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February 13, 2014updated 12 Apr 2017 3:59pm

Controlled portfolio reduction for BNP Paribas leasing in 2013

The portfolio of BNP Paribas Leasing Solutions dropped 6% in 2013 to total €17.5bn as the French bank implemented a plan to "adapt" non-core business lines.

By Grant Collinson

The portfolio of BNP Paribas Leasing Solutions dropped 6% in 2013 to total €17.5bn as the French bank implemented a plan to "adapt" non-core business lines.

This reduction had limited impact on revenues thanks to a "selective policy" regarding profitability and the cost / income ratio improved thanks to "very good" cost control, according to BNP Paribas Group’s 2013 financial report.

The Group’s statement said gross operating income was up for Leasing Solutions but declined to report any further details on the business unit’s revenue, profit level and business volume.

Arval, BNP Paribas’s fleet leasing division, reported a stable portfolio level of €8.6bn, up 0.1% on 2012, with a 0.7% decline in its total fleet to 684,000 vehicles.

In a statement accompanying the results, the Group said "ambitious business development plans" for Arval and Leasing Solutions would be announced as part of the company’s 2014-2016 business plan.

Pre-tax profit for the BNP Paribas’s Retail Banking division, which includes Leasing Solutions and Arval, was €6.1bn for 2013, down 3.2% on the 2012 figure, and pre-tax profit for the Group was €8.2bn, down 21.1% year-on-year.

Jean-Laurent Bonnafé, chief executive of BNP Paribas, said the Group had shown "good operating resilience in a lacklustre economic environment in Europe" thanks to a "diversified business model".

BNP Paribas Leasing Solutions was placed second in the 2012 Leaseurope league table, which is ranked by new business volume, reporting €12.3bn in new business volume including business from Arval.

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