BNP Paribas (BNPQY) AI Stock Analysis

Compare

234 Followers

Top Page

BNP Paribas

(OTC:BNPQY)

Rating:76Outperform

Price Target:―

BNP Paribas scores well due to its strong financial foundation, positive technical indicators, and attractive valuation metrics. The earnings call provides an optimistic outlook with growth in key divisions, but operational challenges and economic uncertainties remain. The company's ability to manage leverage and improve cash flows will be crucial for future performance.

BNP Paribas (BNPQY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$98.26B

Dividend Yield6.05%

Average Volume (3M)80.72K

Price to Earnings (P/E)8.4

Beta (1Y)0.54

Revenue Growth5.70%

EPS Growth11.52%

CountryUS

Employees178,000

SectorFinancial

Sector Strength73

IndustryBanks - Regional

Share Statistics

EPS (TTM)1.36

Shares Outstanding2,261,621,300

10 Day Avg. Volume0

30 Day Avg. Volume80,717

Financial Highlights & Ratios

PEG Ratio0.93

Price to Book (P/B)0.30

Price to Sales (P/S)0.00

P/FCF Ratio1.54

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

BNP Paribas Business Overview & Revenue Model

Company DescriptionBNP Paribas (BNPQY) is a leading global financial services company headquartered in Paris, France. It operates in three primary business sectors: Retail Banking, Investment Solutions, and Corporate & Institutional Banking. The company provides a wide range of financial products and services, including personal and commercial banking, wealth management, asset management, and securities services. With a strong international presence, BNP Paribas serves clients across Europe, the Americas, Asia-Pacific, and other regions.

How the Company Makes MoneyBNP Paribas generates revenue through a diverse range of financial services. In Retail Banking, the company earns income from interest on loans, mortgages, and credit products provided to individuals and small businesses, as well as fees from account management, transactions, and other banking services. In Investment Solutions, BNP Paribas makes money through asset management fees, wealth management advisory services, and insurance products. The Corporate & Institutional Banking division generates significant revenue through underwriting, advisory services, trading in securities and derivatives, and corporate lending. Additionally, BNP Paribas benefits from strategic partnerships, joint ventures, and a global network that enhances its ability to offer comprehensive financial solutions to multinational corporations and institutional clients.

BNP Paribas Earnings Call Summary

Earnings Call Date:Apr 24, 2025

(Q1-2025)

% Change Since: 8.46%|

Next Earnings Date:Jul 24, 2025

Earnings Call Sentiment Neutral

The earnings call reflected a balanced sentiment. While BNP Paribas demonstrated strong revenue growth in several divisions and maintained cost control, challenges such as the decline in net profit, economic uncertainties, and specific segment underperformance were notable. The overall outlook remains cautiously optimistic, with strategic initiatives and acquisitions expected to drive future growth.

Q1-2025 Updates

Positive Updates

Strong Revenue Growth

Group revenues increased by 3.8% year-on-year, with operating divisions achieving a 6.1% increase. CIB had a record quarter with 12.5% revenue growth, driven by strong performance in global markets (up 17.3%) and Security Services (up 13.4%).

Cost Control and Savings

Achieved €190 million in cost savings in Q1, on track to meet the €600 million target for the year. Operating divisions achieved a positive jaws effect of 1.9 points.

Positive Outlook for IPS Division

IPS posted a 6.6% revenue growth, driven by Wealth Management and Insurance. The division is expected to become a significant growth driver for the group, with the AXA IM acquisition strengthening its position.

Stable CET1 Capital Ratio

Common Equity Tier 1 (CET1) ratio remained stable at 12.4%, comfortably above the SREP requirement and in line with the 12.3% target before FRTB.

Negative Updates

Decline in Net Profit

Net profit decreased by 4.9% due to lower contributions from the Corporate Center and the absence of exceptional items that benefited the previous year's first quarter.

Impact of Economic Uncertainty

Acknowledged elevated uncertainties in markets and economic environment, with potential impacts on investment and corporate decision-making due to geopolitical tensions and U.S. tariff policies.

CET1 Capital Ratio Impact from AXA IM Acquisition

Potential increase in CET1 impact from the AXA IM acquisition from 25 basis points to 35 basis points if the ECB's prudential treatment stance prevails.

Challenges in Personal Finance and Eurozone Banks

Personal Finance core only achieved 2% revenue growth in Q1, below the 5% annual target. Eurozone banks' NII showed a slow start, with particular pressure in Belgium and Italy.

Company Guidance

During the BNP Paribas First Quarter 2025 Results call, CEO Jean-Laurent Bonnafe and CFO Lars Machenil provided guidance reflecting a strong performance and reaffirmed their trajectory for 2024-2026. Key metrics included a 3.8% increase in revenues, with operating divisions up by 6.1%, and a notable 12.5% growth in CIB revenues. The company also reported a cost of risk at 33 basis points, below the guidance of 40 bps, and achieved €190 million in cost savings against a €600 million annual target. Despite a 4.9% drop in net profit due to lower contributions from the Corporate Center, the operating income grew by 6.7%. The CET1 ratio was reported at 12.4%, in line with guidance. The company confirmed its intention to distribute 60% of profits and announced a €1 billion share buyback to commence in the second quarter. BNP Paribas remains optimistic about achieving a return on tangible equity of 11.5% in 2025 and 12% in 2026, driven by strategic growth initiatives across its divisions.

BNP Paribas Financial Statement Overview

Summary

BNP Paribas demonstrates a strong financial position with a high equity ratio and profitability, supported by robust cash reserves. However, volatile revenues and negative cash flows indicate operational challenges, requiring focus on cash flow stabilization and operational efficiency.

Income Statement

Positive

BNP Paribas shows a volatile revenue trend with a significant increase in 2024 compared to 2023. The net profit margin is relatively high, showcasing effective cost management despite the absence of EBIT and EBITDA metrics. However, the fluctuating revenue growth rates and lack of EBIT margins indicate potential operational challenges.

Balance Sheet

Very Positive

The company maintains a strong equity position with a robust equity ratio, supported by significant cash reserves and a manageable level of debt. The improving return on equity indicates efficient use of shareholder funds, although the overall high liabilities relative to total assets highlight leverage risks typical in the banking industry.

Cash Flow

Positive

BNP Paribas experiences negative operating and free cash flows, indicating potential liquidity challenges. However, there is a substantial free cash flow improvement from 2023 to 2024, reflecting a positive trajectory in cash management. The operating cash flow to net income ratio suggests operational inefficiencies need addressing.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
45.41B	129.37B	59.73B	57.48B	56.35B	52.28B
	Gross Profit
45.41B	65.87B	59.73B	57.48B	56.35B	87.19B
	EBIT
24.57B	18.47B	40.20B	15.59B	14.29B	19.73B
	EBITDA
2.38B	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
4.46B	11.69B	10.97B	9.85B	9.49B	7.07B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
230.90B	308.05B	408.22B	474.92B	484.27B	412.58B
	Total Assets
2.16T	2.70T	2.59T	2.66T	2.63T	2.49T
	Total Debt
318.73B	379.89B	346.85B	625.71B	718.22B	687.29B
	Net Debt
87.83B	71.85B	-61.37B	-474.92B	-484.27B	-412.58B
	Total Liabilities
2.05T	2.57T	2.46T	2.54T	2.51T	2.37T
	Stockholders Equity
107.45B	128.14B	123.74B	121.24B	117.89B	112.80B
Cash Flow		Free Cash Flow
-97.63B	-99.51B	-36.46B	-55.37B	40.71B	138.55B
	Operating Cash Flow
-95.56B	-97.38B	-34.24B	-52.84B	42.38B	139.32B
	Investing Cash Flow
-9.35B	-180.00M	7.30B	-2.16B	-1.18B	-851.00M
	Financing Cash Flow
-8.34B	-6.42B	-4.68B	9.25B	14.52B	18.52B

BNP Paribas Technical Analysis

Technical Analysis Sentiment

Positive

Last Price43.45

Price Trends

50DMA

41.13

Positive

100DMA

38.94

Positive

200DMA

35.15

Positive

Market Momentum

MACD

0.67

Positive

RSI

52.47

Neutral

STOCH

24.73

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNPQY, the sentiment is Positive. The current price of 43.45 is below the 20-day moving average (MA) of 43.87, above the 50-day MA of 41.13, and above the 200-day MA of 35.15, indicating a neutral trend. The MACD of 0.67 indicates Positive momentum. The RSI at 52.47 is Neutral, neither overbought nor oversold. The STOCH value of 24.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BNPQY.

BNP Paribas Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNC	81 Outperform	$70.31B	12.24	11.15%	3.69%	3.07%	19.01%
IBN	77 Outperform	$117.23B	19.31	17.89%	0.72%	22.15%	12.13%
BNPQY	76 Outperform	$98.26B	8.40	9.69%	6.05%	5.70%	11.52%
ITUB	74 Outperform	$66.33B	9.33	20.65%	8.30%	-6.74%	5.13%
LYG	72 Outperform	$62.50B	13.08	8.73%	4.94%	-2.65%	-14.84%
MFG	65 Neutral	$67.83B	11.97	8.45%	2.33%	13.63%	27.77%
Sector *	64 Neutral	$12.77B	9.71	7.85%	78.06%	12.07%	-7.97%

* Financial Sector Average

Performance Comparison

BNPQY

BNP Paribas

43.45

13.15

43.40%

IBN

Icici Bank

33.08

6.92

26.45%

ITUB

Itau Unibanco

6.56

1.58

31.73%

LYG

Lloyds Banking

4.19

1.57

59.92%

MFG

Mizuho Financial

5.50

1.63

42.12%

PNC

PNC Financial

173.37

26.06

17.69%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.