Bnp Paribas S.a. Class A · EURONEXT:BNP
Bnp Paribas S.a. Class A — Bnp Paribas Ord — Q3 2021 Earnings Presentation
87 slides from Bnp Paribas S.a. Class A's earnings presentation, Oct 29, 2021
Slide 1: Third Quarter 2021 Results
THIRD QUARTER 2021 RESULTS 29 October 2021
Slide 2: Disclaimer
Disclaimer The figures included in this presentation are unaudited. This presentation includes forward-looking statements based on current beliefs and expectations about future events. Forward-looking statements include financial projections and estimates and their underlying assumptions, statements
Slide 3: 3Q21: A very strong increase in results and a positive jaws effect
3Q21: A very strong increase in results and a positive jaws effect Sustained revenue growth Revenues: +4.7% vs. 3Q20 • Contribution of BNP Paribas distinctive model, diversified and integrated (+4.6% / 3Q19) • Very good performance at Domestic Markets and Wealth & Asset Management • High level of re
Slide 4: Growth potential in results confirmed
Growth potential in results confirmed Revenue growth and positive jaws effect 9M21 Revenues: €35,003m 9M21 Operating expenses (excluding taxes subject to IFRIC 21): €21,690m +5.2% -2.1% +4.6% +1.7% 33.3 33.4 35.0 22.2 21.3 21.7 €bn €bn 9M19 9M20 9M21 9M19 9M20 9M21 9M21 GOI1: €11,822m 9M21 Net incom
Slide 5: A solid performance and confirmed growth potential
A solid performance and confirmed growth potential Change in the 2021 distribution policy Net tangible book value per CET1 ratio: 13.0%2 ROTE: 10.4%3 share1: €76.8 76.8 13.0% 10.4% 72.2 12.6% 8.2% 30.09.20 30.09.21 30.09.20 30.09.21 30.09.20 30.09.21 BNP Paribas launches a €900m share buyback progra
Slide 6: Group Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M21 DETAILED RESULTS APPENDICES
Slide 7: 3Q21 – Main exceptional items
3Q21 – Main exceptional items Exceptional items 3Q21 3Q20 3Q19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€20m -€44m -€78m • IT reinforcement costs (Corporate Centre) -€42m -€40m • Donations and staff safety measures relating to the public health crisis (Corp
Slide 8: 3Q21 – Consolidated Group
3Q21 – Consolidated Group Solid results, growth and positive jaws effect 3Q21 3Q21 3Q21 3Q20 vs. 3Q20 3Q19 vs. 3Q19 Revenues €11,398m €10,885m +4.7% €10,896m +4.6% Operating expenses -€7,412m -€7,137m +3.8% -€7,421m -0.1% Gross operating income €3,986m €3,748m +6.4% €3,475m +14.7% Cost of risk -€706
Slide 9: 3Q21 – Revenues
3Q21 – Revenues Diversified model supporting solid growth Domestic International CIB Group Markets1 Financial Services +6.3% -3.0% +6.4% +4.7% 3,867 4,112 3,943 3,823 3,372 3,588 3Q20 3Q21 €m Domestic Markets: very sharp increase in revenues, driven both by a good performance in the networks and s
Slide 10: 3Q21 – Operating expenses
3Q21 – Operating expenses Supporting growth – Positive jaws effect Domestic International Markets1 Financial Services CIB Group +2.0% +3.5% +5.9% +3.8% 2,543 2,595 2,382 2,466 2,117 2,243 3Q20 €m 3Q21 Domestic Markets: supporting growth in the specialised businesses and good cost control in the ne
Slide 11: Cost of risk by Business Unit (1/3)
Cost of risk by Business Unit (1/3) Cost of risk / Customer loans outstanding at the beginning of the period (in annualised bps) Group • Cost of risk: €706m -€107m vs. 2Q21 74 -€539m vs. 3Q20 66 67 65 57 • Cost of risk at a low level - moderate releases of provisions 39 35 39 42 38 32 on perform
Slide 12: Cost of risk by Business Unit (2/3)
Cost of risk by Business Unit (2/3) Cost of risk / Customer loans outstanding at the beginning of the period (in annualised bps) FRB • Cost of risk: €115m +€15m vs. 2Q21 -€21m vs. 3Q20 21 16 17 25 21 18 27 32 24 19 21 • Cost of risk still at a low level 2017 2018 2019 2020 1Q20 2Q20 3Q20 4Q20 1Q
Slide 13: Cost of risk by Business Unit (3/3)
Cost of risk by Business Unit (3/3) Cost of risk / Customer loans outstanding at the beginning of the period (in annualised bps) Personal Finance • Cost of risk: €303m 240 253 -€40m / 2Q21 212 187 165 -€80m / 3Q20 147 141 145 138 147 130 • Low cost of risk, thanks to efficient management of deli
Slide 14: 3Q21 – A solid financial structure
3Q21 – A solid financial structure CET1 ratio: 13.0% as at 30.09.211 (+10 bps vs. 30.06.21) CET1 ratio • 3Q21 results, after taking into account a 50% pay-out ratio: +20 bps 12.9% 13.0% • Increase in risk-weighted assets at constant scope and exchange rates: -10 bps • Overall limited impact of other
Slide 15: Constant and strong value creation throughout the cycle
Constant and strong value creation throughout the cycle Steady increase in net tangible book value per share to: €76.8 +€4.6 (+6.4%) vs. 30.09.20 (€72.2) € 85.8 2008-3Q21 CAGR1: 82.3 79.0 9.0 +5.1% 73.9 75.1 74.7 9.1 70.9 9.3 76.8 65.0 66.6 10.6 10.0 9.9 73.2 63.1 10.7 69.7 57.1 10.0 10.9 65.1 64.8
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 of the operating model for combating money laundering and terrorism financing: A standards-based, risk-
Slide 17: An ambitious policy of commitment to a sustainable economy
An ambitious policy of commitment to a sustainable economy Strong and pioneering climate commitments Long committed to the fight against global warming, the Group has pledged to align its financing and investment portfolios with the necessary trajectory for achieving carbon neutrality by 2050, by jo
Slide 18: Strengthening our organisation to support clients' transition
An ambitious policy of commitment to a sustainable economy Strengthening our organisation to support clients’ transition The Low-Carbon Transition Group: a dedicated and agile organization to support clients around the world in accelerating their transition to a sustainable and low-carbon economy •
Slide 19: An ambitious policy of engaging with society
An ambitious policy of engaging with society Mobilisation by all business lines for a social impact More than 2 million beneficiaries (81% of them women) of Group financing of microfinance institutions Financial inclusion 2.3 million Nickel accounts1 had been opened in France by the end of September
Slide 20: Division Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M21 DETAILED RESULTS APPENDICES
Slide 21: Domestic Markets – 3Q21
Domestic Markets – 3Q21 Continued increase in activity, very good quarterly results Very good business drive Loans • Loans: +3.0% vs. 3Q20, increase in all businesses1, rise in individual and +3.0% €bn corporate loans 440 453 • Deposits: +6.4% vs. 3Q20, increase driven by the effects of the public h
Slide 22: DM – French Retail Banking – 3Q21
DM – French Retail Banking – 3Q21 Strong growth in results Good business drive Loans • Loans: +2.8% vs. 3Q20, increase in loans, individual loans in particular, with +2.8% very strong mortgage loan production 194 200 • Deposits: +4.1% vs. 3Q20, increase driven by the impact of the public health cris
Slide 23: DM – BNL banca commerciale – 3Q21
DM – BNL banca commerciale – 3Q21 Good business drive Growth in business activity Market share on the • Loans: -0.8% vs. 3Q20, +1.4% when excluding non-performing loans; improved corporate segment (loans)2 market shares across all customer segments 6.0% 6.1% 5.7% 5.8% • Deposits: +9.6% vs. 3Q20, gro
Slide 24: DM – Belgian Retail Banking – 3Q21
DM – Belgian Retail Banking – 3Q21 Very good level of activity and strong rise in results Increase in business activity Mutual funds outstandings • Loans: +3.4% vs. 3Q20, with increases across all customer segments +22.0% • Deposits: +5.9% vs. 3Q20, with increases across all customer segments, downw
Slide 25: DM – Other Activities – 3Q21
DM – Other Activities – 3Q21 Strong growth in results Very good sales and marketing drive in all businesses New partnerships • Arval: a very good performance driven by the expansion in the financed fleet Arval: partnership with Emil (+6.5%1 vs. 3Q20) and the increase in used car prices Frey France,
Slide 26: International Financial Services – 3Q21
International Financial Services – 3Q21 Growth in results Sustained business drive in international retail networks and at Assets under management2 Personal Finance +9.8% • Good sales and marketing activity at Personal Finance: increase in production with the gradual lifting of public health measure
Slide 27: IFS – Personal Finance – 3Q21
IFS – Personal Finance – 3Q21 Strong increase in results, driven by a lower cost of risk Good business drive Monthly loan production • Increase in production with the gradual lifting of public health measures in 2021 (+11.8% in 9M21 vs. 9M20) and a good momentum towards the 2021 2019 end of the peri
Slide 28: IFS – Europe Mediterranean – 3Q21
IFS – Europe Mediterranean – 3Q21 Good business momentum Strong business activity Loans1 • Loans: +6.2%1 vs. 3Q20, acceleration in loan growth, particularly in +6.2% Poland and Turkey, across all customer segments 34.9 32.8 • Good level of loan production maintained across all regions (+33.9%2 vs. 3
Slide 29: IFS – BancWest – 3Q21
IFS – BancWest – 3Q21 Sustained business drive and strong increase in results Sustained business drive in lending businesses Loan production excluding PPP loans1 • Good level of loan production1 (+21%2 vs. 3Q20) with a very good drive in loan production to individuals (+16%2 vs. 3Q20) +21%2 • Loans:
Slide 30: IFS – Insurance and WAM – Asset inflows and AuM – 9M21
IFS – Insurance and WAM1 – Asset inflows and AuM – 9M21 Very good net asset inflows and favourable performance effect Assets under management: €1,218bn as at 30.09.21 Change in assets under management2 • +4.5% vs. 31.12.20 (+9.8% vs. 30.09.20) €bn +40.0 +11.8 Others • Favourable performance effect o
Slide 31: IFS – Insurance – 3Q21
IFS – Insurance – 3Q21 Very good business momentum Continued pick-up in activity Gross asset inflows in • Sustained performance in Savings both in France and internationally, Savings with gross inflows up sharply (+47.5% vs. 9M20), and with unit-linked €bn policies accounting for the vast majority o
Slide 32: IFS – Wealth and Asset Management – 3Q21
IFS – Wealth and Asset Management1 – 3Q21 Very good activity and very strong increase in results Wealth Management Acknowledged leadership4 • Good net asset inflows in Europe, in particular in Germany • Growth in financial fees, in particular with an increase in outstandings and transaction volumes
Slide 33: Corporate & Institutional Banking – 3Q21
Corporate & Institutional Banking – 3Q21 Good increase in activity and sharp rise in results Good growth in activity in all businesses CIB revenues (1Q18-3Q21) • Financing: growth vs. 3Q20 in all segments (equity, bond €bn issuance and syndicated loans)1 4.0 • Markets: strong client activity in equi
Slide 34: CIB – Corporate Banking – 3Q21
CIB – Corporate Banking – 3Q21 Very good business drive and strong growth Good increase in activity level Corporate Banking growth (3Q18-3Q21 revenues) • Increase in financing raised for clients worldwide on the syndicated loan, bond and equity markets (+16% vs. 3Q20)1 €m • Increase in loan volumes
Slide 35: CIB – Global Markets – 3Q21
CIB – Global Markets – 3Q21 Increase in revenues sustained by diversification Continued strategic expansion of platforms Global Markets revenues • Equity: Exane consolidated into Global Markets in July 20211, Exane BNP growth (3Q18-3Q21) Paribas ranked #1 in ‘Developed Europe Research’ for the 5th y
Slide 36: CIB – Securities Services – 3Q21
CIB – Securities Services – 3Q21 Sustained and steady growth of the platform Continued strong business drive Assets under custody (AuC) • Licence obtained to provide custody services to qualified and under administration (AuA) foreign investors in China End of period1 +18.5% in €000bn • Continued bu
Slide 37: Conclusion
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M21 DETAILED RESULTS APPENDICES
Slide 38: Growth potential confirmed in 9M21 – 2021 trends
Growth potential confirmed in 9M21 – 2021 trends Résultats solides au-delà des niveaux de 2019 confirmés Solid results above 2019 levels confirmed 9M21 Revenues: €35,003m 9M21 Operating expenses (excluding 9M21 Net income: €7,182m taxes subject to IFRIC 21): €21,690m €bn +5.2% €bn -2.1% €bn +13.6% +
Slide 39: Conclusion
Conclusion Strong results driven by the strength of the diversified and integrated model 3Q21 net income1: €2,503m (+32.2% vs. 3Q20) Solid results beyond 2019 levels confirmed BNP Paribas launches a €900m share buyback program on 1 November 20212 Presentation of the strategic plan upon the release o
Slide 40: 9M21 Detailed Results
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M21 DETAILED RESULTS APPENDICES
Slide 41: 9M21 – Main exceptional items
9M21 – Main exceptional items Exceptional Items 9M21 9M20 9M19 Operating expenses • Restructuring costs1 and adaptation costs2 (Corporate Centre) -€103m -€120m -€229m • IT reinforcement costs (Corporate Centre) -€107m -€119m • Donations and staff safety measures relating to the public health crisis
Slide 42: 9M21 – Consolidated Group
9M21 – Consolidated Group Solid results, growth and positive jaws effect 9M21 9M21 9M21 9M20 vs. 9M20 9M19 vs. 9M19 Revenues €35,003m €33,448m +4.6% €33,264m +5.2% Operating expenses -€23,181m -€22,632m +2.4% -€23,305m -0.5% Gross operating income €11,822m €10,816m +9.3% €9,959m +18.7% Cost of risk
Slide 43: 9M21 – Revenues
9M21 – Revenues Strength of the diversified model Domestic International CIB Group Markets1 Financial Services +5.6% -1.9% +5.0% +4.6% 11,501 12,145 12,023 11,799 10,972 10,448 9M20 €m 9M21 Domestic Markets: very sharp growth in revenues driven by a good increase in the networks2 and very strong g
Slide 44: 9M21 – Operating expenses
9M21 – Operating expenses Very positive jaws effect Domestic International Markets1 CIB Group Financial Services +1.7% -0.4% +4.8% +2.4% 9M20 7,958 8,094 7,562 7,531 6,729 7,051 9M21 €m Domestic Markets: increase driven by the growth in the specialised businesses and the rebound in activity in the
Slide 45: 9M21 & 3Q21 – BNP Paribas group
9M21 & 3Q21 – BNP Paribas group 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 3Q20 2Q21 9M20 Group n.s. n.s. n.s. Revenues 11,398 10,885 +4.7% 11,776 -3.2% 35,003 33,448 +4.6% Operating Expenses and Dep. -7,412 -7,137 +3.8% -7,172 +3.3% -23,181 -22,632 +2.4% Gross Operating Income 3,986 3,748 +6.
Slide 46: 9M21 & 3Q21 – Retail Banking and Services
9M21 & 3Q21 – Retail Banking and Services 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 7,795 7,677 +1.5% 7,881 -1.1% 23,519 23,114 +1.8% Operating Expenses and Dep. -4,986 -4,855 +2.7% -4,909 +1.6% -15,394 -15,295 +0.6% Gross Operating Income 2,809 2,822 -0.4% 2
Slide 47: 9M21 – Domestic Markets
9M21 – Domestic Markets 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 4,112 3,867 +6.3% 4,076 +0.9% 12,145 11,501 +5.6% Operating Expenses and Dep. -2,595 -2,543 +2.0% -2,502 +3.7% -8,094 -7,958 +1.7% Gross Operating Income 1,518 1,324 +14.6% 1,574 -3.6% 4,051 3,
Slide 48: 9M21 – DM – French Retail Banking
9M21 – DM – French Retail Banking (excluding PEL/CEL effects) 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 1,570 1,496 +5.0% 1,587 -1.1% 4,638 4,428 +4.7% Incl. Net Interest Income 856 852 +0.5% 840 +1.9% 2,493 2,448 +1.8% Incl. Commissions 714 645 +10.8% 747 -4
Slide 49: DM – French Retail Banking Volumes
DM – French Retail Banking Volumes 3Q21 %Var/3Q20 %Var/2Q21 9M21 %Var/9M20 Average outstandings (€bn) LOANS 199.8 +2.8% +0.5% 198.9 +6.6% Individual Customers 106.4 +7.1% +2.4% 104.2 +5.9% Incl. Mortgages 95.4 +7.5% +2.4% 93.3 +6.4% Incl. Consumer Lending 11.0 +3.4% +1.8% 10.8 +1.6% Corporates 93.4
Slide 50: 9M21 – DM – BNL banca commerciale
9M21 – DM – BNL banca commerciale 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 3Q20 2Q21 9M20 Revenues 667 669 -0.4% 669 -0.4% 2,012 1,977 +1.7% Operating Expenses and Dep. -449 -426 +5.4% -435 +3.3% -1,342 -1,313 +2.3% Gross Operating Income 218 244 -10.6% 235 -7.2% 669 665 +0.7% Cost of Risk -
Slide 51: DM – BNL banca commerciale Volumes
DM – BNL banca commerciale Volumes 3Q21 %Var/3Q20 %Var/2Q21 9M21 %Var/9M20 Average outstandings (€bn) LOANS 76.6 -0.8% +0.5% 76.6 +1.9% Individual Customers 41.0 +3.3% +0.0% 40.8 +3.8% Incl. Mortgages 26.4 +4.2% +0.9% 26.1 +3.0% Incl. Consumer Lending 4.8 +3.1% -1.9% 4.8 +0.1% Corporates 35.6 -5.0%
Slide 52: 9M21 – DM – Belgian Retail Banking
9M21 – DM – Belgian Retail Banking 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 3Q20 2Q21 9M20 Revenues 933 851 +9.6% 864 +8.0% 2,655 2,571 +3.3% Operating Expenses and Dep. -511 -523 -2.2% -488 +4.7% -1,834 -1,852 -1.0% Gross Operating Income 422 329 +28.4% 376 +12.3% 821 719 +14.2% Cost of Ris
Slide 53: DM – Belgian Retail Banking Volumes
DM – Belgian Retail Banking Volumes 3Q21 %Var/3Q20 %Var/2Q21 9M21 %Var/9M20 Average outstandings (€bn) LOANS 118.3 +3.4% +1.8% 116.4 +1.5% Individual Customers 75.5 +3.1% +1.1% 74.8 +2.5% Incl. Mortgages 55.1 +3.0% +1.2% 54.6 +2.4% Incl. Consumer Lending 0.3 +2.1% -19.7% 0.3 +6.0% Incl. Small Busine
Slide 54: 9M21 – DM – Other Activities
9M21 – DM – Other Activities 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 942 850 +10.9% 956 -1.5% 2,840 2,525 +12.5% Operating Expenses and Dep. -506 -469 +7.7% -505 +0.2% -1,544 -1,429 +8.0% Gross Operating Income 436 380 +14.7% 451 -3.3% 1,296 1,096 +18.3% Co
Slide 55: DM – BDEL – Personal Investors
DM – BDEL – Personal Investors Luxembourg Retail Banking (LRB) Average outstandings (€bn) 3Q21 %Var/3Q20 %Var/2Q21 9M21 %Var/9M20 Loans: +7.2% vs. 3Q20, good growth in individual and corporate loans LOANS 12.2 +7.2% +1.0% 12.1 +5.8% Individual Customers 7.8 +7.2% +1.1% 7.7 +7.0% Deposits: +18.1% vs.
Slide 56: DM – Arval – Leasing Solutions – Nickel
DM – Arval – Leasing Solutions – Nickel Arval %Var/3Q20 %Var/2Q21 %Var/9M20 at constant at constant at constant 3Q21 9M21 scope and scope and scope and historical historical historical exchange exchange exchange Average outstandings (€bn) rates rates rates Consolidated Outstandings 24.2 +12.1% +11.4
Slide 57: 9M21 – International Financial Services
9M21 – International Financial Services 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 3Q20 2Q21 9M20 Revenues 3,823 3,943 -3.0% 3,948 -3.2% 11,799 12,023 -1.9% Operating Expenses and Dep. -2,466 -2,382 +3.5% -2,478 -0.5% -7,531 -7,562 -0.4% Gross Operating Income 1,357 1,561 -13.1% 1,470 -7.7% 4,
Slide 58: 9M21 – IFS – Personal Finance
9M21 – IFS – Personal Finance 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 1,271 1,343 -5.4% 1,319 -3.7% 3,922 4,120 -4.8% Operating Expenses and Dep. -644 -641 +0.5% -700 -8.0% -2,107 -2,069 +1.8% Gross Operating Income 627 703 -10.8% 619 +1.2% 1,815 2,051 -11.
Slide 59: IFS – Personal Finance Volumes and risks
IFS – Personal Finance Volumes and risks %Var/3Q20 %Var/2Q21 %Var/9M20 at constant at constant at constant scope and scope and scope and 3Q21 historical historical 9M21 historical exchange exchange exchange Average outstandings (€bn) rates rates rates n.s. n.s. n.s. n.s. n.s. n.s. TOTAL CONSOLIDATED
Slide 60: 9M21 – IFS – Europe-Mediterranean
9M21 – IFS – Europe-Mediterranean 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 511 561 -9.0% 464 +10.0% 1,491 1,835 -18.7% Operating Expenses and Dep. -383 -405 -5.5% -394 -2.8% -1,209 -1,309 -7.6% Gross Operating Income 128 156 -17.8% 71 +81.4% 282 526 -46.4% C
Slide 61: IFS – Europe Mediterranean Volumes and risks
IFS – Europe Mediterranean Volumes and risks %Var/3Q20 %Var/2Q21 %Var/9M20 at constant at constant at constant scope and scope and scope and 3Q21 historical historical 9M21 historical exchange exchange exchange Average outstandings (€bn) n.s. n.s.rates n.s. n.s.rates n.s. n.s.rates n.s. n.s. n.s. n.
Slide 62: 9M21 – IFS – BancWest
9M21 - IFS - BancWest 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 588 627 -6.1% 587 +0.2% 1,801 1,866 -3.5% Operating Expenses and Dep. -425 -403 +5.6% -406 +4.9% -1,238 -1,300 -4.7% Gross Operating Income 163 224 -27.2% 182 -10.2% 562 567 -0.8% Cost of Risk 23
Slide 63: IFS – BancWest Volumes
IFS - BancWest Volumes %Var/3Q20 %Var/2Q21 %Var/9M20 at constant at constant at constant scope and scope and scope and 3Q21 historical historical 9M21 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
Slide 64: IFS – Insurance and WAM Activity
IFS – Insurance and WAM1 Activity %Var/ %Var/ 30.09.21 30.09.20 30.06.21 €bn 30.09.20 30.06.21 Assets under management (€bn) 1,218 1,110 9.8% 1,203 1.3% Asset Management 502 445 +12.7% 489 +2.6% Wealth Management 411 380 +8.1% 410 +0.1% Real Estate Services 29 29 -0.1% 29 +0.1% Insurance 277 256 +8.
Slide 65: IFS – Insurance & WAM
IFS – Insurance & WAM1 Insurance and WAM Asset management Breakdown of assets by client Breakdown in managed assets as at 30.09.21 segment €1,110bn €1,218bn Alternative and others 5% Corporates & 28% 34% Bonds Institutionals 29% Diversified 28% 52% 51% Individuals ▶ 56% Money-market External 20% 15%
Slide 66: 9M21 – IFS – Insurance
9M21 – IFS – Insurance 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 613 697 -12.0% 767 -20.0% 2,171 2,104 +3.2% Operating Expenses and Dep. -376 -347 +8.5% -367 +2.4% -1,126 -1,078 +4.4% Gross Operating Income 237 350 -32.2% 399 -40.6% 1,046 1,025 +2.0% Cost of
Slide 67: 9M21 – IFS – Wealth and Asset Management
9M21 – IFS – Wealth and Asset Management 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 859 734 +17.0% 830 +3.5% 2,473 2,155 +14.7% Operating Expenses and Dep. -651 -598 +8.9% -624 +4.4% -1,887 -1,841 +2.5% Gross Operating Income 208 136 +52.9% 206 +0.8% 586 315 +
Slide 68: 9M21 – Corporate and Institutional Banking
9M21 – Corporate and Institutional Banking 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 3Q20 2Q21 9M20 Revenues 3,588 3,372 +6.4% 3,714 -3.4% 10,972 10,448 +5.0% Operating Expenses and Dep. -2,243 -2,117 +5.9% -2,042 +9.8% -7,051 -6,729 +4.8% Gross Operating Income 1,346 1,255 +7.2% 1,672 -19.5%
Slide 69: Corporate Banking – 9M21
Corporate and Institutional Banking Corporate Banking – 9M21 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 1,282 1,118 +14.7% 1,238 +3.5% 3,763 3,446 +9.2% Operating Expenses and Dep. -640 -598 +6.9% -589 +8.6% -1,984 -1,978 +0.3% Gross Operating Income 642 520 +
Slide 70: Global Markets – 9M21
Corporate and Institutional Banking Global Markets – 9M21 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 1,731 1,711 +1.2% 1,904 -9.1% 5,481 5,321 +3.0% incl. FICC 896 1,245 -28.0% 1,148 -22.0% 3,192 4,650 -31.4% incl. Equity & Prime Services 835 466 +79.3% 757 +1
Slide 71: Market risks – 3Q21
Corporate and Institutional Banking Market risks – 3Q21 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 6 34 35 15 5 9 33 31 6 6 31 31 12 31 28 27 25 27 26 6 22 24 23 23 25 24 13 13 11 14 20 24 7 5 4 22 20 4 33 9 5
Slide 72: Securities Services – 9M21
Corporate and Institutional Banking Securities Services – 9M21 3Q21 3Q20 3Q21 / 2Q21 3Q21 / 9M21 9M20 9M21 / €m 0 0 3Q20 0 2Q21 0 0 9M20 Revenues 575 544 +5.8% 571 +0.7% 1,728 1,681 +2.8% Operating Expenses and Dep. -465 -454 +2.5% -454 +2.6% -1,404 -1,388 +1.2% Gross Operating Income 110 89 +23.0%
Slide 73: 3Q21 – Corporate centre
3Q21 – Corporate centre €m 3Q21 3Q20 2Q21 9M21 9M20 Revenues 11 -165 162 488 -117 Operating Expenses and Dep. -183 -165 -222 -736 -607 Incl. Transformation, IT Reinforcement, Restructuring and Adaptation Costs -62 -84 -71 -210 -239 Gross Operating Income -172 -330 -59 -248 -724 Cost of Risk -40 3 -6
Slide 74: 9M21 – Corporate centre
9M21 – Corporate centre Revenues • Very strong contribution from Principal Investments, rebounding from a 9M20 crisis-related negative contribution • Capital gain realised on the sale of 4.99% in SBI Life (+€58m in 1Q21) • Reminder from 3Q20: impact of a negative, non-recurring item Operating expens
Slide 75: Appendices
GROUP RESULTS DIVISION RESULTS CONCLUSION 9M21 DETAILED RESULTS APPENDICES
Slide 76: Number of Shares and Earnings per Share
Number of Shares and Earnings per Share Number of Shares in millions 30-Sep-21 30-Sep-20 Number of Shares (end of period) 1,250 1,250 Number of Shares excluding Treasury Shares (end of period) 1,246 1,249 Average number of Shares outstanding excluding Treasury Shares 1,248 1,248 Earnings per Share i
Slide 77: Capital Ratios and Book Value Per Share
Capital Ratios and Book Value Per Share Capital Ratios 30-Sep-21 31-Dec-20 30-Sep-20 Total Capital Ratio (a) 16.6% 16.4% 16.3% Tier 1 Ratio (a) 14.3% 14.2% 14.1% Common equity Tier 1 ratio (a) 13.0% 12.8% 12.6% (a) CRD4, on risk-weighted assets of €712bn as at 30.09.21, €696bn as at 31.12.20 and €68
Slide 78: 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-21 30-Sep-20 Net income Group share 7,182 5,475 (1) Exceptional items (after tax) (a) 307 99 (2) of which exceptonal items (not annualised) 455 243 (3) of which IT reinforcement and restru
Slide 79: A Solid Financial Structure
A Solid Financial Structure Doubtful loans vs. gross outstandings 30-Sep-21 30-Sep-20 Doubtful loans (a) / Loans (b) 2.0% 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
Slide 80: 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-sept-21 30-juin-21 Consolidated Equity 120.8 120.5 Undated super subordinated notes -9.2 -9.2 2 2020 net income distribution 0.0 -1.9 2021 dividend distribution project -3.
Slide 81: Medium/Long Term Wholesale Funding
Medium/Long Term Wholesale Funding Continued presence in debt markets 2021 MLT wholesale funding programme1: €36bn 2021 MLT regulatory issuance plan1: ~ €17bn • Capital instruments: €4.5bn; €4.6bn already issued2 • €1bn, priced on 12.01.21, 9NC88, at mid-swap€+83 bps • Tier 2: $1.25bn priced on 19.0
Slide 82: TLAC ratio above the requirement
TLAC ratio: ~590bps above the requirement without calling on the Preferred Senior debt allowance 26.0% TLAC requirement as at 30.09.21: 20.03% of RWA BNP Paribas • Including capital conservation buffer, G-SIB buffer and 20.03% TLAC ratio countercyclical capital buffer (3 bps as of 3Q21) as at 30.09.
Slide 83: Distance to MDA restrictions
Distance to MDA restrictions Reminder: Pillar 2 is composed of: Capital requirements as at 30.09.211 “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 84: 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 1 Domestic Markets Loan outstandings as of the beg. of the quarter (€bn) 401.3 414.0 422.1 427.2 435.5 439.0 431.0 445.
Slide 85: 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 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 49.0 Cost
Slide 86: Risk-Weighted Assets
Risk-Weighted Assets Basel 3 Risk-Weighted Assets1: €712bn as at 30.09.21 (€705bn as at 30.06.21) The +€7bn change is mainly explained by: • +€8bn increase in credit risk • +€1bn increase in operational risk • -€1bn decrease in market risk • -€1bn decrease on securitization positions in the banking
Slide 87: Risk-Weighted Assets by Business
Risk-Weighted Assets by Business Basel 31 risk-weighted assets by business as 30.09.21 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