BNP Paribas Fortis, the Belgian subsidiary of the French banking giant, saw net profits fall by 10.9% in the first half of the year to €1.35 billion.
In its half-year financial update, the bank noted that revenues fell by 3.6% compared to 2023, to €5.2 billion. Operating profit fell by 13.3% to €2.02 billion, and management fees grew by 2.9% to €3 billion.
As at the end of June, the bank had €262.3 billion in customer loans on its books (up 6.4% compared to the first half of 2023), and held €209.1 billion in customer deposits (down 0.7%).
BNP Paribas Fortis said that its revenues were negatively impacted, partly by a decrease in customer deposits as many chose instead to invest in Belgian government bonds issued in the third quarter of 2023.
Through the state bond system, the Federal Government raises funds by offering to pay the investor a fixed interest rate (known as a coupon) during the life of the bond, as well as repaying the initial amount invested at the bond maturity date.
Excluding the impact of the government bond, the bank said that deposits on savings, current and term accounts in Belgium are up 1.1% compared to the first half of 2023.
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BNP Paribas Fortis highlighted that "in a very competitive environment" it granted €16.3 billion in new loans to all sectors of the economy. It noted that the current economic environment is "volatile" in a "persistently unsettled geopolitical situation".
"Economic growth picked up slightly but inflation in Belgium is higher than the European average and European and Belgian industry faces multiple challenges. Despite inflation, we were able to limit cost increases," it said.
The bank added that through the successful acquisition and integration of Bpost bank, 600,000 former Bpost bank customers began to make full use of BNP Paribas Fortis products and services in the first half of 2024.
Michael Anseeuw, CEO of BNP Paribas Fortis, said the bank performed well "both commercially and financially, in a volatile and competitive environment".
