2018 Registration document and annual fi nancial report - BNP PARIBAS 119

32018 REVIEW OF OPERATIONS

3

Core business results

BELGIAN RETAIL BANKING (BRB)

In millions of euros 2018 2017 2018/2017 Revenues 3,595 3,677 -2.2% Operating Expenses and Dep. (2,521) (2,554) -1.3% Gross Operating Income 1,074 1,123 -4.3% Cost of Risk (43) (65) -33.9% Operating Income 1,031 1,058 -2.5% Non Operating Items 18 28 -34.7% Pre-Tax Income 1,049 1,085 -3.3% Income Attributable to Wealth and Asset Management (70) (73) -4.2% Pre-Tax Income of Belgian Retail Banking 980 1,013 -3.3% Cost/Income 70.1% 69.5% +0.6 pt Allocated Equity ( bn) 5.7 5.3 +7.9%

Including 100% of Belgian Private Banking for the Revenues to Pre-tax income line items.

For the whole of 2018, BRB reported sustained business activity. Loans were up by 4.2% compared to 2017 with a sharp rise in corporate loans and growth in mortgage loans. Deposits rose by 4.1% with growth in current and savings accounts.

The business also successfully continued its digital development. Thanks to the continuous enhancement of its features, the Easy Banking app recorded a 23% increase in the number of users compared to 31 December 2017, at 1.4 million. The number of companies using Easy Banking Business was also up sharply (+20% since 31 December 2017) with in particular the successful launch of the mobile version. The business was also successful in the exclusive launch of Apple Pay in Belgium.

BRB s revenues(1) were down by 2.2%, compared to 2017, at EUR 3,595 million: net interest income(1) was down by 1.2% due to the impact of the low interest rate environment partly offset by volume growth. Fees(1) were down by 5.2% with a decrease in fi nancial fees, as a

result in particular of the very unfavourable market context in the fourth quarter, and a rise in retrocession fees to independent agents whose network has been expanded.

Operating expenses(1), at EUR 2,521 million, were down by 1.3% compared to 2017 thanks to the effect of cost saving measures (optimisation of the branch network and streamlining of the management set-up).

Gross operating income(1), at EUR 1,074 million, was down by 4.3% compared to last year.

At EUR 43 million, the cost of risk(1) was down (EUR 65 million in 2017) and totalled 4 basis points of outstanding customer loans.

After allocating one-third of Belgian Private Banking s net income to the Wealth Management business (International Financial Services division), BRB generated EUR 980 million in pre-tax income, down by 3.3% compared to 2017.

OTHER DOMESTIC MARKETS BUSINESS UNITS (ARVAL, LEASING SOLUTIONS, PERSONAL INVESTORS AND LUXEMBOURG RETAIL BANKING)

In millions of euros 2018 2017 2018/2017 Revenues 2,986 2,782 +7.3% Operating Expenses and Dep. (1,779) (1,608) +10.6% Gross Operating Income 1,207 1,174 +2.8% Cost of Risk (123) (89) +38.3% Operating Income 1,084 1,085 -0.1% Share of Earnings of Equity-Method Entities (12) 38 n.s. Other Non Operating Items (5) 4 n.s. Pre-Tax Income 1,067 1,127 -5.3% Income Attributable to Wealth and Asset Management (3) (3) -0.9% Pre-Tax Income of Other Domestic Markets 1,064 1,124 -5.4% Cost/Income 59.6% 57.8% +1.8 pt Allocated Equity ( bn) 4.4 4.0 +9.0%

Including 100% of Private Banking in Luxembourg for the Revenues to Pre-tax income line items.

(1) Including 100% of Private Banking in Belgium.