(AOF) – Despite the pressure exerted by inflation on the European Central Bank to adopt a more vigorous restrictive monetary policy, which is reflected in a rise in long rates in Europe, the banking sector is shrinking. Indeed, if it is generally positively correlated with rates, such an action by the ECB would deteriorate the economic prospects of the Old Continent. However, the banking sector is also cyclical. In Paris, the BNP Paribas share fell 2.06% to 53.18 euros.
In 2022, the French bank launched “Growth, Technology, Sustainability 2025”, an ambitious growth plan aimed at continuing the group’s development by strengthening technology and the ecological transition at the heart of its strategy at the service of its customers, the economy and society.
This year, to support the implementation of this plan, the bank plans to recruit 7,000 employees in France, particularly in trades serving retail and business customers, IT (data, cloud, cybersecurity, etc.) .) as well as support and control functions (audit, compliance, risks, etc.).
The group thus wishes to welcome more than 3,000 new employees on permanent contracts, including 2,000 young graduates, 2,000 work-study students, 1,500 trainees and 300 VIEs throughout France.
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– Bank born in 1822, strengthened in 1999 by the merger with Paribas, 1st in France and 7th worldwide;
– Net banking income of €46.26 billion generated by international financial services (34%), banking networks (35%) and investment banking (31%);
– More than 80% commitments in “rich” countries: France for 32%, Belgium & Luxembourg for 16%, Italy for 9%, other European countries for 19%, North America for 13%, Asia-Pacific for 6 %;
– Business model based on diversification in locations and businesses, synergies and cooperation between businesses, on operational innovation and for customers;
– Capital held by the Belgian State (7.7%), the Grand Duchy of Luxembourg (1%) and the employees (4.4%), with a board of directors of 13 members chaired by Jean Lamierre, Jean- Laurent Bonnafé being Managing Director;
– Solid financial position – CET 1 ratio of 12.4%, return on equity of 13.4% and liquidities of €468 billion.
– GTS 2025 plan for growth, technology and sustainability aimed at:
– 11% return on equity, annual growth of 3.5% in NBI, self-financing of transformation and investments and distribution rate of 60%, including at least 50% in dividends:
-Highest rated innovation strategy in the sector and focused on digitalization:
– internally: support for intrapreneurs (Lux Future Lab, People’sLab4Good, Bivwak),
– in the offer to customers: 4.4 million “digital” customers, leader in France in digital functionalities, world-leading platforms in government bonds, forex or swaps and in the top five European neo- banks with Hello Bank!,
– partnerships: global Plug and Pay platform for accelerating start-ups;
– Environmental strategy aiming to become the world leader in sustainable finance (2nd worldwide in green bonds and 1st in Europe, 1st in Europe for financing renewable energy projects):
– objective of carbon neutrality in 2050,
– by 2025, €350 billion mobilized in sustainable loans and bond issues and €300 billion in sustainable investments;
– alignment of the loan portfolio with the trajectory of the Paris agreement (end of coal financing in 2030 in Europe and deployment of the Pacta methodology),
– advances in green microfinance,
– funding of €4 billion for biodiversity;
– Towards joint ventures with the financing subsidiary of Stellantis, operating in Germany, Austria and the United Kingdom.
– Change in net book assets, €78.7, to be compared with the stock market price;
– Continued control of management fees and the cost of risk;
– Russia-Ukraine war: very marginal impact –depreciation on the Ukrainian subsidiary- and interruption of services to Russian customers;
– Use of funds from the sale of the US subsidiary BoW – €14.4 billion split between share buyback program, investments in technologies and targeted acquisitions;
– After a dynamic 1st quarter, confirmation of 2025 objectives;
– Share buyback programs and 2021 dividend of €3.67, i.e. 50% of the profit.