On 28 October 2021, the Board of Directors of BNP Paribas examined the Group’s results for the third quarter of the year.

At €11.4 billion, overall revenues for BNP Paribas were up by 4.7% compared to the third quarter of 2020 and by 4.6% compared to the third quarter in 2019, driven by very good performances in Domestic Markets and Wealth & Asset Management and strong revenues at CIB, including growth in all three of its businesses.

In the operating divisions, revenues were up by 3.0% compared to the third quarter in 2020. Domestic Markets revenues rose very sharply, by 6.3% over one year, driven both by a solid performance in the networks and by strong growth in the specialised businesses. Revenues in International Financial Services decreased by 3.0% at historical scope and exchange rates and by 1.0% at constant scope and exchange rates. The strong increase in revenues in the asset-gathering businesses was offset by a less favourable context in the international retail networks and a lower contribution in Insurance and Personal Finance. CIB achieved a high level of performance, with revenues up by 6.4% compared to the third quarter of 2020 (up 4.1% at constant scope and exchange rates) and by 24.9% compared to the third quarter of 2019.

Group operating expenses, at €7.4 billion, increased by 3.8% compared to the third quarter of 2020, due to investments and business development, but decreased by 0.1% compared to the third quarter of 2019. Operating expenses included the exceptional impact of restructuring and adaptation costs (€20 million) and IT reinforcement costs (€42 million) for a total of €62 million (compared to €106 million in the third quarter of 2020.

In the operating divisions, operating expenses were up by 3.7% compared to the third quarter of 2020. They rose by 2.0% in Domestic Markets , in connection with the growth in the specialised businesses and good cost control in the networks. Operating expenses increased by 3.5% in International Financial Services, related to the support for growth in the asset-gathering businesses and targeted initiatives. Operating expenses in CIB were up by 5.9% compared to the third quarter of 2020, due to investments and support for business development. 

The Group’s gross operating income thus came to €3.9 billion, a 6.4% increase compared to the third quarter in 2020 and a 14.7% increase compared to the third quarter of 2019. 

Retail banking & services: Domestic Markets
 
Domestic Markets’ quarterly results, driven by increased activity were deemed very good. Loans outstanding increased by 3.0% compared to the third quarter in 2020 and were up in all businesses, with a good increase in individual and corporate loans. Deposits rose by 6.4% compared to the third quarter of 2020, driven by the effects of the public health crisis on customer behaviour. Financial savings increased strongly, as did off-balance sheet savings (up 14.4% compared to 30 September 2020). Private Banking achieved good net asset inflows of close to €1.8 billion. 

At €4.1 billion, revenues (including 100% of Private Banking in France, excluding PEL / CEL effects), Italy, Belgium and Luxembourg) rose by 6.3% compared to the third quarter of 2020. Revenue growth in the networks (up 5.1%) was very good on the whole, driven by the sharp rise in fees and a good performance by the specialised subsidiaries, despite the impact of low interest rates. Growth continued in the specialised businesses, with Arval, Leasing Solutions and Nickel up strongly.

Operating expenses, at €2.6 billion, were up by 2.0% compared to the third quarter of 2020, in support of business development. They increased by 0.8% in the networks, due to cost-savings measures, and by 7.7% in the specialised businesses in connection with growth. 

Gross operating income, at €1.5 billion, rose by 14.6% compared to the third quarter of 2020.

The cost of risk was low, at €343 million (compared to €353 million in the third quarter of 2020). 

After allocating one third of Private Banking’s net income to Wealth Management (International Financial Services division), Domestic Markets achieved a pre-tax income  of €1.2 billion, up by 27.4% compared to the third quarter of 2020. 

First nine months

In the first nine months of 2021, Domestic Markets' revenues (at €12.1 billion) were up by 5.6% compared to the first nine months of 2020. They rose in the networks, driven by the increase in fees, financial fees in particular, growth in loan activity, and the strong contribution by specialised subsidiaries, offset partly by the impact of the low-interest-rate environment. Revenues rose sharply in the specialised businesses, with a very strong increase at Arval.
 
Operating expenses increased by 1.7% compared to the first nine months of 2020, to €8.09 billion. They were almost unchanged in the networks and up in the specialised businesses, in connection with their growth. Gross operating income thus came to €4.05 billion, up by 14.3% compared to the first nine months of 2020.
 
The cost of risk improved by €56 million compared to the first nine months of 2020, to €942 million.
 
After allocating one third of Private Banking’s net income to Wealth Management, Domestic Markets achieved pre-tax income of €2.99 billion in the first nine months of 2021, up by 25.8% compared to the same period the previous year.
 
Commenting on these results, Chief Executive Officer Jean-Laurent Bonnafé, stated: “BNP Paribas’ results are solid and confirm the potential for growth beyond the rebound that has already occurred. On the strength of its distinctive model, BNP Paribas continues to accelerate the development of its activities and to invest at the service of clients and the economy".