Net of these share buy-backs, the increase in the Group’s CET1 ratio would be of approximately 110 basis points 2.īNP Paribas intends to redeploy the remaining proceeds (equivalent to approximately 7 billion euros in capital release 2), over time and in a very disciplined way, with the aim of improving long-term value creation through acceleration of organic growth, in particular in Europe, targeted investments in technologies and innovative business models, and bolt-on acquisitions in value-added businesses. As an indication, a share buy-back program of approximately 4 billion euros would fully neutralize the EPS dilution (under current assumptions and based on 17 December 2021 closing share price, that is 56.17 euros) 2. In terms of distribution policy to shareholders, the Group intends to make an extraordinary distribution in the form of share buy backs following the closing of the Transaction, to compensate the expected dilution of the Earning per share (“EPS”).
The Transaction will generate at closing a one-off capital gain (net of taxes) estimated at approximatelyĢ.9 billion euros 2 and a positive impact on BNP Paribas Group’s Common Equity Tier 1 (CET1) ratio of approximately 170 basis points 2. The total consideration represents 1.72 times Bank of the West’s Tangible Book Value 2 and 20.5% ofīNP Paribas market capitalisation 1, while Bank of the West has contributed an average of approximately 5% to the Group pre-tax earnings over the last few years. The total agreed consideration amounts to 16.3 billion US dollars (equivalent to approximately 14.4 billion euros 1), to be paid in cash at closing of the Transaction. The Transaction is expected to formally close during the course of 2022, upon customary condition precedents, including the approval of the relevant antitrust and regulatory authorities. for a total consideration of 16.3 billion US dollars in cash (the "Transaction")
BNP Paribas reached an agreement with BMO for the sale of Bank of the WestīNP Paribas has reached an agreement with BMO Financial Group for the sale of 100% of its retail & commercial banking activities in the United States conducted through its subsidiary Bank of the West, Inc.
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