2018 Registration document and annual fi nancial report - BNP PARIBAS116

3 2018 REVIEW OF OPERATIONS

3

Core business results

3.2 Core business results

RETAIL BANKING & SERVICES

In millions of euros 2018 2017 2018/2017

Revenues 31,546 31,045 +1.6%

Operating Expenses and Dep. (20,644) (20,044) +3.0%

Gross Operating Income 10,903 11,001 -0.9%

Cost of Risk (2,624) (2,705) -3.0%

Operating Income 8,279 8,296 -0.2%

Share of Earnings of Equity-Method Entities 486 622 -21.9%

Other Non Operating Items 208 443 -53.1%

Pre-Tax Income 8,972 9,361 -4.2%

Cost/Income 65.4% 64.6% +0.8 pt

Allocated Equity ( bn) 53.3 51.4 +3.7%

Including 100% of Private Banking in France (excluding PEL/CEL effects), in Italy, Belgium, Luxembourg, at BancWest and TEB for the Revenues to Pre-tax income line items.

DOMESTIC MARKETS

In millions of euros 2018 2017 2018/2017

Revenues 15,683 15,718 -0.2%

Operating Expenses and Dep. (10,707) (10,620) +0.8%

Gross Operating Income 4,977 5,098 -2.4%

Cost of Risk (1,046) (1,356) -22.8%

Operating Income 3,930 3,743 +5.0%

Share of Earnings of Equity-Method Entities (3) 62 n.s.

Other Non Operating Items 0 10 n.s.

Pre-Tax income 3,927 3,814 +3.0%

Income Attributable to Wealth and Asset Management (264) (273) -3.1%

Pre-Tax Income of Domestic Markets 3,663 3,541 +3.4%

Cost/Income 68.3% 67.6% +0.7 pt

Allocated Equity ( bn) 25.2 24.6 +2.4%

Including 100% of Private Banking in France (excluding PEL/CEL effects), Italy, Belgium and Luxembourg for the Revenues to Pre-tax income line items.

For the whole of 2018, the business activity of Domestic Markets was up. Outstanding loans rose by 4.9% compared to 2017 with good growth in loans both in the domestic networks and in the specialised businesses (Arval, Leasing Solutions). Deposits rose by 5.2% compared to 2017 and were up in all countries. There were good net asset infl ows at Private Banking (EUR 4.4 billion).

Domestic Markets continued to develop new customer experiences and digital transformation. Hello bank! reached 3 million customers and exceeded the threshold of 400,000 customers in France thanks to the good level of net client acquisition. For its part, Nickel exceeded 1.1 million accounts opened, or a 44% increase compared to 31 December 2017. The operating division accelerated individual customers mobile uses and enhanced mobile app features available, ranking as France s