• BNP Paribas 1Q net income came in at EU3.10 billion, down 30% year-on-year, surpassing an estimate of EU2.48 billion
• Revenue grew by 3.7% year-on-year to EU12.48 billion, slightly higher than the estimated EU12.23 billion
• Corporate and Institutional Banking (CIB) revenue amounted to EU4.68 billion, down by 4% year-on-year, beating an estimate of EU4.66 billion
• Global Markets revenue amounted to EU2.44 billion, constituting a year-on-year drop of 12%, and came shy of the estimate of EU2.5 billion
• Fixed Income, Currencies, and Commodities (FICC) sales and trading revenue was reported at EU1.60 billion, 20% lower than last year and below the estimated EU1.74 billion
• Equity and Prime Services revenue rose by 11% from last year to EU830 million, surpassing the estimated EU793.5 million
• Investment and Protection Services revenue edged up by 0.8% year-on-year to EU1.42 billion, slightly below the estimated EU1.45 billion
• The common equity Tier 1 ratio was 13.1%, slightly lower than the estimated 13.2%
• Return on Tangible Equity was reported at +12.4% versus +14.1% year-on-year
• Pre-tax income surged by 84% from last year to EU4.36 billion, significantly higher than the estimated EU3.5 billion
• Provision for loan losses amounted to EU640 million, up by 8.1% from last year, but lower than the estimated EU858 million
• The Cost to Income Ratio was reported at 63.6%, lower than last year’s 76.4% and the estimated 66.2%
• Non-interest expenses dropped by 14% from the previous year to EU7.94 billion, below the estimated EU8.15 billion
• BNP Paribas expects FY revenue to be more than 2% higher than 2023 distributable revenue
• The bank anticipates a positive jaws effect for FY
• It also forecasts a FY cost of risk below 40 basis points
• The bank still anticipates FY net income to be higher than 2023 distributable net income
• It also continues to see a 2025 cost of risk below 40 basis points.
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, a multinational bank, has received a mix of Smart Scores across different factors. With a strong focus on dividends, the company has been rated the highest score of 5, indicating a favorable outlook for dividend payouts. Additionally, BNP Paribas also scores well in value and growth categories, receiving scores of 4 in both areas, signifying a solid performance in terms of value and growth potential. Momentum is another positive factor for the company, with a score of 4 suggesting a good trend in the company’s market performance.
However, BNP Paribas faces a challenge in the resilience aspect, as it has been rated a score of 2, indicating some vulnerabilities in this area. Despite this, the overall outlook for BNP Paribas appears bright, with strong scores in dividend, value, growth, and momentum, showcasing the company’s potential for long-term success in the banking sector.
Summary: BNP Paribas S.A. is a leading bank offering a wide range of banking services, asset management, and investment advisory services to clients across Europe, the United States, Asia, and Emerging Markets.
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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