The French banking group’s CIB division equity market activity was sustained, especially in equity derivatives during Q3 2023.

BNP Paribas has posted revenues of €11.6 billion (US$12.42 billion) for the third quarter of 2023, up four percent compared to the prior year quarter (Q3 2022: €11.1 billion).

In the operating divisions, revenues for corporate and institutional banking (CIB), at €3.9 billion, increased by three percent year-on-year (YoY), driven the global banking and securities services businesses, which were up 24.7% and 12.4%, respectively, YoY.

BNPP reported sustained activity in equity derivatives markets, and good momentum in volumes in prime brokerage, while activity slowed on the rates, foreign-exchange and commodities markets compared to a very high Q3 2022 base. Credit market activity was up sharply overall, especially in Emea.

Global markets revenues, at €1.8 billion, were down 8.4% and can be split between fixed income, currency and commodities (€1 billion) and equity & prime services (€779m).

At €691m, securities services’ revenues were up by 12.4% YoY, driven by the impact of higher average outstanding and the ongoing favourable impact of the interest-rate-environment.

The bank led by Jean-Laurent Bonnafé (pictured), collected an estimated US$4.2 billion from 2,427 publicly distributed structured products in Q3 2023, up 66% by sales volume YoY, according to SRP data.

The structures were launched across 15 different jurisdictions. In Europe, the highest issuance was seen in Switzerland (1,283 products), followed by Germany (209) and the bank’s domestic market France, where 183 products were issued, mostly on single stocks such as LVMH, STMicroelectronics, AXA, and Saint Gobain, or single equity indices like the Eurostoxx 50.

Other European countries where BNPP was active on the primary market during the quarter include Italy (39 products), UK (16), Poland and Sweden (14 each), Finland (six), Belgium and Norway (three), and Ireland (two).

Outside Europe, the bank collected just under US$500m from 155 unregistered notes in the US market, including US$27m that was invested in Trigger Autocallable Growth Enhanced Asset Return Securities on the Russell 2000 for which UBS Financial Services acted as a selling agent.

In Asia, BNPP had a strong presence in Taiwan where it issued 497 structured products during the quarter. Its Taiwanese offering, mainly linked to share baskets (372 products) and single equity indices (77), was available via local banks and securities houses including, among others, CTBC Bank (97 products), KGI (40), Cathay Securities Investment Trust (39), First Bank (33), and E.Sun Commercial Bank (26).

On the secondary market, the bank issued 92,171 leverage certificates, mainly targeted at investors in Germany (Q3 2022: 129,901) while in Hong Kong SAR 479 callable bull bear certificates and 62 warrants were issued.

As of 20 October 2023, approximately 110% of the group’s medium/long-term (MLT) regulatory funding plan had been realised.

BNP’s 2023 MLT regulatory issuance plan of approximately €18.5 billion can be broken down into €15 senior debt, of which €4.3 billion non-preferred and €12.1 billion preferred has already been issued, and €3.5 billion capital instruments (€4 billion already issued).

The group’s immediately available liquidity reserve totalled €439 billion, equivalent to more than one year of room to manoeuvre in terms of wholesale funding.

Assets under management (AuM) came to €1.2 trillion, up 4.1% compared to 30 September 2022, with a market performance effect of €13.2 billion and the impact of strong net asset inflows of €23.3 billion, partly offset by an unfavourable exchange rate impact of -€1.9 billion. Net asset inflows were particularly strong in money-market funds at asset management and very good inflows at wealth management.

AuM was split as follows: €551 billion in asset management and real estate; €408 billion in wealth management; and €245 billion in insurance.

The group’s balance sheet included issued debt securities worth €80 billion (end-December 2022: €65.6 billion).

Click the link to read the full BNP Paribas third quarter 2023 results and presentation.