View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
November 3, 2020

BNP Paribas wealth unit continues downward trajectory amid Covid-19 headwinds

BNP Paribas Wealth and Asset Management arm has reported a fall in its Q3 2020 pre-tax profit, amid a challenging market. The group performance too suffered but surpassed analyst expectations, driven by trading boom.

Key Wealth and Asset Management metrics

The division’s pre-tax income was €146m ($170.8m) for the three-month-period ending September 2020, a fall of 14% compared to €170m in the same quarter of 2019.

Gross operating income decreased to €136m from €154m.

The impact of a low-interest-rate environment on Wealth Management coupled with the pandemic’s impact on Real Estate Services led to a 9% year-on-year decrease in the unit’s revenues to €734m.

Operating expenses dropped 8% to €598m, driven by a fall in Real Estate Services costs and transformation measures mainly in Asset Management.

Total assets under management (AuM) reached €1.11trn at the end of September 2020.

The figure marks a 1% fall from the December-end 2019, driven by a strong fall in the financial markets in Q1 2020, offset by a rebound in Q2 and Q3.

AuM broke down as follows: Asset Management (€474bn, including €29bn from Real Estate Investment Management), Wealth Management (€380bn) and Insurance (€256bn).

Net inflows reached €30.4bn in the year-to-date. The firm attributed the performance to Asset Management’s “very strong” inflows in money-market as well as medium and long-term vehicles and good Wealth Management inflows in Europe and Asia.

Group highlights

At a group level, the French bank’s attributable net income for the three months to September 2020 was €1.89bn, down 2% from €1.94bn.

The group’s pre-tax income dipped 5% €2.67bn from €2.8bn over the period. Revenues remained almost stable at €10.88bn.

The performance was supported by the Corporate and Institutional Banking unit, which registered a 17% year-on-year growth in revenue. Fixed-income trading revenue surged 36%.

BNP Paribas CEO Jean-Laurent Bonnafé said: “In an economic context featuring different dynamics across regions and sectors, BNP Paribas demonstrates its high resilience thanks to its financial solidity, its diversification, and the power of execution of its platforms.”



Topics in this article:
NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Wednesday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to Private Banker International