Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q2 2024 Earnings Presentation
30 slides from Bnp Paribas S.a. Class A's earnings presentation, Jul 24, 2024
Slide 1: Results Second Quarter 2024
RESULTS SECOND QUARTER 2024 24 JULY 2024 Second quarter 2024 results | 1
Slide 2: Disclaimer
DISCLAIMER The figures included in this presentation are unaudited. As a reminder, on 29 February 2024 BNP Paribas reported restated quarterly series for 2023 to reflect, in particular, the end of the build-up of the Single Resolution Fund (SRF), effective 1 January 2024, and the assumption of a sim
Slide 3: BNP Paribas achieves very high Net Income of €3.4bn
2ND QUARTER 2024 | BNP Paribas achieves very high Net Income of €3.4bn Chg. vs. 2Q231 2Q24 (€m) distributable Strong revenue growth driven by the diversified and integrated model ⎯ Revenues 12,270 +3.9% • Excellent quarter at CIB (+12.1% vs. 2Q23), in particular at Global Markets (+17.6% vs. 2Q23) •
Slide 4: 2024 Trajectory confirmed on the basis of 1H24 results
2024 TRAJECTORY | On the basis of its 1H24 results, BNP Paribas confirms its 2024 trajectory 1 Revenues 2 Jaws effect1 3 Cost of risk 4 Net Income2 2024 trajectory Growth > +2% > 2023 Net Income3 vs. 20233 revenues Positive < 40 bps (€11.2bn) (€46.9bn) 1H24 results €24.8bn +0.5 pt 31 bps €6.5bn (+1.
Slide 5: Long-term trajectory: growth and distribution across the cycles
LONG-TERM TRAJECTORY | Growth and distribution across the cycles ⎯ Revenue growth1 far greater than long-term growth of the ⎯ As of 30 June 2024, net book value3 stood at €88.5 underlying euro zone economy 87,6 78.7 79.3 73.2 63.3 52.4 CAGR 2013-2023 2Q24 Revenues CAGR 2012-2023 NBV 30.06.24 +3.0% +
Slide 6: Section 1: 2Q24 Group results
SECTION 1 2Q24 Group results Second quarter 2024 results | 6
Slide 7: P&L statement: very solid operating performances in 2Q24
P&L STATEMENT | Very solid operating performances in 2Q24 2Q23 Chg. vs. 2Q23 2Q24 2Q23 (€m) (distributable1) distributable1 Net Banking Income (NBI) 12,270 11,811 11,363 +3.9% -7,176 -6,884 -6,889 +4.2% Operating expenses -59 -32 -32 n.s. o/w IFRIC21 taxes 5,094 4,927 4,474 +3.4% Gross Operating Inc
Slide 8: Exceptional items: limited impacts in 2Q24
EXCEPTIONAL ITEMS | Limited impacts in 2Q24 €m 2Q24 2Q23 (distributable1) Provisions for litigation (Corporate Centre) - -125 Total NBI - -125 Restructuring costs and adaptation costs (Corporate Centre) -50 -57 IT reinforcement costs (Corporate Centre) -98 -94 Total Operating expenses -148 -151 Tota
Slide 9: Revenues: solid performance within each division
REVENUES | 2Q24 driven by a solid performance within each division ⎯ Group1 ⎯ Corporate & Institutional ⎯ Commercial, Personal Banking & ⎯ Investment & Banking Services4 Protection Services -0.3% Commercial & Specialised Personal Banking Businesses +3.9% +12.1% +1.7% -3.6% +3.0% 12,270 11,811 3,998
Slide 10: Revenues: strength of the diversified and integrated model
REVENUES | 2Q24 illustrates the strength of the diversified and integrated model 2024e REVENUE GROWTH >2% ⎯ The breakdown in revenues in 2Q24 illustrates ⎯ Cross-selling accounted for 32% of Group revenues the complementarity of Group businesses in 2023, up by +4% +4% PI & NDB Insurance €14.4bn €15.
Slide 11: Operating efficiency: expenses kept under control
OPERATING Operating expenses kept under control, while supporting growth in 2Q24 EFFICIENCY ⎯ Group1 ⎯ Corporate & Institutional ⎯ Commercial, Personal Banking & ⎯ Investment & Protection Banking Services3 Services +5.6% Commercial & Specialised +4.2%* Personal Banking Businesses 7,176 +9.4% +8.9% -
Slide 12: Operating efficiency: cost base in line with 2024 trajectory
OPERATING 2Q24 change in the cost base is in line with the 2024 trajectory EFFICIENCY ⎯ Operational efficiency measures 2024: €350m completed in 1H24, €650m to come in 2H24 (€m) €1,000m IPS CIB 11% • Mutualisation (nearshoring / JAWS 33% offshoring) EFFECT POSITIVE 400 • Acceleration of deployment o
Slide 13: Cost of risk under control, below 40 bps
COST OF RISK | Cost of risk under control, thanks to the quality and diversification of the portfolio 2024e COST OF RISK < 40 bps ⎯ Cost of risk1 / GOI2 – 2018-2025e ⎯ 2Q24 illustrates the conservative and proactive risk culture Cost of risk1 / €19.0bn Stock of customer loans 33 bps o/w €4.5bn provi
Slide 14: Low cost of risk in 2Q24 in all business lines
COST OF RISK | Low cost of risk in 2Q24 in all business lines Cost of risk1 vs. customer loans outstanding at the beginning of the period (in bps) ⎯ CPBF • €239m (+€88m / 2Q23), due ⎯ CPBB to a specific credit situation • -€11m (-€30m vs. 2Q23) • Cost of risk stable at 20 bps • Decrease in cost of r
Slide 15: Financial structure: confirmation of capital trajectory out to 2025
Confirmation of the capital trajectory out to 2025 FINANCIAL STRUCTURE | and anticipation in 2Q24 of model updates initially planned in 2025 ⎯ Change in CET1 ratio between 31 March 24 and 30 June 24 LCR2 132% 13.10% +40 bps 13.0% -30 bps -10 bps -10 bps 30.06.24 10.27%1 Leverage ratio3 4.4% 30.06.24
Slide 16: Technological innovation: continued deployment of AI
TECHNOLOGICAL INNOVATION | Continued deployment of AI ⎯ AI strategy embedded into the Group’s transformation ⎯ An open-ended and secured technological foundation 780 AI use cases as at 30.06.24 • ~800 artificial intelligence specialists (data scientists or business analysts) in the Group • +260 init
Slide 17: ESG: confirmed leadership in sustainability
ESG | 2Q24 BNP Paribas confirmed its leadership in sustainability ⎯ 2Q24: Examples of innovative solutions World’s Best Bank for Financial Inclusion World’s first gender bond: 50 million euros (Iceland) • Finances improvement in parental leave and the ⎯ New objectives and binding strategic indicator
Slide 18: Section 2: Operating divisions
SECTION 2 OPERATING DIVISIONS Second quarter 2024 results | 18
Slide 19: CIB: very good performances in all business lines
CIB | Very good performances in all business lines, very steep increase in Global Markets revenues CIB (€m) 2Q24 2Q23 Chg. • Global Banking – NBI: €1,502m (+5.4% vs. 2Q23) Net Banking Income (NBI) 4,481 3,998 +12.1% • Global Markets – NBI: €2,249m (+17.6% vs. 2Q23) Operating expenses -2,489 -2,275 +
Slide 20: Deep dive: Equity & Prime Services platform
DEEP DIVE EQUITY & PRIME 17 Sept. CIB | Equity & Prime Services: a scaled-up and fast-expanding platform SERVICES at the service of the Group’s strategy ⎯ A comprehensive platform to serve clients, articulated around three business lines • A global Top 5 Equity Derivatives franchise that is growing
Slide 21: CPBS: solid momentum in activity
CPBS | Solid momentum in activity, driven by the quality of franchises and partnerships CPBS1 (€m) 2Q24 2Q23 Chg. • Commercial & Personal Banking – NBI1: €4,229m (+1.7% vs. 2Q23) Net Banking Income (NBI) 6,758 6,782 -0.3% • Specialised Businesses – NBI1: €2,530m (-3.6% vs. 2Q23) Operating expenses -
Slide 22: Commercial & Personal Banking in the eurozone
CPBS | Commercial & Personal Banking in the eurozone – Solid positions and positive trends ⎯ Higher fees ⎯ Increase in cross-selling revenues between Commercial & €1.5bn Personal Banking and the rest of the Group €1.4bn €9.7bn €10.2bn +4.5% +5.2% 2Q23 2Q24 2022 2023 CPBF (France) BNL (Italy) CPBB (B
Slide 23: IPS: good increase in AuM and revenues
IPS | Good increase in AuM and revenues at IPS Chg. excl. IPS (€m) 2Q24 2Q23 Chg. RE and PI • Insurance – NBI: €586m (+5.2% vs. 2Q23) Net Banking Income (NBI) 1,472 1,430 + 3.0% +6.5% • Wealth Management – NBI: €419m (+6.1% vs. 2Q23) Operating expenses -879 -878 +0.1% +2.6% • Asset Management – NBI:
Slide 24: IPS Insurance: growth driven by partnership model
DEEP DIVE Insurance – Pace of growth driven by the strength of the INSURANCE Q4 2024 IPS | partnership model ⎯ A unique distribution model based on a broad network of partners and internal ⎯ A strategic development axis distribution channels • Closing in 2Q24 of the acquisition of 51% of BCC Vita, a
Slide 25: A reinforced internal control set-up
A REINFORCED INTERNAL CONTROL SET-UP An even more solid compliance, conduct and control set-up and ongoing insertion of reinforced conduct culture into daily operations • Ongoing improvement of the operating model for combating money laundering and terrorism financing • A standards-based, risk-adjus
Slide 26: Conclusion
CONCLUSION On the strength of its diversified and integrated model, BNP Paribas achieved a very good second quarter 2024 Net income of €3.4bn supported by a solid operating perfomance The 2024 trajectory is confirmed Thanks to its teams’ strong commitment to serving customers, BNP Paribas is well-pl
Slide 27: Endnotes (1/2)
ENDNOTES (1/2) • Slide 3 • Slide 7 1. Restated quarterly series published on 29 February 2024. Results serving as a basis for 1. Restated quarterly series published on 29 February2024. Results serving as a basis for calculating the 2023 distribution and reflecting the Group’s intrinsic performance p
Slide 28: Notes (2/2)
NOTES (2/2) • Slide 22 • Slide 13 1. Amount of AuM as reported by the main euro zone banks for 1Q24 1. Cost of risk excluding “Other net losses for risk on financial instruments” 2. Source: ranking based on a penetration rate – Coalition Greenwich Share Leaders 2. GOI: excluding exceptional items, e
Slide 29: Appendices: presentation contents
APPENDICES | Presentation contents – Details by division and other items ⎯ Details by division (2Q24 and 1H24) ⎯ Other items ⎯ CIB • Corporate Centre • Global Banking • Number of shares and Earnings Per Share • Global Markets • Book value per share • Securities Services • Return on Equity and Perman
Slide 30: Contacts and upcoming events
CONTACTS AND UPCOMING EVENTS ⎯ Investor Relations and Financial Information ⎯ Upcoming events in 2024 and 2025 Bénédicte Thibord, Head of Investor Relations and Financial 16 Oct. 2024 Quiet period begins Information 31 Oct. 2024 3Q 2024 earnings reporting date Equity 04 Feb. 2025 4Q 2024 earnings re