BGL BNP Paribas have reported that their Ordinary General Meeting of Shareholders was held earlier today, 6 April 2023, at which their consolidated financial statements for the financial year ended 31 December 2022 were approved in accordance with international financial reporting standards (IFRS).
At €1,689.4 million, net banking income increased 4% on 2021 (€1,621.1 million), the result of strong commercial momentum in the Group’s various business areas, thanks to the teams’ firm commitment to their clients.
In 2022, the bank benefited from its diversified and integrated model around three types of clients: retail banking, private banking and corporate banking, which rely on specialised business lines (such as cash management, trade finance and asset financing).
In the Retail and Corporate Banking segments, average deposits increased by 7%, primarily driven by corporate clients. Average loans outstanding recorded 6% growth, boosted by an increase in loans to both companies and individuals.
Wealth Management assets under management rose by 1% thanks to strong inflows, partially offset by the impact of the decline in stock market indices in 2022. Average deposits rose by 2%, while average loans outstanding were down slightly by 2%.
In International Leasing, 2022 was marked by late equipment deliveries due to supply chain disruptions, as well as an increase in financing costs and competitive pressure. Building on strong momentum recorded in previous years, the business nevertheless proved resilient with volumes up 1% and an improving outlook at 2022 year-end. Average outstandings increased 4%.
Overheads totalled €854.4 million, up 4% on 2021. In an inflationary context and with regulatory pressure still on the rise, in 2022 the bank continued its investments to support its business growth and transformation as part of its GTS 2025 plan (Growth, Technology, Sustainability).
Gross operating income amounted to €835 million, up 4% versus 2021 (€802.8 million).
Cost of risk amounted to €72.5 million, down 5% on 2021. It was low compared with outstanding client loans of €38 billion.
The share of the net profits of equity affiliates (i.e. the share of net profits of subsidiaries in which the bank does not have a majority shareholding), came to €16.9 million, compared with €12.9 million in 2021.
Group consolidated net profit amounted to €408.1 million, up 4% compared with 2021 (€394.3 million).
At 31 December 2022, the balance sheet total stood at €61.9 billion, stable compared with 31 December 2021 (€62.1 billion).
High solvency maintained
The solvency ratio was 23.3% under Basel III rules, compared with 23.5% in 2021, well above the required regulatory minimum of 12%. With the Group’s share of regulatory capital amounting to €6.4 billion, BGL BNP Paribas has a solid financial structure and is well placed to support the development, transformation and innovation of all of its clients.
Continued roll-out of the 2025 Development Plan
BGL BNP Paribas has continued implementing its ambitious development and transformation plan, in keeping with the BNP Paribas Group 2022-2025 Strategic Plan. Referred to as GTS 2025 (Growth, Technology, Sustainability), the plan aims to successfully carry through the Group and BGL BNP Paribas’ transition to a new sustainable economic model.
• Growth: pursuit of sustainable growth by leveraging the Group’s position as a European leader.
• Technology: harnessing technology for continuous improvement in client/employee experience and operational efficiency.
• Sustainability: ramping up and involving all Group businesses in issues around sustainable finance.
In an effort to make the bank easier to contact, no matter what form of communication the client chooses (in-branch, phone, online), this plan seeks to digitise the entire client pathway. This also includes adapting the operating model to make it more industrial, transforming the bank’s technological base and deploying new, more agile and flexible working methods. Meanwhile, the implementation of the bank’s commitment to sustainable finance and corporate social responsibility was stepped up.
Digital innovations in 2022
In response to the changing habits of clients, who are seeking an increasingly broad range of remote services, major investments were made in 2022 to improve the customer experience. As such, thanks to its partnership with i-Hub, BGL BNP Paribas now offers a secure digital solution, integrated within Web Banking, that lets clients manage and update their personal data. An entirely free personal digital file lets clients securely store their identification documents (such as a copy of their ID card or certificate of residence, etc.).
BGL BNP Paribas also supports public innovation. As part of a project financed by the Alphonse Weicker Foundation, it teamed up with the Interdisciplinary Centre for Security, Reliability and Trust (SnT) at the University of Luxembourg to create an artificial intelligence model based on cutting-edge BERT technology. Luxembourg thus has its own open source language model, LuxemBERT, which is publicly accessible online.
Béatrice Belorgey, Chair of the Executive Committee of BGL BNP Paribas and Head of the BNP Paribas Group entities in Luxembourg, stated: “We’re supporting our clients through this uncertain economic context and helping them handle new social challenges. Our teams are deeply committed to supporting our clients – both individuals and companies – in their transition towards a more sustainable world. To do so, we rely on the wealth of the BNP Paribas Group’s resources in Luxembourg, combining a unique set of skills with a personalised day-to-day relationship. I would like to thank our employees for their contribution throughout the year, and our clients for continuing to place their trust in us.”
