Key Highlights

  • First-quarter earnings reached €3.22 billion, representing a 9% annual increase and exceeding projections by 9%
  • Total revenues climbed 8.5% to €14.06 billion, surpassing the €13.82 billion analyst consensus
  • Investment and Protection Services revenues jumped 32.8% following the AXA Investment Managers acquisition
  • Arval and Leasing Solutions division underperformed, declining 11.7% amid significant used-car price depreciation
  • Management reaffirmed 2028 objectives, targeting return on tangible equity exceeding 13% and annual net income growth above 10%

BNP Paribas achieved its strongest first-quarter performance in company history on Thursday, reporting earnings of €3.22 billion—a 9% year-over-year increase. The figure exceeded the company-compiled analyst consensus of €2.93 billion substantially.

Total group revenues reached €14.06 billion, marking an 8.5% annual increase and beating the €13.82 billion forecast. Gross operating income expanded 13.7% to €5.35 billion, likewise exceeding analyst projections.

Chief Executive Jean-Laurent Bonnafé described the period as a “record first quarter,” highlighting strength throughout the bank’s business divisions and advancement on strategic initiatives. He noted that planning has already commenced for the organization’s 2027-2030 roadmap.


BNP.DE Stock Card
BNP Paribas S.A., BNP.DE

The cost-income ratio reached 62%, with operating expenses totaling €8.71 billion, slightly below the €8.75 billion estimate. This resulted in a favorable jaws effect of three percentage points across the group.

A significant contributor this quarter was the integration of AXA Investment Managers, which the bank acquired in the previous year. Investment and Protection Services revenues jumped 32.8% to €1.98 billion. Total assets under management stood at €2.46 trillion at the end of March.

Corporate and Institutional Banking revenues remained essentially unchanged at €5.24 billion, showing a 0.8% year-over-year decline while increasing 3.1% when adjusted for scope and currency effects. Global Markets revenues advanced 2.5% to €2.88 billion, with Equity and Prime Services climbing 9.3% on a constant-rate basis.

Jefferies analysts, who maintain a buy rating with a €127 price target, noted that markets revenue exceeded their internal estimate by 3%, primarily driven by equities performance.

Areas of Underperformance

Several segments failed to meet expectations. Commercial, Personal Banking and Services revenues increased 4.9% to €6.85 billion, marginally below Jefferies’ €6.91 billion projection.

The Arval and Leasing Solutions division represented the most notable weakness. Revenues contracted 11.7% to €742 million as used-vehicle valuations experienced sharp declines in March. Pre-tax income of €253 million fell 27% short of Jefferies’ €345 million estimate.

Operating expenses grew 5.5% year-over-year, partially attributable to restructuring charges related to the AXA IM integration.

The corporate center recorded several significant items. BNP established a €219 million provision for UK Motor Finance risks following the Financial Conduct Authority’s consumer compensation program announced on March 30. This resulted in a net negative impact of €98 million on bottom-line results.

This charge was partially balanced by a €372 million pretax revaluation gain on the bank’s Allfunds holding, following Deutsche Börse’s acquisition offer for the company and BNP’s subsequent loss of significant influence.

Capital Position and Future Guidance

The Common Equity Tier 1 ratio stood at 12.8%, exceeding the consensus projection of 12.65% and rising 20 basis points from the previous quarter. BNP maintains a CET1 ratio target of 13% by 2027.

Cost of risk totaled €922 million, equivalent to 39 basis points of outstanding customer loans—remaining within the bank’s 2026 guidance of below 40 basis points.

BNP reaffirmed its 2028 objectives, including achieving return on tangible equity above 13% and delivering compound annual net income growth exceeding 10% throughout the 2025–2028 timeframe.

Despite delivering record profitability, BNP Paribas shares declined over 4% during Thursday’s trading session.