PARIS (Reuters) – BNP Paribas announced Tuesday during a presentation to its investors target a profitability before tax (RONE) of more than 17% by 2028 for its subsidiary specializing in funding to individuals through its consumer credit activities, BNP Paribas Personal Finance.

BNP Paribas Personal Finance, known for its brands and partnerships such as Cetelem, Cofinoga or Stellantis Financial Services, released profitability of normative equity before 8.5% in 2024, according to its presentation.

This new objective, announced as part of the extension of the strategic plan by 2028 in force since 2023, is set after a geographic refocusing in Europe and in the United Kingdom, with for example the sale or sale of the activities of BNP Paribas Personal Finance in 10 countries, and a reduction in its workforce, especially in France.

The subsidiary highlights in particular a positive impact of 250 basic points resulting from the revision of prices in 2024 compared to 2021 and recurrent cost savings of 320 million euros from 2025 in essential countries.

BNP Paribas Personal Finance, who had suffered from the increase in interest rates and defects in recent years, already benefits from the fruits of its strategy with a rather stable banking product in 2024 to 5.1 billion euros but a result before growth tax of 21.6% over one year at 822 million euros. Its operating coefficient fell 2.4 points in one year to 54.8%.

To double its profitability within three years, the bank notably relies on an average outstanding outstanding of loans of around 4% per year, against 2% to 3% expected for the market, and an average annual growth of 5.5% of income from its essential perimeter over the period 2024-2028.

The targeted chisel effect is more than four points by 2028, while the reconstruction of loans on loans should be the first source of profitability growth (+3.2%).

(Written by Bertrand de Meyer, edited by Blandine Hénault)

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