BNP Paribas Aims for Enhanced CET1 and Profit Growth by 2027

BNP Paribas has set an ambitious objective to elevate its Common Equity Tier 1 (CET1) ratio to 13% by 2027, showcasing a strong commitment to enhancing capital and fostering sustainable growth. The bank's framework revolves around robust profitability, strategic development, and effective asset management to achieve this objective.

This CET1 target is underpinned by three key elements: improved group profitability driving capital creation, a gradual rise in risk-weighted assets of approximately 2% annually, and an accelerated phase-out of non-core assets. This balanced approach showcases a commitment to both growth and financial stability.

Emphasis on Profitability

The bank has declared a Return on Tangible Equity (ROTE) goal of 13% by 2028, indicating a 210 basis point increase from 2024. Approximately two-thirds of this improvement is anticipated from ongoing strategic efforts across CPBF, Personal Finance, CPBB, and Asset Management, which together account for a third of BNP Paribas’ risk-weighted assets. Remaining enhancements are expected from other strategic sectors aimed at disciplined, efficiency-led growth.

Focus on Cost Efficiency and Capital Strategy

BNP Paribas is concentrating on operational efficiency, targeting a cost/income ratio reduction to 61% by 2026 and further down to 58% by 2028. This highlights the bank’s resolve for sustainable cost management while promoting growth.

Surplus capital beyond the targeted 13% CET1 ratio will be evaluated annually and distributed to shareholders. Along these lines, BNP Paribas plans to initiate a €1.15 billion share buyback program in November 2025, contingent upon 2025 earnings allocations approved by the ECB.

Further insights into the bank's growth and profitability plans through 2028 will be unveiled with its upcoming 2025 results, alongside a detailed 2027-2030 strategy expected early in 2027. These initiatives emphasize BNP Paribas' commitment to maintaining strong financial performance alongside a disciplined capital and risk management strategy.