BNP Paribas and Societe Generale both reported a year-on-year rise in securities services revenues in the first quarter which were in contrast to the banks’ overall results.
Shares in both banks dropped on the morning of 4 May following the release of their results.
BNP Paribas’ overall revenues across the business were down 4.4% year-on-year, while Soc Gen’s fell 2.5%.
In securities services however, both custodians saw rises in revenues and assets under custody.
BNP Paribas’ securities services revenues rose 5.7% to €505 million, while Soc Gen reported a 9.2% increase to €178 million.
A series of mandates wins saw BNP Paribas up its assets under custody during the quarter, headlined by the closing of its $130 billion custody deal with Janus Henderson’s US mutual funds, and the outsourcing mandate with Spanish insurance provider MAPFRE Inversión for its €60 billion of assets.
The biggest move from Societe Generale Securities Services of late has been its move to combine its front-, middle- and back-office services into one combined outsourcing service named CrossWire.
“The results posted by the Societe Generale Group for Q1 2018 and at the start of the implementation of the 2018-2020 ‘Transform to Grow’ strategic plan are generally in line with our strategic ambitions,” said Fréderic Oudéa, Societe Generale Group’s CEO.
“With a renewed General Management team, the Group is more confident than ever of its ability to successfully implement all the current transformation projects and meet its strategic and financial objectives.”