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BNP Paribas CEO says bank could raise payout ratio to 70% - Finance news and analysis from Global Banking & Finance Review
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BNP Paribas CEO says bank could raise payout ratio to 70%

Published by Global Banking & Finance Review

Posted on October 28, 2026

2 min read

· Last updated: October 28, 2026

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BNP Paribas CEO: Raising Payout Ratio to 70% Under Board Consideration

BNP Paribas Considers Increasing Shareholder Returns

By Mateusz Rabiega

Potential Payout Ratio Increase

Oct 28 (Reuters) - French lender BNP Paribas could raise its payout ratio to 70% of annual earnings from 60% as part of an upcoming board discussion, CEO Jean-Laurent Bonnafe told analysts on Wednesday.

Recent Financial Performance

Earlier on Wednesday, the euro zone's largest bank by assets beat forecasts and unveiled a €1.3 billion share buyback.

CEO's Statement on Growth and Profitability

"The bank... growing faster, being more competitive and profitable, will originate more free cash flow and free equity. So this is a good reason to increase the regular payout. One possibility is to... go from 60% to 70%", Bonnafe said after being asked about plans concerning excess capital distribution.

Excess Capital Distribution

He also added that, separately from any increase in the payout ratio, the bank could also decide to return excess capital above the CET1 ratio of 13%.

Context: European Banking Sector

Record Profits and Shareholder Distributions

European banks have enjoyed record profits since 2024, boosted by higher interest rates, leaving many with excess capital available for shareholder distributions.

Board Decision Timeline

Bonnafe noted that the increase, which would probably be carried out via buybacks, is one of the options at the table as the executive board will settle on the final decision in the coming weeks.

(Reporting by Mateusz Rabiega; Editing by Matt Scuffham)

Key Takeaways

  • BNP Paribas beat Q3 profit forecasts—net income rose ~14% to €3.46 billion—and announced a €1.3 billion share buyback starting November 2026 after receiving ECB approval (live.euronext.com)
  • CEO cited increased free cash flow and equity as rationale for potential payout increase from 60% to 70%, with the board to decide in coming weeks (live.euronext.com)
  • Broad European banking sector has seen record profitability since 2024 thanks to higher interest rates, robust fee and trading income, enabling banks to boost capital distributions (bankingsupervision.europa.eu)

References

Frequently Asked Questions

What payout ratio increase is BNP Paribas considering?
BNP Paribas is considering raising its payout ratio to 70% of annual earnings from the current 60%.
Who announced the potential payout ratio change at BNP Paribas?
CEO Jean-Laurent Bonnafe announced the possible increase during a discussion with analysts.
What actions has BNP Paribas recently taken regarding shareholder returns?
BNP Paribas beat forecasts and unveiled a €1.3 billion share buyback, with further capital distribution possible.
Why is BNP Paribas able to consider increasing its payout ratio?
The bank’s strong earnings and excess capital from record profits, aided by higher interest rates, allow for increased shareholder distributions.
When will BNP Paribas’ board decide on the payout ratio change?
The bank’s executive board will make a final decision on the payout ratio in the coming weeks.

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