On Friday 2 February 2024, the Board of Directors of BNP Paribas published the Group's results for the year 2023, including those of Commercial & Personal Banking in Luxembourg (CPBL).
Jean-Laurent Bonnafé, Chief Executive Officer, stated: “BNP Paribas achieved a very good performance in 2023 that reflects the solidity of our diversified model, the efficiency of our platforms, and the Group’s ability to continue its development in order to address the needs of its individual, corporate and institutional clients. On the strength of our teams’ mobilisation and expertise and our technological advances, BNP Paribas will continue to grow and gain market share.”
Commercial & Personal Banking in Luxembourg (CPBL)
Over 2023, loans outstanding increased by 1.3% across all customer segments. Deposits fell by 4.2%.
Revenues rose significantly by 24.7% to reach €592 million. Net interest revenues were up very sharply by 31.6%, thanks to margins on deposits that held up well, particularly for business customers, and the increase in outstanding loans. Commissions were down 1.7% compared to a high base in 2022.
At €302 million, operating expenses increased by 9.8%. The jaws effect was positive (up 14.9 points).
Gross operating income rose very sharply, by 45.3%, to €290 million.
At €8 million, the cost of risk was at a very low level.
After allocating a third of Private Banking's profit to the Wealth Management business (IPS division), CPBL thus generated pre-tax income of €281 million, up very sharply by 30.3%.
In the fourth quarter of 2023, at €150 million, revenues rose strongly, by 15.3% compared to the fourth quarter of 2022. Net interest revenues increased sharply by 19.2%, in line with the well-maintained margins on deposits, particularly with corporate clients. Fees decreased by 1.4%. Operating expenses, at €74 million, were up 10.2%. Gross operating income, at €76 million, rose sharply, by 20.6%.
At €2 million, the cost of risk was at a very low level. After allocating a third of Private Banking's profit to the Wealth Management business (IPS division), CPBL achieved a pre-tax income of €78 million, a strong growth of 10.6%.
