2020 Universal registration document and annual financial report - BNP PARIBAS130

3 2020 review of oPerations

3

Core Business results

INTERNATIONAL FINANCIAL SERVICES

In millions of euros 2020 2019 2020/2019

Revenues 15,938 17,183 -7.2%

Operating Expenses and Dep. (10,117) (10,507) -3.7%

Gross Operating Income 5,821 6,676 -12.8%

Cost of Risk (2,775) (1,911) +45.2%

Operating Income 3,046 4,765 -36.1%

Share of Earnings of Equity-Method Entities 353 488 -27.7%

Other Non Operating Items 22 (27) n.s.

Pre-Tax Income 3,421 5,226 -34.5%

Cost/Income 63.5% 61.1% +2.4 pt

Allocated Equity ( bn) 29.2 29.2 -0.1%

For the whole of 2020, the International Financial Services division maintained a good business drive despite the health context, while achieving operational efficiency gains. Loans outstanding were up by 1.5%(1), with strong business momentum in international retail networks (a 2.2%(1) increase in outstandings) and a return to growth in Personal Finance outstandings from the low point reached in the third quarter 2020. The division achieved very strong net asset inflows of 54.9 billion euros compared to 31 December 2019, including 40 billion euros at Asset Management (3.4% of assets under management) in a contrasted environment marked by a drop in market prices early in the year followed by a good market performance late in the year. Real Estate Services, meanwhile, heavily impacted by the health crisis, was recovering gradually.

The division continued to expand its digitalisation with 4.6 million digital customers in the international retail networks (+13% compared to 31 December 2019), more than 5 million loans signed electronically, and more than 128 million monthly electronic account statements at Personal Finance.

The division s revenues, at 15,938 million euros, were down by 7.2%(2) compared to 2019, as BancWest s good performance only partially offset the revenue decrease in other businesses due to the effects of the health crisis.

Operating expenses, at 10,117 million euros, were down by 3.7%(3), thanks to ongoing cost savings reinforced with the health crisis.

Gross operating income thus came to 5,821 million euros, down by 12.8% compared to 2019.

The cost of risk, at 2,775 million euros, was up by 864 million euros compared to 2019, due in particular to the provisioning of performing loans (stages 1 and 2).

International Financial Services pre-tax income thus came to 3,421 million euros, down by 34.5% at historical scope and exchange rates and down by 32.6% at constant scope and exchange rates compared to 2019.

(1) At constant scope and exchange rates.

(2) -4.6% at constant scope and exchange rates.

(3) -1.6% at constant scope and exchange rates.