Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q1 2020 Earnings Presentation
84 slides from Bnp Paribas S.a. Class A's earnings presentation, May 4, 2020
Slide 1: First Quarter 2020 Results
FIRST QUARTER 2020 RESULTS 5 May 2020
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: Banking: an essential service mobilised during the health crisis
Banking: an essential service mobilised during the health crisis In response to the Covid-19 epidemic, implementation of public health measures in many countries around the world to protect citizens and slow the spread of the virus Major economic and social repercussions BNP Paribas entered this cri
Slide 4: Health crisis: exceptional mobilisation for clients and society
Health crisis Exceptional mobilisation of BNP Paribas for its clients and society at large Activation of a business Support for customers Commitment to continuity set-up during the crisis civil society Prompt adaptation to safeguard Exceptional mobilisation of Over €50m emergency donations in 35 emp
Slide 5: Group Results
GROUP RESULTS DIVISION RESULTS OUTLOOK 2020 1Q20 DETAILED RESULTS APPENDIX
Slide 6: Three major impacts of the health crisis in 1Q20
Health crisis Three major impacts of the health crisis in 1Q20 The health crisis had major repercussions on macroeconomic outlook and produced extreme shocks on the financial markets. After a quarter in line with the 2020 objectives of BNP Paribas, health crisis related developments had 3 distinct n
Slide 7: 1Q20: Excellent business drive impacted by an unprecedented health crisis
1Q20: Excellent business drive in the quarter impacted by an unprecedented health crisis Revenues: -2.3% vs. 1Q19 Good revenue resilience despite an extreme +2.8% excluding one-off impacts of the market shock at the end of the quarter health crisis in 1Q201 (-€568m) Significant decrease in operating
Slide 8: Consolidated Group – 1Q20
Consolidated Group – 1Q20 Good level of results in line with the 2020 objectives excluding major impacts of the health crisis1 Excluding major impacts of the health crisis1 1Q20 1Q20 1Q20 1Q19 vs. 1Q19 1Q20 vs. 1Q19 Revenues €10,888m €11,144m -2.3% +2.8% €11,456m Operating expenses -€8,157m -€8,449m
Slide 9: Main exceptional items and IFRIC 21 impact - 1Q20
Main exceptional items and IFRIC 21 impact -1Q20 Exceptional items 1Q20 1Q19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€45m -€38m • IT reinforcement costs (Corporate Centre) -€34m • Transformation costs – 2020 Plan (Corporate Centre) -€168m Total exceptional
Slide 10: Revenues of the Operating Divisions - 1Q20
Revenues of the Operating Divisions - 1Q20 Good results despite severe market disruptions in late March Domestic International CIB Markets1 Financial Services -1.2% -5.4% -1.9% +3.6% +4.3% Operating divisions -3.1% Excluding one- +2.0% off impacts of the health crisis2 3 961 3 913 4 282 4 053 1Q19 3
Slide 11: Operating expenses of the Operating Divisions - 1Q20
Operating expenses of the Operating Divisions - 1Q20 Decrease in operating expenses in absolute terms Domestic International Markets1 Financial Services CIB Operating -0.5% +2.9% -2.8% divisions -2.3% +2.2% -4.7% -0.1% Excluding -1.4% the effect of taxes subject to IFRIC 21 1Q19 2 983 2 970 2 688 2
Slide 12: Cost of Risk
Cost of Risk 1Q20 recognition of the effects of the health crisis Impact of the effects of the health crisis on the cost of risk in 1Q20: -€502m Reflecting macroeconomic anticipations based on several scenarios, in accordance DM with the set-up existing prior to the health crisis €49m Integratin
Slide 13: Cost of Risk by Business Unit (1/3)
Cost of Risk by Business Unit (1/3) Cost of risk / Customer loans at the beginning of the period (in annualised bp) Group • Cost of risk: €1,426m +€460m vs. 4Q19 67 +€657m vs. 1Q19 46 39 39 38 41 46 23 35 30 • Increase in the cost of risk mainly due to the effects 44 of the health crisis (€502m,
Slide 14: Cost of Risk by Business Unit (2/3)
Cost of Risk by Business Unit (2/3) Cost of risk / Customer loans at the beginning of the period (in annualised bp) FRB • Cost of risk: €101m +€2m vs. 4Q19 +€29m vs. 1Q19 • Low cost of risk despite the anticipated effects 24 21 16 17 15 17 16 21 21 of the health crisis 2016 2017 2018 2019 1Q19 2
Slide 15: Cost of Risk by Business Unit (3/3)
Cost of Risk by Business Unit (3/3) Cost of risk / Customer loans at the beginning of the period (in annualised bp) Personal Finance • Cost of risk: €582m +€212m vs. 4Q19 240 +€253m vs. 1Q19 159 147 141 145 145 123 154 156 • Increase in the cost of risk mainly due to the anticipated effects of t
Slide 16: Very solid financial structure
Very solid financial structure CET1 ratio well above requirements CET1 ratio: 12.0% as at 31.03.201 Organic effects (including the impact of IFRIC 21 “Taxes”): 0 bp CET1 ratio • 1Q20 results after taking into account a 50% dividend pay-out ratio: +10 bps • Organic increase in risk-weighted assets: -
Slide 17: Net tangible book value per share: €69.7
Net tangible book value per share: €69.7 Net book value per share end of period € CAGR 2008-1Q20: 79.0 79.0 73.9 75.1 74.7 +5.0% 70.9 9,3 9,3 66.6 63.1 65.0 10,6 10,0 9,9 Net tangible book value per 57.1 10,7 69,7 69,7 51.9 55.6 10,9 share 10,7 10,0 63,3 65,1 64,8 45.7 60,2 11,5 11,7 55,0 55,7 11,1
Slide 18: A reinforced Internal Control Set-up
A reinforced Internal Control Set-up Ever more solid compliance and control procedures Continuous improvement of the ethics alert mechanism with internal communication about the optimisation of the mechanism and the processing rules to ethics alert officers Finalisation of the roll-out of measur
Slide 19: Division Results
GROUP RESULTS DIVISION RESULTS OUTLOOK 2020 1Q20 DETAILED RESULTS APPENDIX
Slide 20: Domestic Markets - 1Q20
Domestic Markets - 1Q20 Good performance in a low-interest rate environment, positive jaws effect1 Growth in business activity Loans • Loans: +3.5% vs. 1Q19, good loan growth in retail networks, in particular in France and +3.5% Belgium and in the specialised businesses €bn 405 419 50 54 Other DM •
Slide 21: DM - French Retail Banking - 1Q20
DM - French Retail Banking - 1Q20 Customer relationships strengthened in the midst of the crisis Good level of business activity Loans • Loans: +5.0% vs. 1Q19, good growth in all customer segments, margins holding up well; €bn +5.0% increase in particular in corporate loans 170 178 • Deposits: +8.3%
Slide 22: DM - BNL banca commerciale - 1Q20
DM - BNL banca commerciale - 1Q20 Rise in income due to the decrease in the cost of risk Market share on the corporate Growth in business activity in a challenging environment segment (loans) • Loans: -4.3%1 vs. 1Q19, stable on the perimeter excluding non-performing loans; continued market share gai
Slide 23: DM - Belgian Retail Banking - 1Q20
DM - Belgian Retail Banking - 1Q20 Impact of low interest rates, continued cost adaptation Sustained business activity throughout the quarter Loans • Loans: +5.0% vs. 1Q19, good growth in mortgage and corporate loans €bn +5.0% • Deposits: +5.4 % vs. 1Q19 109 114 Strong mobilisation with specific and
Slide 24: DM - Other Activities - 1Q20
DM - Other Activities - 1Q20 Overall very good business drive, positive jaws effect and strong growth in income Very good level of activity in all businesses and proactive implementing Arval financed fleet of public health measures +8.7%1 • Arval: growth of the financed fleet (+8.7%1 vs. 1Q19); cont
Slide 25: International Financial Services - 1Q20
International Financial Services - 1Q20 Overall good business drive, impact of the health crisis on Insurance revenues and the anticipated cost of risk Sustained business activity in the first part of the quarter • Outstanding loans: +4.5% vs. 1Q19, good growth in Personal Finance and Europe-Mediter
Slide 26: IFS - Personal Finance - 1Q20
IFS - Personal Finance - 1Q20 Overall growth momentum & positive jaws effect Business activity Consolidated outstandings • Outstanding loans: +4.4% vs.1Q19, steady growth momentum nonetheless €bn +4.4% impacted at the end of the quarter by the closing of sales points as the pandemic 91 95 spread • G
Slide 27: IFS - Europe-Mediterranean - 1Q20
IFS - Europe-Mediterranean - 1Q20 Good business growth & prompt and agile adaptation of the networks Good growth in business activity Loans Deposits • Loans: +5.0%1 vs. 1Q19, growth in Turkey and Morocco, with a cautious €bn €bn risk profile +5.0%1 +6.6%1 • Deposits: +6.6%1 vs. 1Q19, increase in par
Slide 28: IFS - BancWest - 1Q20
IFS - BancWest -1Q20 Increase in revenues and positive jaws effect Overall increase in business activity Loans1 Customer • Loans: +1.5%1 vs. 1Q19, increase in mortgage and corporate loans deposits1 • Deposits: +8.5%1 vs. 1Q19, increase in customer deposits2 (+9.0%) $bn $bn • Private Banking: $14.9bn
Slide 29: IFS - Insurance and WAM – Asset Flows and AuM - 1Q20
IFS - Insurance and WAM1 – Asset Flows and AuM - 1Q20 Unfavourable market trend and good level of net asset inflows Assets under management: €1,038bn as at Change in assets under management2 31.03.2020 Performance Total • -3.5% vs. 31.03.19 €bn +9.2 effect • Unfavourable performance effect: -€90.9bn
Slide 30: IFS - Insurance - 1Q20
IFS - Insurance - 1Q20 Good quarter impacted by the decline in markets as a result of the health crisis Good level of activity undermined by the health crisis • Good development in savings and protection insurance business at the beginning of the year • Impact of the health crisis with a slowdown in
Slide 31: IFS – Wealth and Asset Management - 1Q20
IFS – Wealth and Asset Management1 - 1Q20 Ongoing development and adaptation plans Wealth Management • Increase in business with good net asset inflows • Increase in AuM-based fees and transaction fees • Development of digital usages with nearly 50% of active digital clients2 Asset Management • Stro
Slide 32: Corporate & Institutional Banking - 1Q20
Corporate & Institutional Banking - 1Q20 Strong business drive and impacts of extraordinary shocks Intense mobilisation to support the economy Bond and syndicated credit • More than €115bn in financing raised for clients in 2020 across bond, rankings in 20202 syndicated credit and equity markets1 Ra
Slide 33: CIB: Global Markets - 1Q20
CIB: Global Markets - 1Q20 Very marked trends in an exceptional market environment Strengthening of FICC with strong growth Covid-19 bonds • Very strong momentum over the quarter, with a steep rise in customer BNP Paribas led three major deals for development volumes, in particular on electronic pla
Slide 34: CIB: Corporate Banking - 1Q20
CIB: Corporate Banking - 1Q20 Very good performance and strong ongoing momentum in activity Strong business activity driven by the Group’s commitment Corporate Banking in Europe • Sustained growth in average loans outstandings (€165bn, Penetration rate +17.4% vs. 1Q19)1; close to €25bn drawn on cred
Slide 35: CIB: Securities Services - 1Q20
CIB: Securities Services - 1Q20 Strong increase in revenues on the quarter Continued strategic development Transaction volumes • Announcement of the acquisition of Banco Sabadell’s Settlement & delivery depositary business in Spain1 transactions in millions • Strategic alliance set up with BlackRock
Slide 36: Outlook 2020
GROUP RESULTS DIVISION RESULTS OUTLOOK 2020 1Q20 DETAILED RESULTS APPENDIX
Slide 37: 2020 Outlook
2020 Outlook The health crisis leads to a drastic revisit of the 2020 macroeconomic scenario • The current recession will give way to a very gradual recovery after the end of the lockdown measures • Return to normalised health conditions should not be expected before the end of the year • Return to
Slide 38: 1Q20 Detailed Results
GROUP RESULTS DIVISION RESULTS OUTLOOK 2020 1Q20 DETAILED RESULTS APPENDIX
Slide 39: Health crisis: extraordinary steps to preserve the economic fabric
Health crisis Extraordinary steps taken to preserve the economic and social fabric Governments have put in place massive measures to mitigate the short-and medium-term effects on individuals and corporates temporarily impacted by the health crisis. Coverage of partial unemployment Deferred taxes and
Slide 40: A diversified model
A diversified model A prudent risk profile with no sector concentration Highly diversified by sector: no sector representing more than 5 % of total portfolio High selectivity at origination Limited exposures to sectors considered as sensitive Aircraft: 0.9% of total gross commitments1 Oil & Gas: 2.2
Slide 41: Retail Banking and Services - 1Q20
Retail Banking and Services - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 7,823 8,096 -3.4% 8,286 -5.6% Operating Expenses and Dep. -5,650 -5,586 +1.2% -5,274 +7.1% Gross Operating Income 2,172 2,510 -13.5% 3,012 -27.9% Cost of Risk -1,050 -733 +43.3% -826 +27.2% Operating Income 1
Slide 42: Domestic Markets - 1Q20
Domestic Markets - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 3,913 3,961 -1.2% 4,036 -3.0% Operating Expenses and Dep. -2,970 -2,983 -0.5% -2,635 +12.7% Gross Operating Income 943 978 -3.5% 1,402 -32.7% Cost of Risk -313 -307 +1.9% -254 +23.3% Operating Income 630 671 -6.0% 1,147
Slide 43: DM - French Retail Banking - 1Q20
DM - French Retail Banking - 1Q20 (EXCLUDING PEL/CEL EFFECTS) 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 1,524 1,595 -4.4% 1,569 -2.8% Incl. Net Interest Income 823 912 -9.8% 889 -7.5% Incl. Commissions 702 682 +2.8% 679 +3.3% Operating Expenses and Dep. -1,166 -1,186 -1.6% -1,152 +1.2
Slide 44: DM - French Retail Banking Volumes
DM - French Retail Banking Volumes Outstandings %Var/1Q19 %Var/4Q19 Average outstandings (€bn) 1Q20 LOANS 178.1 +5.0% +0.1% Individual Customers 98.0 +5.5% +1.0% Incl. Mortgages 87.0 +5.9% +1.3% Incl. Consumer Lending 11.0 +2.4% -1.6% Corporates 80.1 +4.3% -0.9% DEPOSITS AND SAVINGS 191.5 +8.3% +1.3
Slide 45: DM - BNL banca commerciale - 1Q20
DM - BNL banca commerciale - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 1Q19 4Q19 Revenues 659 675 -2.5% 755 -12.8% Operating Expenses and Dep. -465 -470 -1.2% -450 +3.3% Gross Operating Income 194 205 -5.5% 305 -36.5% Cost of Risk -120 -165 -27.2% -109 +10.1% Operating Income 74 40 +83.8% 196 -62.5% Non
Slide 46: DM – BNL banca commerciale Volumes
DM – BNL banca commerciale Volumes Outstandings %Var/1Q19 %Var/4Q19 Average outstandings (€bn) 1Q20 LOANS 73.0 -4.3% -0.2% Individual Customers 39.0 -0.6% +2.3% Incl. Mortgages 25.6 +3.1% +4.3% Incl. Consumer Lending 5.1 +15.2% +11.2% Corporates 34.0 -8.1% -2.9% DEPOSITS AND SAVINGS 48.5 +10.9% +2.6
Slide 47: DM - Belgian Retail Banking - 1Q20
DM - Belgian Retail Banking - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 1Q19 4Q19 Revenues 885 915 -3.3% 878 +0.8% Operating Expenses and Dep. -830 -844 -1.6% -560 +48.3% Gross Operating Income 55 71 -23.3% 318 -82.8% Cost of Risk -54 -34 +60.7% -5 n.s. Operating Income 0 37 -98.8% 313 -99.9% Non Operati
Slide 48: DM - Belgian Retail Banking Volumes
DM - Belgian Retail Banking Volumes Outstandings %Var/1Q19 %Var/4Q19 Average outstandings (€bn) 1Q20 LOANS 114.0 +5.0% +1.3% Individual Customers 72.5 +4.9% +1.3% Incl. Mortgages 53.2 +5.8% +1.8% Incl. Consumer Lending 0.1 +12.7% -58.2% Incl. Small Businesses 19.2 +2.6% +0.7% Corporates and Local Go
Slide 49: DM - Other Activities - 1Q20
DM - Other Activities - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 845 776 +9.0% 834 +1.3% Operating Expenses and Dep. -508 -483 +5.2% -473 +7.6% Gross Operating Income 337 292 +15.3% 362 -6.8% Cost of Risk -38 -37 +4.7% -42 -8.8% Operating Income 299 256 +16.8% 320 -6.6% Share of
Slide 50: DM - LRB - Personal Investors
DM - LRB - Personal Investors Luxembourg Retail Banking (LRB) 1 Average outstandings (€bn) 1Q20 %Var /1Q19 %Var/4Q19 LOANS 11.3 +10.2% +3.5% Loans vs. 1Q19: good growth in Individual Customers 7.2 +8.0% +1.7% mortgage and corporate loans Corporates and Local Governments 4.2 +14.3% +6.7% Deposits vs.
Slide 51: DM - Arval - Leasing Solutions - Nickel
DM - Arval - Leasing Solutions - Nickel Arval 1 1 Average outstandings (€bn) 1Q20 %Var /1Q19 %Var /4Q19 Consolidated Outstandings 21.5 +14.1% +3.6% Financed vehicles ('000 of vehicles) 1,322 +8.7% +1.8% • Consolidated outstandings: +14.1%1 vs. 1Q19; good growth in all regions • Financed fleet: +8.7%
Slide 52: International Financial Services - 1Q20
International Financial Services - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 1Q19 4Q19 Revenues 4,053 4,282 -5.4% 4,391 -7.7% Operating Expenses and Dep. -2,766 -2,688 +2.9% -2,715 +1.9% Gross Operating Income 1,287 1,594 -19.2% 1,675 -23.2% Cost of Risk -739 -428 +72.5% -574 +28.8% Operating Income 548
Slide 53: IFS - Personal Finance - 1Q20
IFS - Personal Finance - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 1,475 1,427 +3.4% 1,485 -0.7% Operating Expenses and Dep. -787 -770 +2.3% -721 +9.2% Gross Operating Income 688 656 +4.8% 764 -10.0% Cost of Risk -582 -329 +76.8% -370 +57.3% Operating Income 105 327 -67.8% 394 -7
Slide 54: IFS - Personal Finance Volumes and risks
IFS - Personal Finance Volumes and risks %Var/1Q19 %Var/4Q19 at constant at constant scope and scope and 1Q20 historical historical exchange exchange Average outstandings (€bn) rates rates TOTAL CONSOLIDATED OUTSTANDINGS 95.0 +4.4% +5.6% +0.9% +1.2% TOTAL OUTSTANDINGS UNDER MANAGEMENT (1) 110.4 +4.7
Slide 55: IFS – Europe-Mediterranean - 1Q20
IFS – Europe-Mediterranean - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 665 665 -0.1% 702 -5.3% Operating Expenses and Dep. -490 -456 +7.5% -459 +6.7% Gross Operating Income 175 210 -16.7% 243 -28.0% Cost of Risk -86 -77 +12.7% -113 -23.9% Operating Income 89 133 -33.5% 129 -31.6%
Slide 56: IFS – Europe-Mediterranean Volumes and risks
IFS – Europe-Mediterranean Volumes and risks %Var/1Q19 %Var/4Q19 at constant at constant scope and scope and 1Q20 historical historical exchange exchange Average outstandings (€bn) n.s. n.s.rates n.s. n.s.rates ns ns ns ns LOANS 38.8 +2.6% +5.0% +0.8% +2.7% DEPOSITS 42.3 +4.5% +6.6% +2.7% +4.7% ns n
Slide 57: IFS - BancWest - 1Q20
IFS - BancWest - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 611 569 +7.3% 611 -0.0% Operating Expenses and Dep. -465 -442 +5.2% -406 +14.6% Gross Operating Income 146 127 +14.6% 205 -29.0% Cost of Risk -62 -18 n.s. -84 -25.6% Operating Income 83 109 -23.4% 121 -31.3% Non Operating
Slide 58: IFS - BancWest Volumes
IFS - BancWest Volumes Outstandings %Var/1Q19 %Var/4Q19 at constant at constant scope and scope and 1Q20 historical historical exchange exchange Average outstandings (€bn) rates rates ns n ns ns ns nss ns ns LOANS 56.6 +5.9% +1.5% +0.7% +0.3% Individual Customers 24.3 +6.2% -0.1% -1.3% -1.7% Incl. M
Slide 59: IFS - Insurance and WAM – 1Q20 Business
IFS - Insurance and WAM1 – 1Q20 Business %Var/ %Var/ 31.03.20 31.03.19 31.12.19 €bn 31.03.19 31.12.19 Assets under management (€bn) 1,037.9 1,075.2 -3.5% 1,122.9 -7.6% Asset Management 408 421 -3.1% 440 -7.2% Wealth Management 359 377 -4.6% 393 -8.6% Real Estate Services 29 29 -0.3% 30 -3.8% Insuran
Slide 60: IFS - Insurance & WAM Breakdown of assets by Customer Segment
IFS - Insurance & WAM1 Breakdown of assets by Customer Segment Breakdown of assets by customer segment €1,075bn €1,038bn Corporate & 32% 33% Institutions 53% Individuals 52% External 15% distribution 15% 31 March 2019 31 March 2020 1. Asset Management, Wealth Management and Real Estate Services Firs
Slide 61: IFS - Asset Management Breakdown of Managed Assets
IFS - Asset Management Breakdown of Managed Assets 31.03.20 Alternatives and others 5% Bonds Diversified 34% 27% ▶ 50% Money-market Equities 16% 17% €408bn First quarter 2020 results | 61
Slide 62: IFS - Insurance - 1Q20
IFS - Insurance - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 579 874 -33.7% 654 -11.5% Operating Expenses and Dep. -393 -389 +0.9% -380 +3.4% Gross Operating Income 186 484 -61.6% 274 -32.1% Cost of Risk 1 -2 n.s. -1 n.s. Operating Income 187 482 -61.2% 273 -31.5% Share of Earning
Slide 63: IFS – Wealth and Asset Management - 1Q20
IFS – Weath and Asset Management - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 743 766 -3.0% 957 -22.3% Operating Expenses and Dep. -642 -641 +0.2% -760 -15.5% Gross Operating Income 101 125 -19.1% 197 -48.7% Cost of Risk -9 -2 n.s. -6 +65.5% Operating Income 92 123 -25.3% 191 -52.
Slide 64: Corporate and Institutional Banking - 1Q20
Corporate and Institutional Banking - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 1Q19 4Q19 Revenues 2,953 3,008 -1.9% 3,101 -4.8% Operating Expenses and Dep. -2,393 -2,463 -2.8% -2,229 +7.3% Gross Operating Income 560 545 +2.6% 871 -35.8% Cost of Risk -363 -32 n.s. -80 n.s. Operating Income 197 513 -61.7%
Slide 65: CIB Global Markets - 1Q20
Corporate and Institutional Banking Global Markets - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 1,306 1,523 -14.3% 1,340 -2.6% incl. FICC 1,392 1,035 +34.5% 820 +69.8% incl. Equity & Prime Services -87 488 n.s. 520 n.s. Operating Expenses and Dep. -1,162 -1,276 -8.9% -1,117 +4.0%
Slide 66: CIB Market risks - 1Q20
Corporate and Institutional Banking Market risks - 1Q20 Average 99% 1-day interval VaR €m Commodities Forex Equities Interest Rates Credit Nettings 42 43 43 43 35 35 36 37 35 33 34 3 29 31 6 6 6 31 31 28 28 27 27 26 14 4 3 4 8 14 6 25 24 23 25 4 20 24 5 22 22 23 4 11 19 7 4 20 4 24 15 13 14 18 9 21
Slide 67: CIB Corporate Banking - 1Q20
Corporate and Institutional Banking Corporate Banking - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 1,070 969 +10.4% 1,210 -11.6% Operating Expenses and Dep. -748 -724 +3.4% -668 +12.0% Gross Operating Income 321 245 +31.3% 541 -40.7% Cost of Risk -201 -35 n.s. -80 n.s. Operating I
Slide 68: CIB Securities Services - 1Q20
Corporate and Institutional Banking Securities Services - 1Q20 1Q20 1Q19 1Q20 / 4Q19 1Q20 / €m 0 0 1Q19 0 4Q19 Revenues 577 516 +11.8% 551 +4.8% Operating Expenses and Dep. -482 -463 +4.1% -444 +8.7% Gross Operating Income 95 53 +78.9% 107 -11.6% Cost of Risk -2 -1 n.s. 0 n.s. Operating Income 93 52
Slide 69: CIB Transactions - 1Q20
Corporate and Institutional Banking Transaction – 1Q20 France – Iliad BNP Paribas acted as Joint Global Coordinator on a EUR 1.4bn capital increase financing a public share buyback Belgium – Kingdom of Belgium tender offer of the same amount . EUR 8bn – successfully issued its third syndicated OLO J
Slide 70: CIB Rankings & Awards - 1Q20
Corporate and Institutional Banking Rankings & « Awards » - 1Q20 Global Markets : • N°1 All Bonds in Euros by volume and number of deal (Dealogic, Year to date1) • N°1 All Global Green Bonds in Euros and n°2 European FIC DCM by volume (Dealogic, Year to date) • “Lead Manager of the Year for Corporat
Slide 71: Corporate Centre - 1Q20
Corporate Centre - 1Q20 €m 1Q20 1Q19 4Q19 Revenues 126 37 -45 Operating Expenses and Dep. -114 -400 -529 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -79 -206 -420 Gross Operating Income 12 -363 -574 Cost of Risk -13 -4 -60 Operating Income -1 -367 -634 Share of Earning
Slide 72: Appendix
GROUP RESULTS DIVISION RESULTS OUTLOOK 2020 1Q20 DETAILED RESULTS APPENDIX
Slide 73: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 31-Mar-20 31-Dec-19 Number of Shares (end of period) 1,250 1,250 Number of Shares excluding Treasury Shares (end of period) 1,249 1,249 Average number of Shares outstanding excluding Treasury Shares 1,248 1,248 Earnings per Share i
Slide 74: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 31-Mar-20 31-Dec-19 Total Capital Ratio (a) 15.5% 15.5% Tier 1 Ratio (a) 13.4% 13.5% Common equity Tier 1 ratio (a) 12.0% 12.1% (a) CRD4, on risk-weighted assets of € 697 bn as at 31.03.20 and € 669 bn as at 31.12.19 Book value per Share in mill
Slide 75: Return on Equity and Permanent Shareholders' Equity
Return on Equity and Permanent Shareholders’ Equity Calculation of Return on Equity in millions of euros 31-Mar-20 31-Dec-19 Net income Group share 1,282 8,173 (1) Exceptional items (after tax) (a) 206 -242 (2) of which exceptonal items (not annualised) 256 514 (3) of IT reinforcement, adaptation an
Slide 76: A Solid Financial Structure
A Solid Financial Structure Doubtful loans/gross outstandings 31-Mar-20 31-Dec-19 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 amo
Slide 77: Ratio common equity Tier 1
Ratio common equity Tier 1 Common equity Tier 1 ratio1 (Accounting capital to prudential capital reconciliation) €bn 31-Mar-202 31-Dec-19 Consolidated Equity 113.5 111.8 Undated super subordinated notes -10.3 -8.7 2019 project of dividend distribution -3.9 2020 project of dividend distribution -0.6
Slide 78: Medium/Long Term Wholesale Funding 2020 Programme
Medium/Long Term Wholesale Funding 2020 Programme 2020 MLT wholesale funding programme1: €35bn 2020 MLT regulatory issuance plan: €17bn • Capital instruments: €4bn, €2.9bn already issued2 • AT1: $1.75bn issued on 18.02.20, Perp NC10 3, 4.50% s.a. coupon, equiv. mid-swap€+251 bps, • Tier 2: €1bn issu
Slide 79: TLAC ratio: ~2% above the requirement
TLAC ratio: ~2% above the requirement without the Preferred Senior allowance TLAC BNP Paribas TLAC ratio TLAC requirement in 1Q20: 20.11% of RWA requirement as at 31.03.20 in 1Q20 • Including capital conservation buffer, G-SIB buffer and countercyclical capital buffer, decreased by 6bp vs end 2019 •
Slide 80: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements in 1Q201 Countercyclical buffer P2R “Pillar 2 Requirement” (public), applicable to CET1, Tier 1 and Total Capital ratios G-SIB buffer Pillar 1 Conservation buffer “Pillar 2 Guidance” (not public), not applicable
Slide 81: 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) 2017 2018 1TQ9 2Q19 3Q19 4Q19 2019 1Q20 1 Domestic Markets Loan outstandings as of the beg. of the quarter (€bn) 362.3 401.3 411.0 412.6 416.4 416.1 414.0 422.1 Cost of
Slide 82: 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) 2017 2018 1T19 2T19 3T19 4T19 2019 1T20 BancWest1 Loan outstandings as of the beg. of the quarter (€bn) 64.9 51.3 53.7 54.5 54.7 57.5 55.1 55.4 Cost of risk (€m) 111 70
Slide 83: Risk-Weighted Assets
Risk-Weighted Assets Risk-Weighted Assets1 : €697bn as at 31.03.20 (€669bn as at 31.12.19) bn€ 31.03.20 31.12.19 Credit risk2 531 524 Operational Risk 69 69 Counterparty Risk 41 30 Market / Foreign exchange Risk 26 19 Securitisation positions in the banking book 14 11 Others3 16 16 Basel 3 RWA1 697
Slide 84: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as 31.03.2020 Other Activities: 4% FRB: 14% Global Markets & Securities Services: 14% BNL bc: 7% BRB: 7% Corporate Banking: 18% Other Domestic Markets2: 6% Insurance & WAM: 6% Personal Finance: 10% BancWest: 7% Retail Banking