BNPQF - BNP Paribas: An Attractive Buy After Recent Underperformance

2024-06-12 10:42:38 ET

Summary

• BNP Paribas has underperformed iShares MSCI Europe Financials ETF in 2024 due to a snap parliamentary election in France.
• The bank only derives 25% of its revenue from France, with the Eurozone as a whole contributing 67%.
• Q1 2024 showed a return on tangible equity of 12.4% and a tangible book value of €93.4/share, up 3.5% Q/Q.
• The bank offers a circa 50% upside relative to large peers such as ING.
• Key risks include new bank levies, a worsening business environment, and ECB rate cuts.

Introduction

BNP Paribas ( BNPQF ) has underperformed the iShares MSCI Europe Financials ETF ( EUFN ) so far in 2024, with the shares delivering a mid-single-digit loss against a mid-single-digit gain for the benchmark ETF:

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