2018 REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

2018 Registration document and annual fi nancial report - BNP PARIBAS 313

5RISKS AND CAPITAL ADEQUACY PILLAR 3

Capital management and capital adequacy

■ an increase of EUR 3 billion linked to methodological changes and regulations, mainly related to the macro-prudential measure of mortgages in Belgium;

■ a net fall of EUR 2 billion related to scope changes, in particular following the disposal of First Hawaiian Bank (FHB) and the acquisition of the core banking activities of Raiffeisen Bank in Poland.

Comments on the main changes in 2018 for each type of risk can be found in the various appropriate sections.

BREAKDOWN OF RISK-WEIGHTED ASSETS BY BUSINESS LINE

➤ TABLE 18: RISK-WEIGHTED ASSETS BY RISK TYPE AND BUSINESS

RWAs In millions of euros

31 December 2018

Retail Banking & Services Corporate & Institutional Banking

Corporate Centre Total

Domestic Markets

International Financial Services

Corporate Banking

Global Markets

Securities Services

Credit risk 201,178 181,846 93,573 5,561 2,773 18,920 503,851

of which standardised approach 63,388 138,353 6,329 1,745 575 9,991 220,383

of which advanced IRB approach 132,570 18,597 86,572 2,692 1,603 288 242,323

of which equity positions under the simple weighting method 5,219 24,896 672 1,124 594 8,641 41,146

Counterparty credit risk 2,249 708 515 21,561 1,440 161 26,634

of which mark-to-market 296 527 7 875 827 20 2,552

of which internal model method (IMM) 1,834 8 110 17,195 555 0 19,702

of which CCP default fund contributions 0 0 276 833 53 127 1,289

of which CVA 119 172 122 2,659 5 14 3,090

Settlement risk - - - 12 0 - 12

Securitisation exposures in the banking book 836 205 1,178 4,479 0 342 7,040

of which IRB approach 10 138 70 1,115 0 342 1,675

of which IRB supervisory formula approach (SFA) 631 0 1,108 2,562 0 0 4,301

of which internal assessment approach (IAA) - - - - - - -

of which standardised approach 196 67 0 802 0 0 1,064

Market risk 39 284 1,295 17,846 476 7 19,948

of which standardised approach 39 208 1,216 702 50 7 2,222

of which internal model approach (IMA) 0 76 79 17,144 427 0 17,726

Operational risk 23,606 19,172 9,970 15,962 3,459 778 72,947

of which basic indicator approach 1,145 3,429 203 241 406 196 5,619

of which standardised approach 1,789 6,338 1,201 723 102 241 10,393

of which a dvanced m easurement a pproach (AMA) 20,673 9,405 8,567 14,998 2,951 341 56,935

Amounts below the thresholds for deduction (subject to 250% risk weight) 1,207 5,420 9 484 54 9,395 16,569

TOTAL 229,115 207,635 106,541 65,905 8,203 29,603 647,001