BNP Paribas has reported a good quarter for corporate and institutional banking (CIB) with revenues, at €3.2bn, up by 4.6% between April 1 and June 30, 2017. The French bank's Q2 2017 results do not include the impact of the acquisition of ING structured notes book which has an estimated notional value of €5bn and will be acquired by BNP Paribas later this year.

At €1.5bn, Global Markets' revenues were down slightly (-2.3%) compared to the second quarter of 2016 in a lacklustre environment for Fixed Income, Currencies and Commodities (FICC), according to the bank, but 'good client volumes in equity derivatives'. The value at risk (VaR), which measures and quantifies market risks, was still very low (€27m), the bank said.

The revenues of FICC, at €883m, were down by 15.9% compared to the second quarter 2016 with low business in the markets for all the segments, contrasting with the favourable context in the second quarter 2016. BNP Paribas confirmed its leading position in bond origination ranking number one for all bond issues in euros and number nine for all international bond issues. At €640m, the revenues of the Equity and Prime Services business were up very sharply (25.7%) with a good performance of Prime Services and of the equity derivative business.

Securities Services revenues, at €498m, rose by 7.9% compared to the second quarter of 2016 while Corporate Banking's revenues, at €1.2bn, were up by 13.5% with growth in Europe, Middle East and Africa (Emea) and Asia-Pacific regions and stability in the Americas region, according to the bank.

In its domestic market France, BNP Paribas was the fourth most active issuer of structured products during the second quarter, with a share of 15% of the market, according to SRP data. The bank sold 30 products worth €626m during the quarter, up from 23 products with sales of €328m in the same period last year. This quarters products were sold via a wide range of distributors including AltaProfits, Arkea, Astoria, Equitim, Exclusive Partners, Hedios Vie, Many for Money, Privalto and Swiss Life Banque Privée. The bank's Ambrosia Avril 2025, an eight-year life wrapped fund which struck on April 25, was distributed via BNP Paribas Investment Partners which as of June 1 rebranded as BNP Asset Management.

French retail banking (FRB) posted €371m in pre-tax income, down 6.8% compared to the second quarter of 2016 while revenues, at €1.6bn were down 0.1%.

In Belgium, BNPP was market leader during the quarter, with a share of 29% of the total market. The bank issued 22 structured products worth a combined €259m between April 1 and June 30, 2017 (Q2 2016: 25 products/€335m). Thirteen products were sold via the BNP Paribas Fortis distribution channel while the bank's products were also distributed via BPost Bank (six), AG Insurance (two) and Crelan.

The bank's best-selling product during the quarter was Smart Invest Bon Europe ESG Leaders 2027/3, a joint effort with AG Insurance, which collected €42.7m during its subscription period.

Belgian retail banking (BRB) reported good growth in mutual funds outstandings (up 8.6% compared to June 30, 2016) and private banking reported 6.5% growth in assets under management (AUM). BRB generated €325m euros in pre-tax income, up by 7.7% compared to the second quarter 2016.

In Italy the bank issued 34 structured products through its BNP Paribas Arbitrage Issuance vehicle, down from 67 products that were issued during the same period in 2016. All products issued in the quarter put full capital at risk, apart from BNPP Jet Cap Protection Compo, a five year 80% capital protected product which offered 200% participation in the positive performance of S&P GSCI Gold Index, capped at an overall maximum return of 130%.

BNL banca commerciale, the bank's Italian retail network, reported a rise in deposits of 10.7% and a rise in life insurance and mutual fund outstandings of 6.4% and 13.3%, respectively, compared to June 30, 2016, while private banking reported a 5.3% growth in AUM. BNL generated €65m in pre-tax income (down 0.3% compared to the second quarter of 2016).

In Germany, where the bank achieved a market share of 8%, BNP Paribas is especially active in the leverage and flow segment. During the quarter BNPP issued 40,028 products, slightly down from the 46,310 products seen during the same quarter in 2016. Of these, more than 26,000 were leverage products, 6,300 products were reverse convertibles such as express and discount certificates while another 5,500 products were bonus and capped bonus certificates.

Insurance and Wealth and Asset Management's AUM reached €1,033bn as at June 30, 2017 (up 6.8% compared to June 30 2016). Assets rose by €23bn compared to December 31, 2016 due in particular to good net asset inflows totalling €16.2bn, according to the bank. As at June 30, 2017, assets under management broke down as follows: Asset Management (€421bn), Wealth Management (€355bn), Insurance (€232bn) and Real Estate Services (€24bn).

'Second quarter results showed dynamic business activity and good income growth,' said Jean-Laurent Bonnafé (pictured), CEO, BNP Paribas. 'Revenues of the operating division grew by 2.5% compared to the second quarter of 2016 with IFS (International Financial Services) and CIB making good progress.'

Click in the link to view the BNP Paribas results.

Related stories:
BNP Paribas agrees to buy ING's structured products book

BNP Paribas to develop new range based on Solactive's 'deep value' series

BNP Paribas IP launches 2020 strategic growth plan, rebrands as BNP Paribas AM