114 2019 Universal registration document and annual financial report - BNP PARIBAS

3 2019 review of oPerations

3

BNP Paribas consolidated results

3.1 BNP Paribas consolidated results

In millions of euros 2019 2018 2019/2018

Revenues 44,597 42,516 +4.9%

Operating Expenses and Dep. (31,337) (30,583) +2.5%

Gross Operating Income 13,260 11,933 +11.1%

Cost of Risk (3,203) (2,764) +15.9%

Operating income 10,057 9,169 +9.7%

Share of Earnings of Equity-Method Entities 586 628 -6.7%

Other Non Operating Items 751 411 +82.7%

Non Operating Items 1,337 1,039 +28.7%

Pre-Tax Items 11,394 10,208 +11.6%

Corporate Income Tax (2,811) (2,203) +27.6%

Net Income Attributable to Minority Interests (410) (479) -14.4%

Net Income Attributable to Equity Holders 8,173 7,526 +8.6%

Cost/Income ratio 70.3% 71.9% -1.7pt

STRONG GROWTH IN INCOME THANKS TO BUSINESS DRIVE AND TRANSFORMATION

BNP Paribas delivered a very good overall performance this year, confirming the strength of its diversified and integrated model and its ability to create value in changing economic, technological, environmental, regulatory and societal conditions.

At EUR 44,597 million, revenues were up 4.9% compared to 2018(1).

In the operating divisions, revenues rose by 5.9%, with an increase in all the divisions: +0.8% in Domestic Markets(2) where the effect of the persistently low interest rate environment impacting negatively the networks in the eurozone was more than offset by the business growth, in particular in the specialised businesses; +6.9%(3) in International Financial Services in connection with the business drive at Personal Finance and the very good performance of insurance and Europe-Mediterranean; and +11.6% in CIB which posted strong revenue growth with very good performance by Global Markets and Corporate Banking.

The Group s operating expenses, at EUR 31,337 million, were up 2.5% compared to 2018. They included the following exceptional items: the transformation costs of the 2020 plan (EUR 744 million), restructuring

costs(4) (EUR 311 million) and adaptation measures(5) (EUR 162 million for early departure plans) totalling EUR 1,217 million (EUR 1,235 million in 2018).

The operating expenses of the operating divisions rose by 3.5% compared to 2018: they were up slightly by 0.3% for Domestic Markets(6) with a decrease in the networks (-0.5%) and a 4.5% increase in the specialised businesses related to business development, rose by 4.5% for International Financial Services(6) to support growth, and rose by 6.1% at CIB in line with business growth.

Good cost control generated a positive 2.4 point jaws effect. The jaws effect was accompanied by an improvement of the cost income ratio in each of the operating divisions thanks to the implementation, of cost saving measures for a cumulative total of EUR 1.8 billion in 2019 in line with the 2020 plan launched in 2017. The related transformation costs are in line with the objectives announced. There will be no transformation costs in 2020.

(1) +4.6% at constant scope and exchange rates.

(2) Including 100% of Private Banking in the domestic networks (excluding PEL/CEL effects).

(3) +4.7% at constant scope and exchange rates.

(4) Restructuring costs related in particular to the integration of Raiffeisen Bank Polska and the discontinuation or restructuring of certain businesses (in particular BNP Paribas Switzerland).

(5) Adaptation measures related in particular to BNL bc, Asset Management and BancWest.

(6) +1.5% at constant scope and exchange rates.