BNP Paribas: exclusive strategic financing partnership with Jaguar Land Rover in Europe – 2022-02-04 13:00


(AOF) – Jaguar Land Rover and BNP Paribas become exclusive partners for the marketing of financial services to all distributors and customers of Jaguar Land Rover. “The partnership aims to expand and improve the distribution of competitive automotive financing solutions with new innovative services in nine European markets,” explain the two partners.

By early 2023, the ambition is to provide Jaguar Land Rover’s dealer partner network and customers with a full range of financing solutions. These solutions, aligned with the mobility strategy of the two partners, will cover inventory financing, conventional loans, rental with purchase option (LOA), long-term rental (LLD) and insurance products.

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Key points

– Bank born in 1822, strengthened in 1999 by the merger with Paribas, 1

time

French and 7

th

worldwide;

– Net banking income of €44.63 billion generated by international financial services (35%), banking networks (34%) and investment banking (31%);

– More than 80% commitments in “rich” countries: France for 34%, Belgium & Luxembourg for 15%, Italy for 10%, other European countries for 19%, North America for 12%, Asia-Pacific for 5 %;

– Business model based on diversification in locations and businesses, synergies and cooperation between businesses, on operational innovation and for customers;

– Capital held by the Belgian State (7.7%), the Grand Duchy of Luxembourg (1%) and the employees (4.4%), with a board of directors of 13 members chaired by Jean Lamierre, Jean- Laurent Bonnafé being Managing Director;

– Solid financial position – CET 1 ratio of 13% and liquidity of €478 billion at the end of September.

Challenges

– Growth strategy being redefined in the future 2025 plan;

-Highest rated innovation strategy in the sector and focused on digitalisation: internally: support for intrapreneurs (Lux Future Lab, People’sLab4Good, Bivwak) / in the offer to customers: 4.4 million “digital” customers , leader in France in digital functionalities, world-leading platforms in government bonds, forex or swaps and in the top five European neo-banks with Hello Bank! / partnerships: global Plug and Pay platform for accelerating start-ups;

– Environmental strategy aiming to become 1

er

world of sustainable finance (1

er

global in green bonds, 1

er

European funder of renewable energy projects, 1

er

in EMEA in bonds with ESG criteria): objective of carbon neutrality in 2050 / systematic integration of ESG criteria in all the group’s businesses / towards a portfolio of loans aligned with the trajectory of the Paris agreement (stopping of coal financing in 2030 in Europe and deployment of the Pacta methodology) / objective of €210 billion in energy transition financing for 2022, financing of biodiversity;

– Reinforcement in online banking with the acquisition of Floa Bank.

Challenges

– Change in net book assets, €76.8 at the end of September, compared to the stock market price;

– At the end of September 2021, growth of 5.2% in net banking income and 13.6% in net income.

Many challenges for European banks

The European retail banking model is particularly challenged by the rise of digital technology. Some are withdrawing from this activity, as is the case with HSBC. Added to this is an increase in risks. Thus, according to the ECB, the strong activity of the big banks on the market for leveraged transactions and the markets for derivative products linked to equities expose them to excessive risk-taking.

As for French banks, since the health crisis, they are increasingly exposed to cyber risk following the need to switch massively and quickly from financial activities to teleworking and the provision of remote services.



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