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CORRECTED-UPDATE 1-BNP Paribas eyes 1 bln euro overhaul
January 18, 2013 / 9:05 AM / 5 years ago

CORRECTED-UPDATE 1-BNP Paribas eyes 1 bln euro overhaul

(Corrects headline to show 1 billion euros will be spent on overhaul)

* 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 (Reuters) - 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 business lines.”

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)

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