On Tuesday 4 February 2020, the Board of Directors of BNP Paribas examined the Group’s results for the fourth quarter of 2019.
At €44.597 million, overall revenues for BNP Paribas were up 4.9% compared to 2018, with all divisions experiencing growth.
Retail banking & services: Domestic Markets
Domestic market revenues, which include Private Banking in France (excluding PEL/CEL effects), Italy, Belgium and Luxembourg, in the retail banking and services division, rose 0.8% (compared to 2018) to €15.814 million. Growth in loan volumes and the strong increase in the specialised businesses were almost entirely offset by the low interest rate environment in the networks.
Meanwhile, operating expenses rose 0.3% (compared to 2018) to €10.741 million. They were down in the networks (-0.5%) but up in the specialised businesses division as regards to business growth (with a positive jaws effect). The jaws effect for the operating division was positive (+0.5%). Gross operating income was up 1.9%, at €5.073 million, compared to 2018.
Other Domestic Markets business units
For the whole of 2019, all the specialised businesses of Domestic Markets showed a very good drive. Luxembourg Retail Banking's (LRB) outstanding loans rose by 8.6% compared to 2018, with good growth in mortgages and corporate loans, whilst deposits were up 11.5%. At €3.184 million, the revenues of the five businesses (Arval, Leasing Solutions, Personal Investors, Nickel and Luxembourg Retail Banking) were up 6.6% compared to 2018 in aggregate. Operating expenses also rose by 4.5% to €1.859 million; up with the effect of business development contained by cost saving measures and operating efficiency gains. The jaws effect was positive by 2.1% and the cost of risk totalled €146 million (compared to €123 million in 2018). Thus, the pre-tax income of these five businesses, after allocating one-third of Luxembourg Private Banking’s net income to the Wealth Management business (International Financial Services division), rose significantly by 9.5% compared to 2018, at €1.165 million, reflecting the good drive of the businesses.
In the fourth quarter of 2019, revenues of the five businesses, at €834 million, were up 8.2% compared to the fourth quarter of 2018 due to good business development. Operating expenses rose by 6.6% to €473 million, in line with business growth and generating a positive 1.6% jaws effect. The cost of risk was up €13 million compared to €42 million in the fourth quarter of 2018. Thus, the pre-tax income of these five business units, after allocating one-third of Luxembourg Private Banking’s net income to the Wealth Management business (International Financial Services division), rose sharply to €318 million (+9.9% compared to the fourth quarter of 2018).