All-round good performance by BNP Paribas

It was an all-round good performance by BNP Paribas in 2004, which saw its net profit (group share) climbing 24.1 percent to 4,668 million euros, from a net banking income of 18,823 million euros - which is a 5 percent increase from the previous year. Net earnings per share came to 5.55 euros, almost 30 percent higher than the year before.

The bank's after-tax return on equity (ROE) is 16.8 percent, up 2.5 points from 2003.

The positive results came in the light of a sustained global economic growth in 2004, even though its pace remained limited in Europe, a Baiduri Bank press release stated. The situation helped push up corporate earnings and reduce the overall number of corporate failures, even though capital markets were uncertain despite being bullish early in the year, with uneven trading volumes and a "historically" low volatility.

Furthermore, the decline of the US dollar versus the euro handicapped European companies doing business in the US, the release added. On the whole, however, the conditions proved positive for banking services, which helped BNP Paribas to post results "that were up sharply."

The rise in the Group's profits was aided by the fact that provisions spending came down 50.2 percent, to 678 million euros, while operating income soared 23.9 percent to 6,553 million euros. Operating expenses and depreciation were contained at 11,592 million euros, a rise of only 2.7 percent, resulting in a 8.7 percent growth in the Group's gross operating income - to 7,231 million euros - while its cost/income ratio improved 1.3 points, falling from 62.9 percent to 61.6 percent.

Each of the Group's core businesses contributed to the performance, Baiduri Bank said. BNP Paribas' Retail Banking business earned 2,981 million euros in pre-tax income, a rise of 12.6 percent, after a sustained growth over the period, while Asset Management and Services posted a 37.3 percent increase in its pre-tax earnings, to 993 million euros.

Meanwhile, earnings by Corporate and Investment Banking before tax rose 30.3 percent to 2,448 million euros.

A dividend of 2.0 euros per share will be proposed to shareholders during the Group's annual general meeting, an increase of 37.9 percent from the previous year's dividend of 1.45 euros per share. After the dividend payment, the Group's net assets per share (excluding shares held by the Group) before revaluation would come to 34 euros, the Baiduri Bank press release disclosed.

BNP Paribas is a shareholder of Baiduri Bank, and is a leading European provider of banking and financial services, with a significant presence in the US and leading positions in Asia. It has one of the largest international banking networks in the world, with a presence in 85 countries.

Courtesy of Borneo Bulletin