First half 2005
Substantial rise in profitability
– Net income group share EUR 3,176 MN (+ 27.5%)
– Annualised ROE after-tax 21.8% (+ 2.8 pts)
Second quarter 2005
A new rise in revenues and net income
– Net banking income EUR 5,171 MN (+3.3%)
– Net income group share EUR 1,456 MN (+4.7%)
Good operating performances
(These figures do not include BNP Paribas Capital)
– Net banking income + 6.5%
– Gross Operating income + 3.7%
– Operating income + 14.5%
Sharp rise in all the core businesses
– Retail Banking NBI + 7.8%
– Asset Management and Services NBI + 12.9%
– Corporate and Investment Banking NBI + 9.3%
* All growth rates and comparisons indicated in this press release are on a comparable accounting standard basis, except where expressly otherwise provided. These figures are the result of a comparison of the second quarter and the first half 2005 results calculated on the basis of the IFRS accounting standards as adopted by the European Union for 2005 and a simulated restatement of second quarter and the first half 2004 applying the same standards. The corresponding simulated figures have not been audited. Figures for the second quarter 2004 and for the first half 2004, restated based on the applicable 2004 IFRS accounting standards, are also provided in the detailed annexes but are not directly comparable to second quarter 2005 and first half 2005 figures respectively due to differences with applicable 2005 IFRS accounting standards.
On 2 August 2005, BNP Paribas’ Board of Directors, chaired by Mr. Michel Pébereau, reviewed the Group’s results for the second quarter of the year as well as the accounts for the first half of the year.
SHARP RISE IN PROFITABILITY
BNP Paribas posted in the second quarter 5,171 million euros in quarterly net banking income, up 3.3% compared to the second quarter 2004. Not including BNP Paribas Capital (1), net banking income grew 6.5 %, operating expenses and depreciation 8.3%, and gross operating income 3.7%.
For the core businesses alone, net banking income grew 9.1%, with the following breakdown:
– Retail Banking: +7.8%
– Asset Management and Services: +12.9%
– Corporate and Investment Banking: +9.3%
This substantial growth in the core businesses is the combined result of organic growth and growth driven by acquisitions. Operating expenses and depreciation reflected this dynamic all the whilst remaining under control: up 7.8% compared to the second quarter 2004. The gross operating income of the core businesses rose 11.1%
The net addition to provisions (109 million euros) was 59.8% less than that in the second quarter 2004, in an environment that remained favourable in terms of risk.
The net income group share, 1,456 million euros, was up 4.7% compared to the second quarter 2004.
For the first half of the year as a whole, net income group share totalled 3,176 million euros (+27.5%), or a half-yearly net earnings per share of EUR3.84 (+31%). Annualised return on equity came to 21.8%, up 2.8 points compared to the first half of 2004.
(1) Based on IFRS accounting standards, capital gains realised on investments, in particular private equity investments, are to be included in net banking income. Insofar as BNP Paribas Capital’s capital gains vary widely from one quarter to the next, it is important to analyse changes in net banking income and in gross operating income, excluding BNP Paribas Capital.
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