In This Article:
-
Net Income Group Share: EUR2.9 billion in Q3 2024.
-
Revenue Growth: Up 2.7% year-on-year.
-
Corporate and Institutional Banking (CIB) Revenue: Up 9% year-on-year.
-
Commercial and Personal Banking Services (CPBS) Revenue: Stable, excluding used car disposals at Arval.
-
Investment and Protection Services (IPS) Revenue: Up 4.9%, driven by insurance and asset management.
-
Operating Costs: Up 1.7% year-on-year.
-
Gross Operating Income: Up 4.2% year-on-year to EUR4.7 billion.
-
Operating Income: Up 4.1% to almost EUR4 billion.
-
Cost of Risk: Stable at 32 basis points.
-
EPS Growth: Up 11.2% year-on-year.
-
Common Equity Tier 1 Ratio: 12.7% as of September 30, 2024.
-
Capital Redeployment: 150 basis points, with 60 bps returned to shareholders and 90 bps invested within the group.
-
Operational Efficiency Savings: EUR655 million achieved by end of September, with EUR1 billion expected for full year 2024.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
BNP Paribas (BNPQF) reported a strong net income of EUR 2.9 billion for Q3 2024, marking a 5.9% increase year-on-year.
-
The Corporate and Institutional Banking (CIB) division showed robust growth, with revenues up 9% year-on-year, driven by strong performances in global markets.
-
The company achieved EUR 655 million in cost savings by the end of September 2024, with a target of EUR 1 billion for the full year, demonstrating effective cost management.
-
BNP Paribas (BNPQF) maintained a strong financial structure with a common equity tier 1 ratio of 12.7%, well above regulatory requirements.
-
The Insurance and Asset Management segments within the Investment and Protection Services (IPS) division performed well, with revenues up 4.9% driven by strong asset management and insurance growth.
Negative Points
-
The Arval division faced challenges due to the normalization of used car prices, which is expected to continue impacting results until the end of 2025.
-
The Belgian market experienced significant disruption, with intense competition on loans and deposits affecting margins.
-
The Personal Finance segment showed negative growth, although the core perimeter was up slightly by 1.5% year-on-year.
-
The French and Belgian banks faced headwinds from high short-term rates, impacting deposit volumes and margins.
-
The company's exposure to the UK motor finance market, although limited, could still pose risks given recent market developments.
Q & A Highlights
Q: The market was disappointed with the Equities and Prime Services Division's performance. Is there higher seasonality than anticipated in Q3, and how should we view EPS post-restructuring? A: Lars Machenil, CFO: In Q2, all stars aligned, leading to strong demand across domains. Our activity is mainly European-based, and the dynamics differ from those across the Atlantic. We are gaining market share in Europe, and the base should be viewed in terms of volumes in the zone.