On 16 February 2010, the Board of Directors of BNP Paribas, in a meeting chaired by Michel Pébereau, examined the Group’s results for the fourth quarter 2009, and approved the accounts for the 2009 fiscal year.
NET INCOME GROUP SHARE OF 5.8 BILLION EUROS, CONFIRMING THE POWERFUL CAPACITY TO GENERATE PROFITS
In an environment characterised by a downturn in the economy, but also by customers’ return to capital markets, BNP Paribas Group performed well in 2009: it posted 5,832 million euros in net income (group share), a significant rebound (+93%) compared to 2008, but well below the pre-crisis levels (7,822 million euros in 2007).
The Group generated 40,191 million euros in revenues (including a negative impact of 753* million revaluation of the Group’s own debt compared to a positive 593 million impact in 2008), or +46.8% compared to 2008. Thanks to operating expenses increasing much less, at 23,340 million euros (+26.8% compared to 2008), gross operating income, at 16,851 million euros, is 87.7% higher than the amount in 2008. This solid operating performance enabled the Group to offset the new rise in the cost of risk (+45.5% to 8,369 million euros).
Return on equity was 10.8%, compared to 6.6% in 2008 and 19.6% in 2007.
Net earnings per share was €5.2 compared to €3.0** in 2008 +74%, the capital increases having resulted in limited dilution. After the noteworthy positive result in 2008 at the height of the financial crisis, this increase illustrates the Group’s capacity to generate growth and create value throughout the cycle.
The Board of Directors will propose to shareholders to pay a €1.50 dividend, a 32.3% payout ratio, with the option to have the dividend paid in shares. This option will mean that, in addition to the two-thirds retained earnings, a further share of profits will go to reinforcing the Group’s capital and therefore its ability to continue to grant new loans.
In the fourth quarter 2009, the Group’s revenues totalled 10,058 million euros compared to 4,850 million in the fourth quarter 2008. The cost of risk was 1,898 million euros, down 25.6% compared to the fourth quarter 2008 and down 17.5% compared to the third quarter 2009. The net income group share came to 1,365 million euros compared to a 1,366 million loss during the same period a year earlier and practically the same level as in the third quarter 2009 (+4.6%).
VERY SOLID OPERATING PERFORMANCE
In 2009, all the Group’s operating divisions continued to expand their businesses, to serve customers and to finance the economy.
* Of which 512 million euros relating to debt issued by BNP Paribas and 241 million euros relating to debt issued by BNP Paribas Fortis
** Adjusted to factor in the capital increase with maintained preferential subscription rights, carried out in 2009.