POWERFUL GROWTH DRIVE
- Group’s Net Banking Income: Euros 5,458mn (+16.8%)
- NBI excluding BNP Paribas Capital +19.5%
- Strong Growth in all the Core Businesses:
Retail Banking: NBI +11.0%
Asset Management and Services: NBI +15.5%
Corporate and Investment Banking: NBI +30.4%
EXCELLENT OPERATING PERFORMANCES (FIGURES EXCLUDING BNP PARIBAS CAPITAL)
- Gross Operating Income +31.4%
- Operating Income +39.0%
SHARP RISE IN PROFITABILITY
- Net Income Group Share: Euros 1,341mn (+ 22.0%)
- Net Income Group Share: Euros 4,517mn (+ 25.8%)
- Cost/Income Ratio (excluding BNP Paribas Capital) 61.3% (improved 1.6 pt)
- Annualised ROE after tax: 20.6 % (+ 2.2 pts)
- Earnings per Share (9 Months): Euros5.4 (+ 26%)
On 23 November 2005, the Board of Directors of BNP Paribas, in a meeting chaired by Michel Pébereau, examined the Group’s results for the third quarter as well as for the first nine months of the year.
POWERFUL GROWTH AND RESULTS UP SHARPLY
BNP Paribas posted in the third quarter net banking income totalling 5,458 million euros, up 16.8% compared to the third quarter 2004. Excluding BNP Paribas Capital (1) the net banking income soared 19.5 %.
All the core businesses experienced fast-growing net banking income:
– Retail Banking: +11.0%
– Asset Management and Services : +15.5%
– Corporate and Investment Banking: +30.4%.
This growth in the core businesses is the result of major organic growth combined with growth through acquisitions. It has been supported by substantial new recruitment and job creation. Since the beginning of the year, BNP Paribas has recruited 7,000 new people world-wide, including 3,300 in France. Since the beginning of 2004, the Group has created a net total of 2,000 new jobs in France where it also has 1,200 job trainees (2).
The rise in operating expenses and depreciation reflects this trend, whilst remaining substantially lower than the growth in net banking income: +13.0% compared to the third quarter 2004. Gross operating income thus jumped 23.5% to 2,096 million euros. Excluding BNP Paribas Capital, gross operating income soared 31.4%.
Net additions to provisions (105 million euros) were 35.2% below those for the third quarter 2004 in a risk environment still very positive for all the core businesses.
Net income group share, at 1,341 million euros, was up 22.0% compared to the third quarter 2004.
For the first nine months of 2005, the net income group share totalled 4,517 million euros (+25.8%). This is the best level of all the eurozone banks. Annualised return on equity was 20.6%, up 2.2 points compared to the first nine months of 2004.
The cost/income ratio came to 61.3%, excluding BNP Paribas Capital, improved by
1.6 points compared to the first nine months of 2004.
(1) Based on IFRS accounting standards, capital gains realised on non-consolidated equity investments, in particular private equity investments, are included in net banking income. Since BNP Paribas Capital has posted amounts of capital gains that vary from one quarter to the next, it is more relevant to analyse variations in the net banking income and in gross operating income, BNP Paribas Capital.),
(2) BNP Paribas has signed the Cultural Diversity Charter and the Youth Training Charter.
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