BNP Paribas is set to release its fourth-quarter results on Thursday, providing key insights into the financial performance of the French bank. Here are the important details you should know.
Net Profit Forecast
According to a consensus provided by FactSet, BNP Paribas is expected to report a net profit of 1.77 billion euros ($1.91 billion) for the three months ending December. This forecast is based on estimates from six analysts. It is worth noting that this figure has been restated due to a change in accounting standards, as the net profit for the comparable period in 2022 was 2.14 billion euros.
Based on estimates from eight analysts, BNP Paribas is expected to achieve quarterly revenue of 11.42 billion euros. The bank’s revenue for the fourth quarter of 2022, following the restatement, was 10.885 billion euros.
BNP Paribas shares have shown little movement compared to a year ago as of 1430 GMT on Wednesday. In contrast, the Stoxx Europe 600 Banks index has gained 7.3% over the same period.
What to Watch For
Analysts from Citi have highlighted that while many European banks benefited from higher interest rates in the past year, French banks, including BNP Paribas, faced pressure on their net interest income due to the delayed impact of interest rate cycles. However, there is anticipation that this trend may reverse this year, particularly for BNP Paribas’ French retail-banking operations which are expected to see improved performance. BNP Paribas itself expects to generate an additional revenue boost of 2 billion euros by 2026 from higher rates, which is approximately 16% of Citi’s projected pretax profit for the bank in 2023.
UBS analysts have pointed out that BNP Paribas completed the sale of Bank of the West last year. As a result, investors will be keen to know how the bank plans to utilize its capital going forward, whether it be for investment in its own operations or to enhance returns for shareholders.
In conclusion, markets eagerly await the release of BNP Paribas’ fourth-quarter results, which will provide a comprehensive overview of the bank’s financial performance.