Key facts
- BNP Paribas' net profit rose 33% to €4.35 billion in the second quarter.
- Revenue increased 12% year-on-year to €14.1 billion.
- Equity trading revenue surged 43% to a record high.
- Retail banking performance improved with a 17% net interest income growth in core French and Belgian businesses.
- Operating expenses increased by 10% due to integration costs from the AXA IM acquisition.
BNP Paribas surpassed second-quarter profit expectations, reporting a 33% increase in net income to €4.35 billion ($4.97 billion). This performance was largely driven by record revenues in equity trading and a rebound in its retail banking operations. Overall revenue climbed 12% year-on-year to €14.1 billion.
The bank's corporate and institutional banking division saw sales rise 13%, with equity and prime services revenue jumping 43% to a new high. This surge in trading activity was attributed to market volatility stemming from the Iran war and a strong wave of corporate dealmaking, mirroring successes seen by larger Wall Street competitors.
In contrast, fixed-income, currencies, and commodities trading revenue remained broadly flat, lagging behind U.S. peers. Retail banking in core French and Belgian markets showed strength with a 17% increase in net interest income, though the Italian retail unit experienced a nearly 5% decline.
Operating expenses increased by 10%, partly due to higher costs associated with the integration of AXA Investment Managers, acquired for €5.1 billion. Analysts noted these costs as a potential soft spot, though some suggested the bank strategically front-loaded integration expenses given the strong revenue performance. BNP Paribas also achieved its 13% Common Equity Tier 1 (CET1) ratio target ahead of schedule.
Despite the positive results, BNP's shares edged down 0.8% in early trading. The bank's stock has seen a nearly 30% increase in 2026, outperforming many European rivals.