BNP Paribas CIB
Encyclopedia
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 $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 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 has a presence on all continents and more than 9,000 experts across CIB's various business areas work with these 13,000 clients.
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 euros ($4.82 billion) for the quarter, up 81 percent from the second quarter of 2008, and following record revenues of 3.696 billion euros in the first quarter of 2009.
In 2009 BNP CIB earned €12.2 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.)
Investment banking
An investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
arm of BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. 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 $3.1 trillion. It was formed through the merger...
, the largest banking group in the world. In October 2010 BNP Paribas
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. 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 $3.1 trillion. It was formed through the merger...
was ranked by Bloomberg
Bloomberg L.P.
Bloomberg L.P. is an American privately held financial software, media, and data company. Bloomberg makes up one third of the $16 billion global financial data market with estimated revenue of $6.9 billion. Bloomberg L.P...
and Forbes
Forbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
as the largest bank and largest company in the world by assets with over $3.1 trillion. BNP Paribas CIB's main centres are in Paris
Paris
Paris is the capital and largest city in France, situated on the river Seine, in northern France, at the heart of the Île-de-France region...
and London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, with large scale operations in New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
and Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
as well smaller operations in almost every financial centre in the world. It employs 21,000 people across 56 countries and provides financing
Corporate finance
Corporate finance is the area of finance dealing with monetary decisions that business enterprises make and the tools and analysis used to make these decisions. The primary goal of corporate finance is to maximize shareholder value while managing the firm's financial risks...
, 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
Structured finance
Structured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid lawsStructured finance is a broad term used to describe a sector of finance that was created to help transfer risk and avoid laws...
. BNP Paribas CIB also has large corporate advisory network in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and Asia
Asia
Asia is the world's largest and most populous continent, located primarily in the eastern and northern hemispheres. It covers 8.7% of the Earth's total surface area and with approximately 3.879 billion people, it hosts 60% of the world's current human population...
. BNP Paribas CIB has 13,000 clients, consisting of companies, financial institutions, governments, investment funds and hedge funds. BNP Paribas CIB has a presence on all continents and more than 9,000 experts across CIB's various business areas work with these 13,000 clients.
BNP Paribas CIB benefits from the Group
BNP Paribas
BNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. 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 $3.1 trillion. It was formed through the merger...
'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 euros ($4.82 billion) for the quarter, up 81 percent from the second quarter of 2008, and following record revenues of 3.696 billion euros 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 rateInterest rate riskInterest rate risk is the risk borne by an interest-bearing asset, such as a loan or a bond, due to variability of interest rates. In general, as rates rise, the price of a fixed rate bond will fall, and vice versa...
, and creditCredit riskCredit risk is an investor's risk of loss arising from a borrower who does not make payments as promised. Such an event is called a default. Other terms for credit risk are default risk and counterparty risk....
risks, primarily though the structuring and sale of derivativeDerivative (finance)A derivative instrument is a contract between two parties that specifies conditions—in particular, dates and the resulting values of the underlying variables—under which payments, or payoffs, are to be made between the parties.Under U.S...
products such as interest rate and foreign exchangeForex swapIn finance, a forex swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates .; see Foreign exchange derivative.-Structure:...
swaps, foreign exchange optionsForeign exchange optionIn finance, a foreign-exchange option is a derivative financial instrument that gives the owner the right but not the obligation to exchange money denominated in one currency into another currency at a pre-agreed exchange rate on a specified date.The FX options market is the deepest, largest and...
and credit derivatives. It also trades in these markets on behalf of clients or for its own proprietaryProprietary tradingProprietary trading occurs when a firm trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with the firm's own money as opposed to its customers' money, so as to make a profit for itself...
account. On an average day, a quarter of a trillion dollars in fixed income instrumentsFixed incomeFixed income refers to any type of investment that is not equity, which obligates the borrower/issuer to make payments on a fixed schedule, even if the number of the payments may be variable....
are traded at BNP Paribas Americas’ fixed income trading floor located just blocks from the NASDAQNASDAQThe NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
MarketSite in ManhattanManhattanManhattan is the oldest and the most densely populated of the five boroughs of New York City. Located primarily on the island of Manhattan at the mouth of the Hudson River, the boundaries of the borough are identical to those of New York County, an original county of the state of New York...
, New York CityNew York CityNew York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
.
- Equity & Derivatives: BNP Paribas' Equity & Derivatives team helps companies manage their risks and investment portfoliosPortfolio (finance)Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual.-Definition:The term portfolio refers to any collection of financial assets such as stocks, bonds and cash...
with equity derivatives such as options, futures, and swapsSwap (finance)In finance, a swap is a derivative in which counterparties exchange certain benefits of one party's financial instrument for those of the other party's financial instrument. The benefits in question depend on the type of financial instruments involved...
, 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 proprietaryProprietary tradingProprietary trading occurs when a firm trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with the firm's own money as opposed to its customers' money, so as to make a profit for itself...
account.
- Commodity Derivatives: BNP Paribas' Commodity Derivatives team helps clients hedge their exposure to commodity riskCommodity riskCommodity risk refers to the uncertainties of future market values and of the size of the future income, caused by the fluctuation in the prices of commodities. These commodities may be grains, metals, gas, electricity etc...
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 proprietaryProprietary tradingProprietary trading occurs when a firm trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with the firm's own money as opposed to its customers' money, so as to make a profit for itself...
account.
- Corporate Finance: BNP Paribas' Corporate Finance team performs most of the traditional investment bankingInvestment bankingAn investment bank is a financial institution that assists individuals, corporations and governments in raising capital by underwriting and/or acting as the client's agent in the issuance of securities...
functions of the group including mergers and acquisitionsMergers and acquisitionsMergers and acquisitions refers to the aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or...
advisory, and equity raising operations such as Initial Public Offerings (IPOs)Initial public offeringAn initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...
, rights issueRights issueA rights issue is an issue of additional shares by a company to raise capital under a seasoned equity offering. The rights issue is a special form of shelf offering or shelf registration. With the issued rights, existing shareholders have the privilege to buy a specified number of new shares from...
s, and convertible bond issues.
- Structured Finance: BNP Paribas' Structured Finance group offers clients project financeProject financeProject finance is the long term financing of infrastructure and industrial projects based upon the projected cash flows of the project rather than the balance sheets of the project sponsors...
solutions, export financingTrade financeTrade finance is related to international trade.While a seller can require the purchaser to prepay for goods shipped, the purchaser may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support...
, syndicated loanSyndicated loanA syndicated loan is one that is provided by a group of lenders and is structured, arranged, and administered by one or several commercial banks or investment banks known as arrangers....
s, and financing for acquisitions and leveraged buyouts.
- Corporate & Transaction Group: BNP Paribas' Corporate and Transaction group offers clients simplified flow banking services including trade financeTrade financeTrade finance is related to international trade.While a seller can require the purchaser to prepay for goods shipped, the purchaser may wish to reduce risk by requiring the seller to document the goods that have been shipped. Banks may assist by providing various forms of support...
, international cash managementCash managementIn United States banking, cash management, or treasury management, is a marketing term for certain services offered primarily to larger business customers...
, and basic hedgingHedge (finance)A hedge is an investment position intended to offset potential losses that may be incurred by a companion investment.A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, many types of...
solutions.
In 2009 BNP CIB earned €12.2 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.)
Business
- Boris Adlam - British financier
- Nassim TalebNassim TalebNassim Nicholas Taleb is a Lebanese American essayist whose work focuses on problems of randomness and probability. His 2007 book The Black Swan was described in a review by Sunday Times as one of the twelve most influential books since World War II....
- Practitioner of financial mathematicsMathematical financeMathematical finance is a field of applied mathematics, concerned with financial markets. The subject has a close relationship with the discipline of financial economics, which is concerned with much of the underlying theory. Generally, mathematical finance will derive and extend the mathematical...
, Author of The Black Swan, Dynamic HedgingDynamic HedgingNassim Nicholas Taleb authored the book Dynamic Hedging: Managing Vanilla and Exotic Options about the risk properties of commonly traded products in finance and those products with more complex features . In 1996, John Wiley & Sons published the book. He mostly focused on off-model risks and the...
and Fooled by RandomnessFooled by RandomnessFooled by Randomness: The Hidden Role of Chance in Life and in the Markets is a book written by Nassim Nicholas Taleb about the fallibility of human knowledge.-Reaction:The book was selected by Fortune as one of the 75 "Smartest Books of All Time."...
and former BNP ParibasBNP ParibasBNP Paribas S.A. is a global banking group, headquartered in Paris, with its second global headquarters in London. 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 $3.1 trillion. It was formed through the merger...
prop traderProprietary tradingProprietary trading occurs when a firm trades stocks, bonds, currencies, commodities, their derivatives, or other financial instruments, with the firm's own money as opposed to its customers' money, so as to make a profit for itself...
in New YorkNew YorkNew York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
.
Politics and public service
- Louis Alphonse of Bourbon, Duke of AnjouLouis Alphonse, Duke of AnjouPrince Louis Alphonse of Bourbon, Duke of Anjou was not originally among his given names ; born 25 April 1974, Madrid) is a member of the historically royal dynasty of the House of Bourbon, and one of the current pretenders to the defunct crown of France...
- considered by royalists as the head of the French Royal House. - Jacques de LarosièreJacques de LarosièreJacques de Larosière de Champfeu is a French civil servant. He is the Chairman of the Strategic Committee of the French Treasury and Advisor to BNP Paribas, became President of the London-based European Bank for Reconstruction and Development in September 1993 in the wake of the scandals that led...
- managing director of the International Monetary Fund (1978–87); Governor of the Banque de France (1987–93) - Lorenz of Habsburg, Archduke of Austria-Este
Other
- David McWilliamsDavid McWilliamsDavid McWilliams is an Irish journalist and economist. McWilliams has worked with as an economist with Central Bank of Ireland and as a banker with UBS bank and the Banque Nationale de Paris...
- economist - Georges Chodron de Courcel - Managing Director, from the family of Mrs. Bernadette ChiracBernadette ChiracBernadette Thérèse Marie Chirac is a French politician and the wife of the former President Jacques Chirac....
- Edmond Turquieh - founder of Sapiance Capital Ltd
See also
- List of French companies
- List of banks
- Primary dealersPrimary dealersPrimary dealer is a formal designation of a firm as a market maker of government securities. Primary dealer systems are present in many countries including Canada, France, Italy, Spain, the United Kingdom, and the United States...
- European Financial Services RoundtableEuropean Financial Services RoundtableThe European Financial Services Roundtable is a European organization, located in Brussels, Belgium, of financial service companies to provide a voice on policies of the European Union related to financial matters...