2018 REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

2018 Registration document and annual fi nancial report - BNP PARIBAS366

5 RISKS AND CAPITAL ADEQUACY PILLAR 3

Credit risk

➤ TABLE 42: BREAKDOWN OF FINANCIAL ASSETS SUBJECT TO IMPAIRMENT BY STAGE AND INTERNAL RATING [Audited]

In millions of euros

31 December 2018

Gross carrying value

Impairments

Net carrying

value

BNP Paribas rating or equivalent

TOTAL1 to 3 4 to 5 6 to 8 9 to 10 Defaulted

Central Banks 177,283 1,381 2,897 183 - 181,744 (15) 181,729

Stage 1 177,283 1,381 2,897 - - 181,561 (14) 181,547

Stage 2 - - - 183 - 183 (1) 182

Stage 3 - - - - - - - -

Debt securities at fair value through equity 52,878 1,690 2,443 261 114 57,386 (140) 57,246

Stage 1 52,878 1,680 2,221 - - 56,779 (7) 56,772

Stage 2 - 10 222 261 - 493 (21) 472

Stage 3 - - - - 114 114 (112) 2

Loans and advances at amortised cost 181,102 238,038 349,087 16,971 34,662 819,860 (24,473) 795,387

Stage 1 181,102 221,165 294,071 - - 696,338 (1,544 ) 694,794

Stage 2 - 16 ,873 55,016 16,971 - 88,860 (3,356 ) 85,504

Stage 3 - - - - 34,662 34,662 (19,573) 15,089

Debt securities at amortised cost 68,488 5,661 1,884 70 194 76,297 (130) 76,167

Stage 1 68,488 5,218 1,628 - - 75,334 (21) 75,313

Stage 2 - 443 256 70 - 769 (31) 738

Stage 3 - - - - 194 194 (78) 116

F inancing and gua rantee commitments 214,378 121,557 109,592 3,322 1,929 450,778 (775) 450,003

Stage 1 214,378 117,554 99,693 - - 431,625 (237) 431,388

Stage 2 - 4 ,003 9,899 3,322 - 17,224 (220) 17,004

Stage 3 - - - - 1,929 1,929 (318) 1,611

TOTAL 694,129 368,327 465,903 20,807 36,899 1,586,065 (25,533) 1,560,532

The following tables show the breakdown by regulatory asset class, geographic area, and economic sector of doubtful assets and impairments limited to the scope of exposures subject to credit risk (see Table 10: Prudential balance sheet by risk type (EU LI 1-B)). The exposure amounts

are gross of impairments and before accounting for credit risk mitigation techniques (funded or unfunded credit protection ).

Non-performing loans were down by EUR 4.3 billion in 2018, including -EUR 3.2 billion in Italy, mainly due to the disposal of portfolios of defaulted exposures.