BNP Paribas third quarter revenues totalled 10,345 million euros, up by 8.5% compared to Q3 2014.
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They included this quarter an exceptional impact of +37 million euros in Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA) (-197 million euros in the third quarter 2014).
The revenues were up in all the operating divisions compared to the third quarter 2014: +0.8% in Domestic Markets(1), +11.6% at International Financial Services and +4.2% at Corporate and Institutional Banking. They also benefited from the positive impact of the acquisitions made in 2014 and were up by 1.7% at constant scope and exchange rates.
Operating expenses (6,957 million euros) were up by 7.3%. They included the one-off impact of Simple & Efficient transformation costs and the restructuring costs of the acquisitions made in 2014 which totalled 160 million euros (154 million euros in the third quarter 2014).
The operating expenses of the operating divisions were up by 7.3%. They increased by 2.4% in Domestic Markets, 12.4% at International Financial Services and 8.3% in CIB. At constant scope and exchange rates, they rose by 2.2% notably due to the investments made to implement new regulations and reinforce compliance.
Gross operating income increased by 10.9%, at 3,388 million euros. It was up by 3.2% for the operating divisions.
The Group’s cost of risk was still at a moderate level and came to 882 million euros (50 basis points of outstanding customer loans). The basis of comparison of the same quarter a year earlier had limited significance due to the scope effect related to the acquisitions made in 2014 and a net write-back of provisions at CIB in the third quarter 2014.
Non-operating items totalled 163 million euros (149 million euros in the third quarter 2014).
Pre-tax income came to 2,669 million euros compared to 2,450 million euros in the third quarter 2014. It was up by 0.8% for the operating divisions.
Net income attributable to equity holders thus came to 1,826 million euros (1,595 million euros in the third quarter 2014). Excluding one-off items, it was up by 4.3%, illustrating the Group’s good overall performance this quarter.
As at September 30, 2015, the fully loaded Basel 3 common equity Tier 1 ratio stood at 10.7%, up by 10 basis points compared to 30 June 2015. The fully loaded Basel 3 leverage ratio came to 3.8% (+10 basis points compared to 30 June 2015).
The Group’s immediately available liquidity reserve was 301 billion euros (291 billion euros as at December 31, 2014), equivalent to over one year of room to manoeuvre in terms of wholesale funding.
The net book value per share reached 69.8 euros, equivalent to a compounded annualised growth rate of 6.5% since 31 December 2008, illustrating the continuous value creation throughout the cycle. ■