BNP Paribas: ECB sets CET1 requirement at 10.73% for 2027, versus 12.91% held
The European Central Bank has notified BNP Paribas of the results of its 2026 supervisory review and evaluation process (SREP). It sets the capital and leverage ratio requirements applicable to the group on a consolidated basis from 1 January 2027.
Calculated under the new methodology of the Single Supervisory Mechanism (SSM), the Pillar 2 requirement (P2R) stands at 1.90%, up 17 basis points from the 2025 SREP.
According to the press release published on 29 October 2026, the impact on the CET1 requirement is limited to 2 basis points and does not affect the group's CET1 trajectory.
A minimum CET1 requirement set at 10.73% as of 1 January 2027
From 1 January 2027, BNP Paribas' minimum CET1 requirement will stand at 10.73%, excluding the Pillar 2 guidance (P2G). Of this total, the P2R accounts for 1.07%, and the buffer applicable to other systemically important institutions (O-SII) for 1.75%.
The capital conservation buffer represents 2.50% and the countercyclical buffer 0.82%. The systemic risk buffer, at 0.09%, is calculated on the basis of risk-weighted assets of €803 billion as at 30 September 2026.
The Tier 1 ratio requirement will stand at 12.58%, including 1.43% under the P2R, and the Total capital ratio requirement at 15.06%, including 1.90% under the P2R. The leverage ratio requirement remains unchanged at 3.85%, including 0.10% under the P2R applicable to leverage (P2R-LR).
Ratios at 30 September above the new thresholds
The press release compares these requirements with the levels published as at 30 September 2026. The CET1 ratio then stood at 12.91%, against a requirement of 10.73%, and the Tier 1 ratio at 15.59%, against a threshold set at 12.58%.
The Total capital ratio reached 17.75% against a requirement of 15.06%, and the leverage ratio 4.44% against a requirement of 3.85%. BNP Paribas states that it has a significant margin above its capital and leverage ratio requirements.
The Pillar 2 guidance (P2G) remains unchanged from 2025, within a range of 0 to 100 basis points. The regulatory requirement applicable to the leverage ratio also remains unchanged.
A CET1 ratio expected above 13% at end-2026
When publishing its third-quarter 2026 results, BNP Paribas announced an expected CET1 ratio above 13% as at 31 December 2026, compared with 12.91% at 30 September. The group specifies that the change in the P2R does not affect this trajectory.
The press release also details a change in treatment. The CET1 requirement under the P2R no longer includes the full add-on linked to non-performing exposures on loans granted before 26 April 2019: this is now taken into account in the CET1 ratio from 31 December 2026.
According to the bank, these non-performing exposures continued to run down in 2026, and their residual impact was anticipated in the group's capital planning.
The key element of the 2026 SREP thus comes down to two figures: a P2R raised by 17 basis points, to 1.90%, and a limited effect of 2 basis points on the CET1 requirement, set at 10.73% as of 1 January 2027.
