- BNP Paribas reported a net income of €3.26 billion for Q2, which is a 4% decrease year-on-year but above the estimate of €3.13 billion.
- Total revenue for the quarter was €12.58 billion, a 2.5% increase year-on-year, slightly surpassing the expected €12.54 billion.
- Corporate and Institutional Banking (CIB) revenue reached €4.68 billion, a 4% rise compared to the previous year and exceeding the estimate of €4.61 billion.
- Global Markets revenue was reported at €2.39 billion, beating the estimated €2.26 billion.
- The Fixed Income, Currencies, and Commodities (FICC) sales and trading revenue surged by 27% year-on-year to €1.41 billion, outperforming the estimated €1.2 billion.
- Equity and Prime Services revenue declined by 15% to €980 million, below the forecast of €1.06 billion.
- Commercial, Personal Banking & Services revenue increased slightly by 0.4% to €6.63 billion, aligning closely with the estimate of €6.61 billion.
- Investment & Protection Services revenue was up by 4.4% year-on-year to €1.53 billion, almost matching the estimate of €1.54 billion.
- The Common Equity Tier 1 ratio stood at 12.5%, meeting expectations.
- Pre-tax income rose by 3.1% year-on-year to €4.56 billion, above the estimate of €4.49 billion.
- Provisions for loan losses rose by 18% year-on-year to €884 million, surpassing the expected €864.3 million.
- The cost to income ratio improved to 57.5%, better than the estimated 58.9%.
- Non-interest expenses increased slightly by 0.8% to €7.23 billion, under the forecast of €7.37 billion.
- BNP Paribas projects a return on tangible equity of 11.5% for the year, with net income expected to exceed €12.2 billion, higher than the estimate of €11.95 billion.
- For 2026, the bank forecasts a return on tangible equity of 12%.
- The company plans to pay an interim dividend of €2.59 in cash on September 30, 2025.
A look at BNP Paribas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
BNP Paribas S.A., a renowned financial institution, seems to have a promising long-term outlook based on its Smartkarma Smart Scores. With strong scores in dividend and momentum, the company is set to reward its investors with attractive returns and consistent growth. Additionally, BNP Paribas scores well in the value and growth categories, indicating a solid foundation for future success in the banking sector.
Despite facing some challenges in resilience, BNP Paribas remains a robust player in the market, offering a wide range of banking and financial services across various regions. Its ability to adapt to changing market conditions and maintain a high level of momentum highlights its potential for continued success in the long run. Investors looking for a reliable and growth-oriented financial institution may find BNP Paribas a compelling choice for their portfolios.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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