BNP Paribas (BNP) Q2 2024 earnings summary

Executive summary

• Net income group share reached €3.4bn in Q2 2024, up 1.6% year-over-year, supported by strong operating performance and a diversified business model.

• Revenues rose 3.9% year-over-year to €12.27bn, driven by CIB (+12.1%), Global Markets (+17.6%), and stable CPBS performance.

• Operating efficiency measures continued, with cost discipline, positive jaws effect, and operating expenses up 4.2% (excluding DGS Italy).

• Cost of risk remained low at 33 bps, reflecting portfolio quality despite a specific credit event.

• 2024 trajectory confirmed: revenue growth above 2%, positive jaws, cost of risk below 40 bps, and net income projected to exceed €11.2bn.

Financial highlights

• Q2 2024 revenues: €12.27bn (+3.9% vs. Q2 2023); gross operating income: €5.09bn (+3.4%); net income: €3.4bn (+1.6%).

• H1 2024 revenues: €24.8bn (+1.7% vs. H1 2023); net income: €6.5bn (stable); cost of risk at 31bps for the semester.

• EPS up 8.1% year-over-year to €2.81; tangible book value at €88.5 as of June 30, 2024.

• Dividend per share CAGR >10% (2013–2023), with €20bn estimated shareholder returns for 2024–2026.

• Operating expenses in Q2 2024: €7.18bn (+4.2%); cost/income ratio at 58.5%.

Outlook and guidance

• 2024 guidance reaffirmed: revenue growth above 2%, positive jaws, cost of risk below 40 bps, and net income exceeding €11.2bn.

• Operational efficiency measures to deliver €1bn in 2024, with €650m in 2H24.

• Continued focus on client service, risk management, and CIB market share.

• Model well-positioned for gradual interest rate cuts and continued fee-based business growth.