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The COVID-19 pandemic led to several companies’ performance on the stock market being negatively affected. Others, such as BNP Paribas, were able to maintain their appeal even though their earnings were down.
Take a look at this article to find out more about BNP Paribas and its place in the stock market.
BNP Paribas' activities can be classified into three main categories :
With its retail banking activities, the group operates in several domestic markets, France, Belgium, Italy and Luxembourg.
The group has several subsidiaries, including BNP Paribas Cardiff, TEB of Turkey, BNP Paribas Asset Management, the neo-bank Hello Bank, First Hawaiian Bank, BNP Paribas Fortis in Belgium, BancWest Company, Banca Nazionale del Lavoro in Italy, BNP Paribas Factor, Findomestic, Cofinoga and Cetelem.
The group also operates in other forms of non-banking financial support such as leasing with BNP Paribas Leasing Solutions, and ARVAL for wet leases.
In the real estate sector, the group is making its mark with its subsidiary BNP Paribas Immobilier.
The group has over 200,000 employees in 68 countries.
BNP Paribas' shareholders are as follows :
BNP Paribas is a large group which, through its expansion policy, has forged multiple partnerships with large companies such as PSA, BpiFrance, Snapchat and Eurazeo.
BNP Paribas' main competitors in the European banking sector are also significant and include Société-Générale, Credit Agricole, Credit Mutuel and BPCE.
Over the past three years, the group has recorded stable results. With net results for the group of €7,526m in 2018, €8,173m in 2019 and a 13.5 % decline to €7,067m in 2020.
The group has therefore taken precautions in the face of the crisis to limit financial losses, with a 7 % difference compared to losses envisaged by management.
With €44.6 billion in net banking income from Retail Banking & Services (RBS) and Corporate & Institutional Banking (CIB), BNP has confirmed its leading position in the European market.
The group's commercial profitability is generally between 15 % and 18 %.
BNP's revenues are spread over several countries. Its net banking income is distributed as follows : 73.4 % in Europe, 11.7 % in North America, 7.4 % in Asia Pacific and 7.5 % in other countries.
It is important to know that the BNP Paribas Group is part of the CAC40, and is one of the stocks that are included in the calculation of the French stock market index. The group's shares are listed on the French market Euronext Paris in compartment A.
BNP Paribas has a market capitalization of more than €64.53 billion for over 1,249 billion shares. The highest valuation is €52,570 with a target price of €55,343. The variation observed since 01/01/2021 is +17.92 %.
The economic environment is favorable for the credit business, which is an asset for the BNP Paribas share. Liquidity of €309 billion can ensure the group's financial ability to face the impacts of the coronavirus over several months.
The results of the online bank Hello Bank influence the variations in the value of the BNP Paribas share. However, observers note a sustained growth of this subsidiary of the BNP group.
BNP Paribas' business is influenced by the decisions of the European Central Bank (ECB). The Quantitative Easing policy is favorable for BNP Paribas as well as the recent decisions regarding interest rates.
The evolution of activities in emerging countries may have an influence on the share price. The risk exposure is low, as the company has diversified its revenues. The environmental strategy of this actor is also to be followed closely, as it has a great impact on the stock market value of BNP Paribas shares.
One of the risks to be taken into account is the sale by the Belgian State of its stake in the group