Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q4 2024 Earnings Presentation
40 slides from Bnp Paribas S.a. Class A's earnings presentation, Feb 4, 2025
Slide 1: Results Fourth Quarter and 2024 Full Year
RESULTS FOURTH QUARTER AND 2024 FULL YEAR 4 FEBRUARY 2025 2024 Full Year Results | 1
Slide 2: Disclaimer
DISCLAIMER The figures included in this presentation are unaudited. As a reminder, on 29 February 2024 BNP Paribas reported restated quarterly series for 2023 to reflect, in particular, the end of the build-up of the Single Resolution Fund (SRF), effective 1 January 2024, and the assumption of a sim
Slide 3: Section 1: Key points
SECTION 1 Key points 2024 Full Year Results | 3
Slide 4: 4th Quarter 2024: strong performances and solid financial structure
4TH QUARTER 2024 | We achieved strong performances and our financial structure is solid 4Q24 (€m) Chg. vs. 4Q23* 2024 (€m) Chg. vs. 2023* Strong revenue growth driven by our diversified model ⎯ Revenues 12,137 +10.8% 48,831 +4.1% • Excellent quarter at CIB (+20.1% vs. 4Q23) • Good performances at CP
Slide 5: 2024 Trajectory: We exceeded our 2024 objectives
2024 TRAJECTORY | We exceeded our 2024 objectives 1 Revenues 2 Jaws effect1 3 Cost of risk2 4 Net income3 2024 objectives > €11.2bn Growth > +2% Positive < 40 bps (2023 distributable net over 2023 revenues4 income) 2024 results +4.1% vs. 2023 +2.0 pts 33 bps €11.7bn ⎯ 2024 highlights ⎯ 4Q24 Net inco
Slide 6: 2025-2026 Trajectory: launching the last phase of our plan
2025-2026 TRAJECTORY | We are launching the last phase of our plan at full capacity 1 Revenues 2 Jaws effect1 3 Cost of risk 4 Net income2 5 EPS3 CET1 ratio pre-FRTB >+5% ~ +1.5 pts > +7% > +8% ~12.3% < 40 bps 24-26 CAGR4 on average per year 24-26 CAGR4 24-26 CAGR4 ⎯ The RoTE5 trajectory out to 2026
Slide 7: Distribution policy out to 2026 and semi-annual interim dividend
We confirm our distribution policy out to 2026 DISTRIBUTION | and introduce a semi-annual interim dividend ⎯ Confirmation of our 60% Pay-out ratio1 out to 2026 ⎯ Total dividend paid out in 2025 (date of payment) Dividends Share buyback* 2024 dividend* €4.79* 21 May 2025 Minimum 50% 10% 2025 interim
Slide 8: Section 2: 4Q24 and 2024 results, Group
SECTION 2 4Q24 and 2024 results Group 2024 Full Year Results | 8
Slide 9: Profit & Loss Statement
PROFIT & LOSS STATEMENT Chg. vs. Chg. vs. 4Q23 2023 Profit & loss statement (€m) 4Q24 4Q23 4Q23 2024 2023 2023 (distributable1) (distributable1) distributable1 distributable1 Revenues (NBI) 12,137 10,953 10,898 +10.8% 48,831 46,927 45,874 +4.1% Operating expenses -7,867 -7,545 -7,783 +4.3% -30,193 -
Slide 10: Exceptional Items
EXCEPTIONAL ITEMS 4Q23 2024 2023 4Q24 Exceptional items (€m) (distributable1) (distributable1) Provisions for litigation (Corporate Centre) -125 Revaluation of an equity stake (Global Markets, FICC) 78 78 Total revenues (a) 78 78 -125 Restructuring costs and adaptation costs (Corporate Centre) -87 -
Slide 11: Revenues: solid commercial performances in each division
REVENUES | 4Q24 was driven by solid commercial performances in each operating division ⎯ Group1 ⎯ Corporate & Institutional ⎯ Commercial, Personal Banking & ⎯ Investment & Protection Banking Services4 Services +4.7% Commercial & Specialised Personal Banking Businesses +10.8% +20.1% +7.7% -0.5% +8.4%
Slide 12: Operational Efficiency: positive jaws effect in 4Q24
OPERATIONAL EFFICIENCY | 4Q24 jaws effect positive at Group level and in each operating division ⎯ Group1 ⎯ Corporate & Institutional ⎯ Commercial, Personal Banking & ⎯ Investment & Protection Banking Services3 Services Commercial & +0.0% Specialised +4.3% Personal Banking Businesses 7,867 +7.0% +1.
Slide 13: Operational Efficiency: cost savings in line with trajectory
OPERATIONAL EFFICIENCY | Achieved cost savings are in line with the announced trajectory ⎯ Disciplined cost management and operational efficiency measures ⎯ Quarterly change +6.5 +2.1% 10.8% 660 -1,000 30,193 -0.4 +2.0 1,000 -187 +1.0 29,580 4.3% 140 3.9% 4.2% 4.1% 2.7% 1.7% 2.1% +1.1 -0,4% 2023 IFR
Slide 14: Cost of Risk under control
COST OF RISK | Cost of risk under control, thanks to the quality and diversification of the portfolio ⎯ Cost of risk1 / GOI2 – 2018-2025e ⎯ 4Q24 illustrates our conservative and proactive risk culture €18.5bn ⎯ Cost of risque ive du risk1 / Stock of customer loans 38 bps of which provisions €4.2bn o
Slide 15: Low cost of risk in 4Q24 in all business lines
COST OF RISK | Low cost of risk in 4Q24 in all business lines Cost of risk1 / customer loans outstanding at the beginning of the period (in bps); 4Q24 comments ⎯ CPBF ⎯ CPBB • €190m (+€48m vs. • €18m (-€19m vs. 4Q23) 41 4Q23) • Decrease in cost of risk 29 33 26 25 21 21 20 20 21 • Driven up by stage
Slide 16: Financial Structure: CET1 ratio at 12.9%
FINANCIAL STRUCTURE | The CET1 ratio stands at 12.9% as of 31.12.2024 ⎯ Change in the CET1 ratio between 30 September 2024 and 31 December 2024 CET1 12.9% 31.12.24 +30 bps + 10 bps 12,9% 12.7% 12,4% - 20 bps -50 bps LCR2 31.12.24 137% 10,33%1 CET1 Organic capital Distribution Securitisation Securiti
Slide 17: Sustainable Development: commitment to financing the transition
SUSTAINABLE DEVELOPMENT | We maintain our commitment to financing the transition ⎯ More than 75% of BNP Paribas’s financing of energy ⎯ Our commitment is reflected in the numbers and is based on a production is dedicated to low-carbon energies1 dedicated organization 90% €179bn in financing and supp
Slide 18: A Reinforced Internal Control Set-up
A REINFORCED INTERNAL CONTROL SET-UP An even more solid compliance, conduct and control set-up and ongoing insertion of reinforced conduct culture into daily operations • Ongoing improvement of the operating model for combating money laundering and terrorism financing • A standards-based, risk-adjus
Slide 19: Section 3: 4Q24 results, Operating Divisions
SECTION 3 4Q24 results Operating Divisions 2024 Full Year Results | 19
Slide 20: CIB: Very strong growth in 4Q24 revenues and results
CIB | Very strong growth in 4Q24 revenues and results CIB (€m) 4Q24 4Q23 Chg. • Global Banking – NBI: €1,704m (+10.8% vs. 4Q23) Revenues (NBI) 4,493 3,742 + 20.1% • Global Markets – NBI: €2,012m (+32.4% vs. 4Q23) Operating expenses -2,930 -2,740 + 7.0% FICC: €1,156m (+34.2% vs. 4Q23); Gross Operatin
Slide 21: CPBS: Good commercial performances in all business lines
CPBS | Good commercial performances in all business lines in 4Q24 CPBS1 (€m) 4Q24 4Q23 Chg. • Commercial & Personal Banking – NBI1: €4,351m (+7.7% vs. 4Q23) Revenues (NBI) 6,725 6,425 +4.7% • Commercial & Personal Banking in the euro zone – NBI: €3,470m (+1.7% vs. Operating expenses -4,129 -4,128 0.
Slide 22: IPS: Strong growth in assets under management
IPS | Strong growth in assets under management and improvement in IPS results in 4Q24 IPS (€m) 4Q24 4Q23 Chg. • Insurance – NBI: €536m (+13.4% vs. 4Q23) Revenues (NBI) 1,443 1,331 + 8.4% • Wealth Management – NBI: €426m (+10.8% vs. 4Q23) Operating expenses -927 -906 + 2.3% • Asset Management – NBI:
Slide 23: Section 4: 2025-2026 trajectory
SECTION 4 2025-2026 trajectory 2024 Full Year Results | 23
Slide 24: Macroeconomic Scenario: Assumptions
MACROECONOMIC SCENARIO | Assumptions ⎯ Moderate GDP growth in the euro zone (%) ⎯ Gradual normalisation of inflation in the euro zone 2.9% 2.8% 5.7% 2.4% 5.4% 4.1% 3.8% 2.9% 3.0% 1.3% 1.1% 1.1% 1.0% 2.1% 2.0% 2.4% 1.0% 2.3% 0.5% 1.1% 0.8% 0.8% 0.9% 1.2% 2023 2024 2025 2026 2023 2024 2025 2026 Euro z
Slide 25: 2025-2026 Trajectory: last stage of our plan at full capacity
2025-2026 TRAJECTORY | We are launching the last stage of our plan at full capacity 1 Revenues 2 Jaws effect1 3 Cost of risk 4 Net Income2 5 EPS3 CET1 ratio pre-FRTB >+5% ~+1.5 pts >+7% > +8% 24-26 CAGR4 on average per year < 40 bps 24-26 CAGR4 24-26 CAGR4 ~12.3% ⎯ Revenues growth outlook (24-26 CAG
Slide 26: CIB: winning market share with a unique client franchise (1/3)
CIB – We are winning market share with a unique client franchise, 2025-2026 TRAJECTORY | a low risk profile and are constantly optimising our capital (1/3) 2014-2016 2016-2020 2020 onwards Refocusing Deployment Growth & Profitability Strategic repositioning: Regions, Expanding cutting-edge services
Slide 27: CIB: winning market share with a unique client franchise (2/3)
CIB – We are winning market share with a unique client franchise, 2025-2026 TRAJECTORY | a low risk profile and are constantly optimising our capital (2/3) ⎯ Revenues: We have scaled up, as reflected by acceleration ⎯ Cost management: We have improved operational efficiency in revenue generation whi
Slide 28: CIB: winning market share with a unique client franchise (3/3)
CIB – We are winning market share with a unique client franchise, 2025-2026 TRAJECTORY | a low risk profile and are constantly optimising our capital (3/3) ⎯ Our Global Markets1 platform has scaled up with a low-risk profile Increase in average daily revenues: +57% (2024 vs. 2019) 24.2% Decrease in
Slide 29: CPBS: New strategic plan for CPBF and Personal Finance extension
CPBS – New strategic plan* for CPBF and extension of Personal 2025-2026 TRAJECTORY | Finance’s strategic plan out to 2028 ⎯ New strategic plan* for CPBF CPBF: 13% PF: 11% ⎯ Extension of Personal Finance's strategic 2024 Group’s RWA 2024 Group’s RWA plan to 2028 Corporates: accelerate client acquisit
Slide 30: CPBS: Euro zone revenues to benefit from new rate environment (1/2)
CPBS – Revenues at Commercial & Personal Banking in the euro zone 2025-2026 TRAJECTORY | will benefit from the new interest-rate environment (1/2) ⎯ Headwinds are no longer impacting growth in 2025 vs. 2024 ⎯ Reduced price signal on deposits with lower short-term rates and normalisation of the yield
Slide 31: CPBS: Euro zone revenues to benefit from new rate environment (2/2)
CPBS – Revenues at Commercial & Personal Banking in the euro zone will 2025-2026 TRAJECTORY | benefit from the new interest-rate environment (2/2) ⎯ In addition to fees, revenue growth expected in Commercial & Personal Banking in the euro zone will also be driven by net interest revenues (NII) Net i
Slide 32: IPS: strong organic growth and external growth projects (1/2)
IPS: we continue the strong organic growth in these highly profitable 2025-2026 TRAJECTORY | businesses and accelerate further through external growth projects (1/2) ⎯ IPS is a highly profitable division… ⎯ … which has developed in a disciplined manner +6.1 Pre-tax income growth High RoNE2 +5.2 +8.
Slide 33: IPS: AXA IM acquisition and external growth (2/2)
IPS: we continue the strong organic growth in these highly profitable 2025-2026 TRAJECTORY | businesses and accelerate further through external growth projects (2/2) ⎯ The planned AXA IM1 acquisition and partnership with AXA repositions IPS strategically within the Group • Price: €5.1bn Acceleration
Slide 34: CET1 Evolution
2025-2026 TRAJECTORY | CET1 Evolution ⎯ Trajectory by end of 2025 CET1 ~12.3% 31.12.25 12,9% ~+110 bps ~12.4% ~12,3% ~-80 bps ~-30 bps ~-50 bps ~ -10 bps CET1 Basel 4 impact CET1 Organic capital Distribution Axa IM + HSBC Wealth Model updates CET1 31.12.24 excl. FRTB 01.01.25 generation Management*
Slide 35: Conclusion
CONCLUSION We achieved a strong performance in the 4th quarter 2024 and more generally throughout 2024 Driven by the mobilisation of our teams and our powerful platforms we exceeded our 2024 objectives We are now launching the last stage of our plan with a strong momentum The 2025-2026 trajectory is
Slide 36: Endnotes (1/3)
ENDNOTES (1/3) • Slide 4 • Slide 7 1. Based on restatement of quarterly series reported on 29 February 2024. Results serving as 1. Payout ratio: Distribution rate to the shareholder as a percentage of the Group's net a basis for calculating the distribution in 2023 and reflecting the Group’s intrins
Slide 37: Notes (2/3)
NOTES (2/3) • Slide 14 • Slide 20 1. Cost of risk does not include “Other net losses for risks on financial instruments“ 1. RoNE: Pre-tax net income / Allocated equity (equity allocation at 11% of RWAs) 2. GOI: excluding exceptional items, excluding contribution of Bank of the West and 2023 Distribu
Slide 38: Notes (3/3)
NOTES (3/3) • Slide 26 1. Source: Coalition Greenwich Competitor Analytics, FY16-FY24F. Global CIB revenues in • Slide 32 EUR excluding Portfolio Management, rebased to 100 in 2016. FY24F as of December 19th, 2024. Analysis based on Coalition Greenwich Revenue Pool, and BNPP’s own 1. Subject to agre
Slide 39: Appendices: Presentation contents
APPENDICES | Presentation contents – Details by division and other items ⎯ Details by division (4Q24 and 2024) ⎯ Other items ⎯ CIB • 2024 key figures • Global Banking • 4Q24 and 2024 Simplified profit & loss statement • Global Markets • 2024 exceptional items • Securities Services • Corporate Centre
Slide 40: Contacts and Upcoming Events
CONTACTS AND UPCOMING EVENTS ⎯ Investor Relations ⎯ Upcoming events Bénédicte Thibord, Head of Investor Relations and Financial 24 April 2025 1Q25 earnings reporting date Information 24 July 2025 2Q25 earnings reporting date Equity 28 Oct. 2025 3Q25 earnings reporting date Raphaëlle Bouvier-Flory Li