BNP Paribas Raises Its CET1 Ratio Target to 13%
BNP Paribas has announced an upward revision of its CET1 ratio target, raising it to 13% by 2027, according to a statement from the group.
Strategic Improvements and Asset Management
According to BNP Paribas, the increase in the CET1 ratio target is based on the group's improved profitability, a moderate growth in risk-weighted assets estimated at about 2% per year, and the acceleration of non-strategic asset disposals. The return on tangible equity (ROTE) is also projected at 13% in 2028, an increase of 210 basis points from 2024. Two-thirds of this improvement will come from current strategic plans in the BCEF, Personal Finance, BCEB, and Asset Management activities. The remaining third will be supported by other strategic activities pursuing disciplined growth.
Operational Efficiency and Shareholder Returns
BNP Paribas aims for a continuous reduction in its operating ratio, planning to lower it to 61% in 2026 and 58% in 2028. Additionally, the surplus capital beyond the 13% CET1 ratio will be determined for distribution to shareholders at the end of each year. In November 2025, the group intends to launch a share buyback program amounting to 1.15 billion euros, after obtaining authorization from the ECB.
Future Growth and Profitability Trajectory
The growth and profitability trajectory of BNP Paribas up to 2028 will be detailed during the 2025 results publication. The 2027-2030 plan is expected to be presented at the beginning of 2027. According to Jean-Laurent Bonnafé, CEO of BNP Paribas, the announced measures are in line with the current strategy of the group, focusing on profitability and a distribution policy considered attractive to shareholders.
