BNP Paribas raises profitability targets for its Belgian unit
BNP Paribas Sets Ambitious Financial Goals for Belgian Operations
June 1 (Reuters) - BNP Paribas raised profitability targets for its commercial and personal banking business in Belgium on Monday, aiming for a pre-tax return on notional equity of 22% in 2028 and 25% in 2030, compared with 13.6% last year.
Contribution to Group Performance
The Belgian unit is expected to contribute 0.5% of the French lender's return on tangible equity by 2028, compared with 0.3% previously. BNP Paribas group's ROTE trajectory remains on track to exceed 13% by 2028, it said.
Key Targets for the Belgian Unit
Revenue Growth and Profitability
• Average yearly revenue growth of 9% between 2025 and 2028, driven primarily by net interest income
Cost Management
• Cost-income ratio of around 59% by 2028, an improvement of around 10 percentage points
Loans, Deposits, and Workforce
Loans and Deposits
• Annual loans and deposits growth of around 2% on average from 2025 to 2028, with a stable deposit mix
Staff Reduction
• A net reduction of around 1,000 staff over the 2025–2028 period, entirely through natural attrition, a BNP spokesperson said
(Reporting by Lucie Barbier; editing by Milla Nissi-Prussak and Paul Simao)
