2018 Registration document and annual fi nancial report - BNP PARIBAS 247

4CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

The proceeds from these issues are recorded in equity under Capital and retained earnings . In accordance with IAS 21, issues denominated in foreign currencies are recognised at their historical value based on their translation into euros at the issue date. Interest on the instruments is treated in the same way as dividends.

At 31 December 2018, the BNP Paribas Group held EUR 16 million of Undated Super Subordinated Notes which were deducted from shareholders equity.

Earnings per share

Basic earnings per share are calculated by dividing the net income for the period attributable to holders of ordinary shares by the weighted average

number of ordinary shares outstanding during the period. The net income attributable to ordinary shareholders is determined by deducting the net income attributable to holders of preferred shares.

Diluted earnings per share correspond to the net income for the period attributable to holders of ordinary shares, divided by the weighted average number of shares outstanding as adjusted for the maximum effect of the conversion of dilutive equity instruments into ordinary shares. In-the-money stock subscription options are taken into account in the diluted earnings per share calculation, as are performance shares granted under the Global Share-Based Incentive Plan. Conversion of these instruments would have no effect on the net income fi gure used in this calculation.

Year to 31 Dec. 2018 IFRS 9 & IFRS 15

Year to 31 Dec. 2017 IAS 39

Net profi t used to calculate basic and diluted earnings per ordinary share (in millions of euros)(1) 7,159 7,537

Weighted average number of ordinary shares outstanding during the year 1,248,334,552 1,246,386,807

Effect of potentially dilutive ordinary shares 311 296,592

Stock subscription option plan - 295,245

Performance share attribution plan 311 1,347

Weighted average number of ordinary shares used to calculate diluted earnings per share 1,248,334,863 1,246,683,399

Basic earnings per share (in euros) 5.73 6.05

Diluted earnings per share (in euros) 5.73 6.05

(1) The net profi t used to calculate basic and diluted earnings per share is the net profi t attributable to equity shareholders, adjusted for the remuneration on the Undated Super Subordinated Notes issued by BNP Paribas SA (treated as preferred share equivalents), which for accounting purposes is handled as dividends, as well as the related foreign exchange impact recognised directly in shareholders equity in case of repurchase.

The dividend per share paid in 2018 out of the 2017 net income amounted to EUR 3.02, compared with EUR 2.70 paid in 2017 out of the 2016 net income.