BNP Paribas profit rises 13.5 per cent as equities trading grows
The French bank announced a €1.3 billion share buyback from November and said its exposure to French government debt posed limited capital risks.
BNP Paribas posted third-quarter net income of €3.46 billion, a 13.5 per cent increase from a year earlier, helped by stronger equities trading. Profit exceeded the €3.23 billion average forecast in the bank’s analyst survey.
Group revenue increased by 9.5 per cent, reaching €13.76 billion. Corporate and institutional banking generated €5.2 billion, a gain of 16.6 per cent. Within that division, equity and prime services revenue rose by 50 per cent to €1.46 billion, while fixed income, currencies and commodities trading remained flat at €1.22 billion.
The bank said its €1.3 billion buyback had received European Central Bank approval and would begin in November, ahead of the distribution of 2026 profits. It also reaffirmed targets through 2028, including a return on tangible equity of 12 per cent this year and above 13 per cent in 2028.
Addressing France’s fiscal difficulties, BNP said it owned around €19 billion in French sovereign bonds. About €16 billion was recorded at amortised cost, insulating its capital from changes in those bonds’ market value. The bank estimated that another 0.5 per cent widening of the French-German bond yield gap would reduce its CET1 capital ratio by about 0.02 points.
There were weaker areas: revenue at Arval and Leasing Solutions fell by 29.1 per cent as used-car prices declined. Provisions for potentially unpaid loans reached €964 million, equivalent to 39 basis points of customer loans, against guidance below 40 basis points for 2026.
BNP’s CET1 ratio was 12.9 per cent at September’s close. The bank expects it to exceed 13 per cent by year-end, helped by selling its Moroccan subsidiary BMCI.
