Private lending behind strong growth at BNP Luxembourg
French banking group BNP Paribas' private and corporate lending in Luxembourg saw sharp growth in the first quarter of this year, with pre-tax income almost doubling compared to the same period in 2021, the group said on Tuesday.
The Paris-based group's commercial and private banking activities in Luxembourg generated pre-tax income of €40 million in the first quarter of 2022, almost double the €21 million generated in the first quarter of 2021, according to the group's latest quarterly earnings.
The overall BNP group recorded a profit of €2.1 billion in the first quarter of this year, an increase of almost a fifth compared to 12 months ago.
BNP in Luxembourg generated revenues of €115 million in the first three months of 2022, a rise of over 14% from the opening quarter of last year.
Outstanding loans increased by 7.3% over the period, driven by a rise in mortgage and corporate lending. Deposits were up by 6.7% and off-balance sheet savings saw a 3.1% rise.
There was a small increase of almost 2% in operating expenses, which totalled €80 million in the first quarter of 2022, attributed to "business development" support.
The news comes after the subsidiary of the Paris-based bank in the Grand Duchy, which is partly owned by the Luxembourg state, saw a 1% drop in profits to €394 million last year, the bank said last month, after a strong 2020 driven by property sales.
The bank closed seven of its branches across the Grand Duchy as a result of the coronavirus pandemic and more people banking online, the organisation said at the end of 2020.