2018 REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT

2018 Registration document and annual fi nancial report - BNP PARIBAS 451

5RISKS AND CAPITAL ADEQUACY PILLAR 3

Appendix 2: Regulatory capital Detail

In millions of euros

31 December 2018 1 January 2018

Reference to table 9 NotesPhased- in

Transitional arrangements(*) Phased- in

Transitional arrangements(*)

Credit risk adjustments included in Tier 2 in respect of exposures subject to internal ratings based approach (prior to the application of the cap) 222 - 315 - - -

79 Cap on inclusion of credit risk adjustments in T2 under internal ratings based approach 1,546 - 1,576 - - -

Capital instruments subject to phase out arrangements (only applicable between 1 Jan 2013 and 1 Jan 2022) -

80 Current cap on CET1 instruments subject to phase out arrangements - - - -

Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) - - - -

82 Current cap on AT1 instruments subject to phase out arrangements 4,046 1,012 5,058 2,023 - -

Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) - - - -

84 Current cap on T2 instruments subject to phase out arrangements 742 185 927 371 - -

Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) - - - -

(*) Amounts subject to pre-regulation treatment or prescribed residual amount of Regulation (EU) No. 575/2013, in accordance with grandfathered Additional Tier 1 and Tier 2 eligibility rules applicable as of 2019.

(1) Minority interests are adjusted for their capitalisation surplus for regulated entities. For the other entities, minority interests are not recognised in fully loaded Basel 3.

(2) Deductions from net income for the period relate mainly to the proposed dividend distribution. (3) The deduction of intangible assets is calculated net of deferred tax liabilities. (4) Tier 1 capital instruments issued by subsidiaries include subordinated debt, as well as preferred shares recognised in equity. (5) The residual amount of deductions from Tier 2 capital relates to Tier 2 capital instruments in fi nancial sector entities in which the Bank holds a

signifi cant investment, or with which the Bank has a cross holding. (6) A prudential discount is applied to Tier 2 capital instruments with less than fi ve years of residual maturity. (7) Holdings of equity instruments in fi nancial institutions are recorded in the banking book, as detailed in the consolidated accounting balance sheet to

the prudential balance sheet reconciliation, as well as in the trading book.