2018 Registration document and annual fi nancial report - BNP PARIBAS256

4 CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2018

4

Notes to the fi nancial statements

The BNP Paribas Group s maximum exposure to losses on sponsored structured entities is the carrying amount of the assets, excluding, for fi nancial assets at fair value through equity, changes in value taken directly to equity, as well as the nominal amount of the financing commitments and guarantee commitments given and the notional amount of credit default swaps (CDS) sold.

Information relative to interests in non-sponsored structured entities

The main interests held by the BNP Paribas Group when it acts solely as an investor in non-sponsored structured entities are detailed below:

■ Units in funds that are not managed by the Group, which are held by the Insurance business line: as part of the asset allocation strategy corresponding to investments related to the premiums for unit- linked contracts or for the general fund, the Insurance business line subscribes to units of structured entities. These short- or medium-term investments are held for their fi nancial performance and meet the risk diversifi cation criteria inherent to the business. They amounted to EUR 30 billion as at 31 December 2018 (EUR 31 billion as at 1 January 2018). Changes in value and the majority of the risks associated with these investments are borne by policyholders in the case of assets

representative of unit-linked contracts, and by the insurer in the case of assets representative of the general fund.

■ Other investments in funds not managed by the Group: as part of its trading business, the BNP Paribas Group invests in structured entities without any involvement in either managing or structuring these entities (investments in mutual funds, securities funds or alternative funds), particularly as economic hedge for structured products sold to customers. The Group also invests in minority holdings in investment funds, in support of companies, as part of its venture capital business. These investments amounted to EUR 8 billion as at 31 December 2018 (unchanged from 1 January 2018).

■ Investments in securitisation vehicles: the breakdown of the Group s exposure and the nature of the securities held are presented in chapter 5 of the Registration document in the section Securitisation as investor .

Besides, in the framework of its asset fi nancing activity, the BNP Paribas Group provides fi nancing to structured entities that are established by and for its clients and whose purpose is to acquire assets (aircraft, ships, etc.) intended for lease to those same clients. These fi nancings amount to EUR 9 billion as at 31 December 2018 (EUR 11 billion as at 1 January 2018).