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July 31, 2020updated 25 Mar 2022 7:24am

BNP Paribas wealth income slips in Q2 2020

BNP Paribas Wealth and Asset Management unit has registered a fall in its Q2 pre-tax income amid Covid-19 induced market turmoil. The group-wide performance was also dismal which was cushioned by a boost from fixed income trading.

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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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Wealth management highlights

The division’s pre-tax income was €102m for the three-month-period ending 30 June 2020, a 42% decline from €177m a year ago.

Revenues of €678m in Q2 2020 were 15% lower than the previous year.

The bank said that the performance was affected by the “impact of the low-interest-rate environment on net interest income in Wealth Management, unfavourable market valuation effects on Asset Management revenues, and the very strong impact of the health crisis on the Real Estate business”.

Operating expenses dropped 5% to €601m, driven by fall in Real Estate Services costs and transformation measures mainly in Asset Management.

Insurance and Wealth and Asset Management’s assets under management were €1.08trn at the end of June 2020.

Assets under management broke down as follows: Asset Management (€456bn including €29bn from Real Estate Investment Management), Wealth Management (€377bn), and Insurance (€252bn).

Net asset inflows of €10.8bn were driven by Wealth Management, mainly from large clients in Europe and Asia.

Asset Management also recorded good inflows, revealed the bank in its earnings statement.

Corporate and Institutional Banking

The unit’s revenues increased 33% year-on-year to €4.12bn in Q2 2020.

Global Markets was the main growth driver with revenues surging 63%.

Fixed Income, Currencies and Commodities (FICC) revenues increased sharply to €2.01bn in Q2 2020 from €793m a year earlier. Growth was strong across primary and credit markets, rates, forex as well as emerging markets.

Revenues in Corporate Banking and Securities Services increased 15% and 4%, respectively.

Key metrics at the group

At a group level, the banking group registered a pre-tax income of €3.13bn in Q2 2020, down7% from €3.38bn in Q2 2019.

Net income attributable to equity holders at the group dropped 7% to €2.3bn from €2.47bn over the period.

The lender set aside €1.45bn in Q2 as loan loss provisions, compared with €621m last year.

However, the group’s revenues increased 4% to €11.67bn from €11.22bn.

The CET 1 ratio, a key measure of strength, increased to 12.4% from 11.9% a year ago.

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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