Bloomberg Talks BNP Paribas CFO Lars Machenil Talks Equity Trading
Apr 24, 2025
Lars Machenil, CFO of BNP Paribas SA, shares insights into the impressive performance of the bank’s investment banking unit, particularly its record income from equities trading. He discusses revenue growth in equity and prime services, emphasizing the adaptability of their corporate divisions in navigating market challenges. Additionally, Machenil delves into cost management strategies and the impact of global trade tensions on their operations, offering a keen perspective on the current financial landscape.
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Record Equity Trading Growth
- BNP Paribas saw a record quarter driven by a 42% year-on-year rise in equity and prime services revenue.
- This growth was boosted by exceptional market volatility but is supported by intrinsic growth and increasing market share.
Cost Growth Explained and Controlled
- BNP's cost increase is mainly due to forex effects, inflation, and variable costs linked to strong performance.
- They target a controlled 2.5% marginal cost growth aligned with revenue expansion for the rest of the year.
Markets Division Maintains Low Risk
- BNP Paribas runs its markets division at low risk by maintaining consistent underwriting but gaining market share.
- Their risk metric, Value at Risk (VAR), remains stable despite growing top-line revenues.