1472019 Universal registration document and annual financial report - BNP PARIBAS

32019 review of oPerations

3

Alternative Performance Measures (APM) Article 223-1 of the AMF s General regulation

2019 2018

BancWest(1)

Loan outstandings as of the beg. of the quarter ( bn) 55.1 51.3

Cost of risk ( m) 148 70

Cost of risk (in annualised bp) 27 14

Europe-Mediterranean(1)

Loan outstandings as of the beg. of the quarter ( bn) 40.7 37.7

Cost of risk ( m) 399 308

Cost of risk (in annualised bp) 98 82

Personal Finance

Loan outstandings as of the beg. of the quarter ( bn) 93.5 84.3

Cost of risk ( m) 1,354 1,186

Cost of risk (in annualised bp) 145 141

CIB - Corporate Banking

Loan outstandings as of the beg. of the quarter ( bn) 145.6 132.6

Cost of risk ( m) 223 31

Cost of risk (in annualised bp) 15 2

Group(2)

Loan outstandings as of the beg. of the quarter ( bn) 827.1 788.4

Cost of risk ( m) 3,203 2,764

Cost of risk (in annualised bp) 39 35

(1) With Private Banking at 100%. (2) Including cost of risk of market activities, International Financial Services and Corporate Centre.

METHODOLOGY COMPARATIVE ANALYSIS AT CONSTANT SCOPE AND EXCHANGE RATES

The method used to determine the effect of changes in scope of consolidation depends on the type of transaction (acquisition, sale, etc.). The underlying purpose of the calculation is to facilitate period-on-period comparisons.

In case of acquired or created entity, the results of the new entity are eliminated from the constant scope results of current-year periods corresponding to the periods when the entity was not owned in the prior-year.

In case of divested entities, the entity s results are excluded symmetrically for the prior year for quarters when the entity was not owned.

In case of change of consolidation method, the policy is to use the lowest consolidation percentage over the two years (current and prior) for results of quarters adjusted on a like-for-like basis.

Comparative analysis at constant exchange rates are prepared by restating results for the prior-year quarter (reference quarter) at the current quarter exchange rate (analysed quarter). All of these calculations are performed by reference to the entity s reporting currency.

REMINDER Net Banking Income: in this document, the terms Net Banking Income and Revenues are used interchangeably.

Operating expenses: sum of salary and employee benefit expenses, other operating expenses and depreciation, amortisation and impairment of property, plant and equipment. In the whole document, the terms operating expenses or costs can be used indifferently.

Operating divisions: they consist of 3 divisions:

■ Domestic Markets including: French Retail Banking (FRB), BNL banca commerciale (BNL bc), Belgium Retail Banking (BRB), Other Domestic Markets activities including Arval, Leasing Solutions, Personal Investors, Nickel and Luxembourg Retail Banking (LRB);

■ International Financial Services (IFS) including: Europe-Mediterranean, BancWest, Personal Finance, Insurance, Wealth & Asset Management (WAM) that includes Asset Management, Wealth Management and Real Estate Services;

■ Corporate and Institutional Banking (CIB) including: Corporate Banking, Global Markets, Securities Services.

■ Capital allocation: see page 115.