BNP Paribas is the leading bank in the European Union. The group is a major international banking player. It operates in banking and insurance. In 2020, the group's activity took place in a difficult context marked by the Covid-19 health crisis. However, it has shown great resilience thanks to its financial strength and its diversified and integrated model.
For the full year 2020, BNP Paribas' net banking income (equivalent to revenues) was EUR 44,275 million. It is almost stable at -0.7% (at historical scope and exchange rates) compared to the previous year. At constant scope and exchange rates, it shows an increase of 1.3% over one year.
In 2020, the company's management costs fell by 3.6% compared to 2019 to €30,194 million. They take into account exceptional items estimated at €521 million. These are: restructuring and adaptation costs (€211 million), IT reinforcement costs (€178 million) and finally, donations and security measures for staff related to the health crisis (€132 million).
Over the twelve months of the year, the banking group recorded a gross operating income of 14,081 million euros. 14 081 million, up 6.2% on the previous year. The cost of risk increased by 2,514 million euros over one year to 5,717 million euros in 2020.
8,364 million for the year, a decline of 16.8%. Non-exceptional items, on the other hand, increased compared to 2019 to reach 1,458 million euros. 9,822 million in 2020, down 13.8% year-on-year.
As at 31 December 2020, the bank's income tax was EUR 2 407 million. The average income tax rate was 25.6%, compared with 24.2% a year earlier. At the end of the year, the group's share of net income reached 7,067 million euros, down 13.5% compared to the previous year.
Despite the Covid-19 health crisis, BNP Paribas recorded strong sales momentum in its various business lines.
In 2020, the Domestic Markets business recorded gains in operational efficiency. This division illustrates its strong support for the economy. Outstanding loans increased by 5.4% year-on-year. Deposits increased by 11.6% compared to the previous year.
The division achieved a strong net inflow of 6.1 billion euros, with "4.9 billion euros of external inflows". It recorded net banking income of 15,477 million euros, down 2.1% on the previous year. Operating expenses fell by 1.6% year-on-year to 10,568 million euros.
Gross operating income fell by 3.2% to 4,909 million euros. With the effects of the health crisis, the cost of risk increased to 1,456 million euros. 3,271 million, down 13.9% compared to 2019.
Despite the Covid-19 pandemic, the International Financial Services division enjoyed good business momentum during the year. Outstanding loans grew by 1.5% compared to 2019. Net inflows amounted to EUR 54.9 billion, including EUR 40 billion for the Asset Management business line.
The division continued to strengthen its digitalization. Thus, it has 4.6 million digital customers in the international retail networks, up 13% compared to 2019. Its net banking income fell by 7.2% to EUR 15,938 million. Operating expenses also fell by 3.7% to €10,117 million in 2020.
5,821 million, down 12.8% year-on-year. The cost of risk increased by €864 million to €2,775 million. Pre-tax income fell by 34.5% year-on-year to 3,421 million euros.
In 2020, the CIB division performed well for all its clients. Commercial activity was up sharply in all business lines. Revenues of this business line increased by 13.9% compared to the previous year to reach 13,763 million euros.
CIB's operating expenses rose by 3.0% to 8,920 million euros in 2020. Its gross operating income amounted to 4,843 million euros, up sharply by 41.7% year-on-year. The cost of risk increased by 1,085 million euros to 1,308 million euros. The division recorded a pre-tax profit of 3,454 million euros, up 7.7%.
Over the twelve months of the year, the "Other activities" division posted net banking income of -358 million euros, compared to 71 million euros a year earlier. Operating expenses fell sharply to 890 million euros, compared with 1,728 million euros at 31 December 2019.
The cost of risk for this division is estimated at 72 million euros in 2020, compared to 58 million euros a year earlier. Other non-exceptional items are estimated at 939 million euros at the end of December 2020, compared with 786 million euros at the same period of the previous year. Finally, the division generated a pre-tax profit of -327 million euros, compared to -848 million euros for the year 2019.
The Board of Directors of BNP Paribas proposed at the Annual General Meeting of Shareholders, the payment of a dividend of €1.11 per share for the year 2020. This corresponds to a distribution of 21% of the year's earnings.
This is the maximum rate resulting from the European Central Bank's recommendation of 15 December last. Furthermore, the dividend was paid in cash on 26 May 2021. Furthermore, as a member of the CAC 40 index, BNP Paribas has an estimated market capitalisation of EUR 53.9 billion in 2020.