Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q2 2020 Earnings Presentation
93 slides from Bnp Paribas S.a. Class A's earnings presentation, Jul 31, 2020
Slide 1: Second Quarter 2020 Results
SECOND QUARTER 2020 RESULTS 31st July 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: A diversified platform, mobilised at the service of the economy
BNP Paribas: a diversified platform, mobilised at the service of the economy A model that allows BNP Paribas to fulfill a leading role in financing the economy Rapid deployment of state-guaranteed loans: close to 90 000 loans granted by the end of June1 Strong financial structure Exceptional (capita
Slide 4: 2Q20: confirms the strength of its integrated and diversified model
2Q20: BNP Paribas confirms the strength of its integrated and diversified model Increase in revenues Revenues: +4.0% vs. 2Q19 Decrease in operating expenses Operating expenses: -1.3% vs. 2Q19 Strong growth in gross operating income Gross operating income: +14.5% vs. 2Q19 Increase in cost of risk due
Slide 5: Impact of health crisis on activity
Impact of health crisis on activity Activity gradually returning to normal Significant impact of lockdown measures on Trend in economic activity (PMI Composite) activity in certain businesses and geographies, in particular DM and IFS (transaction flows, new 60 Source: Markit, BNP Paribas production)
Slide 6: Group Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 2Q20 DETAILED RESULTS APPENDICES 6
Slide 7: Main exceptional items - 2Q20
Main exceptional items - 2Q20 Exceptional items 2Q20 2Q19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€30m -€114m • IT reinforcement costs (Corporate Centre) -€45m • Donations and staff safety measures relating to the health crisis (Corporate Centre) -€86m • T
Slide 8: Consolidated Group - 2Q20
Consolidated Group - 2Q20 Good level of result in a context marked by public health measures – Positive jaws effect 2Q20 vs 2Q19 2Q20 Operating divisions 2Q20 2Q19 vs. 2Q19 Historical scope & exchange rates Revenues €11,675m €11,224m +4.0% +5.2% Operating expenses -€7,338m -€7,435m -1.3% +0.2% Gross
Slide 9: Consolidated Group – 1H20
Consolidated Group – 1H20 Good level of result driven by the diversified and integrated model – Very positive jaws effect 1H20 vs. 1H19 1H20 Operating divisions 1H20 1H19 vs. 1H19 Historical scope & exchange rates Revenues €22,563m €22,368m +0.9% +1.1% Operating expenses -€15,495m -€15,884m -2.4% +0
Slide 10: Revenues of the Operating Divisions – 2Q20
Revenues of the Operating Divisions – 2Q20 Strength of the diversified model in coping with the impact of public health measures Domestic International CIB Markets1 Financial Services -5.2% -5.5% +33.1% -3.4% At constant scope & exchange rates Operating divisions +5.2% 3,925 3,721 4,262 4,027 4,123
Slide 11: Operating expenses of the Operating Divisions – 2Q20
Operating expenses of the Operating Divisions – 2Q20 Positive jaws effect Domestic International Markets1 Financial Services CIB Operating -2.8% -5.7% +11.2% divisions -4.2% at constant scope & exchange rates +0.2% 2Q19 2,516 2,446 2,559 2,414 1,997 2,220 2Q20 €m Domestic Markets: decrease in oper
Slide 12: Cost of risk
Cost of risk Adjustment in the cost of risk to factor in the ex-ante provisioning of expected losses with the updating of macroeconomic anticipations1: €329m Updating of macroeconomic scenarios by geography and Illustration: adjustment in the baseline sector scenario’s Eurozone GDP assumptions Basel
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: €1,447m +€21m vs. 1Q20 +€826m vs. 2Q19 67 65 46 46 • Increase in the cost of risk 39 35 39 38 41 30 • €329m in ex-ante provisioning of expected losses in 2Q20
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: €90m -€11m vs. 1Q20 +€7m vs. 2Q19 24 21 16 17 15 17 16 21 21 18 • Cost of risk at a contained level 2016 2017 2018 2019 1TQ9 2Q19 3Q19 4Q19 1Q20 2Q20 BNL bc • C
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: €450m 240 -€132m vs. 1Q20 187 +€161m vs. 2Q19 159 147 141 145 145 123 154 156 • Cost of risk contained in the context, with €41m, or 17bps suppleme
Slide 16: Very solid financial structure
Very solid financial structure Increase in CET1 ratio CET1 ratio: 12.4% as at 30.06.201 CET1 ratio • 2Q20 result after taking into account a 50% dividend pay-out ratio: +20 bps • Regulatory amendments (CRR “Quick Fix”)1: +20 bps • Overall limited impact of other effects on the ratio 12.0% 12.4% CET1
Slide 17: Net tangible book value per share: €71.8
Net tangible book value per share: €71.8 Net book value per share, end of period € 79.0 81.0 73.9 75.1 74.7 2008-2Q20 CAGR: 70.,9 9.2 66.6 9.3 +5.1% 65.0 10.6 10.0 9.9 63.1 10.7 71.81 69.7 55.6 57.1 10.0 10.9 64.8 51.9 10.7 63.3 65.1 Net tangible 60.2 45.7 11.5 11.7 55.0 55.7 book value per 11.1 52.
Slide 18: A Reinforced Internal Control Set-up
A Reinforced Internal Control Set-up The health crisis has not had a significant impact on Compliance processes or project trajectories Adaptation of governance, Compliance work approach, and specific changes to certain processes in consultation with supervisors Roll-out being finalised of the G
Slide 19: Brexit
Brexit BNP Paribas is already prepared BNP Paribas is fully prepared for the end of the Brexit transition period in December 2020 On the regulatory side, the Group has undertaken all appropriate measures, from the ECB and the UK regulators to be authorized to continue to operate in the UK On the ope
Slide 20: An ambitious policy of Engagement in Society (1/2)
An ambitious policy of Engagement in Society The ambition to be a leader in sustainable finance (1/2) • Thermal coal exit set for 2030 in the EU and OECD countries and for 2040 in the rest of the world A strengthened • The scope encompasses the entire thermal coal value chain: extraction, dedicated
Slide 21: An ambitious policy of Engagement in Society (2/2)
An ambitious policy of Engagement in Society The ambition to be a leader in sustainable finance (2/2) Leading • #1 worldwide1 in the green bonds market as at the end of June 2020 with €4.4bn in positions in green bonds as bookrunner for its clients sustainable • #1 in EMEA1 on the market for Sustain
Slide 22: Division Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 2Q20 DETAILED RESULTS APPENDICES
Slide 23: Domestic Markets - 2Q20
Domestic Markets - 2Q20 Strong support for the economy and signs of a rebound in business activity Rebound in business activity in the latter part of the quarter Loans • Loans: +5.3% vs. 2Q19, solid growth in retail banking loans, particularly in €bn +5.3% France and Belgium, and in the specialised
Slide 24: DM - French Retail Banking - 2Q20
DM - French Retail Banking - 2Q20 Strong mobilisation to serve clients Maintaining of a good level of activity Loans • Loans: +8.8% vs. 2Q19; increase in corporate loans (even when excluding state- €bn guaranteed loans) +8.8% • Deposits: +16.7% vs. 2Q19 187 172 • Private banking: sharp increase in r
Slide 25: DM - BNL banca commerciale – 2Q20
DM - BNL banca commerciale – 2Q20 Good business resilience and ongoing cost savings Good business resilience despite the lockdown Market share on the corporate • Loans: -1.5%1 vs. 2Q19, up by more than 3% on the perimeter excluding segment (loans) non-performing loans, increase in mortgage loans; co
Slide 26: DM - Belgian Retail Banking - 2Q20
DM - Belgian Retail Banking - 2Q20 Sustained activity at the service of the economy Good business activity with a rebound during the quarter Loans • Loans: +4.6% vs. 2Q19, good growth in mortgage and corporate loans €bn +4.6% • Deposits: +5.4% vs. 2Q19, strong increase in deposits from corporate and
Slide 27: DM - Other Activities - 2Q20
DM - Other Activities - 2Q20 Strong recovery in business activity and substantial positive jaws effect Recovery in activity confirmed in all businesses Leasing Solutions • Arval: growth of the financed fleet +7.2% vs. 2Q19, +2.5% on the year to New equipment date, driven by a rebound in vehicle orde
Slide 28: International Financial Services – 2Q20
International Financial Services – 2Q20 Business drive recovered during the quarter Business activity recovered its momentum in the latter part of the quarter Monthly trend in new production of individual • Growth in outstandings in international retail networks1 vs. 2Q19 loans at IFS2 • Decrease in
Slide 29: IFS - Personal Finance - 2Q20
IFS - Personal Finance - 2Q20 Rebound in activity, strengthened risk profile in coping with the crisis Business impact of public health measures; gradual recovery Breakdown in outstandings2 • Outstanding loans: -0.7% vs. 2Q19 (+1.6% at constant scope and United-Kingdom 7% Others 4% exchange rates) (
Slide 30: IFS - Europe-Mediterranean - 2Q20
IFS - Europe-Mediterranean - 2Q20 Operating continuity and enhanced digitalisation to better serve clients Sustained growth in outstandings vs. 2Q19 Loans1 Deposits1 • Loans: +4.5%1 vs. 2Q19, notable increase in corporate segment, €bn €bn +9.4%1 mainly in Turkey; less activity in Poland and Morocco
Slide 31: IFS - BancWest - 2Q20
IFS - BancWest - 2Q20 Good performance and positive jaws effect Development in outstandings thanks to a good business drive Loans1 • Loans: +4.3%1 vs. 2Q19, strong increase in loans to corporates, good $bn +4.3% production in collateralised equipment loans in 2Q20 (+8% vs. 2Q19) 62.0 64.7 • Deposits
Slide 32: IFS - Insurance and WAM - Asset Flows and AuM – 1H20
IFS - Insurance and WAM1 - Asset Flows and AuM – 1H20 Favourable market trend in 2Q and good resilience of net asset inflows Assets under management: €1,085bn as at 30.06.20 Change in assets under management2 • -3.4% vs. 31.12.19 (-0.3% vs. 30.06.19) Performance • Good level of net inflows: +€10.8bn
Slide 33: IFS - Insurance - 2Q20
IFS - Insurance - 2Q20 Good momentum with continued business development and market rebound Positive drive in the latter part of the quarter Pre-tax income • Gradual recovery in Savings in Asia and Protection and Savings in France €m • Business interruption protection: no exposure in France; negligi
Slide 34: IFS - Wealth and Asset Management - 2Q20
IFS - Wealth and Asset Management1 - 2Q20 Good business resilience, impact of health measures on Real Estate business Wealth Management • A recognised global player, including for its digital offering • Good net asset inflows, in particular from large clients in Europe and Asia Asset Management • Ve
Slide 35: Corporate & Institutional Banking – 2Q20
Corporate & Institutional Banking – 2Q20 Strong mobilisation to meet crisis-related needs A very sustained level of client activity for corporates and institutions… Bond and syndicated loan • Financing: >€160bn raised in 2Q20 by CIB on global syndicated loan, bond rankings in 1H201,2 Rankings and ma
Slide 36: CIB: Corporate Banking - 2Q20
CIB: Corporate Banking - 2Q20 Strong business drive and increased activity A strong and constant presence with companies 2018-1H20 European rankings2 • >€83bn in liquidity lines for clients led since mid-March in EMEA Rankings and market #1 EMEA (underwriting of ~50% on average and final take <10%)1
Slide 37: CIB: Global Markets - 2Q20
CIB: Global Markets - 2Q20 Strong activity to address the needs of the economy during the health crisis An exceptional level of issuance on bond markets Ranking of electronic multi-dealer • >40 deals for sovereign and quasi-sovereign issuers led worldwide in 2Q20 platforms (>x3 the average quarterly
Slide 38: CIB: Securities Services - 2Q20
CIB: Securities Services - 2Q20 Continued good momentum Mobilisation during the health crisis Transaction volumes • Flexible set-up able to absorb transaction volumes that are still at Settlement & delivery an exceptional level (+36.9% vs. 2Q19) transactions in millions • Support for setting up new
Slide 39: Conclusion
Conclusion Exceptional mobilisation by the Group towards financing the economy Strengthening of BNP Paribas positions Determining contribution from the diversified and integrated model Revenues up +4.0% Rebound in commercial activity in businesses impacted by public health measures in the latter par
Slide 40: 2Q20 Detailed Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 2Q20 DETAILED RESULTS APPENDICES
Slide 41: 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 the total portfolio High selectivity at origination Limited exposures to sectors considered as sensitive Aircraft: 0.8% of total gross commitments1 Oil & Gas:
Slide 42: Moratoria
Moratoria1 BNP Paribas supports clients in coping with the health crisis Close to 920,000 individual and corporate clients Breakdown by business3 benefit from a moratorium CIB 1% Close to 3% of total gross commitments IFS Networks as at 30 June 20202 16% Personal DM Networks 2/3 of moratoria benefit
Slide 43: Main exceptional items – 1H20
Main exceptional items – 1H20 Exceptional items 1H20 1H19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€76m -€151m • IT reinforcement costs (Corporate Centre) -€79m • Donations and staff safety measures relating to the public health crisis (Corporate Centre) -€
Slide 44: Group BNP Paribas – 1H20
Group BNP Paribas – 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 2Q19 1Q20 1H19 Group n.s. n.s. n.s. Revenues 11,675 11,224 +4.0% 10,888 +7.2% 22,563 22,368 +0.9% Operating Expenses and Dep. -7,338 -7,435 -1.3% -8,157 -10.0% -15,495 -15,884 -2.4% Gross Operating Income 4,337 3,789 +14.5% 2,
Slide 45: Retail Banking and Services - 1H20
Retail Banking and Services - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 7,615 8,045 -5.3% 7,823 -2.7% 15,438 16,141 -4.4% Operating Expenses and Dep. -4,790 -5,002 -4.2% -5,650 -15.2% -10,440 -10,588 -1.4% Gross Operating Income 2,825 3,042 -7.1% 2,172 +
Slide 46: Domestic Markets - 1H20
Domestic Markets - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 3,721 3,925 -5.2% 3,913 -4.9% 7,635 7,886 -3.2% Operating Expenses and Dep. -2,446 -2,516 -2.8% -2,970 -17.7% -5,415 -5,500 -1.5% Gross Operating Income 1,276 1,408 -9.4% 943 +35.2% 2,219 2,386
Slide 47: DM - French Retail Banking – 1H20
DM - French Retail Banking – 1H20 (excluding PEL/CEL effects) 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 1,408 1,596 -11.8% 1,524 -7.6% 2,932 3,191 -8.1% Incl. Net Interest Income 774 889 -12.9% 823 -5.9% 1,596 1,801 -11.4% Incl. Commissions 634 708 -10.4% 702
Slide 48: DM - French Retail Banking volumes
DM - French Retail Banking Volumes 2Q20 %Var/2Q19 %Var/1Q20 1H20 %Var/1H19 Average outstandings (€bn) LOANS 187.2 +8.8% +5.1% 182.6 +6.9% Individual Customers 97.8 +3.9% -0.1% 97.9 +4.7% Incl. Mortgages 87.5 +5.1% +0.6% 87.2 +5.5% Incl. Consumer Lending 10.3 -5.3% -6.0% 10.7 -1.5% Corporates 89.3 +1
Slide 49: DM - BNL banca commerciale - 1H20
DM - BNL banca commerciale - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 2Q19 1Q20 1H19 Revenues 649 684 -5.1% 659 -1.4% 1,308 1,360 -3.8% Operating Expenses and Dep. -422 -433 -2.5% -465 -9.2% -887 -903 -1.8% Gross Operating Income 227 251 -9.6% 194 +17.3% 421 456 -7.8% Cost of Risk -122
Slide 50: DM – BNL banca commerciale volumes
DM – BNL banca commerciale Volumes 2Q20 %Var/2Q19 %Var/1Q20 1H20 %Var/1H19 Average outstandings (€bn) LOANS 75.4 -1.5% +3.3% 74.2 -2.9% Individual Customers 39.2 +0.3% +0.6% 39.1 -0.2% Incl. Mortgages 25.1 +0.9% -1.6% 25.3 +2.0% Incl. Consumer Lending 4.6 +1.9% -9.6% 4.9 +8.5% Corporates 36.1 -3.2%
Slide 51: DM - Belgian Retail Banking - 1H20
DM - Belgian Retail Banking - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 2Q19 1Q20 1H19 Revenues 835 878 -4.9% 885 -5.7% 1,720 1,793 -4.1% Operating Expenses and Dep. -499 -535 -6.8% -830 -39.9% -1,329 -1,379 -3.6% Gross Operating Income 336 342 -1.9% 55 n.s. 391 414 -5.6% Cost of Risk -8
Slide 52: DM - Belgian Retail Banking volumes
DM - Belgian Retail Banking Volumes 2Q20 %Var/2Q19 %Var/1Q20 1H20 %Var/1H19 Average outstandings (€bn) LOANS 115.5 +4.6% +1.3% 114.7 +4.8% Individual Customers 73.0 +4.4% +0.8% 72.8 +4.7% Incl. Mortgages 53.3 +5.1% +0.2% 53.2 +5.5% Incl. Consumer Lending 0.3 -6.5% n.s. 0.2 -2.4% Incl. Small Business
Slide 53: DM - Other Activities – 1H20
DM - Other Activities – 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 829 767 +8.2% 845 -1.9% 1,675 1,542 +8.6% Operating Expenses and Dep. -451 -447 +1.0% -508 -11.2% -959 -930 +3.2% Gross Operating Income 378 320 +18.3% 337 +12.2% 715 612 +16.8% Cost of Ri
Slide 54: DM - LRB - Personal Investors
DM - LRB - Personal Investors Luxembourg Retail Banking (LRB) Average outstandings (€bn) 2Q20 %Var/2Q19 %Var/1Q20 1H20 %Var/1H19 LOANS 11.4 +10.4% +1.0% 11.4 +10.3% Individual Customers 7.2 +7.0% +1.1% 7.2 +7.5% Loans vs. 2Q19: good growth in Corporates and Local Governments 4.2 +16.8% +0.9% 4.2 +15
Slide 55: DM - Arval - Leasing Solutions - Nickel
DM - Arval - Leasing Solutions - Nickel Arval Average outstandings (€bn) 2Q20 %Var 1/2Q19 %Var1/1Q20 1H20 %Var 1/1H2019 Consolidated Outstandings 21.4 +11.8% +0.9% 21.5 +12.9% Financed vehicles ('000 of vehicles) 1,331 +7.2% +0.7% 1,327 +8.0% • Consolidated outstandings: +11.8%1 vs. 2Q19, good growt
Slide 56: International Financial Services - 1H20
International Financial Services - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 2Q19 1Q20 1H19 Revenues 4,027 4,262 -5.5% 4,053 -0.6% 8,080 8,544 -5.4% Operating Expenses and Dep. -2,414 -2,559 -5.7% -2,766 -12.7% -5,180 -5,247 -1.3% Gross Operating Income 1,613 1,703 -5.3% 1,287 +25.3% 2,9
Slide 57: IFS - Personal Finance - 1H20
IFS - Personal Finance - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 1,302 1,440 -9.6% 1,475 -11.7% 2,777 2,866 -3.1% Operating Expenses and Dep. -641 -702 -8.6% -787 -18.6% -1,429 -1,472 -2.9% Gross Operating Income 661 738 -10.5% 688 -3.9% 1,348 1,394 -3
Slide 58: IFS - Personal Finance volumes and risks
IFS - Personal Finance Volumes and risks %Var/2Q19 %Var/1Q20 %Var/1H19 2Q20 at constant at constant 1H20 at constant scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rates TOTAL CONSOLIDATED OUTSTANDINGS 91.7 -0.7% +1.6%
Slide 59: IFS - Europe-Mediterranean - 1H20
IFS - Europe-Mediterranean - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 609 674 -9.6% 665 -8.3% 1,274 1,340 -4.9% Operating Expenses and Dep. -414 -445 -7.0% -490 -15.6% -904 -900 +0.4% Gross Operating Income 196 230 -14.8% 175 +12.0% 370 439 -15.7% Cost
Slide 60: IFS – Europe-Mediterranean volumes and risks
IFS – Europe-Mediterranean Volumes and risks %Var/2Q19 %Var/1Q20 %Var/1H19 2Q20 at constant at constant 1H20 at constant scope and scope and scope and historical historical 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 61: IFS - BancWest - 1H20
IFS - BancWest - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 629 593 +6.1% 611 +3.0% 1,240 1,162 +6.7% Operating Expenses and Dep. -432 -431 +0.3% -465 -7.1% -897 -873 +2.8% Gross Operating Income 197 162 +21.4% 146 +35.3% 343 289 +18.4% Cost of Risk -167
Slide 62: IFS - BancWest volumes
IFS - BancWest Volumes %Var/2Q19 %Var/1Q20 %Var/1H19 2Q20 at constant at constant 1H20 at constant scope and scope and scope and historical historical 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 58.7 +8.
Slide 63: IFS - Insurance and WAM business volumes
IFS - Insurance and WAM1 Business volumes %Var/ %Var/ 30.06.20 30.06.19 31.03.20 €bn 30.06.19 31.03.20 Assets under management (€bn) 1,085.1 1,088.6 -0.3% 1,037.9 +4.5% Asset Management 428 427 +0.1% 408 +4.9% Wealth Management 377 380 -0.7% 359 +5.0% Real Estate Services 29 29 -3.2% 29 -2.6% Insura
Slide 64: IFS - Insurance & WAM breakdown of assets by client segment
IFS - Insurance & WAM1 Breakdown of assets by client segment Breakdown of assets by client segment €1,075bn €1,085bn Corporate & 32% 33% Institutions 53% Individuals 52% External 15% distribution 15% 30 June 2019 30 June 2020 1. Asset Management, Wealth Management and Real Estate Services Second qua
Slide 65: IFS - Asset Management
IFS - Asset Management Breakdown in managed assets 30.06.20 Alternatives and others 5% Bonds 32% Diversified 27% ▶ 51% Money-market Equities 16% 19% €428bn Second quarter 2020 results | 65
Slide 66: IFS - Insurance - 1H20
IFS - Insurance - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 828 779 +6.2% 579 +42.9% 1,407 1,653 -14.9% Operating Expenses and Dep. -339 -360 -6.0% -393 -13.8% -732 -750 -2.4% Gross Operating Income 489 419 +16.7% 186 n.s. 675 903 -25.2% Cost of Risk -2
Slide 67: IFS - Wealth and Asset Management - 1H20
IFS - Wealth and Asset Management - 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 678 795 -14.7% 743 -8.7% 1,422 1,561 -8.9% Operating Expenses and Dep. -601 -632 -4.9% -642 -6.4% -1,243 -1,273 -2.3% Gross Operating Income 77 163 -52.5% 101 -23.3% 178 288 -3
Slide 68: Corporate and Institutional Banking – 1H20
Corporate and Institutional Banking – 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 2Q19 1Q20 1H19 Revenues 4,123 3,099 +33.1% 2,953 +39.7% 7,076 6,107 +15.9% Operating Expenses and Dep. -2,220 -1,997 +11.2% -2,393 -7.2% -4,612 -4,459 +3.4% Gross Operating Income 1,904 1,102 +72.7% 560 n.s.
Slide 69: Corporate and Institutional Banking - Corporate Banking 1H20
Corporate and Institutional Banking Corporate Banking – 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 1,258 1,094 +15.0% 1,070 +17.6% 2,328 2,063 +12.9% Operating Expenses and Dep. -632 -607 +4.1% -748 -15.6% -1,380 -1,331 +3.7% Gross Operating Income 627 48
Slide 70: Corporate and Institutional Banking - Global Markets 1H20
Corporate and Institutional Banking Global Markets – 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 2,304 1,409 +63.5% 1,306 +76.5% 3,610 2,932 +23.1% incl. FICC 2,013 793 n.s. 1,392 +44.6% 3,406 1,828 +86.3% incl. Equity & Prime Services 290 615 -52.8% -87 n
Slide 71: Corporate and Institutional Banking - Market risks
Corporate and Institutional Banking Market risks – 1T20 Average 99% 1-day interval VaR ( Value at Risk) Commodities Forex Equities Interest Rates Credit Nettings €m 54 43 43 43 5 42 35 35 33 36 37 35 6 6 6 34 15 29 28 31 3 31 8 28 31 27 27 14 4 3 4 11 6 25 24 23 25 26 24 4 14 20 24 7 5 22 22 23 4 4
Slide 72: Corporate and Institutional Banking - Securities Services 1H20
Corporate and Institutional Banking Securities Services – 1H20 2Q20 2Q19 2Q20 / 1Q20 2Q20 / 1H20 1H19 1H20 / €m 0 0 2Q19 0 1Q20 0 0 1H19 Revenues 561 596 -5.9% 577 -2.8% 1,138 1,112 +2.3% Operating Expenses and Dep. -451 -477 -5.4% -482 -6.4% -933 -941 -0.8% Gross Operating Income 109 119 -7.9% 95 +
Slide 73: CIB Transactions – 1H20 - Corporates
Corporate and Institutional Banking Transactions – 1H20 - Corporates United Kingdom – BP France – Airbus USD 10bn Syndicated facility EUR 15bn Syndicated facility Sole Underwriter & Bookrunner – April 2020 Joint underwriter – April 2020 USD 12bn equivalent Debut multi-currency hybrid transaction EUR
Slide 74: CIB Transactions – 1H20 - Institutionals
Corporate and Institutional Banking Transaction – 1H20 - Institutionals Italy – Republic of Italy France – Bpifrance EUR 22.3bn 5-year Italian inflation linked-bond issuance EUR 1.5bn 7-year inaugural Covid-19 Response aimed at financing measures in response to Covid-19 bond, first French Covid bond
Slide 75: CIB Rankings & Awards - 1H20
Corporate and Institutional Banking Rankings & Awards - 1H20 Global Markets: • N°1 EMEA DCM and n°1 All Bonds in Euros by volume and number of deals (Dealogic, 1H20) • N°1 All Sustainable Finance in Euros and n°2 European FIC DCM by volume (Dealogic, 1H20) • Six deals recognised for SSA bonds, Equit
Slide 76: Corporate Centre – 2Q20
Corporate Centre – 2Q20 €m 2Q20 2Q19 1Q20 1H20 1H19 Revenues -78 53 126 48 90 Operating Expenses and Dep. -329 -436 -114 -442 -837 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -75 -335 -79 -154 -542 Gross Operating Income -406 -383 12 -394 -747 Cost of Risk -33 7 -13 -4
Slide 77: Corporate Centre – 1H20
Corporate Centre – 1H20 Revenues • Negative contribution of Principal Investments arising from the crisis Operating expenses • Restructuring costs1: -€58m (-€100m in 1H19) • Additional adaptation costs – departure plans2: -€18m (-€51m in 1H19) • IT reinforcement costs: -€79m (€0m in 1H19) • Transfor
Slide 78: Breakdown of taxes and contributions subject to IFRIC 21
Breakdown of taxes and contributions subject to IFRIC 21 €m 1H20 1H19 Domestic Markets 1 -514 -451 Operating expenses include 1,284 million euros, 1 covering almost the entire amount of taxes and French Retail Banking -132 -97 1 contributions for the year (including the BNL bc -42 -39 contribution t
Slide 79: Appendices
GROUP RESULTS DIVISION RESULTS CONCLUSION 2Q20 DETAILED RESULTS APPENDICES
Slide 80: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 30-Jun-20 30-Jun-19 Number of Shares (end of period) 1,250 1,250 Number of Shares excluding Treasury Shares (end of period) 1,248 1,248 Average number of Shares outstanding excluding Treasury Shares 1,248 1,248 Earnings per Share i
Slide 81: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 30-Jun-20 31-Dec-19 30-Jun-19 Total Capital Ratio (a) 15.9% 15.5% 15.2% Tier 1 Ratio (a) 13.9% 13.5% 13.3% Common equity Tier 1 ratio (a) 12.4% 12.1% 11.9% (a) CRD4, o n risk-weighted assets o f € 696 bn as at 30.06.20 € 669 bn as at 31.12.19 an
Slide 82: Return on Equity and Permanent Shareholders’ Equity
Return on Equity and Permanent Shareholders’ Equity Calculation of Return on Equity in millions of euros 30-Jun-20 30-Jun-19 Net income Group share 3,581 4,386 (1) Exceptional items (after tax) (a) 146 178 (2) of which exceptonal items (not annualised) 243 569 (3) of which IT reinforcement and restr
Slide 83: A Solid Financial Structure
A Solid Financial Structure Doubtful loans/gross outstandings 30-Jun-20 31-Dec-19 Doubtful loans (a) / Loans (b) 2.2% 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 84: Ratio common equity Tier 1
Ratio common equity Tier 1 Basel 3 Common equity Tier 1 ratio1 (Accounting capital to prudential capital reconciliation) 2 2 €bn 30-Jun-20 31-Mar-20 Consolidated Equity 116.0 113.5 Undated super subordinated notes -10.3 -10.3 2020 project of dividend distribution -1.7 -0.6 3 -2.2 -3.3 Regulatory adj
Slide 85: 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, €3.2bn already issued2 • AT1: $1.75bn (€1.6bn) issued on 18.02.20, Perp NC10 3, 4.50% s.a. coupon, equiv. mid-swap€+251 bps, • Tier 2:
Slide 86: TLAC ratio: 2.9% above the requirement
TLAC ratio: 2.9% above the requirement without the Preferred Senior allowance TLAC BNP Paribas TLAC ratio TLAC requirement in 2Q20: 20.02% of RWA requirement as at 30.06.20 in 2Q20 • Including capital conservation buffer, G-SIB buffer and countercyclical capital buffer, • TLAC requirement at 20.02%
Slide 87: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements in 2Q201 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 88: 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 1 Domestic Markets Loan outstandings as of the beg. of the quarter (€bn) 362.3 401.3 411.0 412.6 416.4 416.1 414.0 422.1 427
Slide 89: 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 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 Cost of risk (
Slide 90: Risk-Weighted Assets
Risk-Weighted Assets Risk-Weighted Assets1: €696bn as at 30.06.20 (€697bn as at 31.03.20) • The -€1bn change is mainly explained by: • -€3bn decrease in credit risk (including Equity risk not subject to 250% weighting) • - €2bn decrease in counterparty risk • +€4bn increase in market risk bn€ 30.06.
Slide 91: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as 30.06.2020 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
Slide 92: Breakdown of Commitments by Industry
Breakdown of Commitments by Industry (Corporate Asset Class) Mining, metals & materials (including cement, packages,…) 4% IT & electronics 3% Wholesale & trading 7% Real Estate 11% B to B Services 9% Finance 6% Communication Services 3% Insurance 2% Equipment excluding IT - Electronic 6% Transport &
Slide 93: Breakdown of Commitments by Region
Breakdown of Commitments by Region Rest of the World 5% Asia Pacific 8% France 30% North America 14% Italy 9% Other European countries 20% Belgium & Luxembourg 14% Total gross commitments on and off balance sheet, unweighted = €1,776bn as at 30.06.2020 1. Excluding Equity credit exposure class Secon