2018 Registration document and annual fi nancial report - BNP PARIBAS338

5 RISKS AND CAPITAL ADEQUACY PILLAR 3

5

Credit risk

GEOGRAPHIC DIVERSIFICATION Country risk is the sum of the risks on all exposures to obligors in the country concerned. It is not the same as sovereign risk, which is the sum of all exposures to the central government and its various branches. Country risk reflects the Bank s exposure to a given economic and political environment, which are taken into consideration when assessing counterparty quality.

The geographic breakdown shown below is based on the counterparty s country of residence.

The geographic breakdown of the portfolios is balanced. In 2018, the Group was particularly attentive to geopolitical risks and the economic performance of emerging countries (see section Areas of special interest in 2018 in section 5.1).

➤ TABLE 26: CREDIT RISK EXPOSURE BY GEOGRA PHIC REGION (EU CRB-C) [Audited]

Exposure In millions of euros

Europe(*)

Total Europe France Belgium Luxembourg Italy

United Kingdom Germany Netherlands

Other European countries

Central governments or central banks 233,150 171,321 10,739 9,855 10,901 6,821 9,536 1,223 12,754

Institutions 25,907 6,898 8,531 334 2,049 2,285 1,076 1,088 3,646

Corporates 343,357 101,304 64,083 18,753 48,305 39,074 15,084 16,122 40,633

Retail 263,188 133,605 74,258 7,171 36,850 155 192 62 10,895

Other items 833 423 366 43 - 0 0 0 0

TOTAL IRB APPROACH 866,436 413,552 157,977 36,156 98,105 48,335 25,888 18,495 67,928

Central governments or central banks 17,526 5,546 1,916 18 1,762 38 344 8 7,893

Regional governments or local authorities 4,747 315 774 - 3,455 13 39 7 145

Public sector entities 4,098 504 298 - 3,195 4 63 2 34

Multilateral development banks 120 0 - 120 0 - - - -

International organisations 0 0 0 0 - - - - -

Institutions 8,606 5,363 274 144 695 404 483 155 1,088

Corporates 70,320 21,901 2,066 913 9,352 7,577 4,623 1,722 22,166

Retail 97,458 17,585 2,723 51 29,373 11,650 17,842 1,028 17,207

Exposures secured by mortgages on immovable property 35,674 10,010 1,262 112 1,139 1,988 1,058 7,275 12,830

Exposures in default 10,275 2,410 110 5 4,134 468 543 40 2,566

Exposures in the form of units or shares in collective investment undertakings 603 603 - - - - - - -

Equity 1,063 685 - 377 - - - - -

Other items 29,533 13,864 2,634 727 5,090 1,824 1,594 435 3,364

TOTAL STANDARDISED APPROACH 280,023 78,787 12,055 2,468 58,194 23,966 26,590 10,671 67,292

TOTAL 1,146,459 492,339 170,032 38,624 156,299 72,302 52,478 29,166 135,219

(*) Within the scope of the European Union and the European Free Trade Association (EFTA).