BNP Paribas CIB
|Type||Subsidiary of BNP Paribas|
|Founded||23 May 2000|
|Products||Corporate and Investment Banking;|
|Revenue||US$27.6 billion (2008)|
|Total assets||€3.1 trillion (2010)|
BNP Paribas Corporate and Investment Banking (CIB) is the global investment banking arm of BNP Paribas, the largest banking group in the world. In October 2010, BNP Paribas was ranked by Bloomberg and Forbes as the largest bank and largest company in the world by assets with over US$3.1 trillion. BNP Paribas CIB's main centres are in Paris and London, with large scale operations in New York, Hong Kong and Singapore as well smaller operations in almost every financial centre in the world. It employs 21,000 people across 56 countries and provides financing, advisory and capital markets services. BNP Paribas CIB is a globally recognised leader in two areas of expertise: trading derivatives on all asset classes, and structured financing. BNP Paribas CIB also has a large corporate advisory network in Europe and Asia. BNP Paribas CIB has 13,000 clients, consisting of companies, financial institutions, governments, investment funds and hedge funds.
BNP Paribas CIB benefits from the Group's large asset base (over €2 trillion) and diverse business model, and is proving resilient in the economic and financial crisis that has been affecting the banking sector since 2007. Revenues from BNP Paribas CIB nearly doubled in the second quarter of 2009 as robust investor demand boosted revenues from the bank's fixed income trading business unit. CIB's revenues totaled €3.351 billion (US$4.82 billion) for the quarter, up 81 percent from the second quarter of 2008, and following record revenues of €3.696 billion in the first quarter of 2009.
Structure of BNP Paribas CIB
The firm is divided into 6 key business areas:
- Fixed Income: BNP Paribas' fixed income team helps companies hedge their exposure to foreign exchange, interest rate, and credit risks, primarily though the structuring and sale of derivative products such as interest rate and foreign exchange swaps, foreign exchange options and credit derivatives. It also trades in these markets on behalf of clients or for its own proprietary account. On an average day, a quarter of a trillion dollars in fixed income instruments are traded at BNP Paribas Americas’ fixed income trading floor located just blocks from the NASDAQ MarketSite in Manhattan, New York City.
- Equity & Derivatives: BNP Paribas' Equity & Derivatives team helps companies manage their risks and investment portfolios with equity derivatives such as options, futures, and swaps, as well as highly complex, customized solutions such as structured products. It also trades in these markets on behalf of clients or for its own proprietary account.
- Commodity Derivatives: BNP Paribas' Commodity Derivatives team helps clients hedge their exposure to commodity risk though the structuring and sale of commodity futures and OTC commodity swaps. It also trades in these markets on behalf of clients or for its own proprietary account.
- Corporate Finance: BNP Paribas' Corporate Finance team performs most of the traditional investment banking functions of the group including mergers and acquisitions advisory, and equity raising operations such as Initial Public Offerings (IPOs), rights issues, and convertible bond issues.
- Structured Finance: BNP Paribas' Structured Finance group offers clients project finance solutions, export financing, syndicated loans, and financing for acquisitions and leveraged buyouts.
- Corporate & Transaction Group: BNP Paribas' Corporate and Transaction group offers clients simplified flow banking services including trade finance, international cash management, and basic hedging solutions.
In 2009 BNP CIB earned €112.2 billion in revenue (30% of total group's), €4.4 billion in pre-tax income (48.9% of total group's), and 18,000 employees (9.0% of total group's headcount.)
Notable current and former employees
- Boris Adlam - British financier
- Nassim Taleb - Practitioner of financial mathematics, author of The Black Swan, Fooled by Randomness and Dynamic Hedging, and former BNP Paribas prop trader in New York.
Politics and public service
- Louis Alphonse of Bourbon, Duke of Anjou - considered by royalists as the head of the French Royal House.
- Jacques de Larosière - managing director of the International Monetary Fund (1978–87); Governor of the Banque de France (1987–93)
- Lorenz of Habsburg, Archduke of Austria-Este
- David McWilliams - economist
- Georges Chodron de Courcel - Managing Director, from the family of Mrs. Bernadette Chirac
- Edmond Turquieh - founder of Sapiance Capital Ltd
- Biz Journals[dead link]
- "Annual Report 2007" (PDF). BNP Paribas. Retrieved 2008-06-16.[dead link]
- Bloomberg Oct 2010
- The Global 2000. Forbes, April 21, 2010. Retrieved 11 September 2010.
- Fixed Income Boosts CIB Revenues
- "NY Trading Floor BNP Paribas". cnbc. Feb 2011. Retrieved 2011-04-06.
- "London Trading Floor BNP Paribas". bnp paribas. Feb 2011. Retrieved 2011-04-06.
- Annual Registration Document 2009 BNP Paribas, March 11, 2010. Retrieved April 17, 2010.