2018 Registration document and annual fi nancial report - BNP PARIBAS 123

32018 REVIEW OF OPERATIONS

3

Core business results

For the whole of 2018, BancWest s commercial activity continued to grow. The scope of the business evolved with the sale of 43.6% of First Hawaiian Bank(1), which is only 18.4% owned and is no more fully consolidated since 1 August 2018. Deposits were up by 3.6%(2) and loans by 1.6%(2) compared to 2017 with good growth in loans to individual and corporate customers. Private Banking s assets under management (13.7 billion U.S. dollars as at 31 December 2018) were up by 4.8%(2) compared to 31 December 2017.

The business continued its digital transformation with already 30% account openings done online. It developed cooperation with CIB (over 50 signifi cant transactions done jointly, or a 31% increase compared to 2017) and Personal Finance (car loans).

Revenues(3 ), at EUR 2,647 million, were up by 1.9%(2) compared to 2017 (+2.4%(2) excluding capital gains from the sale of securities and loans in 2017 for EUR 14 million), as a result of volume growth.

At EUR 1,870 million, operating expenses(3) rose by 2.6%(2) compared to 2017.

The cost of risk(3) (EUR 82 million), or 14 basis points of outstanding customer loans, was EUR 29 million lower compared to 2017.

Thus, after allocating one-third of U.S. Private Banking s net income to the Wealth Management business, BancWest posted EUR 819 million in pre- tax income, up by 3.3% at constant scope and exchange rates compared to 2017 (-1.4% at historical scope and exchange rates).

INSURANCE AND WEALTH & ASSET MANAGEMENT

INSURANCE

In millions of euros 2018 2017 2018/2017

Revenues 2,680 2,514 +6.6%

Operating Expenses and Dep. (1,406) (1,251) +12.4%

Gross Operating Income 1,273 1,263 +0.8%

Cost of Risk 3 4 -23.3%

Operating Income 1,276 1,267 +0.7%

Share of Earnings of Equity-Method Entities 202 225 -10.1%

Other Non Operating Items 1 375 -99.8%

Pre-Tax Income 1,479 1,867 -20.8%

Cost/Income 52.5% 49.8% +2.7 pt

Allocated Equity ( bn) 8.4 7.8 +7.7%

WEALTH & ASSET MANAGEMENT

In millions of euros 2018 2017 2018/2017

Revenues 3,286 3,193 +2.9%

Operating Expenses and Dep. (2,636) (2,387) +10.4%

Gross Operating Income 650 806 -19.4%

Cost of Risk (6) 24 n.s.

Operating Income 644 831 -22.5%

Share of Earnings of Equity-Method Entities 37 48 -22.8%

Other Non Operating Items 1 21 -97.4%

Pre-Tax Income 681 899 -24.2%

Cost/Income 80.2% 74.7% +5.5 pt

Allocated Equity ( bn) 1.9 1.9 +2.2%

(1) Sale of 13.2% on 8 May 2018, 15.5% on 31 July 2018 and 14.9% on 5 September 2018.

(2) At constant scope and exchange rates.

(3) Including 100% of Private Banking in the United States.