136 2019 Universal registration document and annual financial report - BNP PARIBAS
3 2019 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 www.invest.bnpparibas.com.
ACQUISITIONS AND PARTNERSHIPS
No significant event has occurred since the Amendment to Universal registration document as at 30 June 2019 issued on 31 October 2019, that should be mentioned in this section.
3.6 Outlook
2020 OBJECTIVES
According to International Monetary Fund forecasts, economic growth is well-oriented for 2020 in the eurozone and in emerging markets, with a slight slowdown expected in the United States.
The adjustment of monetary policies in the summer of 2019 led to a more unfavourable interest rate environment than anticipated at the beginning of 2019. Interest-bearing products of the network banks of the Eurozone are thus impacted.
In this context, on the strength of its diversified revenue model, the Group anticipates to continue its growth.
STRONG BUSINESS DRIVE AND GROWTH: FULL CONTRIBUTION OF THE DIVERSIFIED AND INTEGRATED MODEL The contribution of the Group s diversified model, the business drive, the strengthening of the franchises of the businesses, and also the increasing collaboration between the businesses and the full contribution of the transformation plan should fully support the Group s capacity to generate growth in this environment.
Domestic Markets anticipates a continuation in the acceleration of its business drive and the development of revenues, leveraging its leading positions in the specialised businesses and on corporate clients and Private Banking client segments with the strength of the integrated model. The division will continue to undertake the development of
innovative digital offerings to acquire new customers and support evolving usages. Domestic Markets revenues in 2020 are nonetheless expected to decrease moderately due to the impact of the persistently low interest rate environment in the networks partially offset by a rise in business and strong growth in the specialised businesses. The operating division will pursue its efforts to reduce operating expenses in the networks while supporting growth in the specialised businesses, and should generate a neutral jaws effect.
International Financial Services should continue the intensification of business growth based on its best in class offerings, its platforms, partnerships and distribution networks. It will pursue the selective growth of Retail Banking outside the eurozone and intensify the contribution of cooperation with the Group within the integrated model. IFS confirms its role as a growth engine for the Group with revenue expected to grow on the back of the business drive in all the IFS businesses and the development of partnerships. Supporting the increased business, the operating division should benefit from the full contribution of the levers of the transformation plan generating a positive jaws effect.
CIB is expected to consolidate its leading position in Europe on corporates with the intensification of the country development plans and the success of Capital Markets. It will continue reinforcing the institutional franchise with the integration of Deutsche Bank s Prime Brokerage platforms. Finally, CIB will capitalise on its global presence with targeted initiatives in Asia-Pacific (China, etc.) and the Americas (Brazil, Mexico, etc.) and will continue to develop cooperation with the other businesses of the
