On Thursday 4 February 2021, the Board of Directors of BNP Paribas examined the Group’s results for the fourth quarter of 2020 and endorsed the 2020 financial statements.

At €44.275 million, overall revenues for BNP Paribas were almost stable (down 0.7%) at historical scope and exchange rates and were up by 1.3% at constant scope and exchange rates compared to 2019.

In the operating divisions, revenues were up slightly at historical scope and exchange rates (up 0.2%) and increased more significantly (up 2.0%) at constant scope and exchange rates. They were down by 2.1% in Domestic Markets (which include Private Banking in France (excluding PEL/CEL effects), Italy, Belgium and Luxembourg), as the very good performance of the specialised businesses (in particular Personal Investors) only partially offset the impact on the networks of the persistently low-interest-rate environment and the health crisis. 

The operating expenses of the operating divisions were down by 1.0% compared to 2019. They decreased by 1.6% at Domestic Markets, with a more pronounced decrease in the networks (down 2.7%), while the division’s specialised businesses were up but achieved a positive jaws effect of 4.3 points. 

Q4 2020

In the fourth quarter of 2020, revenues, at €10.827 million, were down by 4.5% compared to the fourth quarter of 2019.

In the operating divisions, they were down by 2.7%, including a decrease of 1.5% at Domestic Markets, where the impact of the persistently low-interest-rate environment and the health crisis was only partially offset by higher volumes and the continued growth of the specialised businesses.

At €7.562 million, the Group’s operating expenses were down by 5.9% compared to the fourth quarter of 2019. The operating expenses of the operating divisions were down by 3.0% over one year. They were down by 1.0% at Domestic Markets, with a more pronounced decrease in the networks (down 2.2%) and a moderate increase in the specialised businesses, in connection with their growth. 

 

Retail banking & services: Domestic Markets

For the whole of 2020, and in a context marked by the health crisis, Domestic Markets’ business provided strong support for the economy, while at the same time achieving operational efficiency gains. The division mobilised throughout the year to support customers, particularly with the implementation of state-guaranteed loans, notably in France and Italy. Loans outstanding rose by 5.4% compared to 2019, up in all businesses, with good growth in the production of loans to corporate and individual customers (in particular in mortgages). Deposits rose by 11.6% compared to 2019, due to the effects of the health crisis. Private Banking reported strong net asset inflows of €6.1 billion, including €4.9 billion of external inflows.

Lastly, the use of digital tools continued to accelerate, with more than 6.1 million active customers on mobile apps and an increase of 41.5% compared to the fourth quarter of 2019 in the number of daily connections (almost 4.6 million). The division rapidly expanded its digital offering, with increases of 27% in accounts opened at Nickel and 30% in customer numbers in the electronic portfolio Lyf Pay in one year.

At €15.477 million, revenues were down by 2.1% compared to 2019: the impact of low interest rates in the networks was partly offset by higher loan volumes; the specialised businesses achieved a good performance, in particular at Personal Investors (up 36.0% compared to 2019).

At €10,568 million, operating expenses were down by 1.6% compared to 2019, with a more pronounced decline in networks (down 2.7%), mitigated by a 3.4% increase in the specialised businesses, in connection with their growth.

Gross operating income, at €4.909 million, was down by 3.2% compared to 2019, whilst the cost of risk rose to €1,456 million (from €1,021 million in 2019), due to the effect of the health crisis.

After allocating one-third of Private Banking’s net income to Wealth Management (International Financial Services division), the division’s pre-tax income came to €3.271 million, down by 13.9% compared to 2019.

In the fourth quarter of 2020, revenues, at €3.976 million, were down by 1.5% compared to the fourth quarter of 2019. The impacts of the low-interest-rate environment and the health crisis were only partially offset by higher loan volumes and growth in the specialised businesses, in particular at Personal Investors (up 39.0%). Operating expenses, at €2.610 million, were down by 1.0% compared to the fourth quarter of 2019, with a more pronounced decline in the networks (down 2.2%) and an increase in the specialised businesses, in connection with business growth. Gross operating income, at €1.366 million, was thus down by 2.5% compared to the fourth quarter of 2019. The cost of risk came to €458 million (up from €254 million in 2019), due in particular to the provisioning of performing loans. After allocating one-third of Private Banking’s net income to Wealth Management, the division’s pre-tax income came to €890 million, down by 18.6% compared to the fourth quarter of 2019.