BNP Paribas Confirms Capital Trajectory Despite O-SII Buffer Increase
BNP Paribas has confirmed its capital trajectory following the ECB's publication of the new O-SII scores. The group has been assigned an O-SII buffer of 2.0%, resulting in a 50 basis point increase in its CET1 requirements. However, this development, anticipated by the bank, will be implemented gradually and does not affect its leverage ratio requirement or its shareholder return policy.
An O-SII Buffer Set at 2.0%
The European Central Bank published the O-SII scores on April 28, 2026, within the updated framework presented on December 20, 2024. BNP Paribas was assigned a score of 911 points, placing the group in bucket 8 of the ECB’s floor methodology. This classification corresponds to an O-SII buffer requirement of 2.0%. For BNP Paribas, this translates into a 50 basis point increase in CET1 requirements, the primary solvency ratio used to measure a bank's financial strength.
A Regulatory Constraint Already Integrated by the Group
The increase will be implemented gradually according to the schedule communicated by the authorities (dates and modalities specified by the ECB or the bank). BNP Paribas states that this revised requirement had been anticipated and is already integrated into its capital trajectory. The group thus maintains its target of a CET1 ratio of 13% on December 31, 2027, as well as on December 31, 2028. As of March 31, 2026, this ratio was 12.8%, up 20 basis points from the end of 2025, and remained above the SREP requirement of 10.42% applicable at that time.
No Announced Impact on Shareholder Returns
BNP Paribas also indicates that this development has no effect on its leverage ratio requirement. Importantly, the revised framework does not impact its shareholder return policy. This clarification limits the negative scope of the announcement: while the increase in the O-SII buffer does indeed represent an additional regulatory requirement, it does not, according to the group, compromise its solvency trajectory or its distribution commitments. BNP Paribas is set to publish its first quarter 2026 results on April 30.
