2020 Universal registration document and annual financial report - BNP PARIBAS146
3 2020 review of oPerations
3
Recent events
3.5 Recent events
PRODUCTS AND SERVICES
BNP Paribas regularly introduces new products and services for its customers. More information is available on the Group s websites, including in the press releases available at https://invest.bnpparibas.com/en.
ACQUISITIONS AND PARTNERSHIPS
No significant event has occurred since the 7th Amendment to the 2019 Universal registration document issued on 19 November 2020 that should be mentioned in this section.
3.6 Outlook
2021 TRENDS
After 2020, a year marked by the health crisis, a gradual rebound in economic activity is expected from the second half of 2021 onwards. According to forecasts of the International Monetary Fund, growth should be positive in all regions, on the back of developments on the health front. The low-interest-rate environment persists in particular in Europe and will continue to impact heavily interest income at retail banks.
Subject to uncertainties surrounding this economic scenario, the Group anticipates to show growth in 2021 in the following manner:
BUSINESS DRIVE AMIDST A RECOVERY IN ECONOMIC ACTIVITY Business drive is supported by the Group s diversification and positioning in the most resilient sectors and client segments. The strengthening in franchises and market share gains, and the intensification of cooperation between businesses, as well as the key contribution from the Group s digital and industrial transformation are likely to reinforce business momentum.
The Group s revenues are therefore likely to trend upward as economic activity returns to normal with improvements in public health conditions and subject to differences in momentum from one business line, region and sector to another.
Domestic Markets should consolidate its strong positions amidst an economic recovery by expanding loan volumes and accelerating the transformation of deposits into financial savings. The businesses will intensify cooperation with the Group, in order to amplify commercial momentum and support the development of revenues, by leveraging in particular leadership in corporate, Private Banking and specialised business client segments. In particular, Arval will accelerate its drive with the 2025 objective of becoming the leader in sustainable mobility, financing 2 million vehicles, and generating 1 billion euros in pre-tax net income. In addition, Domestic Markets will continue the digitalisation of its platform and offerings, as well as the industrialisation of its processes and journeys for enhanced customer experiences and operating efficiency. The network banks will thus continue to adapt their cost structures and branch set-ups to go with changes in customer behaviours.
Domestic Markets is expected to benefit from the rebound in flow businesses and specialised subsidiaries compared to 2020 levels, as well as increased momentum in specialised businesses. However, the persistent impact of the low-interest-rate environment should partly offset this momentum.
