FRANCE – BNP Paribas has reported an 18% fall in profits for 2002 to 3.295 billion euros from 4.018 billion euros in 2001. Assets under management also fell 6%.

The asset management and services business reported a fall of 4.1% in net banking income to 2.209 billion euros. A rise in insurance revenues (+2%), and a limited decline in securities services revenues (-1.1%) were attributed to the relatively limited loss. However, asset management and private banking revenues fell 9.3%, and pre-tax income fell 18%.

Assets under management fell 6% to 255 billion euros in spite of 9.4 billion net new assets. Falling stock markets and a depreciating dollar were cited as reasons for the decrease.

The securities services business, however, performed well, with net banking income down only 1.1% and pre-tax income up 14.1%. The volume of transactions processed grew 14.8%, and decline in assets under custody was limited to 9%.

Retail business and results grew and largely contributed to what BNP Paribas describes as “good performance” for 2002 – pre-tax net income was up 5.6%. Pre-tax income of French retail banking was up 6.7%, and international retail banking was up 10.7%. Corporate and investment banking saw pre-tax income fall 36.3%, although the fixed income side held up well.

Going forward Michel Pebereau, BNP Paribas’ chairman and chief executive officer commented: “The geopolitical, economic and financial troubles in 2002 seem set to carry over into 2003. The_group’s priority is to continue its commercial development, to be proactive in controlling costs and stringent in managing risks, and to maintain a solid financial structure.”

With regards to increasing a share in Credit Lyonnais, BNP Paribas said that decisions regarding its stake “will be taken at the appropriate time in the observance of the group’s discipline.” Pebereau also dismissed the idea of acquiring Societe Generale – an idea that has been bandied about for some time.

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