Results as at 30 june 2006
YET ANOTHER QUARTER OF VERY STRONG GROWTH
• Revenues: €7,245mn (+ 40.1 % / 2Q05)
– Retail Banking (excl. BNL): + 18.7 %
– Asset Management and Services: + 25.3 %
– Corporate and Investment Banking: + 21.9 %
• Operating income : €2,836mn (+ 51.9 % / 2Q05)
• Net income, group share: €1,901mn (+ 30.6 % / 2Q05)
BNL: A NEW VALUE CREATION LEVER FOR THE GROUP
• First quarterly contribution
– Revenues: €757mn
– Pre-tax income: €214mn
• An acquisition completed in record time
• An industrial project well under way
SHARP RISE IN HALF-YEAR PROFITABILITY
• Half-year EPS: €4.4 (+ 15.5 %)
• Annualised after-tax ROE: 22.2 % (+ 0.4 pt)
The Board of Directors of BNP Paribas met on August 1, 2006. It was chaired by Michel Pébereau and it examined the group’s second quarter results and the first half financial statements.
Yet another quarter of very strong growth
In the second quarter the quarterly revenues of BNP Paribas jumped by a record 40.1% to €7,245mn. Operating expenses (€4,288mn) rose 34.2 %, thereby generating an exceptionally favourable 5.9 point jaws effect. As cost of risk remained very low at €121mn (+ 11.0 %), i.e. 0.11 % of the group’s risk weighted assets, gross operating income (€2,957mn) and operating income (€2,836mn) both increased approximately 50%.
Net income, group share, reached €1,901mn, up 30.6 %.
For the very first time, these results include the contribution of BNL: €757mn in revenues against €470mn in operating expenses and €214mn in pre-tax income.
At constant scope and exchange rates and excluding BNP Paribas Capital (1), revenues increased by 19.7 %, operating expenses by 14.4 % (positive 5.3 point jaws effect) and operating income by 35.6 %.
This very sharp rise in results at constant scope and exchange rates excluding BNP Paribas Capital stems from excellent performance in all the group’s core businesses.
In the first half of the year, net income, group share (including BNL for one quarter only) amounted to €3,914mn (+ 23.2 %), i.e. €4.4 (+ 15.5 %) in net half-year EPS. Annualised aftertax return on equity was 22.2 %, up 0.4 points from the first half of 2005.
(1)In compliance with IFRS, capital gains from non-consolidated – namely private equity – stakes are included in revenues. Since the capital gains generated by BNP Paribas Capital can vary widely from one quarter to the next, it is relevant to consider changes in revenues and gross operating income excluding BNP Paribas Capital.