1232019 Universal registration document and annual financial report - BNP PARIBAS

32019 review of oPerations

3

Core Business results

At EUR 2,699 million, Europe-Mediterranean s(1) revenues rose by 6.8%(2) compared to 2018, with growth in all regions, higher volumes and margins, and a good level of fees.

Operating expenses(1), at EUR 1,799 million, rose by 1.0%(2) compared to 2018, reflecting the implementation of cost synergies in Poland in connection with the integration of Raiffeisen Bank Polska(3) (EUR 39 million realised in 2019, closure of 188 branches) and the effects of the transformation plan in all regions. The evolution of the operating expenses generated a largely positive jaws effect of 5.9 points.

The cost of risk(1) totalled EUR 399 million (+17.9%(2) compared to 2018 due to the rise in Turkey). At 98 basis points of outstanding customer loans, it remained at a moderate level.

After allocating one-third of Turkish Private Banking s net income to the Wealth Management business, Europe-Mediterranean thus generated EUR 728 million in pre-tax income, strongly up 23.1% at constant scope and exchange rates, given the high level of non-operating items in 2018 and up 6.5% at historical scope and exchange rates, due in particular to the strong depreciation of the Turkish lira between 2018 and 2019.

BANCWEST

In millions of euros 2019 2018 2019/2018 Revenues 2,375 2,289 +3.8% Operating Expenses and Dep. (1,712) (1,682) +1.8% Gross Operating Income 663 607 +9.2% Cost of Risk (148) (70) n.s Operating Income 515 537 -4.2% Other Non Operating Items (3) 2 n.s Pre-Tax Income 512 539 -5.1% Income Attributable to Wealth and Asset Management (28) (28) +2.0% Pre-Tax Income of Other Domestic Markets 484 512 -5.5% Cost/Income 72.1% 73.5% -1.4pt Allocated Equity ( bn) 5.4 4.9 +10.4%

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

For the whole of 2019, BancWest maintained its business drive but operated in a less favourable interest rate environment. Loans grew by 1.2%(2) compared to 2018, with growth in loans to individuals and corporate customers. Deposits were up +3.9%(2) with good growth in customer deposits (+5.4%)(4).

Private Banking s assets under management (15.7 billion dollars as at 31 December 2019) were up 14.3% compared to 31 December 2018. Cooperation with CIB is expanding, with 57 deals made jointly in 2019.

At EUR 2,375 million, revenues(5) were down 1.8%(2) compared to 2018. The decrease in the interest rate margin in an environment of downward interest rates was only partially offset by an increase in business activity and fees (in particular cards and cash management).

Operating expenses(5) were down 3.6%(2), to EUR 1,712 million, due to the reduction in the headcount (-7.2% compared to 31 December 2018), related in particular to the mutualisation of some functions with CIB and the transfer of support functions to a lower cost area (Arizona).

Gross operating income(5), at EUR 633 million, was up 3.0%(2) compared to 2018.

The cost of risk rose by EUR 78 million compared to a low base in 2018. At 27 basis points of outstanding customer loans, it remained low.

Thus, after allocating one-third of U.S. Private Banking s net income to the Wealth Management business, BancWest posted EUR 484 million in pre-tax income, down 10.0% compared to 2018 at constant scope and exchange rates but down only 5.5% at historical scope and exchange rates given a positive foreign exchange effect.

(1) Including 100% of Private Banking in Turkey.

(2) At constant scope and exchange rates.

(3) Acquisition on 31 October 2018 of the core banking activities of Raiffeisen Bank Polska (excluding mortgage loans in foreign currencies and a limited number of other assets).

(4) Deposits excluding treasury activities.

(5) Including 100% of Private Banking in the United States.