BNP PARIBAS Personal Finance continues its expansion in Scandinavia

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BNP PARIBAS Personal Finance continues its expansion in Scandinavia


(AOF) – As part of its expansion strategy in Scandinavia, BNP Paribas Personal Finance has just acquired 100% of the capital of SevenDay Finans AB, a Swedish consumer credit specialist. Previously owned 75% by a group of private investors and 25% by members of the current management team, SevenDay Finans AB enriches the activities of Ekspres Bank, the commercial brand of BNP Paribas Personal Finance in this region.

BNP Paribas Personal Finance has been present since July 2014 in Norway and Denmark with the Ekspres Bank brand, acquired during the integration of the LaSer Group.

SevenDay Finans AB is a Swedish credit company based in Stockholm specializing in consumer credit which also offers a range of savings products. Since its creation in 2007, it has shown steady growth in its business. Its assets amount to SEK 6.4 billion (€ 656 million). Its 70,000 customers benefit not only from a credit and insurance offer, but also from savings products.

For Christophe Jehan, Director of Ekspres Bank Nordics within BNP Paribas Personal Finance: “Sweden is the most important market in Scandinavia and therefore a key country for the development of Ekspres Bank, a brand of BNP Paribas Personal Finance in this region” .

Laurent David, CEO of BNP Paribas Personal Finance said: “With this acquisition, Ekspres Bank will double its business, expand its offering to savings products and strengthen its position in the Scandinavian consumer credit market. We are cultivating strong ambitions. in this region where society is already highly digitized, digital and enjoys a stable economy “.


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” in 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, the last problem: the excessive number of banks and their branches in Europe.

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