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Investing.com -- BNP Paribas has extended its strategic targets to 2028, aiming to lift profitability and strengthen capital while betting on a turnaround in its commercial banking arm.
The euro zone’s largest bank by assets is now targeting a 13% return on tangible equity (RoTE) in 2028, compared with 10.9% in 2024 and a planned 12% in 2026, helped by an improving rate backdrop and tighter cost control.
It also sees its core Tier 1 ratio reaching 12.5% by the end of 2027.
“Commercial banking revenues are already benefiting from the new rate environment,” BNP said, adding that efficiency measures will continue across its divisions.
RBC analysts said the reaffirmation of BNP’s 2025 objectives, together with fresh guidance to 2028, "suggest that BNP is relatively confident on near-term performance and the longer-term outlook suggesting that internal drivers contribute a large part of the targeted further ROTE expansion."
The group also confirmed its 2025 net income target of €12.2 billion ($14.37 billion) and pledged to present a new roadmap covering 2027 to 2030 at the start of 2027.