BNP Paribas (BNP) Q3 2024 earnings summary

Executive summary

• Net income group share reached €2,868m in Q3 2024, up 5.9% year-over-year, with record performance and EPS rising 11.2% to €2.38.

• Revenues increased 2.7% to €11,941m, driven by strong CIB (+9.0%) and IPS (+4.9%) performance; CPBS was stable excluding used-car disposals at Arval.

• Gross operating income rose 4.2% to €4,728m, with a positive jaws effect (+1.0 pt) and operating expenses up 1.7%.

• Operational efficiency measures delivered €655m in cost savings YTD, with a further €345m expected in Q4, targeting €1bn in 2024.

• CET1 ratio stood at 12.7% after Arval consolidation, reflecting a robust financial structure and ongoing capital redeployment.

Financial highlights

• Q3 2024 revenues: €11,941m (+2.7% vs. Q3 2023); 9M 2024 revenues: €36,694m (+2.0% vs. 9M 2023).

• Net income group share: €2,868m in Q3 2024 (+5.9%); €9,366m in 9M 2024 (+1.5%).

• Gross operating income: €4,728m in Q3 2024 (+4.2%); €14,368m in 9M 2024 (+3.1%).

• Cost/income ratio improved to 60.4% in Q3 2024 (down 0.6 pt year-over-year); positive jaws in all divisions except Real Estate.

• Cost of risk stable at 32 bps; stock of provisions at €18.8bn, coverage ratio 69.2%.

Outlook and guidance

• 2024 guidance confirmed: revenue growth above 2%, positive jaws, cost of risk below 40 bps, and net income group share above 2023 distributable net income (€11.2bn).

• Q3 marks an inflection point for Eurozone commercial banking, with headwinds expected to dissipate in 2025 and tailwinds anticipated in 2026.

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

• Further capital redeployment and integration of AXA IM and other bolt-on acquisitions to drive future growth.