- BNP Paribas reported a 4Q net income of €2.32 billion, significantly higher than the previous year’s €1.07 billion and surpassing estimates of €2.29 billion.
- Total revenue reached €12.14 billion, an increase of 11% year-over-year, exceeding the forecasted €11.68 billion.
- Corporate and Institutional Banking (CIB) revenue was €4.49 billion, up 20% from last year, beating expectations of €4.03 billion.
- Global Markets revenue surged 32% to €2.01 billion, above the predicted €1.73 billion.
- Fixed Income, Currencies, and Commodities (FICC) sales & trading revenue was €1.16 billion, a 34% increase, outpacing the estimate of €969.9 million.
- Equity & Prime Services revenue rose 30% to €856 million, surpassing the expected €764.3 million.
- Commercial, Personal Banking & Services revenue grew 4.7% to €6.55 billion, slightly above the projected €6.37 billion.
- Investment & Protection Services revenue was €1.44 billion, an 8.4% rise, though slightly below the anticipated €1.47 billion.
- The common equity Tier 1 ratio was 12.9%, slightly above the estimate of 12.8%.
- Return on tangible equity (RoTE) stood at 10.9%.
- Pre-tax income more than doubled to €3.34 billion, ahead of the expected €3.27 billion.
- Provision for loan losses decreased by 9.7% to €878 million, just under the estimate of €881.6 million.
- The cost-to-income ratio improved to 64.8% from 71.4% last year, better than the estimated 65.4%.
- Non-interest expenses rose slightly by 1.1% to €7.87 billion, exceeding the forecasted €7.64 billion.
- The dividend per share for 2024 was set at €4.79, slightly higher than the projected €4.72.
- BNP Paribas forecasts a return on tangible equity of 11.5% in 2025 and 12% in 2026.
- They plan a share buyback program of €1.08 billion in the second quarter of 2025.
- The Pre-FRTB CET1 ratio is expected to be approximately 12.3% by the end of 2025 and 2026, following ongoing acquisitions.
- The bank aims for a cost of risk below 40 basis points in 2025 and 2026.
- BNP Paribas projects net income and earnings per share growth rates greater than 7% and 8% respectively from 2024 to 2026.
BNP Paribas on Smartkarma
BNP Paribas is receiving positive analyst coverage on the independent investment research network Smartkarma. According to Value Investors Club, the insight report titled “Bnp Paribas Fortis (BE0933899800) – Thursday, Aug 8, 2024” suggests investing in FBAVP Perp (CASHES) at 92c with a coupon of E+2% (~5.5%), offering a base yield of 6%. The report highlights the potential for a double-digit Internal Rate of Return (IRR) with an expected redemption at par in the near term. Additionally, it mentions that non-compliance with bank capital regulations could trigger forced redemption, providing bondholders with a pull-to-par on top of the coupon.
This valuable insight from top independent analysts provides investors with key information on BNP Paribas‘ investment prospects. The sentiment leans towards bullish as the analysis points out the attractive yield and potential for a lucrative return on investment. Investors can leverage this research report to make informed decisions regarding their investments in BNP Paribas. This content, sourced from publicly available information and originally published by Value Investors Club, serves as a valuable resource for those interested in understanding the financial landscape of BNP Paribas.
A look at BNP Paribas Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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. is positioned for a steady long-term performance based on the Smartkarma Smart Scores assessment. With strong scores in Dividend and Momentum, the company shows promise in providing attractive returns to investors while maintaining a positive growth trajectory. The Value and Growth scores further solidify BNP Paribas‘ position as a potentially lucrative investment option in the banking sector. However, the lower resilience score indicates a slight vulnerability to market fluctuations, which investors should consider in their decision-making process.
BNP Paribas S.A., a leading banking institution offering a wide range of financial services across multiple regions, presents a compelling investment opportunity. With a focus on value, growth, and dividends, the company showcases its commitment to delivering shareholder value while navigating market trends. While the resilience score is on the lower end, the strong momentum suggests an upward trajectory for BNP Paribas in the long term, making it an attractive prospect for investors seeking stability and growth in the banking sector.
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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