BNP Paribas - ADR - Level I

Strong Q1 Performance: BNP Paribas reported a 3.8% increase in revenues for Q1 2025, with operating divisions seeing a 6.1% rise. The Corporate and Institutional Banking (CIB) division excelled with a 12.5% revenue growth, driven primarily by Global Markets, which rose by over 17%. Positive jaws of 1.9 points were achieved with a 6.7% growth in operating income.

Outlook for Growth: The bank maintains an ambitious trajectory with a target of 11.5% return on tangible equity (RoTE) for 2025, gradually increasing to 12% by 2026. They anticipate an annual growth rate of over 7% for net income and over 8% for earnings per share (EPS). The expected improvements are linked to strategic shifts in Corporate Banking, ongoing cost control measures, and cross-selling among divisions.

Cost Savings Initiatives: BNP Paribas is on track to achieve €600 million in cost savings for 2025, having implemented €190 million already in Q1. This focus on efficiency helps to offset inflationary pressures, with a cost of risk projected to remain moderate at 33 basis points, well below their guidance of below 40 basis points.