On Monday 2 November 2020, the Board of Directors of BNP Paribas examined the Group’s results for the third quarter of 2020.
At €10.885 million, overall revenues for BNP Paribas were stable (-0.1%) at historical scope and exchange rates and were up by 2.1% at constant scope and exchange rates compared to the third quarter of 2019.
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, fell 0.6% (compared to the third quarter of 2019) to €3.867 million. This evolution reflected a very good performance in the specialised businesses, particularly Personal Investors (up 26.3%), along with good revenue resilience in the networks despite the low-interest-rate impact.
At €2.543 million, operating expenses were also down 2.4%, with a more pronounced decline in the networks (down 3.6%) and a slight increase in specialised businesses (up 2.7%) in connection with their growth. Gross operating income was up by 3.0% to €1.324 million compared to the third quarter of 2019.
The cost of risk came to €353 million (up from €245 million in the third quarter 2019).
After allocating one-third of Private Banking’s net income to Wealth Management business (International Financial Services division), the division’s pre-tax income was €922 million, down by 5.4% compared to the third quarter of 2019.
Other Domestic Markets businesses (Arval, Leasing Solutions, Personal Investors, Nickel and Luxembourg Retail Banking)
Business activity performed very well in Domestic Markets’ specialised businesses. Luxembourg Retail Banking (LRB) returned to solid momentum in lending activities, to both individual and corporate clients. Outstanding loans rose by 6.5% compared to the third quarter of 2019, with good growth in mortgage and corporate loans. Deposits rose by 3.4%, driven by inflows from individual customers.
Revenues of the five businesses amounted to €850 million, up 5.2% compared to the third quarter 2019, as a result of the good development in activity in all businesses, due, once again this quarter, to the very strong growth in Personal Investors revenues.
Operating expenses rose by 2.7% compared to the third quarter of 2019, to €469 million, driven by stronger activity and contained by cost-saving measures.
The cost of risk amounted to €66 million (compared to €41 million in the third quarter of 2019).
As such, the pre-tax income of the five businesses, after allocating one-third of Luxembourg Private Banking’s net income to Wealth Management business (International Financial Services division), came to €311 million, up 1.7% compared to the third quarter of 2019.
For the first nine months of 2020, revenues of the five businesses were up on the whole by 7.4% (to €2,525 million) compared to the same period in 2019, with a very good level of activity in all business lines. Operating expenses rose by 3.0% (to €1,429 million) compared to the first nine months of 2019 due to business development, but remained contained by cost-saving measures. The cost of risk amounted to €144 million (compared to €104 million in the first nine months of 2019). Thus, the pre-tax income of the five businesses, after allocating one-third of Luxembourg Private Banking’s net income to Wealth Management business (International Financial Services division), rose by 10.7% to €939 million compared to the first nine months of 2019.
