BNP Paribas, the Eurozone’s biggest bank and a top European lessor, has outperformed market expectations in Q2, driven by its corporate debt financing operations and cost management, which helped offset a decline in securities trading.
According to its financial results, BNP Paribas reported a 3.3% increase in revenues compared to the second quarter of 2022. This growth was largely attributed to the success of its corporate debt financing business, which proved to be a significant revenue generator for the bank during this period.
In terms of net income, BNP Paribas achieved a 16.4% increase in Q2 2023 when compared to the same period in the previous year. However, it’s worth noting that the reported net income declined by 4.9%, amounting to €2.81bn ($3.12 bn).
Despite the decline on a reported basis, the figure surpassed analysts’ expectations, as the consensus compiled by the company had predicted a net income of 2.49 bn euros.
The results were dampened by a series of exceptional items, which had an impact on the bank’s bottom line. These items amounted to a total of €723m after tax, with one notable provision being a €125m allocation for unspecified litigation matters.
Leasing Solutions & Arval
Arval and Leasing Solutions achieved a solid performance, with 1.6 million financed vehicles, Arval’s financed fleet expanded by 9.5% compared to the first half 2022, on the back of sustained used car prices that fetched high prices.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below formBy GlobalData
At €23.5bn, Leasing Solutions’ outstandings increased by 6.3% compared to Q2 2022, and new partnerships have been set up in the energy transition.
Revenues at Arval and Leasing Solutions rose sharply by 17.1% compared to Q2 2022, to €1,046 million, thanks to Arval’s performance.
Operating expenses rose by 5.0% compared to Q2 2022, to €358m. The jaws effect was very positive (+12.1 points).
Gross operating income rose very sharply by 24.5% compared to Q2 2022, to €688m.
Pre-tax income of Arval and Leasing Solutions taken together rose sharply by 25.4% compared to Q2 2022, to €658m.