ROBUST ORGANIC GROWTH…
• REVENUES: €8,214mn, +13.4%/2Q06
(+13.6% at constant scope and exchange rates)
– French Retail Banking (excluding PEL/CEL): +3.5%/2Q06
– BNL bc: +7.4%/2Q06
– International Retail Financial Services: +9.4%/2Q06
– Asset Management and Services: +21.9%/2Q06
– Corporate and Investment Banking: +24.0%/2Q06
• NET INCOME, GROUP SHARE: €2,282mn, + 20.0%/2Q06
… RESULT OF THE STRATEGY TO INTERNATIONALISE AND DEVELOP INNOVATION
• 56% OF REVENUES OUTSIDE FRANCE
• A EUROPEAN LEADER:
– Retail Banking: Two domestic markets with the successful integration of BNL and a Pan-European presence in Retail Financial Services: Cetelem No. 1 in Consumer Lending in Continental Europe
– Asset Management and Services: No. 1 in Securities Custody Services, Online Brokerage and Savings Services and No. 2 in Corporate Real Estate Services in Europe
– CIB: A European Powerhouse with a global reach in Derivatives and Specialized Financing; No. 2 in Europe for Pre-Tax income in 2006, No.2 worldwide for Equity Derivatives
SHARP RISE IN FIRST HALF PROFITABILITY
• First half EPS: €5.22 (+17.9%)
• Annualised ROE after tax: 23.6% (+1.4 pts)
The Board of Directors of BNP Paribas met on 31 July 2007. It was chaired by Michel Pébereau and it examined the group’s second quarter results and the first half financial statements.
ROBUST ORGANIC GROWTH
In the second quarter the revenues of BNP Paribas rose sharply (+13.4%) to €8,214mn. Operating expenses (€4,848mn) rose 13.1%. At constant scope and exchange rates and excluding BNL’s restructuring costs, revenues grew 13.6% and operating expenses 10.5%, producing a high marked jaws effect of 3.1 points. Gross operating income increased 13.8% (+18.1% at constant scope and exchange rates).
The cost of risk remained moderate at €258mn, or 0.21% of risk-weighted assets, compared to 0.11% in the second quarter 2006 and 0.23% in the first quarter 2007. The increase in the cost of risk compared to the second quarter 2006 is explained by €86mn less provision write-backs by CIB and the Corporate Centre, and by €15mn scope effects, notably the integration of UkrSibbank.
Thanks to the good credit quality of its customer base and a prudent risk policy, BNP Paribas is not directly impacted by the current US subprime mortgage crisis and the tensions in the LBO market. The rating agency Standard and Poor’s highlighted BNP Paribas’s sound risk management practices on 10 July when it announced that it was raising BNP Paribas’ rating to AA+. This rating puts BNP Paribas amongst the top 6 best rated big banks worldwide.
BNP Paribas’ profitability in the second quarter was up sharply with net income, group share totalling €2,282mn (+20.0%).
In the first half of the year, net income, group share amounted to €4,789mn (+22.4%), or a net half-year EPS of €5.22 (+17.9%). Annualised after-tax return on equity was 23.6%, up 1.4 points from the first half of 2006.
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