Given the market dislocation and the extreme volatility, aggravated by Lehmans bankruptcy and its violent market repercussions, which have continued since the end of September, BNP Paribas Corporate and Investment Banking (CIB) division has realised negative revenues in November, as it did in October.
Given the high cost of risk, CIBs pre-tax profit for the first 11 months of the year registered a 710 million loss (including the 350 million impact of the Madoff affair).
Due
to
the
enduringly
difficult environment, BNP Paribas CIB division will implement a package of measures :
–
Reduce both market risk and bonds inventories-
Evolve products to meet clients new requirements (development of flow products and simpler derivative products)-
Adapt the platforms and the means allocated notably to the fixed income credit business and to the most complex products-
Consider measures which could lead to a reduction of worldwide staffing levels in CIB of around 5%.
Thanks to the Groups diverse activities and the dominance of retail banking in its business mix, BNP Paribas, naturally, is largely profitable over the first 11 months of the year.
D.C.