Securities services revenues shine bright for French banks in tough quarter

BNP Paribas and Societe Generale both saw rises in revenues for securities services and assets under custody.

By Jonathan Watkins

BNP Paribas and Societe Generale both reported a year-on-year rise in securities services revenues in the first quarter which were in contrast to the banks’ overall results. 

Shares in both banks dropped on the morning of 4 May following the release of their results.

BNP Paribas’ overall revenues across the business were down 4.4% year-on-year, while Soc Gen’s fell 2.5%.

In securities services however, both custodians saw rises in revenues and assets under custody.

BNP Paribas’ securities services revenues rose 5.7% to €505 million, while Soc Gen reported a 9.2% increase to €178 million.

A series of mandates wins saw BNP Paribas up its assets under custody during the quarter, headlined by the closing of its $130 billion custody deal with Janus Henderson’s US mutual funds, and the outsourcing mandate with Spanish insurance provider MAPFRE Inversión for its €60 billion of assets.

The biggest move from Societe Generale Securities Services of late has been its move to combine its front-, middle- and back-office services into one combined outsourcing service named CrossWire.

“The results posted by the Societe Generale Group for Q1 2018 and at the start of the implementation of the 2018-2020 ‘Transform to Grow’ strategic plan are generally in line with our strategic ambitions,” said Fréderic Oudéa, Societe Generale Group’s CEO.

“With a renewed General Management team, the Group is more confident than ever of its ability to successfully implement all the current transformation projects and meet its strategic and financial objectives.”