Latest news with #Bonnafe
Yahoo
4 days ago
- Business
- Yahoo
BNP Paribas to shutter 200 branches in France by 2027
BNP Paribas is reportedly planning to reduce its network of retail branches in France as part of a strategy to enhance profitability. Its CEO Jean-Laurent Bonnafe confirmed that the bank intends to close approximately 80 branches this year, followed by an additional 120 in the next year, reported Bloomberg. Reports from French newspaper Les Echos suggest that the total number of branch closures could reach approximately 500 by 2030. This move is expected to lead to a 5% annual reduction in branch staff, while the bank aims to increase employment in online and telephone banking services. Discussions with labour unions regarding this strategy, which was first communicated in March, are ongoing. Sources familiar with the situation indicated that impacted staff will be offered alternative roles within the organisation. Besides, BNP Paribas is relying on natural attrition to manage workforce reductions without resorting to layoffs. A spokesperson for BNP Paribas stated: 'We presented in March an ambitious growth plan to trade unions that outlines a strategic roadmap and related investments for our Commercial & Personal Banking in France. Every employee of the bank has their place in this project.' The restructuring is part of Bonnafe's focus on revitalising the retail banking sector, which has faced challenges due to local regulations and the European Central Bank's monetary policies. Isabelle Loc, who was appointed to lead the retail banking division following the departure of Marguerite Berard, is expected to leverage the digital platform Hello bank and private banking services to drive growth. The bank currently operates around 1,500 branches in France, and under Loc's strategy, some branch functions will be shifted to remote customer service centres, with employees being offered new positions. BNP Paribas plans to reveal further details about its restructuring strategy by the end of June. In April this year, BNP Paribas extended its partnership with IBM Cloud for another ten years to enhance its cloud-native strategy and advance generative artificial intelligence (GenAI) capabilities. "BNP Paribas to shutter 200 branches in France by 2027" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
14-02-2025
- Business
- Reuters
Exclusive: BNP investors consider bank's long-term CEO succession plans, sources say
PARIS, Feb 14(Reuters) - Investors in BNP Paribas ( opens new tab are starting to consider who might lead the bank once long-time chief executive Jean-Laurent Bonnafe leaves amid a scarcity of obvious internal candidates to succeed him, sources familiar with the matter said. Some of the French lender's shareholders are urging the bank to bolster succession planning after a senior executive's departure last year left a gap internally if Bonnafe were to leave in coming years, one of the sources said. They are concerned that the lender does not have a clear line of candidates, some of whom would probably need to spend a few years in a senior role before stepping into the top job, said another source. All required anonymity because these discussions are private. Bonnafe, 63, is poised to have his position as a director renewed at the next shareholder meeting in May, enabling him to stay on as CEO until he reaches 65, the initial age limit to lead the company. The lender's board could grant Bonnafe an additional year, allowing Bonnafe to run the bank until 2028 at the latest. A spokeswoman for BNP Paribas declined to comment. There is no urgency to replace Bonnafe, who is praised by investors for his meticulous risk management, execution of the bank's strategy and familiarity with clients, as well as for elevating BNP's standing as a major European investment bank. Bonnafe, who has led BNP since 2011, has bet on growing the securities trading and merger advisory businesses and competing with Wall Street peers, filling a gap left by European rivals that have retreated. Last year, the investment banking division made up about 45% of the lender's 16.2 billion euros ($16.9 billion) in pre-tax income. The abrupt departure of the head of BNP's French retail unit less than a year ago prompted queries from some of the shareholders and within the board, chaired by Jean Lemierre, the first source said. Marguerite Berard, who had joined BNP in 2019, left in March. Berard, 47, was perceived outside and inside the company as a potential successor, three of the sources said. Dutch bank ABN Amro recently tapped her to take over as CEO as it prepares for a further government stake sell-down. BNP is led by the so-called general management, which is composed of Bonnafe and three others. An obvious candidate from the enlarged executive committee, which includes another 15 other top managers, has yet to emerge, three of the sources said. Among the recently promoted executives who might eventually replace Bonnafe, two of the sources pointed to Isabelle Loc, who succeeded Berard as head of the French retail division, and has quickly risen through the ranks. BNP Paribas has historically picked its CEOs within its ranks and Bonnafe had been groomed to succeed his predecessor, Baudouin Prot. Of course, companies' succession plans are typically closely guarded secrets and the lender could surprise with plans it has not yet shared. BNP Paribas announced at the start of the week that its chief operating officer, Laurent David, was leaving and would be replaced by Philippe Maillard, who holds a similar role in its investment banking division. The bank did not say why David was leaving. Reuters could not ascertain if this personnel change addresses succession planning. European banks have seen profits rise as interest rates jumped in 2022 and 2023, giving lenders bigger margins on loans and bolstering their shares. Still, BNP shares have gained 11% in the past two years, compared with a 50% gain in the STOXX Europe 600 Bank Index, and the bank's valuation lags that of some of its peers. BNP trades at about 0.6 times its book value, while HSBC shares value the lender at the same level as its book value and Barclays trades at 0.6 times. French banks' stock prices have been impacted by political uncertainty as the country struggles to reduce its lingering deficit. Analysts have noted that the political instability has led to increased borrowing costs and potential challenges in implementing fiscal reforms, affecting the financial sector. ($1 = 0.9607 euros)
