BNP Paribas’ (BNPQF) Q2 2016 Earnings Call

Lars Machenil, CFO

Modest growth in revenues with stable costs and stable earnings

“…Q2 revenues progressed by 2.2%, with the operating divisions showing a positive evolution on a like-for-like basis…Costs, were relatively flat compared to last year. Cost of risk was significantly down, standing at a low 45 basis points, with most businesses improving or remaining at a low level.”

Simple and efficient wins the cost race

“…the cost savings accruing from our Simple and Efficient plan managed to offset the natural drift in costs…our Simple and Efficient plan, which delivered an additional €153 million recurring cost savings, taking it to a total cumulative of €3.1 billion.”

They are so well diversified as to to be resilient in tough times

“just a quick reminder of our diversified business model in terms of countries and businesses, which imply that we have no concentration by country, business or sector and that none of our businesses represent more than 16% of the total allocated capital. Moreover, our integrated business model is fueled by cross selling between the different businesses. And this basically means that BNP Paribas Group has a strong resilience in changing and complex environments.”