2020 Universal registration document and annual financial report - BNP PARIBAS284
5 risks and CaPital adequaCy Pillar 3
5
Annual risk survey
RISK-WEIGHTED ASSETS BY RISK TYPE AND BY BUSINESS LINE
➤ FIGURE 1: RISK-WEIGHTED ASSETS BY RISK TYPE(*)
76% (2019: 78%) Credit risk
6% (2019: 4%) Counterparty credit risk
2% (2019: 2%) Securisation in the banking book
4% (2019: 3%) Market risk
10% (2019: 10%) Operational risk
2% (2019: 2%) Amounts below the
thresholds for deduction (subject to 250% risk weight)
(*) Breakdown at 31 December 2020.
Most of the Group s exposures are subject to credit risk. Market risk is limited to 4% of the Group s risk-weighted assets as at 31 December 2020.
➤ FIGURE 2: RISK-WEIGHTED ASSETS BY BUSINESS LINE(*)
17% (2019: 17%) Corporate Banking
7% (2019: 7%) Insurance and Wealth & Asset Management
5% (2019: 5%) 14% (2019: 14%)
Corporate Center
14% (2019: 11%) Global Markets & Securities Services
BDDF
7% (2019: 7%) BNL bc
7% (2019: 8%) BDDB
6% (2019: 6%) Other Domestic
Markets activities(**)
10% (2019: 11%) Personal Finance
6% (2019: 7%) BancWest
7% (2019: 7%) Europe-Mediterranean
Retail Banking & Services: 64% (2019: 67%)
(*) Breakdown at 31 December 2020. (**) Including Luxembourg.
As at 31 December 2020, the Group s risks are well spread and no single business makes up more than 17% of the Group s risk-weighted assets. Retail Banking & Services account for 64% of risk-weighted assets.
OTHER KEY FIGURES
➤ FIGURE 3: CREDIT RISK EXPOSURE BY GEOGRAPHIC REGION(*)
34% (2019: 30%) France
5% (2019: 6%) Asia Paci c
19% (2019: 21%) Other European Countries
15% (2019: 13%) Belgium & Luxembourg
10% (2019: 10%) Italy
5% (2019: 6%) Rest of the world
12% (2019: 14%) North America
(*) Breakdown at 31 December 2020.
As at 31 December 2020, the Group s credit risk exposure was mainly concentrated in Europe (78%) and North America (12%). See the section Credit risk diversification in section 5.4 Credit risk for more details about the diversification of the Group s exposures.
➤ FIGURE 4: CREDIT RISK EXPOSURE BY ASSET CLASS(*)
26% (2019: 20%) Central governments
and central banks
25% (2019: 29%)
4% (2019: 5%) Institutions
41% (2019: 44%) Corporates
Retail
1% (2019: 1%) Equity
2% (2019: 2%) Other Items
(*) Breakdown at 31 December 2020.
Credit exposure to sovereigns, financial institutions, corporates and specialised financing of Investment Grade counterparties represented 80% of IRBA credit risk exposure as at 31 December 2020, versus 79% at 31 December 2019.
