BNP Paribas is no longer the leading bank capitalization in Europe

© Nicolas Sandanassamy/Capital

– BNP Paribas sees its bank capitalization fall.

The fall is heavy for BNP Paribas! Still valued at more than 82.5 billion euros in May, the French bank saw its valuation fall to 67.1 billion eurosreports The echoes. A brutal fall which sees its competitor, the Spanish Santander, overtake it, since it is today valued at 68.6 billion euros. As a result, BNP Paribas loses its place as the largest bank capitalization in Europe. Consequence of the political crisis currently raging in France and the announcement of the dissolution of the National Assembly by Emmanuel Macron.

This is not the lowest market capitalization of BNP Paribas this year, since the leading French bank had fallen to less than 62 billion at the beginning of February. But one week before the first round of early legislative elections, investors are worried. They particularly fear consequences of economic programs of the National Rally and the New Popular Front which could access Matignon in the event of a majority on July 7. Thus, the financing costs of French banks could be affected.

Santander’s good performances

Following Emmanuel Macron’s announcement after the defeat of the majority in the European elections, the major French banks listed on the stock exchange, BNP Paribas, Crédit Agricole and Société Générale were among the biggest falls in the CAC 40. Banks worried economic fallout on the French economy, but also the widening of interest rate differentials (on government bonds) between Germany and countries like France and Italy, explained Capital.

BNP Paribas is the bank which has lost the least since the announcement of the dissolution (10.6%), behind Crédit Agricole (11%) and Société Générale (15%). However, the bank Morgan Stanley fears that this fall continues until the election results. But if BNP Paribas loses its place as European leader, it is also because of the good results of Santander. The Spanish group, which benefited from the rise in central bank rates, reaped 11 billion euros in profits in 2023, recalls The echoes.

Santander also launched Openbank in the United States, a consumer banking services platform, without forgetting the agreement sealed with Apple or Amazon (still in progress) in Germany with the aim of offering customers financing options. Finally, the Spanish bank is still ready to join forces with Renault in France in order to form a joint venture focused on leasing offers. A new shift driven by Ana Botin, who arrived at the head of the group ten years ago, who initiated a digital shift which now seems to be bearing fruit.