124 2019 Universal registration document and annual financial report - BNP PARIBAS
3 2019 review of oPerations
3
Core Business results
INSURANCE AND WEALTH & ASSET MANAGEMENT
INSURANCE
In millions of euros 2019 2018 2019/2018
Revenues 3,068 2,680 +14.5%
Operating Expenses and Dep. (1,500) (1,406) +6.7%
Gross Operating Income 1,568 1,273 +23.1%
Cost of Risk (3) 3 n.s.
Operating Income 1,564 1,276 +22.6%
Share of Earnings of Equity-Method Entities 167 202 -17.3%
Other Non Operating Items (15) 1 n.s.
Pre-Tax Income 1,716 1,479 +16.0%
Cost/Income 48.9% 52.5% -3.6pt
Allocated Equity ( bn) 8.4 8.4 +0.2%
WEALTH & ASSET MANAGEMENT
In millions of euros 2019 2018 2019/2018
Revenues 3,320 3,286 +1.0%
Operating Expenses and Dep. (2,682) (2,636) +1.7%
Gross Operating Income 638 650 -1.9%
Cost of Risk (6) (6) +0.2%
Operating Income 632 644 -1.9%
Share of Earnings of Equity-Method Entities 57 37 +54.5%
Other Non Operating Items 7 1 n.s.
Pre-Tax Income 695 681 +2.0%
Cost/Income 80.8% 80.2% +0.6pt
Allocated Equity ( bn) 2.1 1.9 +7.1%
For the whole of 2019, the Insurance and Wealth and Asset Management businesses continued their growth. Assets under management(1) reached EUR 1,123 billion at 31 December 2019. They rose by 9.3% compared to 31 December 2018 due in particular to a very favourable performance effect: +EUR 79.7 billion on the back of the rebound of financial markets. Net asset inflows came in at +EUR 20.2 billion with good net asset inflows at Wealth Management in Asia, Germany and Belgium, slight asset outflows in Asset Management due to money market funds, good net asset inflows in Real Estate Investment Management in Germany and in France and, lastly, good asset inflows in insurance in particular in unit-linked policies. The foreign exchange effect was favourable (+EUR 3.3 billion) and a scope effect unfavourable (-EUR 3.6 billion) in connection with the deconsolidation of SBI Life.
As at 31 December 2019, assets under management(1) broke down as follows: Asset Management (EUR 470 billion, including EUR 30 billion from Real Estate Investment Management), Wealth Management (EUR 393 billion), and Insurance (EUR 260 billion).
Insurance continued the development of its business, diversifying its asset inflows in savings with an increasing share of unit-linked policies in particular in France and Asia, by developing volumes of protection insurance in Europe and Latin America, and property and casualty insurance in the FRB network via Cardif IARD. The business continues to strengthen its partnerships through the signing of strategic alliances with Scotiabank in four countries in Latin America, with Famsa, a leading retailer in Mexico, and with Sainsbury s Bank and Argos to develop pet insurance in the United Kingdom.
(1) Including distributed assets.
