BNP Paribas (BNPP.PA) missed third-quarter profit expectations as rising provisions for bad loans and a cautious stance among major corporate clients weighed on its results — despite a modest gain in investment banking revenues.
The eurozone’s largest lender by assets reported a net profit of €3.04 billion, up 6.1% year-on-year but slightly below the €3.09 billion analyst consensus. Revenues increased 5.3% to €12.6 billion, short of market forecasts.
Its Global Banking division, which advises and lends to large corporates, saw sales dip 2.6%, as geopolitical tensions and a “wait-and-see” sentiment slowed dealmaking. Meanwhile, provisions for bad loans rose 24% to €905 million, driven partly by a “specific credit situation” in its markets arm.
BNP’s investment banking unit posted revenue growth of 4.5%, reaching €4.46 billion, but lagged behind Wall Street peers: Goldman Sachs reported a 17% rise, and JPMorgan’s markets revenue jumped 25%.
The bank continues to grapple with litigation tied to its Sudan-related case, which analysts say is clouding sentiment. BNP maintains the verdict is “fundamentally flawed” and is appealing the decision.
On the positive side, BNP raised its synergy targets from the €5.1 billion AXA Investment Managers acquisition, now expecting a return on invested capital of 18% by 2028 and 22% by 2029, up from earlier projections.
The bank reaffirmed its 2025 net income target of over €12.2 billion and a 13% return on tangible equity by 2028.