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 toAA-following a deterioration of asset quality in 2009, BNP Paribas has confirmed its position within the club of the strongest banks in the world.
← At first, it seems important to make a SWOT analysis.
• A well-known bank with a strong reputation, particularly thanks to the different assessments of rating agencies, but also in terms of net results. Inaddition, 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 thesoundness 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 allowsit 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.
• Vigorous competition in France and abroad. Indeed, with Société générale, LCL or credit agricolein France and HSBC, Barclay’s etc abroad, the competition in this sector is very important.
•The major exhibition of BNP Paribas in financial markets poses a risk of volatility in the title and thus weakening the society.
• Suspension of operations in Côte d'Ivoire following the conflict situation affecting the country. What constitutes a shortfall, for sure.
•Significant development of international operations, actually, BNP Paribas is strongly positioned abroad within Europe but also across the Atlantic. A competitive advantage for very knowing about 45% of the turnover of BNP is done abroad.
• BNP Paribas offers a multitude of services, thereby maximizing customer investments and to expand the target of customers of the group
• A strong marketposition, with a strong presence throughout the world and very satisfactory results, as being one of the most influential banks in Europe in terms of market capitalization for example
• A shortfall on the long term loans. Indeed, BNP Paribas offers one of the lowest interest rates on his loans, what could be a strength thanks to the development of fame and of confidence for BNPParibas’s customers but it constitutes a weakness because of the low profits on this kind of loans.
• Low growth in revenues can constitute a clear drawback in intern for the company. Indeed, this could lead to a decline in resources on managing client assets of the bank
• A significant union presence, and sometimes going against the reputation of the company and its values
← Then,in order to complete internal analysis, we can evoke value chain, to identify potential competitive advantages.
Technology / innovation:
• For BNP Paribas, it is difficult to talk about technology. Indeed, it deals with innovation. Innovation in product offering to customers, for example new hedge funds or new types of financial securities. The Innovation in products is done through...