2018 Registration document and annual fi nancial report - BNP PARIBAS 365
5RISKS AND CAPITAL ADEQUACY PILLAR 3
5
Credit risk
In millions of euros
1 January 2018
Gross exposure
EAD Risk
weight RWAs Capital
requirement On-balance-
sheet amount Off-balance-
sheet amount Total
Private equit y exposures in diversifi ed portfolios 1,626 566 2,192 1,909 190% 3,627 290
Listed equity exposures 1,434 488 1,922 1,878 290% 5,445 436
Other equity exposures 9,367 140 9,507 9,439 370% 34,925 2,794
TOTAL 12,427 1,194 13,621 13,226 43,997 3,520
➤ TABLE 40: INSURANCE UNDERTAKINGS (EU INS1) [Audited]
31 December 2018 1 January 2018
Holdings in insurance companies(*) (before 370% risk weight) 6,648 7,138
TOTAL RISK-WEIGHTED ASSETS 24,599 26,411
(*) Signifi cant fi nancial holdings in insurance companies consolidated by the equity method in the prudential scope, benefi ting from the provisions of article 49 of Regulation (EU) No. 575/2013 on exemptions from deduction from regulatory capital of holdings in an insurance company. Under the provisions of article 48 of Regulation (EU) No. 575/2013, a potential deduction from regulatory capital would have a limited impact with a decrease of less than 10 basis points in the CET1 ratio.
➤ TABLE 41: EQUITY RISK-WEIGHTED ASSETS MOVEMENTS BY KEY DRIVER
In millions of euros
1 January 2018
Key driver
Total variation
31 December
2018 Asset
size Asset
quality Model
updates Methodology
and policy
Acquisitions and
disposals Currency Other
Risk-Weighted Assets 43,997 (1,826) (33) - - (815) 2 (179) (2,851) 41,146
The reduction in risk-weighted assets in 2018 is mainly due to disposals of investment stakes during the year.
EXPOSURE IN DEFAULT, PROVISIONS AND COST OF RISK
Impaired exposures (stage 3) related to assets at amortis ed cost and fi nancing and guarantee commitments given, as well as the guarantees received as collateral are presented in note 5.f to the fi nancial statements.
The following table shows the carrying amounts of the fi nancial assets subject to impairment provisions for credit risk broken down by stage of impairment and by BNP Paribas internal rating in the prudential scope.
Financial assets subject to impairment are recognised in the following accounting categories:
■ amounts due from central banks (exclusing cash);
■ debt securities at fair value through equity or at amortised cost;
■ loans and advances at amortised cost;
■ fi nancing and guarantee commitments given (off-balance-sheet).
