BNP Paribas has reported a 5.9% increase in its net income for the third quarter of 2024 (Q3 2024) at €2.87bn, compared to €2.7bn posted in the corresponding quarter of the previous year.
In the previous quarter, that is Q2 2024, the French universal bank and financial services holding company’s net income stood at €3.4bn.
The bank’s earnings per share (EPS) rose by 11.2% to €2.38 compared to its EPS in Q3 2023.
In the quarter that ended 30 September 2024, BNP Paribas’ total revenues amounted to €11.94bn, which is an increase of 2.7% compared to €11.63bn posted in the third quarter of the previous year.
The bank’s growth in revenues has been attributed to its diversified and integrated model. Revenues from its corporate and institutional banking (CIB) unit’s revenues increased to 9% compared to Q3 2023.
BNP Paribas’ investment and protection services (IPS) business delivered a 4.9% revenue increase, bolstered by asset management and insurance.
However, the French bank’s revenue growth was partially offset by a 2.6% decline in revenues in its commercial, personal banking and services (CPBS) division. There was also a 5.7% drop in specialised businesses, including a significant 10.6% decrease in Arval and Leasing solutions, and a 3.3% decline in personal finance revenues.
BNP Paribas CEO Jean-Laurent Bonnafé said: “These very good results were driven by the business performance of the operating divisions and demonstrate our Group’s capacity to grow while continuing to manage risks and resources thoroughly.
“The 3rd quarter particularly illustrates CIB’s capacity to gain market shares and IPS’s strong business momentum, especially in Insurance and Asset Management. Our Commercial & Personal Banking is likely to gradually benefit from the positive shift in the rate environment.”
For the first nine months of 2024, BNP Paribas’ revenue totalled €36.7bn, marking an increase of 2% compared to the same period of 2023.
Based on its Q3 2024 results, the bank confirms its 2024 outlook, expecting revenue growth of over 2% compared to 2023’s distributable revenues. It also anticipates a positive jaws effect and a cost of risk below 40 basis points.
Additionally, BNP Paribas expects and its share net income to exceed the 2023 distributable net income of €11.2bn.
