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The Paris-based group, which operates in a number of countries, spoke to this news service about its business growth in nations such as Germany, as well its work in hubs such as Singapore and its Asian growth progress.
For a France-based European banking group, the market in
neighbouring Germany is proving to be a successful venture for
BNP
Paribas Wealth Management as it taps into expertise in areas
such as property, the firm told WealthBriefing
recently.
Almost five years ago when the bank spoke to this news service
about
the German market, it was upbeat. And whatever storms and
upheavals there have been around the world in the intervening
period, Vincent Lecomte (pictured) says the optimism that drove
the strategy is undimmed.
“We have already a business [in Germany] that focused mainly on
high net worth individuals which has proven to be very successful
by leveraging our online digital bank. In addition, we decided to
launch a new activity from scratch but capitalising on the
strong footprint of the group there to focus on the
Mittelstand [sector of medium-sized German firms’ owners] and we
hired 85 people in three years,” Lecomte said at the firm’s
offices in the Marylebone district of London. “A significant part
of the top 30 billionaire families in Germany are with us.”
“Germany is a strategic country for wealth management and for the
group,” he continued. There are about 6,000 employees within
BNP Paribas in
Germany advising more than six million private clients, as well
as around 5,000 companies and institutional customers with a
portfolio of financial services. BNP Paribas has a total of
184,000 employees worldwide, of whom 145,000 are in Europe.
“We want to be the preferred partner of those [Mittelstand]
companies. To do so, our global network at BNP Paribas level is a
real asset to connect with the families. As they [firms’ owners]
need to diversify their banking relationships with a bank capable
to offer a wide range of services, we are increasing our share of
wallet,” he said. Today, Germany accounts for about €15 billion
($16.4 billion) of assets for BNP Paribas Wealth Management.
With a presence in a number of major German cities, such as
Frankfurt, Berlin and Munich, the group is capitalising on its
strong on-the-ground presence, Lecomte continued.
His colleague, Edmund Shing – global chief investment officer –
added in the same interview how the bank is also active, and
increasing its work in German-speaking Switzerland, for
example. “We find the same mindset as in Germany…we support
enterprises, such as over exports. We are very `local’.”
Even after a tough year for markets in 2022, it appears that
numbers are stacking up nicely for the group. As announced in
February this year, BNP Paribas said that its wealth and asset
management division’s revenues rose almost 7 per cent
year-on-year to €3.896 billion ($4.18 billion) in 2022, driven by
rising net interest income in the wealth arm as well as rising
principal investment activity. At the end of 2022, the
wealth arm had €411 billion.
A steady course in turbulent seas
While other banks have sustained well-chronicled problems, BNP
Paribas’ strength and solidity has proven a boon. Once again,
people are reminded that having a broad and diversified client
base and capital strength matters, Lecomte said.
“We are about bringing the whole bank to the client,” he said,
referring to how wealth management clients benefit from the
expertise of all parts of the group.
“We plan to grow in the entrepreneurs and families segment in
Europe and, of course, in Asia and in the Gulf,”
Lecomte, who spoke after recently completing a tour around the
Middle East, said. And in places such as the UK, BNP Paribas
is leveraging its real estate franchise, he said.
What’s success like?
A big task these days for banks is having the metrics and data at
hand to know whether clients are happier. Many key clients
have been invited by the top management of the bank for
one-to-one discussions. The group also gets net promotor scores
from its HNW clients to set a sense of how many referrals are
coming its way – often one of the most reliable measures of
progress.
“We are able to support them [clients] whatever the business
cycle is…credit is very important to them, as is our ability to
invest in people and technology to provide the best expertise,”
Lecomte said. “In an increasingly complex environment, they
need to have clear views on how to better protect their wealth
and seize the right investment opportunities.”
Lecomte’s colleague said a value-added feature has been the
international real estate know-how of the group and how it can be
deployed to local clients. In markets such as Germany, that’s
changing, with more foreign firms and expertise entering the
fray, Shing said.
WealthBriefing asked the firm what its hiring and talent
management goals are.
“Our wealth management business is at the crossroad of many other
entities and expertise of the group, which makes working with us
attractive both for internal colleagues and for external
candidates,” Lecomte said. “In 2021, we recruited almost
1,000 people within our different geographies worldwide.”
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