Q3 2025 BNP Paribas SA Earnings Call Transcript
Key Points
- BNP Paribas (BNPQF) reported a solid third quarter with revenues up 5.3%, confirming their target of over EUR12.2 billion net profit for 2025.
- The company's operating divisions, excluding AXA IM, showed a 3.5% revenue increase, with a strong 4.9% growth at constant exchange rates.
- CIB revenues posted another record year, driven by global markets and Security Services, with a 7% increase at constant exchange rates.
- The integration of AXA IM is expected to generate EUR550 million in revenue and cost synergies by 2029, significantly boosting the group's financial trajectory.
- BNP Paribas (BNPQF) maintains a strong CET1 ratio at 12.5%, absorbing the impact of the AXA IM acquisition and exceeding their pre-FRTB target of 12.3%.
- BNP Paribas (BNPQF) is facing ongoing litigation in the US related to old banking services, which could potentially impact future financial results.
- The company's cost of risk remains at 39 basis points, within guidance but indicating a challenging environment.
- FX impacts and DVA swings negatively affected revenues, contributing to a lower-than-expected revenue growth of 2.4% in the third quarter.
- The global banking division underperformed expectations, with revenues down 4% quarter-on-quarter and 3% year-on-year, partly due to regional market dynamics.
- The integration of AXA IM involves significant restructuring costs, with EUR690 million expected, impacting short-term profitability.
Good afternoon, ladies and gentlemen. Before we move on to the quarter's results, I would like to just take a moment to share some context related to the decision issued by the civil court in the US case and how we see things moving forward.
So this morning, first, we made a public statement, which explain our position on this matter. This verdict is in connection with very old facts relating to banking services that BNP Paribas provided more than 15 years ago. We are highly confident that our planned appeal will demonstrate that this judgment was incorrect. US law has allowed and the court has decided to apply Swiss law to this case.
And evidence of such Swiss law has not been allowed to be presented. This application of Swiss law has been confirmed by the Swiss government itself. The applicable laws don't led to liability acquisition in this case.
The banking services that the bank provided didn't cause plaintiffs prejudice and no evidence has been
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