Latest news with #Jean-LaurentBonnafe
Yahoo
17 hours 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
Business Times
4 days ago
- Business
- Business Times
BNP to cut 200 branches by end of 2026 to kick off retail revamp
[PARIS] BNP Paribas chief executive officer Jean-Laurent Bonnafe plans to cut hundreds of domestic retail branches in an effort to lift profitability at a business that has struggled for years. In a first step, the French lender plans to close around 80 branches this year and another 120 next, according to people familiar with the matter. Headcount in the branch network is expected to decline by 5 per cent a year, while staff would be added in online and phone banking. Negotiations with labour unions, which were first informed of the strategy for the business in March, are set to continue in the coming days, the people said, asking not to be identified because the information is private. Affected employees will be offered new roles, and BNP Paribas is also counting on natural attrition to avoid layoffs, according to the people. '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,' a spokesperson for BNP Paribas said in an emailed statement. 'Every employee of the bank has their place in this project.' Fixing the unit is a key focus for Bonnafe, after he built up the trading business and propelled the asset management arm into the top ranks with the takeover of Axa's investment arm agreed last year. BNP Paribas last year named Isabelle Loc to run the business, which has struggled as local regulations, costly interest rate hedges and the European Central Bank's decision to no longer remunerate mandatory reserves weighed on earnings. The unit is now 'at a pivotal point,' chief financial officer Lars Machenil said in an interview in February. The 'headwinds are basically behind us.' Loc took over the business after its former head, Marguerite Berard, left BNP Paribas last year and went on to run Dutch lender ABN Amro Bank. She is counting on the digital unit Hello bank! as well as its private banking assets in France to grow the business. BNP currently has around 1,500 branches in France. Under Loc's plan, some of the business in the branches will be transferred to remote customers centres, where employees will be offered new jobs, the people said. Others may be offered positions in areas such as private banking, they said. BNP said previously that it will unveil its plan for the business at the end of June. French newspaper Les Echos has reported that about 500 branches may be cut in total by 2030. BLOOMBERG
Mint
28-04-2025
- Business
- Mint
Most Banks Want EU to Delay Trading Book Rules, Industry Poll Says
(Bloomberg) -- A majority of banks want the EU to postpone the adoption of new trading book rules, a survey shows, heaping pressure on the bloc to follow similar moves in the US and the UK. A 'clear majority' of participants in a survey were in favor of 'an additional one-year delay' to changing a set of rules known as Fundamental Review of the Trading Book, two influential lobby organizations said in a written response to an EU consultation. Europe's plan to implement the FRTB changes was derailed after the US failed to agree on its own version of a wider set of capital rules known as Basel Endgame. The EU Commission has already pushed back FRTB implementation to 2026 to avoid putting the bloc's lenders at a disadvantage to their global competitors. But many EU banks are demanding yet another delay saying that the previous postponement hasn't been enough. The topic has pitted Europe's largest banks, who support the fresh postponement, against smaller ones, who say it would cost them money. 'A minority of the respondents' were in favor of sticking with the current implementation plan 'to avoid continued operational complexities,' the two lobby organizations — the Institute of International Finance and the International Swaps & Derivatives Association — said in their consultation response. The IIF and ISDA polled 32 global banks on the topic, with 21 of them favoring another delay. Previous reports suggested as few as four or five banks, led by BNP Paribas SA, Deutsche Bank AG and Intesa Sanpaolo SpA, were pushing for postponement. A separate submission from the European Banking Federation also pressed the EU to consider reforms to dilute the capital impact of the changes and to consider allowing some banks to implement in 2026 while others hold off until 2027. The Commission has already spoken out against that idea. 'Probably now the idea to implement the FRTB will be in a way that is much more neutral than the current approach,' BNP Paribas Chief Executive Officer Jean-Laurent Bonnafe said during an earnings call earlier this week when asked about the matter. 'It could start with another delay of implementation, and then be followed by a change in approach.' Originally slated for implementation from 2022, the final package of Basel rules has been beset by delays. The EU introduced most of it earlier this year, but opted to postpone the trading book elements pending clarity on the US plans. The UK has announced three delays to the entire package, while the US timeline remains unclear as a new slate of regulators assumes office. The Swiss have implemented in full, as have the Canadians and Japanese. --With assistance from Claudia Cohen and Nicholas Comfort. More stories like this are available on First Published: 28 Apr 2025, 02:10 PM IST
Bloomberg
07-03-2025
- Business
- Bloomberg
BNP Paribas Moves to Pave Way for CEO Bonnafe to Stay Until 2028
BNP Paribas SA is seeking to extend the board mandate of its chief executive officer and raise the age limit for the role, moves that would pave the way for Jean-Laurent Bonnafe to extend one of the longest tenures at a large European bank. The French firm will ask shareholders at its annual g
