Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q2 2022 Earnings Presentation
95 slides from Bnp Paribas S.a. Class A's earnings presentation, Jul 29, 2022
Slide 1: Second Quarter 2022 Results
SECOND QUARTER 2022 RESULTS 29 July 2022
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: 2Q22: Strong growth in results and positive jaws effect
2Q22: Strong growth in results and positive jaws effect A solid trajectory Growth in revenues, positive jaws effect and prudent risk profile Strong growth in revenues, supported by all divisions Revenues • Very strong increase in Corporate & Institutional Banking (+10.6%) +8.5% vs. 2Q21 • Very solid
Slide 4: A solid, diversified and integrated model generating growth
A solid, diversified and integrated model generating growth higher than its underlying economy Strong growth in results Balanced distribution of pre-tax income €bn CAGR: +8.8% 2Q22 pre-tax income +9.1% of divisions2 Commercial & EPS1 1H22 29% Personal Banking 3.2 CIB 36% 2.9 €4.04 2.5 2.3 +13.5% vs.
Slide 5: A proven growth potential
A proven growth potential Business momentum driven by the diversification of business lines, favourable positioning, and a complete offering #1 Eurozone Private Bank1 Loans Deposits #1 in Corporate Banking in Europe1 €852bn €843bn 3rd CIB in EMEA1, 1st European CIB +8.1% vs. 2Q21 +7.3% vs. 2Q21 Lead
Slide 6: Long-term, prudent and proactive risk management
Long-term, prudent and proactive risk management constantly improving Prudent approach: CoR/GOI ratio among the Constant improvement in cost of risk best in Europe1 2008-2021 average In bps / customer loans outstanding 73% 63% 66 58 59 57 54 46% 41% 42% 44% 44% 46 39 35 39 ~40 31% 34 2012 2013 2014
Slide 7: Distribution policy
Distribution policy A 10 pts increase in the pay-out ratio with the « GTS 2025 » strategic plan Starting from the year 2021 An ordinary pay-out ratio of 60%1 • o/w pay-out ratio in the form of a cash dividend: 50% to 60% • o/w pay-out ratio in the form of share buybacks: 0% to 10% + Sale of Bank of
Slide 8: Group Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H22 & 2Q22 DETAILED RESULTS APPENDICES
Slide 9: 2Q22 – Main exceptional items
2Q22 – Main exceptional items Negative total exceptional items this quarter Exceptional items 2Q22 2Q21 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€28m -€24m • IT reinforcement costs (Corporate Centre) -€82m -€47m Total exceptional operating expenses -€110m -
Slide 10: 2Q22 – Consolidated Group
2Q22 – Consolidated Group Solid growth and positive jaws effect 2Q22 vs. 2Q22 vs. 2Q21 2Q22 2Q21 At constant scope 2Q21 & exchange rates Revenues €12,781m €11,776m +8.5% +6.5% Operating expenses -€7,719m -€7,172m +7.6% +4.9% Gross operating income €5,062m €4,604m +9.9% +8.9% Cost of risk -€789m -€81
Slide 11: 2Q22 – Revenues
2Q22 – Revenues Very solid growth driven by a diversified model CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services +10.6% +5.6% +11.1% +9.8% +2.2% +1.5% +9.7% +7.2% at constant scope & at constant scope & at constant sc
Slide 12: 2Q22 – Operating expenses
2Q22 – Operating expenses Positive jaws effect in operating divisions (+0.9 pt) CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services +13.3% +5.0% +6.5% +6.1% +6.7% +5.6% +8.6% +5.7% at constant scope & at constant scope &
Slide 13: Cost of risk (1/3)
Cost of risk (1/3) Cost of risk / Customer loans outstanding at the beginning of the period (in annualised bps) Group • Cost of risk: €789m (+€333m vs. 1Q22; -€24m vs. 2Q21) • Cost of risk at a low level • Provisions on non-performing loans (stages 3) low - 66 Provisions on performing loans1 in 2Q22
Slide 14: Cost of risk (2/3)
Cost of risk (2/3) Cost of risk / Customer loans outstanding at the beginning of the period (in annualised bps) CPBF1 • Cost of risk: €64m (-€29m vs. 1Q22; -€37m vs. 2Q21) • Cost of risk at a very low level 17 25 21 24 19 21 19 17 12 2019 2020 2021 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 BNL bc1 • Cost of ris
Slide 15: Cost of risk (3/3)
Cost of risk (3/3) Cost of risk / Customer loans outstanding at the beginning of the period (in annualised bps) Personal Finance • Cost of risk: €309m (-€6m vs. 1Q22; -€35m vs. 2Q21) • Cost of risk at a low level 212 • Provisions on performing loans2 due mainly to the expected 145 141 138 147 130 15
Slide 16: A very solid financial structure
A very solid financial structure CET1 ratio: 12.2%1 as at 30.06.22 CET1 Ratio • 2Q22 results, after taking into account a 60% pay-out ratio net of organic growth in risk-weighted assets: +0 bp 12.4% 12.2% • Impact on Other Comprehensive Income (OCI) of market prices as at 30.06.22 and effect of the
Slide 17: Continuous and strong value creation throughout the cycle
Continuous and strong value creation throughout the cycle Steady increase in tangible equity per share: €78.0 +€1.7 (+2.2%) vs. 30.06.21 € 88.0 87.6 82.3 2008-2Q22 CAGR1: 79.0 9.4 9.7 73.9 75.1 74.7 9.1 +4.9% 70.9 9.3 78.7 66.6 78.0 63.1 65.0 10.6 10.0 9.9 73.2 10.7 69.7 55.6 57.1 10.9 65.1 64.8 51.
Slide 18: An ambitious policy of engaging with society
An ambitious policy of engaging with society Engaging with clients to support them in their transition A Group-wide approach organised around three major objectives, reaffirmed with the GTS 2025 plan Engaging with clients in the Strengthening steering Aligning our loan portfolios transition towards
Slide 19: Mobilising the specific model around priority areas
An ambitious policy of engaging with society Mobilising the specific model around priority areas Transition A new lease with a purchase option offering by BNP Paribas Personal Finance to provide lower-income towards carbon households with access to a more sustainable car (Crit’Air 0 or 1 vehicle)
Slide 20: 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 21: Division Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H22 & 2Q22 DETAILED RESULTS APPENDICES
Slide 22: Corporate & Institutional Banking – 2Q22
Corporate & Institutional Banking – 2Q22 Very good results sustained by the expanded set-up Good business drive, leveraging a diversified and integrated Growth in CIB revenues model… (1Q19-2Q22) • Financing: good performance amid decreasing primary markets (syndicated €bn 2020 2021 loans, bonds and
Slide 23: CIB – Global Banking – 2Q22
CIB – Global Banking – 2Q22 Good business drive Good level of activity in an unfavourable context Revenues sustained at a high • Financing raised for clients worldwide on the syndicated loan, bond level in a receding market and equity markets down by 34%1 vs. 2Q21, with a rebound in €m syndicated lo
Slide 24: CIB – Global Markets – 2Q22
CIB – Global Markets – 2Q22 Strong increase in revenues sustained by the new dimension to the set-up Very robust client activity on the whole Strong increase in revenues • Fixed income, currencies & commodities: continued very strong client +15.3% demand, driven in particular by reallocation and hed
Slide 25: CIB – Securities Services – 2Q22
CIB – Securities Services – 2Q22 Very strong increase in revenues Very good business drive Transaction volumes • Sustained sales & marketing development, in particular in the target sector of private capital Settlement & delivery transactions in millions • Very significant increase in transaction vo
Slide 26: Commercial, Personal Banking & Services – 2Q22
Commercial, Personal Banking & Services – 2Q22 Strong growth in result and very positive jaws effect Very good performance in Commercial & Personal Banking Loans • Sustained rise in pre-tax income of Commercial & Personal Banking in the +7.0% Euro zone (+25.5%1 vs. 2Q21): higher net interest income
Slide 27: CPBS – Commercial & Personal Banking in France – 2Q22
CPBS – Commercial & Personal Banking in France – 2Q22 Very strong increase in results – Growth in all client segments Good business drive Net interest income • Loans: +4.5% vs. 2Q21, good increase in investment loans to corporates, as €m well as mortgage loans and consumer loans • Deposits: +5.7% vs
Slide 28: CPBS – BNL banca commerciale – 2Q22
CPBS – BNL banca commerciale – 2Q22 Strong increase in results and very positive jaws effect Growth in business activity Loans (excluding non • Loans: +2.6% vs. 2Q21, +5.0% rise on the perimeter excluding non- performing loans) performing loans, good increase in mortgage and corporate loans +5.0% •
Slide 29: CPBS – Commercial & Personal Banking in Belgium – 2Q22
CPBS – Commercial & Personal Banking in Belgium – 2Q22 A very steep rise in results Good business drive Loans1 • Loans1: +15.4% vs. 2Q21 (+8.1% at constant scope and exchange rates2); €bn +15.4% strong growth in corporate loans and increase in individual loans, mortgage loans in particular • Deposit
Slide 30: CPBS – Europe Mediterranean – 2Q22
CPBS – Europe Mediterranean – 2Q22 Very good commercial momentum and strong increase in results Significant increase in business activity Loans1 • Loans: +21.8%1 vs. 2Q21, continued strong increase in volumes in Poland +21.8%1 and Turkey across all customer segments, with a more marked increase in t
Slide 31: CPBS – BancWest – 2Q22
CPBS – BancWest – 2Q22 Sustained business activity Continued good business drive Loan production • Very good loan production (+7.1%1 vs. 2Q21): strong increase in +7.1%1 corporate loans (+20.7%1) and high level of mortgage loan production • Loans: -0.7%2 vs. 2Q21, decrease due to the end of Paycheck
Slide 32: CPBS – Specialised Businesses – Personal Finance – 2Q22
CPBS – Specialised Businesses – Personal Finance – 2Q22 Increase in results, positive jaws effect, and low cost of risk Growth in loans outstanding and good level of production Growth in end-of-period loans • Loans outstanding: +2.7%1 vs. 2Q21 and at a higher level than in 2019, outstanding €m conso
Slide 33: CPBS – Arval & Leasing Solutions – 2Q22
CPBS – Specialised Businesses – Arval & Leasing Solutions – 2Q22 Very strong performance and positive jaws effect Arval Arval: a balanced • Good organic growth in the financed fleet (+5.9%1 vs. 2Q21) and continued distribution in revenues very high used car prices • Signing of an agreement with BCR
Slide 34: CPBS – Specialised Businesses – 2Q22
CPBS – Specialised Businesses – 2Q22 New Digital Businesses (Nickel, Floa, Lyf) and Personal Investors , a new-generation payment offering Nickel: number of accounts • Launch of the offering in Belgium and ongoing development in other countries, opened2 with a high pace of account openings (almost 5
Slide 35: Investment & Protection Services – 2Q22
Investment & Protection Services – 2Q22 Growth of revenues and results in an unfavourable environment Good business drive Assets under management1 • Good resiliency in net asset inflows (+€9.0bn in 2Q22): good net asset €bn inflows in Insurance, very strong net asset inflows in Wealth Management 1,2
Slide 36: IPS – Asset inflows and AuM – 1H22
IPS – Asset inflows and AuM – 1H22 Unfavourable market trends, good resilience in net asset inflows Assets under management: €1,198bn as at 30.06.22 Change in assets under management1 • -0.6% vs. 30.06.21 €bn Performance • Performance effect very unfavourable due to market effect trends: -€117.7bn +
Slide 37: IPS – Insurance – 2Q22
IPS – Insurance – 2Q22 Good business drive Continued business drive Gross asset inflows in Savings • Good performance in Savings in both France and internationally, with €bn +6.9% gross asset inflows up (+6.9% vs. 1H21); unit-linked policies accounting for the vast majority of net asset inflows • In
Slide 38: IPS – Wealth & Asset Management – 2Q22
IPS – Wealth & Asset Management1 – 2Q22 Good resilience of business activity on the whole Wealth Management Acknowledged leadership • Very good net asset inflows, particularly in Germany and France and increase in transaction fees, especially in Asia Outstanding Private Bank – Western Europe3 • Inte
Slide 39: Conclusion
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H22 & 2Q22 DETAILED RESULTS APPENDICES
Slide 40: Conclusion
Conclusion A solid trajectory Growth in revenues, positive jaws effect, and a prudent risk profile Strength of BNP Paribas’ distinctive model Revenues: €12,781m +8.5% vs. 2Q21 Positive jaws effect (+0.9 pt) Low cost of risk (33 bps)1 Strong growth in results Net income2: €3,177m (+9.1 % vs. 2Q21) (+
Slide 41: GTS 2025 strategic plan
GTS 2025 strategic plan Reminder: 2022-2025 Group objectives1 2024: 12.9% Net income2: Basel 3 (CRR2) fully loaded CAGR >+7% CET1 2025: 12.0% Basel 3 finalised (CRR3) fully loaded Revenues CAGR Average jaws Cost of risk ROTE 2024: ~11% >+3.5% effect: >+2.0 pts3, ~40 bps 2025: >11% positive every yea
Slide 42: 1H22 & 2Q22 Detailed Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H22 & 2Q22 DETAILED RESULTS APPENDICES
Slide 43: Main exceptional items – 1H22
Main exceptional items – 1H22 Exceptional items 1H22 1H21 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€54m -€82m • IT reinforcement costs (Corporate Centre) -€132m -€66m Total exceptional operating expenses -€185m -€148m Other non-operating items • Badwill (bp
Slide 44: 1H22 – Consolidated Group
1H22 – Consolidated Groupe Robust results, a positive jaws effect at constant scope & exchange rates 1H22 vs. 1H21 1H22 1H22 1H21 vs. 1H21 At constant scope & exchange rates Revenues €25,999m €23,605m +10.1% +8.5% Operating expenses -€17,372m -€15,769m +10.2% +7.6% Gross operating income €8,627m €7,
Slide 45: 1H22 – Revenues
1H22 – Revenues Very solid growth driven by a diversified model CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services +19.3% +14.5% +9.8% +8.9% +1.0% +1.2% +11.6% +9.7% at constant scope & at constant scope & at constant s
Slide 46: 1H22 – Operating expenses
1H22 – Operating expenses Positive jaws effect in operating divisions (+2.6 pts) CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services +16.2% +9.9% +5.8% +5.3% +5.1% +4.7% +9.0% +6.7% at constant scope & at constant scope
Slide 47: 1H22 & 2Q22 – BNP Paribas Group
1H22 & 2Q22 – BNP Paribas Group 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Group Revenues 12,781 11,776 +8.5% 13,218 -3.3% 25,999 23,605 +10.1% incl. Interest Income 5,695 5,370 6.1% 5,734 -0.7% 11,429 10,822 5.6% incl. Commissions 2,615 2,640 -0.9% 2,637 -0.8% 5,252 5,195 1.1%
Slide 48: Corporate and Institutional Banking – 1H22
Corporate and Institutional Banking – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Corporate and Institutional Banking n.s. n.s. n.s. Revenues 4,106 3,714 +10.6% 4,702 -12.7% 8,809 7,384 +19.3% Operating Expenses and Dep. -2,314 -2,042 +13.3% -3,353 -31.0% -5,668 -4,876 +16.2
Slide 49: CIB Global Banking – 1H22
Corporate and Institutional Banking Global Banking – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Global Banking n.s. n.s. n.s. Revenues 1,248 1,238 +0.8% 1,268 -1.5% 2,516 2,481 +1.4% Operating Expenses and Dep. -657 -589 +11.5% -815 -19.3% -1,472 -1,357 +8.5% Gross Operatin
Slide 50: CIB Global Markets – 1H22
Corporate and Institutional Banking Global Markets – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Global Markets n.s. n.s. n.s. Revenues 2,196 1,904 +15.3% 2,821 -22.2% 5,017 3,750 +33.8% incl. FICC 1,317 1,148 +14.8% 1,700 -22.5% 3,017 2,296 +31.4% incl. Equity & Prime Servi
Slide 51: CIB Market risks – 2Q22
Corporate and Institutional Banking Market risks – 2Q22 Average 99% 1-day interval VaR (Value at Risk) €m Average VaR at a low level this quarter despite high volatility1 • At a low level, almost unchanged vs. 1Q22 due to prudent management. Overall level driven mainly by commodities, particularly t
Slide 52: CIB Securities Services – 1H22
Corporate and Institutional Banking Securities Services – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Securities Services n.s. n.s. n.s. Revenues 663 571 +16.0% 613 +8.0% 1,276 1,153 +10.7% Operating Expenses and Dep. -499 -454 +10.0% -538 -7.3% -1,037 -957 +8.4% Gross Opera
Slide 53: Commercial, Personal Banking & Services – 1H22
Commercial, Personal Banking & Services – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 Commercial, Personal Banking & Services (including 100% of Private Banking in France, Belgium, Italy, Luxembourg, Poland, Turkey, the United States and Germany) Revenues 7,184 6,467 +11.1
Slide 54: CPBS – Commercial & Personal Banking in France – 1H22
CPBS – Commercial & Personal Banking in France – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 Commercial & Personal Banking in France (including 100% of Private Banking in France) Revenues 1,728 1,607 +7.6% 1,613 +7.1% 3,342 3,088 +8.2% incl. net interest income 919 860 6.9
Slide 55: CPBS – Commercial & Personal Banking in France Volumes
CPBS – Commercial & Personal Banking in France Volumes 2Q22 %Var/2Q21 %Var/1Q22 1H22 %Var/1H21 Average outstandings (€bn) LOANS 207.7 +4.5% +2.4% 205.3 +3.5% Individual Customers 110.1 +5.9% +1.7% 109.2 +5.9% Incl. Mortgages 98.6 +5.9% +1.4% 97.9 +6.1% Incl. Consumer Lending 11.5 +5.9% +3.6% 11.3 +4
Slide 56: CPBS – BNL banca commerciale – 1H22
CPBS – BNL banca commerciale – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 BNL bc (including 100% of Private Banking in Italy) Revenues 671 669 +0.3% 654 +2.6% 1,326 1,345 -1.4% incl. net interest income 387 387 0.1% 380 1.8% 768 784 -2.1% incl. fees 284 283 0.6% 274 3.7%
Slide 57: CPBS – BNL banca commerciale Volumes
CPBS – BNL banca commerciale Volumes 2Q22 1Q22 %Var/2Q21 %Var/1Q22 1H22 %Var/1H21 Average outstandings (€bn) LOANS 78.2 78.6 +2.6% -0.4% 78.4 +2.4% Individual Customers 38.3 37.8 +0.9% +1.2% 38.1 +1.0% Incl. Mortgages 27.2 26.7 +4.1% +2.0% 26.9 +3.8% Incl. Consumer Lending 5.0 4.9 +1.6% +2.2% 4.9 +1
Slide 58: CPBS – Commercial & Personal Banking in Belgium – 1H22
CPBS – Commercial & Personal Banking in Belgium – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 Commercial & Personal Banking in Belgium (including 100% of Private Banking in Belgium) Revenues 965 864 +11.8% 935 +3.3% 1,900 1,722 +10.3% incl. net interest income 677 589 14.9
Slide 59: CPBS – Commercial & Personal Banking in Belgium Volumes
CPBS – Commercial & Personal Banking in Belgium Volumes 2Q22 1Q22 %Var/2Q21 %Var/1Q22 1H22 %Var/1H21 Average outstandings (€bn) LOANS 134.4 130.5 +15.4% +3.0% 132.5 +14.4% Individual Customers 86.6 85.2 +15.9% +1.6% 85.9 +15.6% Incl. Mortgages 64.2 64.1 +17.9% +0.3% 64.1 +18.1% Incl. Consumer Lendin
Slide 60: CPBS – Commercial & Personal Banking in Luxembourg – 1H22
CPBS – Commercial & Personal Banking in Luxembourg – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 Commercial & Personal Banking in Luxembourg (including 100% of Private Banking in Luxembourg) Revenues 114 106 +7.1% 115 -1.1% 228 207 +10.5% incl. net interest income 90 85 5.
Slide 61: CPBS – Luxembourg – 1H22 Volumes
CPBS – Commercial & Personal Banking in Luxembourg – 1H22 Volumes Average outstandings (€bn) 2Q22 %Var/2Q21 %Var/1Q22 1H22 %Var/1H21 LOANS 12.9 +6.6% +1.5% 12.8 +6.9% Individual Customers 8.1 +4.0% +0.9% 8.0 +4.3% Corporates and Local Governments 4.8 +11.3% +2.7% 4.8 +11.7% DEPOSITS AND SAVINGS 30.4
Slide 62: CPBS – Europe-Mediterranean – 1H22
CPBS – Europe-Mediterranean – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 Europe-Mediterranean (including 100% of Private Banking in Poland and Turkey) Revenues 566 464 +21.9% 639 -11.4% 1,205 981 +22.9% incl. net interest income 455 349 30.4% 518 -12.2% 974 748 30.1% incl
Slide 63: CPBS – Europe-Mediterranean Volumes and risks
CPBS – Europe-Mediterranean Volumes and risks %Var/2Q21 %Var/1Q22 %Var/1H21 at constant at constant at constant scope and scope and scope and 2Q22 historical historical 1H22 historical exchange exchange exchange Average outstandings (€bn) n.s. n.s.rates n.s. n.s.rates n.s. n.s.rates n.s. n.s. n.s. n
Slide 64: Hyperinflationary environment in Turkey (1/2)
Hyperinflationary environment in Turkey (1/2) Application in Turkey of IAS 29 “Financial Reporting in Hyperinflationary Economies”, effective 01.01.2022; 1H22 impacts recognised in 2Q22 • Context: cumulative three-year inflation greater than 100% • Principles of the standard: to ensure comparability
Slide 65: Hyperinflationary environment in Turkey (2/2)
Hyperinflationary environment in Turkey (2/2) Main effects of the application of IAS 29 and taking the efficiency of the hedging into account • Equity: positive cumulative impact as of 30.06.22 (+€517m) 1. Revaluation of non-monetary assets: application to their book value of the impact of changes i
Slide 66: CPBS – BancWest – 1H22
CPBS – BancWest – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 1 BancWest (including 100% of Private Banking in United States) Revenues 657 587 +11.9% 619 +6.2% 1,275 1,212 +5.2% incl. net interest income 542 493 10.0% 519 4.6% 1,061 1,031 2.9% incl. fees 114 94 21.6% 100 14.
Slide 67: CPBS – BancWest Volumes
CPBS - BancWest Volumes %Var/2Q21 %Var/1Q22 %Var/1H21 at constant at constant at constant scope and scope and scope and 2Q22 historical historical 1H22 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. n.s. n.s. LOANS
Slide 68: CPBS – Personal Finance – 1H22
CPBS – Specialised Businesses – Personal Finance – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Personal Finance Revenues 1,371 1,319 +3.9% 1,388 -1.2% 2,759 2,651 +4.1% Operating Expenses and Dep. -718 -700 +2.6% -776 -7.4% -1,494 -1,451 +3.0% Gross Operating Income 653 619
Slide 69: CPBS – Personal Finance Volumes and risks
CPBS – Specialised Businesses – Personal Finance Volumes and risks %Var/2Q21 %Var/1Q22 %Var/1H21 at constant at constant at constant scope and scope and scope and 2Q22 historical historical 1H22 historical exchange exchange exchange Average outstandings (€bn) rates rates rates n.s. n.s. n.s. n.s. n.
Slide 70: CPBS – Arval & Leasing Solutions – 1H22
CPBS – Specialised Businesses – 1H22 Arval & Leasing Solutions 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Arval & Leasing Solutions Revenues 895 670 +33.6% 811 +10.3% 1,705 1,308 +30.4% Operating Expenses and Dep. -341 -319 +6.9% -366 -6.8% -707 -657 +7.7% Gross Operating Income
Slide 71: CPBS – Arval & Leasing Solutions
CPBS – Specialised Businesses Arval & Leasing Solutions Arval %Var/2Q21 %Var/1Q22 %Var/1H21 at constant at constant at constant 2Q22 1H22 scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rates Consolidated Outstandings 2
Slide 72: CPBS – New Digital Businesses and Personal Investors – 1H22
CPBS – Specialised Businesses – 1H22 New Digital Businesses and Personal Investors 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 New Digital Businesses & Personal Investors (including 100% of Private Banking in Germany)1 Revenues 217 180 +20.0% 205 +5.5% 422 383 +10.1% Operating Ex
Slide 73: CPBS – New Digital Businesses and Personal Investors
CPBS – Specialised Businesses – 1H22 New Digital Businesses and Personal Investors Nickel • 2.7 million accounts opened1 as of the end of June 2022 (+26.5% vs. 30.06.21) Floa • Consolidation of 50% of Floa, effective 01.02.22 • 4.0 million customers as of the end of June 2022 (+27.4% vs. 30.06.21) P
Slide 74: IPS – Investment & Protection Services – 1H22
IPS – Investment & Protection Services – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Investment & Protection Services n.s. Revenues 1,723 1,686 +2.2% 1,650 +4.5% 3,373 3,338 +1.0% Operating Expenses and Dep. -1,068 -1,001 +6.7% -1,051 +1.7% -2,119 -2,016 +5.1% Gross Operatin
Slide 75: IPS – Insurance – 1H22
IPS – Insurance – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Insurance n.s. n.s. n.s. Revenues 787 767 +2.7% 721 +9.1% 1,508 1,558 -3.2% Operating Expenses and Dep. -396 -367 +7.8% -384 +3.1% -780 -750 +4.0% Gross Operating Income 391 399 -2.1% 337 +16.0% 728 808 -9.9% Cost
Slide 76: IPS – Wealth and Asset Management – 1H22
IPS – Wealth and Asset Management – 1H22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Wealth and Asset Management Revenues 936 919 +1.9% 929 +0.8% 1,865 1,780 +4.8% Operating Expenses and Dep. -672 -634 +6.0% -667 +0.9% -1,339 -1,266 +5.7% Gross Operating Income 264 285 -7.4% 262
Slide 77: IPS – Insurance and WAM Business activity
IPS – Insurance and WAM1 Business activity %Var/ %Var/ 30.06.22 30.06.21 31.03.22 €bn 30.06.21 31.03.22 Assets under management (€bn) 1,197.6 1,204.6 -0.6% 1,244.1 -3.7% Insurance 255.2 274.4 -7.0% 270.4 -5.6% Wealth Management 411.4 411.4 -0.0% 420.6 -2.2% AM+RE+PI 531.0 518.8 +2.4% 553.2 -4.0% Ass
Slide 78: IPS – Insurance and WAM
IPS – Insurance and WAM1 Insurance and WAM Asset Management Breakdown in assets by client segment Breakdown in AuM as at 30.06.22 €1,205bn €1,198bn Alternatives and others 8% 28% Corporates & 28% Bonds Institutionals 27% Diversified 27% 52% 52% Individuals Money-market 56% 17% 20% External 20% Equi
Slide 79: Corporate centre – 2Q22
Corporate centre – 2Q22 2Q22 2Q21 2Q22 / 1Q22 2Q22 / 1H22 1H21 1H22 / €m 2Q21 1Q22 1H21 Corporate Center n.s. n.s. n.s. Revenues -50 79 n.s. 66 n.s. 16 322 -95.1% Operating Expenses and Dep. -168 -217 -22.6% -511 -67.2% -679 -461 +47.4% Incl. Restructuring, IT Reinforcement and Adaptation Costs -110
Slide 80: Corporate centre – 1H22
Corporate centre – 1H22 Reminder: Scope excluding Principal Investments, which is included in IPS Revenues • Revaluation of proprietary credit risk included in derivatives (DVA) (+€108m), offset by a negative non- recurring item in 1Q22 • Reminder from 1H21: +€58m capital gain on the sale of 4.99% i
Slide 81: Appendices
GROUP RESULTS DIVISION RESULTS CONCLUSION 1H22 & 2Q22 DETAILED RESULTS APPENDICES
Slide 82: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 30-Jun-22 30-Jun-21 Number of Shares (end of period) 1,234 1,250 Number of Shares excluding Treasury Shares (end of period) 1,232 1,249 Average number of Shares outstanding excluding Treasury Shares 1,233 1,248 Reminder: cancellati
Slide 83: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 30-Jun-22 31-Dec-21 30-Jun-21 Total Capital Ratio (a) 15.7% 16.4% 16.5% Tier 1 Ratio (a) 13.2% 14.0% 14.2% Common equity Tier 1 ratio (a) 12.2% 12.9% 12.9% (a) CRD4, on risk-weighted assets of €756bn as at 30.06.22, €714bn as at 31.12.21 and €70
Slide 84: 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-22 30-Jun-21 Net income Group share 5,285 4,679 (1) Exceptional items (after tax) (a) -124 399 (2) of which exceptional items (not annualised) 11 504 (3) of which IT reinforcement and rest
Slide 85: A Solid Financial Structure
A Solid Financial Structure Doubtful loans/gross outstandings 30-Jun-22 30-Jun-21 Doubtful loans (a) / Loans (b) 1.8% 2.1% (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 amo
Slide 86: 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-22 31-Mar-22 Consolidated Equity 120.5 123.6 Undated super subordinated notes -7.9 -8.6 2021 net income distribution project 0.0 -4.5 2022 net income distribution proje
Slide 87: Medium/Long Term Regulatory Funding
Medium/Long Term Regulatory Funding Continued presence in debt markets 2022 MLT regulatory issuance plan1: ~€ 20.5bn • Capital instruments: ~€5.5bn; (including €2-3bn AT1); €3.5bn • Non Preferred Senior debt: ~ €15bn; €10.3bn already issued2 already issued2 of which the following main benchmark trad
Slide 88: TLAC ratio: ~390bps above the requirement
TLAC ratio: ~390bps above the requirement without calling on the Preferred Senior debt allowance 26.0% TLAC requirement as at 30.06.22: 22.11% of RWA 22.11% BNP Paribas • Including capital conservation buffer, G-SIB buffer, TLAC ratio countercyclical capital buffer (3 bps as of 2Q22) and TLAC as at
Slide 89: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements as at 30.06.222 “Pillar 2 Requirement” (public), applicable to CET1, Tier 1 and Countercyclical buffer and Systemic risk buffer Total Capital ratios G-SIB buffer “Pillar 2 Guidance” (not public), not applicable
Slide 90: Variation in the Cost of Risk by Business Unit (1/2)
Variation in the Cost of Risk by Business Unit (1/2) Cost of risk/Customer loans at the beginning of the period (in annualised bp) 2019 2020 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 Commercial, Personal Banking & Services1 Loan outstandings as of the beg. of the quarter (€bn) 603.3 620.6 625.0 624.4 629.7
Slide 91: Variation in the Cost of Risk by Business Unit (2/2)
Variation in the Cost of Risk by Business Unit (2/2) Cost of risk/Customer loans at the beginning of the period (in annualised bp) 2019 2020 1Q21 2Q21 3Q21 4Q21 2021 1Q22 2Q22 Commercial & Personal Banking outside the Euro Zone1 Loan outstandings as of the beg. of the quarter (€bn) 95.8 95.3 86.9 86
Slide 92: Risk-Weighted Assets
Risk-Weighted Assets Basel 3 Risk-Weighted Assets1: €756bn as at 30.06.22 (€745bn as at 31.03.22) The +€11bn change is mainly explained by: • +€7bn increase in credit risk • +€2bn increase in counterparty risk • +€2bn increase in securitisation positions in the banking book bn€ 30.06.22 31.03.22 Cre
Slide 93: Basel 3 risk-weighted assets by business as at 30.06.22
Basel 31 risk-weighted assets by business as at 30.06.22 Other Activities: 4% CPBF: 13% CPBS: 56% Global Markets & Securities Services: 15% BNL bc: 6% Commercial & Personal CIB: 35% Banking in the Euro zone: 27% CPBB: 7% Global Banking: 20% CPBL: 1% Europe-Mediterranean: 7% Commercial & Personal Ban
Slide 94: Breakdown of Commitments by Industry (Corporate Asset Class)
Breakdown of Commitments by Industry (Corporate Asset Class) Mining, metals & materials (including cement, packages, etc.) 4% IT & electronics 3% Wholesale & trading 7% Real Estate 11% B to B Services 9% Finance 7% Communication Services 3% Insurance 2% Transport & logistics 9% Equipment excluding I
Slide 95: Breakdown of Commitments by Region
Breakdown of Commitments by Region Rest of the World 5% Asia Pacific 7% North America 14% France 30% Other European countries 19% Italy 9% Belgium & Luxembourg 16% Total gross commitments on and off balance sheet, unweighted = €1,999bn1 as at 30.06.22 1. Excluding Equity credit exposure class Second