1252019 Universal registration document and annual financial report - BNP PARIBAS

32019 review of oPerations

3

Core Business results

Insurance s revenues, at EUR 3,068 million, rose by 14.5% compared to 2018 driven by a favourable effect of rising markets and good business drive. Operating expenses, at EUR 1,500 million, rose by 6.7% as a result of business development. Despite the scope effect related to the deconsolidation of SBI Life, pre-tax income was up 16.0% compared to 2018, at EUR 1,716 million.

In Wealth and Asset Management, the global expertise of Wealth Management continued to be recognised, being named Best Private Bank in the World (Global Finance) and Best Global European Private Bank (Private Banker International). The Asset Management business continued to evolve and amplified the adaptation of its organisation, the successful roll-out of the Aladdin global operational investment system and the development of new solutions (ESG, quantitative solutions, multi- assets, real assets, etc.).

Wealth and Asset Management s revenues (EUR 3,320 million) were up 1.0% compared to 2018 with a continuous improvement during the year after a difficult first quarter due to the financial market crisis at the end of 2018 and with a very good performance of Real Estate Services at the end of the year. Operating expenses totalled EUR 2,682 million. They rose by 1.7% compared to 2018 thanks to the measures of the transformation plan, in particular in Asset Management (gradually decommissioning 50 applications after the successful roll-out of the Aladdin solution). At EUR 695 million, Wealth and Asset Management s pre-tax income, after receiving one-third of the net income of Private Banking s net income in the domestic markets, in Turkey and in the United States, was thus up 2.0% compared to 2018.

CORPORATE AND INSTITUTIONAL BANKING (CIB)

In millions of euros 2019 2018 2019/2018

Revenues 12,080 10,829 +11.6%

Operating Expenses and Dep. (8,663) (8,163) +6.1%

Gross Operating Income 3,417 2,666 +28.2%

Cost of Risk (218) (43) n.s.

Operating Income 3,200 2,623 +22.0%

Share of Earnings of Equity-Method Entities 16 59 -72.7%

Other Non Operating Items (9) 0 n.s.

Pre-Tax Income 3,207 2,681 +19.6%

Cost/Income 71.7% 75.4% -3.7pt

Allocated Equity ( bn) 21.7 20.8 +4.3%

GLOBAL MARKETS

In millions of euros 2019 2018 2019/2018

Revenues 5,571 4,727 +17.9%

Incl. FICC 3,563 2,719 +31.1%

Incl. Equity & Prime Services 2,007 2,008 -0.0%

Operating Expenses and Dep. (4,231) (3,937) +7.5%

Gross Operating Income 1,339 790 +69.6%

Cost of Risk 2 (19) n.s.

Operating Income 1,341 771 +74.0%

Share of Earnings of Equity-Method Entities 3 3 -20.7%

Other Non Operating Items (9) (2) n.s.

Pre-Tax Income 1,334 772 +72.9%

Cost/Income 76.0% 83.3% -7.3pt

Allocated Equity ( bn) 8.3 7.8 +6.5%