BNP Paribas has reported a positive performance of its structured products in 2Q15, according to the French bank’s quarterly results.
Revenues for the bank’s equity and prime services unit increased by 22.2% to €621m compared with the second quarter of 2014, mainly as a result of sustainable volumes in flow and strong demand for structured products, said the bank.
SRP data shows an increase in BNP’s market share across its core markets of Belgium and Italy; Germany remained stable while France saw a slight decrease.
In Belgium, the French bank saw its market share rise to 24% in the second quarter of 2015, up 10% year-on-year (y-o-y), and up 1% from the previous quarter. This puts the bank behind market leaders KBC and Belfius only, who dominate the market with shares of 36% and 21%, respectively. Its 14 structures with strike dates between April and June 2015 had a sales volume of €174m.
The vast majority of BNP’s structured notes in Belgium are issued via the bank’s BNP Paribas Fortis Funding vehicle, with a small number – mainly autocalls – issued by BNP Paribas Arbitrage. The unit-linked life insurance products (Tak23) are sold in collaboration with AG Insurance.
In Germany, where the bank’s main focus is on the certificate market, BNP increased its issuance by 62%. The bank launched 56,133 leverage and flow certificates during 2Q15, up from 34,574 leverage and flow certificates in the same period last year.
In Italy and France, BNP had a market share of 25% and 9%, respectively. In Italy, 52 structured certificates worth €736m were issued via the bank’s subsidiary BNL during the second quarter of 2015; in France, 15 structured products with sales of €138m were seen during the same period.
The bank saw its total revenue rise by 15.8% y-o-y to €11bn in 2Q 2015. Revenues for corporate and institutional banking (CIB), at €3bn, rose by 15.6% compared with the second quarter of 2014, while at €1.6bn, revenues for the global markets division, BNP Paribas capital markets portal to pre-trade, execution and post trade tools and services, were up by 24.5% y-o-y.
Click here to read the second quarter 2015 results for BNP Paribas and here to read the consolidated financial statements for the first half of 2015.
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