An IMGW News Report
BNP Paribas (BNPP.PA) has reported stronger-than-expected quarterly earnings, driven by a surge in trading activity. The results lifted the French bank’s share price as it continues its cost-cutting drive to enhance profitability.
Key Highlights:
- Q4 net profit up 15.7%
- Investment banking revenue rises 20%, fuelled by FICC trading
- 2025 profitability target lowered, further cost savings planned
- €1.08 billion share buyback announced
For CEO Jean-Laurent Bonnafé, the performance is a welcome boost after a challenging year for BNP’s retail banking operations in France and Belgium. Shares rose 1.9% at 11:10 GMT, outperforming France’s CAC 40 and the broader European banking index.
The eurozone’s largest bank by assets posted a net profit of €2.32 billion for the final quarter of 2024, a 15.7% increase that exceeded analyst expectations. Revenue climbed 10.8% to €12.1 billion, surpassing the forecasted €11.6 billion.
BNP announced a dividend of €4.79 per share, up 4.1% from 2023, and confirmed a €1.08 billion share buyback, set for Q2 2025. However, it revised down its profitability target for 2025 and pledged additional cost reductions.
Investment banking revenue soared 20%, including a 34% rise in fixed income, currencies, and commodities (FICC) trading and a 30% gain in equity prime services. BNP’s market share in investment banking across EMEA rose from 4.6% to 4.9%.
Despite the strong results, BNP took a cautious stance on the future, cutting its return-on-equity target and announcing €600 million in extra cost savings for 2026. It expects 12% ROTE by 2026, supported by its €5.1 billion acquisition of AXA’s asset management unit.
Bonnafé ruled out major cross-border mergers, citing integration challenges, but acknowledged the potential for domestic consolidation. The bank now forecasts annual net income growth of over 7% for 2024-2026.
Background on BNP Paribas
BNP Paribas is the largest bank in the eurozone by total assets and one of the top banks globally. It ranks among the top three banks in Europe, competing with HSBC and Crédit Agricole. Headquartered in Paris, BNP operates in over 70 countries, offering retail banking, corporate and investment banking, wealth management, and asset management services. Its strong presence in investment banking has positioned it as a key European player, rivaling US giants such as JPMorgan and Goldman Sachs.
