'Very strong' revenue growth at i-bank division bolsters BNP Paribas' Q1 profits

BNP Paribas SA's revenues in the first quarter grew year over year, mainly driven by "very strong" revenue growth at its corporate and institutional banking division.

The French banking group's revenues rose 11.7% to €13.22 billion from €11.83 billion in the first quarter of 2021. Revenues at the corporate and institutional banking, or CIB, division grew 28.1% to €4.70 billion from €3.67 billion, on the back of strong client activity and a sharp 52.8% rise at global markets to €2.82 billion amid a successful integration of prime brokerage and BNP Paribas Exane activities. The global markets segment includes the equity and prime services business line.

In previous years, BNP Paribas struck prime brokerage referral agreements with European peers Deutsche Bank AG and Credit Suisse Group AG in a bid to become Europe's top provider in the segment.

"[The] strength of the new platform is such that even beyond the fact that we have completed those transactions, especially the prime brokerage services, still we are growing the market share," CEO Jean-Laurent Bonnafé said during the group's May 3 earnings call.

CIB in itself is a diversified platform and it is now "running at full speed," Bonnafé said, noting that performance and stability — elements that are key for long-term growth — are both coming from the size of the franchise.

"And the fact that we are growing the market share, the market penetration throughout Europe and, in a disciplined way, in the U.S., the Americas and in Asia, is at the basis of the success too," the CEO added.

Sticking with the 2025 strategic plan

BNP Paribas reiterated its overall objectives from 2022 through 2025, including its aim to achieve revenue growth of more than 3.5% annually and an average annual growth in net income of more than 7% throughout the period.

The lender posted a first-quarter net income attributable to equity holders of €2.11 billion, up 19.2% from €1.77 billion a year ago.

The group said its strong momentum in the quarter is supporting a "solid trajectory" in 2022, noting it is benefitting from the strengths of its diversified and integrated operating model in generating growth.