(Corrects headline to show 1 billion euros will be spent on
* Plan presented by unions to management
* Focus on simplifying management structure
* No details on jobs
* BNP expected to outline further details in coming months
By Lionel Laurent and Dominique Vidalon
PARIS, Jan 18 BNP Paribas plans to
spend one billion euros ($1.34 billion) over three years to
reorganise and simplify its businesses, according to a union
source informed of the plan.
France's No. 1 bank is widely expected to lay out its new
strategy in the coming months after a rocky 2012 spent selling
assets and cutting jobs to bolster investor confidence and meet
tougher bank capital rules under Basel III.
BNP's management outlined the "Simple & Efficient 2015" plan
to staff representatives on Jan. 16 - promising to cut layers of
management and simplify decision-making - but stopped short of
any details on jobs, a source from the SNB union told Reuters.
"The plan, called 'Simple & Efficient', will run through
2015," the source said. "Over 1 billion euros will be spent on
planned changes that will potentially affect all of BNP's
Shares of BNP were up 1.5 percent, to 46.33 euros, the
fifth-best performer on the STOXX Europe 600 banks index
A BNP spokesman declined to comment. The news was earlier
reported by investment newsletter Agefi, which said BNP might
outline the plan at its next earnings announcement on Feb. 14.
Banks across Europe are slashing costs and selling assets to
boost their defences against a weakening economy and comply with
tougher capital and liquidity rules.
BNP Chief Executive Jean-Laurent Bonnafe said in November
that the lender was looking to cut costs in its branch network.
($1 = 0.7486 euros)
(Reporting by Lionel Laurent and Dominique Vidalon; Editing by
Christian Plumb and Erica Billingham)