Universal registration document and annual financial report 2019

120 2019 Universal registration document and annual financial report - BNP PARIBAS

3 2019 review of oPerations

Core Business results

OTHER DOMESTIC MARKETS BUSINESS UNITS (ARVAL, LEASING SOLUTIONS, PERSONAL NICKEL AND LUXEMBOURG RETAIL BANKING)

In millions of euros 2019 2018 2019/2018 Revenues 3,184 2,986 +6.6% Operating Expenses and Dep. (1,859) (1,779) +4.5% Gross Operating Income 1,325 1,207 +9.8% Cost of Risk (146) (123) +19.1% Operating Income 1,178 1,084 +8.7% Share of Earnings of Equity-Method Entities (12) (12) +6.2% Other Non Operating Items 2 (5) n.s. Pre-Tax Income 1,168 1,067 +9.5% Income Attributable to Wealth and Asset Management (3) (3) -17.6% Pre-Tax Income of Other Domestic Markets 1,165 1,064 +9.5% Cost/Income 58.4% 59.6% -1.2pt Allocated Equity ( bn) 4.5 4.4 +3.4%

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

For the whole of 2019, all the specialised businesses of Domestic Markets showed a very good drive. Arval s leading position was confirmed on its perimeter of 27 countries and strengthened by the doubling of the number of white label partnerships with car manufacturers. Arval s financed fleet grew strongly by 8.9%(1) across all segments. Leasing Solutions financing outstandings rose by 6.9%(1) compared to 2018. Personal Investors reported an increase in assets under management (+21.8% compared to 31 December 2018) and Nickel continued its very strong growth with more than 366,000 accounts opened this year (1.5 million accounts opened as at 31 December 2019).

Luxembourg Retail Banking (LRB) s outstanding loans rose by 8.6% compared to 2018, with good growth in mortgages and corporate loans. Deposits were up 11.5%.

The revenues(2) of the five businesses, at EUR 3,184 million, were up 6.6% compared to 2018 in aggregate.

Operating expenses(2) rose by 4.5% compared to 2018, at EUR 1,859 million; up with the effect of business development contained by cost saving measures and operating efficiency gains. The jaws effect was positive by 2.1 points.

The cost of risk(2) totalled EUR 146 million (EUR 123 million in 2018).

Thus, the pre-tax income of these five businesses, after allocating one-third of Luxembourg Private Banking s net income to the Wealth Management business (International Financial Services division), rose significantly by 9.5% compared to 2018, at EUR 1,165 million, reflecting the good drive of the businesses.

(1) At constant scope and exchange rates.

(2) Including 100% of Private Banking Private Banking in Luxembourg.