BNP Paribas Posts Strong Q4 Earnings, Lifts Long-Term Targets Amid Market Caution
BNP Paribas, Europe's leading banking group, delivered a powerful finish to its fiscal year, announcing on Thursday a significant surge in fourth-quarter net income. The lender reported a profit of €2.97 billion ($3.5 billion) for the period, marking a sharp 28% increase from the €2.32 billion recorded a year earlier.
The performance was bolstered by a 19.3% rise in operating income to €3.97 billion. Group revenues, or net banking income, climbed 8% to €13.11 billion, with the core operating divisions collectively seeing a 7.8% uplift. For the full year, operating income reached €16.3 billion, a 5.6% increase from the previous year, on revenues of €51.22 billion.
In a move signaling confidence in its strategic trajectory, BNP Paribas not only reaffirmed its 2026 objectives but also raised its financial targets for 2028. The bank now projects average annual growth in net income—group share—to exceed 10% between 2025 and 2028, a notable acceleration from its previous 7% target for the 2024-2026 period. This outlook translates to anticipated double-digit annual growth in earnings per share, which stood at €10.29 for the year, up 7.5%.
The upgraded guidance reflects management's belief in the bank's diversified business model and cost-control measures, even as the broader European banking sector navigates interest rate uncertainties and economic headwinds. However, investor reaction remained tempered; shares in BNP Paribas closed at €90.93 in the previous session, down 1.08%.
Market Voices:
"These results demonstrate the resilience of our diversified franchise," said Claire Dubois, a portfolio manager at Lyon-based Financière Mont Blanc. "The raised 2028 targets are ambitious but achievable, given their strong capital position and leadership in European retail banking."
Thomas Reinhart, a Frankfurt-based independent financial analyst, offered a more measured take: "The quarterly beat is impressive, but the real test is sustaining this momentum. The new targets bake in a very optimistic view of the economic environment. I'd like to see more detail on how they'll manage credit quality if growth slows."
Striking a sharper tone, Elaine Carter, a columnist for a financial blog, commented: "Yet another bank boasting record profits while everyday customers grapple with higher fees and loan rates. This 'acceleration' in targets feels like a promise to shareholders built on the backs of consumers. Where's the comparable acceleration in social value or support for small businesses?"