(AOF) – From 1 January 2017 BNP Paribas Personal Finance, n. 1 in private loans in France and Europe, has expanded its consumer credit marketing activity at the point of sale in Austria through a partnership established with a major player in the Austrian retail market.
To start her business, a close-knit team surrounds Miruna Senciuc, the branch manager of BNP Paribas Personal Finance Austria. Together they propose to start with one of the most classic and still essential financial products, the “installment sale” (VAT). The beginnings are described as “promising” by the bank with over 3,700 cases funded in the first quarter.
For Miruna Senciuc: “In a few months we will be able to expand our offer of interesting and innovative loans in this market, whose growth is expected by 2019 at + 7.3%. This loan is accompanied by our offer of insurance offers. for all our funding from our partner BNP Paribas Cardif “.
Laurent David, Chief Executive Officer of BNP Paribas Personal Finance, explains: “This partnership with one of the major players in the Austrian retail market strengthens our presence in Central Europe, in a rapidly changing market. Our ambition, over the next three years, it is investing in the automotive market, again through the points of sale, but also to develop the BtoC business, or to offer our offer directly to Austrians via the internet, for example, as in the countries of the 1930s in which we are present “.
AOF – FIND OUT MORE
The strengths of value
– Leading custodian bank in continental Europe with 4 domestic markets (Belgium, France, Italy and Luxembourg). World leader in creditors insurance, seventh asset manager in Europe, sixth private bank in the world, leader in syndicated loans for the Europe, Middle East and Africa area, world leader in the aviation sector, etc .;
– Among the most crisis-resistant global banking groups and among the highest ROE (Return on Equity) in the world;
– more favorable economic context for loan demand, which authorizes the reduction of provisions for risks and the recovery of the intermediation margin, connected to the ECB’s “quantitative easing” policy, which is positive for the balance sheet;
– Organization in 3 branches, each of which represents approximately one third of revenues: domestic markets (banking networks in France, Italy, Belgium and the Netherlands, international financial services and investment banking or CIB;
– Compliance of prudential capital with European regulations, with a “Common Equity Tier One” ratio of 11.4%, higher than the 9% required by Basel III, and a leverage ratio of 4%, higher than the 3% required ;
– Payment rate of 45%;
– Value considered by managers and analysts to be the “best in class” of their sector.
The weaknesses of the value
– investor distrust of European banks, European regulation with high capital intensity and low level of interest rates;
– Greater competition from online banks and risks associated with the arrival of the main Internet and telecommunications companies;
– Income from CIB corporate banking was down, affected by a difficult market at the start of the year;
– increase in bank transformation costs as part of the efficiency and transformation plan;
– Risk of a price drop in the event of the sale of its shareholding by the Belgian State.
How to follow the value
– The valuation of banks depends on 7 points: liquidity positions, ability to meet the so-called “Basel 3” solvency ratio of 9% of net assets, control of investment banking commitments, centralization of derivatives clearing, cost risk , in turn linked to the economic context, the return on equity or ROE and, finally, the decisions of the central banks – American Fed and European ECB;
– Legal strengthening of the protection of banking customers (supervision of intervention commissions) with risks for the profitability of retail banking in France, already conditioned by the decline in sight deposits in favor of passbooks;
– Waiting for the new strategic plan that will be presented at the beginning of 2017, aiming at strengthening digital, also by the European online bank Hello bank! and to which 2 to 3 MdsE will be dedicated;
– speculation on an IPO of the subsidiary First Hawaiian Bank, and on an acquisition in Poland;
– Capital fragmented but practically inoperable due to the presence of public shareholders, in particular the Belgian State, the largest shareholder (10.3%), before employees (6.2%), Axa (2.9%) and the Grand Duchy of Luxembourg (1%).
Finance – Banks
The IMF is concerned about the structural weakness of European banks. After the German giant Deutsche Bank, it was the Italian and Portuguese banks that worried analysts. In its semi-annual report on financial stability, the IMF highlighted the bad risks accumulated by some institutions, as well as a decline in the profitability of European banks. First problem, banks are facing $ 900 billion in bad debt. Second problem: the monetary policy of very low rates, even negative ones, which penalizes the European banking system. Finally, last problem: the excessive number of banks and their agencies in Europe.
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