Baudouin Prot Bnp Paribas
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Transcript of Baudouin Prot Bnp Paribas
30th Efma Convention: L d hi i t il fiLeadership in retail finance
13 p.m. & 14 March 2008 - Paris
Baudouin ProtChief Executive OfficerBNP Paribas
BNP Paribas Retail Strategy 1
BNP Paribas
BNP ParibasBNP Paribas
Retail Strategy in Mature Retail Strategy in Mature & Emerging countries& Emerging countries& Emerging countries& Emerging countries
Baudouin Prot
2
March, 14th 2008
The importance of retail banking & SFS in BNP Paribas’ universal bank offering
Driving organic growth through customers centricitythrough customers centricity
Comparing value creation strategies in mature & emerging marketsin mature & emerging markets
3
Retail banking & SFS The highest revenue pool from 2005 to 2015
Estimated revenue pool from 2005 to 2015 (constant $Bn)
195US
47Rest of EMEA
33China
21
Rest of APAC
30
Rest of Americas
12Europe Top5
27Japan
23AMSCAGR4,3%
340
US82
China62
Rest of APAC
47
Rest of Americas
30
Europe Top546
Rest of EMEA
41Japan
23CIBCAGR4 1%
375
US98
Europe Top5
47Japan
44China
45Rest of APAC
62
Rest of Americas
24Rest of EMEA
56
Retail
& SFS
4,1%
CAGR
Source : BCG Total = 910EMEA = Europe, Middle East & Africa
0% 20% 40% 60% 80% 100%
CAGR3,1%
Retail: 1st contributor to revenue growth with more than 40% of the revenue pool
Total 910
BNP Paribas Retail Strategy 4
Emerging markets : 45% of revenue pool growth
Retail banking & SFS: a major business in BNP Paribas’ universal bank offering
Retail banking in 2007: 55% of group revenues
R t il b ki t kR t il b ki t k S i li d Fi i l S iS i li d Fi i l S i
Emerging USAIt lF
Retail banking networksRetail banking networks
Equipment Personal
Specialised Financial ServicesSpecialised Financial Services
g gmarketsUSAItalyFrance q p
SolutionsFinance
1705 branches4 mn customersNBI 2006 : € 1 Bn
740 branches4 mn customersNBI 07 : € 2 Bn
730 branches3 mn customersNBI 07 : € 2,6 Bn
2 230 branches6 mn customersNBI 07: € 5,7 Bn
• Cetelem #1 in continental Europe
• UCB #3 in France
• #2 in Europe in business equipment financing
• Top 3 in Europe in leasingleasing
• # 1 in France in leasing
BNP Paribas Retail Strategy 5
A complete set-up to leverage product factories and distribution platforms
2007 results: Robust growth and market outperformance
French Retail Banking :Strong sales and marketing drive: record number of customers wonStrong sales and marketing drive: record number of customers won (230,000)and sustained growth in volumesDespite a difficult market environment, revenue growth outperforming the market, with a 1.1 pt positive jaws effect
BNL bc: 20072006
Revenues (€m)
BNL bc:Integration ahead of schedule
Robust revenue growth thanks to enhanced commercial efficiency
Strong improvement of the cost/Income ratio: from 70,6% to 66,2%
+4.4%
+7.9%2007
5,671 5,919
7,3747,955
g p , ,over one year
IFRS :Continued to pursue sustained business development in
i k t
+6.5%,
2,473 2,634
emerging marketsWon 1.5 million new customers in 2007 in the retail banking networksOpened 189 branches in 2007 Acquired in 2007 Sahara Bank in Libya and consumer lending companies in Brazil and Bulgaria FRB* BNL bc** IRFS
BancWest: good sales and marketing drive despite the downturnConsumer Finance: Growth in outstandings: +17%/2006
Equipment solutions: Good operating momentum*Including 100% of French Private Banking and excluding PEL/CEL effects (+4.1% at
BNP Paribas Retail Strategy 6
Equipment solutions: Good operating momentum g (constant scope)**2006 full year pro forma; including 100% of Italian Private Banking
The importance of retail banking & SFS e po ta ce o eta ba g & S Sin BNP Paribas’ universal bank offering
Driving organic growth through customers centricitythrough customers centricity
Comparing value creation strategies in mature & emerging marketsin mature & emerging markets
7
Our priority: Organic Growthwith 4 key levers
Convergence for Growth
Best-in-class Offers
Extended distribution Cross-selling
g
Customer satisfactionOffers
• Develop /improve our • Maintain our • Sell branch banking
channelssatisfaction
• Systematic p pexisting networks competitive
advantage in our businesses
gservices to SFS customers
measurement
• Develop alternative networks
• Develop state of the art Industrial platforms
• Increase revenue per customer
• Anticipate customer needs
Share Platforms and Best Practices Share Customers knowledge
BNP Paribas Retail Strategy 8
Customer Satisfactionat the heart of BNP Paribas strategy and organisation
St t f th t d t
BNP Paribas recognized know-how: anticipate customer needs
InnovationPartnerships
State-of-the-art products and services offer
Customer satisfaction
Innovation
Efficient processes Multichannel distribution
Partnerships
Efficient CRM & Marketing
A few examples of 2007 initiatives:BDMV2: enhancement of the multichannel offer (NetEpargne, NetImmo…)Roll-out of Lean Six sigma
Customer centricity,
gMobile banking: partnership with Orange
BNP Paribas Retail Strategy 9
Customer centricity, a Key Success Factor for BNP Paribas
The importance of retail banking & SFS in BNP Paribas’ universal bank offering
Driving organic growth through customers centricitythrough customers centricity
Comparing value creation strategies in mature & emerging marketsin mature & emerging markets
10
Retail banking & SFS: Differentiated value creation path
2 key Development Paths :1. « Branch Banking » Model: build on networks and leverage customer base
What we bring :
2. « Specialists» Model: broad development on a proven platform of Credit products, financial services or Savings products
gProducts and sales Know-how Management / best practiceRatingB dBrand
What we seek :Access to customer BaseLocal Human ResourcesDeposits
A differentiated roll-out in mature & emerging markets
BNP Paribas Retail Strategy 11
mature & emerging markets
Branch Banking in Mature markets:Implementation of the integrated model
Outperform the market Create value by applying our integrated model
French Retail Banking
Implementation of a new business model
It li t il k t W t US t il k tFrench domestic marketFBR : A model of commercial and
industrial organization
French Retail Banking
BNL bc: A strong potential of growth and restructuring, in a dynamic retail
banking marketBancWest: A significant franchise on
the world biggest market
Italian retail market Western US retail market
Private banking business model
Innovation
Multi-channel C lli
Roll-out of BNPP’s integrated model
« Bear Plan »
Revitalize BancWest network
“Business Centers” modelBe ahead on the internet:
Netepargne, Netcredit Immo
Cross-sellingProduct innovationEfficiency improvement
Retail Banking InitiativeCommercial Banking InitiativeModernization of the branches
Example : Corporate customers
BNPP’s integrated model. Strengthen cross-selling
Accelerate the integration plan F lid i
Strengthen our competitive position
Strengthen the cross selling
Increase # products by customersWith the rest of the group : customers
FRB * {CIB, AMS, IRFS}Future consolidation: opportunism and pragmatism
Maintain commercial outperformance Leverage the commercial
g pCIB: ECEP, syndicationAMS: InsuranceIRFS: Leasing
BNP Paribas Retail Strategy 12
Maintain commercial outperformance, and preserve significant jaws effect
Leverage the commercial momentum Priority to organic growth
Adaptation of our SFS business models
EQUIPMENT SOLUTIONSPERSONAL FINANCE
Grouping of Arval and BPLGShare know-how
Merger of Cetelem and UCBDevelop direct channels and Share know how
Increase international development
pincrease production via internetIncreased exposure to emerging markets
An integrated value creation model
A powerful client acquisition engine leveraging branch networks with specialised finance businesses
A systematic and large scale industrial model
BNP Paribas Retail Strategy 13
A systematic and large-scale industrial model
An absolute prerequisite: Keep on improving our operational efficiency
Rationalization of networks • Centralization of back offices and branches• Lean organization in Front office• More Automation : " more time for sale " • Master plan OAV (FRB)
Process OptimizationReorganization of functions
& Business linesp• Roll out of Lean 6 sygma / ACE• Optimization of procurement • Focus on the real-estate and IT
• Reorganization of functions• Creation of Personal Finance and Equipment Solutions • Optimization of set-ups (one umbrella in Russia, one single Treasury, Cetelem / Cofinoga)
IT : Constitution of common platformsConstitution of common platforms Sharing of developments
BNP Paribas Retail Strategy 14
Emerging countries: two differentiated approaches to increase group exposure
Mediterranean zone and Eastern EuropeDensification of existing franchises
Development of cross-selling
Brazil - India - ChinaActive growth strategy driven
by a system of sponsoring% f10% of the global revenue pool growth
2006-201020% of the global revenue pool growth
2006-2010
Organic growth strengthened by targeted acquisitions in the Mediterranean zone
d i E t E
Coordinated Strategy and adaptation of the BNP PARIBAS integrated model in l i t iand in Eastern Europe
Open 600 branches by 2010 to bring the total branch network to 2,600Win over 6 million new customers in the retail banking networks by 2010
large emerging countries: " retail light " experiment in Brazil, capitalizing on the presence of Personal FinanceIndustrial Partnerships
BNP Paribas Retail Strategy 15
banking networks by 2010Grow revenues per customer
Coordination of the Group strategy by a sponsor member of the Executive Committee
BNP Paribas targets for Retail Businesses
Estimation of annual evolution of revenues and jaws effect from 2008 to 2010
10%
Revenues Jaws effects
j
6%5%
4%
1%
5%
1%
FRB BNL bc IRFS
Ambitious targets for 2010
BNP Paribas Retail Strategy 16
Conclusion
Priority to organic growth with targeted acquisition policywith targeted acquisition policy
In mature countries, leveraging our integrated business model
Acceleration of growth Acceleration of growth in emerging markets
Focus on operational efficiency to increase jaws effects in all retail businesses
BNP Paribas Retail Strategy 17
to increase jaws effects in all retail businesses