BNP Paribas achieved a record first-quarter net profit of €3.22 billion, surpassing analyst forecasts by 9%. This strong performance was primarily fueled by robust markets trading and the successful integration of AXA Investment Managers, contributing to an 8.5% rise in group revenues to €14.06 billion. The bank's gross operating income also climbed 13.7% to €5.35 billion, exceeding estimates.
While corporate and institutional banking revenues were stable at €5.24 billion, global markets revenues increased by 2.5% to €2.88 billion, with equities and prime services showing a notable 9.3% rise at constant rates. Investment and Protection Services revenues surged by 32.8% to €1.98 billion, largely due to the AXA IM consolidation, managing assets totaling €2.46 trillion.
Despite these strong results, performance was mixed across different business units. Auto-leasing solutions saw an 11.7% decrease in revenues to €742 million, and Jefferies flagged that the pre-tax income for the commercial, personal banking and services unit was 27% below its estimate. However, a €372 million pre-tax revaluation of the Allfunds stake helped offset some of these declines.
BNP Paribas maintained a Common Equity Tier 1 ratio of 12.8%, above the consensus estimate of 12.65%, and confirmed its 2028 targets, including a return on tangible equity exceeding 13% and annual net income growth of over 10% from 2025-2028. Chief Executive Jean-Laurent Bonnafé highlighted the record quarter as a result of good momentum and strategic plan implementation.
Operating expenses came in below estimates at €8.71 billion, leading to a cost-income ratio of 62% and a positive jaws effect of three percentage points. Jefferies analysts rated the stock a "buy" with a price target of €127, noting the corporate centre's contribution to pre-tax performance.
