BNP Paribas revenue rises in all operating divisions
(5 August 2015 – France) BNP Paribas posted total revenues for the first half of the year of €22,144 million (A$33,242 million), up 13.7 percent compared to the first half of 2014.
The result includes the one-off impact of over €117 million in Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA).
The one-off revenue items in the first half of 2014 totalled €116 million.
The revenues of the operating divisions were up sharply (+13.0 percent) illustrating the Group’s very good performance in the first half of the year: they were up by +2.5 percent for Domestic Markets (1), +20.5 percent for International Financial Services and +19.7 percent for CIB.
Operating expenses, at 14,891 million euros, were up by 13.1 percent.
They include the one-off impact of Simple & Efficient transformation costs and the restructuring costs of the acquisitions made in 2014 which totalled €347 million (€340 million in the first half of 2014).
They also include the €245 million impact of the first contribution to the Single Resolution Fund, whose entire contribution for 2015 was fully booked in the first quarter of the year based on the IFRIC 21 “Levies” interpretation.
The operating expenses of the operating divisions were up by 11.0 percent, resulting in a largely positive jaws effect (2 points).
They were up 1.7 percent in Domestic Markets (1), 20.6 percent in International Financial Services and 13.4 percent in CIB.
Gross operating income was up by 14.8 percent, at €7253 million.
It increased by 16.7 percent for the operating divisions.
The Group’s cost of risk was slightly up by 0.4 percent, at €1947 million, due to the scope effect related to the acquisitions made in 2014.
It was down excluding this effect. It included in the first half of 2014 a one-off €100 million provision due to the exceptional situation in Eastern Europe.
Non operating items totalled €931 million.
They include in particular a dilution capital gain from the merger between Klépierre and Corio and a capital gain from the sale of a 7 percent stake in Klépierre-Corio for a total amount of €487 million as well as a €94 million capital gain from the sale of a non-strategic stake.
Non-operating items totalled €250 million in the first half of 2014.
The Group had separately booked in the first half of last year a total of €5,950 million in costs related to the comprehensive settlement with the United States authorities.
Pre-tax income thus came to €6237 million (-€1,320 million in the first half of 2014).
It was up very sharply by 26.8 percent for the operating divisions.
The Group generated €4203 million in net income attributable to equity holders (-€2,815 million in the first half of 2014).
Excluding the impact of one-off items, it was up sharply by 14.1 percent, illustrating the Group’s very good performance in the first half of the year.
Return on equity, excluding exceptional items, was 10.1 percent.
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