330 2019 Universal registration document and annual financial report - BNP PARIBAS

5 risks and CaPital adequaCy Pillar 3

5

Credit risk

GEOGRAPHIC DIVERSIFICATION Country risk is the sum of the risks on all exposures to obligors in the country concerned. It is not the same as sovereign risk, which is the sum of all exposures to the central government and its various branches. Country risk reflects the Bank s exposure to a given economic and political environment, which are taken into consideration when assessing counterparty quality.

The geographic breakdown shown below is based on the counterparty s country of residence.

The geographic breakdown of the portfolios is balanced. In 2019, the Group was particularly attentive to geopolitical risks and the economic performance of emerging countries (see section Areas of special interest in 2019 in section 5.1).

➤ TABLE 27: CREDIT RISK EXPOSURE BY GEOGRAPHIC REGION (EU CRB-C)

Exposure In millions of euros

31 December 2019

Europe(*)

North America

Asia Pacific Rest of the World

TOTALTotal Europe France Belgium Luxembourg Italy United

Kingdom Germany Netherlands

Other European countries

Total Asia Pacific Japan North Asia

South- East Asia

(ASEAN)

Indian peninsula

& Pacific

Total Rest of the World Turkey

Mediter- ranean

Gulf States & Africa

Latin America

Other countries

Central governments or central banks 213,344 136,533 10,532 8,957 14,721 7,150 11,406 706 23,340 24,568 26,238 11,754 6,876 4,233 3,375 6,206 0 87 2,940 1,629 1,550 270,355

Institutions 33,308 8,245 8,255 662 2,695 1,324 5,939 1,812 4,376 7,867 10,836 1,886 6,296 1,375 1,280 6,125 1,241 308 2,844 1,489 243 58,137

Corporates 379,138 118,884 61,853 21,038 49,802 44,109 18,620 18,012 46,820 87,298 50,151 5,550 15,645 14,110 14,845 36,685 2,163 411 10,808 10,790 12,513 553,272

Retail 273,045 138,963 78,332 8,004 36,072 123 186 69 11,296 130 86 4 24 37 20 232 5 37 73 17 100 273,493

Other items 459 15 397 47 - 0 - 0 0 - 0 0 - - - - - - - - - 459

TOTAL IRB APPROACH 899,293 402,640 159,369 38,709 103,289 52,706 36,151 20,599 85,831 119,863 87,312 19,195 28,841 19,755 19,521 49,248 3,410 844 16,664 13,925 14,406 1,155,716

Central governments or central banks 17,427 4,410 1,767 14 2,755 26 386 5 8,065 6,055 102 51 5 15 32 5,934 3,091 1,602 671 43 528 29,518

Regional governments or local authorities 4,716 368 909 - 3,241 8 8 9 172 1,016 0 - - - 0 184 184 0 0 - - 5,916

Public sector entities 4,007 711 38 - 2,998 47 18 4 191 14,005 21 - 21 - - 143 10 48 0 - 85 18,176

Multilateral development banks 147 - - 147 0 - - - - 31 13 - - 13 - - - - - - - 192

International organisations 9 - 9 - - - - - - - - - - - - - - - - - - 9

Institutions 7,334 3,591 287 169 890 425 839 94 1,040 920 714 136 208 42 328 1,845 1,187 287 111 124 136 10,813

Corporates 69,761 21,131 1,782 1,138 8,789 8,755 5,109 1,436 21,622 28,361 6,409 67 4,432 1,556 354 13,989 4,744 5,336 1,823 565 1,522 118,520

Retail 97,383 15,061 2,921 57 28,401 13,388 18,510 1,106 17,938 17,241 1,023 5 819 12 186 14,372 6,561 1,279 1,774 4,112 647 130,019

Exposures secured by mortgages on immovable property 36,187 10,026 1,976 41 1,121 1,358 1,206 6,631 13,829 29,167 280 1 156 106 17 5,098 3,264 1,507 115 52 161 70,732

Exposures in default 8,233 1,822 68 70 2,854 451 635 62 2,270 311 6 0 0 2 4 2,276 793 926 345 130 82 10,826

Items associated with particular high risk(**) 94 12 - - 0 - - - 82 930 - - - - - 162 11 151 0 - - 1,187

Exposures in the form of units or shares in collective investment undertakings 533 533 - - - - - - - - - - - - - - - - - - - 533

Equity 782 553 - 228 - - - - - - - - - - - - - - - - - 782

Other items 25,452 13,594 2,028 538 3,623 2,075 2,461 78 1,055 1,666 176 42 43 10 81 1,020 265 367 173 124 90 28,314

TOTAL STANDARDISED APPROACH 272,066 71,811 11,786 2,402 54,672 26,533 29,173 9,425 66,263 99,703 8,744 302 5,684 1,756 1,002 45,022 20,110 11,501 5,012 5,149 3,250 425,536

TOTAL 1,171,359 474,451 171,155 41,111 157,961 79,239 65,324 30,024 152,094 219,566 96,056 19,497 34,525 21,511 20,523 94,270 23,520 12,345 21,676 19,074 17,656 1,581,252

(*) Within the scope of the European Union and the European Free Trade Association (EFTA). (**) Immovable property financing exposures whose risk profile may be affected by market conditions.