Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q2 2021 Earnings Presentation
87 slides from Bnp Paribas S.a. Class A's earnings presentation, Jul 30, 2021
Slide 1: Second Quarter 2021 Results
SECOND QUARTER 2021 RESULTS 30 July 2021
Slide 2: Disclaimer
Disclaimer The figures included in this presentation are unaudited. This presentation includes forward-looking statements based on current beliefs and expectations about future events. Forward-looking statements include financial projections and estimates and their underlying assumptions, statements
Slide 3: 2Q21: A solid model and a strong performance
2Q21: A solid model and a strong performance Sustained growth in revenues Revenues: +0.9% vs. 2Q20 • Contribution of the diversified & integrated model, very good performance in (+4.9% vs. 2Q19) DMs and continued high level of revenues at CIB after an exceptional 2Q20 Costs: -2.3% vs. 2Q20 • Ongoing
Slide 4: 1H21 – Solid growth in results
1H21 – Solid growth in results An established rebound and a proven growth potential 1H21 Revenues: €23,605m 1H21 Operating expenses (excluding taxes subject to IFRIC 21): €14,309m +5.5% -3.0% +4.6% +0.7% 22.4 22.6 23.6 14.8 14.2 14.3 €bn €bn 1H19 1H20 1H21 1H19 1H20 1H21 1H21 Gross Operating Income:
Slide 5: Group Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H21 DETAILED RESULTS APPENDICES
Slide 6: 2Q21 – Main exceptional items
2Q21 – Main exceptional items Exceptional items 2Q21 2Q20 2Q19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€24m -€30m -€114m • IT reinforcement costs (Corporate Centre) -€47m -€45m • Donations and staff safety measures relating to the health crisis (Corporate
Slide 7: 2Q21 – Consolidated Group
2Q21 – Consolidated Group Solid results, with a rebound to levels above 2019 2Q21 2Q21 2Q21 2Q20 vs. 2Q20 2Q19 vs. 2Q19 Revenues €11,776m €11,675m +0.9% €11,224m +4.9% Operating expenses -€7,172m -€7,338m -2.3% -€7,435m -3.5% Gross operating income €4,604m €4,337m +6.2% €3,789m +21.5% Cost of risk -
Slide 8: 2Q21 – Revenues
2Q21 – Revenues Strength of the diversified model Domestic International CIB Group Markets1 Financial Services +9.5% 2Q21 vs. 2Q20 -2.0% 2Q21 vs. 2Q20 -9.9% 2Q21 vs. 2Q20 +0.9% 2Q21 vs. 2Q20 +4.9% 2Q21 vs. 2Q19 2Q19 3,925 3,721 4,076 4,262 4,027 3,948 4,123 3,714 3,099 2Q20 €m 2Q21 Domestic Market
Slide 9: 2Q21 – Operating expenses
2Q21 – Operating expenses Positive jaws effect Domestic International Markets1 Financial Services CIB Group +2.3% +2.6% -8.0% -2.3% 2,446 2,502 2,414 2,478 2,220 2,042 2Q20 2Q21 €m Domestic Markets: increase in operating expenses due to growth in specialised businesses and the rebound of activity
Slide 10: Cost of risk by Business Unit (1/3)
Cost of risk by Business Unit (1/3) Cost of risk / customer loans outstanding at the beginning of the period (in annualised bp) Group • Cost of risk: €813m -€83m vs. 1Q21 -€634m vs. 2Q20 66 67 65 74 57 • Low cost of risk, provisions on non-performing loans 39 35 39 42 38 (stage 3) at low levels
Slide 11: Cost of risk by Business Unit (2/3)
Cost of risk by Business Unit (2/3) Cost of risk / customer loans outstanding at the beginning of the period (in annualised bp) FRB • Cost of risk: €101m -€24m vs. 1Q21 +€11m vs. 2Q20 21 16 17 25 21 18 27 32 24 19 • Cost of risk still at a low level 2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20 1Q21 2
Slide 12: Cost of risk by Business Unit (3/3)
Cost of risk by Business Unit (3/3) Cost of risk / customer loans outstanding at the beginning of the period (in annualised bp) Personal Finance • Cost of risk: €344m +€23m vs. 1Q21 240 253 -€106m vs. 2Q20 212 187 165 147 141 145 138 147 • Cost of risk remaining at a normalised level thanks to e
Slide 13: 2Q21 – A very solid financial structure
2Q21 – A very solid financial structure CET1 ratio: 12.9% as at 30.06.211 (+10 bps vs. 31.03.21) CET1 ratio • 2Q21 results, after taking into account a 50% pay-out ratio: +20 bps 12.8% 12.9% • Impacts related to the updating of models and regulation: -10 bps • Overall limited impact of other effects
Slide 14: Constant and strong value creation throughout the cycle
Constant and strong value creation throughout the cycle Net tangible book value per share1: €76.3 +€4.5 (+6.3%) vs. 30.06.20 € 85.4 2008-2Q21 CAGR1: 82.3 79.0 9.1 +5.1% 73.9 75.1 74.7 9.1 70.9 9.3 66.6 76.3 65.0 10.6 10.0 9.9 73.2 63.1 10.7 69.7 57.1 10.0 10.9 65.1 64.8 55.6 10.7 63.3 51.9 60.2 Net
Slide 15: Distribution policy and capital management
Distribution policy and capital management Additional ordinary cash dividend of €1.55 per share1 • Proposed to the General Meeting of 24 Sept. 2021 for pay-out on 30 Sept. 20211 • Equivalent to the distribution of 29% of 2020 net income announced with the release of the 2020 full-year results and fu
Slide 16: A reinforced Internal Control Set-up
A reinforced Internal Control Set-up An even more solid control and compliance set-up and ongoing efforts in inserting a reinforced compliance culture into daily operations • Ongoing improvement of the operating model for combating money laundering and terrorism financing: A standards-based, risk-
Slide 17: An ambitious policy of engagement in Society: climate
An ambitious policy of engagement in Society 2021: a further step in the commitments to climate Long committed to the fight against global warming, BNP Paribas was one of the first signatories of the Net-Zero Banking Alliance (NZBA), through which it pledged to align GHG1 emissions tied to its finan
Slide 18: An ambitious policy of engagement in Society: biodiversity
An ambitious policy of engagement in Society A pioneering role in the commitments towards biodiversity Three years after joining the act4nature initiative, BNP Paribas has stepped up its commitments contributing to protecting biodiversity, including its pledge to evaluate corporate clients on biodiv
Slide 19: Division Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H21 DETAILED RESULTS APPENDICES
Slide 20: Domestic Markets – 2Q21
Domestic Markets – 2Q21 Very good quarterly results with sustained business drive Very good business drive Loans • Loans: +4.0% vs. 2Q20, increase in all business lines, rise in individual and +4.0% corporate loans €bn 449 432 • Deposits: +7.5% vs. 2Q20, increase driven by the effects of the public
Slide 21: DM – French Retail Banking – 2Q21
DM – French Retail Banking – 2Q21 Strong growth in results Good business drive Loans • Loans: +6.2% vs. 2Q20, increase in corporate and individual loans, continued +6.2% €bn momentum in individual loans with sustained production and good level of margin • Deposits: +6.0% vs. 2Q20, increase driven by
Slide 22: DM – BNL banca commerciale – 2Q21
DM – BNL banca commerciale – 2Q21 Increase in results, positive jaws effect and lower cost of risk Growth in business activity Off-balance sheet savings • Loans: +1.1% vs. 2Q20, +2.9% increase when excluding non-performing (Life insurance and mutual funds) loans, growth mainly in loans to individual
Slide 23: DM – Belgian Retail Banking – 2Q21
DM – Belgian Retail Banking – 2Q21 Strong rise in results and positive jaws effect Increase in business activity Mutual fund outstandings • Loans: +0.6% vs. 2Q20, growth driven by the increase in loans to individuals • Deposits: +6.2% vs. 2Q20, increase in individual customer deposits, decrease +24.
Slide 24: DM – Other Activities – 2Q21
DM – Other Activities – 2Q21 Strong growth in revenues and results Very good development of activity in all businesses Arval financed fleet1 • Arval: a very good performance driven by the expansion in the financed fleet +6.4% (+6.4%1 vs. 2Q20) and the ongoing increase in used car prices in all count
Slide 25: International Financial Services – 2Q21
International Financial Services – 2Q21 Good level of results Strong business drive Assets under management3 • Business recovery in Personal Finance: rebound in production in all €bn +10.8% distribution channels and improvement in the cost of risk • Sustained business drive in international retail n
Slide 26: IFS – Personal Finance – 2Q21
IFS – Personal Finance – 2Q21 Increase in results, driven by business recovery and a normalised cost of risk Significant recovery in business drive Monthly loan production • Loans: -0.5% vs. 2Q20 with the impact of lower production in 2020, shift in trend in 2Q21 (+0.5% vs. 1Q21) 2021 2019 • Rebound
Slide 27: IFS – Europe-Mediterranean – 2Q21
IFS – Europe-Mediterranean – 2Q21 Continued business momentum despite challenging environments Strong business activity Monthly loan production2 • Loans: +2.0%1 vs. 2Q20, increase in loan volumes, particularly in Poland and Turkey • Ongoing rebound in loan production in all countries after bottoming
Slide 28: IFS – BancWest – 2Q21
IFS – BancWest – 2Q21 Sustained business drive, decrease in the cost of risk & strong increase in income Good business drive in lending businesses Quarterly loan production • Strong increase in loan production to individuals and SMEs (+34.5% vs. to individuals and SMEs 2Q20) and in particular for co
Slide 29: IFS – Insurance and WAM – Asset inflows and AuM – 1H21
IFS – Insurance and WAM1 – Asset inflows and AuM – 1H21 Very good net asset inflows and favourable performance effect Assets under management: €1,203bn as at 30.06.21 Change in assets under management2 • +3.2% vs. 31.12.20 (+10.8% vs. 30.06.20) €bn +40.8 +7.9 Others • Favourable performance effect o
Slide 30: IFS – Insurance – 2Q21
IFS – Insurance – 2Q21 Very good business momentum Continuation of the pick-up in activity Gross asset inflows in • Sustained performance in Savings both in France and internationally with Savings gross inflows up sharply (+54.3% vs. 1H20) and the vast majority of net inflows €bn in unit-linked cont
Slide 31: IFS – Wealth and Asset Management – 2Q21
IFS – Wealth and Asset Management1 – 2Q21 Very good activity and very strong increase in results Wealth Management Acknowledged • Very good net asset inflows in domestic markets and with large European and leadership international accounts • Marked increase in financial fees with an increase in outs
Slide 32: Corporate & Institutional Banking – 2Q21
Corporate & Institutional Banking – 2Q21 Very strong results sustained by the diversification of businesses Very strong drive in all businesses CIB revenues (1Q18-2Q21) • Financing: robust equity issuance, normalising of debt 4.12 €bn volumes compared to 2Q20 4.0 • Markets: very sustained client act
Slide 33: CIB: Corporate Banking – 2Q21
CIB: Corporate Banking – 2Q21 Continued very good business drive Activity level remains high Corporate Banking growth • Financing raised for clients on the syndicated loan, bond and equity (Revenues 1Q18-2Q21) markets: -37% vs. the exceptional level of 2Q20, +24%1 vs. 2Q19 €bn 2020 • Loans (€154bn,
Slide 34: CIB: Global Markets – 2Q21
CIB: Global Markets – 2Q21 Solid revenues level compared to an exceptional 2Q20 Continued expansion of platforms Global Markets revenues • Prime brokerage: first wave of client transfers finalised in July under the 1Q19-2Q21 agreement with Deutsche Bank €bn 2.30 2020 • Stake in Exane raised to 100%
Slide 35: CIB: Securities Services – 2Q21
CIB: Securities Services – 2Q21 Sustained and steady growth of the platform Continued very strong business drive Assets under custody (AuC) • Closing of the acquisition of the depositary bank business of and under administration (AuA) Banco Sabadell (€21bn in assets), announced in 2020 end of period
Slide 36: Conclusion
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H21 DETAILED RESULTS APPENDICES
Slide 37: Conclusion
Conclusion Strong results driven by the strength of the diversified and integrated model 2Q21 net income1: €2,911m (+26.6% vs. 2Q20) An established rebound and a proven growth potential 2021 trends: • Revenue growth stronger than expected • Stability of costs2 and positive jaws effects • Cost of ris
Slide 38: 1H21 Detailed Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H21 DETAILED RESULTS APPENDICES
Slide 39: 1H21 – Main exceptional items
1H21 – Main exceptional items Exceptional Items 1H21 1H20 1H19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€82m -€76m -€151m • IT reinforcement costs (Corporate Centre) -€66m -€79m • Donations and staff safety measures relating to the health crisis (Corporate
Slide 40: 1H21 – Consolidated Group
1H21 – Consolidated Group Solid results with an established rebound and a proven growth potential 1H21 1H21 1H21 1H20 vs. 1H20 1H19 vs. 1H19 Revenues €23,605m €22,563m +4.6% €22,368m +5.5% Operating expenses -€15,769m -€15,495m +1.8% -€15,884m -0.7% Gross operating income €7,836m €7,068m +10.9% €6,4
Slide 41: 1H21 – Revenues
1H21 – Revenues Strength of the diversified model Domestic International CIB Group Markets1 Financial Services +5.2% 1H21 vs. 1H20 -1.3% 1H21 vs. 1H20 +4.4% 1H21 vs. 1H20 +4.6% 1H21 vs. 1H20 +5.5% 1H21 vs. 1H19 1H19 7,886 7,635 8,032 8,544 8,080 7,976 7,076 7,384 6,107 1H20 €m 1H21 Domestic Market
Slide 42: 1H21 – Operating expenses
1H21 – Operating expenses Positive jaws effect Domestic International Markets1 CIB Group Financial Services +1.5% -2.2% +4.3% +1.8% 5,415 5,499 1H20 5,180 5,065 4,809 1H21 4,612 €m Domestic Markets: increase due to growth in the specialised businesses and the rebound in activity in the networks2,
Slide 43: 1H21 & 2Q21 – BNP Paribas Group
1H21 & 2Q21 – BNP Paribas Group 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 2Q20 1Q21 1H20 Group n.s. n.s. n.s. Revenues 11,776 11,675 +0.9% 11,829 -0.4% 23,605 22,563 +4.6% Operating Expenses and Dep. -7,172 -7,338 -2.3% -8,597 -16.6% -15,769 -15,495 +1.8% Gross Operating Income 4,604 4,337 +6
Slide 44: 1H21 & 2Q21 – Retail Banking and Services
1H21 & 2Q21 – Retail Banking and Services 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 7,881 7,615 +3.5% 7,843 +0.5% 15,724 15,438 +1.9% Operating Expenses and Dep. -4,909 -4,790 +2.5% -5,499 -10.7% -10,408 -10,440 -0.3% Gross Operating Income 2,972 2,825 +5.2%
Slide 45: 1H21 – Domestic Markets
1H21 – Domestic Markets 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 4,076 3,721 +9.5% 3,956 +3.0% 8,032 7,635 +5.2% Operating Expenses and Dep. -2,502 -2,446 +2.3% -2,997 -16.5% -5,499 -5,415 +1.5% Gross Operating Income 1,574 1,276 +23.4% 959 +64.2% 2,533 2,21
Slide 46: 1H21 – DM – French Retail Banking
1H21 – DM – French Retail Banking (excluding PEL/CEL effects) 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 1,587 1,408 +12.7% 1,480 +7.3% 3,067 2,932 +4.6% Incl. Net Interest Income 840 774 +8.6% 796 +5.5% 1,636 1,596 +2.5% Incl. Commissions 747 634 +17.8% 684 +
Slide 47: DM – French Retail Banking: Volumes
DM – French Retail Banking Volumes Outstandings Outstandings %Var/2Q20 %Var/1Q21 %Var/1H20 Average outstandings (€bn) 2Q21 1H21 LOANS 198.8 +6.2% +0.4% 198.4 +8.6% Individual Customers 104.0 +6.3% +1.7% 103.1 +5.3% Incl. Mortgages 93.1 +6.5% +1.8% 92.3 +5.9% Incl. Consumer Lending 10.8 +4.8% +1.7% 1
Slide 48: 1H21 – DM – BNL banca commerciale
1H21 – DM – BNL banca commerciale 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 2Q20 1Q21 1H20 Revenues 669 649 +3.1% 676 -0.9% 1,345 1,308 +2.8% Operating Expenses and Dep. -435 -422 +3.0% -459 -5.3% -894 -887 +0.8% Gross Operating Income 235 227 +3.4% 217 +8.4% 451 421 +7.3% Cost of Risk -105 -
Slide 49: DM – BNL banca commerciale: Volumes
DM – BNL banca commerciale Volumes Outstandings Outstandings %Var/2Q20 %Var/1Q21 %Var/1H20 Average outstandings (€bn) 2Q21 1H21 LOANS 76.2 +1.1% -0.9% 76.6 +3.2% Individual Customers 41.0 +4.6% +1.5% 40.7 +4.1% Incl. Mortgages 26.2 +4.1% +1.6% 26.0 +2.4% Incl. Consumer Lending 4.9 +5.1% +2.3% 4.8 -1
Slide 50: 1H21 – DM – Belgian Retail Banking
1H21 – DM – Belgian Retail Banking 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 2Q20 1Q21 1H20 Revenues 864 835 +3.5% 858 +0.6% 1,722 1,720 +0.1% Operating Expenses and Dep. -488 -499 -2.1% -835 -41.5% -1,323 -1,329 -0.5% Gross Operating Income 376 336 +11.8% 23 n.s. 399 391 +2.1% Cost of Risk -
Slide 51: DM – Belgian Retail Banking: Volumes
DM – Belgian Retail Banking Volumes Outstandings Outstandings %Var/2Q20 %Var/1Q21 %Var/1H20 Average outstandings (€bn) 2Q21 1H21 LOANS 116.2 +0.6% +1.3% 115.4 +0.6% Individual Customers 74.7 +2.3% +1.0% 74.4 +2.2% Incl. Mortgages 54.5 +2.2% +0.5% 54.3 +2.1% Incl. Consumer Lending 0.4 +4.7% n.s. 0.2
Slide 52: 1H21 – DM – Other Activities
1H21 – DM – Other Activities 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 956 829 +15.3% 942 +1.5% 1,898 1,675 +13.3% Operating Expenses and Dep. -505 -451 +11.9% -533 -5.4% -1,038 -959 +8.2% Gross Operating Income 451 378 +19.3% 408 +10.5% 860 715 +20.2% Cost o
Slide 53: DM – LRB – Personal Investors
DM – LRB – Personal Investors Luxembourg Retail Banking (LRB) 2Q21 %Var/2Q20 %Var/1Q21 1H21 %Var/1H20 Average outstandings (€bn) Loans: +5.7% vs. 2Q20, good growth LOANS 12.1 +5.7% +2.2% 12.0 +5.1% driven mainly by mortgage loans Individual Customers 7.7 +7.0% +1.4% 7.7 +6.8% Deposits: +16.2% vs. 2Q
Slide 54: DM – Arval – Leasing Solutions – Nickel
DM – Arval – Leasing Solutions – Nickel Arval %Var 1/2Q20 %Var 1/1Q21 %Var 1/1H20 at constant at constant at constant 2Q21 1H21 scope and scope and scope and exchange exchange exchange Average outstandings (€bn) rates rates rates Consolidated Outstandings 24.0 +11.7% +2.9% 23.6 +10.7% Financed vehic
Slide 55: 1H21 – International Financial Services
1H21 – International Financial Services 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 2Q20 1Q21 1H20 Revenues 3,948 4,027 -2.0% 4,028 -2.0% 7,976 8,080 -1.3% Operating Expenses and Dep. -2,478 -2,414 +2.6% -2,587 -4.2% -5,065 -5,180 -2.2% Gross Operating Income 1,470 1,613 -8.9% 1,441 +2.0% 2,911
Slide 56: 1H21 – IFS – Personal Finance
1H21 – IFS – Personal Finance 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 1,319 1,302 +1.3% 1,332 -0.9% 2,651 2,777 -4.5% Operating Expenses and Dep. -700 -641 +9.2% -763 -8.3% -1,463 -1,429 +2.4% Gross Operating Income 619 661 -6.3% 568 +9.0% 1,188 1,348 -11.9
Slide 57: IFS – Personal Finance: Volumes and risks
IFS – Personal Finance Volumes and risks Outstandings %Var/2Q20 %Var/1Q21 Outstandings %Var/1H20 at constant at constant at constant scope and scope and scope and 2Q21 historical historical 1H21 historical exchange exchange exchange Average outstandings (€bn) rates rates rates TOTAL CONSOLIDATED OUT
Slide 58: 1H21 – IFS – Europe-Mediterranean
1H21 – IFS – Europe-Mediterranean 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 464 609 -23.8% 516 -10.1% 981 1,274 -23.0% Operating Expenses and Dep. -394 -414 -4.8% -433 -9.0% -826 -904 -8.5% Gross Operating Income 71 196 -63.9% 84 -15.6% 154 370 -58.4% Cost of
Slide 59: IFS – Europe-Mediterranean: Volumes and risks
IFS – Europe-Mediterranean Volumes and risks Outstandings %Var/2Q20 %Var/1Q21 Outstandings %Var/1H20 at constant at constant at constant scope and scope and scope and 2Q21 historical historical 1H21 historical exchange exchange exchange Average outstandings (€bn) rates rates rates n.s. n.s. n.s. n.s
Slide 60: 1H21 – IFS – BancWest
1H21 – IFS – BancWest 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 587 629 -6.6% 625 -6.1% 1,212 1,240 -2.2% Operating Expenses and Dep. -406 -432 -6.1% -407 -0.5% -813 -897 -9.4% Gross Operating Income 182 197 -7.8% 218 -16.5% 399 343 +16.5% Cost of Risk -8 -16
Slide 61: IFS – BancWest: Volumes
IFS – BancWest Volumes Outstandings %Var/2Q20 %Var/1Q21 Outstandings %Var/1H20 at constant at constant at constant scope and scope and scope and 2Q21 historical historical 1H21 historical exchange exchange exchange Average outstandings (€bn) rates rates rates n.s.n s n.s.n s n.s.n s n.s.n s n.s.n s
Slide 62: IFS – Insurance and WAM: Activity
IFS – Insurance and WAM1 Activity %Var/ %Var/ 30.06.21 30.06.20 31.03.21 €bn 30.06.20 31.03.21 Assets under management (€bn) 1,202.7 1,085.1 +10.8% 1,171.9 +2.6% Asset Management 489 428 +14.4% 474 +3.3% Wealth Management 410 377 +8.7% 402 +2.1% Real Estate Services 29 29 +1.2% 28 +1.2% Insurance 27
Slide 63: IFS – Insurance and WAM: Asset breakdown
IFS – Insurance and WAM1 Insurance and WAM Asset management Breakdown of assets by client Breakdown in managed assets as at 30.06.21 segment €1,085bn €1,203bn Alternative and others 5% 33% Corporates & 28% Institutionals Bonds 30% Diversified 28% 52% 52% Individuals ▶ 56% Money-market External 20% E
Slide 64: 1H21 – IFS – Insurance
1H21 – IFS – Insurance 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 767 828 -7.4% 792 -3.1% 1,558 1,407 +10.8% Operating Expenses and Dep. -367 -339 +8.4% -383 -4.0% -750 -732 +2.5% Gross Operating Income 399 489 -18.3% 409 -2.3% 808 675 +19.7% Cost of Risk -1 -
Slide 65: 1H21 – IFS – Wealth and Asset Management
1H21 – IFS – Wealth and Asset Management 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 830 678 +22.4% 784 +5.9% 1,614 1,422 +13.5% Operating Expenses and Dep. -624 -601 +3.8% -612 +1.8% -1,236 -1,243 -0.6% Gross Operating Income 206 77 n.s. 172 +20.3% 378 178 n.s
Slide 66: 1H21 – Corporate and Institutional Banking
1H21 – Corporate and Institutional Banking 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 2Q20 1Q21 1H20 Revenues 3,714 4,123 -9.9% 3,670 +1.2% 7,384 7,076 +4.4% Operating Expenses and Dep. -2,042 -2,220 -8.0% -2,767 -26.2% -4,809 -4,612 +4.3% Gross Operating Income 1,672 1,904 -12.2% 903 +85.1% 2
Slide 67: Corporate Banking – 1H21
Corporate and Institutional Banking Corporate Banking – 1H21 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 1,238 1,258 -1.6% 1,243 -0.3% 2,481 2,328 +6.6% Operating Expenses and Dep. -589 -632 -6.7% -755 -21.9% -1,344 -1,380 -2.6% Gross Operating Income 649 627 +
Slide 68: Global Markets – 1H21
Corporate and Institutional Banking Global Markets – 1H21 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 1,904 2,304 -17.4% 1,846 +3.1% 3,750 3,610 +3.9% incl. FICC 1,148 2,013 -43.0% 1,149 -0.1% 2,296 3,406 -32.6% incl. Equity & Prime Services 757 290 n.s. 697 +8
Slide 69: Market risks – 2Q21
Corporate and Institutional Banking Market risks – 2Q21 Average 99% 1-day interval VaR (Value at Risk) €m Commodities Forex Equities Interest Rates Credit Nettings 54 55 43 43 43 5 46 45 10 37 35 5 9 6 6 34 15 33 6 28 31 31 12 8 27 25 27 25 26 13 14 20 6 7 5 22 22 24 23 23 24 13 9 19 24 4 20 4 33 15
Slide 70: Securities Services – 1H21
Corporate and Institutional Banking Securities Services – 1H21 2Q21 2Q20 2Q21 / 1Q21 2Q21 / 1H21 1H20 1H21 / €m 0 0 2Q20 0 1Q21 0 0 1H20 Revenues 571 561 +1.9% 581 -1.7% 1,153 1,138 +1.3% Operating Expenses and Dep. -454 -451 +0.6% -485 -6.5% -939 -933 +0.6% Gross Operating Income 117 109 +7.3% 96 +
Slide 71: 2Q21 – Corporate centre
2Q21 – Corporate centre €m 2Q21 2Q20 1Q21 1H21 1H20 Revenues 162 -78 314 477 48 Operating Expenses and Dep. -222 -329 -331 -553 -442 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -71 -75 -77 -148 -154 Gross Operating Income -59 -406 -17 -76 -394 Cost of Risk -64 -33 -55
Slide 72: 1H21 – Corporate centre
1H21 – Corporate centre Revenues • Very strong contribution from Principal Investments, rebounding from its low level in 1H20 • Capital gain realised on the sale of 4.99% in SBI Life (+€58m in 1Q21) Operating expenses • Increase in taxes subject to IFRIC 211 in 1H21 • Restructuring costs2: -€79m (-€
Slide 73: Appendices
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H21 DETAILED RESULTS APPENDICES
Slide 74: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 30-Jun-21 30-Jun-20 Number of Shares (end of period) 1,250 1,250 Number of Shares excluding Treasury Shares (end of period) 1,249 1,248 Average number of Shares outstanding excluding Treasury Shares 1,248 1,248 Earnings per Share i
Slide 75: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 30-Jun-21 31-Dec-20 30-Jun-20 Total Capital Ratio (a) 16.5% 16.4% 15.9% Tier 1 Ratio (a) 14.2% 14.2% 13.9% Common equity Tier 1 ratio (a) 12.9% 12.8% 12.4% (a) CRD4, on risk-w eighted assets of €705bn as at 30.06.21, €696bn as at 31.12.20 and €6
Slide 76: Return on Equity and Permanent Shareholders’ Equity
Return on Equity and Permanent Shareholders’ Equity Calculation of Return on Equity in millions of euros 30-Jun-21 30-Jun-20 Net income Group share 4,679 3,581 (1) Ex ceptional items (after tax ) (a) 399 146 (2) of which exceptonal items (not annualised) 504 243 (3) of which IT reinforcement and res
Slide 77: A Solid Financial Structure
A Solid Financial Structure Doubtful loans vs. gross outstandings 30-Jun-21 30-Jun-20 Doubtful loans (a) / Loans (b) 2.1% 2.2% (a) Impaired loans (stage 3) to customers and credit institutions, not netted of guarantees, including on-balance sheet and off-balance sheet and debt securities measured at
Slide 78: Common Equity Tier 1 ratio
Common Equity Tier 1 ratio Basel 3 Common Equity Tier 1 ratio1 (Accounting capital to prudential capital reconciliation) €bn 30-Jun-21 31-Mar-21 Consolidated Equity 120.5 118.4 Undated super subordinated notes -9.2 -9.2 2 -1.9 -3.3 2020 net income distribution project 2021 dividend distribution proj
Slide 79: Medium/Long Term Wholesale Funding
Medium/Long Term Wholesale Funding Continued presence in debt markets 2021 MLT wholesale funding programme1: €36bn 2021 MLT regulatory issuance plan1: ~ €17bn • Capital instruments: €4.5bn; €3.5bn already issued2 • €1bn, priced on 12.01.21, 9NC87, at mid-swap€+83 bps • Tier 2: $1.25bn priced on 19.0
Slide 80: TLAC ratio above the requirement
TLAC ratio: ~560bps above the requirement without calling on the Preferred Senior debt allowance 25.6% TLAC requirement as at 30.06.21: 20.03% of RWA • Including capital conservation buffer, G-SIB buffer and 20.03% BNP Paribas TLAC ratio countercyclical capital buffer (3 bps as of 2Q21) as at 30.06.
Slide 81: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements as at 30.06.211 “Pillar 2 Requirement” (public), applicable to CET1, Tier 1 and Countercyclical buffer P2R Total Capital ratios G-SIB buffer Pillar 1 “Pillar 2 Guidance” (not public), not applicable for distribu
Slide 82: Cost of risk by Business Unit (1/2)
Cost of risk by Business Unit (1/2) Cost of risk / customer loans outstanding at the beginning of the period (in annualised bp) 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 1 Domestic Markets Loan outstandings as of the beg. of the quarter (€bn) 401.3 414.0 422.1 427.2 435.5 439.0 431.0 445.0 444.2
Slide 83: Cost of risk by Business Unit (2/2)
Cost of risk by Business Unit (2/2) Cost of risk / customer loans outstanding at the beginning of the period (in annualised bp) 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 1 BancWest Loan outstandings as of the beg. of the quarter (€bn) 51.3 55.1 55.4 58.1 56.8 52.8 55.8 49.8 51.1 Cost of risk (€m)
Slide 84: Risk-Weighted Assets
Risk-Weighted Assets Basel 3 Risk-Weighted Assets1: €705bn as at 30.06.21 (€703bn as at 31.03.21) The +€2bn change is mainly explained by: • +€15bn increase in credit risk • -€8bn decrease in operational risk • -€5bn decrease in market risk €bn 30.06.21 31.03.21 Credit Risk 546 531 Operational Risk
Slide 85: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as at 30.06.21 Other Activities: 5% FRB: 13% Global Markets & Securities Services: 14% Retail Banking BNL bc: 7% CIB: 33% & Services: 62% BRB: 7% Corporate Banking: 19% Other Domestic Markets2: 6% Personal Finance: 10% Insura
Slide 86: Breakdown of Commitments by Industry
Breakdown of Commitments by Industry (Corporate Asset Class) Mining, metals & materials (including cement, packages, etc.) 4% IT & electronics 3% Wholesale & trading 6% Real Estate 11% B to B Services 9% Finance 6% Communication Services 3% Insurance 2% Transport & logistics 10% Equipment excluding
Slide 87: Breakdown of Commitments by Region
Breakdown of Commitments by Region Rest of the World 5% Asia Pacific 7% North America 12% France 31% Other European countries 20% Italy 9% Belgium & Luxembourg 16% Total gross commitments on and off balance sheet, unweighted = €1,884bn1 as at 30.06.21 1. Excluding Equity credit exposure class Second