BNP Paribas Securities Services records 6% boost in revenues for third quarter

BNP Paribas has seen improved revenues for its securities services business, while also experiencing double-digit growth in assets under custody and administration (AUC/A).

Total AUC/A for the third quarter of the year reached over €13 trillion, up 10.2% in comparison to the previous year. Meanwhile revenues for securities services increased 6.4% to €535 million.

The growth of AUC/A was attributed to the migration of $180 billion in assets of Janus Henderson, which was completed in March this year. 

The number of transactions BNP Paribas Securities Services processed also increased by 9.5% to 24.6 million.

During the quarter, the French-headquartered global custodian recorded a number of key mandate wins. These include a ‘landmark’ custody deal with Colombian pension fund Protección S.A. and its foreign portfolio of $7.5 billion in assets, and a global custody services agreement with US Bank representing over $10 billion in assets.

BNP Paribas was also selected as the global custodian for the €8.6 billion Dutch postal pension fund in September.

However, the bank announced it would be cutting 500 jobs across the securities services business in France over the next three years, in a bid to reduce costs and increase competitiveness.

BNP Paribas Securities Services has appeared to withstand the headwinds that have hit its US global custodian competitors, as BNY Mellon, JP Morgan and State Street all recorded a drop in revenues throughout the year.