History of the Company
BNP Paribas, a bank with headquarters in Paris and London, was created in 2000 by a merger of Banque Nationale de Paris (BNP) and Paribas, making it the fourth biggest bank worldwide by assets and the largest bank in the Eurozone.
After World War II, the French Minister of Finance started a major reorganization of the banks. In 1946, the four biggest French banks were nationalized, and in 1966, the government merged two of the leading banks to create Banque Nationale de Paris (BNP). BNP was privatized again in 1993 under the Chirac government.
BNP and Paribas merged in May 2000. On August 9, 2007, at the beginning of the subprime mortgage crisis, BNP Paribas was the first bank to realize the impact of the crisis and closed two funds that were exposed. Its quick reaction saved the bank from the major losses that other European banks suffered. In fact, the company posted profits for 2008 during the height of the crisis.
Trading BNP Paribas: What You Need to Know
- BNP Paribas’ largest division is its retail banking unit, concentrated in Europe (France, Italy, Luxembourg, and Belgium specifically). It also owns BancWest, which operates in the Western U.S. and Hawaii. BNP Paribas has a presence in over 80 countries and it participates in the Global ATM Alliance that allows customers of several international banks to use its card within the alliance without surcharges. In addition to the retail division, the bank also has a Corporate and Investment Banking unit.
- BNP Paribas was named Bank of the Year in 2012 by the International Financing Review.
- Annual and quarterly earnings reports provide valuable insights into a company’s potential growth rate. Traders must keep a careful watch on the news for any events that may affect stock prices.
- After the bank escaped the brunt of the credit crisis in 2008, it focused on restructuring its business to adapt to stricter regulations. BNP Paribas has an A+ debt rating and expects huge revenue growth.
BNP Paribas, due to its successful navigation of the subprime mortgage crisis and subsequent restructuring, is on track for growth. Traders interested in BNP Paribas must perform a careful analysis of the bank before trading.Trade BNP Paribas