BNP Paribas posted a record net profit in 2022

BNP Paribas posted a record net profit in 2022 at €10.2 billion, an increase of 7.5% compared to 2021, which is already a record year.

The net banking result, equivalent to the turnover of the sector, stands at 50,400 million euros in 2022, 9% more in one year.

Planted objectives

Revenues from all business lines increased: +15.7% in the part dedicated to companies and large institutions, +9.3% in commercial banks and specialized businesses and +3% in financing and investment.

“Based on these results, which confirm the relevance of our strategic plan for 2025, and confident in the group’s ability to continue its disciplined and sustainable growth, the Group has revised its targets upwards”, welcomed Jean -Laurent Bonnafé, CEO of BNP. Paribas, quoted in the press release.

In particular, the group expects an average profit growth of 9% per year from 2022 to 2025, compared to 7% previously, that is, an increase in net profit of around one billion euros each year.

To achieve this goal, BNP Paribas is betting in particular on two billion euros of additional revenue by 2025 due to the rate hike caused by the tightening of the European Central Bank’s monetary policy aimed at curbing inflation.

It also foresees higher-than-expected cost reductions of 2.3 billion euros compared to the previous 2 billion.

Regarding the cost of risk – the amounts provisioned in the event of default by a borrower – it stood at almost 3,000 million euros, “a slight increase of 1.4% compared to 2021”.

redemption of shares

The sale of its American subsidiary Bank of the West, finalized last week for 16,300 million dollars and which generated an “exceptional capital gain (net of taxes) of approximately 2,900 million euros”, is not included in the result, but will release 11,600 million euros in own funds.

This sum will be used to accelerate growth through targeted investments or acquisitions, for approximately 7.6 billion euros, and for share buybacks in 2023 for around 4 billion euros.

With an additional €1bn of share repurchases over last year’s earnings, approximately €5bn will go towards these buybacks.

The dividend proposed by the bank to shareholders is 3.90 euros per share.

While the second half was enlivened by debates around super-profits, the bank stressed that it was “otherwise a significant taxpayer with a total amount of taxes and duties paid in 2022 of €7.2bn”, including €3.85bn of tax. about rent.