The French bank has reported growth in the three operating divisions as it moves to acquire Deutsche Bank’s prime brokerage and electronic execution services.

BNP Paribas issued 38,500 structured products in the second quarter of 2019, down 34% from 58,100 products launched by the bank in the same quarter last year, according to SRP data.

The vast majority of the bank’s products were listed certificates targeted at investors in Germany and Austria. In France, the bank sold 100 structures – worth approximately €420m (US$464m) – which were distributed via, among others, Crystal Partenaires, Equitim, Hedios Vie, and Privalto.

The 78 certificates launched in Italy accumulated sales of €488m in the quarter while the bank was also active in Belgium (€206m from 27 products), Ireland (€25m from nine products), and the Netherlands (€19m from 19 products).

Outside of Europe, with the French bank hedged products for XP Investimentos in Brazil, Daiwa Securities in Japan, and Momentum in South Africa. One hundred and eight products were available to institutional investors, including Athena Worst-of Certificates, the bank’s best-selling product for the quarter (US$115m), which was listed in Luxembourg and linked to the Dax and Eurostoxx 50 indices.

BNP Paribas reported revenues, at €11.2 billion, were up by 0.2% compared to the second quarter of 2018.

The revenues of the operating divisions were up by 2.5% with a slight decrease at domestic markets, a rise at international financial services, and at corporate and institutional banking (CIB) which continued its selective growth on targeted clients with the announcement of a preliminary agreement with Deutsche Bank (subject to regulatory approval) to provide continuity of service to the fund manager clients of its brokerage and electronic execution, including the ‘necessary technology and staff transfer’.

CIB’s revenues, at €3.1 billion, rose by four percent compared to the second quarter 2018. At €1.4 billion revenues for the global markets business were down by 2.7% compared to the Q2 2018, thus delivering a ‘good performance in a lacklustre context’ thanks to the strengthening of its client positions.

The revenues of fixed income, currencies and commodities (FICC), at €793m, were up by 8.8% with good growth in forex, credit and primary issues despite a more challenging context for rates, in particular in Europe.

Equity and prime services’ revenues, at €615m, were down for their part by 14.3% compared to a high base in the same quarter last year with lesser volumes at prime services but a ‘good level of client activity’ in equity derivatives, according to the bank.

BNP Paribas' wholesale medium/long term funding plan for 2019, at €36 billion, can be broken down into €33 billion of senior debt and €3 billion of capital instruments. As at July 18 2019 €11.6 billion of non-preferred senior (NPS) debt had already been issued, including a 5.5-year, €750m green NPS bond issued on February 2 2019.

‘Revenues were up thanks to business growth in the operating divisions,’ stated Jean-Laurent Bonnafé (pictured), chief executive officer. Operating expenses were well contained and benefitted from the transformation plan, generating a positive jaws effect. The common equity Tier 1 ratio rose to 11.9%, illustrating the Group’s solid balance sheet,’ he said.

Click the link to read the full second quarter 2019 results and the presentation.