118 2019 Universal registration document and annual financial report - BNP PARIBAS

3 2019 review of oPerations

3

Core Business results

BNL BANCA COMMERCIALE (BNL BC)

In millions of euros 2019 2018 2019/2018

Revenues 2,778 2,792 -0.5%

Operating Expenses and Dep. (1,800) (1,797) +0.1%

Gross Operating Income 978 995 -1.7%

Cost of Risk (490) (592) -17.3%

Operating Income 488 402 +21.3%

Other Non Operating Items (5) (3) +45.0%

Pre-Tax Income 483 399 +21.1%

Income Attributable to Wealth and Asset Management (41) (43) -5.3%

Pre-Tax Income of BNL bc 443 356 +24.3%

Cost/Income 64.8% 64.4% +0.4pt

Allocated Equity ( bn) 5.3 5.5 -2.4%

Including 100% of Italian Private Banking for the Revenues to Pre-tax income line items.

For the whole of 2019, FRB continued its good business drive in the context of economic growth in France. Outstanding loans rose by 5.4% compared to 2018 with an increase particularly in corporate loans. Deposits were up 9.8% and Private Banking s assets under management rose by 9.3%(1) compared to 31 December 2018, with a strong rise in responsible savings (EUR 4.0 billion in outstandings, +48% compared to 31 December 2018) as a result of the launch of the financial advisory tool, myImpact(2).

The business leveraged the very good development of the corporate franchise, with in particular an increase in the number of onboardings of new clients (+27% compared to 2018) and good growth in cash management fees (+6.5% compared to 2018). Moreover, 65% of 123 companies selected as part of the French Tech initiative (French Tech 120) are FRB customers.

Revenues(3) totalled EUR 6,328 million, up 0.3% compared to 2018. Net interest income(3) was up 1.2% due to higher volumes partially offset by

the effect of low interest rates. Fees(3) were down 1.0% due to the decrease in charges on fragile customers at the beginning of 2019.

Operating expenses(3), at EUR 4,602 million, were down 0.2% compared to 2018, with the impact of cost saving measures, the optimisation and streamlining of the network. The jaws effect was positive at 0.4 point.

Gross operating income(3) thus came in at EUR 1,726 million, up 1.5% compared to 2018.

At 17 basis points of outstanding customer loans, the cost of risk(3) was at a low level. It came in at EUR 329 million, up EUR 41 million compared to 2018.

Thus, after allocating one-third of French Private Banking s net income to the Wealth Management business (International Financial Services division), FRB posted EUR 1,261 million in pre-tax income(4), down just 0.2% compared to 2018.

(1) Excluding the internal transfer of a subsidiary.

(2) Financial advisory solution for responsible investments in France.

(3) Including 100% of Private Banking in France (excluding PEL/CEL effects).

(4) Excluding PEL/CEL effects of +EUR 12 million compared to +EUR 20 million in 2018.

(5) -0.1% excluding the impact of the sale of non-performing loans.

(6) Source: Italian Banking Association.

(7) Including 100% of Italian Private Banking.

For the whole of 2019, BNL bc s business operated in a lacklustre economic environment. Outstanding loans were down 1.9%(5); the business continued to grow its market share on the corporate client segment: +0.4 point in 3 years to 5.7%(6). Deposits were up 4.8% compared to 2018. The rise (+8.0% compared to 31 December 2018) in off balance sheet savings outstandings continued, driven by life insurance (+9.9% compared to 2018).

BNL bc is developing new digital services with the launch of Apple Pay in the Hello bank! mobile apps, thereby finalising the roll-out of the agreement signed with Apple within the scope of Domestic Markets.

Revenues(7) were down 0.5% compared to 2018, at EUR 2,778 million. Net interest income(7) was down just 0.1% due to the persistently low interest rate environment and the positioning on clients with a better risk profile. Fees(7) were down 1.1% compared to 2018 due to the unfavourable market context and non-recurring items at the beginning of the year.

Operating expenses(7), at EUR 1,800 million, were up just 0.1% compared to 2018, reflecting the effect of cost reduction and adaptation measures.