The Board of Directors of BNP Paribas met on 3 May 2011. The meeting was chaired by Michel Pébereau and the Board examined the Group's results for the first quarter of the year.
STRONG PROFIT-GENERATION CAPACITY ACROSS ALL THE OPERATING DIVISIONS
Thanks to its active role in the financing of the economy and to a lower cost of risk, BNP Paribas Group achieved very good performance in the first quarter 2011.
Revenues, driven by sustained business across all the operating divisions, totalled 11,685 million euros, up 1.3% compared to the high level in the first quarter 2010, which was marked by the exceptional performance of the Capital Markets businesses.
At 6,728 million euros, operating expenses edged up 2.0% compared to the first quarter 2010. Excluding the impact of the introduction in 2011 of systemic taxes that were passed on to all the business units (45 million euros in the first quarter 2011), they would have been up only 1.3%.
Gross operating income rose 0.5% for the period to 4,957 million euros. The Group's cost/income ratio was 57.6%, up only 0.4 point compared to the first quarter 2010 which benefited from CIB's exceptionally low cost/income ratio. The ratio improved in Retail Banking (-0.4 point at 58.3%) and in all of the Investment Solutions business units (in total: -1.4 points at 69.3%). CIB's cost/income ratio, at 52.7% (+3.3 points), remained among the best in the industry.
As part of the continuing process of integrating the entities of BNP Paribas Fortis and BGL BNP Paribas, 135 million in synergies were achieved this quarter, bringing total aggregate synergies to 733 million euros out of the 1.2 billion euro revised target set for 2012. This performance is in line with the new plan announced at the end of 2010.
At 919 million euros or 54 basis points of outstanding customer loans, the Group's cost of risk continued its decline in an improved global economic environment. It was down by 418 million euros and 243 million euros respectively compared to the first and fourth quarters 2010. At 34.1 billion euros, doubtful loans On and off balance sheet gross doubtful outstandings, net of guarantees. declined by 1.5 billion euros since 31 December 2010.
The operating performances of all the Group's business units, combined with the impact of the integration of BNP Paribas Fortis and the fall in the cost of risk, drove pre-tax income up by 7.0% compared to the first quarter 2010 to 4,109 million euros, including the negative impact of the impairment charge on equity investments in Libya and Ivory Coast (-41 million euros), booked in other non-operating items.
BNP Paribas posted net profits (attributable to equity holders) of 2,616 million euros, up 14.6% compared to the first quarter 2010. The annualised return on equity was 15.1% compared to 14.4% in the first quarter 2010.
Net earning per share for the first quarter was 2.12 euros, up 13.6% compared to the first quarter 2010. The net asset value per share, 57.7 euros, was up 9.1% for the period and 4.0% compared to 31 December 2010.
Read the Press Release "BNP Paribas Group: Results as at 31 March 2011"
View the slides of the presentation
View the slides of Financial Stability Board