BNP Paribas and UBS delivered sharply contrasting financial performances, causing their shares to move in opposite directions on Tuesday.
While BNP Paribas jumped 2.3%, boosted by strong earnings and a dividend increase, UBS fell 5.4% after missing profit expectations and warning of higher capital requirements.
BNP Paribas CEO Jean-Laurent Bonnafé highlighted the bank’s financial strength, while UBS CEO Sergio Ermotti reassured investors about Credit Suisse’s integration.
BNP Paribas Exceeds Expectations, Lifts Shareholder Returns
BNP Paribas, the largest lender in the eurozone by assets, posted a 15.7% rise in net income to €2.32 billion, exceeding expectations.
Revenue climbed 10.8% to €12.1 billion, driven by investment banking, with Corporate & Institutional Banking revenue soaring 20.1%.
The Global Markets division surged 32.4%, benefiting from a 30% rise in equity trading and a 34.2% jump in fixed income, currencies, and commodities trading.
BNP Paribas adjusted its 2025 return on tangible equity (ROTE) target to 11.5%, with plans to achieve 12% by 2026.
The bank raised its dividend by 4.1% to €4.79 per share and announced a €1.08 billion share buyback programme for Q2 2025.
UBS Misses Profit Targets Despite Earnings Recovery
UBS returned to profit with $770 million (€745 million) in net income, recovering from a $279 million (€270 million) loss a year ago.
Despite the rebound, earnings per share ($0.23/€0.22) fell below analyst expectations of $0.30 (€0.28).
Revenue rose to $11.64 billion (€10.75 billion) but missed consensus forecasts, raising concerns about UBS’s growth outlook.
The bank plans $3 billion (€2.77 billion) in share buybacks for 2025, alongside a $0.90 dividend per share.
CEO Sergio Ermotti emphasized progress in integrating Credit Suisse, yet warned of rising Swiss capital requirements affecting future profitability.
UBS cautioned that regulatory changes following Credit Suisse’s collapse may increase capital demands, creating uncertainty for investors.
