2024-07-24 18:00:10 ET
BNP Paribas SA (BNPQF)
Q2 2024 Earnings Conference Call
July 24, 2024 08:00 AM ET
Company Participants
Jean-Laurent Bonnafe - Chief Executive Officer
Lars Machenil - Chief Financial Officer
Conference Call Participants
Stefan Stalmann - Autonomous Research
Chris Hallam - Goldman Sachs
Flora Bocahut - Barclays
Tarik El Mejjad - Bank of America
Anke Reingen - RBC
Giulia Miotto - Morgan Stanley
Delphine Lee - JPMorgan
Sharath Kumar - Deutsche Bank
Pierre Chedeville - CIC Market Solutions
Kiri Vijayarajah - HSBC
Azzurra Guelfi - Citi
Presentation
Operator
Good afternoon, ladies and gentlemen, and welcome to the presentation of the BNP Paribas, Second Quarter 2024 Results, with Jean-Laurent Bonnafe, Group Chief Executive Officer and Lars Machenil, Group Chief Financial Officer. For your information, this conference call is being recorded and is dedicated to sell side analysts only. Supporting slides are available on BNP Paribas IR website invest.bnpparibas.com. [Operator Instructions] If you would like to ask a question, please make sure to be in a quiet area to maximize audio quality.
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. Welcome to the presentation of our second quarter 2024 results. As usual, at the end of the presentation, Lars and I will be pleased to take your questions. So in the second quarter 24, the group delivered very solid results. As a further illustration of the strengths of its diversified and integrated model.
BNP payback continues to demonstrate its ability to generate value and confirms its 2024 trajectory with unexpected revenue growth exceeding 2% compared to 2023, and a net income higher than the distributable income for 2023 of EUR11.2 billion.
So, moving onto the core of the presentation with Slide three. Our net income group share clocked in at EUR3.4 billion in the second quarter of 2024. A very strong quarter for BNP Paribas, driven by good performance across our operational divisions, which Lars will discuss in more detail later. Our revenues are up 3.9% compared to the second quarter 2023 on a distributable basis. All-in-all, a very strong quarter for CIB, which was up 12.1% year-on-year with global markets leading the way and posting a 17.6% increase.
Meanwhile, CPBS generated stable revenues with good positive momentum in the commercial and personal banking activities, which we expect to continue as the current headwinds taper off during the second half.
Finally, IPS was strong with insurance up 5.2% and asset management up 9.8%. On costs, we remain disciplined. This quarter, operation costs were up 3.5% when excluding the phasing effect of the DGS contribution in Italy to the tune of EUR51 million. Cost growth was efficiently targeted as supporting our growth and we were able to sustain positive jaws of plus 0.4 points in the second quarter. If you look at the semester, jaws are positive by 0.5 points. Our objective for the year is to further step up the jaws.
In addition, the second half of 2024 should see the continued implementation of the previously announced additional operational efficiency measures of EUR400 million. We expect to achieve efficiency savings of EUR650 million, adding up to the EUR1 billion over the full year. Our gross operating income is up 3.4% year-on-year at EUR5 billion....
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BNP Paribas SA (BNPQF) Q2 2024 Earnings Call Transcript