Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q3 2024 Earnings Presentation
30 slides from Bnp Paribas S.a. Class A's earnings presentation, Oct 31, 2024
Slide 1: Results Third Quarter 2024
RESULTS THIRD QUARTER 2024 31 OCTOBER 2024 Third 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 high Net Income of €2,868m (+5.9%)
3RD QUARTER 2024 | BNP Paribas achieves high Net Income of €2,868m (+5.9%) Chg. vs. 3Q231 3Q24 (€m) distributable • Revenues up by +2.7%, driven by the diversified and integrated model: very good ⎯ Revenues 11,941 +2.7% performance at CIB (+9.0%) and IPS (+4.9%). CPBS (-2.6%) was stable (-0.1%) excl
Slide 4: On the strength of its 3Q24 results, BNP Paribas confirms its 2024 trajectory
2024 TRAJECTORY | On the strength of its 3Q24 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 over 2023 revenues3 Positive < 40 bps (€11.2bn) (€46.9bn) 9M24 results €36.7bn (+2.0% vs. +0.6 pt 31
Slide 5: Long-term trajectory: performance throughout the economic cycle
BNP Paribas’ performance demonstrates its capacity to grow LONG-TERM TRAJECTORY | constantly throughout the economic cycle ⎯ Net Book Value (NBV 1) as of 30.09.24: €91.1 ⎯ 3Q24 EPS2: €2.38 (+11.2% vs. 3Q23) CAGR3: +5.6% CAGR: +5.5% 87.6 78.7 9.20 63.3 7.26 6.00 45.4 4.82 2011 2016 2021 2023 2011 201
Slide 6: Section 1: 3Q24 Group results
SECTION 1 3Q24 Group results Third quarter 2024 results | 6
Slide 7: Profit & Loss Statement & Exceptional Items
PROFIT & LOSS STATEMENT & EXCEPTIONAL ITEMS 3Q23 Chg. vs. 3Q23 3Q24 3Q23 Profit & loss statement (€m) (distributable1) distributable1 Revenues 11,941 11,629 11,581 +2.7% Operating expenses -7,213 -7,093 -7,093 +1.7% Gross operating income 4,728 4,536 4,488 +4.2% Cost of risk -729 -734 -734 -0.7% Oth
Slide 8: Revenues: solid performance in each operating division
REVENUES | 3Q24 was driven by solid performance in each operating division ⎯ Group1 ⎯ Corporate & Institutional ⎯ Commercial, Personal Banking & ⎯ Investment & Banking Services4 Protection Services -2.6% Commercial & Specialised Personal Banking Businesses +2.7% +9.0% -0.8% -5.7% +4.9% 11,629 11,941
Slide 9: Diversified and integrated model grows through economic cycles
3Q24 illustrates the strength of the diversified and integrated model, which allows BNP REVENUES | Paribas to grow through economic cycles ⎯ The diversified model creates industrial platforms and product ⎯ ...which support deep client franchises: cross-selling in 1H24 factories… accounted for 32% of
Slide 10: Operational efficiency: positive 3Q24 jaws effect at Group level
OPERATIONAL 3Q24 jaws effect is positive at Group level… EFFICIENCY ⎯ Group1 ⎯ Corporate & Institutional ⎯ Commercial, Personal Banking & ⎯ Investment & Protection Banking Services3 Services Commercial & -0.9% Specialised +1.7% Personal Banking Businesses 7,213 +8.6% -0.7% -1.3% -0.4% 7,093 2,368 2,
Slide 11: Operational efficiency: impact of efficiency measures
OPERATIONAL ... driven by the impact of operational efficiency measures EFFICIENCY ⎯ In the first nine months of the year, cost savings from ⎯ In 3Q24, cost savings achieved are in line with the announced operational efficiency measures amounted to €655m trajectory: €1bn in 2024, out of a total of €
Slide 12: Cost of risk under control
COST OF RISK | Cost of risk under control, thanks to the quality and diversification of the portfolio ⎯ Cost of risk1 / GOI2 – 2018-2025e ⎯ 3Q24 illustrates the conservative and proactive risk culture Cost of risk1 / €18.8bn Stock of customer loans 32 bps provisions o/w €4.3bn outstanding Stages 1 &
Slide 13: Low cost of risk in all business lines
COST OF RISK | Low cost of risk in 3Q24 in all business lines Cost of risk1 / customer loans outstanding at the beginning of the period (in bps) ⎯ CPBF ⎯ CPBB • €122m (+€5m vs. 3Q23) • -€17m (-€39m vs. 3Q23) • Cost of risk stable • Decrease in cost of risk 41 26 25 • Reminder: specific credit 8 6 5
Slide 14: Deployment of capital
DEPLOYMENT OF CAPITAL ⎯ 60 bps returned to the shareholder in the form of share ⎯ IPS accounts for 40% of these 90 bps in Insurance, Asset buybacks and 90 bps invested in a disciplined manner within the Management and Wealth Management group, in activities with higher value creation potential 60 bps
Slide 15: Financial structure: Arval prudential consolidation and CET1 trajectory
Prudential consolidation of Arval and confirmation of the CET1 trajectory FINANCIAL STRUCTURE | to 2025 ⎯ Change in CET1 ratio between 30 June 2024 and 30 September 20241 2 LCR 13.0% 12.7% +20 bps 12.7% 30.09.24 124% -30 bps -20 bps 3 Leverage 30.09.24 4.4% 10.27% CET1 31.12.25 12% CET1 30.06.24 Pru
Slide 16: Social responsibility: People Strategy 2025
SOCIAL RESPONSIBILITY | Implementing the conditions of equality through the People Strategy 2025 ⎯ Above-average gender diversity on the Executive Committee ⎯ Continued progress towards gender diversity in senior (including vs. committed peers) after a remarkable acceleration1 management positions 4
Slide 17: Section 2: Operating Divisions
SECTION 2 OPERATING DIVISIONS Third quarter 2024 results | 17
Slide 18: CIB: very good business activity in all business lines
CIB | Very good business activity in all business lines, very strong increase in Global Markets revenues CIB (€m) 3Q24 3Q23 Var. • Global Banking – Revenues : €1,487m (+5.9% vs. 3Q23) Revenues 4,247 3,896 +9.0% • Global Markets – Revenues : €2,023m (+12.4% vs.. 3Q23) Operating Expenses -2,571 -2,368
Slide 19: Capital Markets: fast-growing global platform
Capital Markets: a fast-growing global platform at the heart of the Group’s “Originate and Distribute” CIB | strategy A fast-expanding market A dual expertise A unique client franchise • Corporate clients’ financing needs (e.g. for • The Capital Markets platform was set up in • Capital Markets build
Slide 20: CPBS: adaptation to the market environment at CPBB and Arval
Improvement at Commercial & Personal Banking in the euro zone and at Personal Finance. CPBS | Adaptation to the market environment at CPBB and Arval CPBS1 (€m) 3Q24 3Q23 % chg. • Commercial & Personal Banking – Revenues1: €4,202m (-0.8% vs. 3Q23) Revenues 6,576 6,754 -2.6% • Specialised Businesses –
Slide 21: CPBS: improving outlook for euro zone banking in 2025
CPBS | Improving outlook for Commercial & Personal Banking in the euro zone in 2025 ⎯ A favourable change in the interest rate environment: ⎯ In 3Q24, average loans1 (€434bn) stabilised with a slight the forward rate structure shows the market anticipation improvement in individual loans of a steepe
Slide 22: CPBS: Focus on Personal Finance and Arval
CPBS | Focus on Specialised Businesses: Personal Finance and Arval ⎯ Personal Finance: the implementation of the strategic plan ⎯ Arval: continued organic revenue growth2 (+15.3% vs. 3Q23)… results in an increase in core perimeter revenues* in 9M24 (+2.4% vs. 9M23) … +15.3% 9M24 core +2.4% perimeter
Slide 23: IPS: very good quarter in Asset Management and Insurance
IPS | Very good quarter in Asset Management and Insurance IPS (€m) 3Q24 3Q23 Var. • Insurance – Revenues: €570m (+6.4% vs. 3Q23) Revenues 1,489 1,420 + 4.9% • Asset Management – Revenues: €507m (+7.9% vs. 3Q23) Operating expenses -881 -884 -0.4% • Wealth Management – Revenues: €411m (-0.5% vs. 3Q23)
Slide 24: IPS: stepping up investments in growth markets
DEEP DIVE 11 Dec. IPS | Stepping up our investments in growth markets INSURANCE 2024 % Group % Group % of BoW % Group revenues % RWA pre-tax net income cross-selling redeployed capital 3Q24 12% 16% 6% 36% (1H24) 40% ⎯ Recent bolt-on acquisitions to expand the platform… ⎯ … as a new driver of medium-
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 Due to the strength of its diversified and integrated model, BNP Paribas achieved a very good third quarter 2024 Net Income of €2.9bn driven by solid operational performance The 2024 trajectory is confirmed Thanks to the strong commitment of its teams to serving customers, BNP Paribas is
Slide 27: Endnotes (1/2)
ENDNOTES (1/2) • Slide 3 • Slide 8 1. Based on restatement of quarterly series reported on 29 February 2024. Results serving 1. Distributable base for 3Q23 as a basis for calculating the distribution in 2023 and reflecting the Group’s intrinsic performance post impact of the Bank of the West sale an
Slide 28: Endnotes (2/2)
ENDNOTES (2/2) • Slide 22 • Slide 13 1. Non-core perimeter corresponding to businesses divested or placed on run-off 1. Cost of risk excluding “Other net losses for risk on financial instruments” 2. Organic Revenues: financial margin and margin on services • Slide 14 • Slide 23 1. This project remai
Slide 29: Appendices: Presentation contents
APPENDICES | Presentation contents – Details by division and other items ⎯ Details by division (3Q24 and 9M24) ⎯ Other items ⎯ CIB • 9M24 key figures • Global Banking • 3Q24 & 9M24 Simplified profit & loss statement • Global Markets • 9M24 exceptional items • Securities Services • Capital deployment
Slide 30: Contacts and upcoming events
CONTACTS AND UPCOMING EVENTS ⎯ Investor Relations ⎯ Upcoming events Bénédicte Thibord, Head of Investor Relations and Financial 04 Feb. 2025 4Q 24 earnings reporting date Information 24 April 2025 1Q25 earnings reporting date Equity 24 July. 2025 2Q25 earnings reporting date Raphaëlle Bouvier-Flory