Third Quarter 2006
STRONG GROWTH ACCELERATED BY ACQUISITIONS, ESPECIALLY IN EUROPE (BNL, LASER COFINOGA)
• Group revenues: €6,829mn (+25.1%)
VERY GOOD OPERATING PERFORMANCES
• Gross operating income: +22.5%
• Operating income: +15.7%
SHARP RISE IN NET INCOME
• Net Income Group Share: €1,675mn (+24.9%)
• Net Income Group Share: €5,589mn (+23.7%)
• Cost/Income Ratio : 59.4% (improved 0.4 pts)
• Annualised after-tax ROE: 21.2%
• Earnings per Share (9 months): €6.2 (+14.2%)
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On 15 November 2006, BNP Paribas' Board of Directors, in a meeting chaired by Michel Pébereau, examined the Group's results for the third quarter and the first nine months of the year.
Powerful revenue growth and results up substantially
In the third quarter of this year, BNP Paribas made 6,829 million euros in revenues, up 25.1% compared to the third quarter 2005. This sharp growth is due to recent acquisitions, especially BNL in Italy, as well as to organic growth in all the core businesses: at constant scope and exchange rates, revenues rose 6.2%.
This growth in the core businesses was supported by substantial recruitment and job creation. Since the beginning of the year, BNP Paribas has recruited 7,600 people worldwide, including 3,300 in France.
The trend in operating expenses reflects this growth dynamic: +26.7% compared to the third quarter 2005. Gross operating income thus jumped 22.5% to 2,568 million euros (+5.1% at constant scope and exchange rates).
Provisions (264 million euros) were increased by 152 million euros by the effect of new acquisitions. At constant scope and exchange rates, provisions rose only 6.3% and remain stable as a percentage of weighted assets, at 13 bps, in a risk environment still broadly favourable.
Net income group share, at 1,675 million euros, was up 24.9% compared to the third quarter 2005.
For the first nine months of 2006, the net income group share totalled 5,589 million euros (+23.7%). This is the best level of all the eurozone banks. Annualised return on equity came to 21.2%.
The 59.4% cost/income ratio improved by 0.4 points compared to the first nine months of 2005.
Despite the rise in the number of shares as a result of the recent capital increase, earnings per share in the first nine months of the year rose from 5.4 euros to 6.2 euros (+14.2%).
The international capital adequacy ratio was estimated at 11.0% as at 30 September 2006 and the Tier 1 ratio was estimated to be 7.8%.