- A major operation:
- Retail Banking: two new wealthy domestic markets, Belgium and Luxembourg, and two markets with strong growth potential, Turkey and Poland
- Investment Solutions: Eurozone number one in Private Banking and European number five in Asset Management, benefits for Securities Services and Insurance businesses
- Corporate & Investment Banking: Larger corporate client base and stronger European platform
Resulting in the number one banking group in the Eurozone by deposit base
- A value enhancing industrial project
- Earnings accretive as early as 2010 before restructuring costs
- Tangible book value per share accretion of €2.2 per share as at 30.09.09 (1)
- Return on invested equity >20% by 2012
- The best solution for all stakeholders and one that positions the combined Group for growth and value creation in the new environment
Integration Proceeding Well
On 12 May 2009 BNP Paribas became the majority shareholder of BNP Paribas Fortis (ex-Fortis Bank Belgium) and BGL BNP Paribas (ex-Fortis Bank Luxembourg) and BNP Paribas Fortis acquired a 25% stake in AG Insurance (ex-Fortis Insurance Belgium). Since that date, employees of the new group have been working hard together towards the creation of a Eurozone financial services leader that serves nearly 20 million clients. BNP Paribas has established successful joint working groups, new governance procedures and re-branded significant parts of the business, measures that have instilled renewed confidence in and improved performance across BNP Paribas Fortis' businesses.
The integration project is proceeding well. BNP Paribas Fortis businesses have stabilised assets flows and even gained inflows in retail banking. They have contributed 538 million euros to Group profits from 12.05.09 to 30.09.09. They have also significantly improved their risk profile by reducing RWA assets in corporate and investment banking over the same period.
Synergies Raised to 900 million euros
Synergies are expected to reach an annual amount of 900 million euros by 2012, of which 850 million euros in cost synergies that are driven through Organisational, IT, Facility and Procurement and Human Resources measures. Staff reduction will be mainly the result of natural attrition and voluntary departures.
(1) proforma of rights issue and repayment of non voting shares
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