Bond trading boosts BNP Paribas’s FICC revenues

Dan Barnes

BNP Paribas’s investment bank delivered double digit revenue growth in 2019, with revenues for Fixed Income Currencies and Commodities (FICC) up by over 30%. The Corporate and Investment Banking (CIB) division is in the midst of a transformation plan, which the bank reported saw €298 million euros of recurring savings in 2019.

Revenue for Global Markets increased 17.9% over the year to hit €5.5 billion euros. The business reported very sustained business growth based on market share gains, in particular in FICC. At the same time value at risk (VaR), which measures the level of market risks, was still at a very low level (€26 million). Global Markets reported strong positions on bond issues and on multi-dealer platforms.

FICC’s revenues were at €3,5 billion euros, up 31.1% on 2018, which the bank attributed to a sharp rise in primary markets and credit, a strong rebound in forex and emerging markets and a very good performance in rates.

Securities Services’ revenues, were up 0.9% at €2.2 billion, compared to 2018 as a result of asset growth which was up 8.2% on average compared to 2018 and transactions were up 2.3% on average. Assets under custody and administration were up sharply 12.2% compared to 31 December 2018 due in particular to the integration of Janus Henderson’s assets in the United States since the end of March.