BNP Paribas reported a net income of 3.46 billion euros for the third quarter, marking a 13.5 percent rise compared to the same period of the previous year. The result surpassed the average analyst forecast of 3.23 billion euros. Pre-tax profit increased by 18.1 percent to 5.06 billion euros, while revenues grew by 9.5 percent to 13.76 billion euros. Costs rose at a slower pace of 5.3 percent, leading to an improvement in the cost-to-income ratio from 60.6 to 58.3 percent. Chief Executive Jean-Laurent Bonnafé noted that the group achieved a very strong third quarter supported by the operational performance of all three divisions.
The primary growth driver was Corporate and Institutional Banking, where revenues climbed 16.6 percent to 5.20 billion euros and pre-tax profit surged 35.2 percent to 2.25 billion euros. Capital markets saw particularly robust development, with Global Markets revenues up 21.9 percent to 2.67 billion euros. Within this segment, equities and prime brokerage rose 50 percent to 1.46 billion euros, whereas fixed income and currencies remained practically stable at 1.22 billion euros. Securities Services revenues increased by 17.6 percent to 912 million euros.
The Investment and Protection Services division also recorded gains, with revenues rising 5.3 percent to nearly 2 billion euros and pre-tax profit increasing by 26.4 percent to just over 1 billion euros. This performance benefited from the integration of acquired asset manager AXA Investment Managers. Total assets under management for the division reached 2.55 trillion euros at the end of September. Net inflows since the beginning of the year totaled 49.4 billion euros, comprising 31 billion euros in asset management and 11.5 billion euros in wealth management. Wealth management revenues grew due to higher fee income and active trading by Asian clients, and the bank announced plans to expand its services for ultra-high-net-worth individuals, entrepreneurs, and family offices in the Nordic countries.
Conversely, the autoleasing business faced headwinds. Combined revenues for Arval and Leasing Solutions dropped 29.1 percent to 546 million euros, driven by persistently low prices for used cars. In the commercial, personal banking and services division, total revenues rose 3.6 percent, but pre-tax profit declined 6.5 percent to 2.04 billion euros amid higher credit risk costs, with provisions for risk rising from 905 million to 964 million euros.
During the first nine months of the year, the group generated a net income of 11.02 billion euros, compared with 9.25 billion euros in the previous year's period. The bank plans to launch a 1.3 billion euro share buyback program in November, having received approval from the European Central Bank. The common equity tier 1 ratio stood at 12.9 percent at the end of September, with the decrease attributed partly to the acquisition of leasing company Athlon. The bank expects the ratio to exceed 13 percent again by the end of the year. BNP Paribas reaffirmed its medium-term targets, aiming for a return on tangible equity of more than 13 percent and a cost-to-income ratio below 56 percent by 2028. A new strategic plan through 2030 is scheduled for presentation on February 2, 2027.
