Paris, 5 February – France’s largest bank, BNP Paribas, has reported stronger-than-expected profits for the fourth quarter, while reaffirming its commitment to further cost reduction measures. The announcement comes as the bank seeks to balance growth with operational efficiency in a challenging global financial environment.
Chief Executive Officer Jean-Laurent Bonnafé highlighted that artificial intelligence (AI) will play a targeted role in the bank’s strategy. “We are investing in AI only where it truly adds value,” Bonnafé told journalists. “It is an extremely costly technology, but when applied selectively, it serves as a ‘diamond-tipped tool’ for reducing expenses and streamlining administrative processes.”
The bank reported a net profit of €2.97 billion (approximately $3.51 billion) for the fourth quarter, marking a 28% increase compared with the same period last year and exceeding analysts’ consensus estimate of €2.84 billion. Following the announcement, BNP Paribas shares rose by as much as 5%, extending a gain of nearly 40% since November.
Looking ahead, BNP Paribas has set ambitious targets for 2028, aiming to deliver a return on tangible equity (RoTE) exceeding 13% and to reduce its cost-to-income ratio below 56%. The bank plans an additional €600 million in cost savings in 2026 alone, which will increase cumulative recurring savings from 2022 to 2026 to €3.5 billion.
Key Financial Targets (2025–2028)
| Indicator | Previous Target | New Target |
|---|---|---|
| Return on Tangible Equity | 13% | >13% |
| Cost-to-Income Ratio | ~58% | <56% |
| Annual Net Profit Growth | — | >10% |
In commercial banking, net interest margins rose by 6.3% in France and 17% in Belgium. Conversely, revenues from investment banking—including fixed income, currency, and commodity trading—grew by a modest 0.8%, lagging behind competitors such as Deutsche Bank and Wall Street peers.
On legal matters, BNP Paribas confirmed it will file an appeal by 9 February in New York regarding a jury verdict related to Sudan. Bonnafé emphasised that the bank does not intend to pay “an extraordinary amount” in connection with the case.
For shareholders, BNP Paribas announced a 2025 cash dividend of €5.16 per share, with the final installment of €2.57 scheduled for payment in May.
With strong quarterly results, a clear roadmap for cost efficiency, and cautious adoption of AI, BNP Paribas is signalling both resilience and strategic prudence as it positions itself for sustainable growth in the coming years.