BNP Paribas posted a good overall performance this quarter thanks to the good sales and marketing drive and the strong growth of its operating divisions.
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In the Eurozone, demand for credit is gradually recovering in a context of economic growth picking up. In America and in Asia, the Group enjoyed good business development.
Revenues totalled 11,065 million euros, up 11.6% compared to the first quarter 2014. They included this quarter the impact of an exceptional +37 million euro Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA). The one-off revenue items for the first quarter 2014 totalled 237 million euros.
The revenues of the operating divisions were up sharply due in particular to the very good performance of CIB and of the specialised businesses, the positive impact of acquisitions made in 2014 and favourable foreign exchange effects. The revenues of the operating divisions thus rose by 13.7% compared to the first quarter 2014: +2.3% for Domestic Markets1, +20.3% at International Financial Services and +23.7% for CIB.
Operating expenses, at 7,808 million euros, were up by 14.9%. They included the one-off impact of Simple & Efficient transformation costs and the restructuring costs of the acquisitions made in 2014 which totalled 130 million euros (142 million euros in the first quarter 2014).
They also included a 245 million euro impact for the first contribution to the Single Resolution Fund whose entire contribution for 2015 was fully booked this quarter based on the IFRIC 21 “Levies†interpretation.
The operating expenses of the operating divisions were up by 10.7%, resulting in a largely positive jaws effect (3 points). They were up 1.1% in Domestic Markets1, 20.6% in International Financial Services and 13.4% in CIB.
Gross operating income was up by 4.5%, at 3,257 million euros. It increased by 20.3% for the operating divisions.
The Group's cost of risk was down by 3.7%, at 1,044 million euros (61 basis points of outstanding customer loans). It included a one-off 100 million euro provision due to the exceptional situation in Eastern Europe in the first quarter 2014. It was on the whole stable excluding this effect.
The Group generated 1,648 million euros in net income attributable to equity holders (1,403 million euros in the first quarter 2014), up by 17.5% compared to the same period a year earlier (+38.7% excluding one-off items and the impact2 of the first contribution to the Single Resolution Fund). Return on equity, excluding one-off items but including the impact of the first contribution to the Single Resolution Fund, was 9.6%.
The Group's balance sheet is rock-solid. As at 31 March 2015, the fully loaded Basel 3 common equity Tier 1 ratio(4) was 10.3%. The fully loaded Basel 3 leverage ratio (5) came to 3.4% (6).
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. ■