Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bancwest — Investor Day (December 2001)
64 slides from Bnp Paribas S.a. Class A's investor day presentation, Dec 4, 2001
Slide 1: International Retail Banking Investor Day
ww) BNP PARIBAS a (International Retail Banking) investor Day - December, 4th 2001
Slide 2: Index
BNP PARIBAS ke index @ International Retail Banking Strategic Rationale = Global Outlook @ Development Strategy @ Results and Perspectives
Slide 3: Index
mor & BNP PARIBAS index = Global Outlook @ Development Strategy @ Results and Perspectives
Slide 4: Our Mission
BNP PARIBAS we Our Mission “Our aim is to develop, in targeted geographical areas, a network of local community banks, leveraging the strengths of BNP Paribas, and offering : e Arecurrent and growing contribution to Group earnings; e Across-selling platform for Group products.”
Slide 5: Our Key Strengths
x BNP PARIBAS ke Our Key Strengths @ Strong local franchises and country expertise e Western US: 20-year track-record e Overseas and Emerging Markets (OEM): a long-time presence and insight into local markets =| Platform for Group synergies e Opportunities for cost synergies e Significant base for c
Slide 6: Index
BNP PARIBAS ke index @ International Retail Banking Strategic Rationale ! Outlook @ Development Strategy @ Results and Perspectives
Slide 7: Well-established Retail Franchises
x BNP PARIBAS ke Well-established Retail Franchises = Western US: BancWest e Bank of The West: created in 1874, 193 branches, 5th largest bank in California (by assets) e First Hawaiian Bank: created in 1858, 60 branches, deposit market share of 41% (Hawaii) ™ Overseas and Emerging Markets “OEM” e M
Slide 8: IRB Network
mr 4g BNP PARIBAS IRB Network | wesemus | Overseas and Emerging Markets “OEM” 259 Branches 920 Branches 1.2 m Customers 1.1 m Customers 5,300 Employees 7,000 Employees Mediterranean Basin Attica French Overseas Territories | gm
Slide 9: Significant Platforms for Cross-selling
mr BNP PARIBAS ee Significant Platforms for Cross-selling (estem us ) C Overseas and Emerging Markets (OEM) Bancwest corp. | | Mediterranean | | French Overseas Attica’ Basin" Tetrtories ‘SIndividuals Accts 1,700,000 323,100 329,500 560,000 [demand + checking acts) Peete ane ots 216,000 37.400 25,00
Slide 10: Dominant US contribution
Pl BNP PARIBAS te e Dominant US contribution IRB Net Banking Income OEM 34h income Breakdown: 2/3 Western US, 1/3 OEM IRB pre-tax Net Income OEM 2% usal ust ne 66% e Balanced OEM revenue streams J OEM Net Banking Income | OEM pre-tax Net Income Franch coh Ovwesear er) Overseas rica Tentoes 2% Tertor
Slide 11: Reinforced Control
x BNP PARIBAS 4s Reinforced Control e 100% control of BNPI (Completed April 2000) e 100% control of SFOM (Completed December 2000) e 100% control of BancWest (Pending)
Slide 12: Index
x BNP PARIBAS Index @ International Retail Banking Strategic Rationale = Global Outlook e Western US e Overseas and Emerging Markets “OEM” @ Results and Perspectives
Slide 13: Western US: a Priority Area for Development
ml Western US: BNP PARIBAS te a Priority Area for Development | Western US retail markets offer high value creation opportunities e Strong economic and demographic growth prospects > California: — World’s 4th largest economy — $46,775 average household income — Population: 34 million (6.8% expected
Slide 14: 100% Control of BancWest - Strategic Rationale
mr 100% Control of BancWest - BNP PARIBAS we Strategic Rationale External Growth Avoid dilution of BNP Paribas stake and potential conflicts of interests with other shareholders in case of future acquisitions Support BancWest's disciplined value-added acquisition strategy in a still- consolidating W
Slide 15: 100% Control of BancWest - Financial Rationale
ml 100% Control of BancWest - a nr Paninas Financial Rationale = Full benefit of BancWest’s expanding cash earnings e Elimination of Minority Interests at Group level @ Significant impact on Group Net Income and accretive effect on EPS as of 2002 (based on November IBES estimate for BNP Paribas) In
Slide 16: Avenues of Growth Within BNP Paribas
am * 4 BNPranipaS Avenues of Growth Within BNP Paribas = Cost synergies $10 m in 2002 and $25 m in 2003 e Purchasing contract leverage e Consolidation of BNP Paribas West Coast operations into BancWest > Chinese Desk > Trade Centre m™ Revenue synergies e Cross-selling opportunities in: > Investment
Slide 17: BancWest Corporation At a Glance
BNP PARIBAS ke BancWest Corporation At a Glance = $20 billion regional bank holding company e 33rd largest in the United States (asset size) e@ Community bankers: Relationship focused e Significantly broader product line than smaller banks e Higher-touch service level than larger banks | Created by
Slide 18: BancWest on the Western US Map
ml BNP PARIBAS ke BancWest on the Western US Map Bank of the West: 4193 branches, 6 Western states BaneWest Corporation © §20.0billion assets © $15.0 billion loansleases 0 $15.0 it ~ © Serves 1.2 mill households and businesses Bank of the West n assets: loanstleases deposits prinielsca © 193 branche
Slide 19: Geographic Diversity
BNP PARIBAS ke Geographic Diversity Deposits Gross loans 26% aa Hawaii 39% “ Hawaii Cash earnings 31% 8 Hawaii Most deposits and loans — and 68% of year-to-date 2001 cash eamings —come from ‘the Mainland United States. (“Mainland US” total includes First Hawaiian Bank's national corporatelmedia lend
Slide 20: Two Different Markets, Two Strong Brands
BNP PARIBAS te Two Different Markets, Two Strong Brands BANKS: WEST Bank of the West: 193 branches in 6 states First Hawaiian: Hawaiian Ue Bank Hawaii, Guam, Saipan BancWest ancwes 20 Eo
Slide 21: The West: Highest-Growth US Region
x * 4 PNP raninaS The West: Highest-Growth US Region Nevada JJ 10.6% 9.9% Five-Year Forecast ad S xs 0% 4% 8% 12% Population Growth (2000-2005) BancWest Souree: US Census coarernnas a =
Slide 22: BancWest Business Model
BNP PARIBAS te BancWest Business Model @ Organic growth e Market-driven lines: Western US e Product-driven lines: regionally and nationwide @ External growth e Expand retail network through acquisitions in Western Mainland US: Expand best practices and proven business lines in the new perimeter to c
Slide 23: BancWest Organic Growth Strategy
BNP PARIBAS ke BancWest Organic Growth Strategy @ Market-driven lines in the Western US e Sales-driven philosophy to expand customer relationship > Community banking > Trust, investment management @ Product-driven lines e Asset generation through niche lending in regional and national markets where
Slide 24: Community Banking -- Western US
x BNP PARIBAS ke Community Banking -- Western US @ Relationship focus: 1.2 million Western households and businesses @ 253 full-service branches in 7 states, Guam, Saipan e Incentive compensation program for branch staff e Focus on cross-selling bank, trust/investment products to improve share of wa
Slide 25: Trust, investments -- Western US
x BNP PARIBAS es Trust, investments -- Western US @ Delivered through community, corporate bank channels @ Trust e $9.5 billion trust assets e $3.0 billion under active management @ Investment sales: mutual funds, annuities, securities e Revenue run rate, $20.5 millionfyear e Sales run rate, $600 mi
Slide 26: Consumer Loans & Leases
BNP PARIBAS Xz Consumer Loans & Leases @ Auto loans and leases in the Western US ¢ Network of 2,300 dealers, $2.7 billion outstanding @ RV loans nationwide ¢ Network of 1,075 dealers, $1.7 billion outstanding @ Marine loans nationwide ¢ Network of 1,450 dealers, $900 million outstanding @ Essex Cred
Slide 27: Corporate Specialty Lending
BNP PARIBAS Xz Corporate Specialty Lending = Media finance e $455 million outstanding e $990 million commitments @ Religious lending e $570 million outstanding e Nota single loan loss in 17 years e Loans based on congregation’s demographics, cash flow @ SBA loans (50-75% government-guaranteed) e $65
Slide 28: BancWest External Growth Track-Record
mor 4 ENPPARIPAS BancWest External Growth Track-Record ‘ilantie Financial Silicon Valley, 11 branches Assets: $214 milion Nerthbay Financial Petaluma, 8 branches Assets: $238 million T0p% Giibank, FS " Oatiand; 19 branches oa Resets: $50 milion 110% a Cana Bang Walnut creak branches Besets $850 mill
Slide 29: Merger Cost Synergies - the Example of BoW/FHB
ml Merger Cost Synergies - 4 PNP PARIBAS the Example of BoW/FHB @ Organisational synergies e FHB mainland network merged into BoW @ IT synergies e Consolidated onto Bank of the West systems at Hawaii operations center, 1999-2000 e Scalable platform supports current operations, internal growth and ac
Slide 30: Merger Revenue Synergies - the Example BoW/FHB
Sal . uP PARIBAS Merger Revenue Synergies - we the Example BoW/FHB = Credit cards: First Hawaiian issues all BancWest cards e 165,000 cards, including Bank of the West customers e@ One of Top 50 US issuers -- #1 in Hawaii market @ New credit card bank: First Hawaiian Bankcard, N.A. e Agent bank prog
Slide 31: BancWest: The Bottom Line
BNP PARIBAS ke BancWest: The Bottom Line | Strong revenue and earnings growth shows: Our business model is working @ Balanced by region -- in high-growth markets @ Balanced by line of business @ Experienced in growing by acquisition BancWest arene: at =
Slide 32: Loan and Deposit Growth (Pro Forma)
x 4 PNPPanias Loan and Deposit Growth (Pro Forma) 2 oe 8s S15 a Se £5 10% annually since 1995 8% annually since 1995 PPh SP GP - # BanWest RS 3 Lie 32
Slide 33: Diversified Loan Portfolio
BNP PARIBAS ke Diversified Loan Portfolio Real Estate: International Commercial, Financial, Commercial 2% Agricultural Real Estate: Real Estate: Residential Consumer, Credit Card (At 31/10/01) 3 om
Slide 34: Credit Quality Solid Despite US Slump
mor & BNP PARIBAS Ratio of non-performing assets/ total loans, leases & OREO BancWest Credit Quality Solid Despite US Slump (* Pro Forma) 2 1,5% 1,0% 0,5% 0,0% ‘96 ‘97 ‘98 ‘99 ‘00 1Q 2Q 3a 2001 Ratio of non-performing assets/total loans* improved substantially since 1996 34
Slide 35: Credit Quality Solid Despite US Slump
x * 4 PNPPaniBAaS Credit Quality Solid Despite US Slump (* Pro Forma) Average loans and leases* Total loans and leases’ "96 97 "98 99 00 = 10-20 30 Annualized 2001 "96 97 "98-99 00 10 20:30 2001 BancWest Peete 36 Pins
Slide 36: Commercial Loan Portfolio by Risk Grade
a 4 BNPPARIBAS Commercial Loan Portfolio by Risk Grade fo Se oe at Sass NS go : SC SON a-Better than x i: i 3% vay . 7-Special mention, 3.3° ° average risk, 12.8% 6-Acceptable risk, 28.1% 5-Average risk, 42.7% (At 30/09/01) 36 Lie
Slide 37: Total Deposits: $15.0 Billion
x ” Se ghP Paripas Total Deposits: $15.0 Billion Public . a Time international Money Market Time Certificates 4% M&M of Deposit Savings 12% Non-Interest Bearing (At 3110101) BancWest panenest 7 =
Slide 38: Revenue Growth (Pro Forma)
a Se ghP Paripas Revenue Growth (Pro Forma) Revenue* growth: +9% annually since 1996. Non-interest income: +14% annually since 1996. C $963 g 7 S887 Gj £ * o 3 c o > o ao MNon-interest income mNet interest income * Natierestteame «minister clans ind Ft Hawn Bak, Bark of tee, * Excludes $99.8 milion
Slide 39: Better Efficiency, Year After Year
BNP PARIBAS ke Better Efficiency, Year After Year {Pro Forma) (Pro Forma) $3.6 $2.5 2 ‘97 ‘98 ‘99 ‘00 3Q ‘97 ‘98 «'99° «00 9MO01 04 jon-interest expense, exclusive of nonrecurring items ded by the sum of net interest income (fully4axable basis) plus non-inferestineome less securities transactions an
Slide 40: Earnings: 12%-16% Growth Rate
mr BNP PARIBAS hx Earnings: 12%-16% Growth Rate (pro forma) per share $2.00 xT & $1.50 96 97 98 99 00 MOO MOT 96 97 98 99.00 MOO MOT __ Ohesni, schave omaha, “Prot clans hale Ft Havas Bar, Bak ofthe Wes, BancWest movers od obernoresunng tens Pacifo One Bark and Sirallest Bank for alltime petiods ind
Slide 41: BancWest: an Outstanding Development Platform for BNP Paribas
Si BancWest: an Outstanding BNP PARIBAS /” ke Development Platform for BNP Paribas | BancWest is a significant and profitable player both in Hawaii and in the Western Mainland US @ The “Community Bank’ business model demonstrates good resistance to current economic slowdown = BancWest’s proven devel
Slide 42: Index
BNP PARIBAS ke index @ International Retail Banking Strategic Rationale = Global Outlook opment e Western US e Overseas and Emerging Markets (OEM) @ Results and Perspectives ® =
Slide 43: OEM Development Strategy
BNP PARIBAS ke OEM Development Strategy = Management Objectives > Strengthen organic growth... > ...with tight risk control > Continue to improve operational efficiency > Proactively manage the business portfolio 6 =
Slide 44: Expanded Commercial Offering
x * 4 BNP PARIBAS Expanded Commercial Offering C Develop a specific commercial offerings for targeted segments... ) Enhanced products and services Targeted segments of clientele oe Individuals: middlefhigh end clientele, corporate Remote and electronic banking: Trade Centers, customers employees, lo
Slide 45: Enhanced Cross-Selling
BNP PARIBAS ke Enhanced Cross-Selling Use the OEM network to cross-sell Group products/services ) and increase earnings m= An example of cross-selling within BNPP : implementation of Trade Centres e BNP Paribas global objectives (Trade business line) > Become a Global Partner for customers involved
Slide 46: Dynamic growth of OEM Revenues
Sal BNP PARIBAS # Dynamic growth of OEM Revenues OEM Net Banking Income K Euro 700 000 600 000 500 000 400,000 400 000 300 000 1999 2000 9MO1 annualised 4% <=
Slide 47: Index
x BNP PARIBAS 4x @ International Retail Banking Strategic Rationale = Global Outlook = Development Strategy e Western US e OEM > Strengthen organic growth... >...with tight risk control > Continue to improve operational efficiency Actively manage the business portfolio @ Results and Perspectives a7
Slide 48: Reinforced Risk Management
nt BNP PARIBAS we Reinforced Risk Management - Renewed risk management procedure - A driving force, “the contradictory - Separated functions: independence of risk and commercial dept. - Reinforcement of "controf’ structures WEBBEHEHGHATRIR RS aaaie bert - IRB Audit Dept. - Group “inspection Générale
Slide 49: OEM Exposure
Pe) BNP PARIBAS * OEM Exposure Geographical breakdown French Overseas other fn Tenitores 3% a 21% Mediterranean Basin 56% Well Diversified Exposure Figures as of 30/06/01 OEM Exposure Sectoral breakdown Tourism 26 fnsparts Telecommurivations 34% agriouiture Pa Foca processin Inectry 2086 NB: Corpora
Slide 50: Cautious Provisioning Policy
x BNP PARIBAS “ * Cautious Provisioning Policy OEM OEM Cost of riskfRWA Provision/Doubtful Loans e208. e208 Ta 0% _ || - oon + ean 1999 2000 on 50 <n
Slide 51: Index
x BNP PARIBAS ke index @ International Retail Banking Strategic Rationale = Global Outlook = Development Strategy e Western US e OEM > Strengthen organic growth... > ...with tight risk control > Continue to improve operational efficiency Actively manage the business portfolio @ Results and Perspecti
Slide 52: IT Standardisation
” kx x BNP PARIBAS IT Standardisation Implementation of a uniform yet flexible IT system (ATLAS Il) in OEM affiliates aimed at Enhancing commercial offering Centralisation of activity data Activity and risks analysis Enlargement and adaptation of products and services offering Generating regional sy
Slide 53: Centralisation of Back-Offices
x BNP PARIBAS ae Centralisation of Back-Offices C Improve operational efficiency and cost income ratio ) through centralisation of back-offices = A two-step process, currently being tested before possible implementation throughout OEM * Standardisation of back-office Back-offices processes Productiv
Slide 54: Strong improvement in Productivity
Sal gn? Panipas Strong improvement in Productivity Cost/Income ratio (OEM) 72.0% 70.0% 680% 660% 1999 2000 gM01 st <=
Slide 55: Index
x BNP PARIBAS ke index @ International Retail Banking Strategic Rationale = Global Outlook = Development Strategy e Western US e OEM > Strengthen organic growth... > ...with tight risk control > Continue to improve operational efficiency > Actively manage the business portfolio @ Results and Perspec
Slide 56: Development in High-Growth Markets
x BNP PARIBAS 4x Development in High-Growth Markets C Consolidation of market share through selective ) acquisitions e Morocco : Acquisition and merger of ABN AMRO Moroccan subsidiary with BMCI 20 branches 24,000 Total Assets: customers Euro 966 m > Opportunistic, yet strategic operation in line wit
Slide 57: Development in High-Growth Markets
BNP PARIBAS ke Development in High-Growth Markets C Targeted acquisitions in new markets ) e Turkey: potential acquisition of domestic franchise and selected assets of Finansbank period extended until January 15th to finalise negotiations 2119 branches (63 in Istanbul), multi-channel model 3 226,000
Slide 58: Development in High-Growth Markets
BNP PARIBAS ke Development in High-Growth Markets C Targeted development through Greenfield projects ) ¢ India (launched in October 2001) > 140-years presence of BNP Paribas in corporate activity > Full retail banking activity > Multi-channel bank approach > Focus on cross-selling > Experienced team
Slide 59: Index
BNP PARIBAS ke index @ International Retail Banking Strategic Rationale = Global Outlook @ Development Strategy 58 =
Slide 60: High and Increasing Profitability
ml BNP PARIBAS te High and Increasing Profitability Eurom ‘Mot M00 % Net Banking Income 1388 1178 178% General Expense and Dep. 778 687 13.8% Gross Operating Profit 611 492 24.2% Operating Income 499 372 341% Non Operating items, 7 "1 36.4% Net Income before Tax and GW 492 961 36.3% Goodwill a 20 18
Slide 61: Strong Profitability Growth
BNP PARIBAS ” e Strong Profitability Growth IRB Net Income IRB Pre-tax ROE Figures in Euro m 70 & a Ey a0 us ao B am ™ 8 0 >x2 net} i wo income i) 2000 M01 SMO annualised 1 <=
Slide 62: Increasing Contribution to Group Results
mor & BNP PARIBAS 4 Increasing Contribution to Group Results IRB contribution to Group Operating Income Allocated Equity (IRB) 300% 1a 250% 124% 1600 12.00% a0 1150% 1m 11.00% im 10.50% 0.50% m 10.00% 80% = 00% S56 a0 280% m0 cans } at 409 2000 uot curom 8B om owt mAbcated Equty(Consoidated) mAlocat
Slide 63: Significant Profitability and Development Perspectives
am ae ope snpranicas 2Qnificant Profitability and Development we Perspectives | Profitability (before Goodwill) above IRB pre-tax ROE target of 35% => Capacity to pursue external growth, while maintaining high profitability levels, in order to: + Consolidate market shares in Western US > Create and
Slide 64: International Retail Banking
> BNP PARIBAS “x (International Retail Banking)