PARIS: BNP Paribas, France’s biggest bank, has cut its forecast for the return on invested capital from its 5.1 billion-euro acquisition of AXA Investment Managers, it said in a statement on Monday.
The French lender said it expected over 14% in the third year, down from a previously projected 18%.
The revision follows updated guidance from the European Central Bank on capital treatment, which would result in a 35-basis-point hit to BNP’s CET1 ratio - a measure of financial strength - compared to the 25 basis points initially expected.
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The transaction is due to close in July.
The bank said its share buyback and dividend plans remain unchanged, with final details on regulatory treatment to be disclosed at closing.