Financial Data and Key Metrics Changes - The net income group share for Q1 2024 was €3.1 billion, with a stable revenue performance showing a decrease of 0.4% compared to Q1 2023 on a distributable basis [4][5] - Operating expenses decreased by 1.4% year-on-year on a distributable basis, resulting in a positive jaws effect of 1.1 points [7] - The cost of risk remained low at 29 basis points, reflecting the strong quality of the credit portfolio [8] - Pre-tax income reached €4.4 billion, representing a 7.4% year-on-year growth [9] - Earnings per share increased to €2.51, higher than the previous year [9] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking (CIB) revenues were down 4% year-on-year, with Global Banking showing a record quarter with a 6% increase [19] - Commercial and Personal Banking (CPBS) revenues were stable year-on-year, with a 1% increase driven by growth in fees and net interest revenues [21][56] - Investment Solutions (IPS) revenues grew by 4% year-on-year when excluding real estate and principal investments, with strong growth in Wealth Management and Insurance [67] Market Data and Key Metrics Changes - The FICC business was impacted by a significant base effect from Q1 2023, but revenues were expected to normalize in future quarters [6][20] - The Belgian retail market faced headwinds due to government bond impacts, but overall performance was resilient [58][60] Company Strategy and Development Direction - The company confirmed its 2024 guidance, expecting revenue growth of more than 2% compared to 2023, supported by operational efficiency and strong risk management [11][12] - The strategic focus includes enhancing operational efficiency, with an additional €400 million in recurring annual savings expected to begin in Q2 2024 [7][28] - The company is also focusing on capital redeployment and partnerships to strengthen its market position, particularly in insurance and mobility sectors [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net income exceeding €11.2 billion for 2024, with a more favorable environment anticipated in the second half of the year [11][12] - The management highlighted the importance of maintaining a strong risk management culture and the low cost of risk as key factors for future performance [30][31] Other Important Information - The company reported exceptional gains from the reconsolidation of BGZ Bank and the sale of personal finance activities in Mexico, contributing positively to Q1 results [17][18] - The company is committed to ESG initiatives, focusing on financing low-carbon energy production and exiting fossil fuels [41][42] Q&A Session Summary Question: Clarification on net profit guidance for 2024 and growth momentum into 2025 - Management confirmed that the 2024 net result is expected to be above 2023, with a central scenario indicating growth of more than 3% [78][80] Question: Rationale for the Ageas deal - The acquisition of a 9% stake in Ageas is aimed at strengthening the partnership and diversifying the portfolio, particularly in non-life insurance [81][82] Question: Revenue progression in French retail and margin development - Management indicated that the top line is evolving well, with expectations for margin improvement as inflation hedges taper off [87][88] Question: Cost flexibility and additional savings - The additional €400 million in cost savings reflects the company's operational efficiency and flexibility to deliver more savings if needed [110]
BNP Paribas(BNPQY) - 2024 Q1 - Earnings Call Transcript