Dan Rohinton BNP Paribas BNP-FP BUY May 02, 2025

One of the strongest banks in France. If you are positive on the outlook for France it would be a good place to go. He has HSBC for this exposure plus two others.

(Top Pick Aug 28/13, Up 19%) High dividend yield. First to go from capital accumulation to capital distribution.

It is restructuring, return of capital and revaluation. It still sells below book value. 3.5% dividend, 4 next year and 5 the year after.

European bank that is well-capitalized and have done a good job of shutting down assets and cleaning up the balance sheet. 60% of their operating profit comes from a very solid retail franchise that he thinks will support earnings. They ultimately should benefit from rising interest rates and increased capital markets activity. A good opportunity to get exposure to Europe which has turned the corner. You are starting to see more economic growth there. Yield of 2.65%.

(A Top Pick Jan 24/14. Down 19.57%.) He was really early to this one. Luckily it wasn’t a big holding in a lot of his global funds. The big issue has been the problems that have been seen in Europe in the 2^nd half of 2014, such as Russia invading the Ukraine, concerns about deflation, etc.

He likes this because of the global growth, and he really likes Europe and European banks right now. Rates are going up, but more importantly velocity of money and loans are finally happening in Europe, both to consumers and businesses. Europe has been a laggard out of the recession, and over the last 18 months have finally got their act together. Trading at 10 PE, has a growing dividend and he really likes France. Dividend yield of 4.1%. (Analysts' price target is €73.25.)

The financial leverage is too high and there is declining production per share. He would not own this. There are better names with a lot less risk.