{"id":77807,"date":"2024-03-13T03:28:54","date_gmt":"2024-03-13T08:28:54","guid":{"rendered":"https:\/\/equitynewsreport.com\/bnp-paribas-hikes-cost-cuts-by-400-million-euros-after-weak-results\/"},"modified":"2024-03-13T03:28:54","modified_gmt":"2024-03-13T08:28:54","slug":"bnp-paribas-hikes-cost-cuts-by-400-million-euros-after-weak-results","status":"publish","type":"post","link":"https:\/\/equitynewsreport.com\/h\/bnp-paribas-hikes-cost-cuts-by-400-million-euros-after-weak-results\/","title":{"rendered":"BNP Paribas hikes cost cuts by 400 million euros after weak results"},"content":{"rendered":"
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\n\u00a9 Reuters. FILE PHOTO: A view of a BNP Paribas bank building in Paris, France, February 24, 2023. REUTERS\/Sarah Meyssonnier\/File Photo<\/span>
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PARIS (Reuters) -BNP Paribas, the euro zone’s largest bank, on Wednesday said it will step up its cost-cutting plan by 400 million euros ($437 million) after reporting weak results for the fourth quarter.<\/p>\n

The bank intends to generate the additional savings this year, increasing its cumulated savings goal over the 2022-to-2025 period to 2.7 billion euros.<\/p>\n

The additional cost cuts will notably stem from automation, lower purchases, a cheaper way of running premises and better so-called “mutualization” of tasks between outsourced employees, according to slides of a presentation to be made today by BNPP at a Morgan Stanley conference. <\/p>\n

BNPP’s announcement comes as banks are bracing for subdued deal flows, modest bonuses and heavy job cuts in 2024. The lender’s smaller French rival, Societe Generale (OTC:), said earlier this year that it will cut 900 jobs at its Paris head office. <\/p>\n

BNP Paribas (OTC:) also said the payout dividend ratio of 60% in 2024, 2025 and 2026 would represent about 20 billion euros payment for shareholders. <\/p>\n

Last month, BNP Paribas reported a surprise drop in fourth-quarter income and pushed back a key profitability target, triggering a more than 9% fall in the French bank’s shares.<\/p>\n

Revenues at its investment bank, as well as at its consumer and commercial real estate businesses, fell from 2023 and its Chief Executive Jean-Laurent Bonnafe said the outlook was not good as he expected an economic slowdown in the euro zone. <\/p>\n

Additionally, the bank confirmed on Wednesday its net profit would rise this year compared with 2023 and reiterated it will not hit its target for return on tangible equity (ROTE) – a measure of profitability – of 12% target until 2026.<\/p>\n

($1 = 0.9152 euros)<\/p>\n

($1 = 0.9155 euros)<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

\u00a9 Reuters. FILE PHOTO: A view of a BNP Paribas bank building in Paris, France, February 24, 2023. REUTERS\/Sarah Meyssonnier\/File Photo PARIS (Reuters) -BNP Paribas, the euro zone’s largest bank, on Wednesday said it will step up its cost-cutting plan by 400 million euros ($437 million) after reporting weak results for the fourth quarter. The bank intends to generate the additional savings this year, increasing its cumulated savings goal over the 2022-to-2025 period to 2.7 billion euros. The additional cost cuts will notably stem from automation, lower purchases, a cheaper way of running premises and better so-called “mutualization” of tasks […]<\/p>\n","protected":false},"author":5,"featured_media":77808,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[48,49,50,3],"tags":[],"_links":{"self":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77807"}],"collection":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/comments?post=77807"}],"version-history":[{"count":0,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/posts\/77807\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media\/77808"}],"wp:attachment":[{"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/media?parent=77807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/categories?post=77807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/equitynewsreport.com\/h\/wp-json\/wp\/v2\/tags?post=77807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}