The French bank mobilised its ‘resources and expertise’ to raise more than €160 billion in financing globally in Q2 2020.

BNP Paribas reported revenues of €11.7 billion in the second quarter of 2020, up four percent from the same quarter last year.

Revenues of the operating divisions were up by 5.2%, with corporate and institutional banking (CIB) achieving a strong increase.

CIB’s revenues, at €4.1 billion, rose by one-third compared to the second quarter of 2019 thanks to ‘extremely sustained activity in all client segments, due to the specific needs of corporates and institutions during the health crisis’. Revenues were up in all three businesses: corporate banking (+15%), global markets (+63.5%), and securities services (+3.6%).

CIB raised over €160 billion in the second quarter on the global syndicated loan, bond and equity markets (+91% compared to the second quarter 2019) on behalf of its clients. Early in the quarter, it led several operations that reopened primary markets that had closed at the peak of the crisis.

Global markets revenues, at €2.3 billion, rose sharply by 63.5% compared to the second quarter 2019, in connection with very high client volumes, while the performance of fixed income, currencies and commodities (FICC) was up 153.8%.

Equity and prime services gradually recovered, but revenues were still down 52.8% compared to the second quarter of 2019. Activity in derivatives moved slowly back to normal in a ‘still-challenging’ market, increased in the Americas and Apac, and there was only a ‘residual additional’ impact of dividend restrictions in Europe.

BNP Paribas issued more than 45,000 tranche products in the second quarter of 2020, an increase of 18% from the 38,281 structures launched in the prior year quarter. The vast majority of offerings were flow and leverage certificates targeted at German investors that were listed on the exchanges of Frankfurt and Stuttgart.

In Germany alone, the bank also issued some 60,337 open-ended leverage certificates (Q2 2019: 23,646 products), as it upped its issuance of listed products to replace the many turbo and mini certificates that reached their stop loss as a result of the market volatility.

In its home market France, BNP collected approximately €847m from 176 structured products between 1 April and 30 June 2020, up 16% in sales volume compared to €729m (from 109 products) in the same period last year.

The French products were available via the networks of 18 different distributors, including Privalto, Vital Epargne, Nexo Capital, Crystal Finance, Hedios Vie and Groupama.

The best-selling product in the quarter was Elegia Decembre 2028, distributed via the asset management channel. The 8.6-year autocall, which struck on 15 May and was linked to the Eurostoxx 50, sold €21m during its subscription period.

Best performer during the period was a Phoenix Plus note on the share of Sanofi which returned 134.8% after five-years, or 6.96% pa.

Other European markets were the bank was active during Q2 included Italy (€220m from 48 products), Belgium (€96m from nine products), and Ireland (€11m from eight products).

Outside of Europe, BNP was the manufacturing company behind 45 structures targeted at private banking investors in Taiwan, while in Brazil it collaborated with local provider XP Investimentos for the launch of 10 structured deposits.

The group’s 2020 medium to long-term wholesale funding programme of €35 billion can be broken down into €13 billion non-preferred senior debt (€9.7 billion already issued); €4 billion capital instruments (€3.2 billion already issued; and €18 billion other senior debt). The latter includes structured products.

BNP’s immediately available liquidity reserve totalled €425 billion, equivalent to more than one year of room to manoeuvre in terms of wholesale funding, according to the bank.

As at 30 June 2020, assets under management reached €1.08 trillion, which could be broken down as follows: asset management (€456 billion, including €29 billion from real estate investment management), wealth management (€377 billion), and insurance (€252 billion).

‘Our diversified banking model has proven its effectiveness in supporting clients and the economy in front of an unprecedented health crisis […] BNP Paribas was able to quickly mobilise its teams, resources and expertise to meet the needs of its clients across Europe and beyond,’ stated chief executive officer Jean-Laurent Bonnafé (pictured).

Click the link to read the full second quarter 2020 results, presentation, and consolidated financial statements.