BNP Paribas increases lending to €9 billion in Luxembourg
French bank BNP Paribas' retail banking arm in Luxembourg reported a 7.4% increase in outstanding loans last year to reach €9 billion.
In its annual results, the bank said there had been robust growth in mortgages and corporate loans at BGL BNP Paribas, and deposits were up 15.4% particularly for corporates.
While outstanding loans grew from €8.4 billion to €9 billion over the course of the year, deposits grew from €16.4 billion to €18.9 billion.
Thierry Laborde, head of domestic markets, highlighted the "good continuation of activities in Luxembourg" and the good development of the "wealth management" business.
Overall, BNP Paribas announced net income of €7.8 billion, up slightly by 0.7% year on year. Excluding exceptional items, it stood at €8.1 billion, or a 4.4% increase.
Revenues however were down 0.6% year on year.
"With €7.8 billion in net income, BNP Paribas delivered a good performance in 2017, thanks to its integrated and diversified model in service of clients," BNP chief executive officer Jean-Laurent Bonnafé said.
"There was sustained development in the business activities of the operating divisions supported by a stronger economic growth in Europe, costs are under control and the cost of risk is significantly lower."
The Grand Duchy owns shares in the French bank, meaning the Luxembourg state will receive a windfall of more than €38 million as a result of a dividend of €3.02 per share.