BNP Paribas Sets 13% CET1 Goal for 2027 Amid Strong Profit Outlook
BNP Paribas CET1 target has moved higher as the bank looks toward a stronger future. The French lender now aims for a 13% CET1 ratio by 2027, driven by rising profits and steady asset growth. This move reflects the group’s confidence in its performance and long-term strategy.
The bank expects risk weighted assets to grow about 2% each year. In addition, it plans to sell non strategic assets more quickly. These steps will help BNP Paribas maintain flexibility while creating more room for investments.
Growth and Strategy
BNP Paribas believes its core businesses will continue to support this ambitious target. The bank plans to use its existing growth drivers to boost earnings. As a result, leadership expects a stronger and more stable profitability path over the next few years.
CEO Jean Laurent Bonnafé said the bank aims to increase returns through a clear and disciplined approach. He highlighted the importance of a strong distribution policy. His comments reflect growing confidence as the bank focuses on value creation.
The group also received approval from the European Central Bank for a €1.15 billion share buyback programme. BNP Paribas intends to launch it before the end of November. This decision shows the bank’s commitment to rewarding shareholders while maintaining a solid capital position.
Returns and Market View
BNP Paribas kept its target of reaching a 13% return on tangible equity by 2028. The bank expects higher interest income and stable loan quality to support this goal. Therefore, it continues to strengthen its balance sheet while delivering competitive returns.
However, the bank’s shares still lag the broader sector. European bank stocks surged nearly 48% over the past year, but BNP Paribas gained only 13%. Investors want to see clearer signs of improved performance compared with rivals. Even so, the new capital target aims to address these concerns and boost confidence.
The focus now shifts to execution. If BNP Paribas delivers steady growth and maintains low loan losses, it could narrow the gap with the wider market. The upgraded CET1 ratio target signals a more ambitious and forward looking strategy that may help strengthen its market position.
