2020 Universal registration document and annual financial report - BNP PARIBAS 129
32020 review of oPerations
3
Core Business results
OTHER DOMESTIC MARKETS BUSINESSES (ARVAL, LEASING SOLUTIONS, PERSONAL INVESTORS, NICKEL AND LUXEMBOURG RETAIL BANKING)
In millions of euros 2020 2019 2020/2019 Revenues 3,430 3,184 +7,7% Operating Expenses and Dep. (1,923) (1,859) +3,4% Gross Operating Income 1,506 1,325 +13,7% Cost of Risk (205) (146) +40,1% Operating Income 1,301 1,178 +10,5% Share of Earnings of Equity-Method Entities (12) (12) -1,3% Other Non Operating Items 0 2 n.s. Pre-Tax Income 1,289 1,168 +10,3% Income Attributable to Wealth and Asset Management (5) (3) +76,5% Pre-Tax Income of others DM 1,284 1,165 +10,2% Cost/Income 56.1% 58.4% -2,3 pt Allocated Equity ( bn) 4.5 4.5 -1,4%
Including 100% of Private Banking in Luxembourg for the Revenues to Pre-tax income line items.
For the whole of 2020, the specialised businesses of Domestic Markets achieved a very strong overall increase in business activity. Arval s financed fleet(1) grew by 7.3% compared to 2019, and used car prices were holding up well. The business continued its digital transformation, changed its energy mix, and continued to sign new partnerships (Sixt and Cdiscount). Leasing Solutions outstandings rose by 1.9%(2) compared to 2019. In 2020 and for the 5th time, it was recognised as European Lessor of the Year at the Leasing Life Awards. Led by strong market activity, Personal Investors was on a very strong pace, with a doubling of the number of orders compared to 31 December 2019 and growth in assets under management, particularly in Germany (+14.6% compared to 31 December 2019). Nickel continued its development with close to 1.9 million accounts opened(3) (+27.0% compared to 31 December 2019). 2020 also marked the successful launch of Nickel in Spain in December 2020. Luxembourg Retail Banking (LRB) reported a strong increase in loans in 2020 (+8.2% compared to 2019) with a significant rise in all client segments.
The revenues(4) of the five businesses, at 3,430 million euros, were up by 7.7% compared to 2019. The good development in all businesses was driven by very strong growth in the revenues at Personal Investors (+36%) and Nickel and a significant rise in LRB in line with the increase in loan volumes.
Operating expenses(4) rose by 3.4% compared to 2019, to 1,923 million euros as a result of business development. The jaws effect was positive (4.3 points).
The cost of risk(4) totalled 205 million euros (146 million euros in 2019).
Thus, the pre-tax income of the five businesses, after allocating one-third of Luxembourg Private Banking s net income to the Wealth Management business (International Financial Services division), came to 1,284 million euros, up sharply by 10.2% compared to 2019.
(1) Average fleet in thousands of vehicles.
(2) At constant scope and exchange rates, excluding the transfer of an internal subsidiary (-1.6% including the transfer).
(3) Since inception.
(4) Including 100% of Private Banking in Luxembourg.
