The financial services group said it was in discussions to sell its 67% stake in BMCI to Holmarcom, which already is a shareholder in the Moroccan bank.
BNP Paribas faces headwinds from Sudan litigation and French politics, weighing on near-term sentiment. The Group Q3 results were strong, with accelerating sales and AXA IMI acquisition progressing well. The company announced new targets: 13% CET1 by 2027, cost-income ratio improvements, asset disposals, and a €1.15 billion share buyback, signaling confidence in fundamentals.
BNP Paribas reported solid Q3 2025 results, benefiting from a mix of organic and inorganic growth following the acquisition of AXA's asset management business. This puts the bank on track to reach its 11.5% profitability target in 2025, with an incremental improvement to 13% envisioned over the medium term. Against this backdrop, the shares trade at a significant discount to European banking peers, providing investors with a sizable margin of safety.
BNP Paribas has been a frustrating performer since my last piece, falling by around 10% and significantly underperforming the wider European financials space. This has been driven by French political inertia, the loss of a recent court case, and higher than expected credit charges in Q3. The latter was driven by suspected fraud. The bank's third quarter and year-to-date credit charges remain within management's initial 2025 guidance. Furthermore, BNP hasn't been leaning on this line to support its profitability.
The eurozone's largest bank in terms of assets reported a net profit 6.1% ahead of what it reported a year prior.
Q2 results were solid, but the cost of risk rose to 38 bp with extra Stage 1–2 provisions. With the ECB easing, the net interest income will likely to soften. French policy uncertainty/deficit execution risk may lift the risk premium and curb loan growth. Despite resilient earnings, BNP Paribas's below-average capital buffers and return on tangible equity justify an equal weight rating.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does BNP Paribas (BNPQY) have what it takes?
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does BNP Paribas (BNPQY) have what it takes?
European banks have delivered strong returns since 2018, outperforming US peers and benefiting from improved balance sheets and higher interest rates. Despite high past returns and growing optimism, caution is warranted due to the sector's cyclical nature and slowing eurozone growth projections. Valuations remain attractive, with many banks trading below book value and offering appealing dividend and shareholder yields, especially in France and Spain.
Dividends are one of the best benefits to being a shareholder, but finding a great dividend stock is no easy task. Does BNP Paribas (BNPQY) have what it takes?
BNP Paribas Q2 Earnings: Signs Of Recovery In French Retail Banking
BNP Parisbas CFO Lars Machenil discusses the impact of geopolitical uncertainty on earnings and how the bank's clients are reacting.