Eurozones’ leading bank, BNP Paribas BNPQY, disclosed that it plans to boost its cost-cutting plan by €400 million ($437 million).
The bank raised its cumulated savings target to €2.7 billion for the 2022-to-2025 period.
The additional cost cuts will primarily derived from automation, lower purchases, a cheaper way of running premises, and better so-called “mutualization” of tasks between outsourced employees, as per Reuters.
BNP Paribas reiterated a steady growth trajectory in net income, with 2024 net income expected to be higher than 2023 Distributable Net Income.
The bank also reaffirmed ROTE of 11.5% to 12% in 2025 and 12% in 2026. This, combined with a 60% payout ratio, is anticipated to return about €20 billion to its shareholders from 2024-2026.
Also Read: BNP Paribas Faces the Music – Reportedly Settles Case Over Swiss Franc Loan
This month, the bank launched a share buyback program of up to €1.055 billion for 2024.
In January 2024, BNP Paribas reported fourth-quarter FY24 revenues of €10.898 billion (vs. €10.885 billion a year ago) and net income decline of 50.1% Y/Y to €1.069 billion.
Price Action: BNPQY shares traded higher by 3.03% at $33.62 on Wednesday.
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