2020 Universal registration document and annual financial report - BNP PARIBAS132

3 2020 review of oPerations

3

Core Business results

EUROPE-MEDITERRANEAN

In millions of euros 2020 2019 2020/2019 Revenues 2,362 2,699 -12.5% Operating Expenses and Dep. (1,711) (1,799) -4.9% Gross Operating Income 651 900 -27.7% Cost of Risk (437) (399) +9.5% Operating Income 214 502 -57.3% Non Operating Items 187 231 -19.2% Pre-Tax Income 401 733 -45.3% Income Attributable to Wealth and Asset Management (8) (4) +96.6% Pre-Tax Income 392 728 -46.1% Cost/Income 72.4% 66.6% +5.8 pt Allocated Equity ( bn) 5.1 5.3 -3.5%

Including 100% of Private Banking in Turkey and in Poland for the Revenue to Pre-tax income line items.

For the whole of 2020, Europe-Mediterranean achieved sustained business drive in a contrasted environment. Europe-Mediterranean s loans outstanding were up by 3.9%(1) compared to 2019, with a rebound in loan production late in the year from a low point in August to monthly levels higher than in 2019. Deposits were up by 10.9%(1) compared to 2019 and rose in all countries. Meanwhile, more than 90% of moratoria have now expired, and the back-to-payment level was satisfactory and as anticipated.

Europe-Mediterranean continues to promote the use of digital tools, with 3.7 million digital customers as of 31 December 2020 (+15% compared to 2019). As at the end of December 2020, more than 210 processes had been automated (an increase of 89% compared to 31 December 2019) and fully digital account opening is now available in Poland.

Europe-Mediterranean s revenues(2), at 2,362 million euros, were nonetheless down by 4.9%(1), as the impact of lower interest rates, in particular in Poland, and of fee caps enacted in several countries, was only partly offset by the general increase in volumes.

Operating expenses(2), at 1,711 million euros, were up by 1.4%(1) compared to 2019. Wage drift remained at a high level, particularly in Turkey. The implementation of cost synergies in Poland and the effects of cost-savings related to the health crisis contribute to mitigating cost increase.

Gross operating income(2) thus came to 651 million euros, down by 18.0%(1) compared to 2019.

The cost of risk(2) totalled 437 million euros, or 111 basis points, up moderately due in particular to the provisioning of performing loans (stages 1 and 2).

After allocating one-third of Turkish and Polish Private Banking s net income to the Wealth Management business, Europe-Mediterranean generated 392 million euros in pre-tax income, down by 39.3% at constant scope and exchange rates and 46.1% at historical scope and exchange rates, due to a very unfavourable foreign exchange effect (strong depreciation of the Turkish lira).

(1) At constant scope and exchange rates.

(2) Including 100% of Private Banking in Turkey and Poland.