Overview of BNP Paribas' Goals#
BNP Paribas SA has announced its ambition for its asset management division to nearly double its pre-tax profit by 2030. However, this target has not met market expectations, particularly after the bank adjusted its baseline by excluding underperforming sectors.
Profit Growth Projections#
The bank aims for its asset management pre-tax income to grow at about 13% annually, starting from a 2025 baseline of €820 million. By 2030, the goal is to reach approximately €1.5 billion. However, analysts at Morgan Stanley note that this projection falls short of the consensus estimate of €1.47 billion for 2029, which is the last year with available consensus data.
Changes in Business Structure#
The discrepancy in expectations is largely due to BNP Paribas removing certain underperforming businesses, specifically Real Estate Services and IPS Investments, from its calculations. Real Estate Services has been losing money but previously contributed around €200 million in pre-tax profit. Analysts suggest that the market may have anticipated some recovery in this area by 2029.
Future Strategies and Financial Targets#
BNP Paribas is targeting approximately €350 billion in net inflows by 2030, with a goal of growing assets under management by over 5% annually, assuming no market performance. Revenue is expected to increase by about 4% each year through 2030, while operating expenses are projected to remain stable. The bank aims to achieve a cost-to-income ratio below 60% and a return on notional equity above 65% by 2030.
Sandro Pierri, the CEO of BNP Paribas Asset Management, emphasized the platform's role in connecting savers and investors with real economy opportunities, highlighting the strategic importance of these targets.