Latest news with #LivretA
Reuters
24-07-2025
- Business
- Reuters
BNP Paribas sees strong retail recovery, cushions profit fall
PARIS, July 24 (Reuters) - France's BNP Paribas forecast a strong rebound in its retail banking division for the second half of the year, soothing investor concerns on Thursday with tight cost control and a smaller-than-expected drop in quarterly profit. The euro zone's biggest bank by assets said it expected second-half revenue to rise more than 5% from a year earlier, fuelled by prolonged strict cost control and stronger sales in its retail and consumer businesses. The upbeat outlook helped overshadow a mixed quarter for BNP, as its investment bank lagged Wall Street rivals. BNP shares rose 2% in early Paris trading, outpacing France's blue-chip CAC 40 index (.FCHI), opens new tab. Deutsche Bank and other European lenders also reported second-quarter results on Thursday, with the German bank beating expectations. While the economic outlook remains uncertain, banks so far are not expecting a major hit from the latest wave of U.S. trade tariffs. BNP's net income in the April-to-June period fell 4% from a year earlier to 3.26 billion euros ($3.8 billion), slightly above analyst forecasts. Revenue rose 2.5% to 12.6 billion euros, in line with expectations, while provisions for bad loans matched estimates. At its investment bank, fixed income, currency and commodity trading revenues jumped 27%, lifted by market volatility due to U.S. President Donald Trump's tariff policies, but equity trading slumped and pre-tax income from global banking declined. Overall, investment banking revenue rose 4% from a year earlier. Several analysts welcomed the bank's lower-than-expected costs and the rebound in its retail operations. "Revenue performance in European retail was a standout and sets up well for H2 '25 acceleration," Jefferies analysts said in a note. "Elsewhere, the group exhibited strong cost control." CEO Bonnafe, whose tenure was extended in May, has made the investment bank a key part of his efforts to boost BNP's profits, while also cutting costs and bulking up in asset management with the recent acquisition of AXA Investment Managers. The bank's shares have underperformed rivals, however, and even this year's 22% gain lags the wider European banking sector (.SX7P), opens new tab, with investors cautious about BNP's relative growth prospects. BNP said its average tax rate for the quarter was nearly six percentage points higher than a year ago, following changes to U.S. tax rules on financing expenses. That weighed on net earnings, with pre-tax income up 3.1%. Earnings from BNP's insurance operations rose sharply, driven by solid operating income and a one-off gain related to a financial stake in China. BNP's retail and consumer division saw a 4.3% rise in net interest income in France. Analysts expect further improvement following a recent cut in the regulated rate on the country's popular Livret A savings account, which offers room for margin expansion. French banks typically lag their Spanish and Italian peers in benefiting from higher interest rates, as 96% of French mortgages are on a fixed rate. BNP announced an interim dividend of 2.59 euros per share, to be paid on September 30. It also said it expected to surpass 12.2 billion euros in net income this year, in line with its 2024-2026 targets. ($1 = 0.8503 euros)
Bloomberg
16-07-2025
- Business
- Bloomberg
Bank of France Recommends Cutting Regulated Savings Rate to 1.7%
France is set to cut the rate on its popular regulated savings products, following a recommendation from the central bank. The return on so-called Livret A and LDDS accounts should be lowered next month to 1.7% from 2.4%, Bank of France Governor Francois Villeroy de Galhau said in a statement on Wednesday.
RTÉ News
10-07-2025
- Business
- RTÉ News
Proposal for state-backed savings scheme for social and affordable housing
The Social Democrats have published proposals for a state-backed savings scheme which would provide funding for social and affordable housing. The savings scheme is along the lines of a French scheme, called the Livret A, which has been in operation for decades and is consistently among the most popular savings products. The party's housing spokesperson, Rory Hearne TD, rejected suggestions it was along the lines of the Celtic Tiger-era SSIA savings scheme, stating that money was not ringfenced for anything. Deputy Hearne said the party's Homes for Ireland savings scheme could provide a real solution for the housing crisis that would give people hope that the "housing disaster" was solvable. The TD for Dublin North-West said the current housing situation was "a social catastrophe and the biggest issue facing our country". "We're saying to young people, the housing crisis does not have to go on, new policies can solve the issue," he said. Deputy Hearne said such a savings scheme could channel some of the €163bn currently on deposit in Irish banks. Increase to social and affordable homes He said the funds would then be channelled through agencies like Home Building Finance Ireland or the Housing Finance Agency who would then provide favourable finance rates to local authorities and Approved Housing Bodies to build social and affordable housing. Deputy Hearne said this would not provide "more shoebox apartments by funds", but rather much-needed social and affordable homes. He pointed out that in France, some €19bn was provided for social and affordable housing in 2020. He said if Irish savers amassed €1.5 - €2bn in deposits, this could be used to fund between 6,000 and 7,000 units per year. The TD said the Government repeatedly claimed that the Opposition was not providing ideas to solve the housing crisis, and said "here's a solution". Also speaking at the event was Professor of Social Policy in UCD, Michelle Norris who sat on the Housing Commission. Professor Norris said the Commission had recommended that the level of social and cost-rental housing needs to be doubled – so around 20% of the population are living in the sector. She said while a lot of public money was currently being spent on social housing, this was not matched by the building of social housing. Housing waiting lists She said people were spending years on social housing waiting lists, and there needed to be measures to promote counter-cyclical investment in housing, meaning that housing could still be built during an economic downturn. She said the scheme in France had provided a stable, low cost source of finance for social housing providers. "France has managed to double its supply of social housing to the levels of supply the [Housing] commission recommended for Ireland to about 22% of the population," Prof Norris added. She said the Livret A scheme provides a really stable source of funding so the sector is not entirely dependent on government, and said it was suitable for the Irish context. Professor Norris said the Housing Commission recommended in its report that the scheme should be underpinned by legislation, a Social Housing Act, to guard against privatisation.
Euronews
12-03-2025
- Business
- Euronews
Macron's defence spending plan drives open political divisions in France
The French president warned of tough budget decisions ahead as the country struggles with a daunting public deficit. ADVERTISEMENT French President Emmanuel Macron is spearheading an accelerating effort to reshape European security. He is taking the initiative just as the European Commission agrees on an €800bn plan to bolster European defence sovereignty in response to the rapprochement between Russia and the US, as well as US President Donald Trump's increasing scorn towards both Ukraine and NATO. But as France's debate over military spending intensifies, political divisions mean the chances of finding consensus are increasingly slim. France currently allocates 2% of its GDP to its defence sector. Macron told French newspaper Le Figaro that he aims to raise defence spending up to 3.5% of the country's GDP, a hike that would require an additional €30bn annually. Such a drastic increase would be a major challenge given the state of France's strained public finances. Macron's ambition clashes with the government's current goal of lowering France's budget deficit to 5.4% of its GDP by the end of 2025, down from around 6% in 2024. One proposal under discussion to finance France's increased military spending is a national loan, a measure last used to reduce state debt in 1993. Prime Minister François Bayrou and Economy Minister Eric Lombard have floated the idea and also proposed setting up a defence-specific account similar to the Livret A — a regulated, tax-exempt personal savings account with an interest rate set by the state, with funds invested by the state to pay for infrastructure and housing, national debt payments and other uses. Lombard has also proposed seeking investment from banks, insurance firms, and institutional investors. What do the French think? 'I think that in the current situation, France can hardly afford to increase its public debt,' Sylvain Bersinger, chief economist at consulting firm Asteres, told Euronews. "Another solution is to try and increase growth and therefore resources and tax revenues. Typically, this means getting the French to work more by increasing the pension age. But that's so unpopular that I don't think it's even possible. I'd say there's no magic solution." Yet despite economic concerns, public support for increased defence spending remains high. A recent survey conducted by Ipsos-Cesi Engineering School showed that 68% of the French electorate support the idea. Even 66% of voters supporting the hard-left party France Unbowed (LFI), which is usually wary of any military intervention, said they support the budget increase. As for supporters of the far-right party National Rally (RN), a little more than half said they are in favour of boosting military spending. Where do other parties stand? While most MPs in France's lower house of parliament have expressed their support for Ukraine specifically, political divisions remain. Last week, lawmakers debated France's stance on Ukraine and whether to send peacekeeping troops on the ground. RN leader Marine Le Pen said that while she supports aiding Ukraine, she believes France should prioritise its national interests. ADVERTISEMENT She also rejected a unified European defence strategy and opposed any suggestion of sending French troops to Ukraine. Meanwhile, the Socialist Party and the Greens have aligned themselves with the government, agreeing that Europe must strengthen its military sovereignty. Socialist leader Olivier Faure said he was against any measures that would place the burden on French citizens. Instead, he has proposed taxing corporations and cracking down on EU countries that serve as tax havens for big tech, in particular Ireland and Luxembourg. LFI MP Alma Dufour, meanwhile, has raised concerns that increased military spending will ultimately benefit the US defence industry. ADVERTISEMENT 'We're not against France and Europe rearming," she said in an interview with broadcaster Franceinfo. "The question is that if we spend €40bn this year on military equipment, where will that go? To the United States." On Monday, a report by the Stockholm International Peace Research Institute showed that 64% of Europe's arms imports come from the US, followed by France, South Korea, Germany and Israel. Dufour has proposed an increased tax on billionaires, claiming that a 2% tax on France's 500 richest individuals could generate €25bn — putting France well on the way to achieving Macron's military spending ambitions.
Saudi Gazette
11-03-2025
- Business
- Saudi Gazette
Macron's defense spending plan drives open political divisions in France
PARIS — French President Emmanuel Macron is spearheading an accelerating effort to reshape European security. He is taking the initiative just as the European Commission agrees on an €800bn plan to bolster European defense sovereignty in response to the rapprochement between Russia and the US, as well as US President Donald Trump's increasing scorn towards both Ukraine and NATO. But as France's debate over military spending intensifies, political divisions mean the chances of finding consensus are increasingly slim. France currently allocates 2% of its GDP to its defence sector. Macron told French newspaper Le Figaro that he aims to raise defense spending up to 3.5% of the country's GDP, a hike that would require an additional €30bn annually. Such a drastic increase would be a major challenge given the state of France's strained public finances. Macron's ambition clashes with the government's current goal of lowering France's budget deficit to 5.4% of its GDP by the end of 2025, down from around 6% in 2024. A contentious bill Macron has put forward aims to cut €30bn from public spending and raise taxes by €20bn to curb the deficit. The question in front of the government is how to do it. One proposal under discussion is a national loan, a measure last used to reduce state debt in 1993. Prime Minister François Bayrou and Economy Minister Eric Lombard have floated the idea and also proposed setting up a defense-specific account similar to the Livret A — a regulated, tax-exempt personal savings account with an interest rate set by the state, with funds invested by the state to pay for infrastructure and housing, national debt payments and other uses. Lombard has also proposed seeking investment from banks, insurance firms, and institutional investors. 'I think that in the current situation, France can hardly afford to increase its public debt,' Sylvain Bersinger, chief economist at consulting firm Asteres, told Euronews. "Another solution is to try and increase growth and therefore resources and tax revenues. Typically, this means getting the French to work more by increasing the pension age. But that's so unpopular that I don't think it's even possible. I'd say there's no magic solution." Yet despite economic concerns, public support for increased defense spending remains high. A recent survey conducted by Ipsos-Cesi Engineering School showed that 68% of the French electorate support the idea. Even 66% of voters supporting the hard-left party France Unbowed (LFI), which is usually wary of any military intervention, said they support the budget increase. And as for supporters of the far-right party National Rally (RN), a little more than half said they are in favor of boosting military spending. While most MPs in France's lower house of parliament have expressed their support for Ukraine specifically, political divisions remain. Last week, lawmakers debated France's stance on Ukraine and whether to send peacekeeping troops on the ground. RN leader Marine Le Pen said that while she supports aiding Ukraine, she believes France should prioritize its national interests. She also rejected a unified European defense strategy and opposed any suggestion of sending French troops to Ukraine. Meanwhile, the Socialist Party and the Greens have aligned themselves with the government, agreeing that Europe must strengthen its military sovereignty. Socialist leader Olivier Faure said he was against any measures that would place the burden on French citizens. Instead, he has proposed taxing corporations and cracking down on EU countries that serve as tax havens for big tech, in particular Ireland and Luxembourg. LFI MP Alma Dufour, meanwhile, has raised concerns that increased military spending will ultimately benefit the US defense industry. 'We're not against France and Europe rearming," she said in an interview with broadcaster Franceinfo. "The question is that if we spend €40bn this year on military equipment, where will that go? To the United States." On Monday, a report by the Stockholm International Peace Research Institute showed that 64% of Europe's arms imports come from the US, followed by France, South Korea, Germany and Israel. Dufour has proposed an increased tax on billionaires, claiming that a 2% tax on France's 500 richest individuals could generate €25bn — putting France well on the way to achieving Macron's military spending ambitions. — Euronews
