2020 Universal registration document and annual financial report - BNP PARIBAS 157

32020 review of oPerations

3

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

2020 2019

BancWest(1)

Loan outstandings as of the beg. of the quarter ( bn) 55.8 55.1

Cost of risk ( m) 322 148

Cost of risk (in annualised bp) 58 27

Europe-Mediterranean(1)

Loan outstandings as of the beg. of the quarter ( bn) 39.5 40.7

Cost of risk ( m) 437 399

Cost of risk (in annualised bp) 111 98

Personal Finance

Loan outstandings as of the beg. of the quarter ( bn) 94.4 93.5

Cost of risk ( m) 1,997 1,354

Cost of risk (in annualised bp) 212 145

CIB Corporate Banking

Loan outstandings as of the beg. of the quarter ( bn) 164.4 145.6

Cost of risk ( m) 1,308 223

Cost of risk (in annualised bp) 80 15

Group(2)

Loan outstandings as of the beg. of the quarter ( bn) 867.3 827.1

Cost of risk ( m) 5,717 3,203

Cost of risk (in annualised bp) 66 39

(1) With Private Banking at 100%. (2) Including cost of risk of market activities, International Financial Services and Corporate Centre.

METHODOLOGY COMPARATIVE ANALYSIS AT CONSTANT SCOPE AND EXCHANGE RATES

The method used to determine the effect of changes in scope of consolidation depends on the type of transaction (acquisition, sale, etc.). The underlying purpose of the calculation is to facilitate period-on-period comparisons.

In case of acquired or created entity, the results of the new entity are eliminated from the constant scope results of current-year periods corresponding to the periods when the entity was not owned in the prior-year.

In case of divested entities, the entity s results are excluded symmetrically for the prior year for quarters when the entity was not owned.

In case of change of consolidation method, the policy is to use the lowest consolidation percentage over the two years (current and prior) for results of quarters adjusted on a like-for-like basis.

Comparative analysis at constant exchange rates are prepared by restating results for the prior-year quarter (reference quarter) at the current quarter exchange rate (analysed quarter). All of these calculations are performed by reference to the entity s reporting currency.

REMINDER Operating expenses: sum of salary and employee benefit expenses, other operating expenses and depreciation, amortisation and impairment of property, plant and equipment. In the whole document, the terms operating expenses or costs can be used indifferently.

Operating divisions: they consist of 3 divisions:

■ Domestic Markets including: French Retail Banking (FRB), BNL banca commerciale (BNL bc), Belgium Retail Banking (BRB), Other Domestic Markets activities including Arval, Leasing Solutions, Personal Investors, Nickel and Luxembourg Retail Banking (LRB);

■ International Financial Services (IFS) including: Europe-Mediterranean, BancWest, Personal Finance, Insurance, Wealth & Asset Management (WAM) that includes Asset Management, Wealth Management and Real Estate Services;

■ Corporate and Institutional Banking (CIB) including: Corporate Banking, Global Markets, Securities Services.