2020 Universal registration document and annual financial report - BNP PARIBAS128
3 2020 review of oPerations
3
Core Business results
BELGIAN RETAIL BANKING
In millions of euros 2020 2019 2020/2019
Revenues 3,432 3,524 -2.6%
Operating Expenses and Dep. (2,408) (2,480) -2.9%
Gross Operating Income 1,024 1,044 -1.9%
Cost of Risk (230) (55) n.s.
Operating Income 794 989 -19.6%
Non Operating Items 31 10 n.s.
Pre-Tax Income 826 999 -17.3%
Income Attributable to Wealth and Asset Management (64) (70) -7.9%
Pre-Tax Income of BDDB 762 929 -18.0%
Cost/Income 70.2% 70.4% -0.2 pt
Allocated Equity ( bn) 5.4 5.8 -5.7%
Including 100% of Belgian Private Banking for the Revenues to Pre-tax income line items.
For the whole of 2020, BRB s business activity was up. Loans outstanding grew by 3.5% compared to 31 December 2019, driven by good growth in mortgage loans. Deposits rose by 5.3%, with a strong increase in individual customer deposits. Off-balance sheet savings were up by 4.1% compared to 31 December 2019, thanks in particular to good net asset inflows into mutual funds (+1.6 billion euros).
In addition, the use of digital tools continued to accelerate, with more than 1.5 million active customers on mobile apps(1) (+12.2% compared to the fourth quarter 2019) and an average of more than 45 million monthly connections in the fourth quarter 2020 (+32.9% compared to the fourth quarter 2019).
Revenues(2) were down by 2.6% compared to 2019, at 3,432 million euros. Net interest income(2) was down by 6.3%, as higher loan volumes only partly offset the impact of the low-interest-rate environment. Fees(2) were up by 8.0% compared to 2019, due in particular to the very marked increase in financial fees.
Operating expenses(2), at 2,408 million euros, were down compared to 2019 (-2.9%), thanks to cost-saving measures and the ongoing branch network optimisation. The jaws effect was positive.
Gross operating income(2), at 1,024 million euros, was down by 1.9% compared to 2019.
The cost of risk(2) rose to 230 million euros compared to 55 million euros in 2019, due in particular to the increase in provisioning of performing loans (stages 1 and 2). It stood at 19 basis points of outstanding customer loans.
After allocating one-third of Belgian Private Banking s net income to the Wealth Management business (International Financial Services division), BRB generated 762 million euros in pre-tax income, down by 18.0% compared to 2019.
(1) Individual (including at Hello bank!), small business and Private Banking customers with at least one connection to the mobile apps per month (on average in 4Q20).
(2) Including 100% of Private Banking in Belgium.
