France's BNP Paribas Hikes Targets to 2028 — Update

By Elena Vardon

France's BNP Paribas upgraded its midterm targets as it banks on cost-cutting and profit-boosting initiatives already underway to drive growth through 2028.

The eurozone's largest lender in terms of assets on Thursday nudged up its target for return on tangible equity--a key profitability metric--to more than 13% in 2028, compared with around that figure previously. This marks an increase from the 11.6% return it reported for 2025 and from its guidance of a 12% return in 2026.

The Paris-based bank also improved its efficiency guidance, now forecasting a cost-to-income ratio below 56% against a previous target of around 58%. For comparison, the ratio stood at 61.2% in 2025.

The group also said it expects net income group share to grow more than 10% annually between 2025 and 2028, accelerating from its 7% aim set for the 2024 to 2026 period. This growth will support increased shareholder returns leading up to 2028, it said.

Regarding capital strength, BNP Paribas targets a common equity tier 1 ratio of 13% in 2027 and 2028--up from 12.6% in 2025--and confirmed distributing excess capital above that threshold starting in 2027.

The updated outlook was published alongside its fourth-quarter earnings, which beat expectations. Chief Executive Jean-Laurent Bonnafe attributed the guidance, as well as the confirmation of its 2026 objectives, to a structurally favorable interest-rate environment and its strong 2025 results.

For the three months ended Dec. 31, net profit grew 28% on-year to 2.97 billion euros ($3.51 billion), while revenue was up 8% at 13.11 billion euros. Growth was partly driven by the integration of AXA Investment Managers in its insurance and protection services division, the continued recovery of its retail operations and strength in its investment banking activities. Costs increased 5.2% to 8.275 billion euros, it said.

The results surpassed company-compiled consensus estimates, which had forecast 2.835 billion euros in net profit, 12.86 billion euros in revenue, and 8.20 billion euros in expenses and depreciation.

BNP Paribas proposed a 5.16 euro total dividend for the year, up 7.7%. It already launched a 1.15 billion euro share buyback program on 2025's earnings last November.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

February 05, 2026 01:31 ET (06:31 GMT)