2018 REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

2018 Registration document and annual fi nancial report - BNP PARIBAS240

4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

Notes to the fi nancial statements

➤ OTHER ITEMS RECOGNISED DIRECTLY IN EQUITY

In millions of euros Year to 31 Dec. 2018 Year to 31 Dec. 2017

Other items recognised directly in equity 147 194

Actuarial (losses)/gains on plan assets or reimbursement rights (120) 363

Actuarial (losses)/gains of demographic assumptions on the present value of obligations 36 58

Actuarial (losses)/gains of fi nancial assumptions on the present value of obligations 400 (210)

Experience (losses)/gains on obligations (50) (51)

Variation of the effect of assets limitation (119) 34

➤ MAIN ACTUARIAL ASSUMPTIONS USED TO CALCULATE OBLIGATIONS

In the Eurozone, United Kingdom and United States, the Group discounts its obligations using the yields of high quality corporate bonds, with a term consistent with the duration of the obligations.

The ranges of rates used are as follows:

The impact of a 100 bp change in discount rates on the present value of post-employment benefi t obligations is as follows:

In %

31 December 2018 31 December 2017

Discount rate Compensation increase rate(1) Discount rate

Compensation increase rate(1)

Belgium 0. 80%/1. 80% 2. 90%/3. 40% 0. 60%/1. 90% 2. 90%/3. 40%

UK 1. 80%/3. 00% 2. 00%/3. 55% 1. 50%/2. 70% 2. 00%/4. 70%

France 0. 40%/1. 80% 2. 05%/3. 30% 0. 50%/1. 30% 2. 15%/3. 40%

Switzerland 0. 00%/0. 90% 1. 40%/1. 50% 0. 00%/0. 80% 1. 40%/1. 50%

USA 3. 50%/4. 45% 4.00% 2. 25%/3. 75% 4.00%

Italy 0. 80%/1. 80% 1. 80%/3. 10% 0. 50%/1. 80% 1. 80%/2. 70%

Germany 1. 40%/1. 90% 2. 00%/3. 00% 1. 30%/1. 80% 2. 00%/3. 00%

Turkey 16.70% 12.20% 11.80% 6.00%

(1) Including price increases (infl ation).

Observed weighted average rates are as follows:

■ in the Eurozone: 1.30% at 31 December 2018 (1.06% at 31 December 2017);

■ in the United Kingdom: 2.81% at 31 December 2018 (2.41% at 31 December 2017);

■ in Switzerland: 0.89% at 31 December 2018 (0.60% at 31 December 2017).

Change in the present value of obligations In millions of euros

31 December 2018 31 December 2017

Discount rate -100bp

Discount rate +100bp

Discount rate -100bp

Discount rate +100bp

Belgium 306 (250) 309 (286)

UK 325 (243) 389 (286)

France 144 (121) 144 (122)

Switzerland 187 (145) 105 (143)

USA 69 (57) 95 (82)

Italy 26 (25) 27 (28)

Germany 37 (28) 39 (27)

Turkey 15 (12) 10 (8)