BNPQY - BNP Paribas SA

Other OTC - Other OTC Delayed Price. Currency in USD
15.06
-0.94 (-5.87%)
At close: 3:59PM EDT
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Previous Close16.00
Open14.94
Bid0.00 x 0
Ask0.00 x 0
Day's Range14.76 - 15.36
52 Week Range13.46 - 30.13
Volume1,098,701
Avg. Volume397,664
Market Cap36.924B
Beta (5Y Monthly)1.36
PE Ratio (TTM)4.43
EPS (TTM)3.40
Earnings DateN/A
Forward Dividend & Yield1.68 (10.52%)
Ex-Dividend DateMay 23, 2019
1y Target Est22.52
  • The Dollar Crunch Is Europe’s Gift to Asia
    Bloomberg

    The Dollar Crunch Is Europe’s Gift to Asia

    (Bloomberg Opinion) -- Banks in Asia are suddenly shy to part with dollars. And who can blame them? Many of their corporate clients are borrowing the U.S. currency and depositing it with the same banks — just in case they can’t get the funding when they need it. The caution amid the coronavirus outbreak isn’t all that different from Amazon.com Inc. trying to discourage vendors from cornering toilet paper supplies. “Corporate banks are becoming a bit more discretionary about permitting draws on credit lines where hoarding cash is the sole objective,” according to Greenwich Associates consultant Gaurav Arora. The dollar squeeze is evident, as one of us wrote Monday, in the hefty premiums South Korean banks must fork out to borrow the U.S. currency — a reliable indicator of trouble in the past. It also appears that China’s banks may be less eager or able than before to fund the dollar needs of their corporate borrowers, Bloomberg Opinion’s Anjani Trivedi noted Wednesday.For Asia, the crunch is an unwanted gift from European lenders, whose departure from the region post-2008, as well as regulations that reined in Wall Street firms, have led to a funding hole. Japan’s banks have expanded and lenders like BNP Paribas SA have scaled up trade finance, but they’re yet to fill the void, especially as troubled Deutsche Bank AG shrinks. The German lender was in the top five corporate banks in Asia in 2014; last year, it wasn’t even in the top 10, according to Greenwich. Some countries like Korea have felt the loss more keenly than others. U.K. banks’ exposure to Korea has dwindled to $77 billion from $104 billion in the first quarter of 2008. German lenders’ claims have fallen to $13 billion from $36 billion.Japan’s lenders have taken up part of the slack. Driven by negative interest rates and aging demographics at home, they have dished out funds aggressively in Southeast Asia as well as to global deal-chasing clients like SoftBank Group Corp. The large U.S. operations of megabanks like Mitsubishi UFJ Financial Group Inc. also provide them with liquidity, as does their stack of fully convertible, cheap yen deposits. But some Japanese lenders have piled into off-balance sheet products, which suck liquidity in times of stress. Japan's Norinchukin Bank, a lender to farmers and fisherman, was one of the world’s largest buyers last year of collateralized loan obligations, bundled U.S. leveraged loans.When the Fed extended emergency swap lines to South Korea, Australia, Singapore and New Zealand last week to ease the worldwide dollar shortage, a step that our colleague Shuli Ren called for here, it was a sign that the liquidity problem was serious enough. Overall, the Fed gave temporary access to nine authorities in addition to the five that it has permanent arrangements with for making dollars available.(2) Emerging economies like India, Indonesia, Chile and Peru, though, have seen their requests for swap lines rebuffed in the past. The U.S. only helps those it sees as important to the stability of its own banking system.So what can Asia do? Start with the most extreme case. Australia needs U.S. dollar funding not just for foreign-currency loans but also for Australian dollar mortgages. That’s because the domestic deposit base is small, compared with the size of the banking industry. The average loan-to-deposit ratio of Macquarie Bank Ltd. and other major Australian lenders was 126% versus 68% for the top Asian banks, namely DBS Group Holdings Ltd., Mizuho Financial Group Inc., MUFG, Standard Chartered Plc, and HSBC Holdings Plc, according to banking analyst Daniel Tabbush, founder of Tabbush Report.Offshore funding sustains around one-third of major Australian banks' total worldwide operations. While the International Monetary Fund and others have flagged the reliance on foreigners as problematic, the Australian regulators have so far refrained from discouraging lenders to borrow abroad. Yet, the fact that the country had to seek dollars from the Fed during the epidemic upheaval and auction them to its banks will call into question the sagacity of this relaxed approach. In rest of Asia, one lesson from the dollar squeeze is to shun protectionism. Well-capitalized regional banks like Singapore’s DBS could supplement the three traditionally entrenched foreign lenders: HSBC, StanChart, and Citigroup Inc., a big cash management bank for Western multinationals. DBS could emerge as an Asian global bank, though in good times its expansion has been stymied by regulators playing to nationalist political sentiment, as we saw when it wasn’t allowed to buy Indonesia’s PT Bank Danamon in 2013.The next step may be to seek more intermediaries with scale. JPMorgan Chase & Co. is pumping top dollar into serving corporate treasuries as a safeguard against the fickle fortunes of investment banking. Japan’s lenders could also do more: MUFG is already one of the region’s most aggressive lenders and has the historical advantage of having a dollar clearing license, like HSBC. Unlike 2008, this isn’t a credit contagion yet, though that could change if large, messy financial bankruptcies were to erupt. But beyond the current crisis, the regulators must plan for the next squeeze. Since not everyone can rely on the Fed, the dollar supply chain is each country’s responsibility. At least until a credible alternative to the U.S. currency comes along. (1) The standing facilities are with the Bank of Japan, the Bank of England, the Bank of Canada, the Swiss National Bank and the European Central Bank.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Nisha Gopalan is a Bloomberg Opinion columnist covering deals and banking. She previously worked for the Wall Street Journal and Dow Jones as an editor and a reporter.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Worldwide Dollar Crunch Raises Red Flags in Asia Debt Market
    Bloomberg

    Worldwide Dollar Crunch Raises Red Flags in Asia Debt Market

    (Bloomberg) -- As the shortage of dollars sweeps the globe, cracks are starting to show up in Asia’s emerging markets, despite the hefty foreign-reserve cushions built up over the years.The squeeze on U.S. currency is putting pressure on emerging Asia debt. Southeast Asian and Indian government and corporate payments are set to jump 67% in 2022 to $41.9 billion, according to data compiled by Bloomberg. Dollar payments are expected to peak at $44.4 billion in 2024.While the Federal Reserve has ventured into unchartered territory to fight a slowdown in the world’s largest economy, Indonesia, Malaysia, and India are raising red flags for analysts as the coronavirus outbreak shutters large parts of their economies, currencies plunge and governments push to widen their fiscal deficits. It’s all a wakeup call for emerging Asia, which has been seen as relatively sheltered compared to peers globally, given flush foreign reserves, current-account surpluses in many countries and regional swap lines to tap on in crisis.“No one is facing imminent balance of payments pressure here,” said Christian de Guzman, senior vice president at Moody’s Investors Service in Singapore. “But given the way markets are right now the option of refinancing for them may be a bit difficult. There’s already some pressure on their local currencies. The cost of funding may have actually increased.”Indonesia and India are of particular concern, given the twin deficits on their budget and current accounts, which make them more reliant on foreign inflows than peers.IndonesiaFiscal pressures are building in Indonesia, where the government is considering lifting its deficit cap to 5% of GDP from 3%. The central bank is predicting the current account deficit will come in at 2.5%-3% of GDP this year, and foreigners own 35% of Indonesian local-currency government bonds, among the highest in Asia based on available data.The rupiah has taken a beating, weakening about 16% against the dollar so far this year, making it the worst-performing currency in Asia. That will put pressure on companies refinancing their dollar debt, said Xavier Jean, senior director for corporate ratings, at S&P Global Ratings in Singapore.“The credit quality of Indonesian companies as a whole has been steadily declining over the past three years because of steady capital spending, growing debt, intense competitive pressure and more challenging operating conditions, especially in the real estate sector,” he said.Almost one-third of the credit ratings in the Indonesian corporate sector, excluding state-owned firms, are on negative outlook -- signaling further deterioration in their credit profile over the next three to 12 months, Jean said. That’s the highest level since the global financial crisis, he added.The yield on Indonesian state oil and gas firm PT Pertamina Persero’s dollar bonds due July 2029 surged 205 basis points this month to 5.21%. Similarly, the rate on Malaysia’s Petroliam Nasional Bhd’s dollar debt due October 2026 jumped 132 basis points to 3.29%.Among the eight local sovereign bond markets in emerging Asia tracked by Bloomberg, Indonesia and Malaysia have the biggest losses so far this month at 19% and 10% in dollar terms, respectively. The yield on Indonesia’s benchmark 10-year bond has climbed to 8.38%, the most since 2018, while that on Malaysia rose to 3.58%, near an eight-month high.IndiaIn India, similar pressures are building. Global funds have sold net $7 billion of rupee-denominated debt so far this month through March 23, based on data compiled by Bloomberg. The rupee has plunged to an all-time low and stocks fell by a record Monday after the government moved to lock down the country of 1.3 billion people.The market sell-offs show both Indonesia and India as being the “most, and increasingly, troubled,” said Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore. Currency plunges and external debt servicing are problems that could compound one another, he said.The central banks in both countries have been accelerating steps to shield the economy from the market fallout. Indonesia has cut interest rates twice this year, increased intervention in the currency market and purchased bonds from the secondary market. The Reserve Bank of India has pumped liquidity into the banking system.MalaysiaNatixis SA highlights risks around Malaysia, assessing it as one of the least liquid of 11 economies in the region, according to a March 18 note by chief Asia-Pacific economist Alicia Garcia Herrero and emerging Asia senior economist Trinh Nguyen.Malaysia’s high reliance on foreign income -- including commodities exports that account for 15% of GDP, and shipments of intermediate goods that are 49.5% of GDP -- make it particularly vulnerable, according to Natixis.By industry sector, oil and gas as well as metals and mining are under greater pressure right now, and account for a higher share of dollar credit in South Asia than in North Asia, said Ek Pon Tay, senior portfolio manager at BNP Paribas Asset Management in Singapore.“Beyond the immediate liquidity squeeze coming from the global credit crunch via the capital account, the decline of commodity prices is adding another pressure,” the Natixis analysts wrote. For commodity-reliant economies like Malaysia, “the contraction of earnings and USD will impact these exporters and the economy.”(Updates with local bond moves in 11th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Oakmark Funds Commentary: The Case for European Financials
    GuruFocus.com

    Oakmark Funds Commentary: The Case for European Financials

    By David Herro, Jason Long and Justin Hance Continue reading...

  • Dollar Funding Strains Return Amid Blow-Out in FX Volatility
    Bloomberg

    Dollar Funding Strains Return Amid Blow-Out in FX Volatility

    (Bloomberg) -- Strains in dollar funding markets re-emerged late Wednesday after global currency markets turned suddenly illiquid as U.K. authorities considered locking down London, the center of foreign-exchange trading.Cross-currency basis swaps for the euro-dollar pair, a proxy for how expensive it is to acquire the greenback, showed renewed signs of stress following a brief reprieve. On Tuesday, they touched levels last seen in 2011, before euro-area banks took $112 billion made available through a special central bank operation, providing a brief period of respite.Dollar funding markets more broadly got a bit of a breather in the wake of new Federal Reserve policy measures and news of a U.S. Treasury department proposal to support America’s money-market mutual funds, but these improvements also pared as the day wore on. Commercial paper rates, meanwhile, have continued to climb.“Corporates around the world are drawing on their credit lines to ensure they have enough liquidity,” Robert McAdie, BNP Paribas SA’s chief cross-asset strategist, wrote in a note. “This is creating a surge in the cost of dollar liquidity.”Here’s a look at some key funding metrics:Cross-Currency Basis SwapsThree-month euro-dollar cross-currency basis swaps inched wider, after tightening to as much as 11 basis points, a slight premium for getting euros.Libor-OISThe gap between the three-month London interbank offered rate for dollars and overnight index swaps sat at its widest since 2009 as of Wednesday’s setting, led by an increase in the key global fixing. The so-called FRA-OIS spread -- which is futures traders’ outlook for the trajectory of funding stress going forward -- also expanded after earlier improvement.Commercial PaperRates on three-month commercial paper for non-financial companies reached a record relative to OIS. As companies raise cash ahead of an economic slowdown, they appear to be having difficulty selling the short-term IOUs -- a common occurrence during times of stress when money funds show a preference for safe assets.However, the Fed’s late Tuesday announcement of a Primary Dealer Credit Facility may support sentiment. This allows primary dealers to borrow at the 0.25% discount window by pledging different assets, including investment grade debt securities and municipal bonds. Alongside the earlier announced commercial-paper facility, this will begin on March 20.Read more: Why It Matters That the Libor-OIS Spread Is Widening: QuickTake(Updates moves throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • Reuters

    French banks in no need of nationalisation - Bank of France chief

    French banks can weather the current economic storm unleashed by the coronavirus outbreak and are in no need of nationalisation despite the recent collapse in their share prices, the head of France's central bank said on Wednesday. French Finance Minister Bruno Le Maire said on Tuesday the government was prepared to inject capital into strategic companies and even nationalise them if necessary in the face of the financial market fallout from the outbreak. France's biggest listed banks - BNP Paribas, Credit Agricole and Societe Generale - have suffered sharp drops in their share prices in tandem with the broader market plunge.

  • Reuters

    Hedge fund Bridgewater places $15 bln in bets against Europe and UK

    Hedge fund behemoth Bridgewater has shown its hand in Europe with roughly $15 billion in bets against companies on the continent and in Great Britain, filings reviewed by Reuters show. The world's biggest hedge fund manager's short positions amount to more than $5.3 billion in France and $4.7 billion in Germany, while in Spain its shorts add up to almost $1.4 billion and $821 million in three Italian companies. Hedge funds engage in the practice of 'shorting' by borrowing a stock from an institutional investor, such as a pension plan, and selling it back at a profit when the price drops.

  • ECB to boost banks but markets unimpressed by unchanged interest rates
    MarketWatch

    ECB to boost banks but markets unimpressed by unchanged interest rates

    The European Central Bank on Thursday kept its key interest rate unchanged but announced measures to provide cheap funding for eurozone banks to help them support the economy through the coronavirus epidemic.

  • Bloomberg

    The ECB Needs to Look Beyond Banking Giants for Financial Risk

    (Bloomberg Opinion) -- Since taking over as the euro zone’s main banking supervisor, the European Central Bank has spearheaded efforts to reduce the amount of bad loans that had cumulated throughout the great recession and the euro zone sovereign debt crisis. This pile has fallen from 6.8% of total loans at the peak in the December 2015 to 2.9% in September 2019.But critics, including the Bank of Italy, have insisted that the ECB has been blind to another risk lurking within the banking system: illiquid Level 2 and Level 3 assets, such as interest rate swaps or unlisted equity investments, which are hard to value and dispose of and can be especially problematic during these times of financial stress. These assets sit on the balance sheets of many banking giants such as Deutsche Bank AG and BNP Paribas SA. In light of new research, the supervisor would be wise to monitor the level of these assets among smaller banks, too.To be sure, Italy’s warning was in part self-serving: the country had a particularly high proportion of bad loans, which has come down sharply only in recent years. But regulators and supervisors should certainly be asking whether they are doing enough to ensure that Level 2 and Level 3 assets won’t contribute to the next financial crisis – especially since these played an important role in the 2008 crash.The European Systemic Risk Board, the body in charge of monitoring threats to the financial system as a whole, has produced a study to examine the dangers behind these instruments. They suggest that supervisors pay greater attention to the exposures of mid-sized banks, which are often less transparent than Europe’s banking giants in disclosing their assets. The report documented a high level of heterogeneity in disclosing Level 2 and Level 3 assets by individual banks. The authors looked at a sample of 22 lenders from the European Economic Area – including the 11 systemically important banks. They found that all the largest banks, including the likes of Deutsche Bank and BNP Paribas, have high levels of transparency.Conversely, smaller banks are more cagey about what they hold. In fact, the amount of detail they give declines as the proportion of Level 2 and Level 3 assets increases. This means that supervisors who are worried about the role of these instruments should also look beyond the usual suspects that are the larger banks. While these may be a concern for the size of their balance sheets, smaller lenders may have more to hide.The report offers a list of sensible recommendations. These include demanding greater transparency from smaller, individual banks, and speeding up Europe’s implementation of the “Fundamental Review of the Trading Book”, a set of capital rules for trading activities that was internationally agreed upon by the Basel Forum last year.However, the most important check on the real health of banks must come from supervisors monitoring individual ones. They need to verify that the valuations of individual assets and the models used to evaluate risk are realistic. Level 2 and Level 3 assets need not be dangerous, so long as the ECB ensures they are properly accounted for.To contact the author of this story: Ferdinando Giugliano at fgiugliano@bloomberg.netTo contact the editor responsible for this story: Nicole Torres at ntorres51@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Ferdinando Giugliano writes columns on European economics for Bloomberg Opinion. He is also an economics columnist for La Repubblica and was a member of the editorial board of the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • GlobeNewswire

    BNP Paribas Closes Sustainability-Linked Syndicated Credit Facilities with Crown Holdings

    NEW YORK, March 05, 2020 -- BNP Paribas, a premier global bank, today announced that it has recently helped Crown Holdings, Inc. (NYSE: CCK) ("Crown"), a worldwide leader in.

  • Reuters

    Banks in Sudan to introduce Visa payment systems

    Several banks in Sudan are introducing Visa payment systems as the country seeks to develop its financial sector following decades of isolation, a central bank official and the U.S. financial services company said. Bank of Khartoum, Qatar National Bank and United Capital Bank (Bank Almal) have received approval to start using the systems, which were expected to be launched in about three weeks, said Omar Amrabi, head of electronic banking services (EBS) at Sudan's central bank.

  • Reuters

    Lion Air puts $500 mln IPO on hold as global equity markets tumble -sources

    SINGAPORE/HONG KONG, Feb 28 (Reuters) - Indonesia's Lion Air has deferred plans for an initial public offering (IPO) due to a sharp fall in global stock markets, people close to the matter said on Friday, as the spreading coronavirus sparks worries of a global pandemic. A decision on the up to $500 million IPO of one of Asia's largest budget airlines was expected by the end of February after banks completed investor presentations in global financial centres earlier this month. Two people said Lion Air, which was set to launch the IPO as early as March, would consider a float only when markets stabilised.

  • European stocks end sharply lower as index retreats 10% over six sessions
    MarketWatch

    European stocks end sharply lower as index retreats 10% over six sessions

    European stocks slumped on Thursday, as new virus cases mount outside of China, including the first from an unknown source in the United States.

  • Did Changing Sentiment Drive BNP Paribas's (EPA:BNP) Share Price Down By 16%?
    Simply Wall St.

    Did Changing Sentiment Drive BNP Paribas's (EPA:BNP) Share Price Down By 16%?

    For many investors, the main point of stock picking is to generate higher returns than the overall market. But its...

  • GlobeNewswire

    BNP Paribas and JetBlue Partner to Close First Sustainability-Linked RCF for the Airline Industry

    BNP Paribas, a premier global bank, today announced that it has closed a sustainability-linked loan (“SLL”) with JetBlue Airways (“JetBlue” or the “Company”), via an amendment to its existing Senior Secured Revolving Credit Facility (“RCF” or the “Facility”). JetBlue has amended its existing $550 million Senior Secured Revolving Credit Facility by including a “sustainability-linked” provision to align its strategic initiatives with its environmental, social, and governance performance (ESG) goals and objectives.

  • Reuters

    Lion Air to decide on IPO plans by month-end -sources

    Indonesia's Lion Air will decide by the end of the month when to proceed with its planned initial public offering (IPO) in the face of reduced investor appetite for the sector because of the coronavirus outbreak, said sources close to the matter. Banks involved in the expected $500 million IPO of one of Asia's largest budget airlines have completed investor presentations in Singapore, Hong Kong, Jakarta, Europe and the United States, the sources said. Sources had previously said that Lion Air could launch the IPO as early as March.

  • European banks shine as bond trading rebounds
    Reuters

    European banks shine as bond trading rebounds

    MILAN/LONDON, Feb 6 (Reuters) - European banks have started 2020 on a strong note, much like their rivals in the United States, with a revival in bond trading offsetting pressures from negative interest rates. The European bank shares index erased all of its year-to-date losses on Thursday as strong trading and fee revenues from major banks in the region pointed to a better-than-expected earnings season. Although BNP Paribas had to cut profit targets on Wednesday because of the lower for longer rate environment, investors reacted positively to the French bank's bumper trading revenues.

  • France's BNP Paribas on prowl for further European expansion
    Reuters

    France's BNP Paribas on prowl for further European expansion

    BNP Paribas is looking for further opportunities to expand its investment banking franchise in Europe and fortify its lead over local rivals after last year taking over Deutsche Bank's electronic equity and prime broking operations. France's biggest bank has jumped to the top of Europe's investment banking league tables by gaining market share in fixed income and equities trading, as others pare back or exit. Yann Gerardin, head of corporate and institutional banking at BNP Paribas, told Reuters after the bank reported a doubling of fourth quarter global markets revenue that it would examine openings like the Deutsche one if they arose.

  • PR Newswire

    BNP Paribas CEO Interview - FY 2019 Results (Video)

    BNP Paribas, one of Europe's largest banks, reports 2019 full year results. CEO Jean-Laurent Bonnafé comments on the Group's results.

  • MarketWatch

    BNP Paribas cuts profitability target, as fourth-quarter profit climbs

    BNP Paribas SA cut its profitability target for this year as fourth-quarter net profit rose significantly.

  • One Unique Energy Company to Consider
    GuruFocus.com

    One Unique Energy Company to Consider

    CorEnergy Infrastructure Trust has a business model that enables it to earn profits even during an oil market downturn Continue reading...

  • GlobeNewswire

    BNP Paribas Closes Sustainability-Linked Syndicated Credit Facility with WSP Global

    MONTREAL, Feb. 04, 2020 -- BNP Paribas, a premier global banking partner, today announced that it has closed a sustainability-linked syndicated credit facility with WSP Global.