2020 Universal registration document and annual financial report - BNP PARIBAS 149

32020 review of oPerations

3

Alternative Performance Measures (APM) Article 223-1 of the AMF s General regulation

3.8 Alternative Performance Measures (APM) Article 223-1 of the AMF s General regulation

Alternative Performance Measures Definition Reason for use

Operating division profit and loss account aggregates (revenues, operating expenses, gross operating income, operating income, pre-tax income)

Sum of Domestic Markets profit and loss account aggregates (with Domestic Markets profit and loss account aggregates, including 2/3 of Private Banking in France, Italy, Belgium and Luxembourg), IFS and CIB BNP Paribas Group profit and loss account aggregates = operating division profit and loss account aggregates + Corporate centre profit and loss account aggregates Reconciliation with Group profit and loss account aggregates is provided in the table Core business results

Representative measure of the BNP Paribas Group s operating performance

Profit and loss account aggregates, excluding PEL/CEL effect (revenues, gross operating income, operating income, pre-tax income)

Profit and loss account aggregate, excluding PEL/CEL effect Reconciliation with Group profit and loss account aggregates is provided in the table hereafter

Representative measure of the aggregates of the period excluding changes in the provisions that account for the risk generated by PEL and CEL accounts during their lifetime

Profit and loss account aggregates of Retail Banking activity with 100% of Private Banking

Profit and loss account aggregate of a Retail Banking activity including the whole profit and loss account of Private Banking Reconciliation with Group profit and loss account aggregates is provided in the table hereafter

Representative measure of the performance of Retail Banking activity including the total performance of Private Banking before sharing the profit & loss account with the Wealth Management business, Private Banking being under a joint responsibility of Retail Banking (2/3) and Wealth Management business (1/3)

Change in operating expenses excluding the impact of IFRC 21

Change in operating expenses excluding taxes and contributions subject to IFRIC 21

Measurement representative of the change in operating expenses excluding taxes and contributions subject to IFRIC 21 almost fully recognised over the first half of the year, in order to avoid any confusion compared to other periods

Cost/income ratio Costs to income ratio Measure of operational efficiency in the banking sector

Cost of risk/Customer loans at the beginning of the period (in basis points)

Cost of risk (in m) divided by customer loans at the beginning of the period Details of the calculation are provided in the tables hereafter

Measure of the risk level by business in percentage of the volume of outstanding loans

Doubtful loans coverage ratio

Relationship between stage 3 provisions and impaired outstandings (stage 3), balance sheet and off-balance sheet, netted for collateral received, for customer and credit institutions, including liabilities at amortised cost and debt securities at fair value through equity (excluding insurance business)

Measure of provisioning for doubtful loans

Net income Group share excluding exceptional items

Net income attributable to equity holders excluding exceptional items Details of exceptional items are provided in the tables hereafter

Measure of BNP Paribas Group s net income excluding non-recurring items of a significant amount or items that do not reflect the underlying operating performance, notably transformation and restructuring costs.

Return on Equity (ROE) Details of the ROE calculation are provided in the tables hereafter

Measure of the BNP Paribas Group s return on equity

Return on Tangible Equity (ROTE)

Details of the ROTE calculation are provided in the tables hereafter.

Measure of the BNP Paribas Group s return on tangible equity