BNP Paribas Q2 2019 net profit beats analyst forecasts with a 3.1% rise to €2.47bn.
Revenues inch up by 0.2% from the year ago quarter to €11.2bn.
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Other highlights include a 20 basis point increase in the bank’s common equity Tier 1 ratio to 11.9%.
Outstanding loans increase by by 4.2% from a year ago in BNP’s domestic markets. French retail banking hits include a 5.1% rise in loans. Meantime, French retail deposits are up by 10.6% driven by strong growth in current accounts. At the same time, private banking growth results in net asset inflows of €1bn.
BNP’s Belgian retail banking unit posts loans up by 4.6% from a year ago. Deposits are up 5.2% again with strong growth in current accounts.
On the other hand, the bank’s Italian unit posts more modest growth. Loans are up by only 1% in a lacklustre economic environment.
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By GlobalDataOther less positive metrics include a slight rise in the group wide cost-income ratio. BNP ends the second quarter with a cost-income ratio of 66.2% up 40 basis points y-o-y.
BNP Paribas Q2 2019 channel highlights
Branch rightsizing continues with 333 BNP Paribas branches closed since the start of 2017.
BNP Paribas ends the second quarter with 1,841 branches in France, down by 123 outlets in the past 18 months. Over the same period the bank has reduced its Belgian branch network by 145 units from 785 to 640. Meantime, the Italian branch network is down by 65 outlets to 722 branches.
Digital highlights include the launch of instant payments in France, Belgium and Italy.
BNP Paribas active mobile banking users are up by 22% from the year ago quarter to more than 4 million.
At the same time BNP’s LyfPay is the most downloaded app in France in the mobile payment category. The universal mobile payment solution has already been downloaded over 2 million times.
Another highlight is BNP’s Nickel, offering cut price banking across France’s network of tobacconists. The bank is well on the way to meeting its target of Nickel serving 2 million customers by 2020. Nickel ends the second quarter with 1.3 million customers, up by 368,000 from a year ago.
