2018 Registration document and annual fi nancial report - BNP PARIBAS122

3 2018 REVIEW OF OPERATIONS

3

Core business results

EUROPE-MEDITERRANEAN

In millions of euros 2018 2017 2018/2017 Revenues 2,358 2,337 +0.9% Operating Expenses and Dep. (1,605) (1,661) -3.4% Gross Operating Income 753 675 +11.5% Cost of Risk (308) (259) +18.8% Operating Income 445 416 +6.9% Non Operating Items 241 202 +19.1% Pre-Tax Income 686 619 +10.9% Income Attributable to Wealth and Asset Management (3) (2) +7.8% Pre-Tax Income of Europe-Mediterranean 684 616 +10.9% Cost/Income 68.1% 71.1% -3.0 pt Allocated Equity ( bn) 4.8 4.9 -3.2%

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

For the whole of 2018, Europe-Mediterranean delivered a good overall performance. Outstanding loans rose by 5.2%(1) compared to 2017. Deposits grew by 8.6%(1), up in particular in Turkey. The business continued to develop its digital banks (Cepteteb in Turkey and BGZ Optima in Poland) and to roll out e-signature in Poland, Turkey and Morocco for certain trade fi nance transactions and consumer loan applications.

The business also acquired this year the core banking activities of Raiffeisen Bank Polska(2), which strengthened BGZ BNP Paribas as the 6th largest bank in Poland (over 6% combined market share in loans and deposits) and is expected to have an above 1% positive impact on Group s net earnings per share in 2020.

At EUR 2,358 million, Europe-Mediterranean s revenues(3) were up by 12.5%(1) compared to 2017, as a result of increased volumes and margins as well as the good level of fees. They were up in all regions.

Operating expenses(3), at EUR 1,605 million, were up by 4.8%(1) due to business development with a largely positive jaws effect.

The cost of risk(3), which totalled EUR 308 million, was up by EUR 49 million as a result of a moderate rise in the cost of risk in Turkey. It was 82 basis points of outstanding customer loans.

After allocating one-third of Turkish Private Banking s net income to the Wealth Management business, Europe-Mediterranean generated EUR 684 million in pre-tax income, up signifi cantly compared to the same period last year (+23.6% at constant scope and exchange rates and +10.9% at historical scope and exchange rates given the strong depreciation of the Turkish lira).

BANCWEST

In millions of euros 2018 2017 2018/2017 Revenues 2,647 2,994 -11.6% Operating Expenses and Dep. (1,870) (2,035) -8.1% Gross Operating Income 777 959 -19.0% Cost of Risk (82) (111) -26.0% Operating Income 694 848 -18.1% Non Operating Items 152 3 n.s. Pre-Tax Income 847 851 -0.6% Income Attributable to Wealth and Asset Management (28) (21) +31.5% Pre-Tax Income of BancWest 819 830 -1.4% Cost/Income 70.7% 68.0% +2.7 pt Allocated Equity ( bn) 5.7 6.4 -10.2%

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

(1) At constant scope and exchange rates.

(2) Excluding mortgage loans in foreign currencies and a limited amount of other assets; acquisition closed on 31 October 2018.

(3) Including 100% of Private Banking in Turkey.