The France-based banking group reported a decline in pre-tax income at its wealth and asset management unit, while AuM hit a record high.

BNP Paribas today said its assets under management hit a record high of €1.01 trillion ($1.08 trillion) in 2016, swelling 5.8 per cent from the previous year, while pre-tax income at its wealth and asset management arm stood at €685 million, dipping 5.4 per cent since 2015.

Total AuM for insurance, wealth and asset management rose by €56 billion, propelled by “very good net asset inflows” totalling €34.9 billion, the French banking giant said in a statement. The firm also cited strong asset inflows at its wealth management business across Asia, France and Italy as driving forces behind the rise, adding that it saw “very good” asset inflows at its asset management arm, particularly into diversified and bond funds.

As of 31 December 2016, AuM comprised the following: asset management (€416 billion); wealth management (€344 billion); insurance (€226 billion); and real estate services (€24 billion).

BNP Paribas said its wealth and asset management revenues, at €2.977 billion, “held up well in a lacklustre context", slipping 1.2 per cent compared to its 2015 balance sheet.

Operating expenses, at €2.341 billion, rose 1.4 per cent “as a result in particular of the development of wealth management,” BNP Paribas said.

Across the entire BNP Paribas group, pre-tax income totalled €11.21 billion in 2016, compared to €10.37 billion the previous year, up 8 per cent.

“With €7.7 billion net income, BNP Paribas delivered a good performance in 2016 thanks to its integrated and diversified business model and the dedicated work of all its employees. Revenues are up despite a lacklustre environment this year. Costs were well contained and the cost of risk was significantly lower,” said BNP Paribas chief executive Jean-Laurent Bonnafé.