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.
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.