Full Year 2025 BNP Paribas SA Earnings Call Transcript
Key Points
- BNP Paribas (BNPQF) reported a strong 8% revenue growth in the fourth quarter, with a 28% increase in net profit, reaching nearly €3 billion.
- The company's CT1 ratio improved to 12.6%, with a commitment to achieving a 13% target.
- BNP Paribas (BNPQF) announced a total dividend per share of €5.16 for 2025, indicating strong shareholder returns.
- The company is implementing a structural transformation plan aimed at reducing the cost-income ratio from 58% to below 56% by 2028.
- BNP Paribas (BNPQF) is leveraging AI to enhance efficiency, with anticipated benefits of approximately €750 million by 2026.
- The company faces ongoing litigation in Sudan, with an appeal process underway.
- There is uncertainty regarding the impact of the Fundamental Review of the Trading Book (FRTB) regulation, which could affect capital requirements.
- BNP Paribas (BNPQF) has a high cost-income ratio compared to some peers, indicating room for improvement in operational efficiency.
- The corporate center's performance was below expectations in the second half of 2025, impacting overall results.
- The company is cautious about accelerating disposals to build capital, which may delay reaching the 13% CT1 target.
So good afternoon ladies and gentlemen.
We are pleased to present today our strong 4th quarter results. And we'll provide some elements on our 28 trajectory which we are revising upwards given the strong revenue momentum and the launch of a transformation plan of our support functions.
We'll start with our results on slide 4.
So 4th quarter results confirmed the sharp acceleration we had expected.
Revenues posted a strong 8% growth.
Joe's effect was high at 2.9 points and even reaches 3.9 points when excluding AX IM.
Coast of free stayed low at 34 BPS, well within our trajectory of below 40 BPS.
And this led to a very strong 28% increase in net profit, approaching â¬3 billion which is a record for our fourth quarter.
Our CT1 reached 12.6%, up 10bps this quarter, and we remain committed to delivering on our target of 13%.
For 25 we would have paid a total dividend per share of 5 euros.16, including the final dividend of 2.57 to be paid in May.
If we focus on our revenues, they are
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