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Revival in investment banking helped BNP in Paribas that in the fourth trimester to increase its profit by more than 15 percent, as France’s largest lender said that he was starting a plan to increase profitability of his domestic business.
Revenues in corporate and institutional banking increased by 20 percent compared to the same period in 2023 to 4.5 billion euros, led by Banka traders, who recorded an increase of 32 percent.
The results echo those last month from BNP’s rival on Wall Street, where trade rabies around US elections, return of agreement and volatility in the market launched an increase in revenue through investment banks.
In BNP, the performance throughout the group was better than expected. Revenues increased for shy 11 percent, to 12.1 billion euros, while the net revenue increased 15.7 percent to 2.3 billion euros.
Investment banking shifted growth in commercial and retail operations by BNP 2024, although the division recovered in the last quarter, noting a growth of 4.7 percent.
Although the revenues at its French operations increased in the fourth quarter because the bank stabilized higher fees and deposits, the Director Jean-Laurent Bonnafé said that the bank “launched a new strategic plan” for that part of the work -screen condition that its work councils are advised to be advised – with the aim of increasing the profitability of commercial and personal banking in France to the level of a wider group.
BNP growth is expected to be encouraged by the integration of AXA investment managers, which he acquired last year from a French insurer in an agreement of 5 billion euros. Including AXA IM work, BNP said it would target an average growth rate for revenue more than 5 percent for 2024-2026; Without it, the figure would be about 4 percent.
The lender in Paris lost the crown as the largest eurozone bank this year in Santander. Despite the strong performance in recent years, she has hit political turmoil in her home market.
His share price is yet to regain his level at the beginning of June, before Gambit President Emmanuel Macron named Parliamentary election of Snap hit the French bank shares. Political insecurity is underway in accordance with the Budget of the French Government also hit confidence in the banking sector.
The commercial operations of the bank were influenced by state bonds that competed with their savings products in Belgium, as well as the high interest rate the bank must pay at popular French savings accounts known as Livret A.
However, French banks should benefit from the Government’s decision in January to reduce the liver rate, which could encourage profit in banking banking.
The return to the tangible capital, the closely observed measure of profitability, reached 10.9 percent, before estimating. The bank repeated its guidelines to raise measures to 12 percent by 2026.
The bank also recorded the ratio of the first common capital of 12.9 percent. The Bank’s shares fell in October after its CET1 ratio, a measure of its financial resistance, came lower than analysts predicted.
