Bnp Paribas closes a record year, clearly the best since the 2008 financial crisis. The French banking group, which also owns the Italian Bnl, recorded in 2019 a net profit of 8,2 billion euros: yet the result of what its own managers have defined as the "Jp Morgan of the euro area" does not entirely convince investors. In fact, although the profit has risen by almost 9%, more than the analysts' forecasts, the stock on the Paris Stock Exchange does not take off, indeed it travels on parity after an opening in negative territory.
The bank's revenues also rose, by 4,6% from 42,5 to 44,6 billion, mainly driven by the double-digit growth (+11%) of the investment bank, which alone had a turnover of 12 billion euros . The “International financial services” division also did well grows by 6,9% to 17,2 billion, confirming itself as the core business, while according to what was communicated by Bnp, the retail business slackened a bit, penalized by very low interest rates and practically stationary at 15,2 billion euro in turnover, and whose profit rose only by 3,3%.
Another negative note, which will have influenced the prudence of investors, is that Bnp Paribas has reduced the profitability target for 2020, warning that retail network revenues in Europe could decline moderately this year. “The monetary policy adjustment in the summer of 2019 led to a less favorable interest rate environment than anticipated in early 2019,” the transalpine bank said in a statement.
