After a record year in 2021, the largest French bank, BNP Paribas, achieved a net profit of 2.1 billion euros in the first quarter, up 19.2% over one year, thanks to a good performance of its corporate and investment bank.
“
In periods of heavy weather, the group does very well
,” welcomed BFM Business Thierry Laborde, deputy general manager of the bank, boasting “
a very diversified model in several geographical areas
”.
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The group “
massively beat
” expectations, with net income 53% above consensus, Jefferies analysts said in a note, despite a slightly larger than expected cost increase.
Shortly after the opening, BNP Paribas shares took 2.22% to 49.89 euros, in a market up 0.26%. The group also revealed that the 90% depreciation of its subsidiary in Ukraine , Ukrsibbank, 60% owned, had cost 159 million euros, BNP Paribas retaining an exposure of just under 20 million.
Of the 300 branches of this subsidiary, about 200 are currently closed because of the war.
However, the bank is not present in Russia.
Growth in all sectors
Overall, BNP Paribas' activity dedicated to large companies and institutions increased by 28.1% compared to the first quarter of 2021, reaching around 4.7 billion euros in turnover.
Before tax, profit almost doubled to 1.35 billion.
"
On the interest rate, foreign exchange and commodity derivatives markets, customer demand is very strong and the level of activity in the equity businesses is very good
", while despite a market "
less buoyant than previous years, the financing businesses recorded a good performance
”, according to the press release issued on Tuesday.
The "
Commercial, personal banking and services
" activity, which includes the activity of commercial banks and specialized businesses, such as car leasing with Arval or payment with Nickel and Floa, grew by 8.5% over one year. , to nearly 7 billion euros in revenue.
Finally, the activity of the investment and protection services businesses, which are insurance, collection and asset management, fell by 0.2% to 1.65 billion, due to a “
unfavorable context on the markets this quarter
”.
Ultimately, net banking income, equivalent to turnover for the sector, increased by 11.7% over one year, to 13.2 billion euros.
Provision reversals
At the group level, the cost of risk, ie the sums provisioned to deal with any unpaid debts on the loans granted, was halved over one year, to 456 million euros.
This “
very low
” level is explained in particular by reversals of provisions, “
in particular at BancWest
”, whose sale for 16.3 billion dollars must be finalized at the end of the year, specifies the press release.
On the strength of these results, the group, which made 9.5 billion euros in profit last year, confirmed its financial objectives for 2025. It also published its first analysis and alignment report on Tuesday. for the climate, in which it makes new commitments, in particular on electricity, oil and gas, and the automobile.
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By 2025, BNP Paribas is committed to reducing its financing in these three areas by 30%, 10% and 25% respectively, compared to 2020. To this end, the bank has notably undertaken to significantly increase its financing to renewable energies to increase them from 18.6 billion euros to 30 billion, and to ensure that the share of electric vehicles in its portfolio reaches 25%, against 4% in 2020. On oil and gas, the group has reinforced its exclusions, in particular concerning projects in the Arctic and the Amazon.
