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BNP Paribas to Return Around $22 Billion to Shareholders Through 2026 — Update

By Adria Calatayud


BNP Paribas said it aims to return about 20 billion euros ($21.86 billion) to shareholders between 2024 and 2026, becoming the latest European bank to splash out on payouts.

The French bank on Wednesday said it planned to accelerate and widen an existing cost-savings plan by EUR400 million, raising its target for the 2022-25 program to EUR2.7 billion.

With its plans to boost shareholder returns, BNP Paribas joins other European banks that have ramped up dividends and buybacks even as they brace for potential cuts to interest rates. Italy's UniCredit, the U.K.'s Barclays and Germany's Deutsche Bank are among the banks that outlined plans to return more cash to shareholders in recent weeks.

BNP Paribas said it expects 2024 net profit will be higher than 2023 distributable net profit. The bank last month said it targeted annual growth in net profit of around 8% for the 2022-25 period.

It also confirmed its profitability targets, which call for a return on tangible equity--a key measure of profitability for banks--of between 11.5% and 12% in 2025 and of 12% a year later.

This profit trajectory should enable the group to boost shareholder returns to EUR20 billion, BNP Paribas said. When it reported fourth-quarter results in February, BNP Paribas said it would launch a share buyback of EUR1.05 billion in 2024 and raised its 2023 dividend by 18% to EUR4.60 a share.

The bank said it expects to continue to grow faster than its underlying economy and to gain market share.


Write to Adria Calatayud at


(END) Dow Jones Newswires

March 13, 2024 03:43 ET (07:43 GMT)

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