BNP Paribas posts 13.5% profit fall amid strong showing for Arval

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rance’s biggest bank by assets (and European lessor parent) BNP Paribas posted a net profit fall of -13.5% for full-year 2020 (to €7.07bn) versus 2019, yet its motor finance saw its fleet grow 7.3% YoY and its leasing division incurred an almost 2% rise in outstandings, during the global pandemic.

The bank’s revenues were stable at €44.2bn, down only 0.7% on 2019 figures, and costs were down by €1.1bn, meaning gross operating income, the difference between the two, was up +6.2% on 2019.

CET 1 ratio – a measure of the bank’s solvency – stood at 12.8%, up by 70 basis points from a year ago (and well above the 9.31% threshold set by the European Central Bank).

Arval and BNP Paribas Leasing Solutions
The bank’s five specialised businesses and domestic markets (Arval, Leasing Solutions, Personal Investors, Nickel and Luxembourg Retail Banking), achieved a strong increase in business activity, BNP said.

Revenues for the five businesses stood at €3.4bn, up by 7.7% compared to 2019, while operating expenses rose by 3.4% compared to 2019, to €1.9bn on the back of business development.

Arval’s financed fleet grew by 7.3%, compared to 2019, and used car prices held up well, the bank said. The business continued its digital transformation, changed its energy mix, and continued to sign new partnerships (Sixt and Cdiscount), the bank said.

BNP Paribas Leasing Solutions’ outstandings (the amount owned on lease agreements) rose by 1.9% compared to 2019.