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BNP Paribas Group: First nine months results



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56% RISE IN THE NET INCOME
ATTRIBUTABLE TO THE GROUP (1)
(20.1 % BEFORE THE RESTRUCTURING PROVISION)




At its 15 November 2000 meeting, BNP Paribas's Board of Directors examined BNP Paribas Group's performance for the first nine months of the year.

3 398 million Euros in Net income attributable to the group

Net income attributable to the Group totalled 3 398 million Euros, up 56% compared to BNP + Paribas pro forma results for the same period in 1999 (20.1% before the restructuring provision). Taken individually, the third quarter showed net income attributable to the Group up 29.9% over the third quarter 1999.

After an exceptional combination of positive factors in the first quarter of this year, the economy remained upbeat but banking and financial services were affected by the rise in interest rates. In this context, the Group's net banking income (12 207 million Euros) rose 12.3% compared to the BNP + Paribas' baseline reference for the first three quarters of 1999 (7.7 % with constant scope and exchange rates).

Operating expenses and depreciation rose 9.7% due in part to the rise in the US dollar and the Group's development. With constant scope and interest rates, the increase was only 5.4%. The Group's cost/income ratio was 63.4% (64.9% for the same period in 1999).

Gross operating income, at 4,470 million Euros, was up 17.0%, due to different growth rates for net banking income and operating expenses and depreciation.

Net provisions for the period rose 10.1% compared to 1999, at 739 million Euros. Operating income rose 18.4% to 3,731 million Euros (+ 13.9 % with a constant scope and exchange rates).

Like last year, non-operating items (1,593 million Euros, + 37.2%) were virtually equal to income tax expenses (1,584 million Euros, + 29%), such that the Group's net income, which totals 3,740 million Euros (+ 21.3%), is close to the operating income.

The integration of BNP and Paribas' teams and the resulting synergies are being achieved more rapidly than expected.

All our core businesses contribute substantially to improving the pre-tax income.



(1) Rise compared to BNP Paribas' pro forma income for the first three quarters of 1999 (BNP income + Paribas income, presented in accordance with the new consolidated accounts methods). In the first half of 1999, a provision for restructuring totalling 595 million Euros was created in BNP's accounts.