2015 Annual Report
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HOW THE BANK IS DRIVING CHANGE 2015 ANNUAL REPORT The bank for a changing world BNP PARIBAS, AN INTEGRATED MODEL, A GUARANTEE OF PERFORMANCE 3 QUESTIONS ABOUT BANKS ..................................................................................................... 29 Business model ................. 5 Key figures ......................... 6 International presence .... 7 The Board of Directors .... 8 Interview with the Chief Executive Officer .... 11 How do banks How do banks What will the bank of contribute to participate in the the future look like? ......... 49 The Executive ........... 33 ........... 41 Committee ......................... 13 the real economy? energy transition? Our business ...................... 14 Viewpoints .................... 34 Viewpoints .................... 42 Viewpoints .................... 50 ..................... Shareholders 18 Financing the real How BNP Paribas Digitalisation at the economy: a key role is accelerating the heart of BNP Paribas’ Human Resources ............. 20 for BNP Paribas energy transition transformation Corporate Social Highlights ...................... Highlights ...................... Highlights ...................... Responsibility .................... 22 36 44 52 BNP Paribas: BNP Paribas: BNP Paribas: supporting the furthering the driving change Our commitments ............ 24 real economy energy transition BNP Paribas is the bank for a changing world, aware of the changes affecting society, attuned to its concerns and committed to meeting its future needs. Through examples and highlights of the past year, the 2015 Annual Report presents not only the BNP Paribas Group, but also provides answers to questions in society on the role of banks. BNP PARIBAS AN INTEGRATED MODEL, A GUARANTEE OF PERFORMANCE BUSINESS MODEL AN INTEGRATED GROUP AND EUROPEAN LEADER The capacity to serve a diversified client base is at the include payments, deposits, traditional and specialised heart of BNP Paribas’ business model. financing, savings, protection insurance, wealth and asset management as well as real-estate services. The Group serves nearly 32 million individual custom- ers and 1 million professionals, entrepreneurs, small In the area of corporate and investment banking, the and medium-sized enterprises and large corporate Group offers clients access to the capital markets, clients in its retail-banking networks. In addition, securities services, cash management, fixed income BNP Paribas Personal Finance has more than 20 million and foreign-exchange products, structured-finance active customers. solutions as well as advisory and risk-hedging solutions for all asset classes. With global reach, coordinated business lines and proven expertise, the Group provides a full range of With a presence in 75 countries, BNP Paribas helps innovative solutions adapted to client needs. These clients to grow internationally. — 2015 ANNUAL REPORT OUR ACTIVITIES The BNP Paribas Group is organised around two main activities: Retail Banking & Services (comprising Domestic Markets and International Financial Services) and Corporate & Institutional Banking. RETAIL BANKING & SERVICES Domestic Markets French Retail Banking BNP Paribas Fortis BNL BGL BNP Paribas CORPORATE Arval & INSTITUTIONAL BNP Paribas Leasing Solutions BANKING BNP Paribas Personal Investors Corporate Banking International Global Markets Financial Services BNP Paribas Securities Services BNP Paribas Personal Finance International Retail Banking BNP Paribas Cardif BNP Paribas Wealth Management BNP Paribas Investment Partners BNP Paribas Real Estate 5 KEY FIGURES 2015 ANNUAL RESULTS Against the backdrop of a gradual recovery in economic growth in Europe, BNP Paribas delivered a good operating performance in 2015. Revenues totalled €42.9 billion, up 9.6% compared to 2014. Revenues rose in all operating divisions with a sound performance by Domestic Markets and marked increases at both International Financial Services and Corporate & Institutional Banking. Reporting a net income Group share of €6.7 billion, BNP Paribas delivered solid financial results, thanks to an integrated, diversified business at the service of clients. In terms of solvency ratios, the fully-loaded Basel 3 common equity Tier 1* ratio was 10.9% at 31 December 2015. The Group also reaffirmed the objectives set out in its 2014-2016 Business Development Plan. GOOD OPERATING PERFORMANCE NET INCOME ATTRIBUTABLE REVENUES TO EQUITY HOLDERS €42.9bn €6.7bn — 2015 ANNUAL REPORT €15.9bn DIVIDEND PER SHARE Domestic Markets ** Retail *** Banking €11.7bn €2.31 & Services Corporate €15.3bn & Institutional International Banking Financial Services GOOD FINANCIAL STRENGTH A HIGH SOLVENCY A VERY LARGE RATIO* LIQUIDITY RESERVE 10.9% €266bn *Fully-loaded Basel 3 common equity Tier 1 ratio as at 31 December 2015, taking into account all CRD IV (Capital Requirements Directive) rules with no transitory provisions. **Includes 100% of Private Banking revenues in the four domestic markets (excluding PEL/CEL effects). ***Subject to the approval of the Annual General Meeting of 26 May 2016. Additional information can be found in the 2015 Registration Document and Annual Financial Report on invest.bnpparibas.com 6 INTERNATIONAL PRESENCE OUR WORLDWIDE PRESENCE BNP Paribas is a European Group with global reach. MORE THAN 189,000 EMPLOYEES EUROPE AMERICAS 146,610 MIDDLE EAST 19,845 employees 580 employees — 2015 ANNUAL REPORT employees AFRICA 9,860 ASIA-PACIFIC employees 12,180 IN employees 75 COUNTRIES 7 THE BOARD OF DIRECTORS THE DUTIES OF THE CHAIRMAN AND THE BOARD OF DIRECTORS The Chairman contributes to promoting the values and image of BNP Paribas, both within the Group and externally. At the request of the Chief Executive Officer, he can take part in any internal meeting on subjects relating to strategy, organisation, investment or disinvestment projects, risks and financial information. Together with the other members of the Board of Directors, the Chairman oversees the implementation of the Group’s Business Devel- — 2015 ANNUAL REPORT opment Plan. The Board of Directors The Board of Directors formulates BNP Paribas’ strategy and overall business objectives based on proposals submitted by Executive Manage- ment. It appoints the Chief Executive Officer JEAN LEMIERRE and the Chief Operating Officers. It examines CHAIRMAN OF and decides on strategic operations and over- THE BOARD OF DIRECTORS sees the implementation of the objectives it has approved. The Board is also kept regularly The Chairman informed of the Group’s liquidity situation and ongoing commitments. The Chairman is responsible for ensuring that the In 2015 the Board of Directors examined the quality of the relationship with shareholders is 2014-2016 Development Plan in light of the maintained, coordinating with any steps taken operating divisions’ performance, the dete- by Executive Management in this area. In this riorating economic environment, the fall in connection, the Chairman chairs the Share- interest rates and the impact of new taxes and holder Liaison Committee. regulations. The Chairman provides support and advice to The relevance of the choices made in the Plan the Chief Executive Officer, while respecting his was confirmed, in particular those regarding executive responsibilities. projects preparing the bank of the future, the Coordinating closely with Executive Manage- good results of the Plan in the various regions, ment, the Chairman can represent the Group in the strengthening of capacities in terms of its high-level relationships, at national, Euro- compliance and control, and a stringent risk- pean and international levels. management policy. 8 THE BOARD OF DIRECTORS 1 2 JEAN LEMIERRE JEAN-LAURENT BONNAFÉ Chairman of the Board Chief Executive of Directors of Officer and Director BNP Paribas of BNP Paribas 3 4 PIERRE-ANDRÉ MONIQUE COHEN de CHALENDAR Partner of THE BOARD Chairman and Apax Partners Chief Executive Officer OF DIRECTORS of Saint-Gobain The Board of Directors is comprised of 14 directors, 12 of whom 5 were appointed by the shareholders and 2 elected by employees. MARION GUILLOU There is an equal representation Chairwoman of men and women, and there are of Agreenium four different nationalities. 6 DENIS KESSLER Chairman and Chief Executive Officer of SCOR SE — 2015 ANNUAL REPORT 7 12 3 10 1 11 4 13 2 8 JEAN-FRANÇOIS LEPETIT Director of companies 8 NICOLE MISSON Customer Advisor, Director elected by 5 9 7 14 6 BNP Paribas employees 9 10 12 13 LAURENCE PARISOT DANIELA SCHWARZER EMIEL VAN SANDRINE VERRIER Vice-Chairwoman Member of the BROEKHOVEN Production and sales of the Management Executive Committee Economist, support assistant, Board of Ifop SA of the German Honorary Professor Director elected by Marshall Fund at the University BNP Paribas employees of Antwerp 11 14 OTHER CORPORATE OFFICER MICHEL TILMANT FIELDS WICKER-MIURIN PHILIPPE BORDENAVE Manager of Strafin sprl Co-founder Chief Operating Officer of BNP Paribas and Partner at Leaders’ Quest CODE OF CONDUCT On 31 March 2016 the Board of Directors adopted BNP Paribas’ new Code of Conduct. This document is aimed at employees and sets out the rules governing behaviour in accordance with the Group’s values. THE BNP PARIBAS GROUP CODE OF CONDUCT The bank for a changing world FOREWORD* The Board of Directors and General Management of BNP Paribas share the conviction that the success of the bank depends directly on the behaviour of each employee. Together, we are committed to building the future of BNP Paribas on the foundations of professional expertise