Paris, Feb 5, 2026, 14:54 CET — Regular session
- BNPP.PA climbed 1.8% to 92.59 euros following the bank’s upward revision of its 2028 profit targets
- Management highlighted an additional 600 million euros in recurring savings targeted for 2026
- Investors focus on ECB rate signals and BNP’s Feb. 9 appeal in Sudan-related legal case
BNP Paribas shares gained 1.8% on Euronext Paris, closing at 92.59 euros Thursday. The bank beat profit forecasts and lifted its mid-term targets. During the session, the stock fluctuated between 92.55 and 95.50 euros. (Investing)
The results arrive amid a busy week for European bank earnings, as investors probe if the recent rally in lenders can extend further. “Anything less is going to be punished in the share price,” warned Craig Cameron, portfolio manager at Templeton Global Equity Group. (Reuters)
Bank stocks continue to watch interest rates closely. On Thursday, the European Central Bank held its deposit rate steady at 2%, following a drop in inflation to 1.7%. Investors are now on edge, looking for clues about the bank’s next move. (Reuters)
BNP reported net income for the quarter ended December up 28% year-on-year, hitting 2.972 billion euros. Revenue increased 8% to 13.1 billion euros. The bank raised its 2028 return on tangible equity target — a key profitability metric excluding intangibles — to above 13%, while cutting its cost-to-income ratio goal to under 56%. It also flagged an additional 600 million euros in recurring savings for 2026, pushing total planned savings from 2022 to 2026 to 3.5 billion euros.
BNP Paribas CEO Jean-Laurent Bonnafé told reporters the bank plans to use artificial intelligence as a “diamond-tipped tool,” applying it only where it “makes sense.” He called AI “really expensive,” saying BNP will roll it out selectively while hunting for cost cuts in support functions. Shares in BNP climbed nearly 5% earlier, according to Reuters data. (Reuters)
The higher targets are crucial as they directly influence how much cash BNP expects to return to shareholders. The bank has committed to distributing at least 60% of net profits from 2027 onward through dividends and buybacks. It also plans to free up surplus capital once its core CET1 ratio—a key indicator of bank capital strength—hits 13%. (Financial Times)
BNP stands as a key player. Its dealmaking fees fell 4% in Q4, though global markets revenue climbed 3%. The bank is still battling U.S. competitors, who saw much sharper growth last year, the Financial News noted. (F N London)
Investors remain focused on the legal overhang. BNP plans to submit its notice of appeal by Feb. 9 in the Sudan-related case underway in the U.S. (Invest)
Cost cutting carries risks, too. Savings can evaporate if spending climbs on compliance, technology, and staffing. Plus, markets revenue usually weakens when volatility fades. That leaves less margin for error if credit losses increase.
BNP’s first-quarter results drop April 30, with investors keen to see if stricter cost controls are making an impact on the figures. (Invest)
