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BNP PARIBAS

Analysis before buying or selling BNP Paribas shares

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Discover the key factors to consider before buying or selling BNP Paribas shares. Whether you are a potential or existing investor, understanding the factors that influence the share price and the company's performance is essential. On this page, we will analyse aspects such as BNP Paribas' financial results, banking industry trends, government regulations, strategic partnerships, and other factors impacting the bank. By taking an in-depth look at these factors, you can gain a better understanding of how the BNP Paribas banking group operates.
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Yes
 
Information on BNP Paribas shares
ISIN code: FR0000131104
Ticker: EPA: BNP
Index or market: CAC 40
 

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Elements to consider before investing in this asset

Analysis N°1

Given the group's position as one of Europe's leading banks, you will need to keep a close eye on its major competitors in this sector, as well as the development of its international activities, particularly in emerging countries, which can have a direct influence on the share price.

Analysis N°2

The group's activities in the digital segment should also be watched closely, with the development of innovative new services designed to attract younger customers and build loyalty over time. This will depend in particular on the success or failure of the European online bank Hello Bank, in which the group has invested more than 2 billion euros.

Analysis N°3

Of course, as with all European banks, BNP Paribas' activities are likely to be influenced by the decisions of the European Central Bank (ECB). You should therefore make it a priority to follow the publications and communications of this official institution.

Analysis N°4

Maintaining BNP Paribas' profitability at an optimum level in a context of greater protection for bank customers, with stricter controls on intervention fees in particular, is also an important issue for the future of the group, particularly as regards its retail banking activities in France. It should be remembered that profitability has already fallen following a decline in deposits in favour of passbook accounts.

Analysis N°5

It will also be important to keep an eye on the Group's assets and its ability to maintain compliance with the Basel III solvency agreements.

Analysis N°6

Finally, of course, it is important to keep abreast of all the Group's strategic communications to investors, including its development and growth plans, and to compare these objectives with the actual results recorded and published by BNP Paribas in its annual reports.

Analysis before buying or selling BNP Paribas shares
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General presentation of BNP Paribas

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BNP Paribas is a leading financial institution, recognised worldwide for its expertise and commitment to its customers, partners and shareholders. Founded in 2000 following the merger of Banque Nationale de Paris and Paribas, two historic French banks, BNP Paribas has rapidly established itself as one of the major international banks.

With more than 200 years of history, BNP Paribas benefits from solid experience in the banking sector. Headquartered in Paris, France, the company operates on a global scale, with a presence in over 70 countries and offices in the world's major financial cities. This global presence enables BNP Paribas to serve a diverse client base, ranging from individuals to large corporates, financial institutions, governments and investors.

The bank focuses on several core businesses, including retail banking, investment banking, asset management, corporate services and insurance. This diversification of activities enables it to withstand market fluctuations and offer a comprehensive range of financial products and services tailored to its customers' needs.

In retail banking, BNP Paribas offers a wide range of banking and insurance products, covering current accounts, credit cards, home loans, life insurance and many others. Through its global network of branches and online banking services, the bank offers its customers convenient and secure access to their finances wherever they are.

As an investment bank, BNP Paribas plays a major role in global markets. It offers comprehensive solutions in financing, M&A advisory, wealth management and other sophisticated financial services for corporate and institutional clients.

Social and environmental responsibility is at the heart of BNP Paribas' strategy. The bank is committed to promoting sustainable development by financing environmentally friendly projects and encouraging financial inclusion. It is also involved in various charitable and cultural initiatives to support the local communities in which it operates.

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The major competitors of BNP Paribas

If you want to carry out relevant analyses of the BNP Paribas share price, you need to take into account the very strong competition from the banking sector in France and in Europe. In today's market, the main and most dangerous competitors of this banking group are:

Societe Generale 

First of all, the Societe Generale group is currently one of the largest French banking groups and is also one of the oldest banks in the country. In fact, Societe Generale is one of the main players in this sector today and one of the leaders in the non-mutual banking industry, just like BNP Paribas.

Crédit Agricole 

Another bank also in direct competition with BNP Paribas is the banking group Crédit Agricole. Formerly known as the Green Bank because of its original activity in the agricultural world, this group has become the largest network of cooperative and mutual banks in the world. In France alone, the Crédit Agricole group owns and operates 39 regional banks. However, it has become an international general banking group since 1990 and its stock is listed on the stock exchange through the Crédit Agricole SA holding company on the Premier Marché of Euronext Paris. It's also included in the composition of the French benchmark CAC 40 stock market index.

Crédit Mutuel

Another serious competitor of BNP Paribas is Crédit Mutuel. This French group specializes in banking as well as insurance, electronic payment, telephony and remote monitoring. The company therefore employs over 83,000 people in 5,535 points of sale, 4 branches and 34 representative offices. The company is also a multinational which is made up of 2,100 local cooperative and mutual funds grouped into 18 regional federations. It currently has 34.2 million customers in France, including 7.9 million members.

BPCE

Finally, the last serious competitor of BNP Paribas is the BPCE group. This group is the joint body of the Banque Populaire and the Caisse d'Epargne in France and resulted from the merger in 2009 of the Caisse Nationale des caisses d'épargne and the Banque fédérale des banques populaires. The BPCE group is also the second largest cooperative banking institution in the world after Crédit Agricole and includes all the companies that made up the two banking groups along with their own and joint subsidiaries.


The major partners of BNP Paribas

To strengthen its commercial strategy, BNP Paribas has forged links with certain other companies through targeted partnerships. Here are the bank's main current partners.

Snapchat 

Recently, in 2017, BNP Paribas signed a partnership with the American company Snapchat in order to strengthen its expertise in the field of social and mobile digital and to develop its presence on the international communication platform.

PSA 

BNP Paribas has also announced a partnership with PSA as part of its acquisition of Opel's activities. This is a long-term partnership concerning the financing of the group's vehicles.

BpiFrance

In 2014, BNP Paribas had also signed a partnership with BpiFrance to strengthen their ties for the international development of companies.

Eurazeo

In 2019, BNP Paribas also became a partner of Eurazeo as did the CUC group, as both banking entities were selected to manage a fund of between €1 and €1.5 billion dedicated to French and European companies with the strategy of expanding into the Chinese market. These three players will thus actively invest in this fund with other partner investors.

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Positive factors for BNP Paribas
The factors in favour of a rise in the BNP Paribas share price:

To carry out a proper analysis of the BNP Paribas share price and understand how it might perform, it is also important to know the strengths and weaknesses of this listed company. These factors represent the advantages and disadvantages of BNP Paribas shares. To help you do this, we're going to take a look at the major strengths and weaknesses of this bank, and therefore of its share price.

Let's start by looking at the major advantages of BNP Paribas shares, and therefore the company's strengths in relation to its competitors and its market.

  • Global presence: One of BNP Paribas' major strengths is its extensive global presence. With offices in over 70 countries, the bank can serve a diverse international client base. This global presence also gives the bank a competitive advantage, allowing it to capture opportunities in fast-growing emerging markets.
  • Business diversification: BNP Paribas is a universal bank, which means that it operates in several financial sectors, including retail banking, investment banking, asset management and insurance. This diversification gives it a degree of resilience in the face of market fluctuations. If one division is hit by a crisis, the other segments can offset the losses and maintain the bank's overall financial stability.
  • Investment banking expertise: BNP Paribas is recognised for its investment banking expertise, both in capital markets and in M&A advisory. It has succeeded in becoming one of the world's leading investment banks thanks to its ability to provide sophisticated solutions to companies, institutions and investors.
  • Commitment to sustainable development: The bank has clearly demonstrated its commitment to social and environmental responsibility. It has policies in place to finance environmentally friendly projects and to support financial inclusion. BNP Paribas is also involved in charitable and cultural initiatives, reinforcing its reputation as a socially responsible company.
  • Technological innovation: BNP Paribas has invested in cutting-edge technologies to improve the customer experience and optimise its internal operations. It has developed online banking services, user-friendly mobile applications and sophisticated trading platforms, enabling it to remain competitive in an ever-changing industry.
Negative factors for BNP Paribas
The factors in favour of a drop in the BNP Paribas share price:

Let's turn now to the downside of the BNP Paribas share price, and therefore the bank's major weaknesses. Still in its market and facing competition in this sector. 

  • Dependence on financial markets: The very nature of BNP Paribas' activities, particularly in investment banking, makes it dependent on financial market conditions. Fluctuations in interest rates, share prices and bond prices can have a significant impact on the Bank's results.
  • Exposure to operational risks: As a global bank with complex operations, BNP Paribas is exposed to various operational risks such as fraud, technical failures and human error. These risks can result in financial losses and damage to the bank's reputation.
  • Regulation and compliance: As a global financial institution, BNP Paribas is subject to strict regulations in each country in which it operates. Compliance with these regulations can be complex and costly, and penalties for non-compliance can have significant financial consequences.
  • Fierce competition: BNP Paribas operates in a highly competitive industry where large international banks and local financial players compete to attract clients and investors. This intense competition can put pressure on profit margins and limit growth opportunities.
  • Geopolitical and macroeconomic risks: BNP Paribas' global operations make it vulnerable to geopolitical risks, such as international conflicts, trade tensions and political changes. In addition, changes in macroeconomic conditions in different countries may have an impact on the bank's profitability.
The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What subsidiaries does BNP Paribas operate today?

As you know, the BNP Paribas Group operates through a number of subsidiaries, which are listed below. These include BNP Paribas Asset Management, BancWest, Hello Bank, First Hawaiian Bank, BNP Paribas Fortis in Belgium, Banca Nazionale del Lavoro in Italy and BNP Paribas Factor. The group is of course likely to create or acquire other subsidiaries in the years to come.

What is the geographical breakdown of BNP Paribas' net banking income?

As the BNP Paribas group operates internationally, its net banking income or NBI is distributed across different geographical sectors: 73.4% in Europe, 11.7% in North America, 7.4% in Asia Pacific and 7.5% in the rest of the world. Of course, this breakdown will change over time with the Group's strategy of internationalisation and geographical expansion.

How do I buy or sell BNP Paribas shares?

Investing in BNP Paribas shares can be done using CFD (Contracts for Difference) brokers, who offer online trading platforms that allow you to buy or sell BNP Paribas shares using derivative contracts. To get started, you need to select a regulated and reliable CFD broker. Open an account, make a deposit and access the trading platform. Search for the BNP Paribas share in the list of available financial instruments, then place a buy or sell order according to your objectives.

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