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BNP Paribas Exceeds Targets Early, Boosts Payouts
24 Jul
Summary
- Revenue grew 12% year-over-year, reaching a decade high.
- CET1 ratio hit 13%, achieving a target 18 months early.
- Interim dividend declared at EUR3.23, 50% of H1 2026 EPS.
BNP Paribas announced strong financial results for the second quarter of 2026, with revenue climbing 12% year-over-year to reach a ten-year high. The bank's CET1 ratio reached 13%, a significant milestone achieved 18 months earlier than projected, enabling accelerated capital distributions.
Operating income demonstrated a substantial increase of nearly 16%, reflecting positive performance across its diverse business segments. This robust performance has put BNP Paribas on track to surpass its 2026 objectives and aims for double-digit EPS growth from 2025 to 2028.
The company declared an interim dividend of EUR3.23 per share, equivalent to 50% of its first-half 2026 earnings per share. Despite a stable cost of risk at 39 basis points, provisions increased by EUR95 million due to geopolitical factors, and Arval's results were impacted by market volatility. Significant restructuring charges are anticipated for the corporate center.
In the Q&A session, CEO Jean-Laurent Bonnafe attributed strong Global Markets performance, particularly in equities, to market volatility and strategic investments. He also noted the increase in the LCR ratio to 149% was in preparation for the Athlon integration, while Arval maintained a conservative approach to residual values.
