BNP Paribas confirms its objectives for 2016 – L’Express

In 2015, net profit reached 6.7 billion euros, after the meager profit of 157 million in 2014, largely sealed by the sanction of 6.6 billion euros imposed by the United States after the violation of economic embargoes.

This is still below expectations of analysts, who had forecast a net profit of 6.9 billion euros, according to the consensus of the financial data provider FactSet.

Excluding items, the profit was $ 7.3 billion, driven by all business lines.

“ The group achieved good operating performance with revenue progressing in its three poles “, welcomed its CEO, Jean-Laurent Bonnafé, said in a statement published Friday.

At the beginning of the final year of its Strategic Plan 2014/2016, the French bank confirmed its objectives for this term.

– Cost reduction –

Included is such a return on equity (ROE) of at least 10% based on a capital ratio “ hard “(the shareholders’ contributions and retained earnings reported to credits) 10%.

But the group already has its eyes turned to the stage after and his future plan 2017/2020, prepared this year.

Without waiting, he has already unveiled a first ambitious roadmap for its finance and investment banking (CIB).

The French bank thus wants to push up net profit before tax –hors réglementaires– constraints 1.6 billion euros between 2015 and 2019, an increase of about 50% SINCE it was 3.3 billion euros last year.

She also wants to reduce the costs of this segment of at least € 1 billion by 2019 (excluding regulatory costs and inflation) and are driving up revenues of over 2 billion euros, strengthening its position in the Americas and Asia-Pacific, for example.

BNP Paribas thus shows its proactive to BFI, when many of its competitors intend to trim as Barclays Asia.

At the level of activity in 2015, net banking income (GNI, equivalent to sales) for its part, increased by 9.6% to 42.9 billion euros, a slightly higher than expected level (€ 42.8 billion).

These are the poles “ International Financial Services ” (asset management, life insurance, consumer credit and the US subsidiary BancWest) and the Corporate and Investment Bank who fired their game, with GNP respectively up 14.5% and 13.2%.

The growth was lower in the domestic markets, which include retail banks in France, Italy, Belgium and Luxembourg, as it was 1.6%, on growth fund sluggish in the euro area.

– Disposal or public offerings of First Hawaiian –

In terms of solvency, capital adequacy ratio “ hard ” reached 10.9% at the end December, up 0.60 percentage point year on year.

To meet regulatory requirements, it will reach 11.5% in 2019 but BNP Paribas hopes to reach that level in mid-2017, through organic generation of capital but also by separating its subsidiary US First Hawaiian Bank.

This could be through a sale or an IPO, said the French group.

In line with its commitment to a payout ratio to shareholders of 45%, BNP Paribas will propose to the General Meeting of May 26, 2016 a dividend of 2.31 euros per share in cash, against 1.50 the previous year.

In the fourth quarter alone, net profit of the bank amounted to 665 million euros, down 51.7%.