BNP Paribas' Luxembourg commercial banking business has reported a 7.1% increase in net banking income for the second quarter. (Photo: Romain Gamba/Maison Moderne)

BNP Paribas' Luxembourg commercial banking business has reported a 7.1% increase in net banking income for the second quarter. (Photo: Romain Gamba/Maison Moderne)

The BNP Paribas banking group has surprised analysts with a 9.1% increase in earnings for the first quarter of 2022. The commercial banking activity in Luxembourg also progressed with a pre-tax profit of €49m.

BNP Paribas has announced a quarterly net income, group share, of €3.177bn, up 9.1% compared to the second quarter of 2021. Excluding exceptional items, it stands at €3.258bn (+18.5%). This result came as a pleasant surprise to analysts, who were expecting a result of around €2.7bn.

"All the business lines contributed to the improvement in performance, despite the complicated economic context," said the banking group in a statement. Revenues rose by 8.5% to €12.8bn (+6.5 at constant scope and exchange rates).

In detail, the corporate & institutional banking business line grew by 10.6%. Commercial, personal banking and services grew by 11.1%, and investment and protection services by 2.2%.

Outstanding loans rose by 8.1% compared with the second quarter of 2021 and outstanding deposits by 7.3%.

In total, net banking income, at €12.781bn, rose sharply by 8.5% compared to the second quarter of 2021. For the first half of the year as a whole, net banking income rose by 10.1% to €25.999bn. The group's operating income amounted to €4.273bn (+12.7% compared to the second quarter of 2021).

Dynamic activity in Luxembourg

The commercial banking business in Luxembourg is also growing.

Outstanding loans increased by 6.6% compared to the second quarter of 2021, driven by growth in real estate and corporate loans. At the same time, outstanding deposits increased by 11%. Finally, off-balance sheet savings were down 8% compared to 30 June 2021, impacted by market performance.

Net banking income rose by 7.1% to €114m. Interest income was up 5.5%, driven by higher volumes, while fees rose 13.7%.

Gross operating income reached €48m (+13.7%). In the end, after allocating one third of the Luxembourg Private Banking result to the wealth management business (investment & protection services division), pre-tax income was €49m, compared with €42m in the first quarter of 2021.

For the first half of the year, net banking income reached €228m (+10.5%), for a pre-tax income of €89m, compared to €63m in the first half of 2021.

This story was first published in French on . It has been translated and edited for Delano.