BNP says has no appetite for more big acquisitions
PARIS: BNP Paribas is not planning any major international acquisitions in 20192020, France’s biggest listed bank said in a presentation, despite signs of possible big deals in the European banking sector.
“2019-2020: No appetite for further acquisitions,” the bank wrote in a slide for an investor presentation at Bank of America Merrill Lynch (BAML).
The slide referred to the bank’s international financial services division, in which it bundles all activities outside the euro zone plus a series of businesses within the region such as insurance, asset management and real estate.
Earlier this year, BNP Paribas increased
€ its presence in Poland with the 775mil purchase of Raiffeisen Bank’s (RBI) main business in the European Union’s largest eastern economy.
BNP Paribas added in its presentation it would focus instead on integrating earlier acquisitions, such as the Polish deal.
BNP Paribas’ comments came as German business daily Handlesblatt reported Deutsche Bank had considered a theoretical merger with UBS.
The scenario, along with a potential merger with Commerzbank, was discussed at the bank’s strategy meeting with the supervisory board earlier this month, Handelsblatt said. Deutsche Bank, UBS and Commerzbank declined to comment on the report.
A fragmented European market and rising costs linked to tougher regulations, have fuelled speculation banks may look to merge.
BNP Paribas added in its presentation it was on track with its goal to boost value for its shareholders, and described the current backdrop as providing a “good macroeconomic context”.
The bank also said the sale of a further 30% stake in First Hawaiian Bank in two tranches this summer brought a capital gain of 300 million euros that will be booked during the third quarter.