BNP Paribas revenue hits hurdle in 2Q 2013; institutional AM arm set for expansion
01 August 2013
News, Asia, France
By Asia Asset Management
Paris-headquartered financial giant BNP Paribas recorded revenues of 9.91 billion euros (US$13.08 billion) in the second quarter of this year, a decrease of 1.8% compared to the figure a year earlier. Its net income was down 4.7% year on year to 1.8 billion euros.
The firm said in its latest quarterly report that revenues from the operating divisions were resilient thanks to the diversity of the business and geographic mix, with retail banking (+1%), investment solution (+3.1%), and corporate and investment banking (-0.4%).
For the first half of the year, the group displayed solid results despite the challenging environment. Revenue totalled 19.9 billion euros, down 0.1% from 1H 2012. The figure includes revenue of 299 million euros from one-off items.
On the asset management front, BNP Paribas stated that the division is a strategic business for the group for three basic reasons: (1) it is a key business for institutional clients; (2) it is responsible for managing its clients’ assets; and (3) it delivers substantial returns on equity.
“With 3,200 people working in 40 countries, the business unit has a global reach. Its assets under management totalled 375 billion euros (US$497) as at June 30 2013,” the firm said in a statement.
“The asset management division is a solid organisation across the emerging markets, with a presence in 17 countries and 50 billion euros in distributed assets. It bolsters its presence through local partnerships, in particular with Shinhan in Korea and HFT in China.”
Looking ahead, the group targets revenues in the highly profitable core business to grow by as much as 10% by 2016. It plans to jump-start net asset inflows of 40 billion euros by 2016 in the value-added segments across the Asia Pacific and emerging markets. To this end, the group will make selective investments, particularly in the institutional segment, it says.
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