- gross operating income: EUR 1,903 MN (+7.2%)
- operating income: EUR 1,688 MN (+15.9%)
- net income group share: EUR 1,352 MN (+ 49.9%)
- sharp rise in the results of all the core businesses
FIRST HALF 2004:
* Soaring profitability: annualised ROE: 18.5% (+ 4.5 points)
* Sustained organic growth in all the core businesses
- rise in the risk weighted assets (group total: + 12.4%)
- enhanced competitive positions
* Significant acquisitions:
- 2 billion euros in agreements/MOU announced since the beginning of the year
On 30 July 2004, BNP Paribas's Board of Directors, chaired by Michel Pébereau, reviewed the Group's results for the second quarter of the year as well as the semester's accounts.
RESULTS UP SHARPLY.
In the second quarter 2004, the recovery of the economy was confirmed and was more marked in the United States than in Europe with, as a corollary, a rise in long-term interest rates and a stabilisation of the dollar vis-à-vis the euro. Equity markets consolidated their recovery which commenced in 2003 but did not rise further.
BNP Paribas capitalised on this mixed environment, posting 4,743 million euros in quarterly net banking income, up 2.0% compared to the second quarter 2003 level. This boost in revenues was accompanied by a decline in operating expenses and depreciation, down 1.3% compared to the second quarter 2003 level.
Gross operating income thus totalled 1,903 million euros, up 7.2% compared to the second quarter 2003. The cost/income ratio, which improved 1.9 points at 59.9%, is the Group's best performance ever.
Net additions to provisions (215 million euros) were 32.4% below the second quarter 2003 level.
The quarter's operating income thus totalled 1,688 million euros, up 15.9% compared to the second quarter 2003.
Disposals of equity investments, consistent with the Group's strategy, generated higher capital gains (207 million euros) compared to the second quarter 2003 (104 million euros).
Corporate taxes were down substantially (-16%) compared to the second quarter 2003, which saw the one-off impact of the listed real-estate company Klepierre's change in tax status. Furthermore, the disposal of Cobepa in the second quarter 2004 substantially reduced the capital gains tax for the full half year. The net income, group share, at 1,352 million euros, soared (+49.9%).
Annualised return on equity was 18.5% for the full first half of the year.
All the Group's core businesses were instrumental in this performance and posted sharp rises in their incomes.
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