Press Release Paris, 24 June 2024 The BNP Paribas Group has received the notification by the Autorité de Contrôle Prudentiel et de Résolution (ACPR), implementing the decision of the Single Resolution Board, of the updated Minimum Requirement for Own Funds and Eligible Liabilities (MREL) requirements applicable in 2024. The total MREL requirement applicable for 2024 thus amounts to 22.64% to which the CBR1 must be added, of the Group's RWA and 5.91% of the Group's leverage exposures. As regards the subordin ...

Core Viewpoint - BNP Paribas and BPCE are forming a joint venture to create a payment processor that aims to become a leading player in the European market, responding to the growing digitalization of payment systems and increasing card transactions [1][3][6]. Group 1: Partnership and Strategic Goals - The partnership aims to create a common processor that will handle all card payments from both banks in Europe and potentially other banks [6][7]. - BPCE CEO Nicolas Namias emphasized that this initiative aligns with their strategic plan to accelerate innovation in payment systems [2]. - BNP Paribas Director and CEO Jean-Laurent Bonnafé highlighted the exponential increase in card transactions, aiming for an efficient and scalable processor across Europe [8]. Group 2: Technological Development - The new processor will encompass operations, back-office activities, and development, integrating technological standards and innovations [4]. - The initiative is part of a broader trend in the industry towards the virtualization of debit cards and the promotion of instantaneous transactions [3]. Group 3: Competitive Landscape - The joint venture will compete against established players like Nexi and Worldline in the payment processing market [9]. - Crédit Agricole is also forming a joint venture with Worldline to provide payment services in France, indicating a competitive environment for payment solutions [5][10].

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Valu ...

Group 1 - BNP Paribas CEO Jean-Laurent Bonnafé expressed skepticism about the revival of mergers and acquisitions (M&A) activity in European banking due to economic challenges [1][2] - Bonnafé highlighted that the economics of cross-border deals rarely make sense, particularly for non-domestic players, despite calls for consolidation from figures like French President Emmanuel Macron [2][4] - He pointed out that cross-border banking deals face hurdles such as differing regulations, labor laws, and the lack of a euro zone-wide deposit insurance scheme, which significantly reduce potential cost synergies compared to domestic deals [3][4] Group 2 - European regulators have long advocated for more consolidation in the banking sector to enhance financial stability, a sentiment echoed by Macron [4] - Bonnafé noted that even domestic banking deals encounter challenges, including the need for buyers to pay a premium and increased supervision for larger banks [4] - UBS CEO Sergio Ermotti stated that achieving European consolidation would be difficult without a banking union and a proper framework [5] Group 3 - BBVA's hostile takeover bid for Sabadell follows the rejection of an earlier merger proposal, with BBVA claiming the offer is generous [6] - The UBS acquisition of Credit Suisse in March 2023 occurred after a period of uncertainty in the banking sector, where Credit Suisse's shares lost a quarter of their value [7]

Financial Data and Key Metrics Changes - The net income group share for Q1 2024 was €3.1 billion, with a stable revenue performance showing a decrease of 0.4% compared to Q1 2023 on a distributable basis [4][5] - Operating expenses decreased by 1.4% year-on-year on a distributable basis, resulting in a positive jaws effect of 1.1 points [7] - The cost of risk remained low at 29 basis points, reflecting the strong quality of the credit portfolio [8] - Pre-tax income reached €4.4 billion, representing a 7.4% year-on-year growth [9] - Earnings per share increased to €2.51, higher than the previous year [9] Business Line Data and Key Metrics Changes - Corporate and Institutional Banking (CIB) revenues were down 4% year-on-year, with Global Banking showing a record quarter with a 6% increase [19] - Commercial and Personal Banking (CPBS) revenues were stable year-on-year, with a 1% increase driven by growth in fees and net interest revenues [21][56] - Investment Solutions (IPS) revenues grew by 4% year-on-year when excluding real estate and principal investments, with strong growth in Wealth Management and Insurance [67] Market Data and Key Metrics Changes - The FICC business was impacted by a significant base effect from Q1 2023, but revenues were expected to normalize in future quarters [6][20] - The Belgian retail market faced headwinds due to government bond impacts, but overall performance was resilient [58][60] Company Strategy and Development Direction - The company confirmed its 2024 guidance, expecting revenue growth of more than 2% compared to 2023, supported by operational efficiency and strong risk management [11][12] - The strategic focus includes enhancing operational efficiency, with an additional €400 million in recurring annual savings expected to begin in Q2 2024 [7][28] - The company is also focusing on capital redeployment and partnerships to strengthen its market position, particularly in insurance and mobility sectors [35][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a net income exceeding €11.2 billion for 2024, with a more favorable environment anticipated in the second half of the year [11][12] - The management highlighted the importance of maintaining a strong risk management culture and the low cost of risk as key factors for future performance [30][31] Other Important Information - The company reported exceptional gains from the reconsolidation of BGZ Bank and the sale of personal finance activities in Mexico, contributing positively to Q1 results [17][18] - The company is committed to ESG initiatives, focusing on financing low-carbon energy production and exiting fossil fuels [41][42] Q&A Session Summary Question: Clarification on net profit guidance for 2024 and growth momentum into 2025 - Management confirmed that the 2024 net result is expected to be above 2023, with a central scenario indicating growth of more than 3% [78][80] Question: Rationale for the Ageas deal - The acquisition of a 9% stake in Ageas is aimed at strengthening the partnership and diversifying the portfolio, particularly in non-life insurance [81][82] Question: Revenue progression in French retail and margin development - Management indicated that the top line is evolving well, with expectations for margin improvement as inflation hedges taper off [87][88] Question: Cost flexibility and additional savings - The additional €400 million in cost savings reflects the company's operational efficiency and flexibility to deliver more savings if needed [110]

Investors interested in stocks from the Banks - Foreign sector have probably already heard of BNP Paribas SA (BNPQY) and United Overseas Bank Ltd. (UOVEY) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis o ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-a ...

BalkansCat BNP Paribas SA (OTCQX:BNPQF) is currently offering a high dividend yield that is sustainable over the long term, and its valuation is not demanding compared to peers, making it a good income play right now for long-term investors. Business Overview BNP Paribas is a French bank, being one of the largest banking groups in Europe and across the globe. At the end of 2023, its total assets were above $2.8 billion, a level that is close to HSBC Holdings (HSBC) and higher than other European peers, ...

For more than two years now, very little seemed to go right for Medical Properties Trust (MPW -5.86%). Interest rates soared. Key tenants were on shaky ground. The once-growing dividend was slashed. And the share price plunged.Unsurprisingly, there's considerable negativity surrounding the healthcare real estate investment trust (REIT) these days. But it's not all doom and gloom. The 13.5%-yielding dividend stock could soar 35% over the next 12 months, according to one analyst.A big upgradeBNP Paribas analy ...