Despite the difficult context of 2022, “the bank's efficiency has not deteriorated,” commented executive committee chairperson Béatrice Belorgey, flanked by chairman of the board of directors Étienne Reuter and chief financial officer Laurent Jansen. Photo: Romain Gamba/ Maison Moderne

Despite the difficult context of 2022, “the bank's efficiency has not deteriorated,” commented executive committee chairperson Béatrice Belorgey, flanked by chairman of the board of directors Étienne Reuter and chief financial officer Laurent Jansen. Photo: Romain Gamba/ Maison Moderne

The bank concludes its 2022 financial year with a 4% growth in its net banking income (€1.689bn) and net profit.

BGL BNP Paribas saw its net banking income grow by 4% to €1.689bn. This increase is attributable to a “sustained commercial dynamic,” in the words of Étienne Reuter, chairman of the board of directors, and , chairperson of the executive committee. The balance sheet remained stable at €61.9bn.

“The bank benefited fully from its diversified and integrated model based on three client lines: retail, private and corporate banking,” they added.

In retail and corporate banking, average deposit volumes increased by 7%, mainly driven by corporate clients. The growth of average outstanding loans reached 6%.

In wealth management, assets under management increased by 1%. The inflow of funds was able to offset the effects of the decline in the stock markets. Average deposits rose by 2%, while average loans fell by 2%.

The leasing business suffered from the disruption of supply chains and higher financing costs. Business grew by 1% and average outstandings rose by 4%.

€86.2m in dividends to the state

General expenses increased by 4% to €854.4m.

Belorgey attributed this increase to “the rise in expenses in connection with the inflationary context and the increase in contributions to the various regulatory funds.” The bank also continued to invest both to support the growth of its activities and for the 2022-2025 transformation plan.

This plan includes technological investments “aimed at improving the customer and employee experience and operational efficiency.”

The cost/income ratio remains stable at 50.6%, said Laurent Jansen, chief financial officer.

In the end, the gross operating result increased by 4% to €835m.

The cost of risk fell by 5% to €72.5m. “It is at a low level in relation to outstanding customer loans of €38bn.” Although the solvency ratio fell significantly from 23.5% to 23.3%, it remains above the regulatory minimum of 12%. The group’s own funds amount to €6.4bn.

As for the impact of the rise in interest rates on customer loans, and in particular mortgage loans, Belorgey does not see any failure “for the moment.” She said that her teams are in permanent contact with customers.

The bank will pay a dividend corresponding to 60% of the consolidated net operating result, i.e., €253.467m. The state, which holds 34% of the capital, should thus receive €86.2m.

The bank currently employs 2,152 people for 2,060 FTEs (full time equivalents), which is a stable figure.

For 2023, despite rising interest rates and inflation that remains high, Belorgey noted, with satisfaction, the resilience of commercial activities--“even if credit production is falling”--and said she is vigilant about costs.

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

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