BNP Paribas is an international bank, producing better returns than many of the European banks, present in various countries across the globe. It is a reputable bank that delivers what it promises to its stakeholders and is building capital and customers by providing the benefits of a diversified business model.
How It All Began
Paribas and Banque Nationale de Paris (BNP) first opened (and later, expanded) in the 19th Century. Both banks financed their economic development by making sure enough savings were set aside. From the initial days to date, the bank offers an opportunity to explore two centuries of banking history.
The company was established by the French Provisional Government after which the institution started its own expansion via mergers and acquisitions. Its largest unit is Retail Banking, which is responsible for a huge chunk of the bank’s revenue.
This French based global bank was founded in 2000 as a result of a merger between Banque Nationale de Paris (BNP) and Paribas in 2000. Since then the bank has grown to become the second largest bank in the UK and the eighth largest in the world. It offers global solutions to clients through two major business divisions which are Retail Banking & Services and Corporate Institutional Banking.
Currently, the bank’s profitability in retail has been affected negatively due to the prevalent low-interest rate in the domestic market. The corporate division has been growing continuously because of the diversified nature of its operations. Overall, BNP Paribas has successfully maintained its dominance in the European banking industry.
Secret to Success
When BNP took over Paribas, it became a leader in Europe even though 60% of its activities were in France. It is big on asset management, investment banking and private banking. Most of its success is because of what the bank didn’t do. It reached its way to the top by avoiding big deals before the crash and specialised in derivatives, but still managed to avoid losing billions of dollars on credit-default swaps. The COO, Mr. Prot, claims that BNP Paribas’ success is due to professional management, and works on becoming a good and influential manager for running the business successfully.
BNP Paribas is not only a leader in global banking in Europe, but has a worldwide presence having four domestic retail banking markets in France, Italy, Belgium and Luxembourg. With operations in over 83 countries, it has one of the largest international networks in the world. BNP Paribas is constantly looking for new staff, motivated and ambitious individuals who are suited to the role to keep things improving. For example, in March 2017 it was announced that Matthew Smith BNP Paribas would be head of European high-yield, distressed loans – taking over from Mike Wheeler. BNP Paribas is continuously looking for individuals who are going to make the most out of the role.
With a market capital of $98.61 billion, head count of 184,545 employees and sales of $123.2 billion, BNP Paribas is on its way to becoming one of the leading financial institutions in the world.