The wealth and asset management unit of French banking group BNP Paribas has posted a pre-tax income of €177m for Q2 2019.
This is a decrease of 14% from last year’s figure of €206m.
The division’s revenues for the April to June quarter were €795m, down 5% from €834m in the same quarter of 2018.
Operating income at the unit plunged 17% to €161m from €193m.
Insurance and Wealth and Asset Management’s assets under management (AuM) were €1.09 trillion at the end of June 2019, a 6% rise compared to 31 December 2018. The bank attributed the AuM growth to net inflows of €10.3bn driven by wealth management in Asia, France and Belgium, and unit-linked policies in insurance.
Assets under management broke down as follows: asset management (€427bn), wealth management (€380bn), insurance (€252bn), and real estate services (€29bn).
BNP Paribas Group Q2 income
Overall, the banking group registered net income attributable to equity holders of €2.47bn in Q2 2019, an increase of 3% from €2.39bn a year ago.
The rise in income was said to be supported by the sale of SBI Life.
The group’s revenues for the three-month period ended 30 June 2019 were €11.22bn, versus €11.21bn a year ago.
Pre-tax income at the group dropped 2% to €3.38bn from €3.45bn.
BNP Paribas CEO Jean-Laurent Bonnafé said: “Revenues were up thanks to business growth in the operating divisions.
“Operating expenses were well contained and benefitted from the transformation plan, generating a positive jaws effect.
“The common equity Tier 1 ratio rose to 11.9%, illustrating the Group’s solid balance sheet.”