2018 Registration document and annual fi nancial report - BNP PARIBAS476

6 INFORMATION ON THE PARENT COMPANY FINANCIAL STATEMENTS 31 DECEMBER 2018

6

Notes to the parent company fi nancial statements

2.e GAINS OR LOSSES ON SECURITIES AVAILABLE FOR SALE

In millions of euros

Year to 31 Dec. 2018 Year to 31 Dec. 2017

Income Expenses Income Expenses

Divestments 244 (113) 780 (121)

Provisions 106 (68) 112 (54)

TOTAL 350 (181) 892 (175)

NET GAINS ON SECURITIES AVAILABLE FOR SALE 169 717

2.f COST OF RISK AND PROVISION FOR CREDIT RISKS Cost of risk represents the net amount of impairment losses recognised with respect to credit risks inherent to BNP Paribas SA s banking intermediation activities, plus any impairment losses in the case of known counterparty risk on over-the-counter instruments.

In millions of euros Year to 31 Dec. 2018 Year to 31 Dec. 2017

Net additions to or write-backs from provisions (176) (203)

Customer items and credit institutions (374) (302)

Off-balance sheet commitment 252 107

Securities (41) 6

Doubtful loans 11 (19)

Financial instruments for market activities (24) 5

Irrecoverable loans not covered by provisions (226) (258)

Recoveries of loans written-off 70 136

COST OF RISK (332) (325)

In millions of euros Year to 31 Dec. 2018 Year to 31 Dec. 2017

Balance at 1 January 6,689 7,780

Net additions to or write-backs from provisions 176 203

Write-offs during the period covered by provisions (1,183) (1,061)

Effect of movements in exchange rates and other 688 (233)

PROVISIONS FOR CREDIT RISKS 6,370 6,689

The provisions break down as follows:

In millions of euros Year to 31 Dec. 2018 Year to 31 Dec. 2017

Provisions deducted from assets 6,089 6,141

For amounts due from credit institutions (note 3.a) 157 118

For amounts due from customers (note 3.b) 5,644 5,736

For amounts due from fi nance leases

For securities 228 251

For fi nancial instruments for market activities 60 36

Provisions recognised as liabilities (note 3.k) 281 548

For off-balance sheet commitments 248 486

For doubtful loans 33 62

PROVISIONS FOR CREDIT RISKS 6,370 6,689