BNP Paribas (BNP) Investor update summary

Strategic vision, ambitions, and growth drivers

• Targeting over 13% ROTE by 2028 and RONE above 65% by 2030, with asset management as a key contributor and a new phase of scale and growth.

• Four growth pillars: leadership in alternatives, scaling active management and ETFs, expanding insurance/institutional partnerships, and accelerating retail/wealth management.

• Leveraging megatrends in savings, retirement, and investment, especially in Europe, with integrated asset, wealth, and insurance platforms.

• Accelerates growth through partnerships, M&A, and consolidation, with AUM reaching €1.624 trillion by end-2025 and €1.6 trillion currently diversified across asset classes and geographies.

• Strategic roadmap focuses on alternatives, active management, ETF acceleration, and retail & wealth transformation, supported by technology, sustainability, and people.

Financial trajectory and synergy delivery

• Plan to nearly double pre-tax income by 2030, with cumulative net inflows of €350 billion and AUM growth above 5% per year.

• Revenue CAGR targeted at 4% through 2030, with operating expenses flat and cost/income ratio improving to below 60%.

• Cost synergies of ~€400 million expected by 2029, mainly from rationalization, IT convergence, and operational efficiencies.

• Revenue synergies of up to €150 million, half achieved by 2027, driven by insourcing, cross-selling, and commercial acceleration.

• Integration of AXA IM completed, with legal merger and unified brand, aiming for full operational convergence by 2027.

Alternatives, active management, and technology

• Alternatives represent €300 billion AUM, with leadership in real estate, private credit, infrastructure, and private equity.

• Alternatives account for less than 20% of AUM but over 50% of industry revenues, with strong growth in private credit and infrastructure.

• Active management and ETFs manage €1.15 trillion, expected to add €185 billion in AUM by 2030, with strong performance and scale in fixed income and money markets.

• ETF platform targets €100 billion net inflows by 2030, focusing on differentiated segments and leveraging group distribution.

• Scalable technology and data platforms, with AI and automation driving operational efficiency, client engagement, and portfolio management augmentation.