BNP Paribas Reports Strong 2024 Earnings, Exceeds Profit Forecasts

BNP Paribas reported a strong Q4 performance for 2024, with net income rising 15.7% to €2.32 billion, surpassing analyst expectations. The bank's overall revenue increased by 10.8% to €12.1 billion, driven by a robust 20% growth in investment banking, particularly in fixed income, currencies, and commodities trading. Despite these positive results, BNP Paribas lowered its profit targets for 2025 and announced plans for further cost reductions, highlighting challenges in the retail banking sector amidst a competitive landscape. CEO Jean-Laurent Bonnafe emphasized the bank's strategic focus on investment banking to counter sluggish retail performance and enhance profitability. The bank also anticipates a continued average growth rate of over 7% in net income between 2024 and 2026, supported by its acquisition of AXA Investment Managers. However, political instability in France and pressure from high-interest savings could impact margins moving forward.