Annual Report - BNP Paribas

In 2007, operations were set up in three new countries:
In Russia, the Group began its development in retail banking. Thanks to
major recruitment and training efforts, the Russian subsidiary had nearly
300 employees by the end of 2007. With its current focus on corporate
fi nance, the Bank’s loan volumes are exceeding initial forecasts. The scope
of activity will be broadened in the fi rst part of 2008 through the launch of
operations targeting individuals, professional clients, SMEs and development
outside Moscow.
In Libya, the Group acquired 19% of the capital and operational control of the
Sahara Bank in September, with the option of increasing its stake to 51% in
three to fi ve years. BNP Paribas and Sahara Bank will be developing several
joint programmes, enabling the Bank to take advantage of the rapid expansion
of the Libyan economy and the opening of its market to international
operators. (see box)
In Vietnam, BNP Paribas acquired 10% of the capital of Orient Commercial Bank
(OCB) at the end of December and will be increasing its stake in this retail bank
to 20%. The terms of the agreement provide for the creation of a strategic partnership
to develop the Vietnamese bank’s retail banking and consumer finance
activities.
In all of these countries, the networks support the development of the
Group’s other businesses. The recent partnerships with TEB in Turkey and
UkrSibbank in Ukraine have spearheaded this strategy. Most of the Group’s
businesses are already active in these two countries or are exploring opportunities
to be so.
The Group is equally active in other geographic areas as witnessed by the operation
launches by BNP Paribas Lease Group within BNP Paribas El Djazaïr in
Algeria and the extension to Egypt of the partnership with International Private
Banking. Collaboration with CIB’s businesses is being developed in all operating
territories with regard to export and commodity fi nancing and distribution
of market products through the networks (particularly in the Gulf countries).
Cooperation with BNL was stepped up with the creation of Italian desks in
Algeria, Tunisia and Turkey as well as Dubai for the Gulf region. Their services
will enable the Bank to support the development of Italian companies in these
countries.
The Group’s fi rst
advances in Libya
Libya, one of the world’s
largest producers of oil
and gas, is gradually
opening up its markets
and has undertaken
far-reaching economic
reforms (liberalisation of
several business sectors,
privatisation of the
public sector and major
investments, particularly
in infrastructures). Growth
prospects are therefore
highly favourable.
As part of the restructuring
and privatisation of the
banking sector, BNP Paribas
was chosen by the local
authorities as Sahara Bank’s
strategic partner. The Group
has thus become the fi rst
foreign bank to operate
as a full-service bank in
this country. Tripoli-based
Sahara Bank was
founded in 1964 and
has 1,500 employees.
It is the 2nd-largest bank
in the country in terms of
assets and has a network
of 48 branches in 26 cities.
Its client base consists
of major public companies,
Libyan and foreign
companies and more than
300,000 individual and small
business clients. In terms
of loans and deposits, its
market shares are 17% and
22% respectively.
This partnership reinforces
the Group’s presence in
the Mediterranean basin,
which is one of its priority
development areas and a
region where the Group can
now boast an unrivalled
platform. The partnership
will provide opportunities
for many synergies
with the Group’s various
businesses and entities.
BNP Paribas also opened
a representation offi ce
in Libya in 2007.