SECOND NMENT AMPLE 52BN (O VS. 2Q11) LOADED) COST OF RISK R

Transcription

1 SECOND QUARTERR RESULTS PRESS RELEASE Paris, P August GOOD RESULTS IN A CHALLEN NGING ENVIRON NMENT ADAPTING COSTS TO THE NEW ENVIRONMENT COST OF RISK AT A LOW LEVEL ADAPTATION PLAN ALMOST ACHIEVED, WELLL AHEADD OF SCHEDULEE (REMINDER OF THE TARGET: + BASIS POINTS OF COMMON EQUITY TIERR UNDER BASEL B ) AMPLE LIQUIDITY NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS,848MM (-.% VS. Q) GROWTH OF DEPOSITS IN RETAIL BANKING *+4.5% EXCLUDING THE COST OF RISK RELATED TO T GREECE IN Q 9% OF THE TARGET ALREADYY ATTAINED S DOMESTICC MARKETS DEPOSITS +.8% VS. Q OPERATING EXPENSES 6,7M (-4.% VS. Q) COST OF RISK R 85M (-6.8%* VS. Q) STABLE FUNDING SURPLUS: 5BN (O O/W USD8BN) VERY STRONG SOLVENCY: TARGET OF 9% BASEL (FULLY LOADED) RATIO BY.. VIRTUAL LY ACHIEVED (BASEL..5) COMMON EQUITY TIER RATIO: R.9% (BASEL FULLY LOADED) ) COMMON EQUITY TIER RATIO: 8.9%

2 SECOND QUARTER RESULTS The Board of Directors of BNP Paribass met on August. The meeting was chaired Baudouin Prot and the Board examined the Group s results for the secondd quarter. st by GOOD RESULTSS IN A CHALLENGING ECONOMIC ENVIRONMENT BNP Paribas reported good performance es this quarter despitee a challenging environment marked by another slowdown of Europe s economic activity and a new market crisis. The Group s adaptation plan in response to new regulations is almost achieved and well ahead of schedule: 9% of the target to improve the t common equity Tier ratio byy bp was already attained. Thus, with a Basel (fully loaded ) ratio at 8.9%, the 9% target by December is virtually achieved, 6 months ahead of schedule. were,98 million euros,, down 8.% compared to thee second quarter. were up in Retail Banking (+.5% ) and in Investment Solutions (+.%) but down.6% in CIB given the challenging market environment and the t reduction of outstandings in line with the adaptation plan. Operating expenses, which totalled 6,77 million euros, were down 4.% thanks to actions taken to adapt costs to the new environment. CIB s operating expenses fell 5.7%, excluding adaptation costs. Gross operating income thus declined 4.%, to,76 million euros. e The Group s cost of risk, at 85 million euros, or 5 basis points of outstanding customer loans, fell 6.8% compared to the second quarter. Excluding the 545 million euro impact of the Greek assistance programme in the second quarter, it was up 4.5%, remaining at a low level, which illustrates the quality of the portfolio and the good control of thee Group s risks. Hence, operating income, which came too,98 million euros, edged e downn only 4.% compared to the second quarterr. Thanks to the decline in operating expenses and the good control of its cost of risk,, BNP Paribas posted, in a challenging environment, a net income of,848 million m euros, down. % compared to the second quarter. For the first half of the year as a whole, the Group demonstrated that its results held up well. totalled 9,984 million euros, down..8% compared to the first half, given in particula the negative 557 million euro impact of the own debt revaluation in the first f half. The operating divisions revenues thus contracted only 5.%. Operating expenses edged down.%, to,84 million euros, such that gross operating income came to 6,8 million euros, down 7.% compared to the first half. This decline was only.% for the operating divisions. At,798 million euros, the cost of risk was down.8% compared to the first half, which includes the 54 million euro impact of the Greek assistancee programme in the second quarter. Common equity tier ratio taking into account all the CRD4 rules with no transitory provision and as expected by BNP Paribas. Including % of Private Banking in domestic networks, excluding PEL/CEL effects.

3 SECOND QUARTER RESULTS Given the,79 million euros of exceptional income booked after the Group s sale of a 8.7% stake in Klépierre SA in the first quarter of this year, net income attributable to equity holders was 4,75 million euros for the first half of this year, almost unchanged (-.6%) compared to the same period a year earlier. Annualised returnn on equity for the first half of this year, excluding the exceptional income from the sale of Klépierre, was 9.%. The T net book value per share was 59.5, or a compounded annual growth rate of 6.8% since December D 8. * * * RETAIL BANKING DOMESTIC MARKETS Domestic Markets commercial businesss this quarter was marked in particular by the continued growth trend of deposits in alll the networks. At 7 billion euros in the second quarter of this year, Domestic Markets deposits posted.8% growth compared to t the same quarter a year earlier. Despitee a slowdown in demand, outstanding loans rose.7% compared to the second quarter., which totalled,,96 millionn euros in the secondd quarter of this year, were stable compared to the second quarter 4 despite lower financial fees. Operating expenses were down.% 4 compared to the second quarter, producing a positive jaws effect in each of the four domestic markets. Given a moderate cost of risk, and after r allocating one-third off Private Banking s net income from Domestic Markets to the Investment Solutions division, pre-tax. This good performance was achieved thanks to results maintained at a high level in each of the domestic markets. incomee 5 came to,7 million euros, or +.% 4 compared to t the second quarterr French Retail Banking (FRB) FRB continued to actively support its customers. Amidst a slowdown in the economy, outstanding loans grew.% compared to the second quarter, drivenn in particular by the growth in small business and corporate loans. The special support to VSEs & SMEs continued with the t opening of new Small Business Centres in the first half and the launch of SME Innovation Hubs. In addition, 5 billion euros in new loans were earmarked for small businesses and SMEs. Deposits grew. % compared to the second quarter, in particularr thanks to strong growth of savings accounts (+8.7%). Sales of protection insurance rose sharply inn the first half of the year with 7.% growth of the number of policies sold compared to the same period a year r earlier. For which the annualisation has been restated for own debt revaluation Not revaluated Including % of Private Banking of the domestic markets in France (excludingg PEL/CEL effects), Italy, Belgium and Luxembourg 4 At constant scope and exchange rates 5 Excluding PEL/CELL effects

4 SECOND QUARTER RESULTS totalled,77 million euros, down.8% compared to the second quarter. The.5% increase in net interest income, in line with the rise in volumes, wass in fact more than offset by the 5.4% decline in fees, in connectionn with falling financial markets. m The.6% drop in operating expenses compared to the second quarter, thanks to the streamlining of operating efficiency, enabled FRB to generate an increase in gross operating income of.6% compared to the same quarter a year earlier. The cost of risk, at 85 million euros, or basis points of outstanding customer loans, remained at a moderate level. Thus, after allocating one-third of Frenchh Private Banking s nett income to the Investment Solutions division, FRB posted 558 million euross in pre-tax income, up.9% compared to t the second quarter. For the first half of the year as a whole, revenues edged down slightly by.% compared to the first half, the.7% increase in nett interest income in line with the growth in volumes being more than offset by the 4.5% decline in fees in connection withh falling financial markets. The.% reduction in operating expenses resulted in a.% increase in gross operating income and the cost/income ratio improved.6pt to 6.%. Maintaining thee cost of risk at a moderate level permitted FRB to post, after allocating one-third of French Private P Banking s net income to the Investment Solutions division, a pre-tax income of,6 million euros, up.% compared to the same period last year. BNL banca commerciale (BNL bc) In a challenging economic environment t, BNL bc s commercial businesss saw a..8% growth in depositss compared to the second quarter, driven by corporate clientss and local governments. Outstanding loans edged down.9% due to lesser demandd in line with the market. Business development agreements were entered into this quarter with several industrial, commercial and agricultural professional organisations., which amounted to 8 million euros, were up.% compared to the second quarter. The rise in net interest income, in particular from small business b and corporate loans due to margins holding up well, was greater thann the decline in fees due, in particular, to the contractionn of new loans, and of financial fees as a result of falling markets. Thanks to measures to streamline costs, operating expensess were lower by.8% compared to the second quarter, att 444 million euros, enabling BNL bc to generate gross operating income of 69 million euros, up 7.% compared to the same period p a year earlier. The cost of risk rose as a result of the challengingg economicc environment to basis points of outstanding customer loans, or +4 million euros compared to thee second quarter. Nevertheless, after allocating one-third of Italian Private Banking s net income to the Investment Solutions division, BNL bc s income held up well, at millionn euros, down 8.% compared to the second quarter. Excluding PEL/CELL effects, with % of French Private Banking Excluding PEL/CELL effects With % of Italian Private Banking 4

5 SECOND QUARTER RESULTS For the first half of the year as a whole, the.% growth in revenuesr compared to the first half was driven by a 6.% increase in net interest income, in particular p onn loans to small business and corporate clients, whilst fees f fell by 5.% due to fewer new loans and a decrease in financial fees as a result of falling markets. Operating expenses dropped.% compared to the first half generating a positive.pt jaws effect, which further improved the cost/income ratio to 54.4%. Given the 4.% increase of the cost of risk compared to the same period a year earlier, pre-tax income, after allocating one-thirdd of Italian Private Banking s net income to the Investment Solutions division, came to 8 million euros, down 4.7% compared to thee first half, reflecting resilient performance despite the challenging economic environment. Belgian Retail Banking BRB continued to actively finance the Belgian economy. Loans grew byy 4.% compared to the second quarter thanks to a good drive in loans to individual customers. Deposits rose by.% due, in particular, to growth in current and savings account deposits. The commercial drive was also reflected in the development of new products with the launch of Easy Banking offer for the iphone/ipad. totalled 87 million euros, upp 4.% compared to the second quarter, due to the growth in net interest income as a resultt of increasing volumes and margins holding up well, and despite a moderate contraction of fees, especially financial fees, due to the unfavourable market environment. Operating expenses, at 6 million euros, edgedd up only.%, enabling BRB to t push gross operating income to 5 million euros, up 4.% compared too the secondd quarter. The cost of risk, at 9 basis points of outstanding customer loans, remained at a moderate level, down million euros compared to thee second quarter. Thus, after allocating one-third of Belgian Private Banking s nett income too the Investment Solutions division, BRB s pre-tax income rose significantly to 74 million euros, upp +4.9% compared to the secondd quarter. For the first half of the year as a whole, revenues increased by b.% due to a rise in net interest income driven by higher volumes and despite the contraction of financial fees from individual customers. Thanks to the positive impact of measures to foster operating efficiency, operating expenses grew by only.% % helping to produce a positive pt jaws effect and to improve the cost/income ratio to 7.9%. Thus, grosss operating income rose by.% compared to the first half. Given the 4.% rise in the cost of risk, which still remained at a moderatee level, pre-tax Investment Solutions division, was 75 million euros, a significant increase compared to the first f half (+9.8%). Luxembourg Retail Banking: outstanding loans enjoyed significant growth (+4.5%) compared to income, after allocating one-third of Belgian Private Banking s net income to the the second quarter, especially in the corporate customer segment. Growth of deposit was also strong (+9.%), driven by current account deposits. The commercial offering was strengthened with the launch of the " billion for corporates in Luxembourg" campaign and the development of domestic Private Banking. With % of Italian Private Banking At constant scope With % of Belgian Private Banking 5

6 SECOND QUARTER RESULTS Personal Investors: assets under management were stablee comparedd to the second quarter, net asset inflows being offset by a negativee performance effect. Deposits saw significant growth over this same period (+.%). However, revenues were down due to a brokerage business which was affected by clients turning away from the financial markets. Arval: the financed fleet grew.9%, compared to the secondd quarter, to 689, vehicles. While Arval s revenues were reduced r thiss quarter by the sale of o the fuel card business in the UK in December, they were, at constantt scope and exchangee rates, up slightly compared to the second quarter. Leasing Solutions: outstandings declined.% compared to the second quarter in line with the adaptation plan. However, thee decline in outstandings had a more limited impact, on Leasing Solutions revenues, due to a selective policy in terms of the profitability of transactions. In total, after allocating one-third of domestic Luxembourg Private P Banking s net income i to the Investment Solutions division,, these fourr business units contributed 6 million euros to Domestic Markets pre-tax income, down.% compared to the secondd quarter. For the first half of the year as a whole, after allocating one-third of domestic Luxembourg Private Banking s net income to the Investment Solutions division, these four business units contributed in aggregate 45 million euros to t Domesticc Markets pre-tax income, downn 9.9% compared to the first half. * * * At constant scope and exchange rates 6

7 SECOND QUARTER RESULTS Europe-Mediterranean Europe-Mediterraneacompared to the second quarter and were up in most countries, especially Turkey (+4.5% ). continued to enjoyy a good sales and marketing drive. Deposits rose.9% Loans grew 4.8% during this period, with in particular good performance e in Turkey and continued decline in the Ukraine (-9.% ). grew to 448 million euros, upp 9.% due in particular to the strong growth in Turkey (+8.% ) and despite a decline of revenues in the Ukraine in line with outstandings. Excluding the Ukraine, revenue growth was 6.4%. Operating expenses moved up 4.% due in part to the continued bolstering of the commercial organisation in the Mediterranean with the opening of 5 new branches b inn the past year, especially in Morocco. In Turkey, with a limited 5.5% rise in operating expenses, TEB substantially improved its cost/ /income ratio, which fell to 68.%. At 45 million euros, the cost of risk was 74 basis points of outstanding customer loans, down this quarter. Europe-Mediterranean thus posted 8 million euros in pre-tax income this quarter, up sharply compared to the second quarter (+5.7% ). For the first half of the year as a whole, revenues rose 4.7%, due to good performance in Turkey and in the Mediterranean. Operating expenses grew by 4.% due to the reinforcement of the commercial organisation in the Mediterranean, resulting in a 75.6% cost/income ratio. Given the.% fall in the cost of risk compared to the first half, pre-tax income, whichh came to 8 million euros, increased significantly (+55.% ). BancWest BancWest enjoyed a good sales and marketing drive. Deposits grew 8.% compared to the second quarter, driven by strong growth in current andd savings accounts. Loans rose by.% during the same period, benefiting from the continued good trend of corporate loans (+.6% ) and the effect of business investmentss in the SME segment. The good sales and marketing drive was also reflected in a sharp rise in Mobile Banking services. were down, however,.8% compared to the second quarterr as a result of the negativee impact of regulatory changes onn fees. Excluding this impact, revenues were up.%, the effect of the rise in volumes being offset by lower interest rates. Operating expenses grew by.9% compared to the same quarter a year earlier due to the development of the Private Banking organisation as well as the expansion of the sales forces for corporate and small business customers.. The cost of risk continued its downward trend to basis points of outstanding customer loans, a million euro drop compared to the second quarter. BancWest thus posted million euros in pre-tax income, up 9.6% compared to t the second quarter, thereby making a strong and growing contributionn to the Group s results. For the first half of the year as a whole, revenues edged down.8% % due to the impact of regulatory changes on fees. Operating expenses moved up.% due to the investment in the At constant scope and exchange rates 7

8 SECOND QUARTER RESULTS Private Banking organisation and in small businesses and corporate customers. The cost/income ratio was thus up points, at 57.%. Given a substantial decline in the cost of risk (-47.%( ), pretax income came to 48 million euros, upp.% compared to the first halff. Personal Finance Consumer loan outstandings grew.8% compared to the second quarter due, in part, to good growth in Germany (as a result of f the successful partnership with Commerzbank), Belgium and Russia but were down in France because of new regulations. With respectt to mortgage lending, the implementation of the Basel adaptation plann was reflected in a.% drop in outstandings, compared to the first quarter. These combined effects and the impact of the new regulations on margins pushed revenues down 5.% compared to thee second quarter, to,44 million euros. Operating expenses declinedd.4% compared to the same quarter a year earlier, to 59 million euros, benefiting from the effect of thee adaptation measures. Excluding adaptation costs this quarter (7 million euros), the decline was more stark (-6.%), producing a positive.pt jaws effect. The cost of risk, at 74 million euros, or 66 basis points of outstanding consumer loans, continued to improve and was down million euros compared to the second quarter. Thus, Personal Finance s pre-tax incomee came to 6 million euros, e downn slightly. 6% compared to the second quarter. In I a challenging environment, Personal Finance maintained its profit generation capacity. For the first half of the year as a whole, revenues fell by 5.5% compared to the first half as a result in particular of new regulations in France. Operating expenses moved up.5% becausee of adaptation costs (47 million euros). Excluding adaptation costs, they weree down.4% %, resulting in a 48.% cost/income ratio. Given the 6.% decline in the cost of risk compared to the first half, pre-tax income was 59 million euros, down 4.7%. * * * At constant scope and exchange rates 8

9 SECOND QUARTER RESULTS INVESTMENT SOLUTIONS Investment Solutions net asset inflows in the first half of the year y was positive, totalling 8.5 billion euros, the positive inflows in the first quarter (+.6 billion) having only been partly offset by the outflows observed in the second quarter (-4. billion). All the business units made a positive contribution, except Asset Management: Private Banking contributed +7. billion thanks to very solid asset inflows, especially in the second quarter, in domestic markets and in Asia; Insurance contributed +.4 billion euros thanks too good asset inflows outside France, especially in Asia (Taiwan, South Korea, India); Personal Investors delivered +. billion; Real Estate Services +.6 billion; and Asset Management -.9 billion euros with asset inflows into money market and bond funds more than offset by asset outflows in the other asset classes. Net asset inflows in this first half of the year, combined with a favourable f performance effect (good performance of the equity markets in thee first quarter partly offset by thee decline observed in the second quarter) and a positive foreign exchange effect drove assets a under management up.6%, compared to December, to 87 billion euros. Investment Solutions revenues in the second quarter, which w were,566 million euros, were up.% compared to the second quarter. from Wealth and Assett Management were down 4.% due to the decline in outstandingss in Asset Management. Insurance s revenues moved up.7% ( +6.6% excluding the effects of the consolidation of Cardif Vita in Italy) due to the growth of protection insurance and savings outside France. Securities Services revenues r rose 5.% compared to the second quarter thanks to goodd business growth in all countries, Securities Services assets under custody and assets under administration increasing by +4.7% and +9. 4% respectively during this same period. Investment Solutions operating expenses, at,68 million euros, were up.8% compared to the second quarter due to continuedd businesss development investments in Insurance and Securities Services, especially in Asia, partly offset by the effects e of the implementation of the adaptation plan in Asset Management which saw its operating expenses decline.%. The division s gross operating income, whichh totalled 498 million euros, was up.8% compared to the same period a year earlier. After allocating one-third of Domestic Market Private Banking s net income to the Investment Solutions division, pre-tax income was virtually flat at 5 million euros compared to the second quarter (-.4%), reflecting a good overall resilience with, in particular, good performance e in Insurance and Securities Services. For the first half of the year as a whole, Investment Solutions revenues edged up. % compared to the first half, the 6.7% drop observed in Wealth and Asset Management as a result of a decline in managed assets, being offset by an.% rise in revenues in Insurance (+6.% excluding the effects of the consolidation of Cardif Vita in Italy) and 5..7% growth in Securities Services revenues. Operating expensess rose.4% compared to the first half, becausee of business development investments in Insurance and Securitiess Services, but down.% in Wealth and Asset Management due to the adapting of costs to the new environment. The cost/income ratio thus rose slightly (+. point), to 68.4%. Pre-tax income came to,4 million euros, down 4.8% compared to the income in the first half (-.5% at constant scope and exchange rates). * * * Including Personal Investors Including assets under advisory on behalf of external clients and Personal Investors 9

10 SECOND QUARTER RESULTS CORPORATE AND INVESTMENT BANKING (CIB) CIB s revenues, at, million euros, were down.6% compared to thee second quarter. from Advisory and Capital Markets, at,7 millionn euros, fell by.% compared to the same quarter a year earlier. Against a general backgroundd of crisis inn the capital markets and strong volatility, there was less demand from clients and the businesses were managed cautiously, with the average VaR maintained at a loww level (46 million euros). In this challengingg environment, the business units maintained their market positions. Fixed Income s revenues, at 88 million euros, weree down 5. % compared to the second quarter, as a result of the effectt of the balance sheet deleveraging measures in connection with the adjustment to Basel.5 and Basel, and lower customer volumes, v especially bond issuess in Euros. In a challenging environment, the businesss unit confirmed againn this quarter its leading positions in bond issues: number position in all bonds in Euros and number 6 for all international issues. Separately, the business unit enjoyed good performance inn the Rates and Forex businesses. from Equities and Advisory, at 69 million euros, fell f 45.8% compared to the second quarter due to the decline in flow business in low volume markets and to limited demand from clients for structured products. In the primary equity market, volumes of new issues were also very limited because of the unfavourable market context. from Corporate Banking were resilient and fell only 8.4% % to, million euros compared to the second quarter. Excluding loan sales, which w had a positive 75 million euro impact this quarterr because of the capital gains from the disposal of the US-based Reserve Based Lending business, the decrease was 5.% in line with the adaptation plann to Basel. Drawing on its global reach with more than 6 entities in over 44 countries and with approximately, corporate and institutional clients, plus an additional 4,5 mid-cap clients from retail banking, Corporate Banking performed well in the context of the t adaptation plan. With respect to financing, the adjustment of the t model continued with a 9.% net decrease in outstanding loans compared to the situation as at December and the implementation of the Originate and Distribute model through a number of f landmark transactions, Corporate Banking maintaining strong positions at origination. Furthermore, the business unitt benefited from the development of the global Cash Management offering, where BNP Paribas ranks number 5 worldwide, with a powerful domestic and European base and a strong presence in Asia. It gained several significant mandates in the second quarter of the year. Lastly, a Corporatee Deposit line was created as part of the ambitious plan launched to grow the deposit base. CIB s operating expenses, which totalledd,97 million euros, were downn.4% compared to the second quarter. At constant scopee and exchange rates, and excluding adaptation costs (8 million euros), they were down.% due, in particular, to thee effect of the ongoingg adaptation of the workforce. Given the division s cost of risk, whichh remained low (9 million m euros) despite situation, due to the superiorr quality of the portfolio, CIB s pre-tax p income came euros, down 4.% compared to the second quarterr. the economic to 8 million For the first half of the year as a whole, CIB s revenues fell 6. 7% compared to the same period in, at 5,5 million euros. from Advisory and Capital Markets dropped 6.6% due to the crisis in the markets in the second quarter of the year and Corporate Banking s revenues r were down 6.8%, in line with the reduction r in loans due to the adaptation plan. Operating expenses fell

11 SECOND QUARTER RESULTS * * * CORPORATE CENTRE 4.% compared to the first half. At constant scope and exchange rates, and excluding the adaptation costs (9 million euros), operating expenses were down d.5% %. CIB s cost/income ratio was 6..5%. The cost of risk, at 97 millionn euros, was at a low level but up compared to the first half which was marked by a net total of 7 million euros in write-backs of provisions. The pre-tax income came to, 988 million euros, down 4.8% compared to the first half. The Corporate Centre reported 5 million euros in revenues compared c too 46 million euros in the second quarter. The revenues reflect this quarter a +86 million euro own debt revaluation (compared to +4 million in the second quarter ), a +4 million euro amortisation of the fair value adjustment of Cardif Vita and of Fortis banking book (compared to +4 million euros in the second quarter ) and -9 million euros in losses from the sale of sovereign bonds (negligible in the second quarter ). The Corporate Centre s revenues in the second quarter also includedd +94 million euros in revenues from BNP Paribas Principal Investments as well as +8 million euros in revenues from Klépierre. Operating expenses totalled 9 million euros compared to 8 million euros in the second quarter. They include 4 million euros in restructuring costs (compared too 48 million euros in the second quarter ). The cost of risk was negligible ( million euros), whilst the second quarter included a 56 million euro impact of the Greek assistance programme. Other non operating items totalled -48 million euros, due inn particularr to the -7 million euro impairment of Laser Netherlands goodwill. Pre-tax earlier. income was - million euros compared to -59 million euros e duringg the same period a year For the first half of the year as a whole, the Corporate Centre s revenues totalled -678 million euros compared to 877 million euros in the first half. This includes a -557 million euro own debt revaluation (compared to +4 million euros in the first half ), a +5 million euro amortisation of the fair value adjustment of Cardif Vita and of Fortis banking book (compared to +45 million euros in the first half ) ), - million euros in losses from the sale of sovereign bonds (negligible in the first half ), the -68 million euros impact of the exchange of Convertiblee & Subordinated Hybrid Equity-Linked (+55 million euros in the first half ). The Corporate Centre s revenues in the first half also included +6 million euros in revenues from BNP Paribas Principal Investments (+ million euros in the first half Securities ( CASHES ), as well as +6 million euros in revenues from Klépierre ). The Corporate Centre s operating expenses dropped to 45 million m euross compared to 5 million euros in the first half due primarily to lower restructuring costs c (69 million euros compared to 7 million euros). The cost of risk totalled 7 million euros, compared to 457 million euros inn the first half, which includedd the 56 million euro impact i of the Greek assistance programme.

12 SECOND QUARTER RESULTS Other non operating items amounted to,68 million euros (compared to 58 million euros in the first half ) due, primarily, to,79 million in capital gainss from the sale of a 8.7% stake in Klépierre S.A. Pre-tax earlier. income was 65 million euros compared to -4 million euros e during the same period a year * * * LIQUIDITY AND FINANCING The Group s liquidity situation was extremely favourable. The Group s cash balance sheet, prepared based on the prudential p banking scope and after netting amounts for derivatives, repos,, securitiess lending/borrowing and payables/receivables, totalled 987 billion euros as at June. The total of equity, client deposits and medium/long- compared to the financing needs of thee customer activity andd to tangible and intangible assets. This surplus remained virtually unchanged during the quarter and billion euros higher than at term funding came to a 5 billion euro surplus (of which 8 billion US dollars) of stable funding the end of. The Group s liquidity and asset reservess immediately availablee totalled billion euros (of which 9 billion US dollars in Fed deposits), amounting to close to % of short-term wholesale funding. Over % of the Group s billion euroo medium/long-term fundingg programme has already been completed. From November to early July, billion euros were raised r with an averagee spread of basis points above mid-swap and an average maturity of 5.7 years. * * *

13 SECOND QUARTER RESULTS SOLVENCY The common equity Tier totalled 6. billion euros as at June, up. billion euros compared to March.. This increase includes +. billion euros in organic generation, + billion from the success of the payment of the dividend inn shares which 7% off shareholders opted for and a +.6 billion foreign exchange effect. Risk-weighted assets totalled 578 million euros and were stable compared to March, the impact of the adaptation plan (-7 billionn euros) having been offset by a foreign exchange effect (due, in particular, to the appreciation of the US dollar). Thus, as at June, the Basel.5 common equity Tier ratio, which includes the European Capital Requirements Directive (CRD) regulatory regime that came into force at the end of, was.9%, up 5 basis points compared to March. The target of 9% solvency by the end of June set by the European Banking Authority (EBA), which beyond CRD, mandates an additional deduction for unrealised capital losses from European sovereign bonds held (4 basis points for BNP Paribas), was largely surpassed. The Basel common equity Tier ratio, taking into account all the CRD4 rules without transitional arrangements (Basel fully loaded), was thus 8.9% as at June. It includes a -4 basis point impact due to the revaluation of European sovereign debtt held. The target of a Basel fully loaded 9% common equity Tier ratio by December is therefore virtually achieved, six months inn advance. * * * Commenting on these results,, Chief Executive Officer Jean-Laurent Bonnafé stated: Thanks to its balanced and diversified BNP Paribas Group performed well environment. business model and the dedication of all its employees, this quarter in a challenging c economicc and market The adaptation plan is almostt achieved, well ahead of schedule, solvencyy has been strengthened and the objective of a Basel fully loaded 9% common equityy Tier ratio by December has virtually been attained. Thus, BNP Paribas is today one of the best-capitalised amongst the leading global banks. BNP Paribas plays an active role r in financing the economy andd supports its customers across all of its business units. Basel.5 Which will become binding only as of..9, CRD4 as expected by BNP Paribas. Since CRD4 is still being debated in the European Parliament, its directives remain subject to interpretation and can still be amendedd

14 SECOND QUARTER RESULTS CONSOLIDATEDD PROFIT AND LOSS ACCOUNT Q Q Q / Q Q Q/ Q H H H / H Gross Share of Earnings of Associates Corporate Income Tax Net Income Attributable to Minority Interests Net Income Attributable to Equity Holders,98-6,7,76-85,98 9-4, ,848,98-8.% 9,886 +.% -6,6-4.% -6, % 4,79-4.%,9 +.8% -,5-6.8% %,9-4.%, % 4 97,68-8.7% 54,69,98 -.7% -4.% % % % %,8 -.%, % 9,984 -,84 6,8 -,798 5, 7,648 6,9 -, ,75, % -, -.% 9,6-7.% -,69 -.8% 7,67-9.% % 7 7,77-6.% -, -.6% % 4, % Cost/Income 6.8% 6.% +.7 pt 69.% -6.5 pt 66.% 58.8% +7..pt BNP Paribas financial disclosures for the second quarterr are releasee and in the presentation attached herewith. contained in this press All legally required disclosures, including the Registration document, are available online at in the Results section and are made public by BNP Paribas pursuant to the requirements under Article L.45-- of thee French Monetary and Financial Code and Articles - et seq. of the Autorité des Marchéss Financiers generall rules. Press Contacts: Antoine Sire Bertrand Cizeau Carine Lauru Isabelle Wolff Julie Beuter Julia Boyce Pascal Hénisse Malka Nusynowicz Loubna Sebti Anne-Sophie Trémouille antoine.sire@ bnpparibas.com bertrand.cize au@bnpparibas.com isabelle.wolff@bnpparibas.com julie.beuter@bnpparibas.com julia.boyce@bnpparibas.com pascal.heniss e@bnpparibas.com malka.nusyno owicz@bnpapribas.com anne-sophie.tremouille@bnpparibas.com 4

15 SECOND QUARTER RESULTS Q RESULTS BY CORE BUSINESSES Retail Banking Investment Solutions CIB Operating Divisions Other Activities Group 6,97,566, 9,89 5,98 Operating Ex pensess and Dep. %Change/Q %Change/Q -.4% +.% -.6% -6.4% -.5% +.% -8.5% -8.% -,679 -,68 -,97-6, % -9-8.% +.% -6,7 Gross %Change/Q %Change/Q %Change/Q %Change/Q %Change/Q %Change/Q %Change/Q %Change/Q Share of Earnings of Associates Other Non Operating Items %Change/Q %Change/Q +.% +.8% -.4% -.8% -.% +.4% -6.% -7.%,48 -.4% % 8-6.%, % -.8% +4.% -.% -9.5% -8-4.% % % +.7% -7.7% -75.6% -6.7%,585 +.% % %, % -.6% +6.% -9.% -.% 47 4,66 +.7% % % 88 6,988-5.% -.% +9.9% -9.6% -.% -.% -.% -9.4% % -4.% -7.4%,76-4.% +.8% % -9.7%,98-4.% +8.9% 9-4, % -4.% Retail Banking Investment Solutions CIB Operating Divisions Other Activities Group 6,97,566, 9,89 5,98 Operating Ex pensess and Dep. Q Q 6,,5,9,575 6,7,5,,769 -,679 -,68 -,97-6, ,98 9,886-6,7 Gross Q Q -,669 -,9 -,6 6-6, -,69 -,4 -,89 9-6,65, , ,6-6,847,76 Q Q,45, , 7 4,54 478, 9 4, ,5 4,79,9-85 Q Q , , ,5-945,98 Share of Earnings of Associates Q Q,584, ,,89 467, 5, ,4,9,94 9 Other Non Operating Items Q Q Q Q 7 5, ,988 97,676-97,69,985 Q Q Corporate Income Tax Net Income Attributable to Minority Interests Net Income Attributable to Equity Holders,64,67,66 5,7 7,57 48,6 67, 5 8, ,4,68, ,848 5

16 SECOND QUARTER RESULTS H RESULTS BY CORE BUSINESSES Retail Banking Investment Solutions CIB Operating Divisions Other Activities Group %Change/H Operating Ex pensess and Dep. %Change/H Gross %Change/H %Change/H %Change/H Share of Earnings of Associates Other Non Operating Items %Change/H Corporate Income Tax Net Income Attributable to Minority Interests Net Income Attributable to Equity Holders Annualised ROE After Tax,4,87 5,5,66 -.7% -7,69 +.% -, % -,89-5.% -,769 +.% +.4% -4.% -.% 4,855 -.% %,6 -. % 7,89 -.% -, ,77-8.% +.% -.%,95 -.6% 96 +.%, % 6, -4.6% 9,6 44 8,4, ,8 +.% -4.8% -4.8% -4.9%,6,4,988 6, % -, % -, 7, , ,59 9, % -,84 -.% 6,8-7.% -, % 5, -9.% 7,648 6,9-6.% -, ,75 6

17 SECOND QUARTER RESULTS QUARTERLY SERIES GROUP Operating Ex penses and Dep. Gross Cost of Risk Share of Earnings of Associates Corporate Income Tax Net Income Attributable to Minority Interests Net Income Attributable to Equity Holders Q,,98-6,7,,76-85,,98 9-4,, ,,848 Q 9,886-6,847,9-945,94 54,69, ,867 4Q 9,686-6,678,8 -,58, , Q, -6,8,94 -, Q,98-6,6 4,79 -,5,9 4 97, ,8 Q,685-6,78 4, , ,9 -,75-8,66 Cost/Income 6.8% 69. % 68.9% 6.9% 6.% 57.6% 7

18 SECOND QUARTER RESULTS Q Q 4Q Q Q Q RETAIL BANKING (including % of Private Banking in France, Italy, Belgium and Luxembourg)* Excluding PEL/CEL Effects Gross Non Operating Items Income Attrib butable to Investmen nt Solutions of Retail Banking 6,59 -,75,54-8,69 5,74-5,69 6,6 -,74,57-87,69 6,75-57,69 6, -,9, -98,8 97,79-46, 6,4 -,766,77-845,5 8,65-45,57 6, -,76,54-869,65 4,675-57,68 6, -,674,67-96,69 4,74-58, Q Q RETAIL BANKING (including / of Private Banking in France, Italy, Belgium and Luxembourg) Gross Non Operating Items 6,97 -,679,48-8, ,7 -,69,47-87,6 6,66,67 4Q 6,6 -,878,8-96, 97,9 Q 6,45 -,7 Q 6, -,669 Q 6,88 -,6,5-844,49 8,57,45-869,584 4,64,567-96,6 4, Q Q 4Q Q DOMESTIC MARKETS (including % of Private Banking in France, Italy, Belgium and Luxembourg)* Excluding PEL/CEL Effects,96 4,,885,9 Q Q,97 4,8 Gross Associated Companies Income Attrib butable to Investmen nt Solutions of Domestic Markets -,467,494-8,, -5,7 -,44,58-64,8, -57,75 -,64, ,554,78-44,4 9,45-45, -,5,467-54, 7, -57,66 -,46,547-7, -, -58, Q Q 4Q DOMESTIC MARKETS (including / of Private Banking in France, Italy, Belgium and Luxembourg) Gross Associated Companies,799 -,4,88-8,6,6,89 -,88,5-64,8,5,759 -,588, Q,84 -,498 Q,86 -,446 Q,895 -,48, ,,46-54,6 7,7,487-7,6 -, * Including % of Private Banking for s down to Pre-tax income line items 8

19 SECOND QUARTER RESULTS Q Q 4Q Q Q Q FRENCH RETAIL BANKING (including % of Private Banking in France)*,76 Incl. Net Interest Income, Incl. Commissions 696 -,98 Gross Non Operating Items 54 Income Attrib butable to Investmen nt Solutions - of French Retail Banking 54,79,7 79 -, , , ,75, ,68,79, ,6,86,, , Q Q 4Q FRENCH RETAIL BANKING (including % of Private Banking in France)* Excluding PEL/CEL Effects Incl. Net Interest Income Incl. Commissions Gross Non Operating Items Income Attrib butable to Investmen nt Solutions of French Retail Banking,77, , ,8, , ,697, 684 -, Q,748,4 75 -,68 Q,784, ,6 Q,88,, , Q Q 4Q Q Q Q FRENCH RETAIL BANKING (including / of Private Banking in France),658 -,69 Gross Non Operating Items 54,7 -, ,68 -, ,695 -,9,78 -,88,745 -, * Including % of Private Banking for s down to Pre-tax income line items 9

20 SECOND QUARTER RESULTS Q Q 4Q Q Q Q BNL banca commerciale (Including % of Private Banking in Italy)* Gross 69-9 Non Operating Items 9 Income Attrib butable to Investmen nt Solutions -7 of BNL bc Q Q 4Q Q Q Q BNL banca commerciale (Including / of Private Banking in Italy) Gross Non Operating Items Q Q 4Q Q Q Q BELGIAN RETAIL BANKING (Including % of Private Banking in Belgium)* 87-6 Gross Associated Companies 4 9 Income Attrib butable to Investmen nt Solutions -6 of Belgian Retail Banking Q Q 4Q Q Q Q BELGIAN RETAIL BANKING (Including / of Private Banking in Belgium) 8-59 Gross Associated Companies * Including % of Private Banking for s down to Pre-tax income line items

21 SECOND QUARTER RESULTS Q Q 4Q Q Q Q PERSONAL FINANCE Gross Associated Companies, , , , ,, Q Q 4Q Q Q Q EUROPE-MEDITERRANEAN Gross Associated Companies Q Q 4Q Q Q Q BANCWEST Gross Non Operating Items

22 SECOND QUARTER RESULTS Q Q 4Q Q Q Q INVESTMENT SOLUTIONS Gross Associated Companies,566 -, ,5 -, ,46 -, ,46 -,4,5 -,9,5 -, Q Q 4Q Q Q Q WEALTH AND ASSET MANAGEMENT Gross Associated Companies Q Q 4Q Q Q Q INSURANCE Gross Associated Companies Q Q 4Q Q Q Q SECURITIES SERVICES Gross Non Operating Items

23 SECOND QUARTER RESULTS Q Q 4Q Q Q Q CORPORATE AND INVESTMENT BANKING Gross Associated Companies, -, , -,89,9-78,5 4,67,685 -, ,787 -,,9 -,6,55 -, ,7, 7,7,68-6,665, Q Q 4Q Q Q Q ADVISORY AND CAPITAL MARKETS Gross Associated Companies, ,49 -, , ,8 -,6,4 -, Q Q 4Q Q Q Q CORPORATE BANKING Gross Non Operating Items, , ,7, Q Q 4Q Q Q Q CORPORATE CENTRE (Including Klépierre) Incl. Restructuring Costs Gross Associated Companies ,5-9 -,4 76, , -, ,

24 SECOND QUARTER RESULTS GOOD RESULTS IN A CHALLENGING ECONOMIC ENVIRONMENT RETAIL BANKING DOMESTIC MARKETS INVESTMENT SOLUTIONS CORPORATE AND INVESTMENT BANKING (CIB) CORPORATE CENTRE LIQUIDITY AND FINANCING SOLVENCY CONSOLIDATED PROFIT AND LOSS ACCOUNT Q RESULTS BY CORE BUSINESSES H RESULTS BY CORE BUSINESSES QUARTERLY SERIES Figures included in this presentationn are unaudited. On 8 April, BNP Paribas P issuedd a restatement of its quarterly results for reflecting, in particular, an increase of capital allocated to each business from 7% to 9% of risk-weighted assets, the creation of the Domestic Markets division and transfers of businesses between business units. In these restated results, data pertaining to has beenn represented as though thee transactions had occurred on st January. This presentationn is based on the restated quarterly data. 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 regardingg plans, objectives and expectations with respect to future events, operations, products and services, and statements regarding future performance and synergies. Forward-looking statements are not guaranteess of future performance and are subject to inherent risks, uncertainties and assumptionss about BNP Paribas and itss subsidiaries and investments, developments of BNP Paribas and its subsidiaries, bankingg industry trends, future capital expenditures and acquisitions, changes in economic conditions globally or in BNP Paribas principal local markets, the competitive market and regulatory factors. Those events are uncertain; their outcome may differ from current expectations which may in turn significantly affect expected results. Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in i this presentation speaks as of the date of this presentation. BNP Paribas undertakes no obligation to publicly revise or update any forward-looking statements in light of new informationn or future events. The information contained in this presentation as it relates to parties other than BNP Paribas or derived from external sources has not been independentlyy verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on the fairness, accuracy, completeness or correctness of, the information or opinions contained herein. None of BNP Paribas or its representatives shall have any liability whatsoever in negligence or otherwisee for any loss however arising from any use of this presentation or itss contents or otherwise arising in connection with this presentation or any other information or material discussed. 4