LONDON, Nov 20 (IFR) - Yann Gerardin has cemented his day-to-day control as head of BNP Paribas’s corporate and investment bank by carving the business into three new silos and eliminating the job of the head of fixed income Frederic Janbon.
The former global head of equities and commodity derivatives, a 27-year veteran of the firm, was promoted to head CIB on October 1 after former chief Alain Papiasse relinquished day-to-day control of the business to focus on group-level activities.
Although the move was initially billed as a continuation of Papiasse’s five years in charge, major changes to the structure of the investment bank just seven weeks into the job indicate intentions to shake up the way the business works.
CIB will be split into three: a new global markets division run by Gerardin himself that will encompass trading, financing and prime services businesses across asset classes; a separate securities services business; and financial institutions coverage.
“The banking industry has changed dramatically, and not only in terms of regulations,” said Gerardin. “Business models are being industrialised, rationalised, digitalised. Clients are expecting us to serve them holistically with added-value and industrialised solutions.”
BNP Paribas said the changes would allow it to serve both institutional and corporate clients more efficiently, and better enable it to meet targets unveiled in March to increase revenues at its investment bank by 6% over the next three years. JANBON MOVES ASIDE As former equities and commodity derivatives head, Gerardin once effectively ran half the markets business alongside Janbon, but the new structure eliminates both positions. Janbon will instead take on a special advisory role to the group board.
Janbon has been with the firm only a year less than Gerardin. He joined Paribas in London in 1988 in option and swap trading, and in 2001 was named as global head of interest rates before taking over as head of fixed income in 2005.
“I would like to express my utmost gratitude to Frederic for his contribution to the development of our global fixed income platform over the past nine years,” said group CEO Jean-Laurent Bonnafe.
Gerardin’s former deputy Olivier Osty gets a big bump up. He will take on the new head of sales, structuring and trading across all asset classes and regions within the global markets business, reporting to Gerardin. The capital markets business line heads will also report into Osty.
Patrick Colle continues as head of securities services and will report to Gerardin. Janbon’s former deputy Henri Foch, who mainly oversaw fixed income in the Europe, Middle East and Africa region, will head the new FIC silo and also report to Gerardin. REGIONAL CHANGES The French bank has also simplified its regional structure, merging North and Latin America into a single Americas region, led by the head of the former area Jean-Yves Fillion. Europe will be merged with the Middle East and Africa to be EMEA.
Within that new EMEA region, the bank has also split its corporate coverage into two new business lines: corporate clients financing and advisory EMEA, which will deliver traditional investment banking products; and country management and corporate trade and treasury solutions EMEA which will deliver more transactional services.
European CIB head Thierry Varene will become chairman of the former, reporting to Gerardin. Chief risk officer at BNP Paribas Fortis Thomas Mennicken will become day-to-day head of the new CCFA EMEA business, reporting to Varene.
Meanwhile, Marc Carlos has been appointed head of country management and corporate trade and treasury solutions EMEA. Carlos will maintain his responsibility, at group level, as head of the global US dollar clearing and payment business line. (Reporting by Gareth Gore; Editing by Christopher Spink)