BNP Paribas posted group profit of 3.46 billion euros in the third quarter. That was an increase of 13.5 percent from the same period a year earlier, the eurozone's largest bank by total assets said on Wednesday. BNP Paribas thus beat the average analyst forecast of 3.23 billion euros. Pre-tax profit rose 18.1 percent to 5.06 billion euros. Revenue increased 9.5 percent to 13.76 billion euros. Costs rose less sharply, by 5.3 percent. This improved the cost-to-income ratio from 60.6 percent to 58.3 percent.

"The group delivered a very strong third quarter, driven by the operating performance of all three business divisions," said CEO Jean-Laurent Bonnafé.

Equity trading rises 50 percent

The main growth driver was Corporate & Institutional Banking (CIB). Revenue there increased 16.6 percent to 5.20 billion euros. Pre-tax profit rose even more sharply, by 35.2 percent to 2.25 billion euros. Capital markets business performed particularly well. In Global Markets, revenue climbed 21.9 percent to 2.67 billion euros. Equity and prime brokerage alone rose 50 percent to 1.46 billion euros. Fixed-income and currencies trading, by contrast, remained virtually stable at 1.22 billion euros. In Securities Services, revenue rose 17.6 percent to 912 million euros.

Wealth management benefits from AXA acquisition

BNP Paribas also posted gains in insurance and wealth management. Revenue in the Investment & Protection Services division rose 5.3 percent to just under 2 billion euros. Pre-tax profit increased 26.4 percent to just over 1 billion euros. The bank benefited, among other things, from the integration of the acquired asset manager AXA Investment Managers. Assets under management in the division reached 2.55 trillion euros at the end of September. Net inflows since the start of the year totaled 49.4 billion euros. Of this, 31 billion euros came from asset management and 11.5 billion euros from wealth management.

In wealth management, revenue rose, in particular, thanks to higher fee income and brisk trading activity from Asian clients. BNP Paribas also announced an expansion of its business with ultra-high-net-worth individuals, entrepreneurs and family offices in the Nordic countries.

Headwinds in car leasing

The car leasing business developed less favorably. Combined revenue at Arval and Leasing Solutions fell 29.1 percent to 546 million euros. The main reason was persistently low used-car prices.

In traditional retail and corporate banking, revenue rose 3.6 percent overall. However, pre-tax profit in the overall Commercial, Personal Banking & Services division fell 6.5 percent to 2.04 billion euros. Credit risks also led to somewhat higher costs. Loan-loss provisions rose from 905 million euros to 964 million euros.

Share buyback of more than 1.3 billion euros

In the first nine months of the year, BNP Paribas generated group profit of 11.02 billion euros, compared with 9.25 billion euros in the same period last year. The bank plans to launch a share buyback program worth 1.3 billion euros in November. The European Central Bank has already approved the buyback.

The common equity Tier 1 ratio (CET1) stood at 12.9 percent at the end of September. The decline was due in part to the acquisition of leasing company Athlon. By year-end, the bank expects the ratio to be back above 13 percent. BNP Paribas is sticking to its existing medium-term targets. By 2028, return on tangible equity is set to rise to more than 13 percent, while the cost-to-income ratio is expected to fall below 56 percent.

On February 2, 2027, the bank plans to present its new strategy plan through 2030.