1212019 Universal registration document and annual financial report - BNP PARIBAS

32019 review of oPerations

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Core Business results

INTERNATIONAL FINANCIAL SERVICES

In millions of euros 2019 2018 2019/2018

Revenues 17,183 16,076 +6.9%

Operating Expenses and Dep. (10,507) (10,054) +4.5%

Gross Operating Income 6,676 6,022 +10.9%

Cost of Risk (1,911) (1,566) +22.0%

Operating Income 4,765 4,456 +6.9%

Share of Earnings of Equity-Method Entities 488 489 -0.2%

Other Non Operating Items (27) 58 n.s.

Pre-Tax Income 5,226 5,003 +4.5%

Cost/Income 61.1% 62.5% -1.4pt

Allocated Equity ( bn) 29.2 27.3 +6.8%

For the whole of 2019, International Financial Services continued its strong growth and deployed sustained business activity: outstanding loans were up 8.1% compared to 2018 (+5.1% at constant scope and exchange rates) with good growth at Personal Finance and Europe-Mediterranean. The division reported +EUR 20.2 billion in net asset inflows, with particularly good asset inflows at Wealth Management as well as in Insurance notably in unit-linked policies. Assets under management of the savings and insurance businesses totalled EUR 1,123 billion (+9.3% compared to 31 December 2018).

The IFS division strengthens the leading positions of its businesses, at the core of the integrated model (Personal Finance: the number 1 consumer credit specialist in Europe in 33 countries; the Europe- Mediterranean and BancWest networks with more than 15 million customers; BNP Paribas Cardif: global leader in creditor protection insurance, present in 34 countries; the number 1 private bank in the eurozone; and BNP Paribas Asset Management: a global asset manager, leader in sustainable finance). It is developing new growth-generating partnerships at Personal Finance (Opel in Poland, Volvo in Italy, BYmyCAR in France, Ford in several European countries, Carrefour in Italy, Leroy Merlin in Brazil) and in Insurance (strategic alliance with ScotiaBank, and with Sainsbury s Bank and Argos).

The IFS division optimises customer service through digitalisation. In its international retail networks, it already has EUR 3.9 million digital customers. It is successfully developing new digital solutions to support its clients: 85% of the transactions at Personal Finance are performed in self-care, the digitalised creditor protection insurance journey is a success in France for Cardif (90% of immediate responses for personal insurance and 80% of immediate responses for collective insurance), 48% of clients actively use digital channels at Wealth Management(1). The division is

incorporating open innovation and new technologies in co-creation with start-ups, relying in particular on Station F, one of the largest start- up accelerators worldwide. BNP Paribas Plug and Play, accelerated 47 projects at Station F with 36 start-ups and an industrialisation rate of 35% among the best in the Fintech ecosystem. It also has doubled the capacity of Bivwak, a European set up for project acceleration created by BNP Paribas in 2017 based on agile development of innovative solutions for our clients and skill improvement of our employees. Finally, it is constantly developing robotics (more than 760,000 transactions a month processed by robots). 150 projects using artificial intelligence are already operational or in development.

The division s revenues, at EUR 17,183 million, were up 6.9% compared to 2018. At constant scope and exchange rates, they rose by 4.7% in connection with the good drive at Personal Finance and the very good performance of insurance and the Europe-Mediterranean banking networks.

Operating expenses, at EUR 10,507 million, were up 4.5%. At constant scope and exchange rates, they rose by only 1.5%, the rise being contained by the contribution of cost saving measures and operating efficiency gains. The jaws effect was positive at 2.4 points.

Gross operating income thus came in at EUR 6,676 million, up 10.9% compared to 2018 (+10.4% at constant scope and exchange rates).

The cost of risk, at EUR 1,911 million, was up EUR 344 million compared to 2018. It increased by EUR 309 million at constant scope and exchange rates.

International Financial Services pre-tax income thus came in at EUR 5,226 million, up 4.5% compared to 2018 (+6.7% at constant scope and exchange rates).

(1) Wealth Management clients with at least one connection per month.