The BNP Paribas Group in London and its staff

Early implantation and important staff

Forty years ago, the British capital was home to 308 foreign banks, each maintaining an average staff of 93. This figure more than doubled in the space of ten years: in 1969, there had been 137 institutions, with an average workforce of 72 people. However, the payroll of French banks was larger in those days: BNP Limited, with a presence in London since 1867, had 440 employees, Societe Generale (arrived in 1871) – 316 people, Credit Lyonnais (in London since 1870) – 256 people, the Banque de Paris et des Pays-Bas (Paribas), opened in 1964 – 50 people.

BNP Limited is the only French bank to be a subsidiary under English law, the others having preferred to assume “branch” status. Has this difference played a role in terms of staff and team management? Is the juxtaposition of Anglophone and Francophone executives – an inevitable consequence of any overseas establishment – the only reason for this?

The answer to this question first requires a step back in time.

The Comptoir national d’escompte de Paris (CNEP): a “from scratch” establishment of a French bank in London

From its initial establishment in 1867, the Comptoir national d’escompte de Paris (CNEP) – BNP Paribas’ first forerunner bank to cross the Channel – was never intended merely as a representative office.

For this reason, by 1921, the London agency already had at least 106 permanent employees, including some 13 managers. Manchester had 12 employees and Liverpool at least 6, both British and French.

These were therefore large establishments, set up to offer specialised services and tailored to the requirements of their client base, which consisted mainly of French companies using them as points of support for their commercial trade operations.

The most fully-developed services were those associated with international trade and foreign exchange transactions, such as the goods service. Offering a full range of banking and administrative services, the London office was both comprehensive and flexible, and managed by qualified executives. Many of these executives were not French, and had been recruited from a pool of English-speaking managers who had pursued careers in Australia, India, Egypt and London.

In 1967, at the time of its merger with the British & French Bank (B&FB), the CNEP in London employed just 73 staff, compared with the B&FB’s 118. In addition to the significant difference in staff numbers, taking into account the date of creation of the two entities – 1867 in the case of the CNEP and 1949 for the B&FB – women accounted for 54% of the total staff of the B&FB, compared to 30% at the CNEP. In England, women aged 25 and older earned 15% less than their male counterparts.

Let us examine these disparities.

British & French Bank (B&FB): a French-run English bank

When the Banque nationale pour le commerce et l’industrie (BNCI) opened its first branch in London in 1938, it had a staff of just 12. This small workforce was in accordance with the wishes of Paris, who saw this operation primarily as an observation post whose purpose was to strengthen the links with its customers in London.

An overstaffed bank?

In 1947 – the year in which the BNCI branch became a subsidiary under English law under the name of British & French Bank (for Commerce and Industry) Limited – the bank’s staff increased to 49 people. This transformation required a number of apparently onerous formalities, which may explain why the subsidiary maintained such an extensive payroll. The structure was required to match that of most London banks and adhere to traditional British working methods. For that reason, in June 1948, despite the B&FB’s low profitability, its staff grew by 50% to 73 employees; by June 1949, it had reached 82 employees. There were 4 English and 3 French staff at the headquarters alone.

French vs English management philosophies

Acclimatising English and Nigerian personnel to French managerial practices

Training

Correspondingly, the BNCI arranged a system of short-term internships in Paris for a number of B&FB employees. Similarly, the bank established a promotion ladder for Nigerian employees who were to assume positions of responsibility, initiating a training programme in London for the most “promising” among them, for periods limited to 3 months.

BNP Limited: workforce rationalisation and business reorganisation

BNP Limited, born from the January 1967 merger between the CNEP and B&FB branches, was ranked in 1979 as the 19th largest British bank, employing 440 staff.

At the end of the 1970s, a workforce rationalisation policy was implemented, taking into account staff numbers and quality alike. Up until then, the wage bill had grown exponentially, coupled with a high turnover . A steady decline in staff numbers began in 1988, falling from 464 to 375 people in 1991, with a significant slowdown in the number of hires (113 in 1987, compared to 11 in 1991). The average age remained almost stable, but turnover was affected to some extent.

The method of operation, meanwhile, remained primarily London-based (King William Street and London-Knightsbridge), with minimal representative offices covering a portion of the rest of the country (Edinburgh, Birmingham, Leeds, Manchester).

What does the future hold ?

Britain is a strategic country for the Group’s activities, with the Group employing nearly 6,000 people on British soil. They serve British companies as well as investors, financial institutions and individuals.
With the wide range of services it offers, BNP Paribas continues to grow in the United Kingdom. Its aim is to become a preferred partner of the United Kingdom in Europe, as 150 years after its foundation, it continues to strengthen its commitment to its British customers.