By Carolina Mandl
NEW YORK (Reuters) - BNP Paribas (OTC:BNPQY) is expanding its equity research house Exane in the United States, after the euro zone's biggest lender took it over last year, the bank said on Tuesday.
BNP plans to increase Exane's coverage of U.S. companies to 450 stocks from its current 180 stocks by 2025, mainly in the technology, media, telecommunications, consumer, healthcare and industrials sectors, it said.
It also intends to boost its workforce with analysts, traders and salespeople, BNP said in a statement. The strategic plan foresees at least 50 new hires by 2025, a person familiar with the matter said.
Michael Rietbrock has joined Exane from Cantor Fitzgerald in October as head of U.S. research, according to BNP.
The move comes as BNP aims to strengthen its equities unit and diversify the lender's business, best known for derivatives.
As part of this strategy, BNP acquired last year a remaining 50% stake in cash equities execution and research house firm Exane, which covers 800 stocks globally. Now it is working to expand Exane's footprint in the United States.
"The Americas region is the biggest growth opportunity for us because of the size of the fee pool and our current market share [there]. It's really where we want to grow," Nicolas Marque, head of global equities at BNP Paribas told Reuters.
Now at the helm of Exane, BNP can distribute and offer the firm's research to U.S. clients, such as hedge funds, which can also use BNP's equities prime brokerage and trading services.
Last week, BNP posted a higher-than-expected net income in the third quarter, helped by trading revenue.
(This story has been refiled to correct number of expected hires to "at least 50" in the third paragraph)