Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q2 2023 Earnings Presentation
84 slides from Bnp Paribas S.a. Class A's earnings presentation, Jul 27, 2023
Slide 1: Second Quarter 2023 Results
SECOND QUARTER 2023 RESULTS 27 July 2023
Slide 2: Disclaimer
Disclaimer The figures included in this presentation are unaudited. On 2 May 2023, BNP Paribas reported restated quarterly series for 2022 to reflect for each quarter: (i) the application of IFRS 5 relating to disposal groups of assets and liabilities held for sale, following the sale of Bank of the
Slide 3: 2Q23: Strong organic growth
2Q23: Strong organic growth Revenue growth supported by the strength of the diversified model Unfavourable forex impact and high negative exceptional items this quarter Revenues: +3.3% vs. 2Q22 • Corporate & Institutional Banking (-0.7%1) • Commercial, Personal Banking & Services (+3.5%1) Operating
Slide 4: Main exceptional items (o/w extraordinary ones) – 2Q23
Main exceptional items (o/w extraordinary ones) – 2Q23 High negative level weighing on 2Q23 results 2Q23 2Q22 Exceptional items (excl. extraordinary ones) Revenues • Provisions for litigation (Corporate Centre) -€125m Total exceptional revenues (excl. extraordinary ones) -€125m Operating expenses •
Slide 5: 2Q23 – Consolidated Group
2Q23 – Consolidated Groupe Solid results reflecting the Group’s strong intrinsic performance Adjustments 2Q23 2Q23 vs. to 2Q23 2Q22 2Q23 distributable (distributable2) 2Q22 (distributable) (excl. result2 vs. 2Q22 exceptionals3) Revenues €11,363m + €445m €11,808m €11,536m + 2.4% + 3.3% Note: adjustme
Slide 6: A European leader uniquely positioned to generate solid growth in all environments
A European leader uniquely positioned to generate solid growth in all environments Organic growth of net income (€) + 36.7% +11.4% 2Q23 organic growth offsetting the impact of the Bank of the West sale, as in 1Q23 Reported net income excl. exceptional items Total after-tax exceptional items (o/w ext
Slide 7: A balanced and diversified model that supports long-term performance
A balanced and diversified model that supports long-term performance Disciplined growth and long-term vision Capital allocation supporting the Enhanced profitability Prudent risk profile diversified and integrated model ROTE Average CoR / GOI, Basel 3 risk-weighted assets as at 30.06.231 (%) 13.6 20
Slide 8: 2Q23 – Revenues
2Q23 – Revenues Continued revenue growth of the operating divisions CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services -2.3% +3.3% +0.3% +0.7% At constant At constant At constant At constant scope and -0.7% scope and ex
Slide 9: 2Q23 – Operating expenses
2Q23 – Operating expenses Positive jaws effects in operating divisions (+0.7 pt) CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services -1.1% +0.3% +2.0% 0.0% At constant At constant At constant At constant +0.6% scope and
Slide 10: Robust operational performance and disciplined expansion at the heart of growth
Robust operational performance and disciplined expansion at the heart of growth 2022–2025 objective: Solid levers supporting operational performance & growth at Positive jaws effect each year marginal cost in an inflationary context >+2pts on average Development of specialised internal shared servic
Slide 11: A prudent and diversified risk profile
A prudent and diversified risk profile Proactive and long-term management reflected in Prudent growth of market activities: stable VaR a low cost of risk (a measure of market risk) 8.7 Annual Global Markets revenues In bps / customer loans (€bn) outstanding1 6.8 Guidance 5.7 5.4 2022-2025 4,7 58 59
Slide 12: Cost of risk – 2Q23 (1/2)
Cost of risk – 2Q23 (1/2) Cost of risk / Customer loans outstanding at the beginning of the period (in bps) CIB – Global Banking 80 • Cost of risk: -€85m (-€83m vs. 1Q23; -€170m vs. 2Q22) 19 20 26 33 • Release of provisions on performing loans (stages 1 & 2) and a very low 13 0 cost of risk on non-p
Slide 13: Cost of risk – 2Q23 (2/2)
Cost of risk – 2Q23 (2/2) Cost of risk / Customer loans outstanding at the beginning of the period (in bps) BNL bc1 • Cost of risk: €80m (-€18m vs. 1Q23; -€29m vs. 2Q22) • Cost of risk at a historically low level 69 62 58 63 55 57 57 49 • Decrease in provisions on non-performing loans (stage 3) and
Slide 14: 2Q23 – Solid financial structure
2Q23 – Solid financial structure CET1 ratio: 13.6%1 as at 30.06.23 CET1 ratio1 2Q23 results after taking into account a 60% payout ratio, net of changes in risk-weighted assets: +10 bp 13.6% 13.6% Impact from the implementation of partnerships at Personal Finance: -10 bps Overall limited impac
Slide 15: A unique value-creating model
A unique value-creating model Tangible equity per share Amount placed into Earnings per share1 (revalued at the end of period, in €) reserve for distribution (in €) (€bn) +29% +56% 4.72 +63% 3.5 83.8 4.04 78.7 79.3 3.56 69.7 73.2 3.35 2.8 64.8 3.02 2.69 2.1 2.2 1.9 1.7 2018 2019 2020 2021 2022 30.06
Slide 16: Technology at the heart of the GTS 2025 plan
Technology at the heart of the GTS 2025 plan Disciplined investments at the service of technological performance ~100 use cases identified for a generative + than 700 use cases AI experiment with an LLM1 on a secured in production, in line platform Artificial intelligence with the doubling target 20
Slide 17: A clear ambition for a carbon-neutral economy by 2050
A clear ambition for the advent of a carbon-neutral economy by 20501 2010 2016 2017 2018 2019 2020 Coal: 1st policy with Oil & gas: halt to Halt to support of shale PACTA2: agreement on a Seaborne Total halt to financing the entire criteria restricting project financing oil & gas companies methodolo
Slide 18: Strong commitments based on IEA Net Zero by 2050 scenario
Strong commitments on the basis of the International Energy Agency’s “Net Zero by 2050” scenario for the sectors with the highest emissions1 PRODUCTION OIL & GAS POWER GENERATION AUTOMOTIVE D’ÉLECTRICITÉ Reduce financing of exploration Finance the energy mix Increase the share of electrified and pro
Slide 19: A reinforced Internal Control Set-up
A reinforced Internal Control Set-up An even more solid control and compliance set-up and ongoing efforts in inserting a reinforced compliance culture into daily operations • Ongoing improvement of the operating model for combating money laundering and terrorism financing: A standards-based, risk-
Slide 20: Division Results
DIVISION RESULTS CONCLUSION 1H23 & 2Q23 DETAILED RESULTS APPENDICES
Slide 21: Corporate & Institutional Banking – 2Q23
Corporate & Institutional Banking – 2Q23 Very good level of results supported by diversification and a lower cost of risk Good business drive, leveraging a diversified and integrated model Change in pre-tax income • Financing: very good business activity with clients in all three regions €m • Market
Slide 22: CIB – Global Banking – 2Q23
CIB – Global Banking – 2Q23 Very good business momentum and very strong increase in revenues Sustained level of activity Growth in revenues • Very good business momentum, in particular in EMEA bond markets €m 1,425 (+98%1 increase in volumes led vs. 2Q22) • Transaction Banking: very good activity in
Slide 23: CIB – Global Markets – 2Q23
CIB – Global Markets – 2Q23 Continued market share gains in a less buoyant environment Client activity with more normalised levels on the whole Revenues trend • Credit markets: overall activity up sharply, in particular in EMEA; €m market share gains and consolidation of global leadership in euro bo
Slide 24: CIB – Securities Services – 2Q23
CIB – Securities Services – 2Q23 Good business drive Business drive supported by the diversified model Assets under custody (AuC) • Sustained sales & marketing development, in particular in Private and under administration (AuA) Capital with new first-tier mandates Outstandings end of period in €000
Slide 25: Commercial, Personal Banking & Services – 2Q23
Commercial, Personal Banking & Services – 2Q23 High level of results and very positive jaws effect Further growth in activity Loans5 • Loans: +3.6% vs. 2Q22 (+10.4% vs. 2Q21), increase in Commercial & +10.4% Personal Banking in the Eurozone and in Specialised Businesses 612 635 • Arval: strong incre
Slide 26: CPBS – Commercial & Personal Banking in France – 2Q23
CPBS – Commercial & Personal Banking in France – 2Q23 Good level of performance, positive jaws effect Business driven by a favourable sales & marketing positioning Deposits of individual customers • Loans: +1.8% vs. 2Q22, increase in outstandings across all customer As a % of total deposits2 segment
Slide 27: CPBS – BNL banca commerciale – 2Q23
CPBS – BNL banca commerciale – 2Q23 Increase in results and constant improvement in the risk profile Good business activity Deposits • Loans: -2.2% vs. 2Q22, -0.5% on the perimeter excluding non-performing +2.4% loans; growth in mid- and long-term loans offset by the decrease in short- term loans to
Slide 28: CPBS – Commercial & Personal Banking in Belgium – 2Q23
CPBS – Commercial & Personal Banking in Belgium – 2Q23 Increase in results and positive jaws effect Good business drive Loans +3.7% • Loans: +3.7% vs. 2Q22, increase in loans across all customer segments, particularly to corporate clients • Deposits: -0.5% vs. 2Q22 (+0.4% vs. 1Q23), increase in depo
Slide 29: CPBS – Europe-Mediterranean – 2Q23
CPBS – Europe-Mediterranean – 2Q23 Good resilience of activity Commercial activity Loans1 • Loans: -0.6%1 vs. 2Q22, increased volumes in corporate clients, -0.6% particularly in Poland; prudent and targeted origination, particularly in Türkiye and for individual customers in Poland • Deposits: +6.1%
Slide 30: CPBS – Specialised Businesses – Personal Finance – 2Q23
CPBS – Specialised Businesses – Personal Finance – 2Q23 Implementation of the transformation Strong growth in outstandings and improvement in the risk Loans profile €bn +12.4% • Loans: +12.4% vs. 2Q22, strong increase in particular in mobility; improved margins at production vs. 1Q23 despite continu
Slide 31: CPBS – Specialised Businesses – Arval & Leasing Solutions – 2Q23
CPBS – Specialised Businesses – Arval & Leasing Solutions – 2Q23 Very strong performance and positive jaws effect Arval Arval: growth in the financed • Very good growth in the financed fleet vs. 30.06.22) and (+9.5%1 fleet2 continued high used car prices CAGR 19-23 millions • Expansion in the global
Slide 32: CPBS – New Digital Businesses & Personal Investors – 2Q23
CPBS – Specialised Businesses – New Digital Businesses & Personal Investors – 2Q23 Client acquisition engines , a payment offering accessible to everyone Nickel: expansion in Europe • Continued roll-out in Europe with the launch planned in Germany ~3.4m accounts opened2 as at 30.06.23 (~+679k vs. 30
Slide 33: Investment & Protection Services – 2Q23
Investment & Protection Services – 2Q23 Good business momentum in a contrasted environment Business drive sustained in particular by net asset inflows • Insurance: very good growth supported by Savings and Protection, with a Assets under management2 higher technical result €bn • Wealth and Asset Man
Slide 34: IPS – Asset inflows and AuM – 1H23
IPS – Asset inflows and AuM – 1H23 Strong net asset inflows, particularly in money-market funds Assets under management: €1,218bn as at Change in assets under management1 30.06.23 €bn • Market performance effect: +€34.0bn Forex +34.0 effect Others • Net asset inflows: +€23.4bn, very good asset inflo
Slide 35: IPS – Insurance – 2Q23
IPS – Insurance – 2Q23 Growth in results Business activity A balanced model • Savings: gross asset inflows of €11.7bn in 1H23 with positive net asset inflows in France, sustained by asset inflows into unit-linked policies Protection: Savings: 50% 50% • Protection: good momentum in affinity insurance
Slide 36: IPS – Wealth & Asset Management – 2Q23
IPS – Wealth & Asset Management1 – 2Q23 Contrasted environments Good increase at Wealth and Asset Management, base effect and less Private Banking: acknowledged favourable environment at Real Estate and Principal Investments leadership Wealth Management Western Europe’s Best Bank for Wealth Manageme
Slide 37: Conclusion
DIVISION RESULTS CONCLUSION 1H23 & 2Q23 DETAILED RESULTS APPENDICES
Slide 38: Conclusion
Conclusion A solid intrinsic performance reflected in distributable net income Distributable net income1: €3,260m Distributable EPS2: €4.72 (+16.8%) Confirmation of the growth trajectory in distributable net income in 2023 Authorisation for the second €2.5bn tranche of the share buyback programme re
Slide 39: Reminder of GTS 2025 plan objectives
Reminder of GTS 2025 plan objectives Strong and steady growth in distributable income Net income1 GTS 2025 targets 22-25 CAGR revised >+9% (historical scope) 2023: adjusted 2024-25: full impact of 2022: solid growth distributable income additional growth 2022 2023 2023 2024 2025 (incl. BoW) (résulta
Slide 40: Acknowledged leadership
Acknowledged leadership Euromoney Awards for Excellence 2023 Global Best Bank Global Best Bank for Sustainable Finance Additional Awards for Excellence 2023 • Western Europe’s Best Bank • Best Bank in France • Western Europe’s Best Bank for Sustainable Finance • Best Bank in Luxembourg • Western Eur
Slide 41: 1H23 & 2Q23 Detailed Results
DIVISION RESULTS CONCLUSION 1H23 & 2Q23 DETAILED RESULTS APPENDICES
Slide 42: Main exceptional items – 1H23
Main exceptional items – 1H23 Exceptional items 1H23 1H22 Revenues • Provisions for litigation (Corporate Centre) -€125m Total exceptional revenues (excl. extraordinary ones) -€125m Operating expenses • Overall adaptation costs related to Personal Finance (Corporate Centre) -€236m • Restructuring co
Slide 43: 2Q23 – BNP Paribas Group
2Q23 – BNP Paribas Group 2Q23 Distributable 2Q22 2Q23 2Q22 2Q23 / 2Q23 2Q22 2Q23 / distributable / €m 2Q23 2Q22 2Q22 2Q22 (excl. exceptional & 1 extraordinary items ) Group Revenues 11,808 11,536 +2.4% 11,363 11,536 -1.5% 11,918 11,536 +3.3% Operating Expenses and Dep. -6,884 -6,779 +1.5% -6,889 -6,
Slide 44: 1H23 – BNP Paribas Group
1H23 – BNP Paribas Group 1S23 Distributable 1S22 1S23 1S22 1S23 / 1S23 1S22 1S23 / distributable / €m 1S23 1S22 1S22 1S22 (excl. exceptional & 1 extraordinary items ) Group Revenues 24,300 23,404 +3.8% 23,395 23,404 -0.0% 24,353 23,404 +4.1% Operating Expenses and Dep. -15,178 -15,533 -2.3% -16,080
Slide 45: Calculation of distributable Net Income – 2Q23
Calculation of distributable Net Income – 2Q23 • Offsetting of the extraordinary negative impact of adjustment of hedges related to Revenues the changes in the TLTRO terms and • Impact the adjustment of hedges +€430m conditions decided by the ECB in 4Q22: • Complementary contribution1 +€15m +€430m i
Slide 46: 2Q23 – Organic growth supported by operating divisions
2Q23 – Groupe BNP Paribas Organic growth supported by the performance of the operating divisions 2Q23 organic growth offset the impact of the Bank of the West sale M€ Net Income, Group share 2Q23 reported 2 810 Exceptional items (excl. extraordinary ones) ‐293 Adjustment of hedges related to changes
Slide 47: Growth driven by high-performance and complementary business lines (1/2)
Growth driven by high-performance and complementary business lines (1/2) CIB: change of scale and client-driven approach that CPBS – Specialised businesses: acceleration in supports performance and market share gains profitable growth Disciplined and above-market growth Arval: CAGR +7.3%5 (Global ma
Slide 48: Growth driven by high-performance and complementary business lines (2/2)
Growth driven by high-performance and complementary business lines (2/2) CPBS – Commercial & Personal Banking: a balanced model leveraging leadership positions Diversified European coverage Optimised and segmented client coverage GOI of Eurozone Commercial & Personal Banking as a % (as a % of GOI of
Slide 49: 1H23 – Revenues
1H23 – Revenues A diversified model supporting very solid growth CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services +1.1% +4.6% +0.5% +2.6% At constant At constant At constant At constant +1.8% scope and +4.8% scope and
Slide 50: 1H23 – Operating expenses
1H23 – Operating expenses Positive jaws effect in the operating divisions CIB Corporate & Institutional Commercial, Personal Banking Investment & Protection Operating divisions Banking & Services1 Services +1.4% +2.6% +3.7% +2.2% At constant At constant At constant At constant +2.2% scope and +2.9%
Slide 51: Corporate and Institutional Banking – 1H23
Corporate and Institutional Banking – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Corporate and Institutional Banking Revenues 3,998 4,093 -2.3% 8,871 8,778 +1.1% Operating Expenses and Dep. -2,275 -2,299 -1.1% -5,715 -5,637 +1.4% Gross Operating Income 1,723 1,794 -3.9% 3,156 3,141 +0.5% Co
Slide 52: Corporate and Institutional Banking Global Banking – 1H23
Corporate and Institutional Banking Global Banking – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Global Banking Revenues 1,425 1,239 +15.0% 2,879 2,497 +15.3% Operating Expenses and Dep. -655 -648 +1.1% -1,504 -1,453 +3.5% Gross Operating Income 770 591 +30.3% 1,375 1,043 +31.7% Cost of Risk
Slide 53: Corporate and Institutional Banking Global Markets – 1H23
Corporate and Institutional Banking Global Markets – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Global Markets Revenues 1,913 2,191 -12.7% 4,676 5,005 -6.6% incl. FICC 1,126 1,379 -18.4% 3,032 3,129 -3.1% incl. Equity & Prime Services 787 812 -3.0% 1,644 1,877 -12.4% Operating Expenses and
Slide 54: Corporate and Institutional Banking Market risks – 2Q23
Corporate and Institutional Banking Market risks – 2Q23 Average 99% 1-day interval VaR (Value at Risk) €m Average VaR was stable at a low level and decreased during the quarter1 • Even lower than in 1Q23 • No theoretical back-testing event this quarter • 3 theoretical back-testing events over the pa
Slide 55: Corporate and Institutional Banking Securities Services – 1H23
Corporate and Institutional Banking Securities Services – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Securities Services Revenues 661 663 -0,3% 1 315 1 276 +3,1% Operating Expenses and Dep. -504 -499 +0,9% -1 079 -1 037 +4,0% Gross Operating Income 157 164 -3,9% 237 239 -0,9% Cost of Risk -
Slide 56: Commercial, Personal Banking & Services – 1H23
Commercial, Personal Banking & Services – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 1 Commercial, Personal Banking & Services Revenues 6,782 6,566 +3.3% 13,448 12,862 +4.6% Operating Expenses and Dep. -3,776 -3,766 +0.3% -8,361 -8,146 +2.6% Gross Operating Income 3,006 2,800 +7.4% 5,087 4,
Slide 57: CPBS – Commercial & Personal Banking in France – 1H23
CPBS – Commercial & Personal Banking in France – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 2Q23 %Var/2Q22 %Var/1Q23 1H23 %Var/1H22 Commercial & Personal Banking in France 1 Average outstandings (€bn) Revenues 1 716 1 714 +0,1% 3 386 3 316 +2,1% LOANS 211.5 +1.8% -0.4% 212.0 +3.2% incl. net
Slide 58: CPBS – BNL banca commerciale – 1H23
CPBS – BNL banca commerciale – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / 2Q23 %Var/2Q22 %Var/1Q23 1H23 %Var/1H22 €m 2Q22 1S22 Average outstandings (€bn) BNL bc 1 LOANS 76.5 -2.2% -0.9% 76.8 -2.0% Revenues 687 671 +2,3% 1 362 1 326 +2,8% Individual Customers 37.9 -1.1% -1.1% 38.1 +0.1% incl. net interes
Slide 59: CPBS – Commercial & Personal Banking in Belgium – 1H23
CPBS – Commercial & Personal Banking in Belgium – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / 2Q23 %Var/2Q22 %Var/1Q23 1H23 %Var/1H22 €m 2Q22 1S22 Average outstandings (€bn) 1 Commercial & Personal Banking in Belgium LOANS 139.4 +3.7% +0.7% 138.9 +4.8% Revenues 1 006 965 +4,2% 2 022 1 900 +6,4% Individua
Slide 60: CPBS – Commercial & Personal Banking in Luxembourg – 1H23
CPBS – Commercial & Personal Banking in Luxembourg – 1H23 2Q23 %Var/2Q22 %Var/1Q23 1H23 %Var/1H22 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / Average outstandings (€bn) €m 2Q22 1S22 LOANS 13,1 +1,3% -0,9% 13,1 +2,6% 1 Commercial & Personal Banking in Luxembourg Individual Customers 8,2 +1,5% -0,5% 8,2 +2,2% R
Slide 61: CPBS – Europe-Mediterranean – 1H23
CPBS – Europe-Mediterranean – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Europe-Mediterranean 1 Revenues 603 620 -2,7% 1 251 1 205 +3,8% incl. net interest revenue 509 508 +0,1% 1 048 974 +7,7% incl. fees 95 112 -15,3% 203 231 -12,4% Operating Expenses and Dep. -344 -416 -17,2% -780 -844 -7
Slide 62: CPBS – Europe-Mediterranean Volumes and risks
CPBS – Europe-Mediterranean Volumes and risks Geographical breakdown in %Var/2Q22 %Var/1Q23 %Var/1H22 loans outstanding in 2Q231 at constant at constant at constant Average outstandings (€bn) scope and scope and scope and 2Q23 historical historical 1H23 historical exchange exchange exchange rates ra
Slide 63: CPBS – Specialised Businesses – Personal Finance – 1H23
CPBS – Specialised Businesses – Personal Finance – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Personal Finance Revenues 1 327 1 371 -3,2% 2 615 2 759 -5,2% Operating Expenses and Dep. -733 -718 +2,1% -1 544 -1 494 +3,3% Gross Operating Income 593 653 -9,1% 1 071 1 266 -15,4% Cost of Risk -3
Slide 64: CPBS – Specialised Businesses – Arval & Leasing, New Digital Businesses – 1H23
CPBS – Specialised Businesses – 1H23 Arval & Leasing Solutions – New Digital Businesses 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 €m 2Q22 1S22 1 Arval & Leasing Solutions New Digital Businesses & Personal Investors Revenues 252 217 +16,2% 495 422 +17,3% Revenue
Slide 65: CPBS – Specialised Businesses – Arval & Leasing Solutions and Personal Investors
CPBS – Specialised Businesses – 1H23 Arval & Leasing Solutions and Personal Investors Arval %Var/2Q22 %Var/1Q23 %Var/1H22 at constant at constant at constant 2Q23 1H23 scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rat
Slide 66: Investment & Protection Services – 1H23
Investment & Protection Services – 1H23 %Var/ %Var/ 30.06.23 30.06.22 31.03.23 €bn 30.06.22 31.03.23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / Assets under management (€bn) 1,218.4 1,179.9 +3.3% 1,213.1 +0.4% €m 2Q22 1S22 -1.9% -0.5% Insurance 250.2 255.2 251.4 Investment & Protection Services Wealth Manage
Slide 67: IPS – Insurance – 1H23
IPS – Insurance – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Insurance Revenues 557 512 +8.7% 1,081 1,002 +7.8% Operating Expenses and Dep. -203 -201 +1.4% -405 -397 +2.0% Gross Operating Income 353 311 +13.5% 676 605 +11.7% Cost of Risk 0 0 n.s. 0 0 n.s. Operating Income 353 311 +13.5% 676
Slide 68: IPS – Wealth & Asset Management – 1H23
IPS – Wealth & Asset Management – 1H23 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Wealth and Asset Management Revenues 873 914 -4.5% 1,758 1,824 -3.6% Operating Expenses and Dep. -675 -661 +2.2% -1,371 -1,316 +4.2% Gross Operating Income 198 253 -21.8% 387 508 -23.8% Cost of Risk -2 -5 -69.0% -3
Slide 69: 2Q23 / 1H23 – Corporate Centre: insurance restatements
2Q23 / 1H23 – Corporate Centre Restatements of the volatility and attributable operating expenses related to insurance As of 01.01.23, Corporate Centre includes two restatements related to the application of IFRS 17, alongside the implementation of IFRS 9 for insurance activities1. For a better read
Slide 70: Corporate Centre – 2Q23
Corporate Centre – 2Q23 Excluding the restatements related to insurance activities 2Q23 2Q22 2Q23 / 1S23 1S22 1S23 / €m 2Q22 1S22 Corporate Center excl. restatement related to insurance activities of the volatility (IFRS 9) and attribuable costs (internal distribution) Revenues -361 -43 n.s. -839 9
Slide 71: Corporate Centre – 1H23
Corporate Centre – 1H23 Excluding the restatements related to insurance activities Revenues • Revaluation of proprietary credit risk included in derivatives (DVA) : -€32m (+€108m in 1H22, offset by negative non-recurring item) • Adjustment in 1H23 of hedges related to changes in TLTRO’s terms & cond
Slide 72: Breakdown in Contribution to the Single Resolution Fund – 1H23
Breakdown in Contribution to the Single Resolution Fund – 1H23 In millions of euros 1H23 Corporate & Institutional Banking -697 Global Banking -146 Global Markets -495 Securities Services -57 Commercial, Personal Banking and Services -294 Commercial & Personal Banking in the Euro Zone -212 1 Commerc
Slide 73: Appendices
DIVISION RESULTS CONCLUSION 1H23 & 2Q23 DETAILED RESULTS APPENDICES
Slide 74: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 30-Jun-23 30-Jun-22 Number of Shares (end of period) 1,234 1,234 Number of Shares excluding Treasury Shares (end of period) 1,197 1,232 Average number of Shares outstanding excluding Treasury Shares 1,228 1,233 Reminder: 41,920,114
Slide 75: Book value per Share
Book value per Share Book value per Share in millions of euros 30-Jun-23 30-Jun-22 Shareholders' Equity Group share 123,301 115,945 (1) of which changes in assets and liabilities recognised directly in equity (valuation reserve) -3,283 -594 of which Undated Super Subordinated Notes 13,453 7,853 (2)
Slide 76: Return on Equity and Permanent Shareholders’ Equity (1/2)
Return on Equity and Permanent Shareholders’ Equity (1/2) Permanent Shareholders’ Equity Group share, not revaluated, used for the calculation of ROE / ROTE (based on reported results) in millions of euros 30-Jun-23 30-Jun-22 Net Book Value 109 678 107 991 (1) of which changes in assets and liabilit
Slide 77: Return on Equity and Permanent Shareholders’ Equity (2/2)
Return on Equity and Permanent Shareholders’ Equity (2/2) Calculation of Return on Equity (based on reported results) in millions of euros 30-Jun-23 30-Jun-22 Net income Group share 7,245 5,285 (1) Exceptional and extraordinary items (after tax) (a) 1,725 -124 (2) of which exceptional and extraordin
Slide 78: A Solid Financial Structure
A Solid Financial Structure Doubtful loans/gross outstandings 30-Jun-23 30-Jun-22 Doubtful loans (a) / Loans (b) 1.7% 1.8% (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 79: Common Equity Tier 1 ratio
Common Equity Tier 1 ratio Basel 3 Common Equity Tier 1 ratio1 (Accounting capital to prudential capital reconciliation) €bn 30-Jun-23 31-Mar-23 Impacts as at 31.03.23 of the 1st tranche of the share Consolidated Equity 128.3 132.0 buyback programme (€2.5bn) authorised on 31.03.23: Undated super sub
Slide 80: Medium/Long Term Regulatory Funding
Medium/Long Term Regulatory Funding Continued presence in debt markets Around 80% of the regulatory issuance plan realised as at 19 July 2023 2023 MLT regulatory issuance plan1: €18.5bn Capital instruments: €3.5bn1 ; AT1 €2.6bn already Senior Debt: €15bn1: issued2 Non-Preferred: €3.8bn already issue
Slide 81: TLAC ratio: ~650 bps above the requirement
TLAC ratio: ~650 bps above the requirement without calling on the preferred Senior debt allowance as at 30.06.23 28.9% TLAC requirement as at 30.06.23: 22.35% of RWA 22.35% BNP Paribas Including capital conservation buffer, G-SIB buffer, countercyclical TLAC ratio as capital buffer (35 bps) TLAC at
Slide 82: Distance to MDA restrictions as at 30.06.23
Distance to MDA restrictions as at 30.06.23 Capital requirements as at 30.06.231: Capital and leverage requirements as at 30.06.231 CET1: 9.73% Pillar 1 G-SIB buffer Tier 1: 11.53% P2R Countercyclical buffer Total Capital: 13.92% Conservation buffer 13.92% Leverage requirement as at 31.03.23:
Slide 83: Basel 3 Risk-Weighted Assets
Basel 3 Risk-Weighted Assets1 Basel 31 assets by business Corporate Centre IPS Specialised Businesses 6% (CPBS) €698bn as at 30.06.23 (€694bn as at 31.03.23) 6% 16% Commercial & €bn 30.06.23 31.03.23 35% Personal 37% Banking CIB (CPBS) Credit risk 533 534 Operational Risk 58 58 Counterparty Risk 45
Slide 84: Liquidity: a diversified base of deposits and prudent management
Liquidity: a diversified base of deposits and disciplined, prudent and proactive management Favourable positioning and integrated & diversified model supporting stability of resources Base of deposits supported by the Group’s diversification, its Change in HQLA (€bn) long-term approach to clients, a