BNP Paribas to cut costs in investment banking: Les Echos

[PARIS] French bank BNP Paribas is targeting a return on notional equity (RONE) at its investment banking business of 20 per cent in 2019, up from 16 per cent now, Les Echos newspaper reported on its website on Thursday.

To achieve this goal, France's biggest listed bank plans to increase revenue by 7 per cent and cut costs by 20 per cent, the paper reported, citing union sources who spoke of a strategy briefing given by the bank on Tuesday.

A BNP spokeswoman had no immediate comment.

BNP is reviewing its global markets business in London in an attempt to cut costs and improve its profitability, a person familiar with the matter said two weeks ago. The review will assess the bank's cost base and how to optimise resources and increase revenue, the person said.

Many banks are cutting jobs and reducing parts of their investment banking operations as profitability has been squeezed by tougher regulations.

BNP launched a reorganisation of its corporate and institutional banking business in November, folding securities services into the division and bringing equities and fixed-income activities closer together.

REUTERS