128 2019 Universal registration document and annual financial report - BNP PARIBAS

3 2019 review of oPerations

3

Core Business results

CORPORATE CENTRE

In millions of euros 2019 2018

Revenues 71 479

Operating Expenses and Dep. (1,728) (1,965)

Including Restructuring, Transformation and Adaptation Costs (1,217) (1,235)

Gross Operating Income (1,657) (1,486)

Cost of Risk (58) (110)

Operating Income (1,715) (1,596)

Share of Earnings of Equity-Method Entities 81 84

Other Non Operating Items 786 353

Pre-Tax Income (848) (1,159)

For the whole of 2019, Corporate Centre revenues amounted to EUR 71 million compared to EUR 479 million in 2018, which included First Hawaiian Bank s contribution of EUR 359 million(1).

Operating expenses totalled EUR 1,728 million compared to EUR 1,965 million in 2018. They included the exceptional impact of EUR 744 million in transformation costs (EUR 1,106 million in 2018), EUR 311 million in restructuring costs(2) (EUR 129 million in 2018) and EUR 162 million in additional businesses adaptation measures (departure plans)(3) (0 in 2018). In 2018, they included EUR 189 million in operating expenses of First Hawaiian Bank.

The cost of risk was EUR 58 million, down EUR 51 million compared to 2018 when it included EUR 13 million in the cost of risk of First Hawaiian Bank.

Other non-operating items totalled EUR 786 million compared to EUR 353 million in 2018. They included the exceptional impact of the capital gain realised from the sale of 16.8% of SBI Life in India, followed by the deconsolidation of the residual stake (+EUR 1,450 million), the capital gain realised from the sale of a building for +EUR 101 million, and the impairments of goodwill (-EUR 818 million). They included in 2018 the exceptional impact of a +EUR 101 million capital gain realised from the sale of a building, and the 286 million euro capital gain realised from the sale of 30.3% from First Hawaiian Bank.

The Corporate Centre s pre-tax income thus came in at -EUR 848 million compared to -EUR 1,159 million in 2018.

(1) Reminder: First Hawaiian Bank (FHB) no more fully consolidated from 1 August 2018 and its contribution to the income statement reallocated retroactively to the Corporate Centre effective from 1 January 2018 (see new quarterly series published on 29 March 2019).

(2) Restructuring costs related in particular to the integration of Raiffeisen Bank Polska and the discontinuation or restructuring of certain businesses (in particular BNP Paribas Switzerland).

(3) Related in particular to BNL bc, Asset Management and BancWest.