BNPQF - BNP Paribas Q4 Earnings: Maintaining A Tactical Buy

2024-02-15 20:08:17 ET

Summary

• Soft Q4 with BNP Paribas over-reliant on corporate investment banking growth.
• Future targets are attractive, but we are less optimistic. That said, the bank lowered and postponed the Return on Tangible equity.
• BNP Paribas offers a total yield of >10% with a safe balance sheet. The tangible net book value per share is increasing, and our valuation is confirmed.

Following our update on the Italian banks ( Intesa Sanpaolo and UniCredit ), we are back to comment on BNP Paribas ( OTCQX:BNPQF )( OTCQX:BNPQY ). In our last update, we saw Light And Shadow , and post-Q4 results, the company's share price declined significantly. BNP’s pre-provision profit fell by 15%, driven by 4% weaker revenues across 10 out of 12 divisions and slightly higher costs. Looking at the Q4, the pre-tax profit also missed consensus by 9%....

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