BNP Paribas (BNP) Goldman Sachs 29th Annual European Financials Conference summary

Operating environment and business performance

• Achieved 6% top-line growth in Q1 with costs rising more slowly and cost of risk at 33bps, below the 40bps guidance.

• Credit portfolio is 80% investment grade, with no sector exceeding 4% of exposure, supporting resilience.

• CIB and corporate clients continue to invest, with no signs of contraction; demand for long-term savings remains high in Europe.

• Objectives reaffirmed: 5% top-line growth, 7% bottom-line growth, and 8% EPS growth, supported by share buybacks.

• Asian investors are recalibrating towards Europe, favoring diversified banks for growth.

Strategic positioning and market developments

• European regulatory changes and geopolitical shifts are prompting greater focus on developing local capital markets.

• Well-positioned to originate, structure, and distribute loans across Europe, with expanded distribution capacity post-AXA IM deal.

• Anticipates increased demand as Europe invests in defense, technology, and sustainability; expects to offload up to 10% of balance sheet.

• Smaller European banks will require these services, reinforcing the group's strategic role.

Markets and IPS division outlook

• Markets revenues up 17% in Q1, with equities up over 40%; platform now offers integrated cash equities, derivatives, and prime brokerage.

• Now the top European bank in EMIA, up from ninth a decade ago, driven by cross-selling and fee-based products.

• Significant room to grow market share in equities, with only 53 of top 100 institutions using all three products.

• IPS (Investments, Protection, Savings) is unique in Europe, with strong demand and half of business from external distributors.

• IPS expected to grow from 15% to 20% of earnings by 2026 and to 25% by 2030, aided by acquisitions and platform expansion.