BNP Paribas Fortis boosts half-year profit to 1.6 billion euros | Inland

BNP Paribas Fortis boosts half-year profit to 1.6 billion euros | Inland
BNP Paribas Fortis boosts half-year profit to 1.6 billion euros | Inland

BNP Paribas Fortis posted a net profit of EUR 1.63 billion in the first six months of the year. This is an increase of 491 million or 43 percent compared to a year earlier, the bank announced on Friday.

On a comparable basis, the increase in profit is smaller: plus 29.8 percent. The difference is in one-off elements, including 240 million euros related to an accounting impact of the full acquisition of Bpost Bank. Gross operating profit rose 28.4 percent on a like-for-like basis to 2.13 billion euros. “Very good results”, it sounds, “against the background of a resilient Belgian economy”.

Costs rose by 8.7 percent compared to the first half of 2021. In Belgium, higher wages due to automatic indexation, among other things, pushed up costs (+6.5 percent). Elsewhere, cost increases were even higher (+12 percent), mainly due to the activities in Turkey, where consumer price increases are peaking even higher.

The group’s revenues rose on a like-for-like basis by just under 17 percent to 4.79 billion euros. The bank speaks of strong growth, supported by most activities.

For example, car lease subsidiary Arval recorded “excellent” results. “It is benefiting from the shortage of new cars and the difficulties in the supply chain after the corona crisis,” said BNP Paribas Fortis CEO Max Jadot. This makes Arval’s second-hand cars more popular.

Loans to customers rose from EUR 216.4 billion to EUR 237.7 billion, including EUR 8.5 billion in loans from Bpost Bank. On a comparable basis, loans increased by 7.7 percent. Deposits grew to EUR 216 billion, an increase of 5.2 percent on a like-for-like basis.

It is noteworthy that BNP Paribas Fortis saw a sharp fall in risk costs during the first half of the year, mainly due to lower commissions for problem loans in Belgium. “Until today, we see no signs, either in major files or in general trends, that it would be any different from the first half,” said Jadot. “But this will change in the second semester due to the high energy prices,” he warned.

The bank does not need to make any additional provisions for this. “We have not touched the provisions we have made in 2020 due to the corona crisis.” Jadot does not disclose how much money is in that jar.

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The article is in Dutch

Tags: BNP Paribas Fortis boosts halfyear profit billion euros Inland

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