BNP Paribas (BNP) Q1 2026 earnings summary

Executive summary

• Achieved record net income of €3,217m in 1Q26, up 9.0% year-over-year, with strong operational performance and all divisions contributing to growth and positive momentum toward 2026 and 2028 targets.

• Revenues rose 8.5% to €14,056m, driven by growth in CPBS (+4.9%), IPS (+32.8%), and stable CIB (+3.1% at constant FX), with cost discipline and efficiency measures leading to a positive jaws effect.

• Integration of AXA IM contributed to transformational growth in IPS and restructuring charges, supporting medium-term profitability targets.

• CET1 ratio reached 12.8%, up 20 bps in the quarter, nearing the 13% target for 2027/2028.

• Cost of risk at 39 bps, in line with guidance, with provisions mainly in Stage 3 and a low NPL ratio of 1.6%.

Financial highlights

• Net banking income: €14,056m (+8.5% vs. 1Q25); gross operating income: €5,346m (+13.7%).

• Operating expenses increased 5.5% to €8,710m, reflecting integration and restructuring costs.

• Pre-tax income: €4,608m (+8.7%); net income, group share: €3,217m (+9.0%).

• Dividend for 2025 earnings set at €5.16 per share, with €2.57 balance due in May 2026; €1.15bn share buyback completed in December 2025.

• Cost/income ratio improved, with a target to fall below 56% by 2028.

Outlook and guidance

• 2028 targets reaffirmed: RoTE >13%, cost-income ratio <56%, net income CAGR >10% (2025–2028).

• CET1 target of 13% by end-2027/2028, with potential to reach it by year-end 2026 barring exceptional events.

• Transformation plan for support functions underway, focusing on AI deployment.

• Strategic business line reviews (Deep Dives) scheduled for Belgium, Italy, and Arval in 2026.

• No material acquisitions expected in the medium term; focus on organic growth and capital returns.