The global markets business showed ‘good resiliency’ during the second quarter despite an 11.7% revenue decrease YoY.

BNP Paribas reported a net income of €2.81 billion (US$3.06bn) for the second quarter of 2023 – beating analysts’ forecast of €2.42 billion as polled by FactSet but declining 4.9% compared to the prior-year quarter, according to the bank’s latest quarterly report.

Revenues dropped 1.5% to €11.4 billion due to ‘unfavourable forex impact and high negative exceptional items this quarter’.

The bank, led by CEO Jean-Laurent Bonnafé (pictured), issued 1,893 non-flow structured products across 14 markets in Q2 23 worth an estimated US$4.2 billion, versus 1,000 products marketed across 17 jurisdictions worth an estimated US$3.5 billion in Q2 22, according to SRP data.

Compared with the previous quarter the bank’s issuance (Q1 23: 1,465 products) was up but sales (Q1 23: U$4.3m) were down slightly.

In France, its domestic market, the bank was one of the most active providers in the market on the back of 239 new products issued, including 126 medium term notes, 102 investment certificates and 11 certificates. By asset class, most of the products brought to market were tied to a single index (103 products), followed by single shares (81) and baskets of shares (34). Eight products were linked to interest rates, while three were tied to credit.

Meanwhile, BNP Paribas was one of the 14 providers of listed structured products in Hong Kong SAR in Q2 23, with 460 callable bull/bear contracts (CBBCs) and 65 derivative warrants (DWs). In Taiwan, the French bank issued 416 equity-linked notes.

Business units

The global markets unit within the corporate and institutional banking (CIB) division reported revenues of €1.9 billion, a 11.7% decline YoY; with fixed income, currency, and commodities (FICC) revenues also falling by 18.4% YoY to €1.1 billion; equity and prime services revenues felt by three percent to €787 million due to ‘less sustained client activity’.

The French bank noted that ‘the very good performance in credit activities was offset by a more normalised level of activity on the rates, foreign-exchange and commodities markets compared to a high second quarter 2022 base’.

The CIB division, which also covers global banking and securities services, overall recorded €3.99 billion in revenues during the quarter, down  2.3% YoY.

In the meantime, global banking and securities services, which also fall under CIB, gathered €1.4 billion and €661m in revenues, up 15% and down 0.3% YoY, respectively. The gain was led by its Europe, Middle East and Africa (Emea) bond markets which posted a 98% YoY increase in volumes.

Revenues in commercial, personal banking and services (CPBS) and investment and protection services (IPS), the other two operational divisions at BNP Paribas, rose by 3.3% to €6.78 billion and 0.3% to €1.43 billion YoY, respectively.

Click the links to read BNP Paribas’ Q22023 results and presentation and first half 2023 consolidated financial statement.