Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — FY2021 Earnings Presentation
109 slides from Bnp Paribas S.a. Class A's earnings presentation, Feb 8, 2022
Slide 1: 2021 Full Year Results
2021 FULL YEAR RESULTS 8 February 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: 2021: A very strong increase in results
2021: A very strong increase in results Sustained revenue growth Revenues: • Very good momentum at Domestic Markets +4.4% vs. 2020 • Increase in Asset Management and Insurance revenues (+3.7% vs. 2019) • Further increase at CIB Costs: Positive jaws effect despite the increase in the SRF1 contributio
Slide 4: A robust performance
A robust performance 2021 Revenues: €46,235m 2021 Operating expenses (excluding taxes subject to IFRIC 21): €29,595m Revenue growth consolidated by +3.7% -1.9% diversification and a comprehensive +4.4% approach of the needs of customers +2.5% and of the economy Investment capacity and positive 44.6
Slide 5: Group Results
GROUP RESULTS DIVISION RESULTS GROWTH, TECHNOLOGY & SUSTAINABILITY 2025 CONCLUSION 4Q21 DETAILED RESULTS APPENDICES
Slide 6: Main exceptional items – 2021
Main exceptional items – 2021 Exceptional items 2021 2020 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) -€164m -€211m • IT re
Slide 7: 2021 – Consolidated Group
2021 – Consolidated Group Very solid results, strong growth and positive jaws effect 2021 2021 2021 2020 vs. 2020 2019 vs. 2019 Revenues €46,235m €44,275m +4.4% €44,597m +3.7% Operating expenses -€31,111m -€30,194m +3.0% -€31,337m -0.7% Gross operating income €15,124m €14,081m +7.4% €13,260m +14.1%
Slide 8: 2021 – Revenues
2021 – Revenues Solid growth driven by a diversified model Domestic International Financial Services CIB Group Markets1 +5.2% -1.2% +3.4% +4.4% at constant scope & +5.2% +1.7% +4.1% +5.4% exchange rates 15,477 16,275 15,938 15,751 13,763 14,236 2020 €m 2021 Domestic Markets: strong increase in rev
Slide 9: 2021 – Operating expenses
2021 – Operating expenses Supporting growth – Positive jaws effect Domestic International Markets1 Financial Services CIB Group +2.0% +1.1% +5.4% +3.0% +1.9% +4.2% +4.0% +3.6% at constant scope & exchange rates 10,568 10,784 10,117 10,231 8,920 9,400 2020 2021 €m Domestic Markets: support for grow
Slide 10: Cost of risk – 2021 (1/2)
Cost of risk – 2021 (1/2) Cost of risk vs. Customer loans outstanding at the beginning of the period (in annualised bps) Group • Cost of risk: €2,925m (-€2,792m vs. 2020) • Cost of risk at a low level due to the limited number of new defaults and a high basis of comparison in 2020 66 39 • Marginal r
Slide 11: Cost of risk – 2021 (2/2)
Cost of risk – 2021 (2/2) Cost of risk vs. Customer loans outstanding at the beginning of the period (in annualised bps) FRB Europe Mediterranean • €441m (-€55m vs. 2020) • €144m (-€292m vs. 2020) • Cost of risk at a low level • Strong decrease in the cost of risk 82 98 111 16 17 25 21 39 2018 2019
Slide 12: 2021 – A solid financial structure
2021 – A solid financial structure CET1 ratio: 12.9% as at 31.12.211 (+10 bps vs. 31.12.20) CET1 ratio • 2021 results, after taking into account a 50% pay-out ratio and the impact of the 12.9% 12.8% execution of the €900m share buyback programme in 4Q21: +50 bps • Increase in risk-weighted assets at
Slide 13: Continuous and strong value creation throughout the cycle
Continuous and strong value creation throughout the cycle Pay-out ratio of 60% Steady increase in net tangible book value per Increase in pay-out ratio in 2021 share: €78.7 +€5.5 (+7.4%) vs. 31.12.20 Pay-out ratio of 60%2 € 2008-2021 CAGR1: +5.2% 88.0 Total amount distributed: €5.4bn 82.3 9.4 79.0 7
Slide 14: 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 15: An ambitious policy of engaging with society
An ambitious policy of engaging with society Mobilisation by all business lines for sustainable finance Net-Zero commitment to strengthen and accelerate decarbonisation strategies, with the signing of the NZBA1, NZAOA1, and NZAMi1 Financing a #2 in green bonds worldwide with €46,1bn2 and #1 in susta
Slide 16: Division Results
GROUP RESULTS DIVISION RESULTS GROWTH, TECHNOLOGY & SUSTAINABILITY 2025 CONCLUSION 4Q21 DETAILED RESULTS APPENDICES
Slide 17: Domestic Markets – 2021
Domestic Markets – 2021 Increase in activity, strong rise in results Very good business drive Loans • Loans: +4.2% vs. 2020, increase in all businesses, rise in individual and +4.2% corporate loans €bn 434 452 • Deposits: +8.6% vs. 2020, increase driven by the effects of the public health 54 58 Othe
Slide 18: DM – French Retail Banking – 2021
DM – French Retail Banking – 2021 Sustained business drive and strong growth in results Acceleration in business drive throughout the year Loans • Loans: +5.4% vs. 2020, increase in loans, particularly to individual customers, with a +5.4% dynamic mortgage loan production; acceleration late in the y
Slide 19: DM – BNL banca commerciale – 2021
DM – BNL banca commerciale – 2021 Good business drive Growth in business activity Market share on the • Loans: +1.5% vs. 2020, +3.7% when excluding non-performing loans; corporate segment (loans)1 improved market shares across all customer segments 6.6% • Deposits: +12.3% vs. 2020, growth across all
Slide 20: DM – Belgian Retail Banking – 2021
DM – Belgian Retail Banking– 2021 Good level of activity and strong rise in results Continuation of the good business drive Mutual fund outstandings • Loans: +2.4% vs. 2020, increase in all customer segments +17.5% • Deposits: +6.0% vs. 2020, increase in all customer segments • Acceleration in digit
Slide 21: DM – Other Activities – 2021
DM – Other Activities – 2021 Strong growth in results Strong sales and marketing drive in all businesses Arval financed fleet1 • Arval: very good performance driven by the expansion of the financed fleet +14.0% (+6.2%1 vs. 2020) and the increase in used car prices; partnership signed with Jaguar Lan
Slide 22: International Financial Services – 2021
International Financial Services – 2021 Strong rise in results Good business drive in international retail networks and at Personal Assets under management2 Finance +9.1% • Increase in production at Personal Finance (+11.5% vs. 2020) with the evolution in the public-health situation; sustained devel
Slide 23: IFS – Personal Finance – 2021
IFS – Personal Finance – 2021 Strong increase in results, driven by a lower cost of risk Sustained business drive Change in product portfolio • Increase in production with the evolution of the public-health situation (+11.5% vs. 2020), supporting growth in end of period loans 10% Retailers 9% 13% Cr
Slide 24: IFS – Europe-Mediterranean – 2021
IFS – Europe-Mediterranean – 2021 Confirmation of a good business momentum Strong business activity Loans1 • Loans: +4.9%1 vs. 2020, very good loan growth across all customer +4.9% segments 34.3 32.7 • Acceleration in loan production (+24.1%2 vs. 2020) during the year in all countries, both for indi
Slide 25: IFS – BancWest – 2021
IFS – BancWest – 2021 Sustained business drive and strong increase in result Dynamic business drive in lending business Loan production excluding • Good level of loan production1 (+8.9%2 vs. 2020), with in particular a very PPP loans1 good drive in loan to individuals (+30.3%2 vs. 2020) and SMEs (+5
Slide 26: IFS – Insurance and WAM – Asset inflows and AuM – 2021
IFS – Insurance and WAM1 – Asset inflows and AuM – 2021 Very good net asset inflows and favourable performance effect Assets under management: €1,271bn as at 31.12.21 Change in assets under management 2 • +9.1% vs. 31.12.20 €bn +59.4 +15.9 Others • Performance effect: Increase due to positive market
Slide 27: IFS – Insurance – 2021
IFS – Insurance – 2021 Strong business drive Gross asset inflows in Continued pick-up in activity driven by the diversification of the Savings model • Sustained performance in Savings both in France and internationally, €bn +42.2% particularly in Italy and Luxembourg; gross asset inflows rose sharpl
Slide 28: IFS – Wealth and Asset Management – 2021
IFS – Wealth and Asset Management1 – 2021 Very good performance Wealth Management net Wealth Management asset inflows • Very good net asset inflows, up vs. 2020 +18.9% • Growth in financial fees driven by the increase in assets under management and transaction volumes 15.3 Asset Management 12.9 • Ve
Slide 29: Corporate & Institutional Banking – 2021
Corporate & Institutional Banking – 2021 Increase in activity and sharp rise in results Very good activity level in all businesses Growth in revenues • Financing of the economy: increase in total volume of transactions led €bn +3.4% compared with 2020 high level, driven by equity issuance1 • Markets
Slide 30: CIB – Corporate Banking – 2021
CIB – Corporate Banking – 2021 Very good business drive and strong growth in activity Further increase in business volumes Growth in revenues • Increase in financing raised for clients worldwide on the syndicated loan, +7.6% €m bond and equity markets (>€410bn, +2.8% vs. 2020)1 • Steady increase in
Slide 31: CIB – Global Markets – 2021
CIB – Global Markets – 2021 Good level of revenues sustained by diversification Strategic development of platforms Growth in revenues • Equity: BNP Paribas Exane fully consolidated, #1 in European equity Stable vs. 2020 research for the fifth consecutive year2 €m 6,819 6,820 • Prime Services: platfo
Slide 32: CIB – Securities Services – 2021
CIB – Securities Services – 2021 Sustained and steady growth of the platform Very strong business drive Assets under custody (AuC) • Progressive onboardings of new clients, including a very and under administration (AuA) significant mandate (>€400bn in assets) in the euro zone End of period1 +15.0%
Slide 33: Growth, Technology & Sustainability 2025
GROUP RESULTS DIVISION RESULTS GROWTH, TECHNOLOGY & SUSTAINABILITY 2025 CONCLUSION 4Q21 DETAILED RESULTS APPENDICES
Slide 34: A distinctive model positioned to perform in all environments
A distinctive model positioned to perform and to deliver in all environments Client-centric Integrated Diversified At scale approach powered by flow Set-up with complete by client segments, with powerful execution businesses & strong risk coverage of client needs regions, sectors and strengthened by
Slide 35: A European leader uniquely positioned on powerful platforms
A European leader uniquely positioned on the back of powerful platforms & strong customer franchises Leading European platforms …strategically aligned to best serve in value-added businesses… clients & partners on a long-term basis Leader in flow Leader in Corporate & Strong client franchises in Cor
Slide 36: Operating Revenues: a diversified model
A diversified model creating bridges while sustaining growth & resilience Strong focus on businesses and client franchises with leading positions CIB Corporate & Institutional Commercial, Personal Banking and Services1 Investment & Banking Protection Services Commercial & Personal Banking1 Specialis
Slide 37: Distinctive model sustained its development and is prepared to continue
BNP Paribas’ distinctive model has sustained its development and is fully prepared to continue to grow Adaptation to low Covid-19 crisis Strong increase Increase in bank interest rate environment (PMI composite1) in deposits levies (IFRIC 212) Despite the shock €m +33.5% €bn X1.4 of the public OAT 1
Slide 38: Benefiting from distinctive model in economic recovery
BNP Paribas will continue to benefit from its distinctive model in a context of economic recovery with still some short-term pressures Economic normalisation post-2021 rebound Conservative assumption of a limited rise in interest rates GDP growth (%)1: normalisation Inflation 1: contained & steady I
Slide 39: Growth, Technology & Sustainability 2025
Growth, Technology & Sustainability 2025 Uniquely positioned to deliver profitable growth Leverage the strength of the …with the full benefit of the …strategically aligned to leading platforms in integrated & transformed serve clients & partners… Europe… operating model Technology & Deployment of su
Slide 40: BNP Paribas' ambitions for 2025
BNP Paribas’ ambitions for 2025 2022-2025 financial objectives in brief Pursue an ambitious and disciplined growth Target Target 2025 Cible 2024: 12.9% 4% >100% CAGR 2021-20251 >11% 4% Basel 3 (CRR2) fully loaded Revenues ROTE2 CET1 2025: 12.0% >+3.5% Basel 3 finalised Basel 3 finalised (CRR3) fully
Slide 41: Commercial, Personal Banking and Services - 2025 vision
Commercial, Personal Banking and Services - 2025 vision Performing and Nimble Bank & Services ,Trusted Companions, for & beyond banking, in the best interests of customers & society Further improvement in recommendation from our customers & employees A client-centric organisation powered by agile wa
Slide 42: Commercial, Personal Banking and Services - 2025 strategic plan
Commercial, Personal Banking and Services - 2025 strategic plan A clear path for growth Accelerating the transformation, leveraging on the strengths & leading positions to build a stronger model and respond to headwinds 2025 targets1 Accelerate the strong profitable Revenues: CAGR 21-25 ~+5% growth
Slide 43: Investment & Protection Services - 2025 vision
Investment & Protection Services - 2025 vision Become a reference European player in protection, savings and sustainable investments Full-fledged offering and distribution network • Widened range & complete suite of solutions and geographical coverage • Fully activated Private Assets franchise • Inc
Slide 44: Investment & Protection Services - 2025 Strategic plan
Investment & Protection Services - 2025 Strategic plan Foster growth across Business Lines, through enhanced solutions to clients & distributors 3 strategic pillars to strengthen 2025 targets3 positions and capture new growth • From a transactional approach to a holistic & Revenues: CAGR 21-25 ~+4.5
Slide 45: Corporate & Institutional Banking – 2025 Vision
Corporate & Institutional Banking – 2025 Vision Be the Europe-based preferred partner for clients for the long-term Building on BNP Paribas’ integrated model, tech platforms and sustainability leadership The first Europe-based among global Tier 1 CIBs, trusted advisor in Sustainability 2025 roadmap
Slide 46: Corporate & Institutional Banking – 2025 Strategic plan
Corporate & Institutional Banking – 2025 Strategic plan A CIB at scale, building on BNP Paribas’ strengths, delivering strong profitability Build on core assets #1 go-to partner • Low Carbon Transition Group 2025 targets for ESG transition • NZBA / PACTA1 ambition • ESG solutions across businesses R
Slide 47: Technology & industrialisation, key pillars of operational efficiency
Technology & industrialisation, key pillars & cornerstones of operational efficiency improvement Important levers, successfully deployed at BNP Paribas, contributing to operational efficiency and enhanced client & Digitalisation of Other levers: employee experience processes • optimisation of the se
Slide 48: Technology & industrialisation: cost/income improvement
Technology & industrialisation, key pillars & cornerstones of operational efficiency improvement Positive jaws effects through Significant improvement in cost / income ratio in all divisions 2021-2025 period Average CIB Jaws effect C/I ratio3 C/I ratio 2021-20251 C/I ratio2 >+2% Business transformat
Slide 49: Sustainable finance & ESG – 2025 strategic plan
Sustainable finance & ESG1 – 2025 strategic plan Accelerating on the implementation of our commitments 3 strategic pillars Trajectory for a reduction in CO2 emissions corresponding to financing of the sectors with the highest levels of emissions (NZBA) Aligning our portfolios with our Aligning t
Slide 50: Sustainable finance & ESG – Group mobilisation
Sustainable finance & ESG – 2025 strategic plan Group mobilisation Mobilising our distinctive model, with five priority areas aligned with our clients’ objectives and the United Nations SDGs1 €350bn mobilised between now and 2025 through loans and sustainable bonds issuances, related to environmen
Slide 51: New reporting structure from 1Q22
New reporting structure aligned with the organisational set up in 2021 & enriched disclosure Current reporting structure as of 2021 New reporting structure from 1Q22 French Retail Belgian Retail France Belgium Banking Banking BNL bc (ex FRB) (ex BRB) Commercial (FRB) (BRB) Italy Luxembourg Domestic
Slide 52: Robust financial targets well balanced per business
BNP Paribas has demonstrated the ability to capture growth Robust financial targets well balanced per business 2025 1 2 targets CIB • Maintained revenue Revenues ~+5% ~+4.5% ~+3% balance between CAGR 21-25 Growth cycle reaching businesses >11% ROTE5 in 2025, Average • Material C/I Jaw Effect ~+3 pts
Slide 53: Ready to deliver profitable growth and increase pay-out ratio
BNP Paribas is ready to deliver profitable growth and increase its pay-out ratio With its current level of CET1 and growth delivering a ROTE>11%1 in 2025, the Group is ready to: • absorb the implementation of the upcoming Basel 3 finalisation (CRR3) fully loaded (estimated at +8% on RWAs2, fully loa
Slide 54: Solid financial structure
Solid financial structure 2024 targets1 2025 targets1 12.9% 12.0% CET1 ratio Basel 3 (CRR2) fully loaded Basel 3 finalised (CRR3) fully loaded 17.1% 15.9% Total Capital Basel 3 (CRR2) fully loaded Basel 3 finalised (CRR3) fully loaded 29.3% of RWA 27.2% of RWA TLAC Basel 3 (CRR2) fully loaded Basel
Slide 55: BNP Paribas – 2025 Strategic plan: Strong ambitions
BNP Paribas – 2025 Strategic plan Strong ambitions Net Income, Group Share CAGR 2021-2025 >+7%1 CAGR Average >+3.5% jaws effect ~40 bp >+2.0%2 Tax rate ~28% 2021 Revenues Costs Cost Non-operating Tax 2025 of risk items & others Further increase in Earnings Per Share with the use of the remaining p
Slide 56: Agreement with BMO for the sale of Bank of the West
Agreement with BMO for the sale of Bank of the West (BoW) An operation leading to strong value-creation Announcement on 20 December 2021 of the sale to BMO Financial Group of 100% of BNP Paribas’ retail & commercial banking activities in the United States conducted through Bank of the West1 Total co
Slide 57: Conclusion
GROUP RESULTS DIVISION RESULTS GROWTH, TECHNOLOGY & SUSTAINABILITY 2025 CONCLUSION 4Q21 DETAILED RESULTS APPENDICES
Slide 58: Conclusion
Conclusion A strong and distinctive business model Net income1 2021: €9,488m (+34.3% vs. 2020) 2021 ROTE: 10.0% CET1 ratio: 12.9% 2021 pay-out ratio 60% (50% in cash2, 10% in share buybacks3) Launch of the new strategic plan Growth, Technology & Sustainability 2025 Strengthening BNP Paribas’ unique
Slide 59: BNP Paribas' ambitions for 2025
BNP Paribas’ ambitions for 2025 2022-2025 financial objectives in brief Pursue an ambitious and disciplined growth 2024: 12.9% Cible Cible CAGR 2021-20251 CAGR 2021-20251 Basel 3 (CRR2) fully loaded Net 4% 4% CET1 Revenues >7% 2025: 12.0% >+3.5% income3 Basel 3 finalised (CRR3) fully loaded Cible Ob
Slide 60: 4Q21 Detailed Results
GROUP RESULTS DIVISION RESULTS GROWTH, TECHNOLOGY & SUSTAINABILITY 2025 CONCLUSION 4Q21 DETAILED RESULTS APPENDICES
Slide 61: Main exceptional items – 4Q21
Main exceptional items – 4Q21 Exceptional items 4Q21 4Q20 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) -€61m -€91m • IT rein
Slide 62: Groupe BNP Paribas – 4Q21
Groupe BNP Paribas – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 4Q20 3Q21 2020 Group n.s. n.s. n.s. Revenues 11,232 10,827 +3.7% 11,398 -1.5% 46,235 44,275 +4.4% Operating Expenses and Dep. -7,930 -7,562 +4.9% -7,412 +7.0% -31,111 -30,194 +3.0% Gross Operating Income 3,302 3,265 +1.1% 3,9
Slide 63: Retail Banking & Services – 4Q21
Retail Banking & Services – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 4Q20 3Q21 2020 Revenues 7,944 7,753 +2.5% 7,798 +1.9% 31,487 30,870 +2.0% Operating Expenses and Dep. -5,311 -5,089 +4.4% -4,986 +6.5% -20,705 -20,384 +1.6% Gross Operating Income 2,633 2,664 -1.2% 2,812 -6.4% 10,782 1
Slide 64: 4Q21 – Domestic Markets
4Q21 – Domestic Markets 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 4,130 3,976 +3.9% 4,112 +0.4% 16,275 15,477 +5.2% Operating Expenses and Dep. -2,691 -2,610 +3.1% -2,595 +3.7% -10,784 -10,568 +2.0% Gross Operating Income 1,440 1,366 +5.4% 1,518 -5.1% 5,491 4
Slide 65: 4Q21 – DM – French Retail Banking
4Q21 – DM – French Retail Banking (excluding PEL/CEL effects) 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 1,602 1,516 +5.7% 1,570 +2.0% 6,240 5,944 +5.0% Incl. Net Interest Income 879 855 +2.7% 856 +2.6% 3,371 3,303 +2.1% Incl. Commissions 724 661 +9.5% 714 +1.
Slide 66: DM – French Retail Banking: Volumes
DM – French Retail Banking Volumes 4Q21 %Var/4Q20 %Var/3Q21 2021 %Var/2020 Average outstandings (€bn) LOANS 200.9 +2.2% +0.6% 199.4 +5.4% Individual Customers 107.4 +6.4% +0.9% 105.0 +6.0% Incl. Mortgages 96.3 +6.9% +1.0% 94.1 +6.5% Incl. Consumer Lending 11.0 +2.6% +0.2% 10.9 +1.9% Corporates 93.5
Slide 67: 4Q21 – DM – BNL banca commerciale
4Q21 – DM – BNL banca commerciale 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 4Q20 3Q21 2020 Revenues 668 694 -3.8% 667 +0.2% 2,680 2,671 +0.3% Operating Expenses and Dep. -438 -434 +1.0% -449 -2.4% -1,781 -1,746 +2.0% Gross Operating Income 230 260 -11.7% 218 +5.5% 899 925 -2.8% Cost of Risk -
Slide 68: DM – BNL banca commerciale: Volumes
DM – BNL banca commerciale Volumes 4Q21 %Var/4Q20 %Var/3Q21 2021 %Var/2020 Average outstandings (€bn) LOANS 78.4 +0.5% +2.4% 77.1 +1.5% Individual Customers 40.9 +1.4% -0.4% 40.8 +3.2% Incl. Mortgages 26.5 +4.0% +0.6% 26.2 +3.2% Incl. Consumer Lending 4.7 -1.0% -2.1% 4.8 -0.2% Corporates 37.6 -0.4%
Slide 69: 4Q21 – DM – Belgian Retail Banking
4Q21 – DM – Belgian Retail Banking 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 4Q20 3Q21 2020 Revenues 854 861 -0.8% 933 -8.5% 3,509 3,432 +2.2% Operating Expenses and Dep. -540 -556 -2.8% -511 +5.7% -2,375 -2,408 -1.4% Gross Operating Income 314 305 +2.9% 422 -25.6% 1,135 1,024 +10.8% Cost of
Slide 70: DM – Belgian Retail Banking: Volumes
DM – Belgian Retail Banking Volumes 4Q21 %Var/4Q20 %Var/3Q21 2021 %Var/2020 Average outstandings (€bn) LOANS 120.1 +4.9% +1.5% 117.3 +2.4% Individual Customers 76.4 +3.5% +1.1% 75.2 +2.8% Incl. Mortgages 55.6 +3.2% +1.0% 54.9 +2.6% Incl. Consumer Lending 0.3 +39.9% -3.5% 0.3 +13.2% Incl. Small Busin
Slide 71: DM – Other Activities – 4Q21
DM – Other Activities – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 1,006 905 +11.2% 942 +6.8% 3,846 3,430 +12.1% Operating Expenses and Dep. -534 -494 +8.1% -506 +5.7% -2,078 -1,923 +8.1% Gross Operating Income 472 411 +14.9% 436 +8.1% 1,768 1,507 +17.4%
Slide 72: DM – LRB – Personal Investors
DM – LRB – Personal Investors Luxembourg Retail Banking (LRB) Loans: +6.7% vs. 4Q20, good Average outstandings (€bn) 4Q21 %Var/4Q20 %Var/3Q21 2021 %Var/2020 growth in individual and corporate LOANS 12.4 +6.7% +1.3% 12.1 +6.1% loans, mortgage in particular, with a Individual Customers 7.9 +5.6% +0.9%
Slide 73: DM – Arval – Leasing Solutions – Nickel
DM – Arval – Leasing Solutions – Nickel Arval %Var/4Q20 %Var/3Q21 %Var/2020 at constant at constant at constant 4Q21 2021 scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rates Consolidated Outstandings 25.0 +12.1% +11.4
Slide 74: 4Q21 – International Financial Services
4Q21 – International Financial Services 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 4Q20 3Q21 2020 Revenues 3,952 3,915 +0.9% 3,823 +3.4% 15,751 15,938 -1.2% Operating Expenses and Dep. -2,700 -2,555 +5.7% -2,466 +9.5% -10,231 -10,117 +1.1% Gross Operating Income 1,252 1,360 -8.0% 1,357 -7.7% 5
Slide 75: 4Q21 – IFS – Personal Finance
4Q21 – IFS – Personal Finance 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 1,294 1,365 -5.2% 1,271 +1.9% 5,216 5,485 -4.9% Operating Expenses and Dep. -710 -687 +3.4% -644 +10.3% -2,817 -2,756 +2.2% Gross Operating Income 584 678 -13.8% 627 -6.8% 2,399 2,729 -12
Slide 76: IFS – Personal Finance: Volumes and risks
IFS – Personal Finance Volumes and risks %Var/4Q20 %Var/3Q21 %Var/2020 at constant at constant at constant scope and scope and scope and 4Q21 historical historical 2021 historical exchange exchange exchange Average outstandings (€bn) rates rates rates TOTAL CONSOLIDATED OUTSTANDINGS 91.2 +0.6% +0.2%
Slide 77: 4Q21 – IFS – Europe-Mediterranean
4Q21 – IFS – Europe-Mediterranean 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 449 527 -14.7% 511 -12.1% 1,941 2,362 -17.8% Operating Expenses and Dep. -395 -402 -1.8% -383 +3.2% -1,604 -1,711 -6.3% Gross Operating Income 54 125 -56.4% 128 -57.6% 337 651 -48.3%
Slide 78: IFS – Europe-Mediterranean: Volumes and risks
IFS – Europe-Mediterranean Volumes and risks %Var/4Q20 %Var/3Q21 %Var/2020 at constant at constant at constant scope and scope and scope and 4Q21 historical historical 2021 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 79: 4Q21 - IFS - BancWest
4Q21 - IFS - BancWest 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 626 594 +5.4% 588 +6.4% 2,426 2,460 -1.4% Operating Expenses and Dep. -457 -423 +7.9% -425 +7.3% -1,695 -1,723 -1.6% Gross Operating Income 169 171 -0.8% 163 +3.9% 731 737 -0.8% Cost of Risk 24 -
Slide 80: IFS - BancWest: Volumes
IFS - BancWest Volumes %Var/4Q20 %Var/3Q21 %Var/2020 at constant at constant at constant scope and scope and scope and 4Q21 historical historical 2021 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 49.8
Slide 81: IFS – Insurance and WAM: Activity
IFS – Insurance and WAM1 Activity %Var/ %Var/ 31.12.21 31.12.20 30.09.21 €bn 31.12.20 30.09.21 Assets under management (€bn) 1,271 1,165 +9.1% 1,218 +4.4% Asset Management 537 483 +11.3% 502 +7.0% Wealth Management 422 390 +8.4% 411 +2.9% Real Estate Services 30 29 +2.0% 29 +2.5% Insurance 282 264 +
Slide 82: IFS – Insurance & WAM
IFS – Insurance & WAM1 Insurance and WAM Asset Management Breakdown in assets by client Breakdown in AuM as at 31.12.21 segment €1,165bn €1,271bn Alternatives and others 4% Corporates & 29% 35% Bonds Institutionals 28% Diversified 28% 51% 50% Individuals ▶ 55% Money-market External 20% 17% Equities
Slide 83: 4Q21 – IFS – Insurance
4Q21 – IFS – Insurance 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 655 622 +5.4% 613 +6.8% 2,827 2,725 +3.7% Operating Expenses and Dep. -410 -385 +6.6% -376 +9.1% -1,536 -1,463 +5.0% Gross Operating Income 245 237 +3.3% 237 +3.2% 1,291 1,263 +2.2% Cost of Risk
Slide 84: 4Q21 – IFS – Wealth and Asset Management
4Q21 – IFS – Wealth and Asset Management 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 949 826 +14.8% 859 +10.5% 3,422 2,982 +14.7% Operating Expenses and Dep. -741 -669 +10.8% -651 +13.9% -2,628 -2,510 +4.7% Gross Operating Income 208 157 +32.1% 208 -0.1% 794 47
Slide 85: Corporate and Institutional Banking – 4Q21
Corporate and Institutional Banking – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 4Q20 3Q21 2020 Revenues 3,264 3,315 -1.5% 3,588 -9.0% 14,236 13,763 +3.4% Operating Expenses and Dep. -2,348 -2,190 +7.2% -2,243 +4.7% -9,400 -8,920 +5.4% Gross Operating Income 915 1,125 -18.6% 1,346 -32.0%
Slide 86: Corporate Banking – 4Q21
Corporate and Institutional Banking Corporate Banking – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 1,324 1,281 +3.3% 1,282 +3.3% 5,087 4,727 +7.6% Operating Expenses and Dep. -655 -645 +1.6% -640 +2.4% -2,639 -2,623 +0.6% Gross Operating Income 669 636 +5
Slide 87: Global Markets – 4Q21
Corporate and Institutional Banking Global Markets – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 1,338 1,498 -10.7% 1,731 -22.7% 6,820 6,819 +0.0% incl. FICC 755 1,002 -24.6% 896 -15.7% 3,947 5,652 -30.2% incl. Equity & Prime Services 583 497 +17.4% 835 -3
Slide 88: Market risks – 4Q21
Corporate and Institutional Banking Market risks – 4Q21 Average 99% 1-day interval VaR (Value at Risk) €m Commodities Forex Equities Interest Rates Credit Nettings 54 55 43 43 43 5 46 45 10 42 35 35 33 36 37 35 5 6 6 6 34 15 9 33 31 32 29 28 31 28 31 31 27 3 12 8 14 4 6 25 24 23 27 23 25 26 24 13 13
Slide 89: Securities Services – 4Q21
Corporate and Institutional Banking Securities Services – 4Q21 4Q21 4Q20 4Q21 / 3Q21 4Q21 / 2021 2020 2021 / €m 0 0 4Q20 0 3Q21 0 0 2020 Revenues 602 536 +12.3% 575 +4.6% 2,329 2,217 +5.1% Operating Expenses and Dep. -469 -457 +2.7% -465 +0.9% -1,874 -1,845 +1.6% Gross Operating Income 132 79 +68.5%
Slide 90: Corporate Centre – 4Q21
Corporate Centre – 4Q21 €m 4Q21 4Q20 3Q21 2021 2020 Revenues 24 -241 11 512 -358 Operating Expenses and Dep. -271 -283 -183 -1,007 -890 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -82 -150 -62 -292 -389 Gross Operating Income -247 -524 -172 -495 -1,249 Cost of Risk 7 -
Slide 91: Corporate Centre – 2021
Corporate Centre – 2021 Revenues • Very strong increase at Principal Investments, rebounding from a low level in 2020 • Capital gain realised on the sale of 4.99% of SBI Life: +€58m • Accounting impact of a swap set up for the transfer of an activity in 2020: +€86m • Reminder from 2020: • Accounting
Slide 92: Appendices
GROUP RESULTS DIVISION RESULTS GROWTH, TECHNOLOGY & SUSTAINABILITY 2025 CONCLUSION 4Q21 DETAILED RESULTS APPENDICES
Slide 93: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 31-Dec-21 30-Dec-20 Number of Shares (end of period) 1,234 1,250 Number of Shares ex cluding Treasury Shares (end of period) 1,234 1,248 Av erage number of Shares outstanding ex cluding Treasury Shares 1,247 1,248 Reminder: cancell
Slide 94: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 31-Dec-21 31-Dec-20 Total Capital Ratio (a) 16,4% 16,4% Tier 1 Ratio (a) 14,0% 14,2% Common equity Tier 1 ratio (a) 12,9% 12,8% (a) CRD4, on risk-w eighted assets of €714bn as at 31.12.21 and €696bn as at 31.12.20; refer to slide 97 Book value p
Slide 95: Return on Equity and Permanent Shareholders' Equity
Return on Equity and Permanent Shareholders’ Equity Calculation of Return on Equity in millions of euros 31-Dec-21 31-Dec-20 Net income Group share 9,488 7,067 Remuneration net of tax of Undated Super Subordinated Notes and exchange effect -436 -441 Net income Group share used for the calculation of
Slide 96: A Solid Financial Structure
A Solid Financial Structure Doubtful loans vs. gross outstandings 31-Dec-21 31-Dec-20 Doubtful loans (a) / Loans (b) 2.0% 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
Slide 97: Common Equity Tier 1 ratio
Common Equity Tier 1 ratio Basel 3 Common Equity Tier 1 ratio1 (Accounting capital to prudential capital reconciliation) €bn 31-Dec-21 30-sept-21 31-Dec-20 Consolidated Equity 122,5 120,8 117,4 Undated super subordinated notes -9,2 -9,2 -9,9 2 0,0 0,0 -3,3 2020 net income distribution project 3 2021
Slide 98: Medium/Long Term Regulatory Funding
Medium/Long Term Regulatory Funding Continued presence in debt markets 2021 MLT regulatory issuance plan completed: 2022 MLT regulatory issuance plan6: ~ €20.5bn €20.5bn issued • Capital instruments: €5.15bn issued1 • Capital instruments: ~€5.5bn; including €2-3bn AT1, €1.1bn already issued7 • AT1:
Slide 99: TLAC ratio: ~400bps above the requirement
TLAC ratio: ~400bps above the requirement without calling on the Preferred Senior debt allowance as of 01 January 2022 26.0% TLAC requirement as at 01.01.22: 22.03% of RWA 22.03% BNP Paribas • Including capital conservation buffer, G-SIB buffer and TLAC ratio countercyclical capital buffer (3 bps as
Slide 100: Distance to MDA restrictions as of 1 January 2022
Distance to MDA restrictions as of 1 January 2022 Reminder: Pillar 2 is composed of: Capital requirements as at 01.01.221 “Pillar 2 Requirement” (public), applicable to CET1, Tier 1 and Total Capital ratios Countercyclical buffer P2R “Pillar 2 Guidance” (not public), not applicable for distribut
Slide 101: 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) 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 3Q21 4Q21 2021 1 Domestic Markets Loan outstandings as of the beg. of the quarter (€bn) 401.3 414.0 422.1 427.2 435.5 439.0
Slide 102: 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) 2018 2019 1Q20 2Q20 3Q20 4Q20 2020 1Q21 2Q21 3Q21 4Q21 2021 1 BancWest Loan outstandings as of the beg. of the quarter (€bn) 51.3 55.1 55.4 58.1 56.8 52.8 55.8 49.8 51.1
Slide 103: Cost of risk by Business Unit (1/3)
Cost of risk by Business Unit (1/3) Cost of risk vs. Customer loans outstanding at the beginning of the period (in annualised bps) Group • Cost of risk: €510m -€196m vs.3Q21 74 -€1,089m vs.4Q20 66 67 65 57 • Cost of risk at a low level due to the limited number of new 35 39 34 42 38 32 23 defaul
Slide 104: Cost of risk by Business Unit (2/3)
Cost of risk by Business Unit (2/3) Cost of risk vs.Customer loans outstanding at the beginning of the period (in annualised bps) FRB • Cost of risk: €99m -€16m vs.3Q21 -€69m vs.4Q20 16 17 25 21 21 18 27 32 24 19 21 19 • Cost of risk at a low level 2018 2019 2020 2021 1Q202Q203Q204Q20 1Q212Q213Q
Slide 105: Cost of risk by Business Unit (3/3)
Cost of risk by Business Unit (3/3) Cost of risk vs. Customer loans outstanding at the beginning of the period (in annualised bps) Personal Finance • Cost of risk: €346m 240 253 +€43m vs.3Q21 212 187 165 -€235m vs.4Q20 141 145 141 138 147 130 150 • Cost of risk at a low level • Reminder from 4Q2
Slide 106: Risk-Weighted Assets
Risk-Weighted Assets Basel 3 Risk-Weighted Assets1: €714bn as at 31.12.21 (€696bn as at 31.12.20) The +€18bn change is mainly explained by: • +€27bn increase in credit risk • -€8bn decrease in operational risk • -€1bn decrease in counterparty risk bn€ 31.12.21 30.09.21 31.12.20 Credit risk 554 553 5
Slide 107: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as 31.12.21 Other Activities: 5% FRB: 13% Global Markets & Securities Services: 14% Retail Banking BNL bc: 7% CIB : 33% & Services : 62% BRB: 7% Corporate Banking: 19% Other Domestic Markets2: 6% Personal Finance: 10% Insuran
Slide 108: 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 12% B to B Services 9% Finance 6% Communication Services 2% Insurance 2% Transport & logistics 10% Equipment excluding
Slide 109: Breakdown of Commitments by Region
Breakdown of Commitments by Region Rest of the World 5% Asia Pacific 6% North America 13% France 32% Other European countries 19% Italy 9% Belgium & Luxembourg 16% Total gross commitments on and off balance sheet, unweighted = €1,897bn1 as at 31.12.21 1. Excluding Equity credit exposure class 2021 F