BNPQF - BNP Paribas SA (BNPQF) Q1 2024 Earnings Call Transcript
2024-04-25 14:45:27 ET
BNP Paribas SA (BNPQF)
Q1 2024 Results Conference Call
April 25, 2024 07:00 AM ET
Company Participants
Jean-Laurent Bonnafe - Chief Executive Officer
Lars Machenil - Chief Financial Officer
Conference Call Participants
Tarik El Mejjad - Bank of America
Azzurra Guelfi - Citi
Chris Hallam - Goldman Sachs
Stefan Stalmann - Autonomous Research
Anke Reingen - RBC
Giulia Miotto - Morgan Stanley
Delphine Lee - JPMorgan
Samuel Moran-Smyth - Barclays
Kumar Sharath - Deutsche Bank
Kiri Vijayarajah - HSBC
Presentation
Operator
Good afternoon, ladies and gentlemen, and welcome to the presentation of the BNP Paribas First Quarter 2024 Results with Jean-Laurent Bonnafe, Chief Executive Officer; and Lars Machenil, Chief Financial Officer. For your information, this conference call is being recorded. Supporting slides are available on BNP Paribas IR website, invest.bnpparibas.com. [Operator Instructions] I would like now to hand the call over to Jean-Laurent Bonnafe, Group Chief Executive Officer. Please go ahead, sir.
Jean-Laurent Bonnafe
Thank you. Good afternoon, ladies and gentlemen. I'm pleased to welcome you alongside Lars for the presentation of our first quarter 2024 results. We'd be pleased to take your question at the end of the presentation.
The group delivered solid performances in the first quarter '24, thanks to strong business momentum within the operating divisions. BNP Paribas continues to demonstrate its ability to generate value and confirm its '24 guidance with expected revenue growth of more than 2% compared to '23 and net income higher than '23 distributable income of €11.2 billion.
Moving on to the core of the presentation with Slide 3. Our net income group share clocked in at €3.1 billion in the first quarter '24.
A very strong quarter for BNP Paribas. Those results are obviously driven by strong performances from our operational divisions, which will be further detailed by Lars. Our revenues were stable at minus 0.4% compared to the first quarter '23 on a distributable basis.
All in all, our diversified model has absorbed the negative impact of a strong base effect in the first quarter '23 at FICC within global markets. This base effect will disappear in future quarters as normalization is coming to an end, inducing a back to normal trend of global markets revenues.
Neutralizing for this [FICC-based] effect, our revenues would have been up 3% versus last year on a distributable basis. Furthermore, thanks to our strong discipline on costs, our operating expenses decreased by 1.4% year-on-year on distributable basis. The jaws effect is therefore positive by 1.1 points. We have also announced additional recurrent annual savings of €400 million, whose benefits are expected to begin showing up in second quarter '24.
Cost of risk remains at a low level, 29 bps, reflecting the strong quality of our credit portfolio throughout the cycle.
As a result, our pretax income reached €4.4 billion, or 7.4% year-on-year growth, which is quite a strong performance. Having just finalized our share buyback, we are also pleased to report earnings per share of €2.51, higher than last year. Our financial structure is solid with a CET1 at 13.1%....
BNP Paribas SA (BNPQF) Q1 2024 Earnings Call Transcript