126 2019 Universal registration document and annual financial report - BNP PARIBAS

3 2019 review of oPerations

3

Core Business results

SECURITIES SERVICES

In millions of euros 2019 2018 2019/2018

Revenues 2,198 2,179 +0.9%

Operating Expenses and Dep. (1,833) (1,733) +5.7%

Gross Operating Income 365 446 -18.1%

Cost of Risk 4 8 -44.5%

Operating Income 369 453 -18.5%

Non Operating Items 0 0 n.s.

Pre-Tax Income 370 454 -18.5%

Cost/Income 83.4% 79.5% +3.9pt

Allocated Equity ( bn) 0.9 0.9 +8.6%

CORPORATE BANKING

In millions of euros 2019 2018 2019/2018

Revenues 4,312 3,923 +9.9%

Operating Expenses and Dep. (2,599) (2,493) +4.2%

Gross Operating Income 1,713 1,430 +19.8%

Cost of Risk (223) (32) n.s.

Operating Income 1,490 1,399 +6.5%

Non Operating Items 13 57 -76.8%

Pre-Tax Income 1,503 1,456 +3.2%

Cost/Income 60.3% 63.5% -3.2pt

Allocated Equity ( bn) 12.5 12.2 +2.6%

For the whole of 2019, CIB strengthens its leading positions on targeted corporate and institutional client bases and gained market shares. CIB ranked No. 3 among the CIBs in EMEA (Europe, Middle East and Africa) based on revenues generated in the first nine months of 2019, thus making it the leading European player behind two U.S. institutions.

With the success of its development plans in selected European countries, the division confirms its leading positions on the Corporate segment, with over 260 new large corporate group clients since 2016, in particular in targeted countries (Germany, United Kingdom, Netherlands and Scandinavia) and almost 1,500 new client relationships with subsidiaries of multinational clients in 2019. It continued to develop its franchises in the Asia-Pacific and the Americas regions with reinforced cooperation with BancWest. Major initiatives were also launched in 2019 to intensify business development with institutional clients. The division is thus strengthening its position with fund managers via the firm agreement with Deutsche Bank signed on 13 November 2019 on the transfer of prime brokerage and electronic execution while ensuring service continuity to clients; the transition period started with the first transfers of teams. The division also continued the optimisation of certain activities, with the signing of an agreement to transfer fund distribution activities to Allfunds, one of the leading platforms in this sector worldwide ( Wealthtech ), in exchange for a strategic stake of 22.5%(1).

The division intensified cooperation with all the Group s businesses and capitalised on the close relations enhanced by the integrated model with joint initiatives in transaction banking. It expanded its proposal of CIB solutions to major Domestic Markets and IFS clients with a global and joint approach to all the Group s businesses. More than EUR 2.8 billion in revenues per year were generated by Domestic Markets and IFS from the clients covered by CIB, over EUR 500 million are generated by CIB from the clients covered by Domestic Markets and IFS.

The digitalisation of customer services is increasing with more than 11,500 corporate clients on the Centric platform in 2019, more than EUR 21 million electronic orders processed in 2018 for Global Market clients and over 6,000 institutional clients on the Securities Services Neolink platform. The digitalisation and automation of processes as well as the ramping up of service platforms support the improvement of operating efficiency.

Thus, as announced in early 2019, CIB stepped up its transformation plan, generating EUR 298 million in recurring savings in 2019.

(1) Subject to the approval of the regulatory authorities and the necessary authorisations.