BNP Paribas: Wikis

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BNP Paribas S.A.
Type Société Anonyme (Euronext: BNP, TYO: 8665)
Founded 23 May 2000
Headquarters Boulevard des Italiens, Paris, France
Key people Baudouin Prot (CEO), Michel Pébereau (Chairman)
Industry Financial services
Products Retail, corporate and investment banking; asset management
Revenue 40.19 billion (2009)[1]
Operating income €8.482 billion (2009)[1]
Profit €5.832 billion (2009)[1]
Total assets €2.058 trillion (2009)[1]
Employees 201,740 (2009)[1]
Website www.bnpparibas.com
The BNP building in Paris

BNP Paribas (Euronext: BNP, TYO: 8665) is one of the largest global banking groups in the world, headquartered in Paris with its second global headquarters in London.[2] It was created through the merger of Banque Nationale de Paris (BNP) and Paribas. In 2008 it was ranked as the 13th largest company in the world by Forbes and the largest in France. In April 2009, BNP Paribas purchased a 75 percent stake in Fortis Bank, the Belgian banking business making BNP the eurozone's largest bank by deposits held.[3]

BNP Paribas escaped the 2007-09 credit crisis relatively unscathed reporting a €3.1bn net profit for the first half of 2009 boosted by profits from fixed income trading in its BNPPCIB (Corporate and Investment Banking) division.[4] BNP Paribas has one of the highest credit ratings in its peer group with the long term debt of the group currently ranked AA by S&P, Aa2 by Moody's and AA by Fitch.[5]

Contents

History

In 1869, a group of bankers and investors including Adrien Delahante, Edmond Joubert and Henri Cernuschi founded the Banque de Paris, with its headquarters near the Opera at 3 rue d'Antin, Paris. Jonathan-Raphaël Bisschoffsheim and his brother founded the Nederlandsche Credit en Deposito Bank (NCDB) or Banque de Crédit et de Dépôt des Pays-Bas[6]

After the end of World War II, the French State decided to "put banks and credit to work for national reconstruction". René Pleven, then Minister of Finance, launched a massive reorganization of the banking industry. A law passed on 2 December 1945 redefined the regulatory framework governing the industry and decreed the nationalization of the Banque de France and the four leading French retail banks: BNCI, CNEP, Crédit Lyonnais and Société Générale. It went into effect on 1 January 1946.

Shares in these companies were transferred to the French State, which assumed complete ownership of the financial institutions. The boards of directors were dissolved and twelve new directors were appointed at each bank. BNCI and CNEP were merged in 1966 to form BNP.

BNP was privatised in 1993.

Originally the Compagnie Financière de Paris et des Pays-Bas (Finance Corporation of Paris and the Netherlands), the Compagnie Financière de Paribas became simply Paribas in 1998 after acquiring the Compagnie Bancaire. Claude de Kemoularia was an important executive in the bank in the 1960s and 1970s.

In 1999, BNP and Société Générale fought a complex battle on the stock market, with Société Générale bidding for Paribas and BNP bidding for Société Générale and counter-bidding for Paribas. BNP's bid for Société Générale failed, while its bid for Paribas succeeded leading to a merger of BNP and Paribas one year later on 22 May 2000.

On 6 October 2008, BNP took over 75% of troubled bank Fortis' activities in Belgium, and 66% in Luxembourg, in exchange for the Belgian government becoming the new group's major shareholder. The sales of the Fortis shares was suspended by a court order from the Court of Appeal on Friday the 12th of December[7][8]

On 14 December 2008, BNP announced it could lose €350 million as a victim of the Madoff fraud.[9]

In the end of January, the Belgian government and BNP negotiated for only a 75% partnership in Fortis Bank Belgium. Fortis Insurance Belgium would be reintegrated in Fortis Holding.

On 11 February, Fortis' shareholders decided that Fortis Bank Belgium and Fortis Insurance Belgium does not become property of BNPparibas. Nowadays, Fortis Holding only consists of Fortis Insurance International which contains Insurances all over Europe and Asia. Fortis Bank Belgium & Netherlands is in the hands of the national government.

Activity

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Profile

BNP Paribas is the largest bank in the Eurozone by total assets and second largest by market capitalization according to The Banker magazine. It employs 162,700 people, of which 80,000 work in Europe, and maintains a presence in 87 countries. The bank is active in the finance, investment and asset management markets.

In France, BNP Paribas is active in retail banking with 2,200 branches and over 3,200 ATM machines. In Paris alone the Bank has 187 agencies. [10] BNP Paribas serves over 6 million French households and 60,000 corporate customers.

In the United States, BNP Paribas owns Bank of the West. It also has investment banking capabilities via its BancWest subsidiary. In particular, it is strong in equity derivatives, structured products and project finance. In addition, BNP Paribas maintains a strong middle market merchant banking group. This group focuses on providing leveraged acquisition finance to private equity sponsored leveraged buyouts, both through senior secured syndicated loans, high yield bond offerings, equity co-investment, and mezzanine financing.

BNP Paribas is a member of the Global ATM Alliance, a joint venture of several major international banks that allows customers of the banks to use their ATM card or check card at another bank within the Global ATM Alliance with no fees when traveling internationally. Other participating banks are Barclays (United Kingdom), Bank of America (United States), China Construction Bank (China), Deutsche Bank (Germany), Santander Serfin (Mexico), UkrSibbank (Ukraine), Scotiabank (Canada) and Westpac (Australia and New Zealand).[11]

On 11 June 2008, BNP Paribas formally signed the final terms of an agreement to purchase the Prime Brokerage Services division of Banc of America Securities. The sale is widely believed to be completed by the end of the 3rd Quarter, 2008.

Events in 2005

On 23 September 2005, BNP Paribas was set to take a 20 percent stake in China's Nanjing City Commercial Bank, a Chinese official and state press reports said. "BNP is going to sign a deal with us to buy a stake next month," an official from Nanjing City Commercial told AFP. The Shanghai-based Oriental Morning Post said BNP would pay up to US$100 million, although the bank official said the figure was incorrect. He declined to give further details. The French newspaper La Tribune reported in August 2005 that BNP Paribas had talked to four Chinese commercial banks—Ningbo, Wuxi, Nanjing and Suzhou—and was prepared to invest US$50–100 million. "We've talked to different financial institutions, but only BNP showed its good faith. It was not easy for us to reach an agreement," the Nanjing City Commercial Bank official said. BNP Paribas refused to comment. The International Financial Corporation, the investment arm of the World Bank, already owns 15 percent of Nanjing City Commercial Bank, which has regulatory approval to list on the country's domestic stock markets.

Major shareholders

Communication

BNP Paribas is one of the most important sponsors of Tennis French Open in Roland Garros stadium since 1971. This event allows BNP Paribas to communicate worldwide two weeks a year.

Main subsidiaries

Retail banking

Other subsidiaries

  • Atisreal renamed BNP Paribas Real Estate
  • BNP Paribas Arbitrage
  • BNP Paribas Assurances with Cardif, Pinnacle
  • BNP Paribas Asset Management
  • BNP Paribas Primebrokerag
  • BNP Paribas Lease Group with Arval[13], car leasing and Artegy
  • BNP Paribas Real Estate
  • BNP Paribas Securities Services
  • BNP Paribas Wealth Management with Isinger de Beaufort, BNP Paribas Private Banking
  • Cetelem
  • LaSer with Cofinoga
  • CortalConsors
  • FundQuest
  • Geojit (Geojit BNP Paribas Financial Services Ltd.)
  • L'Atelier
  • Creation Consumer Finance [14]
  • Lafayette Services [14]

Notable current and former employees

Business

Politics and public service

Other

  • David McWilliams - economist
  • Georges Chodron de Courcel - Managing Director, from the family of Mrs. Bernadette Chirac
  • Edmond Turquieh - founder of Sapiance Capital Ltd

See also

References

External links


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