BNP Raises Profitability Targets, to Launch $1.33 Billion Buyback
By Adam Whittaker
BNP Paribas raised its profitability targets and said it would launch a 1.15 billion-euro ($1.33 billion) share buyback.
The French financial services group said it would accelerate the disposal of nonstrategic assets while delivering growth from risk-weighted assets of around 2% a year in a push to grow profits.
As part of its plan, BNP on Thursday raised its common equity Tier 1 ratio, a measure of a bank's resilience, target to 13% by 2027. The ratio stood at 12.5% at the end of the third quarter.
It also confirmed a rise in its return on tangible equity target to 13% by 2028, representing a 2.1 percentage-point increase from 2024, it said.
Lowering costs will play a key role in its drive to boost profitability, and it will target a cost-to-income ratio of 61% in 2026 before the target falls to 58% in 2028.
BNP said that it would launch 1.15 billion-euro share buyback this month.
The company said it would publish its outlook through to 2028 alongside the publication of its 2025 results. A medium-term plan covering 2027 to 2030 will be presented in early 2027.
Write to Adam Whittaker at adam.whittaker@wsj.com
(END) Dow Jones Newswires
November 20, 2025 01:46 ET (06:46 GMT)
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