BNP Paribas (BNP) Q1 2025 earnings summary

Executive summary

• Group revenues rose 3.8% year-over-year to €12,960m, with operating divisions up 6.1% and record CIB performance (+12.5%).

• Operating income was stable at €3,922m (+0.5% vs. 1Q24), while net income, group share, declined 4.9% to €2,951m due to lower exceptional items.

• Financial structure remains robust with a CET1 ratio of 12.4% and a liquidity coverage ratio of 133%.

• Record quarter for CIB, solid growth in IPS, and good performance in CPBS.

• 2024 dividend of €4.79 per share to be paid in May 2025, with a €1.08bn share buyback authorized for 2Q25.

Financial highlights

• Revenues: €12,960m (+3.8% vs. 1Q24); operating expenses: €8,257m (+4.0%); gross operating income: €4,703m (+3.5%).

• Cost of risk: 33 bps (+4 bps vs. 1Q24), reflecting prudent risk management.

• Net income, group share: €2,951m (-4.9% vs. 1Q24); TBV per share: €95.8 (+5.6%).

• CET1 ratio: 12.4%, above SREP requirement and 12.3% target; leverage ratio: 4.4%; LCR: 133%.

• €190m in cost savings implemented in Q1, on track for €600m in 2025.

Outlook and guidance

• 2024-2026 targets: revenue CAGR >5%, net income CAGR >7%, EPS CAGR >8%, jaws effect ~1.5 pts/year, cost of risk <40 bps.

• ROTE expected at 11.5% in 2025 and 12% in 2026.

• All divisions expected to contribute to growth, with CIB as a key engine and IPS to accelerate via acquisitions.

• Share buyback of €1.08bn to launch in Q2 2025, with 60% distribution policy confirmed.

• CPBS to benefit from a more favorable interest-rate environment and strategic plans, with >3% revenue growth expected in 2025.