BNP Paribas Q2 revenues totalled 11,079 million euros, up by 15.8% compared to the second quarter 2014. They include this quarter an exceptional impact of +80 million euros in Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA).
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The one-off revenue items for the second quarter 2014 totalled -353 million euros.
The revenues of the operating divisions were up significantly (+12.2% compared to the second quarter 2014) with a very good growth at International Financial Services (+20.7%) and Corporate and Institutional Banking (+15.6%), and continued increase in Domestic Markets (+2.7%). They also benefited from the positive impact of the acquisitions made in 2014.
Operating expenses, at 7,083 million euros, were up by 11.2%. They include the one-off impact of Simple & Efficient transformation costs and the restructuring costs of the acquisitions made in 2014 which totalled 217 million euros (198 million euros in the second quarter 2014). The cost/income ratio improved significantly (-2.6 percentage points) at 63.9%.
The operating expenses of the operating divisions were up by 11.4%, resulting in a positive 0.8 point jaws effect. They were up by 2.3% in Domestic Markets, 20.7% in International Financial Services and 13.3% in CIB.
Gross operating income was up by 24.8%, at 3,996 million euros. It increased by 13.5% for the operating divisions.
The Group’s cost of risk was up by 5.6% compared to the same quarter last year, at 903 million euros (51 basis points of outstanding customer loans), due to the scope effect related to the acquisitions made in 2014. It was down slightly excluding this effect.
As a reminder, in the second quarter of last year, the Group booked a total of 5,950 million euros in the costs related to the comprehensive settlement with the U.S. authorities.
Pre-tax income thus came to 3,685 million euros compared to -3,450 million euros in the second quarter 2014. It rose by 18.2% for the operating divisions.
The Group generated 2,555 million euros in net income attributable to equity holders (-4,218 million euros in the second quarter 2014). Excluding the one-off items, it was up sharply by 13.7%, illustrating the Group’s very good performance this quarter.
As at 30 June 2015, the fully loaded Basel 3 common equity Tier 1 ratio (3) stood at 10.6%, up by 30 basis points compared to 31 March 2015. The fully loaded Basel 3 leverage ratio (4) came to 3.7% (+30 basis points compared to 31 March 2015).
The group’s immediately available liquidity reserve was 290 billion euros (291 billion euros as at 31 December 2014), equivalent to over one year of room to manoeuvre in terms of wholesale funding. ■