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With its already ambitious plans to grow its revenue and profit on a steady basis, BNP Paribas is looking at diversifying its businesses in order to harness the potential in new markets.
French multinational banking giant, BNP Paribas SA (EPA: BNP) has released its performance report for the fourth quarter and the 2022 full-year fiscal report. Per the released result, the company said the quarter’s net profit attributable to shareholders came in at 2.2 billion euros ($2.36 billion).
The net profit for the 2022 fiscal year was pegged at 10.2 billion euros, down from the 10.9 billion euros that were projected by analysts polled by Refinitiv. Taking a highlight of the company’s figures against broader market expectations, its annual revenue topped 50.4 billion euros, up 46.2 billion euros from a year ago.
CET1 ratio, a measure of bank solvency stayed came in at 12.3% for the quarter as against 12.1% in the third quarter. BNP Paribas attributed the current performance to a number of factors ranging from the “diversified and integrated model and the expertise of our teams.”
“On the strength of this performance and with additional growth potential stemming from the redeployment of capital released by the sale of Bank of the West, combined with the positive impact of the rise in interest rates in 2022, the Group reaffirms the importance and relevance of the pillars of its Growth, Technology & Sustainability 2025 strategic plan and is revising upward its ambitions,” the bank said in a statement.
Riding on the published results, the French banking giant highlighted its plans to grow its annual net income by 9%. The projected growth rate projected started was billed to start in the past fiscal year to 2025.
The banking giant also shared a renewed anticipation for its business as it detailed a robust share buyback program. Per its plans, it hopes to spend a total of 5 billion euros on the buyback program.
BNP Paribas to Grow Profit with Diversity
With its already ambitious plans to grow its revenue and profit on a steady basis, BNP Paribas is looking at diversifying its businesses in order to harness the potential in new markets. As reported by Coinspeaker, BNP Paribas entered into a partnership with Swiss institutional digital asset custody firm, Metaco.
The goal of the partnership is to expand into the digital currency ecosystem, a bid for the firm to deepen its role in the space while also providing the right competition with other players in the space.
BNP Paribas is known for its proactive embrace of blockchain-related innovations. In one of such move, the bank joined the Onyx platform from JPMorgan Chase & Co (NYSE: JPM). While its crypto-related programs are still very conservative, the company is projecting a future where banks will make a huge entry into the crypto space.
“The series of banks that were already working on certain topics suddenly transformed from innovation pilots to concrete go-to market strategies. You will start seeing a series of announcements involving very big custodians. It’s almost FOMO as these large banking players know that their future somehow depends on this capability,” Adrien Treccani, the CEO of BNP Paribas’ partner Metaco said in a statement.