BNP Paribas increases asset management inflows in 2020

  •   15/02/2021 - 12h54
  •   DEHOUI Lionel

Business in 2020 was not impressive in the results presented by the BNP Paribas banking group. However, the French bank made significant progress in asset management business. It achieved annual inflows of around EUR 40 billion in this sector.

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BNP Paribas increases asset management inflows in 2020
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BNP Paribas' asset management performance in 2020

The BNP Paribas banking group started the 2020 financial year with great difficulty. However, it ended the year on good marks, particularly in its asset management business. After a negative 2019 annual net inflow, the financial institution recorded last year a 2020 annual net inflow of around EUR 40 billion.

Almost half of this amount (EUR 19.1 billion) was generated in the fourth quarter alone. This was announced by the French bank when it published its 2020 results.

Furthermore, BNP Paribas explains this fine performance in asset management by a strong momentum in theme and SRI funds. It reports annual net inflows of EUR 11 billion for these products.

 

The Bank's results in the following businesses

In Wealth Management, inflows totalled 3.3 billion euros in the fourth quarter. Therefore, the banking group did not provide details for the full year's performance. However, it believes that inflows were also fairly good.

At the end of 2020, BNP Paribas had 483 billion euros in assets under management excluding real estate, up 9.8% over the year. In wealth management, the French bank's assets fell 0.9% over the year to EUR 390 billion.

With regard to the Asset Management business, the banking group explained that the business model was transformed to better meet market requirements with its adaptation plan. In particular, BNP Paribas announced the implementation of a new organisation and operating model.

These are based on BlackRock's Aladdin management system, which has been successfully deployed over the past two years. In addition, the bank says it has streamlined its investment strategies and simplified its legal structures. In addition, it has revised its offering with a 40% reduction in the number of products offered since 2016.

 

BNP Paribas' business review for the year 2020

In general, the year 2020 has not been beneficial for BNP Paribas' business. For the year as a whole, the French bank's net income fell 13.5% to EUR 7.07 billion. This is slightly lower than the banking group's forecast, which was expecting a decline of between 15% and 20%.

44.28 billion, down 0.7% to In addition, regarding BNP Paribas' outlook for 2021, the Group plans to pay out a cash dividend of 1.11 euros per share in May for the financial year 2020.

In order to comply with its policy of paying out 50% of its earnings, the bank also plans to make an additional payment next autumn. This should take the form of share buybacks or distribution of reserves.