2020 Universal registration document and annual financial report - BNP PARIBAS138
3 2020 review of oPerations
3
Core Business results
CORPORATE CENTRE
In millions of euros 2020 2019
Revenues (358) 71
Operating Expenses and Dep. (890) (1,728)
Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs (389) (1,217)
Gross Operating Income (1,249) (1,657)
Cost of Risk (72) (58)
Operating Income (1,321) (1,715)
Share of Earnings of Equity-Method Entities 54 81
Other Non Operating Items 939 786
Pre-Tax Income (327) (848)
For the whole of 2020, Corporate Centre revenues amounted to -358 million euros compared to 71 million euros in 2019, with a decrease in Principal Investments valuations arising from the crisis, a -104 million euro accounting impact of a swap set up for the transfer of an activity, the impact of a negative non-recurring item in the third quarter 2020 and the -15 million euro revaluation of proprietary credit risk included in derivatives (DVA).
Corporate Centre operating expenses were down strongly at 890 million euros compared to 1,728 million euros in 2019. They included the exceptional impact of donations and staff safety measures related to the health crisis (132 million euros), restructuring costs(1) and adaptation costs(2) (211 million euros compared to 473 million euros in 2019) and IT reinforcement costs (178 million euros). In accordance with the plan, no transformation costs were recognised in 2020 (they came to 744 million euros in 2019).
The cost of risk was 72 million euros, compared to 58 million euros in 2019.
Other non-operating items came to +939 million euros in 2020 compared to +786 million euros in 2019. They included the exceptional impact of a +699 million euro capital gain on the sale of buildings, a +371 million euro capital gain related to the strategic agreement with Allfunds, and an impairment of an investment accounted for under equity method (-130 million euros). In 2019, they had included the exceptional impact of the capital gain realised from the sale of 16.8% of SBI Life in India, followed by the deconsolidation of the residual stake(3) (+1,450 million euros), the capital gain realised from the sale of a building for +101 million euros, and goodwill impairments (-818 million euros).
Corporate Centre pre-tax income thus came to -327 million euros, compared to -848 million euros in 2019.
(1) Related in particular to the discontinuation or restructuring of certain businesses (amongst others at CIB).
(2) Related in particular to Wealth Management, BancWest and CIB.
(3) 5.2% residual stake in SBI Life.
