BNP Paribas’ Securities Services business line saw revenues increase 17.5% to €924m over the company’s second quarter, as assets under custody and administration rose 3.5% to €18.3trn compared to the same quarter the previous year.
Operating expenses in securities services decreased to €578m, helping trim 0.8 points off the cost/income ratio.
Transaction volumes increased 15.9% against the same quarter in the previous year. BNP Paribas Securities Services says it benefitted from “market levels and volatility, higher levels of deposits and improved margins”.
The revenue gains came across core fees, net interest income, hedging and FX. The pace of client onboarding also continued to ramp up. Private markets influenced the outcome: the company reported “new mandates in all segments and geographies, with particularly strong traction in private capital”.
Examples put forward of key gains in the period include being selected by BCC Risparmio & Previdenza to provide depositary bank services for the Aureo pension fund and for its range of Ucits funds; and extension of a partnership with Athora Netherlands, which is active in life insurance and pension solutions.
On the technology front, the business contributed to the development of Depository Trust Company’s (DTC’s) tokenisation service, an industry initiative led by DTCC, alongside 50 financial industry firms; and it reported that alongside Caceis, it entered into exclusive negotiations with Euroclear to sell Uptevia – the corporate trust services business that is equally owned by BNP Paribas and Caceis.
