Two quarterly magazines, two intersecting stories. On the one hand BNP Paribas defends profitability, with growing operating results and confirmed targets despite a slight decline over the nine months; on the other hand, HSBC beats revenue expectations but is impacted by huge provisions lawyers linked to the Madoff case. And while BNP shares are losing ground in Paris, HSBC is gaining ground in London.
BNP Paribas: Profits Above €3 Billion, But Shares Fall
BNP Paribas posts solid third quarter results with a Net income of 3,04 billion euros, up 6,1% on an annual basis, and quarterly revenues of 12,57 billion (+5,3%). Gross operating profit is close to 5 billion (+4,9%), while operating profit stands at 4,04 billion (+2,1%). Over the nine months, however, a slight decline is recorded:consolidated net profit falls to 9,25 billion compared to 9,37 billion in the same period of 2024, while thepre-tax profit grows of 1,8% to 13,08 billion. total revenue of the group reached 38,1 billion euros (+3,9%).
The CEO Jean-Laurent Bonnafé He emphasized the group's solidity and its continuity with the strategic plan: "In the third quarter, the group achieved good operating performance across all its divisions. The financial structure is very solid, with a CET1 ratio of 12,5% and organic capital generation of 30 basis points. Our results are in line with our 2025 net profit target of more than €12,2 billion and our growth trajectory for 2026."
The bank also highlighted the contribution of the recent integration of AXA Investment Managers, defined by Bonnafé as “a strategic transformation factor that strengthens leadership in the asset management sector”.
BNL improves, but stock suffers in Paris
Within the group, BNL Banca Commerciale confirms its relaunchIn the quarter, deposits grew by 0,3%, driven by Private Banking and corporates, while loans increased by 0,8%. Pre-tax profit jumped 45% to €309 million, supported by a growing operating profit and declining costs (–1,6%).
Despite solid financial statements, BNP Paribas shares reacted negatively on the stock market, falling by almost 3% to 67,25 euros. Jefferies analysts, however, confirmed the buy recommendation with a target price of 95 euros, which implies a potential upside of more than 40%.
HSBC: Revenues exceed expectations, but massive legal expenses drag down profits
The British HSBC Holdings instead closes the third quarter with a reported pre-tax profit of 7,3 billion dollars, down of 1,2 billion compared to the same period in 2024, but better than expected of the market. Net interest margin (NII) rose 15% to $8,8 billion, while total revenue increased 5% to $17,8 billion.
Operating expenses weighed heavily, which grew due to $1,4 billion in legal provisions related to historic cases, including that relating to Bernard Madoff's Ponzi scheme.
The quarterly net profit stood at $5,5 billion, also down $1,2 billion year-on-year. In the first nine months, the group recorded a pre-tax profit of 23,1 billion (–6,9 billion compared to 2024) and a net profit of 17,9 billion.
"We are becoming a simpler, more agile and focused bank, built on our strengths. The progress we are making makes us confident in our ability to improve upon our objectives," commented the CEO. Georges Elhedery.
HSBC has in fact raised the guidance on net interest margin for 2025, which is now expected to be equal to or greater than $43 billion, thanks to increased confidence in the path of interest rates in its key markets, particularly Hong Kong and the United Kingdom. The group also confirms its target of a mid-teens RoTE for 2025 and to maintain this profitability in 2026-2027.
HSBC shares are up 3% at 1.034 pence.
