BNP PARIBAS SA — EXECUTIVE MEMO
"Navigating Banking Transformation: AI, Interest Rates, and Strategic Focus"
To: Executive Committee From: Chief Executive Officer Date: June 2030
SITUATION
BNP has successfully leveraged AI for trading, wealth management, and risk assessment. Revenue up 18% since 2025. Cost efficiency improved through automation. ROE approaching 10.2%.
But interest rate environment remains challenging. NIM (net interest margin) stabilizing rather than improving. Growth is moderate (3-4% annually).
CURRENT STATE
Revenue: €56.8B (up 18% since 2025) Trading: €7.2B (up 60% since 2025) Wealth Management: €4.8B (up 50% since 2025) Cost efficiency: 55.8% (vs. 60.2% in 2025) ROE: 10.2%
KEY DECISIONS
1. AI Trading Strategy - Expand algorithmic trading (15-20% annual growth) - Invest €500M-1B in AI trading infrastructure - Hire 200+ quant traders and ML engineers - Target: trading revenue €10B+ by 2035
2. Wealth Management Focus - Expand robo-advisor platform - AI-driven portfolio recommendations - Personalization at scale - Target: wealth management revenue €7-8B by 2035
3. Interest Rate Positioning - Accept structural NIM compression - Focus on fee-based revenue (trading, wealth management, advisory) - Reduce reliance on NIM - De-emphasize deposit-based business growth
4. Regulatory Compliance - Invest in AI-driven compliance - Digital asset capabilities development - Risk management leadership
BOARD APPROVAL REQUIRED
- AI trading expansion strategy (€500M-1B capex)
- Wealth management growth targets
- NIM-to-fee revenue transition strategy
- AI trading and compliance talent hiring plan (500+)
Confidential board memo