Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q3 2020 Earnings Presentation
89 slides from Bnp Paribas S.a. Class A's earnings presentation, Nov 3, 2020
Slide 1: Third Quarter 2020 Results
THIRD QUARTER 2020 RESULTS 3 November 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: 3Q20: Very good resilience of results
3Q20 Very good resilience of results Stable revenues Revenues: stable vs. 3Q19 Significant decrease in operating expenses – Operating expenses: -3.8% vs. 3Q19 Positive jaws effect Strong growth in gross operating income Gross operating income: +7.9% vs. 3Q19 Increase in the cost of risk vs. 3Q19 due
Slide 4: BNP Paribas: a resilient model in the various phases of the crisis
BNP Paribas: a resilient model in the various phases of the crisis A gradual and differentiated recovery in economic activity in 3Q20 Differentiated recovery momentum from one region, and one sector, to another Extension of public support to the most affected sectors, particularly in Europe (extensi
Slide 5: Group Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M20 DETAILED RESULTS APPENDICES 5
Slide 6: Main exceptional items – 3Q20
Main exceptional items – 3Q20 Exceptional items 3Q20 3Q19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€44m -€78m • IT reinforcement costs (Corporate Centre) -€40m • Donations and staff safety measures relating to the health crisis (Corporate Centre) -€21m • Tr
Slide 7: Consolidated Group – 3Q20
Consolidated Group – 3Q20 Good level of results – Positive jaws effect 3Q20 3Q20 vs. 3Q19 3Q20 3Q19 vs. 3Q19 At constant Périmètre scope & & change exchange constantsrates Revenues €10,885m €10,896m -0.1% +2.1% Operating expenses -€7,137m -€7,421m -3.8% -2.4% Gross operating income €3,748m €3,475m +
Slide 8: Consolidated Group – 9M20
Consolidated Group – 9M20 Good level of result, ahead of 2020 net income1 outlook Positive jaws effect – Almost doubling of cost of risk 9M20 9M20 vs. 9M19 9M20 9M19 vs. 9M19 At constant scope & exchange rates Revenues €33,448m €33,264m +0.6% +1.8% Operating expenses -€22,632m -€23,305m -2.9% -2.4%
Slide 9: Revenues of the Operating Divisions – 3Q20
Revenues of the Operating Divisions – 3Q20 Gradual recovery in business activity in 3Q20 and strength of the diversified model Domestic International CIB Operating Markets1 Financial Services divisions -0.6% -7.2% +17.4% +1.7% at constant scope & -3.9% exchange rates 3,892 3,867 4,248 3,943 3Q19 3,3
Slide 10: Operating expenses of the Operating Divisions – 3Q20
Operating expenses of the Operating Divisions – 3Q20 Ongoing impact of cost-saving measures Domestic International Operating Markets1 Financial Services CIB divisions -2.4% -6.4% +7.2% -1.2% at constant scope & -3.6% exchange rates 3Q19 2,607 2,543 2,545 2,382 1,974 2,117 3Q20 €m Positive jaws eff
Slide 11: Cost of Risk by Business Unit (1/3)
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: €1,245m -€202m vs. 2Q20 67 65 +€398m vs. 3Q19 57 46 39 39 38 41 46 • Cost of risk higher vs. 3Q19 due to the effect of the 35 30 health crisis 2016 2017 201
Slide 12: Cost of Risk by Business Unit (2/3)
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: €137m +€47m vs. 2Q20 +€61m vs. 3Q19 27 • Increase in cost of risk, in particular with the 24 21 16 17 15 17 16 21 21 18 impact of a specific file 2016 2017 20
Slide 13: Cost of Risk by Business Unit (3/3)
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: €383m 240 187 165 -€67m vs. 2Q20 159 147 141 145 145 123 154 156 +€17m vs. 3Q19 • Slight increase in the cost of risk vs. 3Q19 2016 2017 2018 201
Slide 14: A very solid financial structure
A very solid financial structure Increase in CET1 ratio CET1 ratio: 12.6% as at 30.09.201 CET1 ratio • 3Q20 result after taking into account a 50% dividend pay-out ratio: +10 bps • Decrease in risk-weighted assets (at constant exchange rates): +10 bps 12.6% 12.4% • Overall limited impact of other ef
Slide 15: Net tangible book value per share: €72.2
Net tangible book value per share1: €72.2 Net book value per share1, end of period € 2008-3Q20 CAGR: +5.0% 79.0 81.2 75.1 74.7 70.9 73.9 9.3 9.0 63.1 65.0 66.6 10.6 10.0 9.9 10.7 69.7 72.21 Net tangible book value per 55.6 57.1 51.9 10.7 10.0 10.9 63.3 65.1 64.8 share 60.2 45.7 11.5 11.7 55.0 55.7 1
Slide 16: 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 and reinforcement of the operating model for combating money laundering and terrorism financing: A stan
Slide 17: An ambitious policy of Engagement with Society (1/2)
An ambitious policy of Engagement with Society The ambition to be a leader in sustainable finance (1/2) PACTA methodology developed on the initiative of 5 banks, including BNP Paribas, A methodology to • initiated in 2018 at the COP24 in Katowice align loan portfolios with • Open source tool: standa
Slide 18: An ambitious policy of Engagement with Society (2/2)
An ambitious policy of Engagement with Society The ambition to be a leader in sustainable finance (2/2) • #3 worldwide1 in the sustainable bonds market as at the end of September 2020 with Leading €8.7bn in sustainable bonds as joint bookrunner for its clients positions in Strong increase of the soc
Slide 19: Division Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M20 DETAILED RESULTS APPENDICES
Slide 20: Domestic Markets – 3Q20
Domestic Markets – 3Q20 Very strong resilience and positive jaws effect Business activity rebound in 3Q20 Loans • Loans: +6.3% vs. 3Q19, increase in all business lines, good growth in loan €bn +6.3% production for individual customers and strong rebound at Arval 414 440 52 54 Other DM • Deposits: +1
Slide 21: DM – French Retail Banking – 3Q20
DM – French Retail Banking – 3Q20 Good level of business activity and gains in operating efficiency Continued good level of activity Loans • Loans: +10.8% vs. 3Q19, increase in loans to individuals, particularly mortgage €bn +10.8% loans, and to corporates (even when excluding state-guaranteed loans
Slide 22: DM – BNL banca commerciale – 3Q20
DM – BNL banca commerciale – 3Q20 Good business activity, ongoing cost savings and positive jaws effect Growth in business activity Market share on the • Loans: +3.4%1 vs. 3Q19, up by more than 6% on the perimeter excluding corporate segment (loans) non-performing loans, increase in mortgage loans a
Slide 23: DM – Belgian Retail Banking – 3Q20
DM – Belgian Retail Banking – 3Q20 Good performance and positive jaws effect Growth in business activity Loans • Loans: +2.5% vs. 3Q19, in particular good growth in mortgage loans €bn +2.5% • Deposits: +4.5% vs. 3Q19, strong increase in individual customer deposits • Off-balance sheet savings: +1.6%
Slide 24: DM – Other Activities – 3Q20
DM – Other Activities – 3Q20 Good overall momentum, revenue growth and positive jaws effect Very good development of activity in all businesses Arval financed fleet • Arval: growth of the financed fleet +7.0% vs. 3Q19, increase in orders +7.0% (+7.0% vs. 3Q19) and good performance of used car prices
Slide 25: International Financial Services – 3Q20
International Financial Services – 3Q20 Prolonged effects of the health crisis and ongoing cost savings Business momentum confirmed after its late 2Q20 return Outstanding loans1 • Increase in outstandings (+1.5%1 vs. 3Q19) in international retail networks2 • Return to growth in outstandings at Perso
Slide 26: IFS – Personal Finance – 3Q20
IFS – Personal Finance – 3Q20 Confirmation of the resilience of activity Production rebound in 3Q20 Rebound in monthly production Change in monthly production in % - M/M-12 • Outstanding loans: -2.5% vs. 3Q19 (-1.2% at constant scope and exchange rates), return to growth in outstandings late in the
Slide 27: IFS – Europe-Mediterranean – 3Q20
IFS – Europe-Mediterranean – 3Q20 Good business drive in a lacklustre environment Continued growth in outstandings vs. 3Q19 Loans1 • Loans: +3.4%1 vs. 3Q19, rebound in loan production, in particular in loans to €bn +3.4%1 individuals in Poland (+33%1 in September 2020 vs. September 2019) 34.9 36.0 •
Slide 28: IFS – BancWest – 3Q20
IFS – BancWest – 3Q20 Increase in revenues and positive jaws effect Continued good sales and marketing drive Loans1 • Loans: +0.3%1 vs. 3Q19, good level in loan production and in particular in $bn +0.3% collateralised equipment loans2 in 3Q20 (+54% vs. 3Q19) 62.4 62.6 • Deposits: +20.8%3 vs. 3Q19, s
Slide 29: IFS – Insurance and WAM – Asset Flows and AuM – 9M20
IFS – Insurance and WAM1 – Asset Flows and AuM – 9M20 Very good net asset inflows Assets under management: €1,110bn as at 30.09.20 Change in assets under management2 • -1.2% vs. 31.12.19 (stable vs. 30.09.19) €bn Performance effect Foreign • Very good level of net asset inflows: +€30.4bn in 9M20 +30
Slide 30: IFS – Insurance – 3Q20
IFS – Insurance – 3Q20 Good resilience and continued business development Activity held up well • Good performance of Protection in France and Asia • Growth in creditor protection insurance in France, with the development of Cardif Libertés Emprunteur • Diversification of asset inflows in France, It
Slide 31: IFS – WAM – 3Q20
IFS – WAM1 – 3Q20 Good resilience of activity Wealth Management • Good net asset inflows, particularly in Asia, and in domestic markets (in particular in Italy) • A recognised global player, awarded by Private Banker International for the 9th consecutive year, as well as in the Wealthbriefing Europe
Slide 32: Corporate & Institutional Banking – 3Q20
Corporate & Institutional Banking – 3Q20 Strong performances in all client segments Strong drive in all businesses Revenues • Financing: activity in 3Q20 evolving from syndicated loans towards bond and +17.4% €bn equity issuances, in order to strengthen companies’ balance sheets • Markets: normalizi
Slide 33: CIB: Corporate Banking – 3Q20
CIB: Corporate Banking – 3Q20 Solid growth driven by business momentum Strengthened business drive 2018-9M20 European rankings2 • Increase in outstanding loans (€158.9bn, +8.7% vs. 3Q19)1, use of credit Rankings and market lines normalizing after the crisis-related peak shares in volume • Continued
Slide 34: CIB: Global Markets – 3Q20
CIB: Global Markets – 3Q20 Strong growth in FICC and Equity & Prime Services Strong activity in a normalising environment Trend in revenues • Primary market activity: strong bond issuance in 3Q20 €m 2,304 (volumes in line with 2019 level); #1 for bonds in euros1 290 • Rate and forex markets: good cl
Slide 35: CIB: Securities Services – 3Q20
CIB: Securities Services – 3Q20 Increase in business activity Continued strong business drive Assets under custody(AuC) • Strengthening of commercial relations, driven by the integrated and under administration (AuA) banking model (including cooperation in forex, collateral management End of period
Slide 36: Conclusion
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M20 DETAILED RESULTS APPENDICES
Slide 37: Conclusion
Conclusion Strong mobilisation to serve the economy and the society Key contribution of the diversified and integrated model Revenues: stable vs. 3Q19 Continued gains in efficiency Operating expenses: -3.8% vs. 3Q19 Increase in the cost of risk vs. 3Q19 due to the health crisis Cost of risk: 57 bps1
Slide 38: 9M20 Detailed Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M20 DETAILED RESULTS APPENDICES
Slide 39: Moratoria
Moratoria1 Efficient resorption of loans having exited moratorium 580,000 moratoria2 expired by 30 September 2020 More than 60% of moratoria already expired, in both number and total outstandings More than 99%3 of loans under expired moratoria are performing % Non-performing expired loans4 DM networ
Slide 40: A diversified model
A diversified model A prudent risk profile with no sector concentration Highly diversified by sector: no sector representing more than 5% of the total portfolio High selectivity at origination Limited exposures to sectors considered as sensitive Aircraft: 0.8% of total gross commitments1 Oil & Gas:
Slide 41: Main exceptional items – 9M20
Main exceptional items – 9M20 Exceptional items 9M20 9M19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€120m -€229m • IT reinforcement costs (Corporate Centre) -€119m • Donations and staff safety measures relating to the public health crisis (Corporate Centre)
Slide 42: BNP Paribas Group – 9M20
BNP Paribas Group – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 3Q19 2Q20 9M19 Group n.s. n.s. n.s. Revenues 10,885 10,896 -0.1% 11,675 -6.8% 33,448 33,264 +0.6% Operating Expenses and Dep. -7,137 -7,421 -3.8% -7,338 -2.7% -22,632 -23,305 -2.9% Gross Operating Income 3,748 3,475 +7.9% 4,33
Slide 43: Retail Banking and Services – 9M20
Retail Banking and Services – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 7,677 8,006 -4.1% 7,615 +0.8% 23,114 24,147 -4.3% Operating Expenses and Dep. -4,855 -5,084 -4.5% -4,790 +1.4% -15,295 -15,672 -2.4% Gross Operating Income 2,822 2,922 -3.5% 2,825 -0
Slide 44: Domestic Markets – 9M20
Domestic Markets – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 3,867 3,892 -0.6% 3,721 +3.9% 11,501 11,778 -2.3% Operating Expenses and Dep. -2,543 -2,607 -2.4% -2,446 +4.0% -7,958 -8,107 -1.8% Gross Operating Income 1,324 1,285 +3.0% 1,276 +3.8% 3,543 3,6
Slide 45: Domestic Markets – 3Q 2020
Domestic Markets – 3Q 2020 A simplified and streamlined commercial set-up Continuing branch network Retail networks’ operating costs1 optimisation 558 branches closed since 31.12.2016 Branches redesigned to adapt to new €m customers behaviour 938 -287 -3.6% 785 498 - 190 2,200 2012 2016 30.09.20 1,9
Slide 46: DM – French Retail Banking – 9M20
DM – French Retail Banking – 9M20 (excluding PEL/CEL effects) 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 1,496 1,568 -4.6% 1,408 +6.3% 4,428 4,759 -7.0% Incl. Net Interest Income 852 901 -5.5% 774 +10.1% 2,448 2,702 -9.4% Incl. Commissions 645 667 -3.3% 634 +1
Slide 47: DM – French Retail Banking: Volumes
DM – French Retail Banking Volumes Outstandings Outstandings %Var/3Q19 %Var/2Q20 %Var/9M19 Average outstandings (€bn) 3Q20 9M20 LOANS 194.4 +10.8% +3.9% 186.6 +8.2% Individual Customers 99.4 +3.7% +1.6% 98.4 +4.4% Incl. Mortgages 88.7 +4.6% +1.4% 87.7 +5.2% Incl. Consumer Lending 10.7 -3.7% +3.2% 10
Slide 48: DM – BNL banca commerciale – 9M20
DM – BNL banca commerciale – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 3Q19 2Q20 9M19 Revenues 669 663 +1.0% 649 +3.1% 1,977 2,023 -2.2% Operating Expenses and Dep. -426 -446 -4.6% -422 +0.9% -1,313 -1,349 -2.7% Gross Operating Income 244 217 +12.5% 227 +7.3% 665 673 -1.3% Cost of Risk -
Slide 49: DM – BNL banca commerciale: Volumes
DM – BNL banca commerciale Volumes Outstandings Outstandings %Var/3Q19 %Var/2Q20 %Var/9M19 Average outstandings (€bn) 3Q20 9M20 LOANS 77.2 +3.4% +2.4% 75.2 -0.8% Individual Customers 39.7 +3.7% +1.3% 39.3 +1.1% Incl. Mortgages 25.3 +3.3% +0.8% 25.3 +2.4% Incl. Consumer Lending 4.6 +1.1% -0.0% 4.8 +6
Slide 50: DM – Belgian Retail Banking – 9M20
DM – Belgian Retail Banking – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 3Q19 2Q20 9M19 Revenues 851 853 -0.3% 835 +2.0% 2,571 2,646 -2.8% Operating Expenses and Dep. -523 -541 -3.4% -499 +4.8% -1,852 -1,920 -3.6% Gross Operating Income 329 312 +5.1% 336 -2.2% 719 726 -1.0% Cost of Risk -
Slide 51: DM – Belgian Retail Banking: Volumes
DM – Belgian Retail Banking Volumes Outstandings Outstandings %Var/3Q19 %Var/2Q20 %Var/9M19 Average outstandings (€bn) 3Q20 9M20 LOANS 114.5 +2.5% -0.9% 114.6 +4.0% Individual Customers 73.3 +3.8% +0.3% 72.9 +4.4% Incl. Mortgages 53.5 +4.2% +0.4% 53.3 +5.1% Incl. Consumer Lending 0.3 -2.7% -17.6% 0.
Slide 52: DM – Other Activities – 9M20
DM – Other Activities – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 850 807 +5.2% 829 +2.5% 2,525 2,350 +7.4% Operating Expenses and Dep. -469 -457 +2.7% -451 +4.1% -1,429 -1,387 +3.0% Gross Operating Income 380 351 +8.5% 378 +0.5% 1,096 963 +13.8% Cost of
Slide 53: DM – LRB – Personal Investors
DM – LRB – Personal Investors Luxembourg Retail Banking (LRB) Average outstandings (€bn) 3Q20 %Var/3Q19 %Var/2Q20 9M20 %Var/9M19 Loans vs. 3Q19: good growth in LOANS 11.4 +6.5% -0.4% 11.4 +9.0% mortgage loans and very good Individual Customers 7.3 +5.8% +1.0% 7.2 +6.9% drive in corporate loans Corpo
Slide 54: DM – Arval – Leasing Solutions – Nickel
DM – Arval – Leasing Solutions – Nickel Arval %Var/3Q19 %Var/2Q20 %Var/9M19 at constant at constant at constant 3Q20 9M20 scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rates Consolidated outstandings 21.6 +8.4% +9.6%
Slide 55: International Financial Services – 9M20
International Financial Services – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 3Q19 2Q20 9M19 Revenues 3,943 4,248 -7.2% 4,027 -2.1% 12,023 12,792 -6.0% Operating Expenses and Dep. -2,382 -2,545 -6.4% -2,414 -1.3% -7,562 -7,792 -2.9% Gross Operating Income 1,561 1,704 -8.4% 1,613 -3.3% 4,4
Slide 56: IFS – Personal Finance – 9M20
IFS – Personal Finance – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 1,343 1,444 -7.0% 1,302 +3.2% 4,120 4,311 -4.4% Operating Expenses and Dep. -641 -664 -3.5% -641 -0.1% -2,069 -2,136 -3.1% Gross Operating Income 703 781 -10.0% 661 +6.3% 2,051 2,175 -5.7
Slide 57: IFS – Personal Finance: Volumes and risks
IFS – Personal Finance Volumes and risks Outstandings %Var/3Q19 %Var/2Q20 Outstandings %Var/9M19 at constant at constant at constant scope and scope and scope and 3Q20 historical historical 9M20 historical exchange exchange exchange Average outstandings (€bn) rates rates rates TOTAL CONSOLIDATED OUT
Slide 58: IFS – Europe-Mediterranean – 9M20
IFS – Europe-Mediterranean – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 561 657 -14.7% 609 -7.9% 1,835 1,997 -8.1% Operating Expenses and Dep. -405 -439 -7.8% -414 -2.1% -1,309 -1,340 -2.3% Gross Operating Income 156 218 -28.6% 196 -20.3% 526 658 -20.0% C
Slide 59: IFS – Europe-Mediterranean: Volumes and risks
IFS – Europe-Mediterranean Volumes and risks Outstandings %Var/3Q19 %Var/2Q20 Outstandings %Var/9M19 at constant at constant at constant scope and scope and scope and 3Q20 historical historical 9M20 historical exchange exchange exchange Average outstandings (€bn) rates rates rates n.s. n.s. n.s. n.s
Slide 60: IFS – BancWest – 9M20
IFS – BancWest – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 627 601 +4.2% 629 -0.4% 1,866 1,764 +5.8% Operating Expenses and Dep. -403 -433 -6.9% -432 -6.7% -1,300 -1,306 -0.5% Gross Operating Income 224 168 +32.9% 197 +13.7% 567 458 +23.8% Cost of Risk -
Slide 61: IFS – BancWest: Volumes
IFS – BancWest Volumes Outstandings %Var/3Q19 %Var/2Q20 Outstandings %Var/9M19 at constant at constant at constant scope and scope and scope and 3Q20 historical historical 9M20 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 62: IFS – Insurance and WAM: Business volumes
IFS – Insurance and WAM1 Business volumes %Var/ %Var/ 30.09.20 30.09.19 30.06.20 €bn 30.09.19 30.06.20 Assets under management (€bn) 1,109.6 1,109.6 -0.0% 1,085.1 +2.3% Asset Management 445 436 +2.3% 428 +4.1% Wealth Management 380 385 -1.3% 377 +0.7% Real Estate Services 29 30 -2.2% 29 +1.5% Insura
Slide 63: IFS – Insurance & WAM: Breakdown of assets by client segment
IFS – Insurance & WAM1 Breakdown of assets by client segment €1,110bn €1,110bn Corporate & 32% 34% Institutions 52% Individuals 51% External 16% distribution 15% 30 Sept 2019 30 Sept 2020 1. Asset Management, Wealth Management and Real Estate Services Third quarter 2020 results | 63
Slide 64: IFS – Asset Management: Breakdown in managed assets
IFS – Asset Management Breakdown in managed assets 30.09.20 Alternatives and others 5% Bonds 31% Diversified 27% ▶ 51% Money-market 18% Equities 19% €445bn Third quarter 2020 results | 64
Slide 65: IFS – Insurance – 9M20
IFS – Insurance – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 697 761 -8.4% 828 -15.8% 2,104 2,414 -12.8% Operating Expenses and Dep. -347 -370 -6.4% -339 +2.3% -1,078 -1,120 -3.7% Gross Operating Income 350 390 -10.3% 489 -28.4% 1,025 1,294 -20.7% Cost of
Slide 66: IFS – Wealth and Asset Management – 9M20
IFS – Wealth and Asset Management – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 734 803 -8.6% 678 +8.2% 2,155 2,364 -8.8% Operating Expenses and Dep. -598 -649 -8.0% -601 -0.5% -1,841 -1,922 -4.2% Gross Operating Income 136 154 -11.3% 77 +75.6% 315 441 -28
Slide 67: Corporate and Institutional Banking – 9M20
Corporate and Institutional Banking – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 3Q19 2Q20 9M19 Revenues 3,372 2,873 +17.4% 4,123 -18.2% 10,448 8,980 +16.4% Operating Expenses and Dep. -2,117 -1,974 +7.2% -2,220 -4.6% -6,729 -6,434 +4.6% Gross Operating Income 1,255 898 +39.7% 1,904 -34.1
Slide 68: CIB: Corporate Banking – 9M20
Corporate and Institutional Banking Corporate Banking – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 1,118 1,039 +7.5% 1,258 -11.2% 3,446 3,102 +11.1% Operating Expenses and Dep. -598 -600 -0.2% -632 -5.3% -1,978 -1,930 +2.5% Gross Operating Income 520 440
Slide 69: CIB: Global Markets – 9M20
Corporate and Institutional Banking Global Markets – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 1,711 1,299 +31.8% 2,304 -25.7% 5,321 4,230 +25.8% incl. FICC 1,245 915 +36.0% 2,013 -38.2% 4,650 2,743 +69.5% incl. Equity & Prime Services 466 384 +21.4% 290
Slide 70: CIB: Market risks – 3Q20
Corporate and Institutional Banking Market risks – 3Q20 Average 99% 1-day interval VaR ( Value at Risk) €m Commodities Forex Equities Interest Rates Credit Nettings 54 42 43 43 43 5 46 35 35 33 36 37 34 35 15 5 3 29 28 31 8 6 6 6 28 31 31 27 27 14 4 3 4 4 4 14 20 24 6 7 5 22 22 25 24 23 23 20 25 26
Slide 71: CIB: Securities Services – 9M20
Corporate and Institutional Banking Securities Services – 9M20 3Q20 3Q19 3Q20 / 2Q20 3Q20 / 9M20 9M19 9M20 / €m 0 0 3Q19 0 2Q20 0 0 9M19 Revenues 544 535 +1.6% 561 -3.1% 1,681 1,647 +2.1% Operating Expenses and Dep. -454 -449 +1.2% -451 +0.7% -1,388 -1,389 -0.1% Gross Operating Income 89 86 +4.1% 10
Slide 72: CIB: Transactions – 3Q20 – Corporates
Corporate and Institutional Banking Transactions – 3Q20 – Corporates UK – Tesco United States – Intel GBP 2.5bn day one risk free rate revolving credit facility USD 10bn Accelerated share repurchase Sustainability Coordinator & Bookrunner – September 2020 Sole Structuring Advisor – August 2020 Nethe
Slide 73: CIB: Transactions – 3Q20 – Institutionals
Corporate and Institutional Banking Transactions – 3Q20 – Institutionals Spain - FGD Asian Infrastructure Investment Bank (AIIB) EUR 4bn Liquidity facility USD 3bn 0.250% 3y Global Sustainable Development Bond Debt Advisor & Global Coordinator Joint Lead Managers – September 2020 July 2020 United St
Slide 74: CIB: Rankings and Awards – 9M20
Corporate and Institutional Banking Rankings and Awards – 9M20 Global Markets: • #1 All Bonds in Euros and n°1 European International DCM by volume and number of deals (Dealogic, 9M20) • #1 Global Pandemic Bonds for Corporates and Governments (Bloomberg, 9M20) • #3 All Sustainable Finance in Euros a
Slide 75: Corporate Centre – 3Q20
Corporate Centre – 3Q20 €m 3Q20 3Q19 2Q20 9M20 9M19 Revenues -165 27 -78 -117 117 Operating Expenses and Dep. -165 -363 -329 -607 -1,199 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -84 -256 -75 -239 -798 Gross Operating Income -330 -336 -406 -724 -1,083 Cost of Risk 3
Slide 76: Corporate Centre – 9M20
Corporate Centre – 9M20 Revenues • Negative contribution of Principal Investments arising from the crisis • Impact of a non-recurring negative item in 3Q20 Operating expenses • Restructuring costs1: -€83m (-€148m in 9M19) • Additional adaptation costs – departure plans2: -€37m (-€81m in 9M19) • IT r
Slide 77: Appendices
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M20 DETAILED RESULTS APPENDICES
Slide 78: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 30-Sep-20 30-Sep-19 Number of Shares (end of period) 1,250 1,250 Number of Shares excluding Treasury Shares (end of period) 1,249 1,248 Average number of Shares outstanding excluding Treasury Shares 1,248 1,248 Earnings per Share i
Slide 79: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 30-Sep-20 31-Dec-19 30-Sep-19 Total Capital Ratio (a) 16.3% 15.5% 15.4% Tier 1 Ratio (a) 14.1% 13.5% 13.3% Common equity Tier 1 ratio (a) 12.6% 12.1% 12.0% (a) CRD4, o n risk-weighted assets o f € 686 bn as at 30.09.20 € 669 bn as at 31.12.19 an
Slide 80: Return on Equity and Permanent Shareholders' Equity
Return on Equity and Permanent Shareholders’ Equity Calculation of Return on Equity in millions of euros 30-Sep-20 30-Sep-19 Net income Group share 5,475 6,324 (1) Exceptional items (after tax) (a) 99 0 (2) of which exceptonal items (not annualised) 243 513 (3) of which IT reinforcement and restruct
Slide 81: A Solid Financial Structure
A Solid Financial Structure Doubtful loans/gross outstandings 30-Sep-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 82: 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-Sep-20 30-Jun-20 Consolidated Equity 116.4 116.0 Undated super subordinated notes -10.3 -10.3 2020 project of dividend distribution -2.6 -1.7 3 -1.7 -2.2 Regulatory adj
Slide 83: Medium/Long Term Wholesale Funding
Medium/Long Term Wholesale Funding 2020 Programme 2020 MLT wholesale funding programme1: €35bn 2020 MLT regulatory issuance plan: €17bn • Capital instruments: €4bn; €4.5bn already issued2 • AT1: $1.75bn (€1.5bn) issued on 18.02.20, Perp NC103, 4.50% s.a. coupon, equiv. mid-swap€+251 bps, • Tier 2 is
Slide 84: TLAC ratio: 3.8% above the requirement
TLAC ratio: 3.8% above the requirement without calling on the Preferred Senior debt allowance 23.8% TLAC requirement as at 30.09.20: 20.02% of RWA • Including capital conservation buffer, G-SIB buffer and 20.02% BNP Paribas countercyclical capital buffer, TLAC ratio • TLAC requirement at 20.02% as a
Slide 85: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements as at 30.09.201 “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 86: 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 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.
Slide 87: 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 3Q20 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 56.8 Cost
Slide 88: Risk-Weighted Assets
Risk-Weighted Assets Risk-Weighted Assets1: €686bn as at 30.09.20 (€696bn as at 30.06.20) • The -€10bn change is mainly explained by: • -€9bn decrease in credit risk (including Equity risk) • +€1bn increase in counterparty risk • -€3bn decrease in market risk bn€ 30.09.20 30.06.20 Credit risk 519 52
Slide 89: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as 30.09.2020 Other Activities: 5% FRB: 14% Global Markets & Securities Services: 13% BNL bc: 7% BRB: 7% Corporate Banking: 17% Other Domestic Markets2: 6% Insurance & WAM: 7% Personal Finance: 10% BancWest: 7% Retail Banking