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BNP Paribas SA (BNP.PA)

Paris - Paris Delayed price. Currency in EUR
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35.74-1.25 (-3.37%)
As of 11:03AM CEST. Market open.
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Previous close36.99
Open36.86
Bid0.00 x 0
Ask0.00 x 0
Day's range35.69 - 36.94
52-week range24.50 - 54.22
Volume1,049,176
Avg. volume5,653,323
Market cap44.6B
Beta (5Y monthly)1.62
PE ratio (TTM)6.44
EPS (TTM)5.55
Earnings date03 Nov 2020
Forward dividend & yieldN/A (N/A)
Ex-dividend date25 May 2020
1y target est61.49
  • BNP Halts New Commodity Trade Finance Deals as It Reviews Unit
    Bloomberg

    BNP Halts New Commodity Trade Finance Deals as It Reviews Unit

    (Bloomberg) -- BNP Paribas SA has suspended new commodity trade finance deals while it reviews its involvement in the business in Europe, Middle East and Africa, according to people familiar with the matter.The French bank, one of the largest lenders to global commodity traders, has recently told clients that no new deals will be concluded unless there’s a contractual obligation, said the people, who asked not to be identified because the information isn’t public. BNP is currently reviewing options for the future of its EMEA commodity trade finance business, the people said.The move comes after the bank took a hit from commodity trade houses facing financial stress from Dubai to the U.S., the people said. BNP’s commodity trade finance team suffered heavy losses from the bank’s exposure to companies including crop trader Phoenix Group, energy firm GP Global Group as well as coffee dealer Coex Coffee International Inc., the people said.Alexandra Umpleby, a spokeswoman for BNP Paribas, declined to comment.BNP is considering the future of its Specialized Trade Solutions unit, known as STS, which handles commodities trade finance deals in energy, agriculture and metals mostly from Geneva, the people said. Options include shutting the business or merging it with the bank’s broader transactions services division.BNP Paribas, through the Geneva office of what was then Paribas, pioneered the use of letters of credit to finance oil trading in the 1970s, working with Marc Rich among others. As the business of financing commodity traders grew, the bank was for many years the leading lender to the industry, accounting for as much as half of some trading houses’ bank lines. In recent years, it has been a diminished presence, but trading executives estimate that it still ranks among the top 10 providers of financing to the industry.The bank has been shrinking its commodity trade finance business since 2014, when it was fined $8.9 billion for violating U.S. sanctions. No matter what option it pursues now, it’s planning to substantially retrench from the business, the people said.BNP’s move follows a pullback by Societe General SA. SocGen is closing its trade commodity finance unit in Singapore following the collapse of Hin Leong Trading (Pte) Ltd. The bank will handle large Asian commodities trading clients from Hong Kong, according to people familiar with the matter, and cut ties with smaller firms.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Paris Bank Traders Go on a Ruinous Losing Streak
    Bloomberg

    Paris Bank Traders Go on a Ruinous Losing Streak

    (Bloomberg Opinion) -- France’s biggest banks have lost their savoir faire at one of the worst possible times. Bets that went awry on equity derivatives — once a craft in which the French firms excelled — have cost BNP Paribas SA, Societe Generale SA and Natixis SA hundreds of millions of dollars in income this year. They’ve also cost several top executives their jobs.Of the three banks, only BNP will get past this relatively unscathed, and that serves as a cautionary tale to others. Relying too much on a hugely volatile, risky activity such as stock derivatives is a dangerous strategy reminiscent of pre-financial crisis times. The companies’ boards and regulators should have seen this coming.BNP, the biggest of the three lenders, expects profit to fall by no more than 20% this year, in part thanks to a surge in fixed-income trading that helped it offset the dismal performance in equities. In the midst of a global pandemic, a dent in income of this relatively small magnitude would be an achievement, helped too by comparatively low provisions for bad loans.The news wasn’t so good at SocGen. The Paris-based bank posted its biggest quarterly loss in a dozen years in the three months to June as revenue from equity derivatives plummeted. After downsizing its fixed-income business last year, SocGen was even more exposed to complex trades, which made up a fifth of the revenue at its market unit last year. Stock derivatives are financial instruments that let traders speculate on movements in equities and indexes, while hedging some of the risks. They can be lucrative trades if things go well, but that isn’t always the case — as the French banks have demonstrated.Within hours of reporting the dismal results, SocGen revamped its management, axing two deputies to Chief Executive Officer Frederic Oudea. In the top job for more than a decade, Oudea is now counting on cutting costs across the investment bank, retreating from some structured products and redeploying capital to where he can eke out bigger profits. As I’ve argued before, the firm is paying the price of Oudea’s over-reliance on trading.At Natixis, the derivatives blunder has been just as costly. The bank posted a loss in the three-month period, its second consecutive quarter in the red, and ousted its CEO Francois Riahi. Concerns about the running of one of its affiliates, H20 Asset Management, which over-invested in thinly traded bonds, had already raised concerns about the company’s risk management and controls. Riahi had rebuilt Natixis by betting on yet more speculative trades.The three banks have one thing in common: They all focused on structured products that are more susceptible to market swings, and they were exposed to derivative bets on corporate dividends, which backfired when the pandemic struck and companies halted shareholder payouts to preserve cash. The three made almost 40% of their equities revenue from structured products last year. That’s three times as much as their competitors.How they emerge from the setback could set them further apart. Natixis and SocGen — minnows compared to BNP — are both working on new strategic plans to be presented next year. Oudea told analysts on Monday that he will remained focused on costs. He let one of the departing deputies explain whether the firm should keep bothering with investment banking if returns remain low. That doesn’t bode well for the division’s future. Taking outsized risks in a hugely competitive market wasn’t a winning strategy, as shareholders have learned painfully. SocGen and Natixis have little option but to keep cutting, and hope for a white knight suitor to emerge.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Elisa Martinuzzi is a Bloomberg Opinion columnist covering finance. She is a former managing editor for European finance at Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • NZX partners with BNP Paribas to boost capital flows
    Reuters

    NZX partners with BNP Paribas to boost capital flows

    BNP Paribas Securities Services will work towards becoming a general clearing participant by the first half of 2021, allowing it to clear and settle transactions for itself and other market participants, NZX said in a statement. The stock exchange operator said BNP will introduce its third-party clearing model to direct members in New Zealand and remote brokers, offering a cost-effective solution for managing large trading volumes.

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