The BNP Paribas Group confirms a steady growth trajectory in Net Income, Group Share through the cycle. As such, 2024 Net Income will be higher than 2023 Distributable Net Income.
BNP Paribas also confirms its 2025 ROTE1 target in a range of 11.5% to 12%, as well as its ROTE target of 12% in 2026.
This trajectory, combined with a 60% pay-out ratio2, should enable the Group to return a total of about 20 billion euros3 to its shareholders from 2024 to 2026.
Leveraging its diversified and customer-focused model, BNP Paribas should continue to grow faster than its underlying economy and to gain market share.
The trajectory will also be driven by the return on capital deployed since 2022, following the sale of Bank of the West, with a 2025 return on invested capital of more than 16%
In addition, the Group announces an acceleration and widening of operating efficiency measures amounting to a recurring figure of about 400 million euros, thus raising the target of the 2022-2025 plan to 2.7 billion euros. The Group also confirms a jaws effect of an average of at least 2 points4 from 2022 to 2025.
Lastly, the Group maintains a conservative origination policy and strict risk control. It reiterates its cost of risk target of below 40 basis points each year over the duration of the plan.
1 Return on non-revaluated tangible equity
2 Applied to distributable Net Income after taking into account the remuneration of Undated Super Subordinated Notes (“TSSDI”)
3 Subject to the approval of the General Meeting and to ECB authorization (for the share buyback program), cumulated amount with respect to financial years 2023, 2024 and 2025
4 CAGR 2022-2025 of Group revenues minus CAGR 2022-2025 of Group operating expenses excluding Bank of the West
BNP Paribas is the European Union’s leading bank and key player in international banking. It operates in 63 countries and has nearly 183,000 employees, including more than 145,000 in Europe. The Group has key positions in its three main fields of activity: Commercial, Personal Banking & Services for the Group’s commercial & personal banking and several specialised businesses including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, focused on corporate and institutional clients. Based on its strong diversified and integrated model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporate and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, BNP Paribas has four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated commercial & personal banking model across several Mediterranean countries, Turkey, and Eastern Europe. As a key player in international banking, the Group has leading platforms and business lines in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific. BNP Paribas has implemented a Corporate Social Responsibility approach in all its activities, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.
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