The BNP Paribas bank, sometimes compared to an ocean liner, does not deviate from its route.
After a record net profit in 2021, the first European bank did even better in 2022, with 10.2 billion euros earned.
These results have led it to raise the objectives of its strategic plan for 2025.
Net profit increased by 7.5% over one year and even by 19% excluding exceptional items, namely 204 million euros in provisions following a Polish law allowing borrowers to suspend their repayments or even 433 million euros related to the war in Ukraine and the depreciation of its subsidiary in this country.
This net profit is in line with the expectations of analysts who were counting on amounts between 10.01 billion, according to the consensus established by Factset, and 10.22 billion, according to that of Bloomberg.
Net banking income, equivalent to turnover for the sector, stands at 50.4 billion euros in 2022, an increase of 9% over one year.
Targets revised upwards
Revenues from all business lines are up: +15.7% for the part dedicated to companies and large institutions, +9.3% for commercial banks and specialized businesses and +3% for financing and investment.
Building on these results, which confirm the relevance of our 2025 strategic plan, and confident in the group's ability to pursue its disciplined and sustainable growth, the Group has revised its objectives upwards
," said Jean-Laurent Bonnafé, CEO of BNP Paribas, quoted in the press release.
In particular, the group forecasts average profit growth of 9% per year from 2022 to 2025, compared to 7% previously, i.e. an increase in net profit of around one billion euros each year.
To achieve this objective, BNP Paribas is betting in particular on two billion euros of additional income by 2025 due to the rise in rates caused by the tightening of the monetary policy of the European Central Bank aimed at curbing inflation.
It also provides for greater cost reductions than expected, of 2.3 billion euros against 2 billion previously.
Regarding the cost of risk – the sums provisioned in the event of default by a borrower – it stood at nearly 3 billion euros, “
a slight increase of 1.4% compared to 2021
Share buybacks of around 4 billion euros
The sale of its American subsidiary Bank of the West, finalized last week for 16.3 billion dollars and which generated an "
exceptional capital gain (net of tax) of approximately 2.9 billion euros
", n is not included in the result, but will free up 11.6 billion euros in equity.
This sum will be used to accelerate growth through targeted investments or acquisitions, for approximately 7.6 billion euros, and for share buybacks in 2023 of around 4 billion euros.
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With the addition of a billion euros of share buybacks in respect of last year's profit, around 5 billion will be allocated to these buybacks.
The dividend proposed by the bank to shareholders is 3.90 euros per share.
While the second half was animated by debates around superprofits, the bank stressed that it was “
otherwise a significant taxpayer with a total amount of taxes and duties of 7.2 billion euros paid in 2022
” , including 3.85 billion for income tax.