Group 1 - BNP Paribas has been designated as a Global Systemically Important Bank (G-SIB) in bucket 2 based on end-2023 data [1] - The G-SIB buffer requirement for BNP Paribas remains at 1.5% of total risk-weighted assets starting from January 1, 2025, unchanged from the current level [2] - As of September 30, 2024, BNP Paribas has a CET1 ratio of 12.7%, a Tier 1 ratio of 14.7%, and a Total Capital ratio of 16.7%, indicating strong capital levels above regulatory requirements [2] Group 2 - BNP Paribas is the leading bank in the European Union, operating in 63 countries with nearly 183,000 employees, over 145,000 of whom are in Europe [3] - The Group has key positions in three main fields: Commercial, Personal Banking & Services; Investment & Protection Services; and Corporate & Institutional Banking [3] - BNP Paribas is expanding its integrated commercial and personal banking model across several Mediterranean countries, Turkey, and Eastern Europe, while maintaining a strong presence in the Americas and a growing business in Asia-Pacific [3] - The Group has implemented a Corporate Social Responsibility approach across its activities, contributing to a sustainable future while ensuring performance and stability [3]

Group 1 - BNP Paribas SA's third quarter results were poorly received by the market, leading to a decline of approximately 5% in share price on the day of the announcement [1] - The stock has experienced a disappointing year-to-date performance, with American Depositary Shares (ADSs) showing a lack of growth [1] Group 2 - The article reflects a long-term investment approach, focusing on stocks that can sustainably deliver high-quality earnings, particularly in the dividend and income sectors [1]

Financial Data and Key Metrics Changes - The net income group share for Q3 2024 reached €2.9 billion, marking a strong quarter with a 5.9% year-on-year increase [4][8] - Revenues increased by 2.7% compared to Q3 2023 on a distributable basis, with gross operating income up 4.2% at €4.7 billion [4][18] - Operating income rose 4.1% to nearly €4 billion, and earnings per share (EPS) increased by 11.2% [8][18] - The cost of risk remained stable at 32 basis points, indicating the strength of the credit portfolio [8][44] - The core Equity Tier 1 ratio stood at 12.7%, above the regulatory requirement [9][46] Business Line Data and Key Metrics Changes - Corporate and Investment Banking (CIB) saw a revenue increase of 9% year-on-year, driven by strong performance in global markets [5][20] - Commercial and Personal Banking Services (CPBS) generated stable revenues, with a 1.6% increase in France [5][25] - Investment and Protection Services (IPS) revenues rose by 4.9%, supported by insurance and asset management [6][34] - Arval experienced a decline in revenues due to the normalization of used car prices, down 35% year-on-year, but organic business growth was up 15% [31][32] Market Data and Key Metrics Changes - The Eurozone commercial banking outlook is improving, with a favorable shift in the interest rate environment [13][25] - The headwinds affecting business growth are expected to diminish, with a positive trend observed in Q3 [14][25] - The competitive landscape in Belgium remains challenging, impacting margins due to intense competition [29][30] Company Strategy and Development Direction - The company is focused on operational efficiency, achieving €655 million in savings by the end of September, with a target of €1 billion for the full year [7][43] - The strategic acquisition of AXA Investment Management aims to enhance the IPS division and create synergies across business lines [10][11] - The company plans to redeploy capital from the sale of Bank of the West to support organic growth in high-potential areas [53][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of the French and Belgian banks, targeting growth above 3% for 2025 [62][63] - The normalization of used car prices is expected to impact Arval until Q4 2025, but overall business growth remains strong [15][31] - The company anticipates a pivot in Eurozone retail banking revenues, with improvements expected in Q4 and beyond [94][91] Other Important Information - The company is on track to meet its CET1 target of 12% by the end of 2025, supported by organic capital generation and balance sheet securitization [50][51] - The operational efficiency program is expected to yield cumulative savings of €2.7 billion by the end of 2025 [43] Q&A Session Summary Question: Concerns about Equities and Prime Services performance - Management acknowledged the strong year-to-date performance but noted that Q3 was affected by seasonal factors and market dynamics [56][59] Question: Growth levers for 2025 and 2026 - Management highlighted CIB and IPS as key growth areas, with expectations for positive contributions from Personal Finance and commercial banking in the Eurozone [62][64] Question: Dynamics in French retail banking - Management explained that high short-term rates have negatively impacted margins, but these headwinds are expected to dissipate next year [70][72] Question: AXA deal synergies - Management indicated that while the AXA deal will contribute positively to earnings, there may be initial restructuring costs [97] Question: Fourth quarter performance expectations - Management expressed confidence that Q4 will not repeat the previous year's poor performance, citing improved market conditions [100]

Investors with an interest in Banks - Foreign stocks have likely encountered both BNP Paribas SA (BNPQY) and National Australia Bank Ltd. (NABZY) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank em ...

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Kindly note that our content on Seeking Alpha and other platforms doesn't constitute financial advice ...

Cineberg About This Article ☑ ck Covered Analyst's rating at publication $58.51 18.11% Feb. 15, 2024 8:08 PM ET | BNP Paribas SA (BNPQF) Stock, BNPQY Stock 26.05% Mare Evidence Lab Following R&P 500 change 12.27% a save ff Share Comment (1) Following our update on Crédit Agricole S.A. (OTCPK:CRARF)(OTCPK:CRARY), today we are back to comment on BNP Paribas (OTCQX:BNPQF) (OTCQX: BNPQ Y) . Looking at the French banking sector, despite Light And Shadow, we maintained a Tactical Buy raing staus on DNP. This was ...

Ageas and BNP Paribas: Transparency notification In accordance with the rules on financial transparency*, BNP Paribas has notified Ageas on 13 August 2024 that, on 9 August 2024, the interest of its subsidiary BNP Paribas Cardif S.A. has exceeded the legal threshold of 5% of the shares issued by Ageas. BNP Paribas' current shareholding stands at 9.80%. Reason for the notification Acquisition or disposal of voting securities or voting rights Notification by A parent undertaking or a controlling person Person ...

Cineberg Shares of French banking giant BNP Paribas (OTCQX:BNPQY)(OTCQX:BNPQF)("BNPP" hereafter) have been a little soft since my last update back in April, underperforming European financials (EUFN) by around five points in that time. While short-term returns often represent little more than the vagaries of the market, the catalyst in this case is fairly clear, with BNPP's recent sell-off coinciding with the call of snap French parliamentary elections in June. Data by YCharts Data by YCharts Domestic polit ...

Financial Data and Key Metrics Changes - The net income group share for Q2 2024 was EUR3.4 billion, reflecting a 1.6% year-on-year increase on a distributable basis [10] - Revenues increased by 3.9% compared to Q2 2023, with a gross operating income of EUR5 billion, up 3.4% year-on-year [6][9] - Earnings per share (EPS) rose by 8.1% on a distributable basis [10] - The cost of risk remained under control at 33 basis points, well within the guideline [10] - The Common Equity Tier 1 (CET1) ratio stood at 13%, above the regulatory requirement [40] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking (CIB) revenues increased by 12.1% year-on-year, with global markets leading at a 17.6% increase [6][27] - Commercial and Personal Banking Services (CPBS) revenues were stable, up 1.7%, driven by a 7% increase in fees and a 3.8% rise in net interest income [29][61] - Investment Solutions (IPS) revenues grew by 6% year-on-year, with asset management up 9.8% and insurance up 5.2% [30][78] Market Data and Key Metrics Changes - The second quarter saw a strong performance in equities, particularly in the Asia-Pacific and Americas regions, with equity derivatives experiencing significant growth [54] - The overall market environment is expected to become more favorable in the second half of 2024, supporting revenue growth [12] Company Strategy and Development Direction - The company aims to continue deploying capital effectively, particularly from the sale of Bank of the West, with an expected return on equity greater than 16% [11] - Focus areas for the second half of 2024 include enhancing client service, expanding asset management, wealth management, and insurance platforms, and gaining market share in CIB [15][16] - The diversified and integrated business model allows the company to grow at a faster pace than the economy while maintaining high standards in client relationships and risk management [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in exceeding the 2024 net income target of EUR11.2 billion, supported by a favorable economic environment and disciplined cost management [14][12] - The company anticipates a gradual decrease in interest rates, which will positively impact fee business [16] - Management highlighted the importance of maintaining a strong risk management culture, with a cost of risk below the 40 basis points guidance [13] Other Important Information - The company confirmed a commitment to creating long-term shareholder value, with a dividend per share CAGR of over 10% from 2012 to 2023 [18] - The company is actively pursuing operational efficiency measures, targeting EUR1 billion in savings for the year [9][36] - The use of artificial intelligence is being expanded, with a significant increase in AI use cases in production [42] Q&A Session Summary Question: Inquiry about equities trading performance and Prime Brokerage balances - Management clarified that Prime Brokerage balances reflect the leverage consumed by the activities, which are fully hedged, and the strong performance in equities was due to a supportive market environment [89][91][96] Question: Sustainability of the recent performance in Prime Brokerage - Management indicated that the recent performance is sustainable, with no one-off factors affecting the results, and the strength of the platform is expected to continue [99]

Taking a look at the company's dividend growth, its current annualized dividend of $1.84 is up 4.9% from last year. In the past five-year period, BNP Paribas SA has increased its dividend 3 times on a year-over-year basis for an average annual increase of 5.70%. Future dividend growth will depend on earnings growth as well as payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. BNP Paribas's current payout ratio is 37%, meaning it paid out 37% of its ...