BNPParibas PDF

BNP Paribas Group
Company Profile
Reference Code: 247

Publication Date: Oct 2005
www.datamonitor.com
Datamonitor USA Datamonitor Europe Datamonitor Germany Datamonitor Hong Kong
245 5th Avenue Charles House Kastor & Pollux 2802-2803 Admiralty Centre
4th Floor 108-110 Finchley Road Platz der Einheit 1 Tower 1
New York, NY 10016 London NW3 5JJ 60327 Frankfurt 18 Harcourt Road
USA United Kingdom Deutschland Hong Kong
t: +1 212 686 7400 t: +44 20 7675 7000 t: +49 69 9754 4517 t: +852 2520 1177
f: +1 212 686 2626 f: +44 20 7675 7500 f: +49 69 9754 4900 f: +852 2520 1165
e: usinfo@datamonitor.com e: eurinfo@datamonitor.com e: deinfo@datamonitor.com e: hkinfo@datamonitor.com
ABOUT DATAMONITOR
Datamonitor is a leading business information company specializing in industry

analysis.
Through its proprietary databases and wealth of expertise, Datamonitor provides

clients with unbiased expert analysis and in depth forecasts for six industry sectors:
Healthcare, Technology, Automotive, Energy, Consumer Markets, and Financial
Services.
The company also advises clients on the impact that new technology and eCommerce
will have on their businesses. Datamonitor maintains its headquarters in London, and
regional offices in New York, Frankfurt, and Hong Kong. The company serves the
world's largest 5000 companies.
Datamonitor's premium reports are based on primary research with industry panels
and consumers. We gather information on market segmentation, market growth and
pricing, competitors and products. Our experts then interpret this data to produce
detailed forecasts and actionable recommendations, helping you create new business
opportunities and ideas.
Our series of company, industry and country profiles complements our premium
products, providing top-level information on 10,000 companies, 2,500 industries and
50 countries. While they do not contain the highly detailed breakdowns found in
premium reports, profiles give you the most important qualitative and quantitative
summary information you need - including predictions and forecasts.
All Rights Reserved.

No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any
means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the
publisher, Datamonitor plc.
The facts of this profile are believed to be correct at the time of publication but cannot be guaranteed.
Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on
information gathered in good faith from both primary and secondary sources, whose accuracy we are not
always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken
based on any information that may subsequently prove to be incorrect.
BNP Paribas Group

© Datamonitor Page 2
BNP PARIBAS GROUP
TABLE OF CONTENTS
TABLE OF CONTENTS
Company Overview ....................................................... 4
Key Facts........................................................................ 4
Business Description .................................................... 5
History ............................................................................ 6
Key Employees .............................................................. 7
Major Products And Services..................................... 12
Products And Services Analysis................................ 13
SWOT Analysis ............................................................ 15
Top Competitors .......................................................... 20
Company View ............................................................. 21
Locations and Subsidiaries ........................................ 22
Latest Company Comment ......................................... 23
Latest Company News ................................................ 25
BNP Paribas Group

BNP PARIBAS GROUP
Company Overview
COMPANY OVERVIEW
BNP Paribas is a banking company with corporate, retail, and investment banking
operations. It also focuses on international retail banking, specialized financial
services, private banking, asset management, and insurance services. The company
operates in about 85 countries around the world. It is headquartered in Paris, France
and employs about 95,000 people.
The company recorded revenues of E44.4 billion during the fiscal year ended
December 2004, an increase of 6.9% over 2003. The increase was primarily
attributable to the improved performance across a majority of its divisions. The net
profit was E4.7 billion during fiscal year 2004, an increase of 24.1% over 2003.
KEY FACTS
Head Office BNP Paribas Group

16, boulevard des Italiens
75009 Paris
France
Phone +33 1 40 14 45 46
Fax +33 1 40 14 69 73
Web Address http://www.bnpparibas.com
Revenues/turnover (€ 44400
Mn)
Financial Year End December
Employees 94900
SIC Codes SIC 6021 National Commercial Banks

SIC 6082 Foreign Trade and International Banking Institutio
NAICS Codes 52211, 52221, 522293, 522298
Paris Ticker BNP
BNP Paribas Group

BNP PARIBAS GROUP
Business Description
BUSINESS DESCRIPTION
BNP Paribas is a leading financial organization. It operates through three core

businesses: corporate and investment banking, retail banking, and asset
management and services in almost 85 countries in the world.
The corporate and investment banking division offers advisory services for mergers
and acquisitions and primary equity market transactions through its subsidiaries, one
of them being BancWest Corporation. It is also engaged in designing and structuring a
range of financing arrangements, including syndicated loans, acquisition financing,
LBO financing, project financing, optimization and asset financing, media and
telecommunications financing, marine financing and aircraft financing.
The retail banking division offers a line of products and services ranging from current
account services to complex financial engineering services in the areas of corporate
financing and asset management.
The asset management and services division offers a range of products and services
tailored to the financial and wealth management needs of a private clientele through
its subsidiary, BNP Paribas Asset Management. Its approach is heavily weighted
towards advisory services and personalized management. Securities services
specializes in securities services for companies and financial institutions, including
banks, brokerage houses, pension funds, asset managers and insurance companies.
In addition, the BNP Paribas Capital unit, a subsidiary, spearheads the private equity
business. BNP Paribas also offers a range of property-related products and services
in France and has teams who specialize in managing portfolios of quoted stocks and
sovereign risks.
BNP Paribas Group

BNP PARIBAS GROUP
History
HISTORY
BNP Paribas was created in August 1999 through the merger of Banque Nationale de
Paris and Paribas. The bank strengthened its position as a custodian bank through
the acquisition of the securities division of AXA Banque in the same year.
In 2000 BNP Paribas completely reorganized its Spanish market by selling off a
number of unprofitable branches and consolidating others. This restructuring allowed
the group enough finance to launch Global Risk solutions, another subsidiary of the
new company, which was designed to aid its own subsidiaries and other companies in
decision making within the global marketplace.
In 2001 BNP Paribas Asset Management acquired a majority stake of Overlay Asset
Management, a company incorporated in France, specializing in Currency Overlay.
Later in that year, BNP Paribas spent $2.4 billion on buying the 55% of BancWest.
During April 2002, BNP Paribas completed the $2.4 billion acquisition of United
California Bank (UCB). In the same year, BNP Paribas acquired Cogent, the UK
investment administration arm of AMP, the Australian based financial services group.
In late 2003, BNP Paribas Peregrine launched a China investment banking business;
a joint venture with Wuhan based Changjiang Securities.
In January 2004 Arval PHH, BNP Paribas’ car rental services subsidiary, acquired
100% of Arma, a company which provides long-term car fleet leasing services, with its
main activity in the Netherlands. In March 2004, BancWest Corporation, a wholly
owned subsidiary of BNP Paribas, acquired Community First Bankshares, a Nasdaq
listed company in Western US. BancWest agreed to acquire Union Safe Deposit
Bank, the next month.
February 2005 saw the company acquire 50% of the holding company which controls
the bank Turk Ekonomi Bankasi (TEB). In the following month, Atisreal UK, a BNP
Paribas subsidiary, acquired part of the former Chesterton business. In April 2005,
ABN AMRO and BNP Paribas announced that they had entered into an agreement
whereby BNP Paribas Private Bank would acquire Nachenius, Tjeenk, an exclusive
Dutch private bank, from ABN AMRO. In the very next month, the company acquired
the Asia Pacific equity execution business of Calyon, Credit Agricole Group’s
corporate and investment bank. In June 2005, BNP Paribas purchased Commercial
Federal for $1.36 billion, in order to reinforce its presence in the western US market.
BNP Paribas Group

BNP PARIBAS GROUP
Key Employees
KEY EMPLOYEES
Name Job Title Board Compensation

Baudouin Prot Chief Executive Officer Executive Board
Michel Pebereau Director Non Executive Board
Patrick Auguste Director Non Executive Board
Claude Bebear Director Non Executive Board
Jean Louis Beffa Director Non Executive Board
Gerhard Cromme Director Non Executive Board
Jacques Friedmann Director Non Executive Board
Jean Marie Gianno Director Non Executive Board
Francois Grappotte Director Non Executive Board
Alain Joly Director Non Executive Board
Denis Kessler Director Non Executive Board
Lindsay Owen Jones Director Non Executive Board
Jean Francois Lepetit Director Non Executive Board
Helene Ploix Director Non Executive Board
Louis Schweitzer Director Non Executive Board
Jean Francois Trufelli Director Non Executive Board
Georges Chodron de Courcel Chief Operating Officer Senior Management
Jean Clamon Chief Operating Officer Senior Management
Alain Papiasse Head, Asset Management Senior Management
and Services
Philippe Blavier Corporate and Investment Senior Management
Banking
Jean Laurent Bonnafe French Retail Banking Senior Management
Philippe Bordenave Group Development and Senior Management
Finance
Herve Gouezel Group Information Systems Senior Management
Bernard Lemee Group Human Resources Senior Management
Vivien Levy Garboua Head, Compliance Function Senior Management
Pierre Mariani International Retail and Senior Management
Financial Services
BNP Paribas Group

BNP PARIBAS GROUP
Key Employee Biographies
KEY EMPLOYEE BIOGRAPHIES
Michel Pebereau
Board: Non Executive Board

Job Title: Director
Since: 2003
Age: 63
Mr Pebereau is the chairman of the board of directors of BNP Paribas. He is also on

the board of directors of Lafarge, Saint Gobain, Total and BNP Paribas UK Holdings,
UK.
Claude Bebear

Job Title: Director
Since: 2003
Age: 70
Mr Bebear is the chairman of the supervisory board of Axa and also the chairman and
chief executive officer of Finaxa. He is also on the board of directors of companies like
Schneider Electric and Vivendi Universal.
Jean Louis Beffa

Job Title: Director
Since: 2003
Age: 64
Mr Beffa is the chairman and chief executive officer of Compagnie de Saint Gobain.
He is also the vice chairman of the board of directors of BNP Paribas and the
chairman of Claude Bernard Participations.
BNP Paribas Group

BNP PARIBAS GROUP
Gerhard Cromme

Job Title: Director
Since: 2003
Age: 62
Mr Cromme is the chairman of the supervisory board of ThyssenKrupp. He also sits

on the supervisory boards of many companies like Allianz, Axel Springer, Verlag,
Deutsche Lufthansa and E.ON.
Jacques Friedmann

Job Title: Director
Since: 1993
Age: 73
Mr Friedmann is the chairman of the Conseil d Orientation of the Musee du Quai

Branly. He is also the director of Total and LVMH.
Francois Grappotte

Job Title: Director
Since: 1999
Age: 69
Mr Grappotte is the chairman of Legrand. He is also the member of the supervisory

board of Michelin and the director of Valeo Bufer Elektrik, Eltas Elektrik, Legrand
Espanola, Lumina Parent, The Wiremold Company, and Pass & Seymour.
Alain Joly

Job Title: Director
BNP Paribas Group

BNP PARIBAS GROUP
Since: 1995
Age: 67
Mr Joly is the chairman of the supervisory board of Air Liquide. He is also the director
of Lafarge, Societe d Oxygene et d Acetylene d Extreme-Orient, Air Liquide
International Corporation and American Air Liquide.
Denis Kessler

Job Title: Director
Since: 2000
Age: 53
Mr Kessler is the chairman and chief executive officer of SCOR. He is also the director
of Bollore Investissement, Dassault Aviation, Dexia, Cogedim, AMVESCAP, Scor
Canada Reinsurance Company.
Lindsay Owen Jones

Job Title: Director
Since: 1989
Age: 59
Mr Jones is the chairman and chief executive officer of L’Oreal. He is also the director
of Gesparal and Sanofi Synthelabo.
Jean Francois Lepetit

Job Title: Director
Since: 2004
Age: 63
Mr Lepetit is a professor at EDHEC Business School (Lille).
BNP Paribas Group

BNP PARIBAS GROUP
Helene Ploix

Job Title: Director
Since: 2003
Age: 61
Mr Ploix is the chairman of Pechel Industries. He is also the director of Lafarge, Boots
Group and Ferring.
Louis Schweitzer

Job Title: Director
Since: 1993
Mr Schweitzer is the chairman and chief executive officer of Renault. He is also the
director of Electricite de France, Renault Credit International, AB Volvo and Veolia
Environnement.
Jean Francois Trufelli

Job Title: Director
Since: 2004
Age: 53
Mr Trufelli is a statistical studies technician.
BNP Paribas Group

BNP PARIBAS GROUP
Major Products And Services
MAJOR PRODUCTS AND SERVICES
BNP Paribas is a banking company with corporate, retail, and investment banking
operations.
The company’s products and services are categorized under the following different
segments:
Corporate and investment banking:
Advisory and capital markets
Corporate finance
Equities
Fixed income
Specialized financing
Structured finance
Export financing
Commodities financing
Project finance
Retail banking:
Retail banking
Consumer finance
Asset finance
Mortgage financing
Business equipment management
Asset management and services:
Institutional and private asset management services

Insurance
Global securities services
Real estate services
BNP Paribas Group

BNP PARIBAS GROUP
Products And Services Analysis
PRODUCTS AND SERVICES ANALYSIS
The company recorded revenues of E44,351 million during the fiscal year ended
December 2004, an increase of 6.9% over 2003. The increase was primarily
attributable to the improved performance across a majority of its divisions. For the
fiscal year 2004, revenues from France, the company’s largest geographical market,
accounted for 55.1% of the total revenue.
BNP Paribas Group generates revenues through its six business divisions: corporate
and investment banking (30.2% of total revenue during fiscal 2004), financial services
and international retail banking (26.9%), French retail banking (26.1%), asset
management and services (16%), other business units (0.7%), and BNP Paribas
capital (0.1%).
Revenues by Division
During the fiscal year 2004, the corporate and investment banking division recorded
revenues of E5,685 million, a decrease of 2.3% over fiscal 2003.
The financial services and international retail banking division recorded revenues of
E5,057 million in 2004, an increase of 3.1% over fiscal 2003.
The French retail banking division recorded revenues of E4,922 million in 2004, an
increase of 4% over fiscal 2003.
The asset management and services division recorded revenues of E3,019 million in
2004, an increase of 21.9% over fiscal 2003.
The other business units division recorded revenues of E136 million in 2004, as
compared to a revenue of E39 million in fiscal 2003.
The BNP Paribas capital division recorded revenues of E4 million in 2004, as

compared to a loss of E34 million in fiscal 2003.
Revenues by Geography
France, BNP Paribas Group’s largest geographical market, accounted for 55.1% of
the total revenue in the fiscal year 2004. Revenues from France reached E10,365
million in 2004, an increase of 4.8% over fiscal 2003.
BNP Paribas Group

BNP PARIBAS GROUP
Products And Services Analysis
Other European economic area countries accounted for 22.7% of the total revenue.
Revenues from this region reached E4,269 million in 2004, an increase of 13.9% over
fiscal 2003.
America and Asia accounted for 19.9% of the total revenue. Revenues from America
and Asia reached E3,752 million in 2004, a decrease of 3.1% over fiscal 2003.
Other countries accounted for 2.3% of the total revenue. Revenues from these
countries reached E437 million in 2004, an increase of 3.6% over fiscal 2003.
* The company reports its segmental revenues as the total of non-interest income and
net-interest income. However, the total revenue figure for the company has been
computed as the sum of total interest income and total non-interest income. Thus, the
total revenue of the segments does not add up to the total revenue for the company.
BNP Paribas Group

BNP PARIBAS GROUP
SWOT Analysis
SWOT ANALYSIS
BNP Paribas is France’s largest listed banking group, ranking first in France in terms
of net income and fourth in Europe for stockholder equity. The bank has a global
presence that helps it reduce the exposure to the vagaries of the economic conditions
of any one country. However, it is threatened by the adoption of the Basel II norms
that will result in increased compliance cost for the company.
Strengths Weaknesses
Global presence Decline in interest income
Wide array of services High proportion of NPLs
Strong market position Low growth in revenues

Opportunities Threats
Acquisition of FundQuest Basel II Accord
Increasing demand for private banking services Consolidation in the financial services industry
Emerging retirement market IFRS Accounting
Strengths
Global presence
BNP Paribas is one of the largest financial services institutions and operates from
about 200 offices worldwide. Apart from France and other European countries the
company also operates in countries like the US, Canada, Australia, Brazil, China,
Japan, Egypt, Algeria and India. The benefit of having operations worldwide is two
fold. One, that the company would not have to incur the establishment costs of setting
up its services if it finds business prospects in any of these countries and two, that the
company would not be exposed to the vagaries of the economic conditions of any one
country of operations.
Wide array of services
BNP Paribas provides its customers with a wide array of services that ranges from
corporate finance, export financing and advisory services to retail banking, mortgage
financing, institutional and private asset management services. Such a wide array of
services insulates the performance of the company from revenues generated by any
BNP Paribas Group

BNP PARIBAS GROUP
SWOT Analysis
one service thereby assuring a relatively stable top line for the company. In addition, it
also provides the company with access to a wider end market and enhanced cross-
selling opportunities.
Strong market position
BNP Paribas enjoys a strong market position. It is one of the largest banks in Europe
in terms of market capitalization. BNP is one of the top 15 players in merger and
acquisition transactions in Europe, being ranked number 13 among European players
in terms of transaction volumes and number 11 as adviser to companies considering a
merger or acquisition. It is also a leading player in France and Europe as a whole for
primary equity business, holding the eighth spot in Europe and the top slot in France.
Its French retail banking segment is one of the most popular retail banking networks.
Such a strong market position enhances the company’s bargaining leverage and
gives it a competitive advantage as against its peers in the industry.
Weaknesses
Decline in interest income
BNP Paribas has witnessed a considerable decline in its interest income. Interest
income forms a major portion of the total revenue earned by any financial institution.
In the case of BNP it forms about 63.9% of the total revenue earned in fiscal 2004.
The company has witnessed a decline of about 8.1% (CAGR) in the 2000-04 period.
Although there was a marginal rise of 4.3% in fiscal 2004, interest income earned by
the company has not been able to come up to the 2000 level. If this trend in decline
continues, the company may have to bear an adverse impact on its top line growth.
High proportion of NPLs
The amount of non-performing loans (NPLs) that the company has as a proportion to
its loans is higher than many of its peers in the industry. In fiscal 2004, gross NPLs
formed 6.3% of the total loans for the company. This proportion was much higher for
the bank as against some of its closest competitors like ABN AMRO Holdings (2.9%),
Barclays (2.3%) and Credit Suisse (4.8%). Such a high proportion of NPLs will not
only negatively impact the return generated by the company on its assets but would
also hamper the confidence of its shareholders.
Low growth in revenues
The company has posted a slower growth rate in its revenues as compared to some
its closest competitors operating in the European banking industry. In fiscal 2004, the
BNP Paribas Group

BNP PARIBAS GROUP
SWOT Analysis
company achieved a growth of only about 6.9% in its revenues, whereas, some its
major competitors like UBS, Standard Chartered and HSBC Holdings achieved a
growth rate of about 25%, 27% and 23%, respectively. If the company continues to
derive lower growth rate in its revenues as compared to its peers in the industry it may
result in a loss of market share.
Opportunities
Acquisition of FundQuest
In June 2005, BNP Paribas became a leading global player in open architecture with
the acquisition of FundQuest in the US. BNP Paribas Asset Management has reached
an agreement to acquire US based, FundQuest, with $10 billion in assets under
management and administration. BNP will use FundQuest as its global brand for
wealth management solutions in open architecture in the US and Europe.
Massachusetts based FundQuest, provides a range of wealth management solutions

to more than 60 financial institutions, mainly banks and insurance broker-dealers. This
acquisition is a strategic opportunity for BNP Paribas and FundQuest to become an
integrated global market leader that uses open architecture to deliver wealth
management solutions for institutions and advisors. In the US, BNP Paribas will make
a major move in managed accounts, a segment of the US investment industry with
strong growth potential. In Europe, FundQuest will join forces with Cortal Consors
Fund Management (CFM), a fully-owned subsidiary of BNP Paribas and a European
leader in open architecture and investment advisory services with $18 billion under
management and advisory. CFM’s existing multi-management solutions will be
combined with FundQuest’s expertise in managed accounts to create a global leader
with nearly $30 billion under management and administration.
Increasing demand for private banking services
Improved global outlook and strong performance of capital markets has resulted in
strong demand for private banking services. This is evident from the growth in the
number of high net worth individuals (HNWIs) (individuals with a net worth of at least
US E1 million), which grew by 7.3% in 2004 to reach 8.3 million, an addition of
600,000. Asia-Pacific has witnessed one of the highest growth rates (over 8%) during
2004, which was almost twice as higher than Europe. Singapore, Hong Kong,
Australia and India have seen highest rates of HNWI population growth. Global high
net worth wealth is projected to grow at a CAGR of 6.5% over the next five years,
reaching E42.2 trillion by 2009. Since BNP has wide spread operations in almost all of
BNP Paribas Group

BNP PARIBAS GROUP
SWOT Analysis
the countries mentioned above, this trend is expected to boost the company’s wealth
management services.
Emerging retirement market
The retirement market presents a key growth opportunity for financial service
institutions as government support of pension plans weakens. Insurance firms and
banks are well positioned to benefit and are investing heavily to pursue this segment
more vigorously. The responsibility of providing income for retirement is shifting from
the state to the individual in most parts of the world. Pensions make up an average of
21% of public spending in European Union countries. The long-term savings market in
Europe is predicted to be worth about E26 trillion by the end of 2010, compared with
E12 trillion in 1999. The life insurance market in the UK is also forecast to increase by
6.6% over the forecasted period, to reach a value of £38.4 billion (approximately
E56.6 billion) in 2008 (as of December 2004). BNP provides a wide range of products
including personal financial services, pensions, insurance and investment products.
The positive outlook for the long term savings market would provide the company with
the opportunity to increase revenues from the personal financial services, retirement,
insurance, and investment offerings.
Threats
Basel II Accord
The goal of the Basel II Accord is to better align regulatory capital measures with a
bank’s inherent risk profile based on credit, market and operational risks. The Accord
is an outcome of more than five years of work by the Basel Committee against a
backdrop of intense deliberations and dialogue within the banking industry, and
among regulators around specific rules. The Basel II Capital Accord requires banks to
assess the risk in each area of their business and set aside adequate regulatory
capital. Complying with Basel II qualification standards requires a significant history of
consistent, accurate and granular data within the credit management information
systems. Due to this, the cost of compliance has become a heavy burden on banks. In
a survey conducted in 2004, financial firms ranked compliance as their most critical
spending issue. High compliance costs would pull down the margins of banks such as
BNP and adversely affect their overall profitability.
Consolidation in the financial services industry
In recent years, there has been substantial consolidation and convergence among
companies in the financial services industry. In particular, a number of large
BNP Paribas Group

BNP PARIBAS GROUP
SWOT Analysis
commercial banks, insurance companies and other broad-based financial services

firms have established or acquired broker-dealers or have merged with other financial
institutions in Europe and overseas. While the traditional reasons for mergers
achieving scale and building market share are still valid, today’s mergers are likely to
be driven by reasons that go beyond sheer increases in size. In many cases, banks
are now pursuing deals that will fill in gaps in product lineups and broaden geographic
coverage in current markets as well as enter new markets.
Banks are also seeking to balance the more volatile areas of their business such as
investment banking with more stable revenue streams provided by retail banking.
Bank of America’s E47 billion purchase of FleetBoston; JPMorgan Chase’s E58 billion
acquisition of Bank One; and Mitsubishi Tokyo Financial Group’s interest in the retail
operations of UFJ Holdings highlight these trends. Through such business alliances
and consolidations, these organizations have attained ability to supplement their
investment banking and securities business with commercial banking, insurance and
other financial services revenues. This has greatly increased competition for banks
like BNP Paribas, which may adversely affect its market share.
IFRS Accounting
From January 2005, all European Union member countries and Australia will have to
report their financial results according to the International Financial Reporting
Standards. As per these guideline banks will have to measure more of their exposures
using fair value (ie market value) techniques. These guidelines also restrict banks in
their use of hedge accounting. Whilst this should make their accounts far more
transparent, these changes will result in increased earnings volatility, and could
significantly impact companies like BNP Paribas.
BNP Paribas Group

BNP PARIBAS GROUP
Top Competitors
TOP COMPETITORS
The following companies are the major competitors of BNP Paribas Group:
ABN AMRO Holding N.V.

Allied Irish Banks, p.l.c.
Bank of America Corporation
Barclays PLC
Credit Agricole, S.A.
Fortis
Société Générale
Standard Chartered PLC
SunTrust Banks, Inc.
Wells Fargo & Company
The Toronto-Dominion Bank
Canadian Imperial Bank of Commerce
KBC Bank and Insurance Holding Company NV
Citigroup Inc.
HSBC Holdings plc
National Australia Bank Group Limited
Credit Suisse Group
Deutsche Bank AG
ING Groep N.V.
MBNA Corporation
UBS AG
TD Waterhouse Group, Inc.
BNP Paribas Group

BNP PARIBAS GROUP
Company View
COMPANY VIEW
A statement by Michel Pebereau, chairman and Baudouin Prot chief executive officer,
of BNP Paribas Group is given below. The statement has been taken from the
company’s 2004 annual report.
BNP Paribas turned in a stellar performance in 2004, boosted by ongoing vigorous

development and improved competitive positions on the majority of its markets.
The Group’s relentless drive to evolve and fortify its operations has fuelled major
advances in each of our core businesses over the last few years. This success is
rooted in the strong expansion of our International Retail Banking and Financial
Services business, which has pursued a buoyant pace of external growth against a
backdrop of sustained organic expansion; the deployment of an aggressive policy
seeking to increase our foothold on the French Retail Banking market, which has
given BNP Paribas one of the fastest growing client portfolios in France; the
development of the Corporate and Investment Banking business, which has emerged
as a European or global leader in each of its businesses; and the resilience and
recovery of the Asset Management and Services business amid the crisis confronting
the financial markets.
For many years now, BNP Paribas has demonstrated its versatility and ability to stay
one step ahead of fast-moving changes in technology, client expectations and its
business environment, and it has constantly strived to achieve the right balance
between the interests of its shareholders, its clients and its employees. The Group’s
results in 2004 bear testimony to this momentum.
BNP Paribas Group

BNP PARIBAS GROUP
Locations and Subsidiaries
LOCATIONS AND SUBSIDIARIES
Head Office
BNP Paribas Group

16, boulevard des Italiens
75009 Paris
France
P: 33 1 40 14 45 46
F: 33 1 40 14 69 73
www.bnpparibas.com
Other Locations and Subsidiaries
CortalConsors BancWest Corporation

Johannesgasse 20 999 Bishop Street
90006 Nuremberg Honolulu
Germany HI 96813
www.consors.de United States
P: 1 808 525 7000
F: 1 808 525 5798
www.bancwestcorp.com
Cetelem Cobepa
20, Avenue Georges Pompidou Parc Atrium
92595 Levallois-Perret Rue de la Chancellerie 2
France 1000 Brussels
P: 33 1 46 39 99 39 Belguim
F: 33 1 46 39 99 43 P: 32 2 213 32 10
www.cetelem.com F: 32 2 513 17 02
www.cobepa.be
Pinnacle Insurance Türk Ekonomi Bankasi
Pinnacle House Meclis-I Mebusan Caddesi No 35
A1 Barnet Way Findikli
Borehamwood 34427 Istanbul
Hertfordshire Turkey
WD6 2XX www.teb.com.tr
United Kingdom
www.pinnacle.co.uk
Klepierre
21 Avenue Kléber
75116 Paris
France
www.klepierre.com
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company Comment
LATEST COMPANY COMMENT
BNP Paribas: when a plan comes together
12/05/2005
BNP Paribas has posted excellent first quarter financial results.
BNP Paribas [BNP.PA] has released Q1 results showing profits are up by 56% against
Q1 2004. The announcement highlights a very strong 12 month period for the group,
with strong growth across its business. The results should be enough to make its
rivals sit up and take notice as the French bank’s global vision takes shape.
BNP Paribas has announced a net banking income of E5,603

million in the first quarter 2005, up 19.3% from the first quarter 2004. Despite
continued expansion, gross operating income was some 36.5% higher than the year
before. The buoyant results were attributed to strong organic growth and new
revenues brought in via acquisitions.
The group’s M&A policy of recent years has seen it purchase carefully selected
targets that will complement its existing operations, with deals in emerging markets a
recurring theme. Last year, BNP Paribas bought a 50% stake in Turkish banking
group TEB Mali Yatirimlar, while more recently it acquired consumer finance provider
Credisson in Romania.
Much of this expansion abroad has been built on a solid base at home. Its domestic
retail banking operation might have been seen as a potential stumbling block given
the sluggish nature of the wider French economy, but this branch of the business saw
a 32.8% increase in pre-tax income. The asset management and investment banking
arms also saw prodigious income growth.
Overall it seems BNP Paribas, which claims the honor of being the most profitable
bank in the Eurozone, has once again proved it is a highly successful and consistent
performer. With highly regarded capabilities in a range of financial services sectors
and increasing determination to grow market share internationally in both established
and emerging markets, the group also has strong potential for long term growth and
value creation.
This disciplined and progressive approach to international growth, coupled with

exhaustive pursuit of synergies through better organizational alignment and cross-
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company Comment
selling, serve as a good case study of how the universal banking model works when
effectively and efficiently deployed.
ABN Amro / BNP Paribas: private progression
21/04/2005
ABN Amro has agreed the sale of its Dutch private banking unit to BNP Paribas.
BNP Paribas [BNP.PA] is to enter the Dutch private banking market with the purchase
of Nachenius, Tjeenk & Co from ABN Amro [AAB.AS]. The deal reflects both banks’
continuing plans to create a pan European private banking network. If the same pro-
active approach can be extended to developing their recently acquired businesses
then both groups look very well-placed for the future growth.
ABN Amro’s move brings BNP Paribas E1.3 billion in assets under management and
its first foothold within the Dutch wealth management market. The French bank has
also bought businesses in Turkey and Spain in recent years, as well as some
operations in smaller territories such as Monaco and Switzerland. Yet on a broader
level, the deal is further proof of the two banks’ proactive approach to delivering on
their European strategies.
While ABN Amro and BNP Paribas were both slower off the mark than rival UBS in
terms of merger and acquisition activity, the pace of their efforts has picked up
significantly in the last 18 months and there is now a sense that they are laying the
latter elements of the groundwork for their future European development.
Although ABN Amro is not revealing terms of the deal, analysts at Rabo Securities
expect it to net the Dutch bank around E50-75 million. ABN Amro insists the sale was
in accordance with its strategy to focus on its core activities, an explanation that may
raise some eyebrows given that private banking in the Netherlands is clearly one line
of business to which the group is heavily committed under its own ABN Amro private
banking brand. The move is also slightly surprising given that it could have exploited
similar synergies in the Dutch market to the ones BNP Paribas is proposing.
It would therefore seem that ABN Amro has taken this opportunity to reshuffle its
private banking portfolio. Overall this is probably a sensible move, as it recognizes its
strong penetration in the Dutch market gives it has less scope for growth there than in
Italy, Portugal and Germany, where it has been actively deal-making in the last 18
months to secure itself a pan-European presence and a platform for growth.
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
LATEST COMPANY NEWS
BNP Paribas buys stake in Ukraine bank
20/12/2005
French financial services group BNP Paribas is set to buy a 51% stake in Ukrainian
bank UkrSibbank as part of its expansion strategy into the growing eastern European
financial services market.
The Kiev-based bank is among the top five Ukrainian banks by assets, loans and
branch networks. BNP Paribas did not disclose the price of the stake in its statement,
but said that full year net income for the Ukraine bank is forecasted to be around $13
million and for the first half of 2005 the bank had total assets of $1.4 billion.
The transaction will strengthen BNP Paribas’s presence in far eastern Europe,
according to the bank, a market with low banking penetration rates of retail lending
products, but a growing economy. The French bank recently announced that it
planned to open 150 branches in Russia over the next six years.
BNP Paribas to gain foothold in China through Nanjing stake buy
23/09/2005
French bank BNP Paribas has agreed to pay $100 million to acquire a 20% stake in
China’s Nanjing City Commercial Bank, sources emerging from the region claim.
According to reports from the Oriental Morning Post, BNP and Nanjing have thrashed
out a deal but as yet have not made formal arrangements. The source, believed to be
from inside Nanjing bank, suggested the official agreement signing would take place
next month.
BNP has refused to comment an whether a deal has been struck. However, a BNP
Paribas spokeswoman has confirmed to the AFX news agency that the two parties
were engaged in negotiations.
BNP will acquire half its stake in Nanjing from International Finance Corp, the private
sector financing arm of the World Bank. After the sale International Finance Corp will
be left with a 5% share in the Chinese bank, therefore foreign ownership in Nanjing
will be at the maximum allowed by Chinese law of 25%, with 20% in BNP’s hands.
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
Deutsche Bank agrees to buy stake in Chinese bank
22/09/2005
German banking titan Deutsche Bank has reached a preliminary agreement to spend
around $200 million to acquire a 10% stake in mid-level Chinese banking institution
Huaxia Bank.
The development continues an increasingly frequent trend of western finance

companies buying a presence in the burgeoning Chinese finance sector through
acquire stakes in local companies.
In joining the race to establish a Chinese footprint, Deutsche Bank, one of the largest
banking organizations in Europe, has signed an accord to purchase roughly one tenth
of the $2 billion valued Huaxia.
According to the Financial Times, Deutsche Bank will team up with another European
financial institution, believed to be either Societe Generale or BNP Paribas, to secure
a combined stake of 15%. The partner organization will pay a further $100 million for
its 5% share of the deal.
Currently, foreign companies can only own a maximum of 20% of a Chinese company
each, with total foreign ownership in one Chinese company limited to 25%. If the
Deutsche Bank’s deal goes ahead as planned, Huaxia Bank will be able to offer a
further 10% to overseas investors.
The move is somewhat out of step with other investments by western banks.
Deutsche Bank has chosen to buy into a smaller organization, while most of its rivals
have chosen to pay much more for smaller stakes in China’s bigger nationwide banks.
BNP Paribas acquires FundQuest
28/06/2005
The Asset Management unit of banking and financial services firm BNP Paribas has
bought FundQuest, a provider of web-based managed account software.
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
Boston, Massachusetts-based FundQuest provides wealth management technology

to financial institutions, mainly banks and insurance broker-dealers. Its investment
platform offers financial services including asset allocation, analysis and selection of
institutional investment "boutiques", portfolio management and reporting analytics.
The acquisition is expected to allow BNP Paribas to make a move in managed

accounts in the US, a segment which it claims has strong growth potential.
In Europe, FundQuest will team with BNP Paribas’ Cortal Consors Fund
Management, a developer of open architecture and investment advisory services.
BNP Paribas said it also intends to use FundQuest as its global brand for wealth
management technology in open architecture in the US and Europe.
Gilles Glicenstein, CEO of BNP Paribas Asset Management explains: "We will
develop a new consultative sales approach, providing our clients with easy to use,
high quality advice-based tools."
The transaction is expected to close in August.
Vodafone completes eastern European purchases
01/06/2005
Vodafone Group, the world’s largest mobile phone operator, has completed the
acquisition of assets in eastern Europe, as it seeks to tap into less saturated markets
in order to expand its customer base.
In March this year, Vodafone announced that it was paying $3.5bn in cash for the
eastern European assets of Telesystem International Wireless, a holding company
based in Montreal, Canada. Specifically, Vodafone said it was acquiring 79% of
Romanian mobile phone group Mobifon (it already owned 20%), and 100% of the
rapidly growing Czech wireless operator Oskar Mobil.
Vodafone’s wholly owned subsidiary, Vodafone International Holdings BV, has now
completed the acquisitions of MobiFon and Oskar Mobil. These purchases will provide
Vodafone with access to markets that are experiencing rapid growth compared to the
saturated markets of western Europe.
The move eastwards was effectively forced on the Newbury, UK-based operator after
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
its defeat in February 2004 when it lost out in the fierce bidding war for US mobile
operator AT&T Wireless Service. The winner, Cingular Wireless, was forced to pay a
staggering $41bn plus. The consolation was that Vodafone saved $40bn and still
remains a minority shareholder in the second largest US mobile operator, Verizon
Wireless.
It also proved to be good news for Vodafone’s employees, who are now expected to
share a GBP 230m ($419m) windfall this summer, a move that will see seven out of
10 of its 56,000 workers collect about GBP 5,000 ($9,115) each. Vodafone’s shop
floor staff, call center operatives, and middle managers will all be among those eligible
to cash in on share options with a strike price of 90p ($1.64).
Vodafone has 154 million customers in 26 countries around the world. Despite this, it
is struggling to maintain strong growth levels. It recently reported a loss of GBP 7.5bn
($13.8bn) for the year to March 31, down from a loss of GBP 9bn ($16.5bn). Revenue
rose 1.7% to GBP 34.1bn ($62.4bn).
The operator also warned that increasing competition and a weak performance at its
Japanese subsidiary was likely to squeeze margins in the coming year.
The problem is that Vodafone mainly operates in saturated markets. Market

penetration averaged more than 90% in Western Europe at the end of September last
year, and has climbed to more than 100% in Italy, Sweden, Greece, and Portugal,
according to research by BNP Paribas.
MarketAxess developing trading system to rival TradeWeb
20/05/2005
Closely following the announcement that TradeWeb plans to launch online credit
default swap indices trading, rival MarketAxess has now teamed up with 11 global
dealers to develop its own client-to-dealer electronic trading platform.
MarketAxess Holdings will work with 11 global dealers and the Depository Trust &
Clearing Corporation (DTCC) to develop MarketAxess’ trading platform for credit
default swap indices (CDS). CDS index trading will be offered in conjunction with cash
trading on MarketAxess’ European and US high-grade corporate and emerging
markets bond platform.
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
The network of global dealers include ABN Amro, Banc of America Securities, Bear
Stearns, BNP Paribas, Credit Suisse First Boston, Dresdner Kleinwort Wasserstein,
Goldman Sachs, JPMorgan, Merrill Lynch, The Royal Bank of Scotland and UBS.
MarketAxess expects to launch the CDS index trading system in the second half of
2005.
MarketAxess is also working closely with DTCC’s wholly owned subsidiary, Deriv/
SERV, a full-service provider of automated trade processing solutions for a wide
range of products in the OTC derivatives market.
MarketAxess is planning to integrate its front-end trading system with Deriv/SERV,

allowing it to offer an end-to-end electronic trading solution, virtually eliminating trade
discrepancies and expediting the confirmation process. The straight-through
processing of credit derivative trades has become particularly important for market
practitioners as volumes continue to rapidly increase.
The global market for credit derivatives grew an estimated 137% in 2004 to more than
$8.4 trillion at the end of the year, up from an estimated $3.5 trillion at year-end 2003,
according to the British Banker’s Association.
France Telecom spends again as it follows "go East" trend
18/04/2005
France Telecom, the heavily indebted French carrier, is spending yet again as it
follows the trend of moving into the rapidly growing Eastern European market.
The French carrier is to increase its stake in Orange Romania from 73.27% to
96.63%. The deal to acquire the shares from a group of minority shareholders has
been priced at 408m euros ($527m), valuing the Romanian operator at approximately
$2.2bn.
Orange Romania has a domestic market share of 48% and its sales grew 47% in
2004.
The 23.3% Orange Romania stake was sold to France Telecom by a group of
investors including AIG Capital Partners, Enterprise Investors, Innova Capital Bank of
America, Societe Generale Romania Fund and Alcatel, the phone company said.
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
France Telecom has been on a bit of a spending spree recently. It recently paid 564m
euros ($737.9m) to buy out the minority shareholders who own 46% of network
operator Equant, as well as spending many millions of euros buying out the minorities
in Orange and Wanadoo, its ISP unit.
The Romanian deal however is part of an European trend to the shift focus from the
heavily saturated Western European market that offers very little growth prospects, to
the rapidly growing Eastern European markets. For example, market penetration
averaged more than 90% in Western Europe at the end of September (last year), and
has climbed to more than 100% in Italy, Sweden, Greece and Portugal, according to
BNP Paribas research.
Last month Vodafone Group agreed to pay $3.5bn for Romania’s MobiFon and
Prague-based Oskar Mobil. More recently, Spanish operator Telefonica acquired a
51.1% stake in CeskÃ½ Telecom, the Czech Republic incumbent, for 2.74bn euros
($3.55bn). Telefonica is also considering bidding for the 55% stake that Turkey is
selling in phone company Turk Telekomunikasyon AS.
France Telecom will continue to seek acquisitions or higher shareholdings in fast-

growing markets, said CFO Michel Combes. Orange is the fourth largest European
mobile operator, behind Vodafone, Telefonica and Deutsche Telekom AG’s T-Mobile.
This commitment to seek further acquisitions is rather concerning considering the

carrier’s enormous debt pile. Indeed, debt levels at France Telecom have risen
alarmingly after the carrier adopted International Financial Reporting Standards
(IFRS) instead of French GAAP. Its debt has risen by 6bn euros ($7.7bn) to a
staggering 49.9bn euros ($64.48bn), as it conforms to the new accounting rules.
Publicly-listed companies in Europe began the switch to IFRS at the start of this year.
The aim of the new rules is to harmonize the global presentation of financial results,
especially the messy European format, making it easier to compare companies
across borders.
France Telecom is still one of the world’s most indebted telecoms firms, but it is in the
third and final year of a recovery plan whose aim was to reduce its debt to less than
40bn euros ($51.68bn) by 2006.
The French carrier built up its vast debts due to an ambitious expansion plan in the
late 1990s which saw its debt peak at 68bn euros ($87.87bn) in 2002. This led to
many questioning the carrier’s viability, and it took an illegal state package from the
BNP Paribas Group

BNP PARIBAS GROUP
Latest Company News
French government, plus a change of management and massive job cuts to get the
carrier back on its feet.
Last month, appointed a little-known technology executive (Didier Lombard) to

succeed its former chief executive Thierry Breton, who became made the country’s
fourth finance minister in the space of a year.
Altran summoned to court hearing
30/03/2005
French IT services provider Altran Technologies has been summoned to a court

hearing on April 6, which could lead to further investigations into alleged financial
irregularities in its 2001 and 2002 accounts.
The Paris-based company said that the hearing would concern the company, its
chairman Alexis Kniazeff, and three former senior executives: Michel Friedlander,
Jean-Michel Martin and Hubert Martigny, who have been forbidden from contacting
Altran employees,
In July 2004, a formal investigation into Altran’s full year 2001 and 2002 accounts was
launched, which resulted in Kniazeff, Friedlander and Martigny being taken into police
custody, before being released without charge. The company’s turmoil continued the
following month when it issued a profit warning, which led to its share value falling by
over a third in one day.
Altran has been struggling since its ill-timed acquisition of the two largest practices of
bankrupt management consultancy Arthur D Little in April 2002, but there are signs
that it is recovering.
In February it announced sales for the full year 2004 up 6% to 1.42bn euros
($1.83bn). It has not yet released profit figures for 2004, but it has claimed that
operating profit for the second half of the year was 25% up on the first half.
Its shares have also steadily recovered since its profit warning, and in December 2004
it negotiated bank credit facilities of 150m euros ($194m) from BNP Paribas, Credit
Agricole Ile de France and Societe Generale. Last week Christophe Aulnette, who
was chairman and CEO of Microsoft France, began work as CEO having been
appointed in January.
BNP Paribas Group


BNPParibas PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BNPParibas PDF

Uploaded by

Copyright:

Available Formats

BNP Paribas Group

Reference Code: 247

Datamonitor is a leading business information company specializing in industry

Through its proprietary databases and wealth of expertise, Datamonitor provides

All Rights Reserved.

BNP Paribas Group

Company Overview ....................................................... 4

Business Description .................................................... 5

Key Employees .............................................................. 7

Major Products And Services..................................... 12

Products And Services Analysis................................ 13

SWOT Analysis ............................................................ 15

Top Competitors .......................................................... 20

Company View ............................................................. 21

Locations and Subsidiaries ........................................ 22

Latest Company Comment ......................................... 23

Latest Company News ................................................ 25

BNP Paribas Group

Head Office BNP Paribas Group

Web Address http://www.bnpparibas.com

SIC Codes SIC 6021 National Commercial Banks

Paris Ticker BNP

BNP Paribas Group

BNP Paribas is a leading financial organization. It operates through three core

BNP Paribas Group

BNP Paribas Group

Name Job Title Board Compensation

BNP Paribas Group

KEY EMPLOYEE BIOGRAPHIES

Board: Non Executive Board

Mr Pebereau is the chairman of the board of directors of BNP Paribas. He is also on

Board: Non Executive Board

Jean Louis Beffa

Board: Non Executive Board

BNP Paribas Group

Board: Non Executive Board

Mr Cromme is the chairman of the supervisory board of ThyssenKrupp. He also sits

Board: Non Executive Board

Mr Friedmann is the chairman of the Conseil d Orientation of the Musee du Quai

Board: Non Executive Board

Mr Grappotte is the chairman of Legrand. He is also the member of the supervisory

Board: Non Executive Board

BNP Paribas Group

Board: Non Executive Board

Lindsay Owen Jones

Board: Non Executive Board

Jean Francois Lepetit

Board: Non Executive Board

Mr Lepetit is a professor at EDHEC Business School (Lille).

BNP Paribas Group

Board: Non Executive Board

Board: Non Executive Board

Jean Francois Trufelli

Board: Non Executive Board

Mr Trufelli is a statistical studies technician.

BNP Paribas Group

MAJOR PRODUCTS AND SERVICES

Corporate and investment banking:

Advisory and capital markets

Asset management and services:

Institutional and private asset management services

BNP Paribas Group

PRODUCTS AND SERVICES ANALYSIS