The bank has said that it is aiming to cut annual costs by EUR2 billion a year through a three-year plan from 2014 to 2016, through a one-off EUR1.5 billion investment.
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Further, the bank also reported the core tier one ratio on capital, to be 9.9%, being almost 1 percentage point higher than the target set for the end of its third quarter in September 2012. The efficiency plan is believed to generate savings of EUR2 billion a year from 2015 and did not involve closing any businesses.
Moreover, half the savings are to come from retail banking, a third from the investment bank and the rest from the asset management business.
Speaking about the move, Jean-Laurent Bonnafé, chief executive, said that the move was an ambitious plan to simplify the way the group functions and improve operating efficiency, adding that the bank could now actively pursue business development in 2013.
Additionally, BNP plans to expand in Asia, which had generated EUR2 billion of sales in 2012, so as to boost the rate of growth from the region to 12% from the current 6% and the number of people employed in the region is also to be increased from 8,000 to 9,300.
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By GlobalDataBonnafé said that Asia was the first in a series of business development plans to be unveiled over the course of the year and that other regions targeted include the US and emerging markets around the Mediterranean basin.
