BNP Paribas sees Q2 decline in securities services revenues
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BNP Paribas sees Q2 decline in securities services revenues 31 July 2020Paris Reporter: Rebecca Delaney
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BNP Paribas has reported a 5.9 percent year-on-year decrease in its securities services revenue totalling €561 million, but an increase of 3.6 percent when excluding the effect of a specific transaction in Q2 2020.
Although average assets made a year-on-year decrease of 3.5 percent, this was a direct result of the fall in market values in March owing to the COVID-19 pandemic, and later saw a 5.5 percent market recovery compared to March 2020.
Activity levels increased as BNP Paribas continued its commercial development in new mandates, such as Axa in Belgium and the launch of a new artificial intelligence solution for analysis and client reporting of assets under custody.
Assets under management totalled €1,085 billion at the end of Q2, marking a 3.4 percent decrease from 31 December 2019 following the fall in financial markets and an unfavourable foreign exchange effect.
Net asset inflows stood at €10.8 billion, particularly from wealth management services from large clients in Europe and Asia.
BNP Paribas noted that the firm was effectively mobilised during the pandemic, with a flexible set up that was able to absorb transaction volumes at 36.9 percent higher than Q2 2019.
In addition, the firm established support networks for new funds of institutional clients during the pandemic.
Jean-Laurent Bonnafé, CEO of BNP Paribas, commented: “Our diversified banking model has proven its effectiveness in supporting clients and the economy in front of an unprecedented health crisis.”
“BNP Paribas was able to quickly mobilise its teams, resources and expertise to meet the needs of its clients across Europe and beyond. This ability to broadly finance the economy is the result of long-term work undertaken by the group to serve its individual, corporate and institutional clients.”
Bonnafé continued: “It is a reflection of its financial soundness, the diversification and integration of its businesses, its close relationships with its clients, its prudent risk management and the execution power of its platforms.”
“All our forces remain mobilised to ensure a solid and sustainable economic recovery.”
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