French bank BNP Paribas on Thursday revealed a robust group share net income of €2,868m for its third quarter 2024 earnings, a 5.9% rise from the same period last year.
This was mainly due to a strong performance from its Corporate and Institutional Banking (CIB) division, which posted a revenue rise of 9% on the same period last year.
The bank's Investment and Protection Services (IPS) branch also saw a 4.9% rise in revenue in the third quarter of this year, as compared with the same period last year.
However, revenue from the Commercial, Personal Banking and Services (CPBS) section was down -2.6% from the same period last year.
BNP Paribas' operating expenses also inched up slightly, coming up to €7,213m, a rise of 1.7%, on the third quarter of 2023.
Some other headwinds to performance included mandatory reserves which were no longer remunerated by the European Central Bank, as well as inflation hedges, and a surge in Belgian investors choosing government bonds.
Chief executive officer (CEO) Jean-Laurent Bonnafé was quoted as saying in a company press release: "These very good results were driven by the business performance of the operating divisions and demonstrate our group's capacity to grow while continuing to manage risks and resources thoroughly."
BNP Paribas acquires HSBC’s German Private Banking activities
BNP Paribas revealed in September plans to take over HSBC's German Private Banking operations in what is seen as an attempt to strengthen BNP Paribas' Wealth Management department in Germany, as well as boost its assets under management (AuM) to more than €40bn.
Vincent Lecomte, the CEO of BNP Paribas Wealth Management, said in a press release on the website: "This acquisition is a new crucial step in positioning BNP Paribas Wealth Management among the leading players in Germany, where we believe our model is best suited to serve the long-term needs of entrepreneurial clients, leveraging on the strong franchises of the Group to both address their personal and corporate needs.
"It will therefore contribute to consolidating our position as the first Wealth Management player in the Eurozone."
Lutz Diederichs, the CEO of BNP Paribas Germany, also said in the press release: "Germany is a key strategic market for BNP Paribas with a local presence of more than 75 years. Our twelve business lines make our business model one of the most diversified and resilient ones in the German banking sector."