The situation at the Swiss branch of the French financial group BNP Paribas does not seem to be improving. After an already significant annual loss of 24,2 million francs in 2023, the results for the first half of 2024 show a loss of 17,1 million francs, according to the Swiss Commercial Gazette (SHAB). The financial blog «Finance Corner» from Geneva was the first to report on these figures.

As finews.com reported last May, the bank, which is one of the largest foreign institutions in Switzerland, is cutting around 100 jobs at its Geneva office. BNP Paribas employs over 1'000 people in Switzerland. Back in 2019, there was already a significant round of layoffs, when around 250 positions were cut, as finews.com also reported.

Major challenges for the new CEO

Enna Pariset, CEO of BNP Paribas Suisse (Image: BNP)

The bank has been operating in Switzerland for more than 150 years and contributed to the early industrialization of the country by financing the Gotthard and Simplon railways. The company has been led by Enna Pariset for just over a year, as finews.com also reported.

Compared to June 30, 2023, operating income for the first six months of the current year fell by 7,5 procent to 193,0 million francs. This decline is primarily due to a decrease in interest income by 36,7 million francs, which could not be offset by higher revenues from service and commission income (+4,0 million francs), trading income (+8,9 million francs), and other ordinary income (+8,0 million francs).

Significant provisions for social plan

On the expense side, the bank recorded a decrease of 2,1 procent. The reduction in personnel expenses (-8,6 million francs), enabled by the previously announced layoffs, compensated for the increase in operating expenses (+4,6 million francs).

Due to the substantial provisions (-14,3 million francs), the operating result was a loss of 14,9 million francs, compared to a notable profit of 11,9 million francs in the previous year. These provisions are likely related to the social plan announced last spring, which is tied to the aforementioned job cuts.

From a profit to a loss

After extraordinary income and taxes, BNP Paribas Switzerland posted a half-year loss of 17.1 million Swiss francs as of the end of June 2024, compared to a half-year profit of 10,0 million francs in the same period the previous year.