Super League In-Depth Analysis: BNP Paribas Wealth Management

Super League In-Depth Analysis: BNP Paribas Wealth Management

  • January 2016 •
  • 37 pages •
  • Report ID: 3571249 •
  • Format: PDF
BNP Paribas is the world’s seventh-largest wealth manager (as measured by published assets under management). In 2014 BNP Paribas’s profits were negatively influenced by a settlement with US authorities that resulted in an exceptional charge of $7bn in 2014 and a profit development of -61%. BNP Paribas is continuing to implement its 2014-2016 Business Development Plan, which has impacted its wealth operations in terms of both cost-cutting measures and synergy efforts such as upstreaming clients. As part of BNP Paribas’s strategy of targeting UHNW clients, its US subsidiary Bank of the West launched a new ultra-high net worth (UHNW) unit, Family Wealth Advisors, in October 2015. BNP Paribas strengthened its brokerage capabilities in India by acquiring retail brokerage Sharekhan in July 2015.

Key Findings
- BNP Paribas is predominantly a retail bank, with BNP Paribas Wealth & Asset Management contributing 7.2% of overall group revenues.

- BNP Paribas Wealth Management is looking to the higher wealth tiers, particularly the growing UHNW wealth in Asia, Europe, and the Middle East. Bank of the West has launched a new UHNW unit in the US, which means better positioning to target the growing UHNW wealth.

- The firm targets entrepreneur clients and corporates with a service proposition integrating its expertise in corporate and investment banking. In its domestic markets, BNP Paribas’s private banking operations target new clients by upstreaming wealthy customers from the group’s retail banks.

- BNP Paribas Wealth Management has implemented a cost-cutting plan but still has a cost-revenue ratio higher than its competitors. For wealth management, the plan included the introduction of a multi-channel strategy with common customer relationship management and digital solutions across international entities and domestic digital synergies.

Verdict Financial’s Super League In-Depth Analysis: BNP Paribas Wealth Management competitor profile is a comprehensive analysis of BNP Paribas’s wealth management and private banking operations. It offers insight into the company’s strategy, financial results, and marketing activities. It also covers the wealth manager’s recent merger and acquisition (M&A) activity, customer targeting, and product innovation. Insight into BNP Paribas Wealth Management’s growth strategy.

- Overview of the firm’s organizational structure.

- Clear presentation of its geographical coverage and expansion strategy, including M&A activity.

- Analysis of the firm’s financial performance at group and divisional level, including comparison to other global wealth managers.

- Examination of the key target client groups.

- Analysis of BNP Paribas Wealth Management’s service and product proposition and how it is unique compared to its competitors.

- Review of BNP Paribas’s marketing and social media activities at group and divisional level.

Reasons To Buy
- Examine the financial performance and key ratios for BNP Paribas Wealth Management and benchmark this competitor against other global wealth managers.

- Explore BNP Paribas Wealth Management’s recent M&A and growth strategies and their impacts on its AUM growth and financial performance.

- Understand BNP Paribas Wealth Management’s client targeting strategies and examine whether these have been successful.

- Learn more about BNP Paribas Wealth Management’s marketing strategy and social media presence.