270 2019 Universal registration document and annual financial report - BNP PARIBAS

5 risks and CaPital adequaCy Pillar 3

5

Annual risk survey

OTHER KEY FIGURES

➤ FIGURE 3: CREDIT RISK EXPOSURE BY GEOGRAPHIC REGION(*)

30% (31/12/2018: 32%) France

6% (31/12/2018: 6%) Asia Paci c

21% (31/12/2018: 19%) Other European Countries

13% (31/12/2018: 14%) Belgium & Luxembourg

10% (31/12/2018: 10%) Italy

6% (31/12/2018: 6%) Rest of the world

14% (31/12/2018: 13%) North America

(*) Breakdown at 31 December 2019.

As at 31 December 2019, the Group s credit risk exposure was mainly concentrated in Europe (74%) and North America (14%). See the section Credit risk diversification in section 5.4 Credit risk for more details about the diversification of the Group s exposures.

➤ FIGURE 4: CREDIT RISK EXPOSURE BY ASSET CLASS(*)

20% (31/12/2018: 21%) Central governments

and central banks

29% (31/12/2018: 29%)

5% (31/12/2018: 5%) Institutions

44% (31/12/2018: 42%) Corporates

Retail

1% (31/12/2018: 1%) Equity

2% (31/12/2018: 2%) Other Items

(*) Breakdown at 31 December 2019.

Credit exposure to sovereigns, financial institutions, corporates and specialised financing of Investment Grade counterparties represented 79% of IRBA credit risk exposure as at 31 December 2019, stable compared to 31 December 2018.

➤ TABLE 5: DOUBTFUL LOANS ON GROSS OUTSTANDINGS RATIO

31 December 2019 31 December 2018

DOUBTFUL LOANS(*)/LOANS(**) 2.2% 2.6%

(*) Impaired loans (stage 3) to customers and credit institutions, not netted of guarantees, including on-balance sheet and off-balance sheet and debt securities measured at amortised cost or at fair value through shareholders equity (excluding insurance).

(**) Gross outstanding loans to customers and credit institutions, on-balance sheet and off-balance sheet, and including securities measured at amortised cost or at fair value through shareholders equity (excluding insurance).

➤ TABLE 6: STAGE 3 COVERAGE RATIO

In billions of euros 31 December 2019 31 December 2018

Stage 3 provisions 17.1 19.9

Doubtful loans(*) 23.1 26.2

STAGE 3 COVERAGE RATIO 74.0% 76.2%

(*) Impaired loans (stage 3) to customers and credit institutions, on-balance sheet and off-balance sheet, netted of guarantees received, including debt securities measured at amortised cost or at fair value through shareholders equity (excluding insurance).

➤ TABLE 7: COST OF RISK ON OUTSTANDINGS

In annualised basis point 31 December 2019 31 December 2018

COST OF RISK/CUSTOMER LOANS(*) 39 35

(*) Cost of risk divided by customer loans at the beginning of the period (see section 3.8 Alternative Performance Measures (APM) article 223-1 of the AMF s General regulation in chapter 3).