BGL BNP Paribas reports 15% profit growth

paribas paribas

Luxembourg’s largest bank, BGL BNP Paribas, reported consolidated net profit of €398.3m last year, an increase of 15%.

Net banking income reached €1,596m (+5% over one year) as gross operational income increased by 12% to €811m, the bank said on 1 April.

Half of the profit has been put in reserve and the other half will be distributed to shareholders, which will see the Luxembourg state receive 110 million dividends for the 2019 and 2020 financial years.

In the retail and corporate banking segment, growth in outstanding loans was 8%, driven by an increase in mortgage loans and investment loans. A total of 5,322 loan moratoriums were granted last year to help clients over the covid hump.

Average deposit volumes increased by 2%, notably with an increase among retail banking customers.

Assets under management for the “wealth management” business were up 2% due to good net inflows.

International leasing activities were hard hit in the first half of the year but a second half rebound limited the drop in average outstanding loans to 3%.