Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — FY2020 Earnings Presentation
111 slides from Bnp Paribas S.a. Class A's earnings presentation, Feb 5, 2021
Slide 1: 2020 Full Year Results
2020 FULL YEAR RESULTS 5 February 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: 2020: diversified and integrated model demonstrated its resilience
2020: BNP Paribas’ diversified and integrated model demonstrated its effectiveness and resilience in a context marked by the health crisis Loans outstanding: +€33bn (+4.4% vs. 2019) Resources and capabilities mobilised to serve the More than 120,000 state-guaranteed loans1 economy and society €396bn
Slide 4: Group Results
GROUP RESULTS DIVISION RESULTS 2021 TRENDS CONCLUSION 4Q20 DETAILED RESULTS APPENDICES
Slide 5: Main exceptional items – 2020
Main exceptional items – 2020 Transformation costs ended: total of exceptional items positive Exceptional items 2020 2019 Revenues • Accounting impact of a swap set up for the transfer of an activity (Corporate Centre) -€104m Total exceptional revenues -€104m Operating expenses • Restructuring costs
Slide 6: Consolidated Group – 2020
Consolidated Group – 2020 Resilient results – Positive jaws effect 2020 vs. 2020 vs. 2019 2020 2019 2019 At constant scope & exchange rates Revenues €44,275m €44,597m -0.7% +1.3% Operating expenses -€30,194m -€31,337m -3.6% -2.7% Gross operating income €14,081m €13,260m +6.2% +10.5% Cost of risk -€5
Slide 7: Revenues of the Operating Divisions – 2020
Revenues of the Operating Divisions – 2020 Effectiveness and resilience of the diversified and integrated model Domestic International CIB Operating Markets1 Financial Services divisions -2.1% -7.2% +13.9% +0.2% at constant scope & at constant at constant -4.6% exchange rates +16.2% scope & +2.0% sc
Slide 8: 2020 Operating expenses
2020 Operating expenses Proven effectiveness of the digital and industrial transformation Recurring cost savings achieved with €bn the effects of the transformation of Significant decrease in the 2020 plan 31.3 operating expenses, 30.2 in line with objectives -3.6% Decrease in costs amplified despit
Slide 9: Operating expenses of the Operating Divisions – 2020
Operating expenses of the Operating Divisions – 2020 Effect of cost-saving measures Domestic International Operating Markets1 Financial Services CIB divisions -1.6% -3.7% +3.0% -1.0% at constant at constant at constant -1.6% scope & +3.7% scope & -0.1% scope & exchange rates exchange exchange rates
Slide 10: Cost of risk – 2020 (1/3)
Cost of risk – 2020 (1/3) Cost of risk vs. Customer loans at the beginning of the period Group 2020 cost of risk: • Cost of risk: €5,717m (+€2.5bn vs. 2019) x1.8 vs. 2019 • Increase in the cost of risk vs. 2019 on the 66 back of the effects of the health crisis, and 2020 cost of risk on 46 39 35 39
Slide 11: Cost of risk – 2020 (2/3)
Cost of risk – 2020 (2/3) Cost of risk vs. Customer loans at the beginning of the period FRB Europe-Mediterranean • €437m (+€38m vs. 2019) • €496m (+€167m vs. 2019) • Moderate increase in the cost • Contained increase in the 111 112 68 82 98 of risk due to provisioning of 24 21 16 17 25 cost of risk
Slide 12: Cost of risk – 2020 (3/3)
Cost of risk – 2020 (3/3) Cost of risk vs. Customer loans at the beginning of the period CIB – Corporate Banking 80 • €1,308m (+€1,085m vs. 2019) • Increase due to provisioning of performing loans (stages 1 & 2) as well as to specific files 25 15 • Reminder: low cost of risk in the previous years du
Slide 13: A very solid financial structure
A very solid financial structure Increase in CET1 ratio CET1 ratio CET1 ratio: 12.8% as at 31.12.201 (+70 bps vs. 31.12.19) • 2020 result, after taking into account a 50% payout ratio: +50 bps 12.8% • Organic increase of risk-weighted assets (at constant exchange rates): -50 bps 12.1% • Impact of pl
Slide 14: Distribution policy and capital management
Distribution policy and capital management Shareholder return of 21% Additional restitution of 29% of 2020 net income in May 2021 of 2020 net income after September 2021 • Maximum based on the ECB’s recommendation • Anticipated as soon as the ECB repeals its of 15 December 20201 recommendation, whic
Slide 15: Growing net tangible book value per share
Growing net tangible book value per share: €73.21 Net book value per share1, end of period € 82.3 79.0 2008-2020 CAGR: 73.9 75.1 74.7 9,1 +5.0% 70.9 9.3 65.0 66.6 10.6 10.0 9.9 63.1 10.7 73.21 69.7 55.6 57.1 10.0 10.9 10.7 65.1 64.8 51.9 63.3 60.2 Net tangible book value 45.7 11.5 11.7 55.7 55.0 per
Slide 16: An ambitious policy in sustainable finance
An ambitious policy in sustainable finance Leadership ambitions: strategic positioning 2016 2017 2019 2020 A founding • BNP Paribas’s • Company Engagement • Purpose: to have a positive impact and be a member of inaugural green bond Department set up world leader in sustainable finance the United iss
Slide 17: An ambitious policy in sustainable finance
An ambitious policy in sustainable finance Strong and tangible achievements in sustainable finance Strong mobilisation for financing a more sustainable economy • Recognised expertise and up-close and long-term #1 worldwide2 with $29.6bn in dialogue with all stakeholders in developing their CSR1 sust
Slide 18: An ambitious policy of engaging with society
An ambitious policy of engaging with society Transformation projects continued into 2021 Continued industrialisation of ESG1 criteria integration into the Group’s Strengthening of processes and set-ups the ESG1 set-up Systematic integration of ESG1 criteria and increased collection and use of extra-
Slide 19: 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 20: Division Results
GROUP RESULTS DIVISION RESULTS 2021 TRENDS CONCLUSION 4Q20 DETAILED RESULTS APPENDICES
Slide 21: Domestic Markets – 2020
Domestic Markets – 2020 Strong support for the economy and gains in operating efficiency Increased activity Loans • Loans: +5.4% vs. 2019, increase in all business lines, growth in corporate loans on €bn +5.4% the back of the support for the economy, and good momentum in particular in 411 434 mortga
Slide 22: DM – Focus on Retail banking networks and digital banks
DM – Focus on Retail banking networks and digital banks A customer-focused transformation Successful digital transformation of the networks to support the evolution of usages and strengthen the customer relationship One of the best digital offerings: Acceleration in mobile app uses • FRB: #1 among t
Slide 23: DM – Focus on Retail banking networks and digital banks
DM – Focus on Retail banking networks and digital banks A customer-focused transformation Corporates and Private Banking: an Digital banks and neobanks are strengthening our integrated model with strong, growth-generating set-up and are expanding franchises Banking networks providing broad, comprehe
Slide 24: DM – French Retail Banking – 2020
DM – French Retail Banking – 2020 Good level of activity in a context marked by the health crisis Strong business drive Loans • Loans: +8.8% vs. 2019, increase in individual and corporate loans; acceleration in €bn +8.8% mortgage loan production with an increase in margins 174 189 • Deposits: +16.5%
Slide 25: DM – BNL banca commerciale – 2020
DM – BNL banca commerciale – 2020 Good business activity and ongoing cost savings Growth in business activity Market share on the • Loans: +1.0%1 vs. 2019, up by more than 5% on the perimeter excluding corporate segment (loans) non-performing loans, good growth in all client segments, and continued
Slide 26: DM – Belgian Retail Banking – 2020
DM – Belgian Retail Banking – 2020 Increased business activity and positive jaws effect Growth in business activity Loans • Loans: +3.5% vs. 2019, in particular good growth in mortgage loans €bn +3.5% • Deposits: +5.3% vs. 2019, strong increase in individual customer deposits • Off-balance sheet sav
Slide 27: DM – Other Activities – 2020
DM – Other Activities – 2020 Strong growth in business activity and results Very good development of activity in all businesses Assets under management • Arval: +7.3%1 growth in the financed fleet vs. 2019; good overall performance of Personal Investors used car prices in all countries and developme
Slide 28: DM – Focus on Arval
DM – Focus on Arval A growing business with ambitious targets for 2025 A long-term vehicle Transformation of the business well under leasing specialist way 1.4 million vehicles1 as at 31.12.20 Digitalisation of journeys: (+6.4% vs. 31.12.19) Using mobile apps to meet the needs of fleet managers and
Slide 29: Domestic Markets – 2021 Momentum
Domestic Markets – 2021 Momentum The full contribution of a diversified and integrated model Consolidating solid positions amidst a recovery in economic activity Intensified cooperation between Group entities to amplify commercial momentum and to help accelerate the transformation of deposits into f
Slide 30: International Financial Services – 2020
International Financial Services – 2020 Continued business drive and operating efficiency gains during the health crisis Continued business drive and return to growth late in the year Loans outstanding1 • Return to growth in loans outstanding at Personal Finance after bottoming €bn +1.5% out in 3Q20
Slide 31: IFS – Focus on BNP Paribas Personal Finance
IFS – Focus on BNP Paribas Personal Finance Continued strengthening of a consumer credit leader Growth model based on strong and diversified positions Consolidated leadership positions: #1 consumer-loan specialist in Europe1, Change in product portfolio, >25 million customers, presence in 32 countri
Slide 32: IFS – Personal Finance – 2020
IFS – Personal Finance – 2020 Resilience of business on the back of a diversified profile - Sustained cost- adaptation efforts Gradual fading of the impact of the 2Q20 drop in production Monthly change in production • Average loans outstanding: -0.7% vs. 2019 (+0.9% at constant scope and in % (M/M-1
Slide 33: IFS – Focus on International retail networks
IFS – Focus on International retail networks Strengthened franchises Bank of the West: #5 on the West Coast1 International retail banking • Development of Private Banking in cooperation with Wealth >15 million customers, Management: $16.8bn in assets under management as at 31.12.20 12 countries, (+4
Slide 34: IFS – Europe-Mediterranean – 2020
IFS – Europe-Mediterranean – 2020 Sustained business drive in a contrasted environment Continued business drive throughout the year Loans1 • Loans: +3.9%1 vs. 2019, rebound in loan production from a low point in €bn +3.9%1 August with monthly levels higher than in 2019 • More than 90% of moratoria e
Slide 35: IFS – BancWest – 2020
IFS – BancWest – 2020 Increase in revenues and positive jaws effect Good sales and marketing drive and support to the economy Loans1 • Loans: +1.0%1 vs. 2019, very good level in loan production to individuals +1.0% (+4.3% vs. 2019), active participation in the federal assistance program to SMEs 62.0
Slide 36: IFS – Insurance and WAM – Asset flows and AuM – 2020
IFS – Insurance and WAM1 – Asset flows and AuM – 2020 Very good net asset inflows Assets under management: €1,165bn as at 31.12.20 Change in assets under management2 • +3.8% vs. 31.12.19 Foreign €bn exchange • Very good level of net asset inflows: +€54.9bn +54.9 +18.8 effect Others Total • Favourabl
Slide 37: IFS – Focus on Insurance
IFS – Focus on Insurance Platform transformed and strengthened using a dual model A dual approach based on both the Group’s integrated A highly diversified portfolio of partners model and external partnerships Established positions: world leader in creditor protection insurance, with a broad footpri
Slide 38: IFS – Insurance – 2020
IFS – Insurance – 2020 Good resilience and robust business development Activity held up well • Rebound in Savings activity with net inflows stronger late in the year and an increase in the proportion of unit-linked policies, particularly in France • Good performance of Protection in France and Asia
Slide 39: IFS – WAM – 2020
IFS – WAM1 – 2020 Very good business in Wealth Management and Asset Management Wealth Management • Very good net asset inflows, particularly in domestic markets and in Asia • Recognised expertise, awarded by Private Banker International for the 9th consecutive year • Ongoing expansion in the network
Slide 40: IFS – Focus on Asset Management
IFS – Focus on Asset Management A simplified, transformed and scalable asset management platform Business model transformed to meet market needs A diversified client franchise JV New organisational set-up and operating model using the Aladdin investment management system that was successfully rolled
Slide 41: IFS – 2021 Momentum
IFS – 2021 Momentum Rebound dynamics Consolidate strong positions amidst a recovery in economic activity Intensify cooperation with Group entities to amplify business drive and help accelerate the transformation of deposits into financial savings Continue digitalising platforms and offerings while i
Slide 42: Corporate & Institutional Banking – 2020
Corporate & Institutional Banking – 2020 Strong business drive to serve all clients Strong drive in all businesses Revenues +13.9% €bn • Financing: exceptional level of activity in syndicated loans early in the year, with momentum carrying over to bond and equity issuance, from 2Q20 • Markets: very
Slide 43: CIB: Corporate Banking – 2020
CIB: Corporate Banking – 2020 Solid growth driven by business momentum Strong business drive 2018-2020 rankings1 • Strong increase in corporate bond issuance (+44.5% vs. 2019) and Rankings and market market share gains at global level1 shares in volume #1 Investment Grade #1 EMEA • Increase in avera
Slide 44: CIB: Global Markets – 2020
CIB: Global Markets – 2020 Strong growth in revenues in an exceptional market context Robust customer activity in an exceptional market environment Trend in revenues • Primary market activity: very strong bond issuance in 2020 €m 2,304 (+23% vs. 2019); #1 for bonds in euros1 290 1,711 • Rates and fo
Slide 45: CIB: Securities Services – 2020
CIB: Securities Services – 2020 Solid development drive Well-oriented business drive Rebound in assets under custody (AuC) • Finalisation in 4Q20 of the partnership signed in 2019 with Allfunds and under administration (AuA) to create a global leader in fund distribution services, with the End of pe
Slide 46: Corporate & Institutional Banking
Corporate & Institutional Banking Success of a long-term, client-focused strategy A platform bridging corporate clients’ financing needs with institutional clients’ investment needs A good balance between two solid client franchises Breakdown in customer revenue1 • Coverage of more than 18,000 corpo
Slide 47: Corporate & Institutional Banking – 2020
Corporate & Institutional Banking – 2020 Relevance of a diversified model integrated within the Group Diversified CIB model integrated within the Group has proven its robustness during the crisis Level of activity strengthened by business diversification Breakdown in revenue by businesses • A broad
Slide 48: Corporate & Institutional Banking
Corporate & Institutional Banking Successful transformation in tune with current developments An in-depth industrial and digital transformation Success of operating efficiency plans Cost-income ratio, in% Platform flexibility and efficiency -7.6pts • Capacity to absorb spikes in activity, as demonst
Slide 49: Corporate & Institutional Banking – 2021 Momentum
Corporate & Institutional Banking – 2021 Momentum Expanding development momentum Accelerating the development of the Leveraging initiatives already under way Equity businesses Stepping up geographic development Rolling out a broader prime services offering • Intensifying country plans launched in EM
Slide 50: 2021 Trends
GROUP RESULTS DIVISION RESULTS 2021 TRENDS CONCLUSION 4Q20 DETAILED RESULTS APPENDICES
Slide 51: Economic context
Economic context Rebound in economic activity expected in 2H21 with the developments on the health front, but amidst a persistent low-interest-rate environment Favourable GDP growth forecasts Monetary adjustment with lower interest rates than expected +4.2 2020 2021E 1.5 10Y BTP 1.3 1.4 Euro zone GD
Slide 52: 2021 trend: Revenue growth with economic activity returning to normal
2021 trend: Revenue growth with economic activity progressively returning to normal Moderate increase in revenues expected as economic activity returns progressively to normal FY2020 FY2021 International Domestic DM Markets CIB Financial Services Effect of the rebound on Increase in international Ba
Slide 53: 2021 trend: Operating expenses
2021 trend: Operating expenses Proven effectiveness of the digital and industrial transformation Acceleration in uses with the health crisis Stepping up of projects to Ramping up of platforms Accompanying further transforming and digitalised journeys business recovery the operating model Cost stabil
Slide 54: 2021 trend: Decrease in the cost of risk
2021 trend: Decrease in the cost of risk 2020 CoR Anticipation of the effects of the health crisis 2019 CoR in 2020 and 2021 50 bps 40 bps 39 bps <1 bp 16 bps 66 bps €1.4bn (16 bps) provisioning Provisions on non- Provisions on performing of performing loans in 2020 performing loans (stage 3) loans
Slide 55: Preparation of the 2022-2025 plan
Preparation of the 2022-2025 plan BNP Paribas is well-positioned to enter a new phase of growth Strong franchises and Intensification of market share gains synergies Accelerating Mutualising initiatives between CIB development with the networks and accelerating the new growth initiatives digital off
Slide 56: Conclusion
GROUP RESULTS DIVISION RESULTS 2021 TRENDS CONCLUSION 4Q20 DETAILED RESULTS APPENDICES
Slide 57: Conclusion
Conclusion Strong mobilisation to serve the economy and society Employee commitment and quick operational adjustment to the health crisis Key contribution from digital and industrial transformation Diversified and integrated model to support business dynamic in all phases of the crisis Reinforced an
Slide 58: 4Q20 Detailed Results
GROUP RESULTS DIVISION RESULTS 2021 TRENDS CONCLUSION 4Q20 DETAILED RESULTS APPENDICES
Slide 59: Macroeconomic scenarios and cost of risk
Macroeconomic scenarios and cost of risk Overall scenario of a gradual and differentiated recovery Central scenarios • Return to a GDP level comparable to 2019 anticipated in mid- Central scenario, Eurozone, GDP index (Q4 2019 = 100) 2022 in Europe on average 105 • Differentiated recovery momentum f
Slide 60: Moratoria
Moratoria1 Efficient resorption of loans having exited moratorium 700,000 moratoria2 expired by 31 December 2020 More than 80% of moratoria already expired in total outstandings More than 98%3 of loans under expired moratoria are performing % Non-performing expired loans4 DM networks 1.2% Other DMs
Slide 61: A diversified model
A diversified model A prudent risk profile with no sector concentration Highly diversified by sector: no sector represents more than 5% of the total portfolio High selectivity at origination Limited exposures to sectors considered as sensitive Aircraft: 0.7% of total gross commitments1 Oil & Gas: 1.
Slide 62: Main exceptional items – 4Q20
Main exceptional items – 4Q20 Exceptional items 4Q20 4Q19 Revenues • Accounting impact of a swap set up for the transfer of an activity (Corporate Centre) -€104m Total exceptional revenues -€104m Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€91m -€244m • IT rei
Slide 63: Consolidated Group – 4Q20
Consolidated Group – 4Q20 Resilience of results 4Q20 4Q20 vs. 4Q19 4Q20 4Q19 vs. 4Q19 At constant scope & exchange rates Revenues €10,827m €11,333m -4.5% -0.4% Operating expenses -€7,562m -€8,032m -5.9% -3.5% Gross operating income €3,265m €3,301m -1.1% +7.0% Cost of risk -€1,599m -€966m x 1.7 x 1.7
Slide 64: BNP Paribas Group – 4Q20
BNP Paribas Group – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 4Q19 3Q20 2019 Group n.s. n.s. n.s. Revenues 10,827 11,333 -4.5% 10,885 -0.5% 44,275 44,597 -0.7% Operating Expenses and Dep. -7,562 -8,032 -5.9% -7,137 +6.0% -30,194 -31,337 -3.6% Gross Operating Income 3,265 3,301 -1.1% 3,74
Slide 65: Retail Banking and Services – 4Q20
Retail Banking and Services – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 7,753 8,286 -6.4% 7,677 +1.0% 30,867 32,433 -4.8% Operating Expenses and Dep. -5,089 -5,274 -3.5% -4,855 +4.8% -20,384 -20,946 -2.7% Gross Operating Income 2,664 3,012 -11.6% 2,822 -
Slide 66: Domestic Markets – 4Q20
Domestic Markets – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 3,976 4,036 -1.5% 3,867 +2.8% 15,477 15,814 -2.1% Operating Expenses and Dep. -2,610 -2,635 -1.0% -2,543 +2.6% -10,568 -10,741 -1.6% Gross Operating Income 1,366 1,402 -2.5% 1,324 +3.2% 4,909 5
Slide 67: DM – French Retail Banking – 4Q20
DM – French Retail Banking – 4Q20 (excluding PEL/CEL effects) 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 1,516 1,569 -3.4% 1,496 +1.3% 5,944 6,328 -6.1% Incl. Net Interest Income 855 889 -3.8% 852 +0.4% 3,303 3,591 -8.0% Incl. Commissions 661 679 -2.8% 645 +2.
Slide 68: DM – French Retail Banking
DM – French Retail Banking Volumes Outstandings Outstandings %Var/4Q19 %Var/3Q20 %Var/2019 Average outstandings (€bn) 4Q20 2020 LOANS 196.7 +10.6% +1.2% 189.1 +8.8% Individual Customers 100.9 +4.0% +1.5% 99.0 +4.3% Incl. Mortgages 90.1 +5.0% +1.6% 88.3 +5.2% Incl. Consumer Lending 10.8 -3.6% +1.0% 1
Slide 69: DM – BNL banca commerciale – 4Q20
DM – BNL banca commerciale – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 4Q19 3Q20 2019 Revenues 694 755 -8.1% 669 +3.7% 2,671 2,778 -3.8% Operating Expenses and Dep. -434 -450 -3.6% -426 +1.9% -1,746 -1,800 -3.0% Gross Operating Income 260 305 -14.6% 244 +6.8% 925 978 -5.4% Cost of Risk -
Slide 70: DM – BNL banca commerciale
DM – BNL banca commerciale Volumes Outstandings Outstandings %Var/4Q19 %Var/3Q20 %Var/2019 Average outstandings (€bn) 4Q20 2020 LOANS 78.0 +6.7% +1.0% 75.9 +1.0% Individual Customers 40.3 +5.8% +1.5% 39.6 +2.2% Incl. Mortgages 25.5 +4.2% +0.8% 25.4 +2.9% Incl. Consumer Lending 4.7 +2.4% +1.9% 4.8 +5
Slide 71: DM – Belgian Retail Banking – 4Q20
DM – Belgian Retail Banking – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 4Q19 3Q20 2019 Revenues 861 878 -1.9% 851 +1.1% 3,432 3,524 -2.6% Operating Expenses and Dep. -556 -560 -0.7% -523 +6.3% -2,408 -2,480 -2.9% Gross Operating Income 305 318 -4.0% 329 -7.1% 1,024 1,044 -1.9% Cost of Ri
Slide 72: DM – Belgian Retail Banking
DM – Belgian Retail Banking Volumes Outstandings Outstandings %Var/4Q19 %Var/3Q20 %Var/2019 Average outstandings (€bn) 4Q20 2020 LOANS 114.4 +1.7% -0.0% 114.6 +3.5% Individual Customers 73.8 +3.2% +0.8% 73.1 +4.1% Incl. Mortgages 53.9 +3.3% +0.8% 53.5 +4.6% Incl. Consumer Lending 0.2 -25.8% -29.6% 0
Slide 73: DM – Other Activities – 4Q20
DM – Other Activities – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 905 834 +8.5% 850 +6.5% 3,430 3,184 +7.7% Operating Expenses and Dep. -494 -473 +4.6% -469 +5.3% -1,923 -1,859 +3.4% Gross Operating Income 411 362 +13.6% 380 +8.0% 1,506 1,325 +13.7% Cost
Slide 74: DM – LRB – Personal Investors
DM – LRB – Personal Investors Luxembourg Retail Banking (LRB) Loans vs. 4Q19: good growth, mainly driven by 4Q20 %Var/4Q19 %Var/3Q20 2020 %Var/2019 Average outstandings (€bn) mortgage loans and very LOANS 11.6 +6.0% +1.8% 11.4 +8.2% good drive in corporate loans Individual Customers 7.5 +6.3% +2.4%
Slide 75: DM – Arval – Leasing Solutions – Nickel
DM – Arval – Leasing Solutions – Nickel Arval %Var/4Q19 %Var/3Q20 %Var/2019 at constant at constant at constant 4Q20 2020 scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rates Consolidated outstandings 22.3 +7.6% +9.5%
Slide 76: International Financial Services – 4Q20
International Financial Services – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 4Q19 3Q20 2019 Revenues 3,915 4,391 -10.8% 3,943 -0.7% 15,938 17,183 -7.2% Operating Expenses and Dep. -2,555 -2,715 -5.9% -2,382 +7.3% -10,117 -10,507 -3.7% Gross Operating Income 1,360 1,675 -18.8% 1,561 -12.9
Slide 77: IFS – Personal Finance - 4Q20
IFS – Personal Finance - 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 1,365 1,485 -8.1% 1,343 +1.6% 5,485 5,796 -5.4% Operating Expenses and Dep. -687 -721 -4.7% -641 +7.3% -2,756 -2,857 -3.5% Gross Operating Income 678 764 -11.3% 703 -3.5% 2,729 2,939 -7.1
Slide 78: IFS – Personal Finance
IFS – Personal Finance Volumes and risks Outstandings %Var/4Q19 %Var/3Q20 Outstandings %Var/2019 at constant at constant at constant scope and scope and scope and 4Q20 historical historical 2020 historical exchange exchange exchange Average outstandings (€bn) rates rates rates TOTAL CONSOLIDATED OUT
Slide 79: IFS – Europe-Mediterranean – 4Q20
IFS – Europe-Mediterranean – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 527 702 -25.0% 561 -6.1% 2,362 2,699 -12.5% Operating Expenses and Dep. -402 -459 -12.4% -405 -0.7% -1,711 -1,799 -4.9% Gross Operating Income 125 243 -48.7% 156 -20.1% 651 900 -27.7%
Slide 80: IFS – Europe-Mediterranean
IFS – Europe-Mediterranean Volumes and risks Outstandings %Var/4Q19 %Var/3Q20 Outstandings %Var/2019 at constant at constant at constant scope and scope and scope and 4Q20 historical historical 2020 historical exchange exchange exchange Average outstandings (€bn) n.s. n.s.rates n.s. n.s.rates n.s. n
Slide 81: IFS – BancWest - 4Q20
IFS – BancWest - 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 594 611 -2.8% 627 -5.2% 2,460 2,375 +3.6% Operating Expenses and Dep. -423 -406 +4.3% -403 +5.1% -1,723 -1,712 +0.7% Gross Operating Income 171 205 -16.8% 224 -23.8% 737 663 +11.2% Cost of Risk -
Slide 82: IFS – BancWest
IFS – BancWest Volumes Outstandings %Var/4Q19 %Var/3Q20 Outstandings %Var/2019 at constant at constant at constant scope and scope and scope and 4Q20 historical historical 2020 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
Slide 83: IFS – Insurance and WAM
IFS – Insurance and WAM1 Business volumes %Var/ %Var/ 31.12.20 31.12.19 30.09.20 €bn 31.12.19 30.09.20 Assets under management (€bn) 1,165.4 1,122.9 +3.8% 1,109.6 +5.0% Asset Management 483 440 +9.8% 445 +8.4% Wealth Management 390 393 -0.9% 380 +2.6% Real Estate Services 29 30 -4.6% 29 +0.4% Insura
Slide 84: IFS – Insurance & WAM
IFS – Insurance & WAM1 Insurance and WAM Asset management Breakdown of assets by client segment Breakdown in managed assets as at 31.12.20 €1,123bn €1,165bn Alternative and others Corporates & 5% 33% Institutionals 35% Bonds 29% Diversified 28% 52% Individuals 50% ▶ 53% External Money-market 15% 15%
Slide 85: IFS – Insurance – 4Q20
IFS – Insurance – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 622 654 -4.9% 697 -10.7% 2,725 3,068 -11.2% Operating Expenses and Dep. -385 -380 +1.2% -347 +11.0% -1,463 -1,500 -2.5% Gross Operating Income 237 274 -13.4% 350 -32.3% 1,263 1,568 -19.5% Cost o
Slide 86: IFS – Wealth and Asset Management - 4Q20
IFS – Wealth and Asset Management - 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 826 957 -13.6% 734 +12.6% 2,982 3,320 -10.2% Operating Expenses and Dep. -669 -760 -11.9% -598 +11.9% -2,510 -2,682 -6.4% Gross Operating Income 157 197 -20.0% 136 +15.6% 472 6
Slide 87: Corporate and Institutional Banking – 4Q20
Corporate and Institutional Banking – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 4Q19 3Q20 2019 Revenues 3,315 3,101 +6.9% 3,372 -1.7% 13,763 12,080 +13.9% Operating Expenses and Dep. -2,190 -2,229 -1.8% -2,117 +3.5% -8,920 -8,663 +3.0% Gross Operating Income 1,125 871 +29.1% 1,255 -10.4%
Slide 88: Corporate Banking – 4Q20
Corporate and Institutional Banking Corporate Banking – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 1,281 1,210 +5.9% 1,118 +14.6% 4,727 4,312 +9.6% Operating Expenses and Dep. -645 -668 -3.5% -598 +7.7% -2,623 -2,599 +0.9% Gross Operating Income 636 541 +
Slide 89: Global Markets – 4Q20
Corporate and Institutional Banking Global Markets – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 1,498 1,340 +11.8% 1,711 -12.4% 6,819 5,571 +22.4% incl. FICC 1,002 820 +22.1% 1,245 -19.5% 5,652 3,563 +58.6% incl. Equity & Prime Services 497 520 -4.5% 466
Slide 90: Market risks – 4Q20
Corporate and Institutional Banking Market risks – 4Q20 Average 99% 1-day interval VaR ( Value at Risk) €m Commodities Forex Equities Interest Rates Credit Nettings 54 43 43 43 46 45 42 5 35 35 33 36 37 6 6 34 35 5 9 6 3 29 28 31 8 28 31 31 27 27 15 14 4 3 4 4 9 11 14 20 24 6 7 5 22 22 25 24 23 23 2
Slide 91: Securities Services – 4Q20
Corporate and Institutional Banking Securities Services – 4Q20 4Q20 4Q19 4Q20 / 3Q20 4Q20 / 2020 2019 2020 / €m 0 0 4Q19 0 3Q20 0 0 2019 Revenues 536 551 -2.8% 544 -1.5% 2,217 2,198 +0.9% Operating Expenses and Dep. -457 -444 +3.1% -454 +0.6% -1,845 -1,833 +0.6% Gross Operating Income 79 107 -26.8%
Slide 92: Corporate Centre – 4Q20
Corporate Centre – 4Q20 €m 4Q20 4Q19 3Q20 2020 2019 Revenues -241 -45 -165 -358 71 Operating Expenses and Dep. -283 -529 -165 -890 -1,728 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -150 -420 -84 -389 -1,217 Gross Operating Income -524 -574 -330 -1,249 -1,657 Cost of R
Slide 93: Corporate Centre – 2020
Corporate Centre – 2020 Revenues • Lower contribution of Principal Investments arising from the crisis • Accounting impact of a swap set up for the transfer of an activity : -€104m • Impact of a negative non-recurring item in 3Q20 • Revaluation of proprietary credit risk included in derivatives (DVA
Slide 94: Appendices
GROUP RESULTS DIVISION RESULTS 2021 TRENDS CONCLUSION 4Q20 DETAILED RESULTS APPENDICES
Slide 95: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 31-Dec-20 31-Dec-19 Number of Shares (end of period) 1,250 1,250 Number of Shares excluding Treasury Shares (end of period) 1,248 1,249 Average number of Shares outstanding excluding Treasury Shares 1,248 1,248 Earnings per Share i
Slide 96: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 31-Dec-20 31-Dec-19 Total Capital Ratio (a) 16.4% 15.5% Tier 1 Ratio (a) 14.2% 13.5% Common equity Tier 1 ratio (a) 12.8% 12.1% (a) CRD4, on risk-w eighted assets of € 696 bn as at 31.12.20 and € 669 bn as at 31.12.19; refer to slide 108 Book va
Slide 97: Return on Equity and Permanent Shareholders' Equity
Return on Equity and Permanent Shareholders’ Equity Calculation of Return on Equity 31-Dec-2019 31/12/2019 in millions of euros 31-Dec-20 (with 2019 net income (published) placed into reserves (a)) Net income Group share 7,067 8,173 8,173 Remuneration net of tax of Undated Super Subordinated Notes a
Slide 98: A Solid Financial Structure
A Solid Financial Structure Doubtful loans/gross outstandings 31-Dec-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 99: Common Equity Tier 1 ratio
Common Equity Tier 1 ratio Basel 3 Common Equity Tier 1 ratio1 (Accounting capital to prudential capital reconciliation) 2 31-Dec-19 €bn 31-Dec-20 30-Sep-20 3 (published) Consolidated Equity 117.4 116.4 111.8 Undated super subordinated notes -9.9 -10.3 -8.7 Planned distribution of 2019 dividend -3.9
Slide 100: Medium/Long Term Funding Outstanding
Medium/Long Term Funding Outstanding Continued presence in debt markets 2020 MLT wholesale funding programme: €35bn 2021 MLT wholesale funding programme6: €36bn 2020 MLT regulatory issuance plan: €17bn 2021 MLT regulatory issuance plan6: ~ €17bn • Capital instruments: €4bn; €4.4bn issued1 • Capital
Slide 101: TLAC ratio: 4.1% above the requirement
TLAC ratio: 4.1% above the requirement without calling on the Preferred Senior debt allowance 24.1% TLAC requirement as at 31.12.20: 20.02% of RWA • Including capital conservation buffer, G-SIB buffer and 20.02% BNP Paribas countercyclical capital buffer (2bps as of 4Q20) TLAC ratio TLAC as at 31.12
Slide 102: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements as at 31.12.201 “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 103: Variation in the Cost of risk by Business Unit (1/3)
Variation in the Cost of risk by Business Unit (1/3) Cost of risk vs. Customer loans at the beginning of the period (in annualised bp) Group • Cost of risk: €1,599m +€354m vs. 3Q20 66 67 65 74 +€633m vs. 4Q19 57 39 35 39 38 30 41 46 • Increase in the cost of risk vs. 4Q19 with the effects of the
Slide 104: Variation in the Cost of risk by Business Unit (2/3)
Variation in the Cost of risk by Business Unit (2/3) Cost of risk vs. Customer loans at the beginning of the period (in annualised bp) FRB • Cost of risk: €169m +€32m vs. 3Q20 +€70m vs. 4Q19 21 16 17 25 15 17 16 21 21 18 27 32 • Contained increase in the cost of risk with a specific file 2017 20
Slide 105: Variation in the Cost of risk by Business Unit (3/3)
Variation in the Cost of risk by Business Unit (3/3) Cost of risk vs. Customer loans at the beginning of the period (in annualised bp) Personal Finance • Cost of risk: €581m +€198m vs. 3Q20 240 253 212 +€211m vs. 4Q19 187 165 147 141 145 145 123 154 156 • Increase in the cost of risk related in
Slide 106: 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 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3Q20 4Q20 2020 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
Slide 107: 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 1Q19 2Q19 3Q19 4Q19 2019 1Q20 2Q20 3T20 4Q20 2020 1 BancWest 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 58.1
Slide 108: Risk-Weighted Assets
Risk-Weighted Assets Risk-Weighted Assets1: €696bn as at 31.12.20 (€669bn as at 31.12.19) • The +€27bn change is mainly explained by: • +€11bn increase in counterparty risk • +€6bn increase in market risk bn€ 31.12.20 30.09.20 31.12.19 Credit risk 527 519 524 Operational Risk 71 69 69 Counterparty R
Slide 109: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as 31.12.20 Other Activities: 5% FRB: 14% Global Markets & Securities Services: 14% BNL bc: 7% BRB: 7% Corporate Banking: 17% Other Domestic Markets2: 6% Insurance & WAM: 7% Personal Finance: 10% BancWest: 6% Retail Banking &
Slide 110: 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 10% Finance 7% Communication Services 2% Insurance 2% Transport & logistics 10% Equipment excluding
Slide 111: Breakdown of Commitments by Region
Breakdown of Commitments by Region Rest of the World 5% Asia Pacific 5% North America 12% France 34% Other European countries 19% Italy 10% Belgium & Luxembourg 15% Total gross commitments on and off balance sheet, unweighted = €1,783bn1 as at 31.12.20 1. Excluding Equity credit exposure class 2020