2020 Universal registration document and annual financial report - BNP PARIBAS148

3 2020 review of oPerations

3

Financial structure

3.7 Financial structure

The Group has a very solid balance sheet.

The Common Equity Tier 1 ratio stood at 12.8%(1) as at 31 December 2020, up by 70 basis points compared to 31 December 2019, due to:

■ the placing into reserves of 2020 net income after taking into account a 50% dividend pay-out ratio (+50 basis points);

■ the organic increase of risk-weighted assets at constant exchange rates (-50 basis points);

■ the impact of placing the 2019 dividend into reserves (+60 basis points);

■ the impact of other effects (of which prudential treatment of software) (+10 basis points).

The CET1 ratio(1) is significantly higher than the European Central Bank s notified requests (9.22%(2) as at 31 December 2020) and above the 2020 plan objective (12.0%).

The leverage ratio(3) stood at 4.9% taking into account the temporary exemptions related to deposits with Eurosystem central banks (4.4% excluding this effect).

Immediately available liquidity reserves totalled 432 billion euros, equivalent to more than one year of room to manoeuvre in terms of wholesale funding.

(1) CRD 4; including IFRS 9 transitional provisions.

(2) After taking into account the removals of countercyclical capital buffers and in accordance with Article 104a of CRD5; excluding P2G.

(3) Calculated in accordance with Regulation (EU) No. 2020/873, Article 500b.