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November 1, 2021

BNP Paribas reports 17% rise in wealth and asset management revenue

By Verdict Staff

BNP Paribas Wealth and Asset Management unit has registered a 17% jump in revenue in the third quarter of 2021. The unit’s revenue rose to €859m from €734m a year ago.

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GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
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The rise was driven by higher fees and loan revenues in wealth management, and strong net asset inflows and the performance effect in the asset management. Real estate division also saw strong increase, particularly in advisory.

Wealth and asset management highlights

The unit’s pre-tax income rose by 53.42% to €224 in the quarter to September 2020 from €146m in the year ago period.

The unit’s operating expenses were €651m versus €598 in the third quarter of last year. Operating income was €205, up 57.69% from €130m a year ago.

Gross operating income climbed 53% to €208m from €136 in Q3 2020.

The French lender said that its wealth management division witnessed good net asset inflows in Europe, mainly in Germany.

Asset management registered also strong net asset inflows, mainly into medium- and long-term vehicles in Europe and into money-market vehicles.

The acquisition of Dutch asset manager Dynamic Credit Group during the quarter resulted in continued development within the division’s private assets.

As at 30 September 2021, the unit’s combined assets under management (Aum) rose by 4.5% to €1,218bn.

Group highlights

At group level, BNP Paribas’s attributable net income was €2.5bn in Q3 2020, compared to €1.8bn a year ago.

The group’s pre-tax income surged 29.1% from €2.6bn to €3.4bn in the quarter. Revenues increased 4.7% year-on-year to €11.3bn.

Group operating expenses were €7.4bn, up 3.8% from €7.1bn a year ago. The group’s gross operating income increased by 6.4% to €3.9bn from €3.7bn in the third quarter of 2020.

BNP Paribas CEO and director Jean-Laurent Bonnafé said: “BNP Paribas’ results are solid and con­rm the potential for growth beyond the rebound that has already occurred. BNP Paribas continues to accelerate the development of its activities and to invest at the service of clients and the economy.

“Our digital and industrial transformation allows it to be more ef­cient every day and to address customers’ new behaviours by offering them greater proximity and advisory.”

Free Report
img

Analyze opportunies within the wealth management market in APAC

GlobalData’s ‘Asia-Pacific Wealth Management: Market Sizing and Opportunities to 2026’ report provides a comprehensive overview of the Asia-Pacific (APAC) wealth management market.
  • The report analyzes the APAC wealth and retail savings and investments markets. This includes affluent market size, both by number of individuals and the value of their liquid assets.
  • The affluent population grew by 5.3% in 2021 and is expected to grow at an AAGR of 4.8% between 2022 and 2026.
  • The value of liquid assets held by the affluent segment surged by 8.4% in 2021, backed by economic recovery. HNW individuals’ financial wealth grew by 12%, while mass affluent individuals’ wealth grew by 6.0%.
  • The report provides an analysis of factors driving liquid asset growth. It is also split into asset classes - equities, mutual funds, deposits, and bonds.
  • The affluent population are more risk-tolerant and invest a significant proportion of their investments in risky assets such as equities, compared to emerging affluent and mass market individuals.
The report also provides data and insights on the size of offshore holding of HNW investors in the APAC region.
by GlobalData
Enter your details here to receive your free Report.

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