Kiri Vijayarajah's questions to BNPQY leadership • Q2 2024
Question
Inquired about the bank's concern over U.S. commercial real estate (CRE) deterioration, and asked how the 30 bps of capital related to the delayed FRTB rule would be used if the rule is never implemented—reinvested or returned to shareholders.
Answer
The company stated it has minimal concern over U.S. CRE as it sold its main exposure. Regarding the potential 30 bps of freed-up capital from FRTB, the strong preference is to reinvest it organically for high returns, followed by bolt-on acquisitions, with returning it to shareholders being the last resort.