BNP Paribas has reported a 1.5% rise in revenues of the operating divisions in full year 2017, despite the low interest rate and a lacklustre market environment.

Revenues for the Global Markets division, at €5.6bn were down by 1.2% compared to 2016 but up by 0.8% at constant scope and exchange rates thanks to the continued strengthening of commercial positions while the value at risk (VaR), which measures market risks, was still very low (€26m), according to the bank. Revenues for fixed income, currencies, and commodities (FICC), at €3.4bn, were down by 8.6% compared to 2016 with low volatility and limited client volumes in all segments. At €2.1bn, equity and prime services' revenues rose for their part sharply (+20.9%), driven by good development of prime services and a pick-up in the equity derivatives business, according to the bank.

BNP Paribas' wholesale medium/long term (MLT) funding programme for 2017 comprised of €2.1bn capital instruments issued including a $750m, 5.125% perpetual non-call Tier 1, issued in November. The bank issued €30.9bn worth of senior debt of which €14.3bn of structured products; €2.1bn of senior secured debt; and €11.1bn of non-preferred senior debt issued in various currencies (EUR, USD, JPY, SGD, AUD). The average maturity of the senior debt was 4.5-years.

In Europe, BNP Paribas was the most active provider of structured products during 2017, according to SRP data. The bank issued almost 220,000 securities worth €5.4bn between January 1 and December 31, 2017, the vast majority of which were leverage and flow certificates targeted at retail investors in Germany. In Italy the bank launched 358 structured products while in France, 86 products were issued via the bank, mainly autocallables and including 34 products from Privalto.

Belgium, another core market for BNPP, saw 53 products worth a combined €780m launched by the bank last year. The Belgian market distinguishes itself from other European markets by the fact that the number of proprietary or house indices used as underlying for structured products is relatively high and in 2017 BNP Paribas issued products linked to, among other, the Dynamic Deep Value Europe, Solactive Global Infrastructure Select 40 and the World Sustainable Development Goals Index in Belgium.

The total notional amount of trading equity derivatives stood at €1.4tr at December 31, 2017, compared to €1.6tr at the end of 2016. Of these, €856bn were exchange traded equity derivatives (2016: €955bn); €591bn were traded over-the-counter (OTC) (2016: €664bn); and €940m were OTC cleared through central clearing houses (2016: €5.7bn).

The net outstanding for listed securities at the end of 2017 was €4.9bn down from €5.9bn on December 31, 2016 while the total outstanding unlisted securities, at €9.3bn, also decreased from the previous year (2016: €13.5bn).

The redemption value of debt issued and designated as at fair value through profit or loss at December 31 2017 was €50.4bn (2016: 52.3bn).

'With €7.8bn in net income, BNP Paribas delivered a good performance in 2017, thanks to its integrated and diversified model in service of clients,' said Jean-Laurent Bonnafé (pictured), in a statement. 'There was sustained development in the business activities of the operating divisions supported by a stronger economic growth in Europe, costs are under control and the cost of risk is significantly lower.'

Click the link to view the BNP Paribas full year 2017 results.

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