BNP Paribas Reports Stronger Wealth, Asset Management Results

Tom Burroughes

6 February 2020

The wealth and asset management arm of clocked up a rise in revenues in the fourth quarter of 2019, at €957 million ($1.052 billion), versus €803 million in the previous three-month period, and down from €866 million a year earlier.

Pre-tax income in this segment rose to €216 million in Q4 2019 from €146 million in the same quarter the previous year, the firm said in a statement yesterday.

For the whole of 2019, the insurance, wealth and asset management businesses continued their growth. Assets under management reached €1.123 trillion at 31 December 2019. They rose by 9.3 per cent compared with 31 December 2018 due in particular to a “very favourable performance effect”: +€79.7 billion on the back of the rebound of financial markets.

Net asset inflows came in at €20.2 billion with good net asset inflows at wealth management in Asia, Germany and Belgium, slight asset outflows in asset management due to money market funds, good net asset inflows in real estate investment management in Germany and France and, lastly, “good asset inflows” in insurance in particular in unit-linked policies.

The Paris-listed firm said the foreign exchange effect on the numbers was positive ((+€3.3 billion) and a scope effect unfavourable (-€3.6 billion) in connection with the deconsolidation of SBI Life.

As at 31 December 2019, assets under management broke down as follows: Asset management (€470 billion, including €30 billion from real estate investment management), wealth management (€393 billion), and insurance (€260 billion).

Group results
Across the group as a whole, revenues were €44.597 billion euros, up by 4.9 per cent in 2019 from a year earlier.

BNP Paribas’ group net income attributable to equity holders thus came in at €8.173 billion, up by 8.6 per cent compared with 2018 and rising by 4.7 per cent excluding exceptional items.