BofA Updates BNP Paribas Estimates After 'Strong' Q3 Results

03:53 AM EDT, 10/30/2026 (MT Newswires) -- BofA Global Research revised its forecasts for BNP Paribas (BNP.PA) after the Paris-listed lender's third-quarter results. "BNPP delivered a strong 3Q26 performance, reinforcing our view of an improving profitability trajectory, with accelerating earnings growth (revenues +9% YoY) driven by solid progress across French and Belgian retail, Europe-Med, Personal Finance, Global Markets and Global Banking, while Asset Gathering profitability benefited materially from the AXA IM deal," according to a Thursday note. The research firm also believes that BNP's return on tangible equity would "sustainably break above" 15% by 2030, on the back of "levers" across its businesses. Analysts said the group's corporate and institutional banking segment is generating returns higher than the cost of equity, while turnaround in its commercial and personal banking businesses in France and Belgium is already confirmed. "Likely crystallised at the 2027-30 CMD, we expect BNPP to upgrade its 2028E ROTE to c.14% and introduce a >15% ROTE target by 2030, driven by (1) >5% revenues CAGR, (2) 50-52% C/I, <+1% costs CAGR and >+3-4ppt jaws, and (3) <40bp CoR. We forecast c.15% EPS CAGR in 2026-30E, 8% cons upgrades," BofA wrote. As such, analysts now forecast EPS of 12.25 euros for 2026, up from the prior 12.13 euros. For 2027 and 2028, the research firm trimmed its projections to 13.45 euros and 15.84 euros, respectively, from 13.80 euros and 16.12 euros. The stock's buy rating was reiterated, with a price objective of 130 euros.