The bank’s revenues were up by 3.2% compared to the first quarter of 2018

BNP Paribas (BNPP) has reported business growth in the three operating divisions – it posted in particular an increase in its corporate and institutional banking (CIB) business due to the ‘gradual upturn in customer activity’.

CIB’s revenues, at €3 billion ($US3.35 billion approximately), rose by 3.5% compared to the first quarter of 2018.

At €1.5 billion, global markets’ revenues were up 1.7% year-on-year. The quarter contrasted with more active rates market in Europe and the gradual normalisation of the situation of the equity markets after the ‘extreme conditions’ at the end of 2018, according to the bank.

Revenues in fixed income, currencies and commodities (FICC), at €1 billion, were up by 28.5% with a strong performance across all segments and, in particular, a good growth in rates and forex, where the business rebounded in emerging markets.

FICC also delivered good performances on multi-dealer platforms where it ranked number one by volume for interest rate swaps in euros, number three on government bonds in euros and number five on foreign exchange.

Equity and prime services’ revenues (€488m) were down 29.5% compared to a high base in the same quarter last year but were in strong rebound compared to the fourth quarter 2018, which had recorded the impact of extreme market movements at the end of the year.

BNP Paribas sold 421 structured products with combined sales of US$2.2 billion (excluding flow and leverage products) across 17 different jurisdictions in the first quarter of 2019, according to SRP data (1Q 2018: US$2.4 billion from 361 products).

Of these, 117 products worth US$630m were targeted at institutional investors.

In Italy, it collected US$369m from 35 structures while in its domestic market, France, the bank sold 56 products worth US$343m, distributed via, among others, Aprep Diffusion, Crystal Partenaires, Equitim, Privalto and Swiss Life Banque Privée.

Other European markets where the bank remained a strong foothold where Belgium (US$86m), Poland (US$40m), Spain (€26m), Ireland (€24m) and Germany (US$50m from 20 products). In the latter BNPP also listed 6,500 leverage certificates and more than 12,000 flow certificates on the exchanges of Frankfurt and Stuttgart.

Outside of Europe, it sold 79 products worth US$337m in the US, which were available via Advisors Asset Management, First Trust Portfolios and FISN. A further 52 products (US$173m) were targeted at private banking investors in Taiwan while nine products worth US$60m were sold in Japan.

The group’s liquid assets reserve immediately available totalled €335 billion, which is equivalent to more than one year of room to manoeuvre in terms of wholesale funding.

The 2019 wholesale medium/long term funding programme includes €33 billion worth of senior debt, of which €14 billion non-preferred senior (NPS) debt, and €3 billion worth of capital instruments. Almost two thirds of the NPS debt programme was already completed at the end of March, including a 5.5-yeargreen NPS bond (€750m) issued on February 21 2019.

Assets under management as of March 31 2019 could be broken down as follows: asset management (€421 billion), wealth management (€377 billion), insurance (€248 billion) and real estate services (€429 billion).

Click the link to read the full BNP Paribas first quarter 2019 results and the presentation.