BNP Paribas Securities Services revenues boosted by custody mandates

High-profile custody mandates and the implementation of new technology products helped drive second quarter revenues.

By Joe Parsons

Revenues for BNP Paribas Securities Services increased nearly 4% to €517 million in the second quarter, driven by a wave of new custody and other business mandates.

Assets under custody and administration also rose 2% year-on-year to €11.4 trillion, with the number of transactions increasing 5.9% to 24.9 million.

The improved performance follows the €240 billion fund administration mandate awarded to BNP Paribas by DWS Investments in June, which will cover its actively-managed funds in Luxembourg and Germany.

BNP Paribas also stated it has seen the benefits of its digital transformation programme and is underway with a number of technological enhancements.

“The business implemented its digital transformation with already 30 automated processes under production and 44 in development,” BNP Paribas stated in its earnings release.

“It conducted several blockchain initiatives in partnership with other market players to facilitate, in particular, SME securities transactions (LiquidShare) and fund distribution (PlanetFunds).”

BNP Paribas recently launched a new Securities Inventory Management service, which will automate security transfers and enable clients to optimise the management and liquidity of collateral under custody.

Over the first half of the year, securities services revenues reached over €1 billion, up nearly 5% compared to the first half of 2017.

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