Latest news with #JeanLaurentBonnafe
Reuters
24-07-2025
- Business
- Reuters
BNP Paribas cushions profit fall with rates trading, retail boost
PARIS, July 24 (Reuters) - French bank BNP Paribas ( opens new tab reported a smaller-than-expected drop in second-quarter profit on Thursday after a jump in fixed income trading revenue and a rebound at its retail bank cushioned the impact of a higher tax burden in the United States. Overall, it was a somewhat mixed quarter for the euro zone's largest bank by assets, as signs of a revival in its domestic retail unit were offset by underwhelming performance at its investment bank, which lagged Wall Street rivals. Yet, the bank signalled that the much-expected rebound in its European retail activity was set to continue in the second half. "Outlook for the second half of the year is very encouraging, with expected revenue acceleration driven by Commercial & Personal Banking," Chief Executive Officer Jean-Laurent Bonnafe said. BNP is among the first of the big European banks to publish second-quarter numbers. Net income in the April-to-June period fell 4% from a year earlier to 3.26 billion euros ($3.83 billion), slightly above analyst forecasts. Revenue rose 2.5% to 12.6 billion euros, in line with expectations, while provisions for bad loans matched estimates. At its investment bank, fixed income, currency and commodity trading revenues soared 27% on the back of market volatility sparked by U.S. President Donald Trump's tariffs, but equity trading revenue suffered a steep decline and pre-tax income from global banking fell. Overall investment banking revenue was up 4% year-on-year. The global banking activity, which serves large corporate clients and financial institutions, was impacted by trade tensions, geopolitical uncertainty, and a weaker dollar. Several analysts saluted the bank's lower-than-expected costs and the rebound in its retail operations. "Revenue performance in European retail was a standout and sets up well for H2 25 acceleration," Jefferies said in a note to clients. "Elsewhere, the group exhibited strong cost control." CEO Bonnafe, whose tenure was recently extended, has made the investment bank a key part of his efforts to boost BNP's profits, while also cutting costs and bulking up in asset management with the recent acquisition of AXA Investment Managers. The bank's shares have underperformed rivals, however, and even this year's 22% gain is behind the wider European banking sector (.SX7P), opens new tab, with investors cautious about BNP's relative growth prospects. BNP said its average tax rate for the quarter was nearly six percentage points higher than a year ago, following changes to U.S. tax rules on financing expenses. That weighed on net earnings, with pre-tax income up 3.1%. Earnings from BNP's insurance operations rose sharply, driven by solid operating income and a one-off gain related to a financial stake in China. BNP's retail and consumer division saw a 4.3% rise in net interest income (NII) in France. Analysts expect further improvement following a recent cut in the regulated rate on the country's popular Livret A savings account, which offers room for margin expansion. French banks typically lag their Spanish and Italian peers in benefiting from higher interest rates, as 96% of French mortgages are on a fixed rate. Tighter mortgage rules and popular regulated savings products have squeezed margins in an already highly competitive market. BNP announced an interim dividend of 2.59 euros per share, to be paid on September 30, mirroring a common U.S. practice. The bank also said it expected to surpass 12.2 billion euros in net income this year, in line with its 2024-2026 targets. ($1 = 0.8503 euros)
Reuters
24-07-2025
- Business
- Reuters
BNP Paribas beats Q2 profit forecast, investment bank has mixed quarter
PARIS, July 24 (Reuters) - French bank BNP Paribas ( opens new tab reported a smaller-than-expected drop in second-quarter profit on Thursday after a jump in fixed income trading revenue and gains at its insurance unit cushioned the impact of a one-off tax hit in the United States. Overall it was a somewhat mixed quarter for the euro zone's largest bank by assets, with signs of a revival in its domestic retail unit offset by underwhelming performance at its investment bank that lagged Wall Street rivals. BNP is among the first of the big European banks to publish second-quarter numbers. Net income in the April-to-June period fell 4% from a year earlier to 3.26 billion euros ($3.83 billion), slightly above analyst forecasts. Revenue rose 2.5% to 12.6 billion euros, in line with expectations, while provisions for bad loans matched estimates. At its investment bank, fixed income, currency and commodity trading revenues soared 27% on the back of market volatility sparked by U.S. President Donald Trump's tariffs, but equity trading revenue suffered a steep decline and income from global banking fell. Overall investment banking revenue was up 4% year-on-year. CEO Jean-Laurent Bonnafe, whose tenure was recently extended, has made the investment bank a key part of his efforts to boost BNP's profits, while also cutting costs and bulking up in asset management with the recent acquisition of AXA Investment Managers. The bank's shares have underperformed rivals, however, and even this year's 22% gain is behind the wider European banking sector (.SX7P), opens new tab, with investors cautious about BNP's relative growth prospects. BNP said its average tax rate for the quarter was nearly six percentage points higher than a year ago, following changes to U.S. tax rules on financing expenses. That weighed on net earnings, with pre-tax income up 3.1%. Earnings from BNP's insurance operations rose sharply, driven by solid operating income and a one-off gain related to a financial stake in China. BNP's retail and consumer division saw a 4.3% rise in net interest income (NII) in France. Analysts expect further improvement following a recent cut in the regulated rate on the country's popular Livret A savings account, which offers room for margin expansion. "Outlook for the second half of the year is very encouraging, with expected revenue acceleration driven by Commercial & Personal Banking," Bonnafe said. BNP announced an interim dividend of 2.59 euros per share, to be paid September 30. ($1 = 0.8503 euros)
Bloomberg
06-06-2025
- Business
- Bloomberg
BNP to Cut 200 Branches by End of 2026 to Kick Off Retail Revamp
BNP Paribas SA Chief Executive Officer Jean-Laurent Bonnafe plans to cut hundreds of domestic retail branches in an effort to lift profitability at a business that has struggled for years. In a first step, the French lender plans to close around 80 branches this year and another 120 next, according to people familiar with the matter. Headcount in the branch network is expected to decline by 5% a year, while staff would be added in online and phone banking.
Reuters
13-05-2025
- Business
- Reuters
BNP shareholders approve age limit increase for CEO Bonnafe
PARIS, May 13 (Reuters) - BNP Paribas ( opens new tab shareholders voted on Tuesday to raise the age limit for the role of CEO, effectively enabling Jean-Laurent Bonnafe to remain at the helm of the euro zone's largest bank by assets into the start of next decade. Shareholders overwhelmingly approved the BNP resolution, which raises the CEO age limit to 68 from 65, with 98.47% voting in favour. Under the company's rules, the board can increase the age limit by one more year, potentially allowing Bonnafe, 63, to remain BNP's boss until the 2031 shareholder meeting. Shareholder backing for the move comes at a critical time for BNP, as some investors have raised questions about the future after Bonnafe, with no clear successor in sight. Bonnafe is already one of the world's longest-serving CEOs of a global bank. If he remains in place until 2031, he would have spent about 20 years at the helm, similar to JPMorgan's Jamie Dimon, currently the longest-serving CEO on Wall Street. Dimon has led JPMorgan since 2006. The bank has begun the search for potential successors, he has said. BNP Chairman Jean Lemierre told the bank's annual general meeting that the new age limit was necessary to give Bonnafe and the bank time to continue working on an eventual successor. BNP shareholders also approved raising the age limit for the chair of the board to 78 from 75, paving the way for Lemierre, 74, to continue running the bank alongside Bonnafe for a few more years. Lemierre, speaking to shareholders before the vote, described Bonnafe as "young and full of energy," adding that extending the age limit would allow him to manage the bank, make decisions on succession planning in due course, and have the certainty of an additional term.
Bloomberg
13-05-2025
- Business
- Bloomberg
BNP Paribas Investors Back New Term for CEO Jean-Laurent Bonnafe
BNP Paribas SA shareholders confirmed Chief Executive Officer Jean-Laurent Bonnafe for another three-year term as director, clearing the way for him to become one of Europe's longest-serving bank CEOs. Shareholders at the bank's annual general meeting in Paris on Tuesday also voted to raise the age limit for the CEO role to 68 years, from 65 currently. The change was needed to allow the 63-year-old to stay on in his role until 2028.
