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Jean-Baptiste André,
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(Boursier.com) – BNP Paribas, the first French bank to publish its third quarter results, reveals mixed accounts. If the net result of the establishment of the rue d'Antin grew by 4%, to 2.124 billion euros, slightly higher than the consensus (2.04 MdsE), it is stable except for exceptional items. The capital gain on the disposal of securities of the American subsidiary First Hawaiian Bank and the drop in taxation in the United States and Belgium explain most of this increase.
Operating income fell by 7.9% to 2,389 MdsE for a net banking income down 0.4% to 10,352 MdsE (10.55 MdsE consensus). The cost of risk, at 686 ME, increases by 2.7%.
Market activities still in difficulty
Retail banking and market activities are particularly disappointing. In the former, revenues decreased by 1.3%, while they decreased by 3.5% in corporate and investment banking. Revenues in the FICC sector (bonds, currencies and commodities) plunged 15.1% to 680 ME, falling for the sixth consecutive quarter. "The customer activity is still low on rates in Europe and the market context was unfavorable on the exchange and to a lesser extent on credit," says the BNP.
A solid balance sheet
The bank, on the other hand, maintains a solid balance sheet with a Basel 3 full equity Tier 1 ratio of 11.7%, up 25bp from the end of June.
Lastly, the Group intends to actively implement the 2020 Transformation Plan, an ambitious program of new customer experiences, digital transformation and operational efficiency. It is also continuing to strengthen its internal control and compliance system.
The title under pressure
The market, which expected better from the first French bank, sanctions the title, which drops nearly 4% to 45.7 euros at midday. "Revenue growth has clearly been more difficult than expected," said Jonathan Fearon, manager at Aberdeen Standard Investments. "The pressure on margins is greater and market activities have not had the hoped-for jump, despite many investments in growth."
"We know that the revenues (of the BFI-NDLR) can be volatile but we have found no good surprise in today's figures," commented Pierre Willot, portfolio manager at Montaigne Capital.
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