% at constant scope and exchange rates). Similarly, net banking income attributable to equity holders reached €1.918 million, up 22.4% compared to the first quarter of 2018 (€2.565 million euros excluding exceptional items and the impact of IFRIC 21 Taxes, virtually stable at -0.2%).
At €8.449 million, the Group’s overheads were up by 2.3% compared to the first quarter of 2018 (+1.4% at constant scope and exchange rates) generating a positive jaws effect. These included the €206 million impact of the businesses’ transformation costs and acquisitions’ restructuring costs (€211 million in the first quarter of 2018). Similarly, the cost of risk, at €769 million euros, rose by 25%. The Group’s operating income, at €1.926 million euros also rose by 0.2% (+8% at constant scope and exchange rates). It was up by 2.5% for the operating divisions.
Within the business activity of Domestic Markets, outstanding loans rose by 4.1% compared to the first quarter of 2018 with good growth in loans both in the domestic networks and in the specialised businesses (Arval, Leasing Solutions). Deposits rose by 5.1% compared to last year 2018, up in all countries.
Domestic Markets’ specialised businesses similarly continued their strong growth: the financed fleet of Arval grew by 8.9% and the financing outstandings of Leasing Solutions were up by 7.2% compared to the first quarter of 2018. Likewise, Personal Investors reported increased assets under management (+2.4% compared to 31 March 2018) and Nickel continued its very strong growth with already over 1.2 million accounts opened since its creation (+94,000 in the first quarter of 2019 or +18% compared to the same quarter last year). For its part, the outstanding loans of Luxembourg Retail Banking (LRB) rose by 8.5% compared to the first quarter 2018, with good growth in mortgage and corporate loans. Deposits were up by 9.1% with a significant rise in sight deposits in the corporate client segment.
International Financial Services also continued to grow and reported a sustained business activity: outstanding loans were up by 9.4% compared to the first quarter of 2018 (+6.4% at constant scope and exchange rates) and the operating division reported net asset inflows of €3 billion. The assets under management of the savings and insurance businesses totalled €1.075 billion (+2.3% compared to 31 March 2018).
Similarly, the revenues of Personal Finance went up by 5.3% compared to the first quarter 2018, at €1.427 million, in connection with the rise in volumes and the positioning on products with a better risk profile. This was also the case for Assets Under Management, the results for which, as at 31 March 2019, broke down as follows: Asset Management (€421 billion), Wealth Management (€377 billion), Insurance (€248 billion) and Real Estate Services (€29 billion).
Corporate and Institutional Banking (CIB) also recorded an upturn in client activity despite a still lacklustre market context at the beginning of the quarter. The operating division’s revenues, at €3.008 million, rose by 3.5% compared to the first quarter of 2018. At €1.523 million euros, Global Markets’ revenues were similarly up by 1.7% (+3.8% excluding the effect of the creation of the new Capital Markets platform).
Finally, Corporate Centre revenues totalled €37 million compared to €159 million in the first quarter of 2018, which included the revenues from First Hawaiian Bank (€148 million) . Overheads were €400 million compared to €454 million this time last year.