Despite historically low interest rates, and a lacklustre market, French banking group BNP Paribas yesterday published its results for 2016 including recorded revenues of €43,411 million, an increase of 1.1% on 2015.
The growth reflected a trend across the period of the group's 2014-2016 business development plan, which saw average annual revenue growth of 4%.
At the same time, the group also announced its 2017-2020 business development plan through which they aim to leverage the strength of the integrated and diversified business model, accelerate digital transformation and conduct an ambitious corporate social responsibility survey.
Among the plans outlined, the group will invest €3 billion over the next three years in its digital products, apps and platforms as well as tech hubs and incubators. It is expected that this investment will generate €3.4 billion in savings during the same period and €2.7 billion in annual recurring savings starting from 2020.
The report said that net income attributable to equity holders totalled €7,702 million, up 15.1% compared to 2015, with a return on equity at 9.3% (9.4% excluding one-off items). The return on tangible equity came to 11.1% (11.2% excluding one-off items). The net earnings per share came to €6.
Within that context, Luxembourg’s Retail Banking outstanding loans rose by1.5%, with mortgages and deposits up 14.4%.
Commenting on the results, Chief Executive Officer Jean-Laurent Bonnafé said, “the Group’s balance sheet is rock-solid and the significant increase in the fully loaded Basel 3 common equity Tier 1 ratio to 11.5% testifies to the capital generation.
"After the success of its 2014-2016 plan, which allowed to attain the defined targets, the group now unveil the 2020 business development plan that announces an acceleration of digitalisation and targets an average growth of net income of more than 6.5% per year until 2020.”
