BNP Paribas 2Q26: Broad-based growth supports a solid credit profile

• Broad-based 2Q26 growth and improving cost efficiency support a resilient earnings outlook across BNP’s diversified franchises.
• Asset quality remains solid, with stable NPLs and credit stress concentrated mainly in Personal Finance rather than group-wide.
• Funding is diversified and liquidity remains strong, helped by strong deposit franchise across Europe.
• CET1 capitalisation is sufficient versus peers, but the leverage ratio is the tighter constraint on balance-sheet growth and distributions.
• BNP bonds appear broadly fairly priced, with selective relative-value opportunities across Tier 2 securities.

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Business model

BNP Paribas (‘BNP’) is one of Europe’s largest diversified financial institutions. Its business comprises three main operating divisions: Commercial, Personal Banking & Services (CPBS), Corporate & Institutional Banking (CIB), and Investment & Protection Services (IPS), which contributed around 49%, 37%, and 14% of 2Q26 operating-division revenues, respectively. CPBS is BNP’s traditional deposit & lending franchise alongside specialised lending and is its most rates-sensitive segment; CIB covers corporate & investment banking, as well as markets and securities services; IPS comprises insurance, wealth, and asset management.

While BNP is known primarily for its French roots, its operations are geographically diversified. Its exposures are spread across Europe and other global markets; its deposit base shows a similar degree of diversification (Chart 1). Management also disclosed recently that France accounted for only about 10% of its profit before tax. Hence, BNP’s operating earnings are more diversified than its French identity might suggest, though French economic and sovereign risks can still affect funding conditions and its credit spreads.

Chart 1: BNP is well-diversified across Europe

Solid 2Q26 earnings

Broad-based revenue growth across segments

2Q26 top-line performance was solid, with Group revenue up +12% y/y to €14.1b. Revenues rose across all three operating divisions, helped by the AXA IM consolidation in IPS, and a smaller Corporate Centre drag (Chart 2).

CPBS revenue rose +5% y/y to €6.9b, with the improvement concentrated in Eurozone banking (+9% to €3.7b). Net interest income (NII) growth was likely driven by margin improvement helped by higher reinvestment yields. Furthermore, while overall loan and deposit volumes remained broadly stable, BNP reported an improved deposit mix with customers shifting away from higher-cost term deposits toward cheaper savings deposits (Table 1).

(Italy was the main exception, as BNL’s largely fixed-rate asset book limits the immediate benefit from higher rates.)

Apart from Eurozone banking, Personal Finance revenue rose +6% to €1.4b, supported by loan growth and improved production margins. Arval & Leasing Solutions revenue fell by -21% to €0.6b as weaker used-car resale values weighed on reported revenues. However, Arval’s organic revenue (excluding leasing) still grew +11%, with management citing fleet growth and higher financial margins.

CIB revenue rose +13% y/y to €5.3b, led by stronger market-related and client-flow revenues. Global Markets (+18%) benefited particularly from its Equities sub-category (+43%), where higher volatility and strong client demand supported revenue. Securities Services revenue (+17%) recorded a strong quarter amid market volatility, higher activity, and earlier client onboarding in 2025 and 1Q26.

IPS revenue growth (+27% y/y) was mainly driven by the AXA IM integration. Nonetheless, revenue would still have grown +8% on a constant-scope basis. Underlying growth was supported by higher assets under management (AUM) and associated fee income across Asset Management and Wealth Management. Insurance, meanwhile, remained a steady contributor with positive net inflows across geographies.

Chart 2: Broad-based revenue growth across segments

Table 1: Overall loan & deposit volumes remained stable

Loans & Deposits (€bn, y/y %)	Average loan outstandings	Average deposits
France	206 (-1%)	224 (-2%)
Belgium	146 (+1%)	160 (+1%)
Italy	72 (+2%)	67 (-1%)
Luxembourg	13 (+2%)	33 (+5%)
CPBS - Eurozone	437 (+0%)	485 (+0%)
Source: BNP Paribas, Bloomberg, iFAST compilations, iFAST estimates. Data as of 2Q26 (30 Jun 2026).

Positive operating leverage amid cost management, profits grew strongly

Costs remained well-controlled, supporting positive operating leverage. Operating expenses rose +10% y/y to €8.0bn in 2Q26, or +7% at constant scope and exchange rates. The larger headline figure partly reflected the recent AXA IM integration. BNP’s 2Q26 cost-income ratio improved by +0.8pp y/y to 56.7%, while its 1H26 ratio was 59.3%, slightly better than BNP’s ~60% FY26 target. Gross operating income rose +14% y/y to €6.1b (Chart 3).

(Note: Costs are seasonally higher in 1Q due to regulatory levies and taxes; hence, we focus on the y/y rather than q/q change.)

Improving cost efficiency and a stable cost of risk translated into strong profit growth. Cost of risk rose just +7% to €0.9b despite €95m of additional provisions for geopolitical risks. Reported net income rose to €4.3b, up +35% q/q from 1Q26 (€3.2b) and +33% y/y from 2Q25 (€3.3b). While this was boosted by a non-recurring €858m capital gain from the Ageas/AGI disposal, double-digit growth in underlying operating income shows that BNP’s underlying profitability remains intact.

Chart 3: Cost-income ratio improved as revenue growth outpaced costs

Positive earnings outlook for 2026

Main business segments generally expected to continue growing

BNP’s Eurozone NII outlook remains broadly supportive. Management said in July (2Q26 earnings call) that the rate environment remained favourable in France and Belgium, and that 2Q26 NII was not materially boosted by any one-offs. Higher reinvestment yields should continue to support margins, mitigated by further increases in deposit costs. In this scenario, we think the former may outweigh the latter, given the steepening of the yield curve we have seen, especially in France*. Meanwhile, BNP’s Italy business (BNL) remains less favourably positioned given its larger fixed-rate loan book, but we expect group NII to remain resilient.

(*Note: Management previously disclosed for its French banking franchise that deposits are invested across tenors averaging around 5 – 10 years, with the 10-year swap used as its disclosed long-rate benchmark.)

CIB should remain a meaningful growth contributor, though 2Q26’s exceptional Equities performance may not be easily replicated. Global Markets had benefited from unusually strong client activity and elevated volatility, possibly around the time of the Middle East conflict. However, looking ahead, we see more reasons to be positive, including its strengthening Global Banking pipeline and continued Securities Services onboarding, where revenue growth depends more on client volumes and is more recurring in nature.

The recent AXA IM integration also gives BNP a relatively less rate-sensitive source of recurring fee income. Continued AUM growth and positive net inflows within IPS should support earnings. While Asset Management and Wealth Management are still exposed to market fluctuations and investor flows, the newly enlarged IPS franchise should reduce BNP’s dependence on lending spreads and trading revenues.

Guidance has become more confident over time

Management’s tone has grown more confident since its FY25 results, despite formal guidance technically remaining largely unchanged (Table 2). Its last major guidance upgrade came at FY25, when BNP raised its 2028 profitability targets. Following strong 2Q26 results, management largely kept these targets in place, but now explicitly expects to beat its 2026 trajectory. Management has reiterated increasing confidence that ~15% ROTE and ~50% cost-income could be achievable by 2030, though it stopped short of describing them as official guidance.

Table 2: Formal guidance largely unchanged

Management Targets (as of 2Q26)	Guidance at FY25 Earnings	Guidance at 1Q26 Earnings	Guidance at 2Q26 Earnings	Note
2026 ROTE (%)	12%	Affirmed	Affirmed	While target was affirmed again in 2Q26, management now expects to beat this trajectory (1H26: 13.3%)
2028 ROTE (%)	>13%	Affirmed	Affirmed	FY30 ambition (not guidance): ~15%
Cost-Income Ratio (%)	FY28: <56%	Added: FY26: ~60% Affirmed: FY28: <56%	Affirmed	Management added FY26 forecast in 1Q26, affirmed in 2Q26. FY30 ambition (not guidance): ~50%
Net Income Growth (%)	FY24 to FY26: 7% CAGR FY25 to FY28: >10% CAGR	Affirmed	Affirmed	-
Cost of Risk (bps)	<40 bps	Affirmed	Affirmed	-
Source: BNP Paribas, Bloomberg, iFAST compilations, iFAST estimates. Data as of 2Q26 (30 Jun 2026).

Asset quality remains strong, no broad-based deterioration

BNP’s overall asset quality remains solid with little evidence of broad-based deterioration despite a more uncertain geopolitical backdrop. 2Q26 cost of risk was unchanged at 39 bps and within management’s FY26 guidance. Stage 1/2 provisions included €95m in precautionary provisions for geopolitical risks. Stage 3 (non-performing) exposures were reported at €20.3b, or 1.6% of gross exposures, almost unchanged from the previous quarter (1Q26: €20.2b / 1.6%). Meanwhile, coverage remained ample at 66.4%, similar to the 66% - 68% range reported in the previous two quarters (Table 3).

We note that the cost of risk is not evenly distributed across BNP. Personal Finance is still BNP’s ‘riskier’ segment, with cost of risk at 153 bps in 2Q26, materially above the group average of 39 bps (Group ex Personal Finance: 25 bps). To us, this demonstrates BNP’s diversified business model across different segments with structurally different risk profiles, with credit risk more concentrated in Personal Finance. Encouragingly, cost of risk in the ‘riskier’ Personal Finance segment appears to have held steady in recent years, last peaking many years ago during the COVID era.

Other notable idiosyncratic segments, including Arval and private credit, remain manageable. On the former, BNP reported just €48m of credit costs for Arval & Leasing Solutions in 2Q26 (little changed from 1Q26), while annual results by Arval itself also do not point toward signs of credit stress in FY25. The more material issue here is weaker used-car residual values, though BNP expects to record this through lower revenues rather than higher provisions over time. On the latter, private credit exposure remains contained at €22b (3% of loans). Encouragingly, 90% comprises senior portfolio financing, with BNP reporting zero NPLs in this portfolio.

(Note: BNP is facing a Sudan litigation, but no Sudan-specific provision has been publicly identified thus far. We think the range of outcomes remains wide and prefer to wait for further information before commenting.)

Finally, France-related credit performance remains benign despite ongoing political uncertainty within the country. As mentioned previously, BNP is less concentrated in France than its heritage suggests. French CPB cost of risk was just 25 bps in 2Q26, very similar to levels in previous quarters (e.g. 1Q26: 24 bps). We hence see little evidence of French uncertainty feeding into underlying asset quality thus far.

Table 3: Stage 3 exposures & coverage held steady

Stage 3 Loans - Asset Quality	Dec 2025	Mar 2026	Jun 2026	Change (from Dec 2025 to Jun 2026)
Exposure (€ bn)	19.9	20.2	20.3	+2%
Exposure (% of Total)	1.6%	1.6%	1.6%	-
Provisions (€ bn)	13.3	13.6	13.5	+2%
Coverage Ratio (%)	66.9%	67.1%	66.4%	-0.50pp
Source: BNP Paribas, Bloomberg, iFAST compilations, iFAST estimates. Data as of 2Q26 (30 Jun 2026).

Funding and liquidity remain robust

BNP maintains a large and diversified funding base, with no strong reliance on any single geography (including France). Its deposit mix is diversified across retail (42%), corporates (45%), and financial institutions (13%), reducing dependence on any single depositor segment. BNP’s strong deposit franchise across Europe allows it to consistently tap low-cost deposit funding, while wholesale funding is also easily accessible given BNP’s strong investment-grade rating.

Liquidity is also comfortable. BNP’s liquidity coverage ratio (LCR) rose from 125% (1Q26) to 149% (2Q26), though this was due to prefunding for its Athlon acquisition (completed 31 July). Management expects this to normalise to 130% - 135% post-acquisition, still comfortably above the 100% regulatory minimum.

Capital buffer is sufficient; limiting factor is leverage rather than CET1

BNP's CET1 ratio reached 13.0% in 2Q26 (1Q26: 12.8%). This reflected +30 bps of organic capital generation net of RWA, offset by distributions (-20 bps) and modest RWA growth. Management’s medium-term target remains at the 13% level, while organic RWA growth is forecast at around 2%, suggesting CET1 is expected to remain around current levels over the coming quarters.

BNP’s binding capital constraint is, however, its leverage ratio, and not its CET1 ratio (Table 4). This 13.0% CET1 ratio represents a 257 bps buffer over regulatory requirements of 10.43%, roughly equal to about €20.3b of buffers. By contrast, its leverage ratio buffer was only about €15.3b. To us, this €15.3b binding constraint remains sufficient – as mentioned in previous articles, we think BNP remains well-capitalised with some optionality to cut distributions in an unexpected adverse scenario.

(Note: The leverage ratio constraint is likely due to its sizeable CIB balance sheet where exposures can carry relatively low risk weights on average.)

On CET1 alone, BNP’s ~260 bps buffer is broadly in line with large European peers (Chart 4). Societe Generale, Crédit Agricole S.A., and Deutsche Bank all carry roughly similar levels of headroom (under 300 bps). BPCE structurally operates with a higher buffer than its French bank peers (in line with BPCE management targets). Meanwhile, Santander’s buffer of 4.2% looks big, though it is expected to fall to around 2.7% after its Webster acquisition in 2H26. Overall, we view BNP’s CET1 capitalisation as sufficient rather than outright conservative; we also reiterate that leverage remains the more relevant constraint rather than CET1.

Table 4: BNP’s binding constraint is its leverage ratio

Capital Ratios as of 30 Jun 2026	Actual (%)	Requirement (%)	Buffer (€ bn)
CET1	12.98%	10.43%	20.3
Tier 1	15.47%	12.22%	25.9
Total Capital	17.72%	14.60%	24.8
Leverage	4.40%	3.85%	15.3
TLAC	27.1%	22.87%	33.6
MREL	30.3%	27.19%	24.7
Source: BNP Paribas, Bloomberg, iFAST compilations, iFAST estimates. Data as of 2Q26 (30 Jun 2026).

Chart 4: BNP’s CET1 buffer is sufficient, and similar to large European bank peers

Bond comparison

To summarise, BNP combines sound asset quality and sufficient capitalisation with a still-positive earnings outlook. We think its strong investment-grade ratings are justified, with limited fundamental credit pressure expected in the coming quarters.

BNP has many bonds outstanding, as it regularly taps capital markets for funding and capital requirements. We provide our take on their bonds denominated in different currencies: SGD, USD, AUD, and EUR.

SGD bonds: non-perpetuals

BNP has senior non-preferred and Tier 2 subordinated bonds outstanding in the SGD space (Table 5). We primarily prefer their Tier 2 subordinated bonds for their yield pickup over their seniors – while these are lower down the capital stack, we find loss-absorption risks low under our base case given BNP’s strong credit profile.

Their Tier 2 bonds (especially their 2034s and 2035s) screen broadly in line with peers, with yields clustered around the high-2% to low-3% range. Ultimately, it depends on the exposures of each business, and which would fit better in each individual’s portfolio. For instance, BNP would provide a diversified European exposure, BPCE would be more concentrated within France, while HSBC would have a larger Asian exposure.

Table 5: SGD non-perpetual comparison (BNP bonds bolded)

Bond Name	Reset / Maturity Date (Years to Reset / Maturity)	Ask Price	Yield to Worst (%)	Credit Rating (S&P / Moody's / Fitch)	Seniority
BNP 3.310% 23May2032 Corp (SGD)	23 May 2031 / 23 May 2032 (4.7 / 5.7)	101.724	2.88%	- / - / A+	Senior Non-Preferred
BNP 3.125% 22Feb2032 Corp (SGD)	22 Feb 2027 / 22 Feb 2032 (0.4 / 5.4)	100.190	2.67%	BBB+ / Baa2 / A-	Tier 2 Subordinated
BNP 5.250% 12Jul2032 Corp (SGD)	12 Jul 2027 / 12 Jul 2032 (0.8 / 5.8)	102.103	2.65%	BBB+ / Baa2 / A-	Tier 2 Subordinated
BNP 4.750% 15Feb2034 Corp (SGD)	15 Feb 2029 / 15 Feb 2034 (2.4 / 7.4)	103.668	3.16%	BBB+ / Baa2 / A-	Tier 2 Subordinated
BNP 3.950% 15Apr2035 Corp (SGD)	15 Apr 2030 / 15 Apr 2035 (3.6 / 8.6)	102.266	3.27%	- / Baa2 / A-	Tier 2 Subordinated
ACAFP 5.250% 07Sep2033 Corp (SGD)	07 Sept 2028 / 07 Sept 2033 (2.0 / 7.0)	104.281	3.00%	BBB+ / Baa1 / A-	Tier 2 Subordinated
BPCEGP 5.000% 08Mar2034 Corp (SGD)	08 Mar 2029 / 08 Mar 2034 (2.5 / 7.5)	104.144	3.25%	BBB / Baa2 / BBB+	Tier 2 Subordinated
HSBC 5.300% 26Mar2034 Corp (SGD)	26 Mar 2029 / 26 Mar 2034 (2.5 / 7.5)	105.180	3.15%	BBB+ / Baa1 / A-	Tier 2 Subordinated
HSBC 4.750% 12Sep2034 Corp (SGD)	12 Sept 2029 / 12 Sept 2034 (3.0 / 8.0)	104.574	3.14%	BBB+ / Baa1 / A-	Tier 2 Subordinated
ACAFP 4.250% 14Jan2035 Corp (SGD)	14 Jan 2030 / 14 Jan 2035 (3.3 / 8.3)	103.253	3.21%	BBB+ / Baa1 / A-	Tier 2 Subordinated
BPCEGP 4.600% 21Jan2035 Corp (SGD)	21 Jan 2030 / 21 Jan 2035 (3.4 / 8.4)	103.982	3.33%	BBB / Baa2 / BBB+	Tier 2 Subordinated
Source: Bloomberg, Bondsupermart, iFAST compilations. Data as of 11 Sep 2026.

SGD bonds: perpetuals

BNP’s perpetuals generally provide higher yields than its seniors and Tier 2 subordinated bonds (as expected) (Table 6). As before, we assess not only their yield-to-reset, but also the economic likelihood of a call on each perpetual’s first reset date, which is dependent on its reset rate and spread.

We find that BNP 5.900% Perpetual Corp (SGD) appears to be trading at a decent yield for its tenor (to first reset). While its reset spread (2.674%) is perhaps lower than some of its peer perpetuals by Societe Generale (SOCGEN) or Barclays (BACR), we think that BNP continues to have some incentive to call its perpetuals on first reset, especially as it can likely re-issue fresh ‘replacement’ perpetuals at cheaper coupons.

(Note: As with other Additional Tier 1 [AT1] instruments, we remind investors that these come with greater loss-absorption risks, as well as non-call / extension risks relating to perpetuals.)

Table 6: SGD perpetual comparison (BNP perpetuals bolded)

Bond Name	Reset / Maturity Date (Years to Reset / Maturity)	Ask Price	Yield to Worst (%)	Credit Rating (S&P / Moody's / Fitch)	Reset Rate
BNP 5.900% Perpetual Corp (SGD)	28 Feb 2028 / - (1.5 / -)	102.614	4.03%	BBB- / - / BBB	5y + 2.674%
UOBSP 4.250% Perpetual Corp (SGD)	04 Oct 2027 / - (1.1 / -)	101.606	2.71%	BBB- / Baa1 / BBB+	5y + 1.470%
SOCGEN 8.250% Perpetual Corp (SGD)	15 Dec 2027 / - (1.3 / -)	103.686	3.71%	BB / Ba2 / BB+	5y + 5.600%
UOBSP 5.250% Perpetual Corp (SGD)	19 Jan 2028 / - (1.3 / -)	103.423	2.65%	- / Baa1 / BBB+	5y + 2.393%
UOBSP 2.550% Perpetual Corp (SGD)	17 Jun 2028 / - (1.8 / -)	99.340	2.93%	BBB- / Baa1 / BBB+	7y + 1.551%
BACR 7.300% Perpetual Corp (SGD)	15 Sept 2028 / - (2.0 / -)	105.180	4.23%	- / Ba1 / BBB-	5y + 3.929%
HSBC 5.250% Perpetual Corp (SGD)	14 Dec 2029 / - (3.3 / -)	103.099	4.04%	- / Baa3 / BBB	5y + 2.237%
Source: Bloomberg, Bondsupermart, iFAST compilations. Data as of 11 Sep 2026.

USD bonds

BNP has many bonds outstanding in the USD space – we provide a non-exhaustive sample list in Table 7 below. We find their USD seniors (unsecured and non-preferred) fairly priced, best suited for conservative investors who wish to stay higher up the capital stack.

Meanwhile, for their USD perpetuals, investors who are concerned about non-call risks should focus on their perpetuals with higher reset spreads. We have bolded some below – investors can look forward to yields of generally 6% - 8% depending on tenor.

Table 7: USD bond comparison

Bond Name	Reset / Maturity Date (Years to Reset / Maturity)	Ask Price	Yield to Worst (%)	Credit Rating (S&P / Moody's / Fitch)	Seniority / Reset Rate
BNP 5.125% 13Jan2029 Corp (USD)	13 Jan 2028 / 13 Jan 2029 (1.3 / 2.3)	100.051	5.08%	A+ / A1 / AA-	Senior Unsecured / 1y + 1.450%
BNP 5.786% 13Jan2033 Corp (USD)	13 Jan 2032 / 13 Jan 2033 (5.3 / 6.3)	100.157	5.68%	A- / Baa1 / A+	Senior Non-Preferred / 1y + 1.620%
BNP 5.125% Perpetual Corp (USD)	15 Nov 2027 / - (1.2 / -)	98.696	6.29%	BBB- / Ba1 / BBB	AT1 / 5y + 2.838%
BNP 9.250% Perpetual Corp (USD)	17 Nov 2027 / - (1.2 / -)	103.850	5.79%	BBB- / Ba1 / BBB	AT1 / 5y + 4.969%
BNP 7.000% Perpetual Corp (USD)	16 Aug 2028 / - (1.9 / -)	100.969	6.45%	BBB- / Ba1 / BBB	AT1 / 5y + 3.980%
BNP 7.750% Perpetual Corp (USD)	16 Aug 2029 / - (2.9 / -)	103.624	6.37%	BBB- / Ba1 / BBB	AT1 / 5y + 4.899%
BNP 4.500% Perpetual Corp (USD)	25 Feb 2030 / - (3.5 / -)	91.854	7.21%	BBB- / Ba1 / BBB	AT1 / 5y + 2.944%
BNP 8.000% Perpetual Corp (USD)	22 Aug 2031 / - (4.9 / -)	104.404	6.93%	BBB- / Ba1 / BBB	AT1 / 5y + 3.727%
BNP 6.875% Perpetual Corp (USD)	15 Dec 2033 / - (7.3 / -)	96.296	7.54%	BBB- / Ba1 / BBB	AT1 / 5y + 2.853%
BNP 7.375% Perpetual Corp (USD)	10 Sept 2034 / - (8.0 / -)	100.702	7.26%	BBB- / Ba1 / BBB	AT1 / 5y + 3.533%
BNP 7.200% Perpetual Corp (USD)	17 Apr 2036 / - (9.6 / -)	97.332	7.60%	BBB- / Ba1 / BBB	AT1 / 5y + 2.942%
Source: Bloomberg, Bondsupermart, iFAST compilations. Data as of 11 Sep 2026.

AUD bonds

We provide a short AUD bond comparison in Table 8 below.

• BNP’s Tier 2s are yielding 6+% for short-medium duration profiles. We, however, find these fairly priced compared to similarly rated peers, with possibly more relative value found in ACAFP 4.200% 29May2034 Corp (AUD) and SANTAN 5.800% 06Mar2035 Corp (AUD) instead.
• BNP’s perpetuals are yielding close to 7%. While there are not many AT1 perpetuals within the AUD space, we similarly find these perpetuals fairly priced relative to peers.

Table 8: AUD bond comparison (BNP bonds bolded)

Bond Name	Reset / Maturity Date (Years to Reset / Maturity)	Ask Price	Yield to Worst (%)	Credit Rating (S&P / Moody's / Fitch)	Seniority / Reset Rate
BNP 5.830% 23Aug2034 Corp (AUD)	23 Aug 2029 / 23 Aug 2034 (2.9 / 7.9)	98.480	6.40%	BBB+ / Baa2 / A-	Tier 2 Subordinated / 5y + 2.150%
BNP 6.198% 03Dec2036 Corp (AUD)	03 Dec 2031 / 03 Dec 2036 (5.2 / 10.2)	97.963	6.66%	BBB+ / Baa2 / A-	Tier 2 Subordinated / 5y + 2.000%
HSBC 6.211% 21Mar2034 Corp (AUD)	21 Mar 2029 / 21 Mar 2034 (2.5 / 7.5)	99.855	6.27%	BBB+ / Baa1 / -	Tier 2 Subordinated / 5y + 2.300%
ACAFP 4.200% 29May2034 Corp (AUD)	29 May 2029 / 29 May 2034 (2.7 / 7.7)	94.135	6.53%	BBB+ / Baa1 / A-	Tier 2 Subordinated / 5y + 2.383%
SANTAN 5.800% 06Mar2035 Corp (AUD)	06 Mar 2030 / 06 Mar 2035 (3.5 / 8.5)	97.859	6.50%	BBB+ / Baa2 / BBB+	Tier 2 Subordinated / 5y + 1.920%
HSBC 5.722% 11Mar2035 Corp (AUD)	11 Mar 2030 / 11 Mar 2035 (3.5 / 8.5)	97.905	6.40%	BBB+ / Baa1 / -	Tier 2 Subordinated / 5y + 1.870%
BPCEGP 6.5618% 12Jun2040 Corp (AUD)	12 Jun 2035 / 12 Jun 2040 (8.7 / 13.8)	96.365	7.13%	BBB / Baa2 / BBB+	Tier 2 Subordinated / 5y + 2.500%
BNP 7.000% Perpetual Corp (AUD)	02 Jun 2031 / - (4.7 / -)	99.591	7.10%	BBB- / - / BBB	AT1 / 5y + 3.036%
UBS 6.375% Perpetual Corp (AUD)	29 Mar 2031 / - (4.5 / -)	96.728	7.23%	- / Baa3 / BBB	AT1 / 5y + 2.788%
BACR 8.000% Perpetual Corp (AUD)	15 Dec 2032 / - (6.3 / -)	101.339	7.78%	BB+ / Ba1 / BBB-	AT1 / 5y + 3.263%
UBS 7.125% Perpetual Corp (AUD)	13 Feb 2033 / - (6.4 / -)	98.334	7.50%	BBB- / Baa3 / BBB	AT1 / 5y + 2.595%
Source: Bloomberg, Bondsupermart, iFAST compilations. Data as of 11 Sep 2026.

EUR bonds

Finally, we have a single BNP bond denominated in EUR on our platform. These are senior non-preferred bonds, trading at fairly thin spreads of 69 bps. As with its seniors in other currencies, we find these best suited for conservative investors who wish to stay higher up in BNP’s capital stack.

Table 9: EUR bond comparison

Bond Name	Reset / Maturity Date (Years to Reset / Maturity)	Ask Price	Yield to Worst (%)	Credit Rating (S&P / Moody's / Fitch)	Seniority
BNP 3.625% 01Sep2029 Corp (EUR)	- / 01 Sept 2029 (- / 3.0)	99.02	3.98%	A- / Baa1 / A+	Senior Non-Preferred
Source: Bloomberg, Bondsupermart, iFAST compilations. Data as of 11 Sep 2026.

Declaration: For specific disclosure, at the time of publication of this report, IFPL (via its connected and associated entities) holds positions in BNP 4.750% 15Feb2034 Corp (SGD), UOBSP 4.250% Perpetual Corp (SGD), UOBSP 2.550% Perpetual Corp (SGD), HSBC 5.250% Perpetual Corp (SGD), BNP 5.830% 23Aug2034 Corp (AUD), HSBC 6.211% 21Mar2034 Corp (AUD), and HSBC 5.722% 11Mar2035 Corp (AUD). The analyst who produced this report holds NIL positions in the abovementioned securities. This research report was prepared with the assistance of artificial intelligence (AI) tools. iFAST Financial Pte Ltd does not rely exclusively on AI for content generation; the content of this report – including all investment theses, ratings, price targets and conclusions – has been independently reviewed and verified by the research analyst(s) to ensure accuracy and professional integrity.