Paris, 5 February – France’s largest bank, BNP Paribas, has reported a stronger-than-expected net profit for the fourth quarter, while simultaneously unveiling an ambitious new cost-reduction strategy that leverages artificial intelligence (AI) in selected areas.
In its latest financial statement, BNP Paribas posted a net profit of €2.97 billion (approximately $3.51 billion) for the quarter, marking a 28% increase compared with the same period last year and surpassing analysts’ average forecast of €2.84 billion. Following the announcement, the bank’s shares rose by up to 5%, reflecting an almost 40% increase since November.
CEO Jean-Laurent Bonnafé highlighted that AI will be deployed strategically to enhance efficiency and streamline administrative processes, rather than applied indiscriminately across operations. “We are investing only where it truly makes a difference,” Bonnafé said. “AI is extremely costly, so we see it as a ‘diamond-tipped tool’ to help reduce expenses and simplify processes.”
The bank has also set ambitious medium-term targets, aiming to achieve a return on tangible equity exceeding 13% and a cost-to-income ratio below 56% by 2028. For 2026 alone, BNP Paribas plans to realise an additional €600 million in cost savings, bringing the cumulative reduction in recurring expenses between 2022 and 2026 to €3.5 billion.
Key Financial Targets (2025–2028)
| Metric | Previous Target | New Target |
|---|---|---|
| Return on Tangible Equity | 13% | >13% |
| Cost-to-Income Ratio | ~58% | <56% |
| Annual Net Profit Growth | — | >10% |
In its commercial banking segment, net interest margins increased 6.3% in France and 17% in Belgium, reflecting robust domestic and regional performance. Conversely, revenue growth in investment banking, particularly in fixed income, currency, and commodities trading, rose by only 0.8%, lagging behind competitors on Wall Street and in Germany.
On the legal front, BNP Paribas confirmed it will appeal a jury verdict related to Sudan in New York by 9 February, with CEO Bonnafé stressing that the bank has no plans to make any extraordinary payments in connection with the case.
For 2025, the bank declared a cash dividend of €5.16 per share, with the final tranche of €2.57 per share scheduled for May.
With this report, BNP Paribas has underlined its commitment to long-term profitability and shareholder value, demonstrating that careful integration of technology and disciplined cost management will continue to drive sustainable growth.