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Investing.com -- BNP Paribas lifted its capital ambitions on Thursday, setting a new CET1 ratio goal of 13% for 2027, compared with its earlier 12.5% objective.
The bank said the higher target reflects stronger underlying profitability, a measured rise in risk-weighted assets of roughly 2% a year, and an accelerated programme of selling non-core businesses.
BNP plans to assess each year how much excess capital can be handed back to investors. CEO Jean-Laurent Bonnafé said the bank aims to improve its profitability by “leveraging existing growth drivers” while maintaining “a disciplined and attractive distribution policy.”
"In our view, this is a clear is a statement of strength and should remind investors that SocGen committing to a 13.0% was a significant factor in changing investors’ perception on the name," Jefferies analyst Joseph Dickerson said in a note.
The lender also disclosed that it has secured approval from the European Central Bank to launch a €1.15 billion share buyback, which it expects to begin before the end of November. It reiterated its goal of generating a 13% return on tangible equity by 2028.
Cost efficiency will be key to reaching those profitability targets. The group is aiming for a cost-to-income ratio of 61% in 2026, falling to 58% by 2028.
It plans to detail its outlook to 2028 when it publishes its 2025 results, with a medium-term strategic plan scheduled for early 2027.