BNP Paribas

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BNP Paribas
Company typePublic
Euronext ParisBNP
LSE0HB5
CAC 40 component (BNP)
IndustryFinancial services
Founded
Headquarters
RevenueIncrease 50.4 billion (2022)[4]
Increase €13.7 billion (2022)[4]
Increase €10.2 billion (2022)[4]
Total assetsIncrease €2.67 trillion (2022)[4]
Total equityIncrease €122 billion (2022)[4]
Number of employees
190,000 (2022)[4]
Divisions
List
Subsidiaries
Websitegroup.bnpparibas/en/

BNP Paribas (sometimes referred to as BNPP or BNP) is a

Banque Générale du Luxembourg in Luxembourg, and Türk Ekonomi Bankası in Turkey. The Group has also been present in the United States through its subsidiaries Bank of the West until 2023 and First Hawaiian Bank
until 2019. With 190,000 employees, the bank is organized into three major business areas: Commercial, Personal Banking & Services (CPBS); Investment & Protection Services (IPS); and Corporate & Institutional Banking (CIB).

BNP Paribas is listed on

2008 financial crisis.[8] It is considered a systemically important bank by the Financial Stability Board.[9] In the Forbes Global 2000, BNP Paribas was ranked as the 33rd largest public company in the world.[10] It has been designated as a Significant Institution since the entry into force of European Banking Supervision in late 2014, and as a consequence is directly supervised by the European Central Bank.[11][12]

Even though BNP Paribas is often referred to as a French bank,[13] the Belgian government is a significant shareholder with 5.3 percent equity ownership (as of mid-2023),[14] and the bank's oldest significant predecessor entity is the Société Générale de Belgique established in 1822.[15]

History

Former headquarters of Banca Nazionale del Lavoro in Rome
BNP Paribas London Trading Floor

In 1999, BNP and Société Générale fought a complex battle on the stock market, with Société Générale bidding for Paribas and BNP bidding for Société Générale and counter-bidding for Paribas. BNP's bid for Société Générale failed, while its bid for Paribas succeeded leading to a merger of BNP and Paribas one year later on 23 May 2000.

In 2006, BNP Paribas purchased

credit crisis and the bank's quick reaction saved it from the fate of other large European banks such as UBS.[16][17]

On 6 October 2008, BNP took over 75% of troubled bank

Court of Appeal on Friday, 12 December[18][19][20] In the end of January, the Belgian government and BNP negotiated for a 75% partnership in Fortis Bank Belgium. Fortis Insurance Belgium would be reintegrated in Fortis Holding.[21]

On 11 February, Fortis' shareholders decided that

Dutch Government which merged it with other ABN AMRO holdings it already owned under the name ABN AMRO
.

In May 2009, BNP Paribas became the majority shareholder (65.96%) of BGL (formerly Fortis Bank Luxembourg), the State of Luxembourg retaining 34% making BNP the eurozone's largest bank by deposits held.[22] On 21 September, the bank's registered name was changed to BGL BNP Paribas and in February 2010, BGL BNP Paribas became the 100% owner of BNP Paribas Luxembourg. The transfer was finalised on 1 October 2010 with the incorporation of BNP Paribas Luxembourg's business in the operational platforms of BGL BNP Paribas.[23] In 2013 BNP Paribas was awarded the Bank of the Year award by The International Financing Review ("IFR"), Thomson Reuters' leading financial industry publication.[24][25][26]

BNP Paribas reached an agreement in December 2013 to acquire Rabobank's Polish unit BGZ Bank for around $1.4 billion.[27] In September 2014, BNP completed the purchase of BGZ Bank for a final fee stated in the media to be $1.3 billion.[28][29][30] In December 2021, BNP Paribas announced to exit US retail banking business by selling its Bank of the West to the Bank of Montreal for $16.3bn.[31]

BNP Paribas has around $80 billion under management in Asia by 2024. The bank has hired 20 private bankers, including Tiffeny Situ from Morgan Stanley, Wendy Chan from Citigroup and Martin Loh from Credit Suisse Group, as part of its expansion program.[32]

Financial data

Français - BNP Paribas locations

In 2022, total revenues of €50.4 billion represent an increase of 9% compared to 2021, BNP Paribas remains at the top of the French banks' ranking in terms of activity. During this year, BNP Paribas Group net income attributable to equity holders increased to 7.5% (to 10.2 billion euros). The geographic breakdown of Net Banking Income (NBI) at the end of 2020 is as follows: Europe (72.2%), North America (12.9%), Asia Pacific (8.6%) and others (6.3%).[33]

Financial data in € billions[34]
Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenue 38.822 39.168 42.938 43.411 43.161 42.516 44.597 44.275 46.235 50.419
Net Income
5.439 0.507 7.044 8.115 8.207 7.526 8.173 7.067 9.488 10.196
Assets
1,800.139 2,077.759 1,994.193 2,076.959 1,960.252 2,041 2,165 2,488 2,634 2,666
Employees 185,000 188,000 189,000 192,000 196,000 203,000 199,000 193,000 190,000 190,000

Corporate identity

Français : BNP Paribas logo
Design BNP Paribas par Laurent Vincenti pour A&Co

The BNP Paribas logo since 2000 (designed by Laurent Vincent under the leadership of the Communications Director, Antoine Sire) is called the "courbe d'envol" (curve of taking flight). The stars allude to Europe and universality. The transformation of the stars into birds conveys openness, freedom, growth, and the ability to change and adapt. The shape and movement of the curve places the logo in the universe of life. The green square symbolises nature and optimism.[35]

Corporate structure

Executive Committee

The General Management and the executive committee are composed as follows:

  • Jean-Laurent Bonnafé, Director and chief executive officer of BNP Paribas
  • Yann Gérardin, directeur général délégué, chief operating officer, Corporate & Institutional Banking
  • Thierry Laborde, directeur général Délégué, chief operating officer, Retail Banking
  • Laurent David, Deputy chief operating officer
  • Renaud Dumora, Deputy chief operating officer, Investment & Protection Services
  • Marguerite Bérard, Head of French Retail Banking
  • Stefaan Decraene, Head of International Retail Banking
  • Charlotte Dennery, Director and chief executive officer of BNP Paribas Personal Finance
  • Bernard Gavgani, chief information officer
  • Elena Goitini, chief executive officer of
    BNL
  • Stephanie Maarek, Head of Compliance
  • Max Jadot, CEO and chairman of the executive board of BNP Paribas Fortis.
  • Yannick Jung, Head of Corporate & Institutional Banking Global Banking EMEA

Board of directors

As of 17 May 2021[36]

Jean Lemierre, Senior Adviser to the chairman, BNP Paribas Group, France, at the World Economic Forum on Europe and Central Asia in Istanbul, 30 October - 1 November 2008

Major shareholders

As of 31 December 2023[37]

  • European institutional investors (37.7%)
  • Non-European institutional investors (32.5%)
  • BlackRock Inc. (6.9%)
  • Belgian State (through SFPI) (5.5%)
  • Amundi (5.4%)
  • Retail shareholders (5.9%)
  • Employees (5.0%)
  • Grand Duchy of Luxembourg (1.1%)

Main subsidiaries

Retail banking

Italian Headquarters in Milan
Orizzonte Europa, BNL Headquarters in Rome
subsidiary of BNP Paribas

Other subsidiaries

Consorsbank
Sharekhan after acquisition by BNP Paribas
  • retail brokerage
    firm
  • L'Atelier BNP Paribas
  • BNP Paribas Personal Investors Luxembourg[41]
  • Protection 24[42][43]
  • SAIB-BNP Paribas Asset Management[44]

Divisions

BNP Paribas CIB

BNP Paribas CIB
RevenueUS$27.6 billion (2008)[45]
10,975,000,000 Euro (2023) Edit this on Wikidata
Total assets€3.1 trillion (2010)
Number of employees
17,000 (2007)[46]
Websitecib.bnpparibas.com

BNP Paribas CIB (Corporate and Institutional Banking) is the global investment banking arm of BNP Paribas, the largest banking group in the world. In October 2010, BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over US$3.1 trillion.[47][48]

BNP Paribas CIB's main centres are in

corporate advisory network in Europe and Asia
. BNP Paribas CIB has 13,000 clients, consisting of companies, financial institutions, governments, investment funds and hedge funds.

BNP Paribas CIB benefits from the Group's large asset base (over €2 trillion) and diverse business model, and is proving resilient in the economic and

financial crisis that has been affecting the banking sector since 2007.[45] Revenues from BNP Paribas CIB nearly doubled in the second quarter of 2009 as robust investor demand boosted revenues from the bank's fixed income trading business unit. CIB's revenues totaled €3.351 billion (US$4.82 billion) for the quarter, up 81 percent from the second quarter of 2008, and following record revenues of €3.696 billion in the first quarter of 2009.[49]

BNP Paribas Asset Management

BNP Paribas Asset Management
Company typeSociété Anonyme
IndustryAsset management
Founded2007; 17 years ago (2007)
HeadquartersParis, France
Area served
Worldwide
Key people
Sandro Pierri (CEO)
Revenue45,874,000,000 Euro (2023) Edit this on Wikidata
10,975,000,000 Euro (2023) Edit this on Wikidata
AUM€537 billion (31 December 2021)
Number of employees
192,000 (2016) Edit this on Wikidata
Websitebnpparibas-am.com
Headquarters, Paris

BNP Paribas Asset Management is the dedicated, autonomous asset management business of BNP Paribas Group.

History

In 2007, BNP Paribas regrouped its function in asset management under the brand name BNP Paribas Investment Partners.

In 2010, the closing of the transaction between BNP Paribas Investment Partners and Fortis Investments was completed.

In June 2017, BNP Paribas Investment Partners rebrands as BNP Paribas Asset Management.[50]

Notable current and former employees

Business

Politics and public service

Other

Controversies

Antisemitic allegations

In 2016 BNP reached a $40m settlement with a Jewish employee.[51] The employee had been made to watch a training video. The film portrayed Adolf Hitler as the CEO of Deutsche Bank, one of BNP's competitors and the Nazi soldiers around him as Deutsche Bank executives. The video showed Hitler screaming at the soldiers. Also, his colleagues made a number of anti-semitic comments during his time at BNP Paribas.[52]

Business with sanctioned countries

On 30 May 2014,

US $10 billion, which was expected to be reduced to $8 or $9 billion in negotiations.[53] BNP Paribas was said to have laundered up to US$100 billion from the sanctioned countries of Sudan, Iran, and Cuba.[54]

On 1 July 2014, BNP Paribas pled guilty in a

conspiracy in connection to those falsifications. It was also expected to plead guilty in federal court to violating laws against money-laundering.[55] It agreed to pay $8.9 billion, the largest fine ever for violating U.S. sanctions, and substantially more than the previous record of $1.9 billion.[29][55] BNP Paribas was also barred for one year under the plea agreement from certain US dollar-dominated transactions. The fine exceeded the bank's $6.4 billion 2013 annual income and the $1.1 billion it previously had allocated for the anticipated fine.[55][56]

The bank's failure to cooperate with the multi-year investigation was given as a significant factor in the size of the fine. Additionally, BNP Paribas continued to process sanctioned transactions after the investigation began.[55][57] After the fine was announced, BNP said it would be "just fine" and that it had "a comprehensive plan" to avoid similar violations in the future. The company's stock, which had fallen 12% since news of the investigation first leaked, rose 4% on the announcement.[55][56] To comply with the transaction ban, BNP Paribas will use a third party to clear its US transactions.[58]

Check processing

In 2010 the French government's Autorité de la concurrence fined BNP and 10 other banks €384 million for colluding to charge unjustified fees on check processing, including extra fees during the transition from paper check transfer to "Exchanges Check-Image" electronic transfer.[59][60]

€152 million risk management affair

The German

erroneous trade) in which BNP Paribas Arbitrage was allegedly involved.[65][66] The bank has sold securities for €326,400 to the investor Armin S. but the value of the securities is €163 million according to the bank. According to the article, the error remained unnoticed for several days. BNP has even reconfirmed the original price.[67][68][69]

The Financial Times published an article in March 2018 about the case with the title "BNP Paribas failed to book trades in Germany for a week". It cites internal documents that show it did not book all trades that happened in structured products in Germany from 2 to 9 December 2015. The Financial Times estimates that 8,500 trades might have been affected. It also questions if the bank has hedged their positions if the trades have not been booked.[70][71][72]

Sponsorship

2011 Davis Cup in Zagreb

BNP Paribas has been a major sponsor of tennis. In 1973 it became the major sponsor of the

ATP World Tour Masters 1000
tournament.

In 2008 it became the sponsor of the

Stanford Classic
, since 1992, is instead directly sponsored by the Bank of the West subsidiary.

See also

References

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  11. ^ "The list of significant supervised entities and the list of less significant institutions" (PDF). European Central Bank. 4 September 2014.
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  47. ^ "Bloomberg Oct 2010". Archived from the original on 8 November 2010. Retrieved 5 November 2010.
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  50. ^ "BNP Paribas Asset Management rebranding".
  51. ^ Ain, Stewart (4 May 2016). "$40M Lawsuit Over Bank's Nazi-Themed Training Video". jewishweek.timesofisrael.com. Archived from the original on 4 February 2018. Retrieved 4 February 2017.
  52. ^ Simao, Oliver (24 May 2016). "BNP Paribas reaches settlement over offensive Hitler parody video in training sessions" (PDF). Archived from the original (PDF) on 4 February 2018. Retrieved 4 February 2017.
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  67. ^ Lusk, Michael. "Do banks' internal control systems work?". Archived from the original on 27 December 2017.
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External links

  • Official website Edit this at Wikidata
  • Business data for BNP Paribas SA: