BNP Paribas (BNP) Q4 2025 earnings summary

Executive summary

• Achieved record fourth quarter and full-year 2025 with strong operating performance, sharp rise in net income, and all divisions contributing positively.

• Revenue growth driven by a diversified and integrated business model, with strategic plans focused on profitability, efficiency, and digital transformation, including AI and sustainability initiatives.

• Cost control and efficiency measures resulted in a positive jaws effect and improved cost-income ratio.

• 2026 trajectory confirmed and 2028 ROTE target raised to above 13%, with improved cost/income ratio guidance.

• Major transformation plan for support functions launched, leveraging AI and standardization.

Financial highlights

• 4Q25 revenues: €13,113m (+8.0% vs. 4Q24); 2025 revenues: €51,223m (+4.9% vs. 2024).

• 4Q25 net income: €2,972m (+28.0% vs. 4Q24); 2025 net income: €12,225m (+4.6% vs. 2024).

• Gross operating income up 13.3% in 4Q25 and 6.5% for 2025.

• Cost of risk at 34 bps in 4Q25, in line with guidance.

• EPS for 2025: €10.29 (+7.5% vs. 2024); total dividend: €5.16 (+7.7%).

Outlook and guidance

• 2026 targets: ROTE 12%, net income CAGR >7% (2024–2026), EPS CAGR >8%, revenue CAGR >5%, cost of risk <40 bps.

• 2028 targets: ROTE >13%, cost/income ratio <56%, net income CAGR >10% (2025–2028), CET1 ratio 13%.

• Distribution policy confirmed at 60% for 2026 and from 2027, with surplus CET1 above 13% to be distributed annually.

• Additional €600m in recurring cost savings planned for 2026, with total savings of €3.5bn by 2026.

• Focus on AI and digital transformation to drive operational efficiency and support future plans.