Delhem Sofiane Assignment 1

4ESG1
Analysis of BNP Paribas

From the outset it seems important to present BNP Paribas in a few words. Thus, with three principal activities namely retail banking in France and in international, bank financing and investment, and Asset Management and services with asset management activities. Today, with the AA rating, revalued in 2010 to AA-following a deterioration of asset quality in 2009, BNP Paribas has confirmed its position within the club of the strongest banks in the world.

INTERNAL ANALYSIS

← At first, it seems important to make a SWOT analysis.

Opportunities:

• A well-known bank with a strong reputation, particularly thanks to the different assessments of rating agencies, but also in terms of net results. In addition, resistance to the vagaries of banking market is proven, with a positive result in 2008 despite the collapse of many banks and large deficits of several French banks during this crisis period.

• Baudouin Prot, CEO of the bank announced February 17, 2011 and 2010 results, amounting to 7.8 billion euros is a significant increase of 34% compared to 2009. An announcement confirming the soundness and safety of BNP Paribas. What deter investor’s concerns?

• The integration of Fortis Bank to BNP Paribas. Indeed, the takeover of the bank in the Benelux area has strengthened the group's solidity in the sense that the Belgian state is now a shareholder of BNP. In addition, the results of BNP-Fortis prove to be very satisfying.

• The diversity of the activities of BNP Paribas allows it to evolve and cope with various economic events. With operations in retail banking, corporate banking and investment management of collection and recovery of assets or whether in real estate. Thus, despite some slowing activity in a cluster group, the others compensate the losses.

Threats:

• Vigorous competition in France and abroad. Indeed, with Société générale, LCL or credit agricole