2018 Registration document and annual fi nancial report - BNP PARIBAS 127

32018 REVIEW OF OPERATIONS

3

Core business results

CORPORATE CENTRE

In millions of euros 2018 2017

Revenues 120 394

Operating Expenses and Dep. (1,776) (1,627)

Incl. Restructuring and Transformation Costs (1,235) (957)

Gross Operating Income (1,656) (1,234)

Cost of Risk (97) (121)

Operating Income (1,753) (1,355)

Share of Earnings of Equity-Method Entities 84 68

Other Non Operating Items 204 (177)

Pre-Tax Income (1,466) (1,464)

For the whole of 2018, Corporate Centre revenues totalled EUR 120 million compared to EUR 394 million in 2017 which recorded the exceptional impact of capital gains from the sale of Shinhan and Euronext shares for a total of +EUR 233 million as well as -EUR 175 million in Own Credit Adjustment (OCA) and own credit risk included in derivatives (DVA). Revenues included a lesser contribution by Principal Investments compared to a high level in 2017.

Operating expenses totalled EUR 1,776 million compared to EUR 1,627 million in 2017. They included the exceptional impact of EUR 1,106 million in transformation costs (EUR 856 million in 2017) and EUR 129 million in acquisitions restructuring costs(1) (EUR 101 million in 2017).

The cost of risk totalled EUR 97 million (EUR 121 million in 2017). It included the booking of stage 1 provisions on the portfolio of non-doubtful loans of Raiffeisen Bank Polska following the acquisition of its core banking activities (EUR 60 million).

The share of income of the associated companies totalled EUR 84 million- (EUR 68 million in 2017).

Non-operating items totalled EUR 204 million (-EUR 177 million in 2017). They included the exceptional impact of a +EUR 101 million capital gain on the sale of a building, a +EUR 135 million exchange difference from a sale of First Hawaiian Bank(2) shares, the impact of the revaluation at market value as at 31 December 2018 of the residual stake in First Hawaiian Bank(3) for -EUR 125 million and the booking of a badwill related to the acquisition of Raiffeisen Bank Polska for +EUR 68 million. They included last year the exceptional impact of the full impairment of TEB s goodwill for -EUR 172 million.

The Corporate Centre s pre-tax income was thus -EUR 1,466 million compared to -EUR 1,464 million in 2017.

(1) In particular, LaSer, DAB Bank GE LLD, ABN Amro Luxembourg and Raiffeisen Bank Polska.

(2) In addition, +EUR 151 million capital gain booked in BancWest.

(3) First Hawaiian Bank accounted under the IFRS 5 standard as of 30/06/2018.