FRANCE - BNP Paribas Group, Frances biggest bank, posted a net income of just over E1bn for the second quarter, a drop of 13% on the corresponding period last year.
The group cited a “deep crisis” in equity and corporate debt markets as it registered net banking income of E4.1bn, down 5.5% on Q2 2001.
But the group ruled out job cuts, although there will be freeze on hiring in capital markets, said spokeswoman. BNP Paribas was buoyed by robust results in it retails banking operation. Profits here accounted for just under 40% of total pre-tax profits at E2.4bn.
Overall operating expenses and depreciation rose by 0.7% to E2.7bn, and gross operating income fell 15.6% to E1.4bn.
Michel Pébereau, BNP Paribas’ chairman and chief executive officer said: “As I feared the first half of the year 2002 was marked by an unfavourable and unpredictable economic and stock market environment. Our group suffered the consequences of this, especially in June. Erratic and sharp swings in the stock markets in July give no reason to anticipate a change in the situation for months to come.”
Asset management and services’ Q2 net banking income fell 7.0% compared to the second quarter 2001. In total, operating expenses and depreciation rose 9.8% compared to Q2 2001.
Gross operating income fell 26.8% at E202m and pre-tax income stood at E191m, down 24.5% compared to the record levels of Q2 2001. Over 1H, the cost/income ratio was 61.6%, a “very competitive” figure for such business activities, said the group.
Again during 1H the unit attracted E7.3bn in new money, in line with targets, but total group assets under management fell to E263bn due to a decline in values. The margin on assets under management remained at its 2001 level of 64 basis points.
Pébereau added: “In an environment that weights on revenues and provisions for banking and financial services business world-wide, the employees of BNP Paribas will continue to strive to control expenses and to manage risks so as to maintain the group’s level of competitiveness.”
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers
The Pension Protection Fund (PPF) is consulting on proposals to charge a "risk reflective" levy for commercial defined benefit (DB) consolidation vehicles.