BNP Paribas (BNP) Investor update summary

Strategic roadmap and growth ambitions

• Targeting a pre-tax RONE of 22% by 2028 and 25% by 2030, up from previous targets, driven by revenue rebound, cost control, and capital efficiency.

• Growth strategy centers on leveraging leading market positions, streamlining operations, and accelerating digital and AI transformation.

• Focus on cross-selling, segmenting customers, and deepening share of wallet through group integration.

• Investments in digitalization, AI, and mutualized platforms to enhance efficiency and client experience.

• Operational efficiency pursued via smart sourcing, asset mutualization, and workforce management.

Financial trajectory and profitability drivers

• Revenue expected to grow at a 9% CAGR from 2025 to 2028, mainly driven by net interest income and fee growth.

• Net interest income expected to grow at 11% CAGR, adding €1 billion over the period, supported by stable deposit mix and reinvestment of savings.

• Cost/income ratio to improve by ~10 points to ~59% by 2028, with strict cost discipline and digitalisation.

• Cost of risk to normalize at a low 10bps, reflecting prudent risk management and a high-quality loan book.

• RWA growth limited to less than 1% CAGR, with €20 billion in cumulative RWA savings expected by 2028 through securitization, insurance solutions, and data quality improvements.

Market position and client franchise

• Holds #1 market share in Belgium across current accounts, mortgages, private banking, and corporate loans.

• Over 4 million active retail clients, 105,000 private banking clients, and 87,000 corporate clients.

• Most accessible bank in Belgium with over 1,000 physical locations, complemented by leading digital channels and 3 million active digital users.

• Digital sales account for over 40% of banking and insurance sales, with strong adoption among SMEs and corporates.

• Belgium's market features high household wealth, strong savings, and a diversified economy.