BNPQF - BNP Paribas: All-Weather Properties On Display In Q1

2024-04-26 17:35:21 ET

Summary

• Shares of French banking giant BNP Paribas have done well since my last update, gaining around 20% and tightening their discount to tangible book value.
• The bank reported solid Q1 results, with ongoing softness in trading income and domestic retail banking not stopping it from generating a solid 12.4% return on tangible equity.
• In common with French peers, BNP is one of the least rate-sensitive banks in the Eurozone, and this could stand it in good stead in the coming years.
• At 0.75x tangible book value, these shares still look too cheap relative to BNP's earnings power, pointing to attractive medium-term return potential for investors.

Shares of French banking giant BNP Paribas ( BNPQY )( BNPQF ) have perked up since I last covered them post-2023 results in February , narrowing their discount to tangible book value on the back of a ~20% return in that time....

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