France’s largest bank, BNP Paribas, reported a robust third quarter on Wednesday, with net income reaching €3.46 billion. This figure represents a 13.5% increase compared to the same period last year, surpassing the average estimate of €3.23 billion predicted by analysts surveyed by the bank. Revenue for the quarter rose by 9.5% to €13.76 billion, a performance largely spearheaded by the corporate and institutional banking division, which saw its revenue climb 16.6% to €5.2 billion.
A significant factor in the quarterly success was a 50% surge in equities trading revenue. Within the global markets division, revenue jumped 21.9% to €2.67 billion, nearing the record levels achieved in the first quarter of 2026. Specifically, equity and prime services—which encompass stock trading and services like clearing and lending for hedge funds—contributed €1.46 billion to the total. Conversely, fixed income, currencies, and commodities trading remained flat at €1.22 billion, as growth in Asia and foreign exchange markets was offset by weaker performance in interest rate and credit business.
CEO Jean-Laurent Bonnafé described the results as a very strong third quarter, noting that the performance was driven by operations across all three of the group's divisions. The commercial and personal banking and services division, which handles household and business accounts, experienced a 3.6% revenue increase, benefiting from the current interest rate environment and higher fee income. However, the bank noted a weak spot in car leasing, where revenue at Arval and Leasing Solutions fell by 29.1% due to declining used-car prices.
BNP Paribas also provided insight into its risk management regarding the ongoing French political and fiscal crisis. The bank confirmed it holds approximately €19 billion in French government bonds, with €16 billion of that amount recorded at amortised cost, protecting its capital from market price volatility. The bank estimated that if the gap between French and German bond yields were to widen by another 0.5%, its CET1 ratio would be impacted by only about 0.02 points. In the broader economy, the yield on French 10-year government bonds recently rose above 5% for the first time since 2002, amid legislative gridlock and public protests over the national budget. Ratings agency Moody's kept France's rating unchanged on Friday, but with a negative outlook.
The cost of risk, representing money set aside for loans that may not be repaid, rose to €964 million, or 39 basis points of customer loans, which is just inside the bank's 2026 guidance of under 40 basis points. Looking ahead, BNP Paribas confirmed its financial targets through 2028, aiming for a 12% return on tangible equity this year and exceeding 13% by 2028. The bank plans to initiate a €1.3 billion share buyback program starting in November, following approval from the European Central Bank. A new strategic plan for 2030 is scheduled for announcement on 2 February. Shares of the bank traded about 1.5% lower at the open in Paris on Wednesday.
