(AOF) – BNP Paribas has expressed interest in a possible acquisition of ABN Amro Bank, which has been owned by the government since the financial crisis, reports Bloomberg. The French bank recently approached the Dutch government and discussed its interest in a transaction, unidentified sources said. BNP Paribas is interested in the retail and corporate businesses of ABN Amro, as well as the possibility of expanding into northern Europe, they said.
The Dutch government is not seriously considering this expression of interest at the moment, says Bloomberg. The state might prefer to sell other shares on the market, which would allow it to raise funds while retaining some control, said one of the people interviewed by the outlet.
Asked by AOF, the Dutch Ministry of Finance replied that it could not make any public announcement on the specific considerations regarding the sale of its stake in ABN Amro. He added that he speaks “regularly with various stakeholders on a wide range of topics related to this shareholding”. The Ministry of Finance, however, clarified that it had “recently informed Parliament that it had asked the NLFI – which holds the shares of ABN Amro on behalf of the State – to advise it on the subsequent sale of the shares of ABN Amro”.
For its part, BNP Paribas does not comment.
On the stock market, ABN Amro shares jumped 11.44% to 11.44 euros while BNP Paribas rose 1.98% to 48.46 euros.
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Key points
– Bank born in 1822, reinforced in 1999 by the merger with Paribas, 1st in France and 7th worldwide;
– Net banking income of €46.26 billion generated by international financial services (34%), banking networks (35%) and investment banking (31%);
– More than 80% commitments in “rich” countries: France for 32%, Belgium & Luxembourg for 16%, Italy for 9%, other European countries for 19%, North America for 13%, Asia-Pacific for 6 %;
– 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 12.4%, return on equity of 13.4% and liquidities of €468 billion.
Challenges
– GTS 2025 plan for growth, technology and sustainability aimed at:
– 11% return on equity, annual growth of 3.5% in NBI, self-financing of transformation and investments and distribution rate of 60%, including at least 50% in dividends:
-Highest rated innovation strategy in the sector and focused on digitalization:
– 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 the world leader in sustainable finance (2nd worldwide in green bonds and 1st in Europe, 1st in Europe for financing renewable energy projects):
– objective of carbon neutrality in 2050,
– by 2025, €350 billion mobilized in sustainable loans and bond issues and €300 billion in sustainable investments;
– alignment of the loan portfolio with the trajectory of the Paris agreement (end of coal financing in 2030 in Europe and deployment of the Pacta methodology),
– advances in green microfinance,
– funding of €4 billion for biodiversity;
– Towards joint ventures with the financing subsidiary of Stellantis, operating in Germany, Austria and the United Kingdom.
Challenges
– Change in net book assets, €78.7, to be compared with the stock market price;
– Continued control of management fees and the cost of risk;
– Russia-Ukraine war: very marginal impact –depreciation on the Ukrainian subsidiary- and interruption of services to Russian customers;
– Use of funds from the sale of the US subsidiary BoW – €14.4 billion split between share buyback program, investments in technologies and targeted acquisitions;
– After a dynamic 1st quarter, confirmation of 2025 objectives;
– Share buyback programs and 2021 dividend of €3.67, i.e. 50% of the profit.