BNP Paribas's revenue and market capitalization
DEHOUI Lionel
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 2021, the group's activity was carried out in a growth dynamic. As a result, it recorded good financial performances over the year. In addition, the company has made a good start to the 2022 financial year. Here are the main points to remember about the bank's results and the value of its market capitalisation.
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BNP Paribas' overall performance for the year 2021
The BNP Paribas Group has achieved a record 2021 financial year. Its financial results for the year were impressive. For the full year 2021, the bank's net banking income (equivalent to revenue) was €46.235 billion, compared to €44.275 billion in 2020. It reported a 4.4% year-on-year increase.
In 2021, the company's management costs increased by 3.0% compared to 2020 to €31.111 billion, compared to €30.194 billion a year earlier. They take into account exceptional items estimated at 292 million euros. These are: restructuring and adaptation costs (164 million euros) and IT reinforcement costs (128 million euros).
Over the twelve months of 2021, the banking group recorded a gross operating profit of 15.124 billion euros. 15.124 billion, an increase of 7.4% compared to the previous year. The cost of risk fell by 48.8 % over the year to 2.925 billion euros in 2021.
12.199 billion in 2021, an increase of 45.9%. 13.637 billion in 2021, a strong year-on-year increase of 38.8%.
At the end of the 2021 financial year, the group's share of net income reached 9.488 billion euros, compared with 7.067 billion euros in 2020. 7.067 billion in 2020, an increase of 34.3% compared to the previous year.
Financial results for the first quarter of 2022
The financial results unveiled by BNP Paribas for the first quarter of 2022 came in above expectations. Over this period, the group's net banking income (equivalent to turnover) amounted to 13.22 billion euros. It increased by 11.7% compared to Q1-2021. On a like-for-like basis, the increase was 10.4%.
This quarter's NBI also exceeded the market's expectations. The market was expecting 11.65 billion euros. In Q1 2022, the group's share of net income reached 2.108 billion euros, compared to 1.768 billion euros in Q1 2021. It is therefore up by 19.2% year-on-year.
Excluding exceptional items, this result stands at 3.785 billion euros, up 34.0% over one year. In the first three months of the financial year 2022, the bank recorded an operating result of 3.109 billion euros. 3.109 billion, a strong increase of 33.1% compared to Q1-2021.
Gross operating income, meanwhile, rose by 10.3% to €3.565 billion in Q1 2022. Pre-tax profit was €3.277 billion in Q1 2022, compared with €2.823 billion in the same period a year earlier. This corresponds to an increase of 16.1%.
For the quarter under review, the cost of risk, which measures provisions for doubtful loans, amounted to 456 million euros. 456 million, a decrease of 49.1% compared to Q1-2021. It also represents 20 basis points of outstanding customer loans.
Results by business line in Q1-2022
In the first quarter of 2022, the results of the CIB (Corporate and Institutional Banking) division were very strong. This was helped by strong customer activity. In fact, this division was the main driver of the quarter. In particular, it gained market share during this period. Also, its NBI grew by 28.1% year-on-year to 4.702 billion euros.
CIB's gross operating income for the quarter was 1.349 billion euros, up 61.4% compared to Q1-2021. The cost of risk was 2 million euros, a very low level. 1.353 billion in Q1 2022, a sharp increase of 98.1% year-on-year.
For the first quarter of 2022 as a whole, Commercial, Personal Banking & Services recorded net banking income of EUR 6.979 billion. 6.979 billion, up 8.5% year-on-year at historical scope and exchange rates. The increase was 8.1% on a like-for-like basis compared with Q1-2021.
This strong performance was driven by a sharp increase in the division's specialised businesses. These include business vehicle leasing (Arval) and consumer credit. Its gross operating income came to EUR 2.131 billion, up 17.0% compared with the first quarter of 2021.
The division's cost of risk fell by 40.0% to EUR 401 million in Q1 2022. Its pre-tax profit reached €1.761 billion in this period, an increase of 58.7% compared to Q1-2021.
About BNP Paribas' dividend and market capitalisation
At BNP Paribas, the dividend is distributed once a year. Thus, the company's Board of Directors proposed at the General Meeting of Shareholders held on 17 May 2022, the payment of a dividend of EUR 3.67 per share for the financial year 2021.
3.67 per share for the financial year 2021. The dividend was paid in cash on 26 May 2022. It corresponds to a distribution of 50% of the 2021 result.
Furthermore, as a member of the CAC 40 index, BNP Paribas has an attractive market capitalisation in 2022. At the end of June of this year, it is estimated to be worth around 58 billion euros.
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