116 2019 Universal registration document and annual financial report - BNP PARIBAS
3 2019 review of oPerations
3
Core Business results
3.2 Core Business results
RETAIL BANKING & SERVICES
In millions of euros 2019 2018 2019/2018
Revenues 32,433 31,188 +4.0%
Operating Expenses and Dep. (20,946) (20,455) +2.4%
Gross Operating Income 11,488 10,732 +7.0%
Cost of Risk (2,927) (2,611) +12.1%
Operating Income 8,561 8,122 +5.4%
Share of Earnings of Equity-Method Entities 489 486 +0.7%
Other Non Operating Items (26) 58 n.s.
Pre-Tax Income 9,024 8,665 +4.1%
Cost/Income 64.6% 65.6%, -1.0pt
Allocated Equity ( bn) 54.9 52.5 +4.7%
Including 100% of Private Banking in France (excluding PEL/CEL effects), in Italy, Belgium, Luxembourg, at BancWest and TEB for the Revenues to Pre-tax income line items.
DOMESTIC MARKETS
In millions of euros 2019 2018 2019/2018
Revenues 15,814 15,683 +0.8%
Operating Expenses and Dep. (10,741) (10,707) +0.3%
Gross Operating Income 5,073 4,977 +1.9%
Cost of Risk (1,021) (1,046) -2.4%
Operating Income 4,052 3,930 +3.1%
Share of Earnings of Equity-Method Entities 1 (3) n.s.
Other Non Operating Items 1 0 n.s.
Pre-Tax Income 4,054 3,927 +3.2%
Income Attributable to Wealth and Asset Management (256) (264) -3.0%
Pre-Tax Income of Domestic Markets 3,798 3,663 +3.7%
Cost/Income 67.9% 68.3% -0.4pt
Allocated Equity ( bn) 25.7 25.2 +2.4%
Including 100% of Private Banking in France (excluding PEL/CEL effects), Italy, Belgium and Luxembourg for the Revenues to Pre-tax income line items.
For the whole of 2019, Domestic Markets business activity was up. Outstanding loans rose by 4.1% with good growth in loans in Retail Banking particularly in France and Belgium and in the specialised businesses (Arval, Leasing Solutions). Deposits rose by 7.2% compared to 2018. Private Banking reported a good level of net asset inflows of +EUR 5.6 billion.
The division confirmed the success of its digital offerings and its leading position among neobanks in Europe. It has 9.7 million digital customers and is recognised, for example in France, for its leadership in terms of functionalities (D-Rating agency ranked BNP Paribas number 1 among banking networks in France). The mobile usages of individual customers accelerated, with more than 97 million connections to apps, an increase of 23.4% compared to 2018 and with 56.5% of active clients being active
