Covid-19 crisis: Thierry Laborde, Deputy CEO of BNP Paribas, sees “a rebound in activity in the second half of the year”

Thierry Laborde, Deputy CEO of BNP Paribas, eco guest of franceinfo on Friday 5 February 2021 (FRANCEINFO)

With more than seven billion euros in net profit in 2020, BNP Paribas is doing better than resisting the economic crisis linked to Covid-19. The leading European bank posted a loss of 13.5% and its net banking income was stable.

According to Thierry Laborde, Deputy CEO of BNP Paribas, this result has an explanation: “The group has been very diversified for a very long time, and in many fields “. “We have activities that are going very well, he adds, like market activity (…) On the other hand, for consumer credit, it’s harder, and for network banks, it’s also more difficult “.

This year, BNP Paribas will once again pay a dividend to its shareholders. Is this the moment? “It is normal to remunerate those who provide us with capital “, argues Thierry Laborde, according to who the bank is “already over-capitalized. The bank’s capital ratio is 12.8%, while our medium-term target was 12%. The bank’s balance sheet is very solid “.

According to Thierry Laborde, the fragility of some borrowers does not constitute a danger. He estimates that only a small part of the loans guaranteed by the state will not be repaid, with “a loss rate between 4% and 6% on the outstanding PGE, over the next five to six years “.

More generally, the manager anticipates that the economic horizon is clearing up: “We estimate that in the second half of 2021, with the development of vaccines, uncertainty will rise (…) We see a recovery, a rebound in activity “.

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