BNP Paribas chief hails ‘strong start’ to 2017 as custody deals roll in

French bank says string of mandate wins reflect long-term strategy.
By Jonathan Watkins

BNP Paribas has secured two new custody mandates this week as its securities services business continues to grow rapidly in 2017.

After already reporting its assets under custody were up 10% in Q1 2017, the custodian has announced two new deals in as many days.

The Asian Infrastructure Investment Bank (AIIB) and Fondo Pensione PRIAMO represent the latest new clients for the custodian.

This follows three more custody and fund administration mandates already signed in May.

“We are seeing a very strong start to the year with new mandates in Europe, Asia and the US,” Patrick Colle, CEO of BNP Paribas Securities Services, told Global Custodian.

“Our commitment to the market and long-term strategy to expand our scale and size are paying off and enable us to offer our clients what we feel is a unique and compelling proposition.”

BNP Paribas will take on $20 billion of new assets from the Asian Infrastructure Investment Bank (AIIB) providing custody and other value-added services.

The news followed another mandate win where Italian pension fund for public transport employees, Fondo Pensione PRIAMO, selected BNP Paribas for its €1.3 billion portfolio.

Earlier in May, the custodian also signed a deal with another Italian firm as ERGO Previdenza selected BNP Paribas for €4.5 billion worth of Italian and foreign assets.

Along with its expansion in Asia and Europe, BNP Paribas is also making an aggressive play in the US, with ambitions of rivalling the big four incumbents in the region.

US operations are led by Claudine Gallagher, who recently took on additional responsibilities for operations in Latin America. 

Colle added that technology and data developments headline BNP Paribas’ priorities moving forward.

“Looking forward, we are working on a number of initiatives on artificial intelligence, blockchain and big data,” he explained.

“We have already announced a partnership with Fortia in the investment compliance field, and the launch Fund Link, which aims to transform fund distribution as we know it today.”

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