BNP Paribas (BNP) Q3 2024 earnings summary

Executive summary

• Net income Group share reached €2.87 billion in Q3 2024, up 5.9% year-over-year, with EPS rising 11.2% to €2.38 and revenues increasing 2.7% to €11.94 billion, driven by strong CIB (+9%) and IPS (+4.9%) performance; CPBS remained stable excluding Arval's used car disposals.

• Gross operating income increased 4.2% to €4.73 billion, with a positive jaws effect (+1.0 pt) and cost of risk stable at 32 bps.

• CET1 ratio stood at 12.7% after Arval consolidation, reflecting a robust financial structure and ongoing capital redeployment from Bank of the West divestment.

• Operational efficiency measures delivered €655 million in cost savings year-to-date, supporting positive jaws.

• 2024 trajectory confirmed: revenue growth above 2%, cost of risk below 40 bps, and net income above 2023 (€11.2bn).

Financial highlights

• Q3 2024 revenues: €11.94 billion (+2.7% year-over-year); 9M 2024 revenues: €36.7 billion (+2.0%).

• Net income Group share: €2.87 billion in Q3 2024 (+5.9%); €9.37 billion in 9M 2024 (+1.5%).

• Gross operating income: €4.73 billion in Q3 2024 (+4.2%); operating expenses up 1.7% to €7.21 billion.

• Cost/income ratio at 60.4% in Q3 2024 (down 0.6 pt year-over-year); positive jaws effect in most divisions.

• EPS: €2.38 in Q3 2024 (+11.2% year-over-year).

Outlook and guidance

• 2024 guidance reaffirmed: revenue growth above 2%, positive jaws, cost of risk below 40 bps, and net income exceeding 2023.

• Q3 seen as an inflection point for Eurozone commercial banks; headwinds expected to dissipate in 2025, with tailwinds in 2026.

• Further €345 million in cost savings expected in Q4, totaling €1 billion for 2024.

• Update on 2026 outlook to be provided with 2024 annual results.

• Improving outlook for Commercial & Personal Banking in the euro zone, with stabilizing deposits/loans and easing headwinds.