BNP Paribas: very good overall performance over 9 months 2014
The Group delivered an overall very good performance thanks to its diversified business and geographic mix.
The Group delivered an overall very good performance thanks to its diversified business and geographic mix. There was a good sales and marketing drive, confirming the loyalty of institutional, corporate and individual clients. The Group closed two bolt-on acquisition deals this quarter with the buyout of the 50% stake that it did not own in LaSer and the acquisition of BGZ in Poland.
Revenues totalled 9,537 million euros, up 3.9% compared to the third quarter 2013. One-off items this quarter totalled -197 million euros (-138 million euros in the third quarter 2013) corresponding to Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA). Excluding these one-off items and at constant scope and exchange rates, revenues were up 2.8%.
Revenues grew in all the operating divisions, driven in particular by the specialised businesses, international retail and Fixed Income. They rose by 2.6% compared to the third quarter 2013 and were up 2.8% at Retail Banking, 5.2% at Investment Solutions and 2.9% at Corporate and Investment Banking.
Operating expenses, at 6,623 million euros, were up by 3.8%. They include the one-off 148 million euro impact of Simple & Efficient transformation costs (145 million euros in the third quarter 2013).
Operating expenses of the operating divisions were up 2.6%: the increase related to continued investments in business development plans was limited thanks to the impact of Simple & Efficient. Operating expenses were up 1.3% at Retail Banking, 4.3% at Investment Solutions and 4.8% at CIB.
Gross operating income was up 4.2% over the period at 2,914 million euros. It rose by 2.5% for the operating divisions.
The Group’s cost of risk was down 9.2% this quarter, at 754 million euros (47 basis points of outstanding customer loans), reflecting the Group’s good risk control.
Pre-tax income thus came to 2,308 million euros (2,120 million in the third quarter 2013), up 8.9%.
Net income attributable to equity holders was 1,502 million euros (1,358 million euros in the third quarter 2013). Excluding one-off items, it was 1,730 million euros, up 12.5% compared to the same period a year earlier. 2,5%.