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BNP Paribas sees path to around 50% cost-income ratio over time, CEO says - Finance news and analysis from Global Banking & Finance Review
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BNP Paribas sees path to around 50% cost-income ratio over time, CEO says

Published by Global Banking & Finance Review

Posted on July 23, 2026

1 min read

· Last updated: July 23, 2026

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BNP Paribas CEO Outlines Path to 50% Cost-Income Ratio via Efficiency Steps

BNP Paribas Targets Improved Efficiency and Cost-Income Ratio

CEO Jean-Laurent Bonnafe's Vision for Cost Reduction

PARIS, July 23 (Reuters) - BNP Paribas sees a path toward a cost-income ratio of around 50% over time as it steps up efficiency measures, Chief Executive Jean-Laurent Bonnafe said on Thursday.

Key Strategies for Achieving Efficiency

The French lender expects its cost-income ratio improvement to accelerate to around two percentage points a year from 2027 onwards, driven by a broader cost-cutting programme, increased use of artificial intelligence and simplified organisation.

Future Outlook and Analyst Briefing

BNP Paribas expects its cost-income ratio to fall below 56% by 2028, with further improvements thereafter, Bonnafe told analysts after the publication of the bank's second-quarter results.

(Reporting by Mathieu Rosemain; editing by Ingrid Melander)

Key Takeaways

  • The bank expects to bring cost‑income ratio below 56% by end‑2028, improving ~2 pct‑points annually from 2027 to ultimately reach ~50% over time, per CEO Bonnafé (group.bnpparibas).
  • Efficiency measures include a structural transformation of support functions affecting ~50% of cost base, driving cost savings rising from ~€700m/yr (2022‑26) to ~€1bn/yr (2027‑30), underpinned by greater AI use (investing.com).
  • BNP Paribas aims for continuous improvement in cost‑income ratio: ~61% in 2026, ~58% in 2028, with deeper reductions expected thereafter toward ~50% range (group.bnpparibas)

References

Frequently Asked Questions

What cost-income ratio target does BNP Paribas aim for?
BNP Paribas aims for a cost-income ratio of around 50% over time.
How does BNP Paribas plan to improve its cost-income ratio?
The bank plans to improve its cost-income ratio through efficiency measures, broader cost-cutting, increased use of artificial intelligence, and a simplified organisation.
By when does BNP Paribas expect its cost-income ratio to fall below 56%?
BNP Paribas expects its cost-income ratio to be below 56% by 2028.
Who announced BNP Paribas' new cost-income targets?
Chief Executive Jean-Laurent Bonnafe announced the new targets following the bank's second-quarter results.
What is driving the accelerated improvement in BNP Paribas' cost-income ratio from 2027?
A broader cost-cutting programme, use of artificial intelligence, and simplified organisation are expected to drive a two percentage point annual improvement from 2027 onwards.

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