BNP Paribas wants to buy back EUR 5 billion of shares

Thursday 9 February 2023 11:58 CET | News

France-based bank BNP Paribas has revealed its plans to buy back EUR 5 billion of shares following the sale of its US unit.


To be specific, the representatives from the bank issued a statement in which they clarified that the entity will distribute about EUR 4 billion in relation to the Bank of the West sale, as well as  EUR 962 million as part of its conventional shareholder return policy. These sums will be distributed in two tranches during 2023. 

Due to rising expenses, the bank posted a net income of EUR 2.15 billion, which is 7% lower when compared to last year’s stats. However, Bloomberg reports that trading debt securities revenue went up by 45%, which is higher than Deutsche Bank AG, BNP Paribas’ rival in Europe.


France-based BNP Paribas has revealed its plans to buy back EUR 5 billion of shares following the sale of its US unit.


BNP Paribas’ recent performance figures

Towards the end of 2021, BNP Paribas sold Bank of the West to the Canada-based Bank of Montreal for more than CAD 16 billion. The bank raised its target for net income growth through 2025 to more than 9% from above 7% and return on tangible equity to about 12% from above 11%. It also set a new goal for earnings-per-share growth of more than 12% through the period according to Bloomberg. 

BNP Paribas is also looking into a reduction of EUR 2.3 billion in recurring costs by 2025, which is also up from a previous goal of EUR 2 billion.  BNP’s Commercial, Personal Banking, and Services unit, which comprises its retail operations, experienced an 8% gain in revenue when compared to the previous year, an increase caused by official interest-rate increases.

Previous developments from BNP Paribas

In October 2022, BNP Paribas entered a GBP 200 million financing partnership with UK-based embedded lender Fluro. Through this financing partnership, the bank was looking to grow its lending capabilities by providing more customers with fair rates and a transparent service.  

Embedded lending, which refers to lending offered via non-financial services or products, eliminates the high cost associated with third parties such as financial institutions.  Fluro is looking to develop partnerships and market its technology to companies that are looking to offer their own consumer loans in a quick manner. 

In the same month, the bank agreed to purchase Kantox, a UK-based currency management automation company, for USD 133 million. At the time, company representatives revealed that the acquisition will help make its technology available to a wider range of corporate customers worldwide. The deal represented a culmination of a three-year-long relationship between Kantox and BNP Paribas.

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Keywords: banks, financing , digital banking, banking
Categories: Banking & Fintech
Companies: BNP Paribas
Countries: France
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BNP Paribas

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