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A revival of BNP Paribas investment services helped to raise its profits by more than 15 percent in the fourth quarter, where the largest lender in France said it would launch a plan to enhance the profitability of its local business.
Revenue in institutional and institutional banking services increased by 20 percent compared to the same period in 2023 to 4.5 billion euros, led by the bank’s traders, who recorded an increase of 32 percent.
The results hesitated last month from the Wall Street competitors in BNP, where trading madness on the United States elections, the return of deals and the fluctuation of the market Pay the increasing revenues Through investment banks.
In BNP, performance all over the group was better than expected. Revenue increased by 11 percent to 12.1 billion euros, while net income increased by 15.7 percent to 2.3 billion euros.
Investment banking compensates for faded growth in BNP commercial and retail operations in 2024, despite the department's recovery in the last quarter, as it recorded a growth of 4.7 percent.
Although the revenues in its French operations increased in the fourth quarter, where the bank reaped higher fees and settled deposits, CEO Jean -Laurent Bonva said that the bank “launches a new strategic plan” for this part of the work – he is consumed in consultation with its business councils – with the aim of increasing profitability Commercial and personal banking services in France to the broader group level.
Growth is expected to be strengthened in BNP by integrating Axa Investment managers, which you gained from the French insurance company last year in a deal worth 5 billion euros. Including AXA IM, BNP said it will target an average growth rate for more than 5 percent for 2024-2026; Without it the number will be about 4 percent.
The lender is lost in Paris, its crown as the largest bank listed in the euro area in Santander this year. Despite the strong performance in recent years, it has been subjected to political turmoil in its local market.
The price of his share has not yet been recovered to its level in early June, before the maneuvering of President Emmanuel Macron called the sudden parliamentary elections the shares of the French Bank. The continuous political uncertainty about the French government's budget has reached confidence in the banking sector.
The commercial operations of the bank were affected by government bonds that competed with savings products in Belgium, as well as the high interest rate that the bank must pay on the famous French savings accounts, known as Livret A.
However, French banks are scheduled to benefit from a government decision in January to reduce the Leverret rate, which may increase profits in retail banking services.
The revenue on concrete stocks, a close monitoring measure of profitability, reached 10.9 percent, before estimates. The bank repeated directives to raise the measure to 12 percent by 2026.
The bank also recorded a higher percentage of shared shares of 12.9 percent common shares. The bank’s shares decreased in October after the CET1 ratio, a measure of its financial flexibility, came less than what analysts expected.
