BNP Earnings: Solid Performance and Strategic Focus on Fee-Generating Businesses; Shares Undervalued

No-moat BNP Paribas delivered solid 2024 results, posting EUR 48.8 billion in revenue and EUR 11.7 billion in net income, representing 4.1% year-over-year growth for top- and bottom-line figures—exceeding our expectations. The bank outlined its new two-year growth trajectory, targeting an average annual revenue increase of 5%, which is in line with our model, including a 1% contribution from the upcoming AXA Investment Management acquisition, expected to close in mid-2025. We maintain our EUR 85/share fair value estimate and view shares as undervalued.