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BNP Paribas, strongest rise in the CAC 40 at mid-session on Tuesday, June 14, 2022 – – 06/14/2022 at 12:04

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(AOF) – BNP Paribas (+ 0.82% to 47.05 euros)

The banking sector escaped the fall in the market thanks to the new rise in long rates.

AOF – LEARN MORE

Key points

– 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.

Challenges

– 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.

Challenges

– 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.

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