françois debiesse

Press conference May 11, 2001 - Brussels

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Private Bank

François DEBIESSE


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Private Bank

Source : Merrill Lynch / Gemini Consulting World Wealth Report 2000

(estimated world-wide HNW financial assets, in USD trillion)

44.9

25.521.6

19.1

1997 1998 1999 2004(E)

+12%p.a.

Increasing share of financial assets in the households’ wealth

Boom in entrepreneurial wealth

Growing use of corporate equity as part of executive compensation

Overall market appreciation

TREMENDOUS MARKET OPPORTUNITY


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Private Bank

STILL FRAGMENTED INDUSTRY(Top ten private banks world-wide as of end of 2000)

EUR 2.3 trillion in AuM

~ 8% market share

Top 10 Private Banks

BNP Paribas PB

HSBC

Bank of America PB

Merrill Lynch IPC

Citigroup PB

Deutsche Bank

J.P. Morgan PB

UBS PB 448

351

318

291

210

163

153

140

122

104

Credit Suisse PB

Goldman Sachs PWM


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Private Bank

INCREASING COMPETITION

Merger of HNW Brokerage and Asset Management Groups to form Goldman Sachs Private Wealth Management

Fortis to pursue its business development in Continental EuropeBank of America targeting private

banking as a priority business

Launch of NatWest Private Banking

Deutsche Bank targeting to be in the top 3 private banks world-wideCitigroup Private Bank entering into

cross-selling initiatives with Salomon Smith Barney

ING committed to increase private banking positions through vigorous

organic growth

UBS to lever PaineWebber’s expertise and on-line technology in

the European on-shore markets

Credit Suisse to implement new business model for affluent clients in Europe

Creation of Merrill Lynch Private Wealth Services to deliver institutional-quality solutions to its wealthiest clients and

their families

SG Private Banking targeting to expand its reach in Europe and Asia

Acquisition of US Trust by Schwab

Sanford Bernstein acquired by Alliance Capital (AXA)


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Private Bank

BNP PARIBAS

Merger of BNP and Paribas in May 2000

Rapid integration with synergies ahead of schedule

Strong increase in profitability in recent years with a net profit of:

EUR 2.1 MM in 19981

EUR 3.3 MM in 19991

EUR 4.1 MM in 2000

Organization in three core businesses:

Corporate and Investment Banking

Wealth Management

Retail Banking1 Pro forma BNP Paribas before restructuring provisions


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Private Bank

A KEY PLAYER IN THE PRIVATE BANKING INDUSTRY

Long-standing tradition and reputation in serving the wealth management needs of high-net-worth individuals

Top 10 world-wide in private banking

Undisputed leader in France

Strong positions in all major international private banking centers in Europe and Asia

Investments in the most attractive markets

Presence in 30 countries

3’000 dedicated staff

EUR 108 MM in client assets

Data as of end of March, 2001


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Private Bank

COMPREHENSIVE OFFERING

Investment Funds Advisory Desk

Securities Advisory Desk

Structured & Derivative Products

Cash and Deposit Management

Custody Credit Fiduciary Services

Real Estate Advisory

Art Advisory

Property Advisory

Client

Private BankerDiscretionary Management

Corporate Advisory

Execution DeskTax and Estate

Planning

Financial

Offering

Wealth Management

Offering


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Private Bank

ADVICE-DRIVEN OFFERING

Architecture open to the best products available in the market

World-wide organization by product / service category

Local adaptation of the offering to client profile, needs, and culture

Aggregation and coordination of a broad offeringallowing to provide products and services adapted to the diverse

financial and wealth management needs of high-net-worth individuals


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Private Bank

AMBITIOUS BUSINESS DEVELOPMENT STRATEGY

To be a referencein our target markets

Pursue the development of marketing capabilities

Preserve a reputation for innovation and adaptation regarding the product and service offering

Ensure strong visibility and credibility in our target markets

Pursue investments in IT and systems to ensure state-of-the-art client service and operations


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Private Bank

INCREASING PRESENCE IN THE EUROPEAN ONSHORE MARKET

Leader in France

Significant positions in Southern Europe (Italy, Spain, Greece, Portugal)

Launch of Belgian operations

Will to become a reference in each selected market


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Private Bank

STRONG COMMITMENT IN BELGIUM

Acknowledged expertise of BNP Paribas in onshore private banking

Accurate knowledge of Belgium and Belgian high-net-worth individuals

Core operation in the business development strategy of the Private Bank

Will to quickly becomea key private bank in the Belgian market


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Private Bank

BNP Paribas Private Bank

Lode De Vrieze


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Private Bank

May 2000Merger of BNP and Paribas

• Paribas in Belgium since start in 1872

• BNP in Belgium from 1911


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Private Bank

• Top 10 of the world

• Leader in France

• Important player in Europe and Asia

• Will to become a reference in Private Banking

Start-up in Belgium


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Private Bank

BNP Paribas Private BankBelgium

• Organization

• Target

• Offering


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Private Bank

Organization


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Private Bank

BNP Paribas Private BankBelgium

• Situated in Brussels, 489 Avenue Louise

• Team of 20 people, mainly portfoliomanagers and specialists in wealth-engineering

• Aim to open rep-offices in main cities : Antwerp, Kortrijk, Gent or Liège


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Private Bank

Target


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Private Bank

BNP Paribas Private Bank BelgiumTarget

• People with an important fortune,

• high-net-worth individuals :

~ stockholders of family-owned companies (quoted or not)~ holders of important stock-options~ family-holdings with important free assets...


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Private Bank

COMPREHENSIVE OFFERING

Investment Funds Advisory Desk

Securities Advisory Desk

Structured & Derivative Products

Cash and Deposit Management

Custody Credit Fiduciary Services


Art Advisory

Property Advisory

Client

Private BankerDiscretionary Management

Corporate Advisory

Execution DeskTax and Estate

Planning

Financial

Offering

Wealth Management

Offering


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Private Bank

Financial offering


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Private Bank

What’s important for a HNWI in his relation to his Private Banker ?

Performance Advice Adapted offer

Source : Enquête VIP Forum

66%53% 45%


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Private Bank

• Well-structured investment process (Asset-allocation)

• Research «Buy-side» by dedicated team of analysts

• Market-specialists in 15 countries

• Direct access to markets by dedicated execution-teams

Performance


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Private Bank




66%53% 45%


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Private Bank

Focus on Advice

Advice on products(funds, structured products)

Advice on securities(stocks, bonds, derivatives, FX)

Discretionary management

(risk-profile, personalisation)

Credit

Advice on Asset-allocation

Execution All Markets/All Products


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Private Bank




66%53% 45%


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Private Bank

A large offer of mutual funds

Selection of best funds of the market

EUR 1 bn under management

Parvest (76 compartments)

French & international funds

Advice on funds

Private Bank

Multi-ManagementBNP PAM

Funds BNP PAM

Offer of alternative fund(hedgefunds, private equity funds)


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Private Bank

Structured Products, Derivatives : optimisation, diversification and hedging

Hedging of the portfolio

Structuring and selection of products by Private Bank

Warrants, certificates

Complex strategiesPersonalized strategies and constructions

Structured Products

Access to listed and quoted products Guaranteed funds


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Private Bank

Wealth Management Offering

Damien LAHY


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Private Bank

Wealth Management

• To listen

• To analyse

• To advice

• To accompany


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Private Bank

Components of the wealth management offering

– Wealth and estate planning– Art advisory– Real estate advisory– Property advisory– Corporate advisory– Reception service


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Private Bank

Wealth and Estate Planning

• Personalized diagnosis on estate and family issues

• Trust-driven relationships, over several generations

• Coordination with external advisors (lawyers,…)


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Private Bank

Art Advisory

– Advice, authentication and valuation assistance

– Legal and tax issues

– Transactions


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Private Bank


– Specialization in up-market residences

– Synergies with the Group’ s specialized subsidiaries


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Private Bank

Corporate Advisory

– Synergies with the Group’s Corporate Finance business unit


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Private Bank

Reception service

– Setting up in new cities or countries : assistance

– « Golden keys »: schools, accommodation, legal assistance,…

– The Group ’s world-wide network at the client ’s disposal


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Private Bank

Our strenghts

– Family office-concept

– Important international Group

– Need of our customer = Our offer

• Performance

• Advice

• Financial and Wealth management offering

françois debiesse

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