2020 Universal registration document and annual financial report - BNP PARIBAS 135

32020 review of oPerations

3

Core Business results

Insurance s revenues, at 2,725 million euros, were down by 11.2% compared to 2019, due to the impact of the health crisis, and in particular the increase in claims(1) and the reduction in volumes, despite a good recovery in activity late in the year. Operating expenses, at 1,463 million euros, decreased by 2.5%, reflecting good cost containment. Pre-tax income was down by 19.5% compared to 2019, at 1,382 million euros. It reflected the impact on associates of the increase in claims.

In Wealth and Asset Management(2), Wealth Management achieved strong drive, with very good net asset inflows, particularly in the domestic markets and in Asia. Its global expertise was recognised by Private Banker International for the ninth consecutive year as the Outstanding Global Private Bank Europe . Activity in Asset Management continued to be very sustained, with total net asset inflows of about 40 billion euros and strong momentum in net inflows into thematic and SRI funds(3) (11 billion euros). The business continued to strengthen its strong leadership in SRI, particularly in France, with 11 new fund certifications and five renewals.

Lastly, Real Estate Services completed fewer transactions in Advisory and suffered delays in works completion in Property Development due to public health measures.

Wealth and Asset Management(2) revenues (2,982 million euros) were down by 10.2% compared to 2019. The impact on net interest income of the low-interest-rate environment was partly offset by the increase in financial fees at Wealth Management; the mid-year fall in the markets drag down Asset Management fees despite strong asset inflows and the late year recovery in market prices. Real Estate Services revenues were strongly impacted by public health measures. Operating expenses came to 2,510 million euros. They were down by 6.4%, due to the sharp decrease in Real Estate Services costs, but also due to the transformation plan measures, particularly in Asset Management. Wealth and Asset Management s pre-tax income, after receiving one-third of the net income of Private Banking in Domestic Markets in Turkey, Poland and the United States, thus came to 583 million euros, down 16.1% compared to 2019.

(1) Related in particular to claims in creditor protection partly offset by lower claims in property & casualty insurance.

(2) Asset Management, Wealth Management and Real Estate Services.

(3) Thematic and SRI funds: in certified medium- and long-term funds, particularly in socially responsible investment.

CORPORATE AND INSTITUTIONAL BANKING (CIB)

In millions of euros 2020 2019 2020/2019

Revenues 13,763 12,080 +13.9%

Operating Expenses and Dep. (8,920) (8,663) +3.0%

Gross Operating Income 4,843 3,417 +41.7%

Cost of Risk (1,424) (218) n.s.

Operating Income 3,419 3,200 +6.9%

Share of Earnings of Equity-Method Entities 11 16 -31.4%

Other Non Operating Items 24 (9) n.s.

Pre-Tax Income 3,454 3,207 +7.7%

Cost/Income 64.8% 71.7% -6.9 pt

Allocated Equity ( bn) 24.5 21.7 +12.5%