BNP Paribas has reported a strong financial performance for 2024, with a net profit increase of 4.1% to 11.68 billion euros, driven mainly by its financing and investment banking division. The bank anticipates continued growth through the acquisition of Axa IM, projecting a 7% net income rise and a 5% revenue increase from 2024 to 2026. Cost-saving initiatives are expected to yield one billion euros, while investment and insurance sectors experienced a 4.2% revenue boost.
BNP Paribas Reports Strong Financial Performance in 2024
BNP Paribas has announced a remarkable increase in its revenues and net profit for the year 2024, all while gearing up for the anticipated acquisition of asset manager Axa IM in 2025. This trajectory is set to continue into 2026, reinforcing the bank’s solid growth strategy.
In its latest financial report, BNP Paribas revealed a net profit growth of 4.1%, reaching an impressive 11.68 billion euros, primarily fueled by the performance of its financing and investment banking division. The bank’s net banking income (NBI), which reflects its turnover, also saw a 4.1% rise, amounting to 48.83 billion euros.
CEO Jean-Laurent Bonnafé highlighted the bank’s robust performance in the fourth quarter of 2024, stating, “The group is achieving very good performance and exceeds its 2024 targets with a solid financial structure.” He expressed optimism about future growth, attributing it to the execution of the AXA IM acquisition and advancements in Wealth Management and Life Insurance.
Strategic Growth and Cost Efficiency
Last summer, BNP Paribas confirmed its commitment to acquiring the asset management arm of Axa for 5.4 billion euros, establishing a long-term partnership where BNP Paribas will deliver investment management services to Axa.
The bank’s future outlook remains promising, with expectations of an average net income increase of 7% and a 5% rise in revenues from 2024 to 2026. The Return on Tangible Equity (ROTE) is projected to reach 12% by 2026, up from 10.9% in 2024.
Cost savings for 2024 aligned with the forecast of one billion euros, with an additional 600 million euros in synergies anticipated by 2026, particularly through the optimization of the real estate portfolio. In a recent announcement, BNP Paribas Fortis revealed plans to integrate certain activities and personnel into a dedicated Belgian entity within Accenture starting in early 2026.
Delving into specifics, the financing and investment bank (FIB) generated revenues of 17.9 billion euros in 2024, marking an 8.4% increase and positioning itself as a significant growth driver. Meanwhile, commercial banks across France, Belgium, and Italy reported modest 2.3% growth, reaching 16.9 billion euros. Specialized sectors, such as car leasing with Arval and payment solutions with Nickel and Floa, faced a revenue drop of 2.6%, totaling 9.7 billion euros, largely due to the stabilization of used vehicle prices despite strong commercial performance.
On a brighter note, revenues from investment, insurance, and savings sectors witnessed a 4.2% increase, climbing to 5.8 billion euros, driven by a surge in insurance activities. BNP Paribas reaffirmed its commitment to a distribution policy of 60% of profits to shareholders, ensuring at least 50% is allocated to dividends for the fiscal years 2024, 2025, and 2026.