BNP Paribas (BNP) Q1 2025 earnings summary

Executive summary

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

• Net income, group share, declined 4.9% to €2,951m due to lower exceptional items and corporate center contribution.

• Operating income was stable at €3,922m (+0.5% vs. 1Q24), maintaining profitability trajectory.

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

• Focus on high-quality clients, risk management, and capitalizing on European investment opportunities.

Financial highlights

• Revenues: €12,960m (+3.8% vs. 1Q24); operating divisions up 6.1%.

• Cost of risk at 33 bps, slightly up from Q1 2024 but below guidance of 40 bps.

• CET1 ratio at 12.4%, down 50 bps quarter-on-quarter due to Basel finalization, but above the 12.3% target.

• EUR 190 million in cost savings implemented in Q1, on track for EUR 600 million in 2025.

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

Outlook and guidance

• 2024-2026 guidance: 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 growth driven by acquisitions.

• Share buyback of €1.08bn to launch in Q2, 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.