BNP Paribas made EUR261 million from the merger with Fortis in Q2 of 2009. Of the EUR474 million pre-tax income from the combined firm, EUR243 million was due to one-off revenues due to improved market parameters, according to a BNP Paribas statement. Costs have also been cut due to the synergies from the intergratio of ABN Amro Asset Management.
According to a timeline from BNP Paribas, the official integration between the two banks is set for the 1st December 2009. However the Fortis Merchant Banking arm remains a significant risk. BNP Paribas had said it is cutting costs within the department, and attempting to address its cost at risk.
Net asset inflows for the French banking giant decreased heavily in 2009, down 77% quarter-on-quarter. Assets under custody increased by 6.1% to EUR3.57 trillion, and assets under administration increased by 7.3% to EUR612 billion. However revenues for BNP Paribas Securities Services fell 13.2% year on year, due to the impact of the drop in value of assets under custody and under administration, and the contraction of the interest margin due to the fall in interest rates.
Giles TurnerNews Editor