BNP Paribas (EU:BNP) increased its capital targets on Thursday, announcing a new CET1 ratio objective of 13% for 2027, up from the previous 12.5% target.
According to the bank, the higher goal reflects stronger underlying profitability, a controlled annual increase of around 2% in risk-weighted assets, and faster progress on divesting non-core operations.
BNP said it will evaluate each year how much surplus capital can be returned to shareholders. CEO Jean-Laurent Bonnafé noted that the bank intends to enhance profitability by “leveraging existing growth drivers” while maintaining “a disciplined and attractive distribution policy.”
Commenting on the announcement, Jefferies analyst Joseph Dickerson wrote: “In our view, this is a clear statement of strength and should remind investors that SocGen committing to a 13.0% was a significant factor in changing investors’ perception on the name.”
The bank also revealed that it has received approval from the European Central Bank to proceed with a €1.15 billion share buyback, which is expected to begin before the end of November. BNP reaffirmed its ambition to deliver a 13% return on tangible equity by 2028.
Cost efficiency remains central to achieving these targets. The bank is aiming for a cost-to-income ratio of 61% in 2026 and 58% in 2028. Additional details on BNP’s outlook through 2028 will be provided alongside its 2025 results, with a new medium-term strategic plan slated for early 2027.
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