FRANCE - BNP Paribas' Asset Management and Services (AMS) posted a return of 12.9% to e882m (US$1,085m) in the second quarter of 2005, with each of AMS's core business lines experiencing "buoyant income growth".
The firm reported increases of 8.6% for wealth & asset management, 15.2% for securities services, and 19.6% for insurance.
The quarterly report from BNP Paribas said that the wealth and asset management business specifically grew its share of assets associated with highly technical management services such as alternative, structured or tracker funds by e5.8bn.
Commenting on the results, chair of the board of directors Michel Pébereau (pictured), said that the asset management part of BNP’s business confirmed its role as “a driving force in the group’s growth”.
Pébereau said: “In this growth dynamic, operating expenses and depreciation grew at a pace close to that of NBI: +12.8% and gross operating income, e326m, rose 13.2%. The core business posted this quarter one-off non-operating income, such that pre-tax income, e375m, soared 28.9%.
“This substantial growth in the core businesses is the combined result of organic growth and growth driven by acquisitions.
“This sharp rise is due notably to a record net new inflows during the first half of the year: e17bn, close to double the amount recorded in the first half 2004, an annualised inflow rate of close to 10% of assets under management.”
For the first half of the year as a whole, AMS’s return on equity also rose by an impressive 36%.
As at 30 June 2005, total assets under management by BNP’s business lines grouped together totalled e385.5bn, or growth of e42.4bn compared to the end of last year.
Additionally, the businesses operating in emerging and overseas markets posted sharply higher quarterly pre-tax income (40.8% at e69m).
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