Published Thu, Jul 23, 2026 · 05:38 PM
[PARIS] French lender BNP Paribas beat second-quarter forecasts as record equity trading and a rebound in retail banking helped lift net profit by a third, offsetting higher costs from the integration of AXA Investment Managers (AXA IM).
Net income in the three months to end-June rose to 4.35 billion euros (US$4.97 billion), also boosted by one-off gains from a reworked Ageas insurance partnership, and beat the 4.21 billion euro average of 15 analyst estimates compiled by the bank.
Revenue at the eurozone’s biggest bank by assets rose 12 per cent year on year to 14.1 billion euros, also above expectations, while operating expenses increased at a pace of 10 per cent.
Analysts flagged costs as a soft spot in an otherwise upbeat quarter, pointing to expenses running slightly above expectations following the 5.1 billion euro acquisition of AXA’s asset management arm, as well as continued weakness at car-leasing unit Arval.
“Street will probably focus on the perceived cost ‘miss’, but we suspect BNP used the strong revenue result to front-load AXA IM integration costs,” Jefferies said in a note. Citi called it “a good set of results”, highlighting strong equities performance and solid capital generation.
BNP’s shares were edging down by 0.8 per cent in early trading on Thursday (Jul 23). The bank’s shares, which had underperformed rivals in recent years, are up close to 30 per cent in 2026, nearly double the average lender in Europe.
BNP Paribas is the first of the European investment banks to report Q2 numbers, with investors eager to see how they have fared amid a surge in trading activity triggered by the Iran war, as well as a frenzy of corporate dealmaking, that has delivered a huge revenue haul for bigger Wall Street rivals.
Volatility in financial markets triggered by the Iran war has provided a boon for trading floors, while blockbuster merger and acquisition deals and initial public offerings have fuelled investment banking fees.
Equity trading revenue hits record
BNP’s long-time CEO Jean-Laurent Bonnafe has made the investment bank critical to the French lender’s overall success, but performance has been subdued in some recent quarters.
Sales at BNP’s corporate and institutional banking division rose 13 per cent, ahead of expectations, supported by a 43 per cent jump in equity and prime services revenue to a record level.
Fixed-income, currencies and commodities trading revenue was broadly flat, however, lagging that of US peers, which all reported strong growth in the business.
Several Wall Street rivals, including JPMorgan and Bank of America, reported overall investment bank revenue increases of more than 30 per cent.
In its core French and Belgian retail businesses, BNP reported year-on-year growth of about 17 per cent in net interest income (NII) – the difference between what a bank earns on loans and pays on deposits. BNP’s Italian retail unit, by contrast, posted a near 5 per cent decline in NII as lending revenue weakened.
Capital boost, targets reaffirmed
The bank said that it had reached its 13 per cent Common Equity Tier 1 ratio target, a key measure of financial strength, at the end of June, ahead of an end-year target Bonnafe cited in April.
The capital position was helped by the completion in April of a reworked partnership with Belgian insurer Ageas, which generated 858 million euros in gains.
The French lender, which confirmed its 2026 and 2028 financial targets, said that it would lay out its next strategic plan in February of next year.
Investors are also monitoring BNP’s appeal against a US court judgment linked to Sudan-related litigation.
The bank filed its opening brief with the US Court of Appeals for the Second Circuit in May and said it has since received support through amicus briefs from the US and Swiss governments. REUTERS
