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#POSITIVEBANKING A RESPONSIBLE FOR A SUSTAINABLE ECONOMY

2019 INTEGRATED REPORT

The bank for a changing world of service and offer customers the digital solutions which we encourage them to use as a priority. Furthermore, our individual customers can benefit from personalised solutions to give them the flexibility they need at this time of great uncertainty, whether deferring loan repayments, obtaining BNP MOBILISES credit or managing savings and payments. To assist and support companies, especially SMEs and pro­ fessional clients affected by the crisis, we are also taking TO TACKLE COVID-19 all necessary measures, such as deferring repayments, faci­ litating and providing faster financing.

n light of the Covid-19 health crisis, the BNP Paribas, through its businesses, Foundation, and BNP Paribas Group has mobilised to help Rescue & Recover Fund, has been committed since the begin­ I customers, support the global economy and ning of the crisis to supporting hospitals, medical research, contribute to assisting those in need. This is and organisations helping the most vulnerable in the com­ first of all a particularly difficult and human munity as well as disadvantaged young people facing great ordeal that we are experiencing, and our first thoughts go out difficulty because of the crisis. This action to help the com­ to all those whose loved ones have been directly affected by munity has been the focus of our emergency aid plan, put in the epidemic. And as bankers we have a special responsibility place in mid­April and which represents a commitment of to ensure continuity of while helping not only €55 million. This plan has helped hospitals and vulnerable professional and business customers to overcome the crisis but communities in some 30 countries. It has also been bolstered also individual clients who have had to adapt to sudden, unex­ by the volunteer work of many employees around the world. pected difficulties. Banking is an essential function during the current crisis and it is our duty to ensure business continuity. We are experiencing a moment of truth in our relationship with clients and the world around us. We are meeting the To that end, all our employees are fully mobilised in every challenges, collectively and individually, because our bank country where we operate. Some continue to go to the is sound, not only thanks to its financial strength but also workplace to guarantee continuity of customer support, to its values and its great ability to adapt to circumstances. whether in branches, customer­service centres, trading We must remain mobilised to help clients and those most floors or IT centres. And to protect our teams and customers in need as we start on the long and challenging road to even more, we have put in place everywhere precautionary economic recovery while at the same time drawing lessons health and hygiene measures. We would like to express our from this unprecedented crisis. sincere thanks to all our employees for their commitment and their extraordinary discipline.

We have strengthened customer­service teams operating remotely, and branch opening times have been adjusted for our Jean-Laurent Bonnafé retail customers. It is, of course, also thanks to the commitment Chairman of the Board of Directors Director and Chief Executive Officer of our IT teams that we have been able to guarantee continuity of BNP Paribas of BNP Paribas

MAY 2020 BNP PARIBAS AND THE COVID-19 CRISIS BNP PARIBAS AND THE COVID-19 CRISIS EMPLOYEES COMMITTED TO SUPPORTING OUR CUSTOMERS

All BNP Paribas businesses are mobilised during the crisis to support the economy and our customers, whether individuals, professional clients, businesses and non-profits. For example, the Nordic Investment Bank signed a €1bn Response Bond with BNP Paribas as main bank. The amount raised will support healthcare professionals in member countries. Other examples can be seen in , where BNL and BNP Paribas are extending Unica health- coverage to customers free of charge. In , the French network is distributing the €300bn state-guaranteed loan programme designed to help companies obtain credit. The deferral of loan repayments and unprecedented solutions for students and apprentices have also been rolled out. And BNP Paribas Personal Finance and have made new channels available to customers to provide them with the support Aalya GHOULI, BMCI (International Retail Banking), BNP Paribas, , March 2020 and information they need during the crisis. See testimonials on LinkedIn and (and on the next page). Business Continuity Plans have never employees and customers at the heart of thank all the support entities that work been so central to the concerns of their concerns. Even though this health behind the scenes to ensure our safety businesses. They were executed in record crisis has kept us physically away from our and comfort and who provide us with the time thanks to the mobilisation of our teams for a while, it will have helped us necessary tools to enable us, wherever teams and it demonstrated the extent reinforce bonds around an unfailing sense we are, at the “front“ or the “back” of the to which our organisations are flexible of solidarity as well as strengthening our bank, to continue working serenely with and how they put the safety of their cohesion and ability to adapt. I wish to the same level of commitment. ■

Sandrine DELMOTTE, ITG, BNP Paribas, France, April 2020 It was necessary to manage the twofold to continue working as they do in the difficulty of continuing operations and workplace. […] In this period of crisis, making services accessible as well as we are returning to the fundamentals Anne-Laure ENJOLRAS, Sophie PÉAN, Nizar ALACHBILI, making arrangements for everyone’s and everyone, in my opinion, sees their Cofounder and chairman of DOYOUNO, Founder and Manager, Chairman, Ténor Group, personal difficulties while keeping in role more concretely as well as its added France, April 2020 Les Jolis Cahiers, France, April 2020 contact, because today we are working value. [...] What I value is individual France, April 2020 remotely. The availability of IT and responsibility in the service of the I’m amazed at the quality of service given by BNP Paribas’ startup teams. applications had to be adapted so that common good and our profession. ■ I would like to thank the They are super available, committed and responsive; in short, real partners. I first contacted my bank on everyone could connect and work from BNP Paribas Lognes branch They have helped DOYOUNO since our initial round of fundraising and 18 March. Three days later, home. […] The IT Department has done and their entire team for their I strongly recommend them to all entrepreneurs! I had the first documents to fill out, a great deal to enable every employee efficient and kind support with all necessary explanations in these trying times. I also given over the phone. My application thank them for their support Robert VAN KERKHOFF, was processed quickly, and and flexibility during these BNP Paribas Securities Services (CIB), BNP Paribas, , April 2020 Bruno WEILL, less than a month later I signed six years of collaboration in an This morning we organised our first digital plenary session with almost Chief Group Representative for , BNP Paribas, China, March 2020 the documents for a state- environment of strong growth 500 employees from Luxembourg connected remotely. A year ago we organised We are entering a second phase have our own personal concerns guaranteed loan. I felt supported. with its ups and downs. I would a similar face-to-face event with the same number of participants. Sitting of the epidemic, and I cannot help but thanks to the strong support I’m an ‘ordinary’ customer, with also like to thank our advisors alone at home, in front of a screen, I addressed the same audience without but be impressed by the fantastic of our management we have been able an ‘ordinary’ business. But and the BNP Paribas Melun any physical presence and without being able to identify everyone’s non-verbal commitment and dedication of all to find solutions so that, together, we BNP Paribas is helping me get branch for believing in our feedback. The key messages have not changed: we are committed to our BNP Paribas Group teams in China. can provide the necessary support through this ‘extraordinary’ time. potential way back in 2013. employees and our customers and together we are taking action to improve I am not saying that it was easy then and services to our customers at these our organisation. ■ or that it is easy now. We each still times when they need them most. ■

MAY 2020 BNP PARIBAS AND THE COVID-19 CRISIS AN INTERNATIONAL AID PLAN FOR THE MEDICAL SECTOR AND THE MOST VULNERABLE

To face the challenges of the current the most disadvantaged and health and social emergency, the underprivileged around the world have BNP Paribas Group has been mobilised also been supported. In , the since the beginning of the Covid-19 Group helps food and in France, crisis. It has steadily expanded an the BNP Paribas Foundation supports emergency aid plan whose financial 14 major organisations helping the most commitment will ultimately reach disadvantaged, refugees, isolated €55 million. Local needs in 30 countries elderly people, women and children at have received priority, with the aid risk, and people with disabilities. plan focusing on hospitals, vulnerable In France, via Adie(2) and internationally populations and underprivileged through microfinance institutions, young people impacted by the crisis. the aid plan also helps to support In France, for example, BNP Paribas micro-businesses in difficulty. It also supported the “Everyone United Against supports social and solidarity economy the Virus” alliance launched by AP-HP(1), enterprises most impacted by the crisis. the Fondation de France and the Institut Finally, thanks to donations of IT Pasteur, as well as 12 regional hospitals equipment (nearly 2,500 computers), affected by Covid-19 and the public BNP Paribas is helping young people hospitals in the département of disadvantaged by the ‘digital divide’ Seine-Saint-Denis, where BNP Paribas to continue their education. All of these is the leading private-sector employer. programmes have also been expanded Hospitals have also benefited from thanks to voluntary work by Group Foundation Abbé Pierre the aid plan, and in many countries, employees. The Rescue & Recover Fund France, April 2020 such as Belgium, Italy, Spain, the was opened worldwide to aid CARE, the and the , French Red Cross and Doctors without which were especially hard hit, as Borders, where BNP Paribas matches Thanks to a very large donation from well as , Luxembourg, , and doubles its employees’ donations. BNP Paribas to top up its #RescueFund Portugal, India, Indonesia, , the Foundation Abbé Pierre has , Morocco, Tunisia, Ivory Coast (1) Assistance publique-Hôpitaux de . been able to considerably boost its (2) Association pour le droit à l’initiative économique and . Organisations helping (Association for the Right to Economic Initiative). programme for the most vulnerable by distributing hygiene kits and food

parcels, reaching out to those in need K100% BABEL_Logotype MONO_BLACK 15/10/2018 and finding emergency accommodation. The Foundation would like to thank the teams in the bank for this new initiative designed to help the most vulnerable.

Flavio RONZI, Secretary General, Italian Red Cross, Italy, March 2020

Amanda RAJKUMAR, Many thanks, on behalf of the entire Italian Red Cross, for your generous Human Resources, BNP Paribas, contribution, which will allow us to support our activities and the Italian , USA, April 2020 population which has to face the emergencies linked to the spread of the I am very proud of the BNP Paribas Group’s novel coronavirus. Through this gesture, we can feel the women and men of donation to support local communities BNP Paribas who have decided to support us as if they were here with us. and scientific research to deal with

this pandemic. ■ Design and publishing: BNP Paribas - Graphic design, layout production: Photo credits: Adobe Stock CARE OUR COMPANY PURPOSE*

We are at the service of our clients We are working with stakeholders and have adopted and the world we live in. social and environmental goals aligned with global standards such as the UN Sustainable Development BNP Paribas was formed by banks that have been Goals (SDGs) and those of the financial community such deeply embedded in the European and global economies as the Principles for Responsible Banking (PRB) and the over the last 200 years. They have adapted to the Principles for Responsible Investment (PRI). CHALLENGES AND STRATEGY AND challenges of their times and helped clients and other stakeholders during moments of great change. We ensure that ethics and our commitment to economic, ECOSYSTEMS PERFORMANCE social, civic and environmental responsibility are BNP Paribas’ mission is to contribute to responsible integrated into our business operations. This Anticipate and integrate Our strategic plan P. 2 6 and sustainable economy by financing and advising its commitment is reflected in our organisation and the the transformations of clients according to the highest ethical standards. procedures and policies governing our activities. our environment P. 6 A strategy in each BUSINESS LINES operating division P. 2 7 GOVERNANCE Message from We offer secure, sound and innovative financial We innovate in order to be a leader in sustainable Innovating Jean Lemierre P. 1 0 AND EXPERTISE P.48 A governance to define solutions to individuals, professional clients, corporates finance. to reinvent the customer and implement the Group’s Interview with experience P.28 and institutional investors while striving to address strategic direction Jean-Laurent Bonnafé P.12 P.18 Our diversified the fundamental challenges of today with regard We take action to support causes by bringing together Combining economic and integrated model: P.49 Shareholders to the environment, local development and social financial solutions, stakeholder partnerships, employer performance with a creating value and investors inclusion. and procurement initiatives, support for solidarity-based positive impact P.34 P.20 Domestic Markets projects, philanthropy, volunteering and intrapreneurship Undertaking responsible P.50 The Board of Directors drives the Group’s strategic We are engaged with our clients to create programmes. P.21 International actions for society P.40 direction Financial Services a better future. We are developing the tools to measure our P.52 The Executive P.22 Corporate & Committee implements We are mobilising resources that have environmental and social impact and we are focusing on Institutional Banking the Group’s strategy a positive impact. actions that involve all employees. P.23 Cooperation among the and oversees its activity Group’s business lines and risk P.54 Indicators and ratings At BNP Paribas, we want to be a long-term partner BNP Paribas, the Bank for a changing world. management for our clients. We want to support their projects, manage their investments and savings, and through insurance protect people, their goods and property.

Our employees aim to deliver services that have purpose and relevance for clients and the world around them. They do this most clearly through their daily mission in the company but also through corporate * Summarising the following documents created with the input of hundreds of employees: Our Vision and Mission (2015), Code of Conduct (2016) and Engagement volunteering. Manifesto (2018).

1 2019 INTEGRATED REPORT BNP PARIBAS: A LEADER in IN THE 198,816 71 AND A KEY INTERNATIONAL employees countries and territories 13,586 3,659 58,797 BANKING GROUP employees employees employees in Europe in Belgium in Luxembourg (excluding the four domestic markets(2)) Thanks to its international presence and regular and close collaboration among its businesses, the Group has the resources to support all clients— €180bn individuals, entrepreneurs, SMEs, corporate financing contributing to the energy transition large corporates, institutional investors and to sectors considered as and community organisations— contributing directly to the achievement of the with financing, investment, savings 17 Sustainable and protection solutions that help Development Goals make their projects a success. BNP Paribas holds key positions 57,233 13,995 employees in its three core operating divisions: employees in France Domestic Markets and International in North America 18,676 No.1 Financial Services for retail banking employees World’s Best Bank for and specialised financial services, 18,379 in Asia-Pacific Corporate Responsibility employees (, 2019) and Corporate & Institutional for corporate and institutional clients. 10,052 13.6 million employees digital customers(3) in Africa 517 3,922 employees out of nearly employees in the Middle East in South America 33 million customers in the Group’s retail-banking networks worldwide

€44.6bn €8.2bn €414bn €186bn €146bn Revenues Group share loans granted loans granted by loans granted by Domestic Markets International Financial by Corporate Banking Services (Corporate & Institutional Banking) 12.1% €309bn CET1(1) Ratio Liquidity reserve

(1) Common Equity Tier 1 (CET1). Solvency ratio. Capital Requirements Directive (CRD4). (2) France, Belgium, Italy and Luxembourg. (3) Active customers having made at least one connection per month within the following categories: individual, professional and / customers in the Domestic Markets retail-banking networks, customers of the international retail networks (Europe-Mediterranean and BancWest) and customers of digital banks (including in Germany, in Austria and Nickel). Figures as at 31/12/2019. Full-Time Equivalent (FTE) workforce.

2 3 2019 INTEGRATED REPORT CHALLENGES ANDENJEUX ET ECOSYSTEMSÉCOSYSTÈME

4 5 2019 INTEGRATED REPORT ECONOMIC AND ANTICIPATE AND INTEGRATE THE REGULATORY ISSUES TRANSFORMATIONS OF OUR ENVIRONMENT How to continue growing while adapting BNP Paribas regularly conducts detailed analyses of its ecosystem and of customer and stakeholder expectations. By comparing and contrasting internal and external to the current economic, monetary expectations regarding the Group, the materiality matrix is a valuable tool for and regulatory environment? identifying, understanding and prioritising our key issues, developing our strategy and structuring actions to address certain key challenges.

CHALLENGES

With moderate global growth in 2019, By supporting their customers’ projects, banks + Crucial issues long-term low (or even negative) interest rates are at the heart of economic growth and play Major issues and the emergence of new competitors, the an essential role in supporting corporate ImportantEnjeux importants issues Data privacy banking industry has been profoundly impacted. clients, particularly in times of crisis. To fulfil Ethics and In addition to these changes, there is an this mission and support customers over the compliance Climate change and energy transition increasing complexity of regulations long term while guaranteeing adherence to the characterised by higher capital requirements. highest standards of ethics and compliance,

Fair and inclusive This is contributing to the creation of an uneven banks must continue to improve their Governance Customer workplace satisfaction competitive playing field, particularly between operational efficiency and develop new drivers

Corporate economic Europe and the United States. Similarly, the of growth. As seen in the past, when faced with value Fair competitive environment in which European banks are an unfavourable economic situation or crisis, practices Digital transformation operating is marked by considerable uncertainty the European banking industry benefits from linked, for example, to the effects of the Covid-19 the scale and capacity to manage both crisis, environmental issues, the rise of investments and costs while at the same time Business continuity Operational protectionism and the United Kingdom leaving adopting some of the most advanced plan environmental impact the European Union. innovations. ■ Transparent practices

Responsible investments and financing Employment practices

ISSUES RESPONSES Accessibility for all to Human rights products Accès pourand servicestous Importance for external stakeholders aux produits et KEY ISSUES services Activate the drivers Diversify customer solutions of transformation Recent digital regulations help Macroeconomic Risk of reduction of Thanks to its diversified and integrated the development of new banking business model, BNP Paribas is able and insurance models and enrich environment international trade from to activate strong drivers of change the products and services we can Risk of financial instability linked protectionist measures by improving operational efficiency provide to customers. ‘Open Banking’ and the development of a platform-based Geopolitical risk to monetary policies, systemic Trade disputes between the for instance. This is facilitated by risks related to increased levels United States and China, for close working relationships among economy throughout the Group of indebtedness, uncertainty due are examples (see pages 28 to 30). SoutienSupport aux example, are likely to hinder the Group’s business lines and also communautés forlocales local to political and geopolitical issues global growth. enhanced by cooperation with others, communities and the potential economic effects such as startups and fintechs. of environmental and health risks. Continuously improve ethical EMERGING ISSUES commercial practices Protection Talent development Develop new services As our business activities continue of biodiversity Laws and regulations Evolving regulatory to generate additional income to grow, we also continue to strengthen applicable to financial our ethics and compliance culture. environments The diversity of BNP Paribas’ businesses institutions and the Group’s geographic footprint It is the essential foundation of the Responsible Growing complexity and Achats responsables Risk related to non-compliance (71 countries and territories) facilitates trust that our customers and partners procurement disparities in international with prevailing laws and the development of new growth drivers, place in us. regulations, especially regulations, regulatory inflation including more comprehensive services, in terms of investments. and distortion of competition. the development of new partnerships New regulations for digital and the strengthening of customer technologies. (see page 38) - franchises .

- Importance for BNP Paribas employees +

The materiality matrix prepared in December 2018 highlighted the importance and the perceptions of external stakeholders around one hundred issues thanks to Datamaran, an artificial-intelligence tool. Once the key issues were identified, 28% of BNP Paribas’ most senior managers then brought additional insight to this analysis by ranking the issues in order of priority. The materiality matrix thus identifies and ranks the 21 issues identified as the most significant for the Group.

6 7 2019 INTEGRATED REPORT DIGITAL CHALLENGE SOCIETAL CHALLENGE

How can new technologies help reinvent How to encourage responsible the customer experience? and inclusive growth that also respects the environment?

CHALLENGES CHALLENGES

Banks are looking for ways to meet the new of new technological and cyber-security risks. We are seeing the emergence of numerous, as major new crises emerge. These include needs and expectations of customers who This pushes banks to continue reinforcing fundamental challenges for the future: natural disasters and public-health crises are increasingly keen on simple, fast and defensive and security systems on a regular growing risks linked to the climate, geopolitics such as the Covid-19 pandemic, which will personalised digital solutions. These new habits basis in order to protect customer data and and public health; environmental preservation; significantly affect our society and the global and practices are transforming the very nature transactions while continuing to make use of greater imbalances between countries; and economy for the foreseeable future. At times of the customer relationship. Banks therefore digital innovation. By capitalising on digital rising social inequality. like these, financial institutions must mobilise need to combine the best of human resources transformation, greater cooperation with new Civil society these days expects large to support businesses and people and help and digital technology to offer customers the players such as startups and fintechs, companies to play an active role in researching them get through the crisis. In so doing, right products and services and support them and also new ways of working, the banking and designing eco-friendly and inclusive they directly align their actions with the 17 UN at each key moment in their lives. These industry is developing the solutions to solutions. By funding projects that meet Sustainable Development Goals (SDGs). innovations also make it possible, in the context transform operational models and encourage these expectations and supporting customers In 2019 BNP Paribas marked its commitment of the health crisis, to ensure business internal innovation. Digital technology therefore in their own transitions, banks drive economic to more sustainable growth, notably by continuity on a remote basis—and on a large offers multiple possibilities for customers development and enable social cohesion. signing the Principles for Responsible Banking, scale. On the other hand, it also means and employees alike, with the latter able And by listening to participants in their (see page 43). ■ companies are increasingly dependent on to develop new skills and devote more time ecosystem and maintaining a dialogue with technology and exposed to the emergence to advising customers. ■ stakeholders, banks can continuously adapt

ISSUES RESPONSES ISSUES RESPONSES

KEY ISSUES EMERGING ISSUES Make good use of Support for employees KEY ISSUES EMERGING ISSUES Finance can drive transformation Employees committed to equality new technologies and data New technologies provide numerous By developing innovative, attractive Thanks to the commitment of all The development of new technologies opportunities for different customer financing and investment solutions employees, BNP Paribas conducts internal Technological and Technological innovations is a powerful driver of innovative segments but they also have a major Climate-related issues Demographic risk for customers that enable them in turn and external programmes to combat cyber-security risks Technological innovation has solutions and new business models. effect on the lives of our employees. A range of issues have emerged The ageing population is a to make ‘positive-impact’ choices, inequality. For example, the Group The growing use of digital a profound impact on customer The use of data and innovative BNP Paribas supports employees so they with global warming. To name fundamental feature of many BNP Paribas contributes to a more actively promotes diversity and an can acquire new skills (or update existing inclusive, responsible economy with technology entails an needs and habits, BNP Paribas’ technology, in compliance with the only a few: the need to preserve countries. It is materially affecting inclusive environment (see page 45). ones) and thus continue to develop. regard to society and the environment ever-increasing dependence on business model, and the lives highest ethical standards and in ways biodiversity in terrestrial and not only the economy, but also of our employees. New players that guarantee the security of the data The Group’s ‘Digital, Data & Agile marine ecosystems, and more healthcare and retirement (see pages 34 to 36). This means focusing that same technology. The Academy’ is an example of this support our financing and investment on More inclusive banking models interdependence of systems, such as startups, fintechs, and transactions of customers and responsible action and behaviour spending, savings patterns and neobanks and neoinsurers partners, allows BNP Paribas’ business (see page 33). expected by customers, employees consumer behaviour. the growth sectors of the future. BNP Paribas is putting in place new the risk of hacking or technical solutions to foster the financial inclusion are contributing to a new lines to continue improving the customer and wider society. failure are key issues while the of women, young people, entrepreneurs competitive landscape that in experience (see pages 31 to 33). protection of customer data Social issues Supporting society and, in general, the underprivileged. and transactions are crucial. turn is generating fresh ways of Health issues Businesses must take into account In addition to its businesses supporting Innovative business models such as collaborating and encouraging Technology as a driver of Bacteriological or viral infections society’s expectations (ethics and customers, BNP Paribas is helping microfinance, for example, enable further innovation. potentially resistant to antibiotics, compliance when conducting to combat Covid-19 through voluntary BNP Paribas to contribute to more positive impact antivirals or other treatments may business, respect for human rights grants, which in mid-April 2020 equitable economic growth. Beyond improving the customer lead to preventive measures and and the environment, diversity, reached €55 million. This aid includes experience, new technologies are a economic disruption. inclusion, etc.). support for hospitals, the vulnerable powerful driver of social and and young people. environmental transformation. Nickel, which offers an inclusive-banking solution, and myImpact, which advises private-banking customers on long-term investment choices, are only two examples (see page 33).

8 9 2019 INTEGRATED REPORT Message from Jean Lemierre Chairman of the Board of Directors of BNP Paribas ”IN A PROFOUNDLY CHANGING

position to take on the major challenges of and China, as well as the United Kingdom WORLD, BNP PARIBAS IS our time, whether economic, technological, leaving the European Union, added to eco- environmental or social. nomic uncertainty. This instability came on SUPPORTING THE TRANSITION top of a constraining regulatory framework for AT THE FOREFRONT OF SUSTAINABLE European banks, whereas the United States FINANCE has a regulatory advantage in terms of finan- The current public-health crisis may orig- OF SOCIETY TO A MORE SUSTAINABLE cial investments. inate partly in reduced biodiversity. This Against this singular backdrop, financing only underscores the extent to which issues the economy through the capital markets is ECONOMIC MODEL.” related to the common good—the environ- proving to be increasingly complex. That is ment, social solidarity, public health—are why the European initiative to strengthen the essential. The banking industry is in a position integration of member states’ capital markets to play a major role in creating an economy is proving to be essential, even if progress is that is more respectful of the environment slow and difficult. and more inclusive by choosing how to tar- At a time when a low-interest-rate environ- get its financing and by designing investment efore analysing certain ment has become the norm, this initiative solutions and products that reconcile positive elements specific to 2019, could redirect abundant savings into areas impact and financial performance. It is above B we of course cannot ignore needing major investment such as the all by working with public authorities, NGOs, the unprecedented health energy transition and digital innovation, and businesses and civil society that we will be crisis regarding Covid-19. In the space of so increase banks’ capacity to finance the able to undertake the necessary transition to a few weeks it has affected every region projects and infrastructure at the heart of more responsible growth. in the world, with particularly damaging the real economy. This same philosophy inspires BNP Paribas’ human, social and economic consequences, Company Purpose, which sets out our collective the extent of which we cannot yet begin to MAINTAINING A SOUND INVESTMENT intent: ”We are at the service of our customers fathom. From the human perspective, this CAPABILITY and the world in which we live.” As part of our unprecedented crisis has had a devastating While the monetary policy of the European long-term vision, our Company Purpose under- impact on us all and on families and friends, Central Bank, which for several years has pins our desire to contribute to responsible and and the economic consequences will be sig- combined massive injections of liquidity with ”BNP Paribas has sustainable growth by financing the economy nificant and lasting. lower reference rates, has had a positive and advising customers in an ethical manner, effect on the solvency of countries, compa- adopted these and by allocating the resources required to Banks, which are essential in the life of an nies and households, it nevertheless forces have a positive impact on the world around us. economy, have a decisive role to play during banks to find new sources of revenue to ethical, ecological In a context made more difficult by the health this crisis by ensuring strong support for cus- maintain their capacity to invest and grow. and economic crisis we are experiencing, 2020 tomers currently facing great difficulty and by In this respect, the platform economy, which and social will continue to see greater importance given helping them, as best they can, along the long consists of creating a broad ecosystem of requirements with to the challenges relating to responsibility, and and difficult path to collective reconstruction. partners to create innovative services via a which society has taken up. BNP Paribas has single point of access, has significant growth a view to creating adopted these ethical, ecological and social CREATING IN EUROPE THE CONDITIONS potential. Implementing these new business requirements with a view to creating long- FOR A GLOBAL RECOVERY models is aided by BNP Paribas’ diversified long-term value for term value for all stakeholders. To this end, Before the current crisis partly reshaped the and integrated business model, which has our Board of Directors has the essential task challenges now facing the world, we experi- demonstrated its pertinence. all its stakeholders.” of guaranteeing the continuity of the strategic enced a mixed 2019 regarding the economy, Thanks to the complementarity of our busi- focus chosen by the Group while being able which was marked by moderate growth ness lines and our financial solidity, we have to rely on solid, balanced governance and globally and persistent trade and geopoliti- the stability necessary to benefit fully from the principles of ethics and responsibility cal tensions. economic changes underway. Our model is applied across all our business lines, functions The emergence of protectionist tendencies, built on a vigorous ethics and compliance and regions. ■ which resulted in the exacerbation of trade- policy that underpins the trust of our custom- related rivalries between the United States ers and shareholders. It puts us in the right Remarks dated May 2020.

10 11 2019 INTEGRATED REPORT Interview with Jean-Laurent Bonnafé Director and Chief Executive Officer of BNP Paribas ”OUR STRATEGY ENABLES

US TO COPE WITH RISKS financial strength and investment capacity. Beyond the health crisis that was Only companies that are able to invest will suddenly imposed on everyone, does continue to grow. These good results owe a the pandemic that is disrupting the first AND TRANSFORM OURSELVES great deal to the engagement of our teams, months of 2020 also carry the seeds of a who throughout the year showed commit- severe economic crisis. How do you feel ment, innovation and responsibility, and also about this situation? IN A FAST-CHANGING WORLD.” to their efforts to continue reining in costs. At the time of this interview we have been expe- Thanks to this good performance we are riencing an unprecedented crisis because of seeing the tangible effects of the €2.7 billion the Covid-19 pandemic that is destabilising the What is your view of BNP Paribas’ 2019 we invested in our digital transformation. entire world. Along with this exceptional health results? The expansion and maturity of our financial crisis there has been a succession of market At the Group level, 2019 was a very satisfactory solutions, which combine branch banking, shocks, and a recession is now almost inevi- year, with strong performances in our three ‘neobanking’ and new service platforms, table. It will be global as many countries have operating divisions. Our Net Banking Income rose are enabling us to meet changing customer had no choice but to opt for very strict lockdown by 5% to €44.6 billion and our results revealed habits and behaviour, and to serve new kinds strategies that are paralysing the world econ- profits of €8.2 billion, up 8.6% compared to 2018. of customers. omy. As banking is an essential activity in this This performance reflects very good business unprecedented situation, banks have been at the momentum and the transformation underway in front line during the health crisis. They will of all our businesses. It underlines the strength and course be at the forefront of economic recon- pertinence of our diversified, integrated business struction. I would like to take this opportunity to model in absorbing risk better and in offering a pay tribute to the tremendous work of our teams. long-term support to clients that draws on They have worked tirelessly since the beginning expertise in all our geographic regions. This busi- of the crisis to ensure BNP Paribas continues to ness model, which facilitates cross-fertilisation serve clients by putting in place flexible solutions right across the Group, underpins our ability to to meet their needs. Examples include a close create value in an ever-changing economic, tech- “The Group’s very dialogue with our professional and small busi- nological, regulatory and social environment. ness clients to speed up the handling of the most sound financial urgent issues, rolling out cash-flow solutions to At the end of 2019 our Corporate and Institu- meet companies’ short-term funding needs, tional Banking activity posted robust growth strength, together postponing repayments and rescheduling loans. as a result of stronger positions in certain, As a company providing services, all the actions targeted client segments. Similarly, and with the resilience we have taken have focused on helping clients to despite persistently low or even negative of its diversified, overcome the crisis. interest rates, revenues from our Domestic Given the emergency, our Group also quickly took Markets division, which brings together most integrated business steps, through its businesses and subsidiaries in of our retail-banking activities in Europe, are more than 30 countries, to activate an aid plan of growing. Lastly, our International Financial model, are major €55 million. The aid was distributed according to Services division, which includes our insur- three key priorities: hospitals and research; the ance and consumer-finance activities, saw assets in weathering most vulnerable among us; and disadvantaged the sustained growth of previous years. young people. BNP Paribas thus reaffirmed its position as this crisis.” This crisis has tested the ability of companies the leading bank in the eurozone and consol- and their employees to be part of a collective idated its position as a leading international effort undertaken by society as a whole. The player. The Group also stands out as Europe’s banking sector has met this challenge, and leading bank for corporates. All our operat- BNP Paribas employees were particularly nota- ing ratios, including a CET1 ratio of 12.1% and ble for their commitment to customers and the a liquidity reserve of €309 billion at the end community. This is a great source of pride for me of 2019, illustrate BNP Paribas’ considerable and these values will be invaluable as we ...face

12 13 2019 INTEGRATED REPORT ... future challenges. In the long term, we will finance to enhanced digital experiences in per- What is your outlook for 2020 need the firm commitment of everyone—cen- sonal banking and Nickel, our neobank accessible and beyond? tral banks, governments, international organ- either online or via tobacconist outlets. By the end of the 2020 plan we will have isations and banks—to overcome this ordeal strengthened our internal control and com- and create the conditions that enable economic BNP Paribas’ Company Purpose, pliance systems, greatly improved our opera- recovery. This is the main challenge facing us adopted at the end of 2019, underlines tional efficiency, and reinvented our customer in the coming months: to be fully mobilised the Group’s ambition to be a leader experience. We combine the best of digital when the health emergency is behind us, and in sustainable finance. How does technology and human resources to offer a to continue our mission: to advise, support this translate in practice? complete range of solutions to meet customer and finance. We will not only have to help our Our overall objective, which is based on the needs and habits. We intend to continue a clients rebound and start again on a sound conviction that no one really wins in a world transformation built on digitalisation and footing. We will also have to continue helping that loses, is to combine financial perfor- sustainable development. In this way we are them with their own transitions, whether dig- mance with a positive impact on society. Our resolutely preparing the bank of tomorrow, in ital, industrial or organisational, so they can current commitments are resolutely focused which our range of services will be extended meet the economic, environmental and social on financing the real economy and creating to platforms that aggregate and offer multi- challenges of our time. sustainable value. What we call ‘company pur- ple internal and external solutions. Deepening performance, which is the foundation of our pose’ at BNP Paribas is the synthesis of three this strategy implies continuing investments Is this multifaceted crisis likely to prompt capacity to invest; pursuing and accelerating texts prepared over the last five years with the in digitalisation, data and the development of you to review part of your strategy? the transformation of the customer experience involvement of a large number of employees. ever more flexible working methods and in col- The Group’s very sound financial strength, through digital technology so as to expand Each text deals with fundamental subjects: laboration with others. together with the resilience of its diversified, our value proposition; and positioning our- our mission, our ethics, and our commitment to The decade ahead invites us to seek every integrated business model, are major assets in selves as a leader in sustainable finance and civil society. Our Company Purpose is therefore means of continuing to serve our customers, weathering this crisis. They give us the stability developing our contribution to society by taking deeply rooted in what we do. Our ambition to and, more broadly, society as a whole, in a use- we need to follow our key strategic direction part in the emergence of a more responsible contribute to sustainable growth is built on a ful way. One of the lessons of the 2020 health over the long term. We aim to move forward, economic-growth model. deeply transformational process. As a result, crisis is that collective risks are not an abstract to the benefit of all stakeholders, by focusing Under the guidance of the Board of Directors, starting in 2011, we incorporated social and threat. They apply to many areas other than on three key pillars: guaranteeing financial which lays down overall strategic directions, environmental factors into our strategy. The health, such as the climate, biodiversity, access BNP Paribas’ Executive Committee is commit- Group is notably combating climate change to water and education. The bank must play its ted to implementing this long-term vision. It by making a significant contribution to the part fully in the search for the common good, allows us to deal with risks while seizing oppor- financing of renewable energies: €15.9 billion speeding up its support for the ecological tunities as they arise. This approach delivers in 2019, making BNP Paribas the European transition and mobilising the resources to be results: our business model is an effective asset leader. In addition, we stopped financing new more inclusive, especially with regard to the in serving global customer franchises across all coal-fired power-plant projects in 2017 and we most vulnerable. We will make every effort to our businesses and geographic regions. These also stopped lending to clients who specialise harness the Group’s expertise to propose inno- developments, in the form of cross-fertilisation, in non-conventional hydrocarbons. In 2019 and vative, sustainable and inclusive solutions. ■ now account for about 20% of our total revenues. in 2020, we committed to no longer have any (1) “We are integrating 2020 is the final year of our 2017-2020 stra- client whose business relates to thermal coal . Interview given in May 2020. tegic plan, which marks the success of the More generally, we are integrating ESG criteria(2) ESG criteria into Group’s digital transformation. Its momentum into all our operational processes and devel- has enabled us to reinvent customer journeys oping the solutions and instruments that make all our operational and design new services that place us at the us a leader in sustainable finance worldwide. same level as some big digital players and Our Company Engagement department coor- processes.” with whom we are increasingly cooperating. dinates the efforts of all activities promoting Over the past three years, we have harnessed the environment and social inclusion, with a the Group’s energy in all businesses, from special focus on youth, social entrepreneurship (1) 2030 target in the OECD and 2040 target in the rest of the world. automation in mark et activities and consumer and local communities. (2) Environmental, Social and Governance criteria.

14 15 2019 INTEGRATED REPORT BUSINESS LINES AND EXPERTISE

16 17 2019 INTEGRATED REPORT OUR DIVERSIFIED AND INTEGRATED MODEL: CREATING VALUE In serving our customers and the world in which we operate, we support transitions in society by providing expertise and by contributing to financing the economy. We create value thanks to our diversified and integrated business model based on the diversification of risks and cooperation between business lines. Based on three pillars, our strategic plan lays down how we work together in order to meet customer requirements through ever-greater personalisation and to help customers move towards ECONOMIC AND DIGITAL SOCIETAL sustainable solutions. We therefore contribute to a positive impact for stakeholders REGULATORY ISSUES CHALLENGE CHALLENGE and society as a whole.

Our assets Our diversified and integrated model Our solutions Our value creation for all stakeholders : customers, shareholders and investors, employees, partners A European Group and suppliers, local government, regional areas and civil society with global reach operating in 71 countries and territories DOMESTIC MARKETS (DM)(1) SUPPORT PROMOTING USEFUL ENCOURAGING DEVELOPPING Committed employees 65,579 employees 198,816 people worldwide INNOVATION FOR OUR SUSTAINABLE GROWTH OUR CONTRIBUTION Revenues: €15.8bn CLIENTS FOR THE ECONOMY TO SOCIETY A sound financial individuals, entrepreneurs, SMEs, ADVICE large companies, institutional clients, structure with €111.8bn community organisations in equity 13.6m digital customers €806bn in customer loans €5.9bn in taxes paid Broad diversification FINANCING in the Group’s retail-banking (+5.2% versus 2018) by the Group worldwide of risks by business networks (2) €1,123bn assets under €1.9bn in investments line, geography and sector INTERNATIONAL FINANCIAL SERVICES (IFS)(1) 97m monthly connections management by BNP Paribas and financing granted to social INVESTMENTS to mobile applications by , enterprises Cooperation between 78,629 employees customers of DM networks BNP Paribas Cardif and 310 collective agreements business lines, at the heart Revenues: €17.2bn or digital banks BNP Paribas Real Estate Services of the Group’s momentum signed across the Group 150 projects using artificial €8.2bn in net income SAVINGS Over 450,000 hours intelligence are already Group share A culture of technological CORPORATE & INSTITUTIONAL dedicated to solidarity operational or in development innovation at the service BANKING (CIB) €10.6bn of procurement initiatives by employees at IFS of our clients at Group level 34,985 employees PROTECTION Over 21m electronic Revenues: €12.1bn €6.2bn in signed orders processed for customers Sustainability-Linked Loans at Global Markets (CIB)

Our 2017-2020 strategic plan (see page 26)

DIGITAL FINANCIAL COMPANY PERFORMANCE ENGAGEMENT TRANSFORMATION (1) Domestic Markets and International Financial Services together form Retail Banking & Services. (2) Active clients having made at least one connection a month for individual, professional and Wealth Management/Private Banking customers of DM retail-banking networks, international retail-banking network customers (Europe-Mediterranean and BancWest) and customers of digital banks (including Germany, Austria and Nickel). Figures as at 31/12/2019. Full-Time Equivalent (FTE) workforce.

18 19 2019 INTEGRATED REPORT DOMESTIC MARKETS INTERNATIONAL FINANCIAL SERVICES

The Domestic Markets (DM) operating division innovates to serve The International Financial Services (IFS) division optimises the customer customers better and anticipate changes in their habits. experience through a diversified range of high value-added services DM’s retail-banking networks in the eurozone and specialised and the acceleration of both its digital transformation and partnership businesses are reinventing the customer experience. They design strategy. As IFS steps up its development in high-growth regions products and services tailored to customer needs in order to support of the world, its international retail-banking networks and specialised them each day and help them realise their projects. financial services combine economic performance with social utility.

OUR EXPERTISE OUR EXPERTISE

OUR DOMESTIC MARKETS BNP Paribas Leasing Solutions BNP Paribas Personal Finance BNP Paribas Wealth Management development to property management, IN THE EUROZONE COUNTRIES BNP Paribas Leasing Solutions offers BNP Paribas Personal Finance is the leading Designated the world’s best transactions (sales, investment, leasing), corporates and small business clients consumer credit specialist in Europe. (Global Finance), BNP Paribas Wealth consultancy, valuation and investment leasing and finance solutions for their Through its commercial brands, it offers a Management supports all of the wealth management. French Retail Banking (FRB): equipments. Through a variety of commercial full range of consumer loans through a and financial needs of wealthy individuals, Operating in 32 countries nearly 7.5 million customers*. channels (industrial partners, companies, variety of distribution channels. BNP Paribas family shareholders and entrepreneurs. BNP Paribas in Belgium: retail-banking networks), BNP Paribas Personal Finance is developing an active BNP Paribas Wealth Management offers new International Retail Banking 3.5 million customers*. Leasing Solutions specialises in logistics partnership strategy with large retailers, solutions to help its clients build their International Retail Banking (IRB) brings BNL in Italy: 2.8 million customers*. and technological equipment. The company car manufacturers and distributors, investment strategy, notably by facilitating together retail- and commercial-banking BGL BNP Paribas in Luxembourg: has integrated the circular economy in e-merchants and other financial institutions. access to sustainable investments and businesses outside the eurozone, in the 183,000 customers*. its business activities. The company is also involved in financial investments in unlisted companies. United States, China, Central and Eastern * Individual, professional, corporate, institutional and non-profit clients. €14.1bn in new contracts in 2019, education and e-inclusion. €393bn of assets under management Europe, and Africa. Through its compared to €13.5bn in 2018 Best securitisation issuer in Europe services spanning retail banking, wealth Through its four domestic markets, (GlobalCapital European Securitization BNP Paribas Asset Management management and corporate banking, BNP Paribas has an extensive network of BNP Paribas Personal Investors Awards) BNP Paribas Asset Management offers IRB offers a wide range of financial and experts and offers customers —individuals, In addition to its traditional online quality investment solutions to individuals, non-financial services. professional clients, corporates, institutions brokerage business, BNP Paribas Personal BNP Paribas Cardif companies and institutional investors Operating in 15 countries and non-profit organisations— a wide Investors offers its individual customers Thanks to a unique partnership-based thanks to a wide range of investment (outside the eurozone) range of products and services, including a wide range of banking, credit and savings business model, BNP Paribas Cardif is the expertise based on four asset- financing and savings solutions. An services. This business also provides world leader in creditor protection insurance management domains: equities, bonds, ecosystem of partners bolsters these independent financial advisors and asset and a major actor in financing the economy. private debt and real assets, MAQS*. services with solutions that go beyond managers with innovative digital services. It plays a key role in the daily lives of its The energy transition, environmental banking (see the example of Telepass, 3.7 million individual customers individual and professional policyholders, protection, and the promotion of equality and page 43). The four retail-banking networks digital and ‘human’ worlds. They are helping them to realise their projects while inclusive growth are all at the heart of its in Europe place innovation and security at thus reinventing customer journeys Nickel protecting them against the hazards of life. strategy whose priority is to deliver the centre of their business model to adapt to provide customers with flexible, Nickel is the first branchless bank As a socially-engaged company, BNP Paribas long-term, sustainable returns to clients. their products and services to customers’ personalised solutions they can use account in France and the first French Cardif is working to make insurance more * Multi-Asset, Quantitative and Solutions neobank. It has no minimum-income new habits and deliver the best of the autonomously. accessible. No.1 in France in terms of certified conditions and offers banking solutions No. 1 private bank in France and Belgium Record pre-tax income in 2019: multiplied SRI** assets under management accessible to everyone either online (Greenwich Share Leaders) by three in 10 years (French State SRI label) or via a tobacconist outlet. **Socially Responsible Investment. 1.5m accounts (+33% in 1 year) OUR 4 SPECIALISED BUSINESSES BNP Paribas Real Estate Services OUR FIGURES OUR FIGURES Arval Through its local offices in Europe, its network of alliances and its Arval provides companies, their employees platforms, and taking into account and individuals with an ecosystem of digital environmental considerations, 65,579 solutions, services and tools to optimise their 78,629 employees employees BNP Paribas Real Estate Services, a mobility in line with current societal changes, European leader in real estate services, including respect for the environment and provides clients (institutional investors, growth of the user economy. corporates, local authorities, individuals, €15,814m A confirmed leadership position in its €17,183m in revenues in revenues etc.) with services ranging from property 27-country scope Figures as at 31/12/2019. Figures as at 31/12/2019. Full-Time Equivalent (FTE) workforce. Full-Time Equivalent (FTE) workforce.

20 21 2019 INTEGRATED REPORT CORPORATE & INSTITUTIONAL BANKING Strong cooperation among the Group’s business lines Thanks to a close and regular collaboration among the three operating divisions that facilitates Corporate & Institutional Banking (CIB) offers customised a coordinated and comprehensive approach, BNP Paribas provides clients with a diversified financial solutions for corporate and institutional clients and complementary expertise enabling them to receive ongoing support for their projects. that include capital-markets issuance, financing, The three operating divisions are developing their collaboration to make it possible, for and hedging. By matching the financing needs of companies example, to extend CIB’s product offering to corporate clients in DM and IFS, and vice versa. with the investment opportunities sought by institutional investors, its financial solutions create value while contributing to the financing of the economy. Supporting our clients’ growth Facilitating the creation of new solutions More than With no fewer than 220 business centres in The strong cooperation between BNP Paribas’ businesses 60 countries, the “One Bank” initiative is a concrete and operating divisions facilitates the sharing and €2.8bn example of the ongoing support made possible by development of innovative solutions. In 2019, for in revenues per year OUR EXPERTISE the Group’s diversified and integrated business model. example, BNP Paribas Cardif and Birdee, a subsidiary is generated by DM and IFS from clients One Bank encourages and promotes collaboration of Gambit Financial Solutions—acquired in 2017 by managed by CIB The three Corporate & Institutional Global Markets insurance companies, pension funds and between Corporate Banking teams with a view BNP Paribas Asset Management—launched Banking (CIB) businesses are present in A specialist in capital-markets investment sovereign wealth funds around the world to supporting and advising corporate clients regarding ”Birdee Vie”, an online life-insurance solution based three regions: EMEA (Europe, Middle East, and financing, Global Markets offers a and ensures the smooth handling of their their international-development projects. on a robo-advisor and aimed at individuals in France. Africa), the Americas and APAC broad range of hedging, financing and transactions. As such, the business helps Developing new drivers of growth Accelerating improvements in our More than (Asia-Pacific). market-intelligence products and services clients to expand their investment BNP Paribas’ business model makes it possible operational efficiency across all asset classes to a wide range of opportunities, manage risk and improve operating efficiency. to identify and meet the needs of new client profiles. Strengthened cooperation between the €500m Corporate Banking professional clients operating in is generated by CIB In 2019, the new organisation of the “Private Banking Group’s business lines also contributed to the Thanks to its worldwide presence, international markets. European Fund Administrator from clients managed & Wealth Management” BNL division provides reduction in the Group’s cost/income ratio in 2019 Corporate Banking provides sophisticated Currency Derivatives House of the Year of the Year (Funds Europe Awards 2019 by DM and IFS an enhanced customer experience with a wide range (down 1.7 points compared to 2018), thanks in and diversified expertise in financing, cash (Risk Awards 2020) – November 2019) management and financial advisory of products and services based, for example, on particular to cost savings achieved as part of the services. To better anticipate the needs Securities Services strengthened cooperation with CIB and with 2020 strategic plan (€1.8 billion in savings by other partners. the end of 2019). of its clients, the business combines BNP Paribas Securities Services is the global expertise and local presence. world’s fifth-largest securities custodian Best Bank for for the and administrator. It holds and administers third consecutive year (Global Finance) the assets of banks, investment managers, Eurobond House of the Year and FX Derivatives House of the Year Anticipating and controlling risks (IFR Awards 2019) for clients and the economy

Our clients can rely on the which the Group may be exposed. In this way, development and customer protection, strength of our balance sheet it protects itself against major risks (such the more the Group can innovate and enhance and our expertise in risk as those associated with macroeconomic the customer experience. This in turn conditions or credit or market risk) and reinforces the trust placed in us by our management and compliance emerging risks such as those associated with customers and partners. ■ to finance their projects and meet climate and public health (see pages 6 to 9). their investment needs, while At the heart of the Group’s model, this system guarding against associated risks is based on a defence framework deployed such as excessive debt. at all levels and directly linked to the businesses and a risk-diversification strategy 39 pb* in order to monitor and support BNP Paribas’ cost of risk in 2019, one of the best With a determination to comply fully with in the sector transformation. The more risks are managed, OUR FIGURES all existing regulations, BNP Paribas * Cost of risk reported on outstanding customer loans, controlled and reflect the Group’s business at the beginning of the year (expressed in basis points). has set up an internal-control system in line with the Group’s strategic plan, the environment in which it operates as Permanent control Periodic control 34,985 well as with its values and risk culture. employees Based on six Group-wide functions —LEGAL, 1st line of defence 2nd line of defence 3rd line of defence Compliance, RISK, Tax, Finance, General Operating entities: business Functions: LEGAL, Compliance, General Inspection Inspection— as well as on rigorous policies lines and functions RISK, Tax, and Finance €12,080m and procedures, the internal-control system in revenues assesses and manages all types of risk to For more information on internal control, refer to the Universal Registration Document, p.99. Figures as at 31/12/2019. Full-Time Equivalent (FTE) workforce.

22 23 2019 INTEGRATED REPORT STRATEGY AND PERFORMANCE

24 25 2019 INTEGRATED REPORT OUR STRATEGIC PLAN A strategy in each operating division

Drawing on its diversified and integrated business model, BNP Paribas BNP Paribas’ three operating divisions are implementing the 2017-2020 strategic plan is implementing its digital transformation and undertaking differentiated development in specific ways within their respective areas. By focusing on the digital transformation strategies in its operating divisions in order to strengthen its position as a major of products and services and the continuous enrichment of client franchises within European bank and contribute to responsible, sustainable growth. By doing so, the Group’s integrated business model, they are all improving operational efficiency BNP Paribas is building the bank of tomorrow for its stakeholders—clients, and the customer experience. At the same time, in response to today’s environmental shareholders and investors, employees, partners and suppliers, public authorities, and social challenges, the Group’s business lines are offering solutions to customers civil society—and for society as a whole. and partners to help with their own ecological transitions and increase their positive impact on society.

AMBITION 2020 DOMESTIC INTERNATIONAL CORPORATE & INSTITUTIONAL An ambitious transformation plan based on three pillars… MARKETS FINANCIAL SERVICES BANKING Domestic Markets (DM) places innovation The International Financial Services (IFS) Corporate & Institutional Banking (CIB) and security at the heart of its strategy in businesses are consolidating their leading is consolidating its leading position in Europe DIGITAL FINANCIAL COMPANY order to adapt solutions to customers’ new positions at the heart of the Group’s integrated in corporate banking with the intensification TRANSFORMATION PERFORMANCE ENGAGEMENT habits and support them each day in realising business model. They focus on growth based on of growth plans for targeted regions and their projects. By using the best of both digital best-in-class solutions, digital platforms, the success of its Capital Markets platform. and human resources, the Domestic Markets partnerships and distribution networks. With It also continues to strengthen its solutions operating division is reinventing customer ‘Plug and Play’ in Station F and Bivwak!, IFS for institutional investors. CIB capitalises …implemented through multiple drivers of transformation… journeys and offering customers seamless, capitalises on two complementary systems— on its international presence with targeted personalised solutions. DM is strengthening one internal and the other external—to build initiatives in Asia-Pacific and the Americas, its positive impact, notably by helping new, flexible customer journeys and promote notably through strengthened cooperation ■ Implementing new ■ Changing and transforming ■ Developing more customer journeys the operating model digital-working methods customers in their energy transitions, the development of quality products and within the Group. encouraging banking inclusion and supporting services that meet customer needs and the ■ ■ ■ Key drivers of growth: Optimising and securing Adapting and sharing Deploying a positive- women’s entrepreneurship. company’s challenges. the use of data IT systems impact culture Digitalisation of customer journeys Key drivers of growth: Key drivers of growth: Active cooperation with fintechs and Innovation and security Support for the development development of products and services Reinventing the customer experience of partnerships Improvement in operational efficiency …translated into concrete goals. and omnichannel systems Diversification of the product range and client service Personalisation of services Continued development of self-care Strengthening of customer franchises AMBITION 1 AMBITION 2 AMBITION 3 Supporting customers beyond and 100% digital solutions within the Group’s integrated business PROMOTING USEFUL INNOVATION ENCOURAGING SUSTAINABLE DEVELOPING OUR CONTRIBUTION model FOR OUR CLIENTS GROWTH IN THE ECONOMY TO SOCIETY banking services Optimisation of customer service Supporting the energy transition in all businesses Support for the transformation of our clients Development of responsible and of businesses and clients Implement new customer journeys Consolidate our financial Ensure best practice in ethics Supporting inclusive banking sustainable solutions for the ecological to meet the expanded range of needs performance and expand and compliance and user habits our activities transition Implement a fair and responsible Develop simple, useful and secure Support our clients’ growth HR policy for the Group’s employees services for our clients and strengthen our international Adopt commitments supporting presence Strengthen operational efficiency the energy transition to provide a responsive, secure answer Generate a positive impact through Promote a culture of diversity, to client needs our products and solutions equality and inclusion in our business Lead the transformation Consolidate our position as a major lines and society of our business lines and strengthen player in sustainable finance OUR 2020 HR POLICY Develop our support to regions our teams’ agility and ability Build the solutions of tomorrow and local communities through cultural To support the deployment of its medium-term strategic plan, with their plans within the Group are essential for BNP Paribas. to innovate with our partners, startups, and solidarity-based initiatives BNP Paribas has defined a Human Resources strategy for all The Group’s ‘employer promise’, based on four pillars—a sustainable entrepreneurs and intrapreneurs operating divisions, business lines and functions. Gaining and responsible global leader, a learning company, an open- enhanced knowledge of its employees and relying on HR data minded group, and the place to work differently—makes it are at the heart of the Group’s strategy to offer dynamic, consistent and attractive with regard to current employees whose Help our clients move toward sustainable solutions and increase our positive impact on society personalised career-management—and thus enrich the employee loyalty must be earned as well as to future employees who #POSITIVEBANKING experience. Anticipating individual needs and supporting employees need to be won over.

26 27 2019 INTEGRATED REPORT INNOVATING TO REINVENT THE CUSTOMER Useful innovation EXPERIENCE

In order to anticipate new customer needs and habits, BNP Paribas continues pen Banking offers a new to concentrate its investments O approach to co-construction on digital transformation, and is having a profound impact on the business data, and harnessing the best models and organisation of the banking and technology. The Group insurance industries. Driven in particular by Europe’s Payment Services Directive (PSD2), is constantly rolling out the move to Open Banking is encouraging innovative products, services financial institutions to open up their infor- mation systems to authorised Third Party and new “customer journeys” Providers (TPPs). while ensuring high levels TOWARDS A NEW BANKING MODEL of security regarding The multitude of Open Banking initiatives customer data and financial launched by BNP Paribas’ businesses reflects transactions. It is in this the Group’s ambition to develop new banking models that enrich the customer experience, context that BNP Paribas offer more solutions in a simple, secure way, is expanding its teams’ and ensure the smoothest possible customer journey from beginning to end. This involves capacity for innovation and three different approaches: the development “agile working”. of a bank ”as a platform” (building and running platforms to develop and offer new services The aim: build the bank Open Banking: ever more that go beyond financial products); a bank of tomorrow today. ”as a service” (offering new banking services using third-party distributors); and a ”mar- solutions for customers ketplace” concept (connecting distributors or product manufacturers with customers). and partners These represent three models for the future that together offer more solutions meeting the expectations of different types of customers BNP Paribas is at the forefront of (individuals, professionals and companies). Open Innovation and Open Banking, DIDID: OPEN BANKING FOR INDIVIDUAL and has rolled out a number of platforms CUSTOMERS across its business lines. Among them, In 2019 BNP Paribas Fortis launched Didid, an Didid and the API Store are examples application enabling everyone—not only the of this new approach and offer a wider bank’s customers—to make their projects a range of services to customers reality. Users can outline their wishes, share and partners. More. them with others, save so as to finance them...

28 29 2019 INTEGRATED REPORT ... Obtain a loan in less CENTRIC than 20 minutes a range of digital services and, finally, have them come true. Everyone with a smartphone can connect their accounts at BNP Paribas for corporate and Fortis, Hello bank! or Fintro to the app and Useful innovation To offer customers a institutional clients ask families and friends to help them finan- smoother, more comprehensive cially. This information-sharing is made pos- customer experience, To enable corporate and institutional sible by PSD2 and the opening of APIs(1). This BNP Paribas Personal Finance clients to focus on risk management Open Banking approach allows BNP Paribas now lets customers simulate and optimise business transactions and Fortis to offer a variety of services to custom- and obtain a loan using their liquidity, BNP Paribas launched Centric. ers via an ecosystem of financial and non-fi- smartphones. In practical terms, This integrated, flexible digital platform nancial service providers. Created following customers select the product allows international customers in an international hackathon(2) organised by they want (a cash loan, a sofa, particular to manage cash flow easily BNP Paribas, Didid is an example of the oppor- a car…), conduct a simulation, BNP Paribas Personal Finance is and offers instant, customisable access tunities presented by Open Banking and of the receive loan approval and helping 26 of its locations around to dedicated post-trade services. As a close collaboration developed with startups then sign up in complete security. the world to set up this programme result, the platform is growing by an and fintechs using Open Innovation. “Our Laurent Herbillon This entire, intuitive process and 22 had made this digital average of 75% per year. By the end ability to conduct Open Innovation enables us “We are moving is Head of Open Innovation can be completed in a few experience available to customers of 2019, it served nearly 12,000 corporate at IFS and in charge of to meet our goal of improving the customer towards a platform minutes anytime and anywhere. by the end of 2019. ■ clients and had 106,000 users. ■ experience,” says Michael Anseeuw, Head of developing industrial Retail Banking at BNP Paribas Fortis. economy of financial cooperation with stakeholders of our innovation ecosystem and insurance (startups, investment funds, THE API STORE: EXTENSIVE ACCESS Making mobility easier Supporting startups and entrepreneurs universities, etc.). He has TO THE GROUP’S SOLUTIONS services.” experience in strategy, with Telepass Pay X In 2019, thanks to close collaboration with Various financing initiatives and accelerator programmes have been set up in consumer marketing and startups and fintechs, BNP Paribas launched the Group to encourage innovative, transformational solutions. The venture capital digital transformation. To encourage individual customers’ its API Store, the first Group-wide market- fund Opera Tech Ventures, managed by BNP Paribas Capital Partners (the management mobility and help with fast and place. Its aim is to offer partners and cus- specialist at BNP Paribas Asset Management focusing on multi-manager selection) secure payment of related services tomers access to facilitate the integration brings together several BNP Paribas businesses to invest in fintechs. Other specialised such as tolls, fuel or parking, BNL of API solutions ”as a product” into their own ”New service offerings such as Didid, the API Store and Agronomist investment funds have been created in a number of the Group’s business lines, such launched Telepass Pay X. The solution services. This makes it possible, for example, (see page 37) are initiatives that illustrate the profound transformation as C. Entrepreneurs by BNP Paribas Cardif, which also invests to help companies obtain combines in a single mobile app, and to initiate payments or access a customer’s of the banking and insurance industry and in which BNP Paribas is fully involved. financing during the most advanced stages of their development. In addition, since 2016, using a prepaid format, the mobility- transaction history (with the agreement of In particular, the ”platform economy” makes it possible to provide services BNP Paribas Principal Investments has set aside €100m of equity financing destined related services of Telepass and the the customer). Thanks to the APIs, informa- to customers via applications in which it is no longer necessary to own some for startups working on the energy transition. More than 50% of this amount has payment services of Telepass Pay. tion-sharing is standardised and simplified, or all of the underlying assets (online sales, mobility services, hospitality, etc.). already been invested. ■ Customers also benefit from a BNL and security requirements are met. Appli- These platforms connect consumer communities to multiple product and service current account and . cations and websites can host third-party providers by means of a smooth, seamless customer journey. You do not need, Arval For Me services are also included solutions while BNP Paribas’ solutions can for example, to identify yourself repeatedly in everyday applications. in the app. Thanks to a solution that be integrated directly into partner services By creating new platforms, BNP Paribas is positioning itself as the “conductor” integrates a payment system with and customer journeys. APIs facilitate both of the customer journey. The bank combines its own services with those a service platform, BNL has already exchanges among the Group’s business lines of others in the industry as well as with those of partners in new sectors; gained 66,800 contracts for individual as well as cooperation with startups, fintechs the aim is to better serve customers and beyond the traditional boundaries customers, of which 57,700 new and partners so as to reinvent the customer of banking activities. Consulting firm McKinsey forecasts that by 2025, customers in 2019 alone. At the same experience, develop distribution capabilities one-third of global transactions will be carried out through platforms, time, in partnership with Arval and and stimulate innovation. ■ a fundamental trend synonymous with growth and value-creation Telepass, BNL has also launched opportunities for BNP Paribas.” ■ Telepass x BIZ for SMEs, a service which,

(1) An API (Application Programming Interface) is a series thanks to the integration of service of agreements or definitions that ensure that two systems can communicate and exchange data. platforms into the BNL account, provides (2) Event during which multidisciplinary teams meet for a fixed period of time to work collaboratively on computer a single portal for electronic invoicing programming projects. of mobility-related expenses, simplified payment-management while on the move as well as a leasing proposition. ■

30 31 2019 INTEGRATED REPORT Digitalisation of customer journeys: more services, greater simplicity International expansion Fostering ‘positive impact’ investment and increased autonomy for Nickel in Private Banking Nickel promotes inclusive banking by Using “agile” methodology at BivwAk!(1), banker, and SRI(2) investment mandates offering solutions that are accessible BNP Paribas Wealth Management have increased by almost 40%. myImpact Useful innovation to everyone, either online or at co-created, with more than 100 clients, was also rolled out in Luxembourg and tobacconist in France, and without a digital tool —myImpact— whose purpose the United States in 2019. BNP Paribas minimum-income conditions. Five years is to help clients with their sustainable- Wealth Management is now working st place rench Retail Banking (FRB) and corporate clients, notably when it comes after its launch, Nickel had 1.5 million investment decisions. The aim? Build with BNP Paribas Asset Management and 1 stepped up its digital trans- to opening accounts or reviewing KYC (“Know (3) accounts opened in France at the end clients’ sustainable-development FundQuest Advisor to design high-impact among French banking groups F formation in 2019 to meet Your Customer”) information. With Welcome, in D-Rating’s 2019 ranking. of 2019, an increase of 33% in one year. preferences into the investment advice solutions that meet the expectations the new habits and aspi- companies can now complete forms, forward As part of its 2024 strategic plan, Nickel they receive. And the result? Since its of the Group‘s private banking clients. ■ rations of both individual and business cli- documents and sign everything electronically intends to export its business model to rollout in France in 2019, 25% of clients ents who are now benefiting from ever more (e.g., online signing of contracts for account (1) A new transformation initiative of the Group. See below to find seven European countries, starting with using the service have requested an our more about our employees’ professional development. products and services meeting expectations openings). In addition to personal interaction (2) Socially Responsible Investment. Spain in 2020. ■ appointment with their (3) Specialist in fund selection at BNP Paribas Asset Management. in terms of simplicity, autonomy, efficiency with their relationship managers, this initia- and a smoother customer experience. Among tive allows corporate clients to deal with the Lyf Pay these innovative services, customers can now bank in a smoother, faster and harmonised benefit from instantaneous money transfers manner, both in France and abroad and in line European leader in Cash Management BNP Paribas that allow funds to be sent securely in only with BNP Paribas’ ”One Bank” spirit. 2.7 million a few seconds, as well as from the use of BNP Paribas Cash Management, - The deployment of Swift GPI, Asset Management continues electronic signatures. A FOCUS ON THE QUALITY OF THE ‘DIGITAL no.1 in Europe and no.3 worldwide which allows companies to quickly its modernisation downloads* JOURNEY’ FOR INDIVIDUAL CUSTOMERS according to Greenwich, has process their international This integrated e-money wallet solution A WIDE RANGE OF DIGITAL Thanks to digital transformation, both in its renowned expertise in cash transactions, with real-time As part of simplifying its organisational (point-of-sale payments, management FUNCTIONALITIES FOR CORPORATE CLIENTS French Retail Banking business and its digital of loyalty cards, gift certificates management that meets the global traceability of each payment and structure, BNP Paribas Asset Management and communal kitties) brings together BNP Paribas regularly rolls out new digital bank Hello bank!, the Group ranked no.1 among and local needs of businesses. complete transparency. finished streamlining its operations high value-added services to enrich solutions for corporate clients to enhance its French retail banks in terms of customer expe- The co-creation of digital solutions, - The deployment of a European with the adoption of the Aladdin software the customer experience beyond banking services through the use of digital value proposition. “Welcome”, launched by rience according to D-Rating’s 2019 survey. in partnership with customers, checkout solution that allows for its asset-management platform. technology. FRB in 2019, aims to ease and digitalise the Moreover, BNP Paribas is the only bank in enables an anticipation of customer merchants to offer more than The adoption has enabled the company * Since its launch in May 2017. exchange of information between the bank France to obtain a BBB+ rating. The D-Rating needs and optimisation of 360 integrated payment methods for to modernise its systems and allow survey looks at more than 700 indicators in these solutions. BNP Paribas e-commerce or local merchants. scalability so as to facilitate future growth. ■ three areas: the performance of digital ser- Cash Management also offers - The implementation of the new vices; the use of digital channels; and the pace innovative payment methods, and Connexis interface, available via the of transformation. The ranking reflects the it has launched a common European Centric platform (see page 31), which wealth of online services. Beyond facilitating platform for the Group to enables companies to manage their account openings, customers can, for exam- securely receive and send money accounts worldwide and have HELLO BANK! ple, view account balances without logging electronically in real time. Cash complete visibility of all of their in or manage card and payment limits. And Management also assists companies transactions. ■ tops thanks to a chatbot, a secure mailbox facility internationally with: and the possibility to book an appointment online, BNP Paribas offers some of the most exhaustive contact possibilities available in the 2.7 million market. These results testify to the pertinence Promoting our employees professional development of the Group’s strategy, which combines the customers in France, best of both digital and human resources to BNP Paribas is committed to helping employees adapt to working Belgium and Germany serve customers. ■ in the businesses of the future. In 2019 it created the “Digital, Data & Agile Academy” which offers employees the opportunity to acquire, increase In 2019 Hello bank! continued to and/or deepen skills and so expand their medium- and long-term professional- grow, especially in France with 20% development prospects. The programme currently features 40 training more customers compared to 2018. courses, either as part of an upskilling or reskilling programme. At the same In 2020 Hello bank! will be rolling out time, BivwAk!, a new Group transformation initiative, has as one of its goals 100%-mobile, real-time solutions to increase employee knowledge and skills in data, technology, “agile” internationally that reflect young people’s methods as well as “positive-business” impacts. ■ user habits and ways of working. ■

32 33 2019 INTEGRATED REPORT COMBINING ECONOMIC PERFORMANCE Sustainable growth Sustainable WITH A POSITIVE

ustainability-Linked Loans IMPACT (SLLs) are increasingly popu- S lar and BNP Paribas was one By offering customers products of the first financial insti- tutions to promote them. that have a positive impact, The special feature of these positive-impact BNP Paribas combines economic loans is the incentive they give companies to improve their ESG performance by correlat- efficiency with pursuit of the ing the loans’ financial terms to predefined common good, a position that extra-financial goals. BNP Paribas’ Corporate & Institutional Banking is also in line with stakeholder (CIB) teams designed, through their Corporate expectations. The Group is Banking activities, an innovative, tailor-made solution for Másmóvil, which in July 2019 was therefore designing innovative granted the first SLL in the form of a lever- solutions for customers, both aged SLL (leverage uses a company’s debt to individuals and companies, increase its investment capacity and return on equity). to support their projects Másmóvil is Spain’s fourth-largest telecoms and help them grow. We have operator with over eight million customers. It is active in fixed and mobile telephone and one goal: make finance a internet services and has its own network means to transform society. infrastructure for optic fibre as well as 3G and 4G, allowing the company to cover almost the entire Spanish population.

A TAILOR-MADE SLL BNP Paribas grants With BNP Paribas as sole coordinator for the ESG aspects of the financing, the SLL has a two-fold objective: ensuring Másmóvil Másmóvil the first achieves its goal to transition to a more sus- tainable growth model, notably in response to investor demands for transparency and leveraged Sustainability- sustainability; and enabling BNP Paribas to increase its positive impact on society and the environment. Linked Loan The SLL is firmly adapted to the needs of Másmóvil and the first linked to a Standard & Poor’s ESG rating. The €1.7 billion financing BNP Paribas helps companies improve comprises a €1.45 billion loan, a €100 million their Environmental, Social and Governance revolving-credit facility and €150 million (ESG) performance by offering loans based capex (capital expenditure) line. on compliance with extra-financial criteria. The loan strengthens the long-term relation- More. ship between the Group, its business lines ...and

34 35 2019 INTEGRATED REPORT ... “Sustainability-Linked Loans (SLLs), such as the one designed for telecoms Improved solutions for Másmóvil. For example, BNP Paribas Personal operator Másmóvil, green bonds “Mittelstand” and Private Banking Finance and Másmóvil have obtained authori- and social bonds are complementary sation from the Bank of Spain to launch mobile- products that enable us to support clients in Germany based financial services for retail customers. companies financially while encouraging their transition to sustainable-business Wealth Management Private Banking Germany relies

Sustainable growth Sustainable DEMANDING ESG CRITERIA models. Unlike SLLs, green and social on both the efficiency of ’s digital platform(1) Under this original mechanism, extra-finan- bonds are used to finance specific and BNP Paribas Wealth Management’s solutions cial risk has the same level of requirements projects. Recently, however, the Italian to offer clients a new approach to private banking. energy group launched several as financial risk. As a result, the interest rates Consorsbank is expanding its traditional online-brokerage innovative bonds inspired by SLLs and for on the loan are linked directly to Másmóvil’s business by adding private-banking services across Germany which repayment is linked to a precise ESG rating, which was 67/100 when the SLL to support other client segments. Furthermore, BNP Paribas objective: an increase to at least 55% was granted. This rating is used as a refer- Wealth Management has decided to extend its solutions to (compared to 46% in 2019) of its installed ence point to assess the annual variations Mittelstand(2) entrepreneurs. The new entity—BNP Paribas renewable-energy capacity by 2021, Wealth Management Germany—proposes new, customised in the interest rate of the capex and revolv- and to its greenhouse-gas emissions “We are seeing a strong solutions that are notably based on joint solutions offered ing-credit facility. If the ESG rating is down- in 2030. Although companies of all sizes convergence towards graded, the interest rate on the loan rises. and from all sectors can use these in conjunction with other Group businesses already Conversely, if the rating improves, the inter- products, they need to be more advanced sustainable economic well-established in the country. ■ est rate falls. The “bonus-penalty” mecha- in terms of social and environmental performance.” nism linked to a company’s ESG performance responsibility (CSR)”. ■ thus has a strong incentive effect. (1) Consorsbank is a brand of BNP Paribas Personal Investors in Germany for retail customers. (2) Diverse group of companies in Germany. The term encompasses SMEs, family businesses or mid-sized companies with a significant global market position in a highly specialised sector. INCREASED ATTRACTIVENESS Agnès Gourc, By aligning financing conditions with CSR Co-head, Sustainable performance, companies with an SLL are Finance Markets at CIB, responding to growing investor interest in has experience in sustainable finance in international BNP Paribas Asset Management BNP Paribas Real Estate: this type of ESG rating. Companies there- Cécile Moitry, Co-head, Sustainable Finance Debt Capital Markets. fore need to set concrete, measurable, reinforces its Global Sustainability Strategy a single sale of Markets at CIB, has 15 years easy-to-understand objectives and be trans- of experience in sustainable In 2019 BNP Paribas Asset Management stepped up its commitment to deliver parent about their CSR strategy in order to finance and infrastructure long-term sustainable investment returns for clients with the launch of its Global achieve a rapid return on investment that will 2 and energy financing. Sustainability Strategy (GSS). The strategy sets clear objectives grouped around three in turn result in a more favourable interest 352,000 m themes: the energy transition, environmental sustainability, and equality and inclusive rate. The financial incentive to meet sustain- growth. BNP Paribas Asset Management will be applying ESG criteria to all of its in Germany able-development goals boosts customer investment processes by 2020. ■ confidence and employee engagement with The sale of the Millennium respect to a company’s sustainable-develop- portfolio belonging to Generali ment strategy. The resulting win-win result Lebensversicherung AG contributes to the company’s overall attrac- is the largest transaction ever tiveness. carried out in the German real estate SLLs are a key sustainable-finance product. market. The sale comprised “In addition to offering complementary In 2019 the number of SLLs undertaken by 49 premium locations: 26 office products, our support is based on the Group amounted to 60 transactions, with buildings, 14 residential buildings strong cooperation among teams in order BNP Paribas contributing more than €6.2 bil- and 9 commercial buildings located to meet the changing needs of clients lion. The use of SLLs and other innovative in several major German cities. while ensuring continuity of the relationship. products benefiting the environment and “We are all working As bankers in daily contact with companies, The sale reflects BNP Paribas society contributed to the Group’s recogni- together to support we are convinced of the need to inform Real Estate Services’ no.1 position tion as the “Most Innovative Investment Bank them, raise awareness and assist them in in Germany, a key market for its for Climate Change and Sustainability” (The clients in their efforts rolling out concrete actions to make international growth. ■ Banker 2019). ■ to develop responsible their development and transformation a success. As a result, we will collectively business models.” play an active role in driving more inclusive and environmentally-friendly growth.” ■

36 37 2019 INTEGRATED REPORT BNP Paribas strengthens its international customer franchises Arval continues BNP Paribas strengthens initiatives to promote a its positions in Poland

new kind of mobility Following the acquisition of the core banking activities of Raiffeisen Bank Polska by France’s leader in vehicle rental BNP Paribas’ Polish subsidiary, the new entity is Sustainable growth Sustainable and mobility solutions, Arval now the sixth-largest bank in Poland. November stands out for its innovative 2019 saw the successful completion of the trengthening customer fran- insurance experience. The agreement focuses developments in the sector, integration of IT systems and the migration of S chises is a key element of firmly on the long term and represents a deci- notably through the Arval Mobility customer data. These were two BNP Paribas’ 2017-2020 stra- sive step in expanding the Group’s insurance Observatory, an independent key achievements that now make it possible to tegic plan. For the Group’s business in Latin America. The opportunities research body whose aim is to understand and anticipate changes in the world offer the same products and services three operating divisions it means establishing offered by the alliance are important for both of mobility. In 2019 Arval joined the MaaS (Mobility-as-a-Service) Alliance and to 3.7 million customers across the country. and deploying new partnerships that can take partners from a commercial standpoint, but thus reaffirmed its willingness to build, together with its partners, the integrated In addition, BNP Paribas Bank Polska is advantage of existing synergies between two also in terms of advice and expertise. mobility solutions of the future. Arval also pursued initiatives to promote sustainable capitalising on synergies with other BNP Paribas businesses by either deepening their coopera- “With our expertise and the breadth of the mobility, notably through the signature of a partnership with for the launch business lines to offer customers access to the tion or forging an alliance with an external part- network, this alliance leverages of a “green” electric-mobility solution. Within this partnership, Arval is also working Group’s international network and expertise. ner. In this way BNP Paribas is able to develop the strengths of each company to create with BNP Paribas Leasing Solutions to offer rental solutions for charging BNP Paribas Bank Polska is also continuing to an enhanced banking model in an integrated, a truly unique proposition. Scotiabank is stations in Europe. ■ expand its support of the agriculture and food collective fashion across the Group as well as the ideal ally to meet this challenge,” says sectors, where it has enjoyed a historically strengthen its market positions, win over new Francisco Valenzuela, Head of Latin America strong position. For example, it has launched customers and, more broadly, continue growing at BNP Paribas Cardif. ■ Insurance solutions available to ”Agronomist”, a platform that offers a wide its business. As a driver of growth, this approach In early 2020, BNP Paribas joined the , a global coalition that aims range of services to companies and professional to expanding customer franchises is particularly to promote the use of hydrogen as an accelerator of the energy transition. customers in the agri-food industry. ■ attractive because it is flexible enough to enable million each business to diversify. 9 customers in four Latin American countries. BNP PARIBAS PERSONAL FINANCE Committed to the circular economy FORGES AHEAD WITH THE DEVELOPMENT OF PARTNERSHIPS Agreement between In 2019 BNP Paribas Personal Finance estab- lished new partnerships that exemplify the BNP Paribas relevance of this business model, in the auto- and motive sector (Opel in Poland, Volvo in Italy, BYmyCAR in France, Ford in several countries) The agreement signed between and in retailers ( in Italy, Allegro and BNP Paribas—via its Global Markets Carrefour in Poland, Leroy Merlin in Brazil). business— and Deutsche Bank involves the transfer to BNP Paribas A MAJOR STRATEGIC ALLIANCE IN LATIN of the German bank’s prime AMERICA brokerage activity—a field of In the summer of 2019 BNP Paribas Cardif and expertise that brings together Scotiabank, Canada’s leading financial ser- services for institutional investors vices company in the Americas, entered into such as alternative asset managers. a strategic alliance in bancassurance in Latin The terms of the agreement allow for America. The aim of the 15-year agreement is continued “best-in-class” service In 2019 BNP Paribas Leasing Solutions formed a Joint-Venture with 3stepIT, a Finnish to develop protection and insurance solutions to clients of Deutsche Bank’s Global company specialising in the lifecycle management of IT devices, to offer solutions based for Scotiabank’s nine million customers in Prime Finance and Electronic Equities around the circular economy. Under the BNP Paribas 3 Step IT brand, the company offers Chile, Colombia, and Peru—a region in division through the migration businesses a comprehensive set of services for managing IT equipment at every stage in which 70% of the population lacks insurance. of Deutsche Bank’s technology and its lifecycle. The services enable clients to acquire, manage and replace their equipment, The two institutions, which share a common teams to BNP Paribas. This agreement while limiting the environmental impacts. It also encourages companies to keep their IT approach to digital technologies and data underlines the Group’s strong equipment up to date while promoting the development of a more sustainable economy. analysis, aim to make insurance more acces- commitment to institutional investors Ultimately, 11 countries in Europe will benefit from this new “virtuous-circle” service, sible and offer a high-quality banking and around the world. ■ with up to 97% of equipment refurbished at the end of the contract. ■

38 39 2019 INTEGRATED REPORT UNDERTAKING RESPONSIBLE ACTIONS FOR

Contribution to society SOCIETY

To increase its positive impact on society and the he Group is committed to more responsible growth. environment, BNP Paribas T This involves solutions such can capitalise on both its as the structuring of social position as a leading European impact bonds (Contrats à Impact Social in France). These instruments make it possible bank and its international to finance, using private funds, a Social and presence. Through the bank’s Solidarity-based Economy (SSE) organisation and so further innovation and benefit society services, financing activity as a whole. BNP Paribas’ commitment to the and advisory solutions, SEE can be seen in partnerships such as that with The Grameen Creative Lab, formed in the Group is pursuing a CSR 2019, or through programmes such as ”Act for strategy in line with the Impact” which has been rolled out in various business lines. In 2019 the Group’s support for 17 UN Sustainable associations and Social and Solidarity Economy Development Goals. The aim: enterprises amounted to €6.2 billion*, of which €1.9 billion was devoted to microfinance and contribute to more inclusive, social enterprises. equitable growth. DEVELOPING A SOCIAL BUSINESS CULTURE WITH THE GRAMEEN CREATIVE LAB BNP Paribas’ commitment to the Social and Solidarity-based Economy has been strength- Increasing our ened thanks to the links forged with The Grameen Creative Lab, a leading institution working in the field of social business and contribution to the Social founded by Nobel Peace Prize winner Profes- sor Muhammad Yunus (see interview on the and Solidarity-based next page). The partnership was signed for a period of five years, during which both parties will work on new initiatives within the Group. Economy These include raising employee awareness regarding social business, training staff to enable them to build “positive impacts” into To face today’s social and environmental challenges, the their businesses, and encourage their engage- development of positive-impact entrepreneurship is an ment through pro bono legal advice for the answer. BNP Paribas has put in place an international Grameen Creative Lab teams and social strategy to support social enterprises and positioned businesses. In 2020, the Lab has created two itself as a pioneer and major player in this fast-growing sector. More. * Financing and investments for both proprietary activity and third parties....

40 41 2019 INTEGRATED REPORT ... Tangible initiatives for inclusive growth ClimateSeed: an innovative websites: Tilia, which provides support to together 38 major international carbon-offset platform caregivers of a family member who has lost companies and aims to promote autonomy in their daily activities, and Tan- growth that is inclusive, fairly On 16 October 2019 ClimateSeed was gata, which helps the disabled and caregivers distributed across society and offering awarded first prize in the Social, Sustainable access leisure activities. The partnership also opportunities to all. The Group has and Responsible Banking category at the encourages business lines to promote social also joined the Collectif d’entreprises Efma-Accenture Customer Insight and Growth businesses. In the United States, Bank of the Contribution to society pour une économie plus inclusive Banking Innovation Awards. ClimateSeed is the West has helped finance Grameen America, in France. The organisation brings digital platform launched by BNP Paribas a microfinance institution that finances and together 35 major French companies Securities Services that connects investors promotes women’s entrepreneurship. keen to contribute to social progress interested in offsetting their CO2 emissions and it encourages concrete actions with sustainable projects aimed at capturing ACCELERATING HIGH-IMPACT PROJECTS to open up access to employment, or reducing those emissions. ClimateSeed In December 2018 BNP Paribas launched “Act BNP Paribas joined the OECD’s combat job insecurity and develop currently offers 29 projects in 20 countries. for Impact”, an initiative with the ambitious Business for Inclusive Growth (B4IG) inclusive procurement policies. BNP Paribas also offsets part of its emissions goal of supporting one out of every four new coalition, launched in August 2019 These two coalitions are part of via this platform. ■ social entrepreneurs in France by the end of at the G7 summit whose central BNP Paribas’ ongoing initiatives 2020. To help these entrepreneurs scale up theme was the fight against to promote more equitable their businesses, the Group provides banking inequality. The coalition now brings growth models. ■ advice and access to a network of partners. Recently, a combined panel of experts from “Companies More than 160 bankers receive the crowdfunding site Ulule and BNP Paribas relationship managers selected three of can create social sustainable-development training these new SSE, positive-impact projects. BNP Paribas commits to protect The first award-winning initiative was Kimia businesses in order In partnership with the University of Café, a “third place” family project combin- the oceans Cambridge, BNP Paribas created in 2019 ing conviviality and eco-awareness which to address society’s a sustainable-development training programme opened in Paris in early 2020. The Trust for the Group’s senior executives, risk managers Society, the second initiative selected, is an and bankers working with major clients. online sales website that brings together problems.” The aim of the programme is to train our clients’ sustainable and everyday zero-waste prod- key relationship teams so they can factor ucts made in France. It is designed to help social and environmental issues into their people change their consumption patterns. business proposals. ■ “A social business is a ‘non- The third project supported by the initiative Professor organisation that aims to solve one or more is Les Petits Prödiges, a brand of cosmetics Muhammad Yunus problems in our society’. Unlike a traditional made in France that is 100% natural and is the founder of Grameen business, its social purpose is the primary driver Bank, the world’s leading respectful of people’s health and the planet. in its decision-making, and unlike a non-profit microfinance institution, In addition to this success in France, BNP Paribas founding organisation, it is financially self-sufficient and and the pioneer of social BGL BNP Paribas rolled out “Act for Impact” reinvests its profits into its own expansion. business. He received the member of the UN’s Principles in Luxembourg to better serve the fast-grow- By redefining what an entrepreneur is, we can Nobel Peace Prize in 2006, ing social economy in the Grand Duchy. Retail for Responsible Banking change the face of capitalism and solve some along with Grameen Bank, and Corporate Banking in Luxembourg made of today’s social and environmental problems. for his work and his fight a commitment to social entrepreneurs by against poverty. In March In 2018, BNP Paribas took part in drawing The agreement signed with BNP Paribas goes putting together a team of advisors from 2012, Fortune Magazine In 2019 BNP Paribas published its commitments with regard up the Principles for Responsible Banking in that direction: companies can create within the bank attuned to social entrepre- named Professor Yunus to protecting the oceans. It is thus contributing to the UN Sustainable (PRB), launched in September 2019 and signed social businesses alongside their traditional neurs’ needs. The entrepreneurs benefit from as “one of the greatest Development Goal (SDG) no.14 “Life Under Water”. By defining the criteria along with 129 other banks from 49 countries. activities in order to address society’s problems. employee expertise in areas such as com- entrepreneurs of our time”. governing its financing and investment relating to the ocean, the Group aims Through this commitment, signatory banks And they can also engage employees, munication, human resources and market- to work with clients to reach this UN Goal. BNP Paribas is taking numerous are demonstrating their resolve to align particularly the younger generation, to help ing. The bank’s Lux Future Lab is also open steps to protect the ocean and its resources in areas such as shipping, business strategies with the UN Sustainable achieve this goal.” ■ to startups that have a positive social and/ fishing and aquaculture, undersea mining, maritime-based renewable Development Goals (SDGs) and the Paris or environmental impact. The Lab offers ser- energy or land-based mining with strong impacts on oceans. In the maritime Agreement. The signatories’ assets amount vices ranging from hosting to training and transportation sector, BNP Paribas is devoting €1 billion in the period to $47 trillion or nearly one-third of the world’s the search for financing. ■ to 2025 to finance the ecological transition of ships. ■ banking assets. ■

42 43 2019 INTEGRATED REPORT A new “Lift” for young people Renewed commitment Supporting microfinance to Seine-Saint-Denis pened in June 2019, mises, be lease guarantor, oversee the moving In 2009 BNP Paribas launched the Odyssée L’Ascenseur [the Lift] is a process, identify volunteers and also mobilise O Jeunes programme with the Seine-Saint-Denis unique venue in Europe that its partner network so it could contribute to département*. The programme has enabled brings together 20 commu- the collective effort. And many additional 50,000 schoolchildren to go on educational nity organisations and social enterprises pro- employees have personally committed to Contribution to society school trips. BNP Paribas is also the largest moting equal opportunity. Education, access helping young people with their personal and private-sector employer in Seine-Saint-Denis to employment and the possibility of setting professional development. L’Ascenseur makes and in 2019 decided to step up its commitment up a business are still largely dependent on the work of the participating organisations by signing a Charter with the département that young people’s social, geographical, ethnic or and social enterprises stronger and more sets out 45 commitments in the areas of youth, cultural origins. L’Ascenseur opened its doors visible. Working together, and with contri- employment, solidarity and the local economy. ■ in Paris to make a real difference. Its purpose: butions from the public and private sectors, support young people who face various kinds they can promote their particular activities * Local government département in the Greater Paris region. of discrimination. and expertise, have a bigger impact and offer a palette of solutions that maximises support BNP PARIBAS: MAIN CORPORATE for young people. L’Ascenseur members are PHILANTHROPIST AND FOUNDING helping 400,000 young people who come SPONSOR from disadvantaged backgrounds to gain For thirty years BNP Paribas has made microfinance a flagship commitment. Conceived by Article 1 and designed by Mozaïk access to education, the world of work as Microfinance gives people excluded from the traditional banking system RH, two leading organisations in the field of well as sporting and cultural activities the chance to realise their projects. The Group has become the main partner economic and social inclusion, the project was that all contribute to their social inclusion. of many Microfinance Institutions (MFIs) around the world and has participated made possible thanks to the decisive support of L’Ascenseur is an ambitious endeavour. It in the co-creation of two MFIs in Belgium and Luxembourg. In three decades, various business lines at BNP Paribas, the main unites a community of organisations in the over 2 million people (including 1.8 million women) have benefited from community corporate philanthropist and founding sponsor. social and solidarity economy (companies, microcredit thanks to the BNP Paribas’ support of 84 MFIs in 33 countries. 20 The Group has devoted €900 million to microfinance. ■ In addition to financial support and assistance, foundations and government) who have organisations located in the 2,300 m² building (300 m² of collective space, BNP Paribas mobilised some thirty managers decided to join forces to meet today’s social 250 workstations) from various subsidiaries to locate the pre- challenges and injustices. ■ Committed to equal rights and opportunities for women and men worldwide More than twenty years of Supported by an inclusive Human its gender-equality goals and its An ambitious social-solidarity commitment to the social Resources policy that creates the membership of the UN’s HeForShe conditions enabling women employees movement. In 2019 BNP Paribas also philanthropy programme inclusion of young people to pursue the career path of their choice became the first CAC 40 company and well as those enabling a move to join the #JamaisSansElles movement; As part of its philanthropic initiative “Help2Help”, BNP Paribas’ commitment to the creation of to a better shared governance, members of the Group’s Executive the BNP Paribas Foundation encourages, among L’Ascenseur is a continuation of its advocacy for the Group has been fully committed Committee signed a charter declaring equal opportunity begun more than twenty years other things, the personal commitment of the ago with the BNP Paribas Foundation and through for 15 years to achieving the fifth UN they would no longer take part in Group’s employees through volunteering that helps ambitious programmes such as Projet Banlieues(1) Sustainable Development Goal: events (internal or external) if panels social and humanitarian causes. Rolled out in more and also those with long-standing partners ”Achieve gender equality and empower of more than three speakers did not than 30 countries and thanks to a grant of such as AFEV(2), ADIE(3) and Simplon.co. Today, all women and girls”. The “Leaders have at least one woman. Furthermore, €750,000, “Help2Help” supported the projects of BNP Paribas has become a fully-fledged player for Tomorrow” initiative, for example, the Group and its subsidiary BICIS 250 community groups in 2019. Furthermore, the in the ecosystem helping to promote the social prepares the next generation of continue to support the HeForShe Group strengthened its commitment to society by inclusion of young people. managers and sets a target of 50% movement through a partnership with setting up its “1MillionHours2Help” programme women among identified future leaders. UN Women’s AgriFed programme. with the aim to reach 1 million hours of voluntary (1) The Projet Banlieues seeks to support community organisations that work in high-priority, disadvantaged neighbourhoods Within the Graduate Programme of It aims to develop climate-resilient work provided by the Group’s employees worldwide (Quartiers Prioritaires de la Politique de la Ville, QPVs) to promote education and social and professional integration. Global Markets (a largely male business agriculture and support in 2020. This goal takes into account, among other (2) Created in 1991, the Association de la Fondation Étudiante pour la Ville is the largest network of university students providing line), the number of women participants 15,000 Senegalese women farmers actions, skills sponsorship and pro bono initiatives. educational support in disadvantaged neighbourhoods. (3) The Association pour le Droit à l’Initiative Économique finances, reached 50%, a result higher than through a $1.8 million funding As at the end of 2019 the number of volunteering advises and supports young entrepreneurs (some of whom have no capital or qualifications) to start and develop a business activity. that fixed by the Group in terms of programme. ■ hours totalled more than 450,000. ■

44 45 2019 INTEGRATED REPORT GOVERNANCE

46 47 2019 INTEGRATED REPORT A GOVERNANCE TO DEFINE Shareholders and investors AND IMPLEMENT THE GROUP’S STRATEGIC DIRECTION Stable and loyal ownership BNP Paribas and its shareholders: Key shareholder data cultivating a dialogue BNP Paribas’ ownership structure at 31 December 2019 (% of voting rights). The Board of Directors and Executive Management are the main governing BNP Paribas has chosen to provide all shareholders with regular information, bodies of BNP Paribas. In a profoundly changing environment, they direct the Group’s EUROPEAN EMPLOYEES in accordance with best market practices strategy towards a goal of sustainable growth. They act together in the interests INSTITUTIONAL INVESTORS 4.2% and the recommendations of stock of the Group and its stakeholders, in particular shareholders and investors. 45.9% market authorities. Under the leadership of its Chairman, the Board of Directors defines BNP Paribas’ RETAIL SHAREHOLDERS strategy. It supports Executive Management, which is assisted by its Executive NON-EUROPEAN DRAWING ON THE EXPERTISE OF THE SHAREHOLDER INSTITUTIONAL 3.5% LIAISON COMMITTEE Committee and which implements strategy and guides the Group’s activity INVESTORS Since 2000 BNP Paribas has had a on a day-to-day basis. 31.1% OTHER AND Shareholder Liaison Committee to assist UNIDENTIFIED with communications with individual SFPI * 1.6% shareholders. It meets several times a year 7.7 % and is made up of ten shareholders chosen GRAND DUCHY OF LUXEMBOURG for their geographical and socio-professional BLACKROCK INC. representativeness, plus two current or EXECUTIVE MANAGEMENT SHAREHOLDERS BOARD 1.0% ASSISTED BY ITS EXECUTIVE 5.0% former employees. Membership of the AND INVESTORS OF DIRECTORS COMMITTEE committee is for three years.

ANIMATING THE SHAREHOLDER COMMUNITY * Société Fédérale de Participations et d’Investissements: They elect Directors (other than Directors It separates the functions of Chairman It informs and reports to the Board a public limited company (“société anonyme”) acting on behalf of the Belgian state. In 1995 the Group created the Cercle des elected by BNP Paribas employees). and Chief Executive Officer. of Directors. actionnaires de BNP Paribas for the They vote on resolutions. It represents all shareholders and ensures It implements strategy, oversees Key shareholder data 43,000 shareholders who possess at least They engage, participate and enrich the quality of the relationship with them. the Group’s development and guides 200 shares. Several times a year, its members discussions. It determines the Group’s strategic its day-to-day activity. receive the Shareholders’ Newsletter, as • The Investor Relations team informs choices based on proposals from Executive It meets at least weekly. IN 2015 2016 2017 2018 2019 well as the publication La Vie du Cercle, which them about the Group’s strategy, Management to create long-term value. It consists of a Chief Executive Officer Earnings per share (1) 5.14 6.00 6.05 5.73 6.21 lists all of the cultural, artistic and sporting significant developments, and results. It monitors the quality of information and Director, a Chief Operating Officer events in France to which they are invited by • The Shareholder Relations provided to shareholders and the markets. and four Deputy Chief Operating Officers. Net book value per share (2) 70.95 73.90 75.1 74.7(*) 79.0 the Group. They also have access to training team answers questions from the bank’s It examines and closes the financial The Executive Committee brings together courses about the economy and the to Net dividend per share 2.31 2.70 3.02 3.02 n.a. (**) 345,000 individual shareholders. statements, ensuring their accuracy. Executive Management and the heads attend shareholder gatherings that focus on • The Cercle des actionnaires de It plays a determining role in risk- of BNP Paribas’ main businesses and Pay-out ratio (%) (3) 45.0 45.0 50.0 52.72 n.a. (**) the company’s strategy and results and which BNP Paribas brings together some prevention and management. functions. SHARE PRICE are held three times a year. Lastly, they are 43,000 individual shareholders who own It ensures compliance with the obligations invited to attend BNP Paribas’ Annual General (4) at least 200 BNP Paribas shares. for which it is responsible in terms of High 60.68 62.00 68.89 68.66 53.81 Meeting, which includes a Q&A session with • The Shareholder Liaison Committee met internal control. Low (4) 44.94 35.27 54.68 38.18 38.14 the Group’s management. twice in 2019 to discuss, among other It appoints the Chairman, the Chief Year-end 52.23 60.55 62.25 39.475 52.83 topics, the capital structure and changes Executive Officer and the Chief Operating to it, quarterly results, the activities of Officers. CAC 40 index on 31 December 4,637.06 4,862.31 5,312.56 4,730.69 5,978.06 Partners in Action for Customer Experience It periodically reviews the selection, (1) Based on the average number of shares outstanding during the fiscal year. (2) Before . Revaluated net book value per (PACE), and the Compliance function. appointment and succession of executive share based on the number of shares outstanding at year-end. (3) Dividend distribution recommended at the Annual General Meeting as a percentage of net income attributable to equity holders. (4) Registered during trading. They benefit from the principle of equality corporate officers. (*) Impact on equity of first-time application of IFRS 9 at 1 January 2018: -€2.5 billion, or €2 per share. among shareholders: no double-voting It brings together the expertise rights, no limitations on the exercise of of 14 Directors (see page 50). voting rights, no right to increased dividends The Board of Directors is assisted by (**) In an unprecedented context and taking into consideration the recommendations issued by the on 27 March 2020 with respect to dividend distributions during on share equivalents. four specialised committees (see page 51). the Covid-19 pandemic, BNP Paribas’ Board of Directors met on 2 April 2020, with Jean Lemierre as the Chairman. Reviewing these recommendations and their impacts, the Board of Directors decided to propose to the General Meeting (held in closed session on 19 May 2020) to suspend the dividend payment initially planned for the financial year 2019 and to allocate the corresponding full amount to reserves. After 1 October 2020, the Board of Directors may, subject to the context, convene a General Meeting in order to proceed with a distribution of reserves to shareholders in place of the dividend.

48 49 2019 INTEGRATED REPORT The Board of Directors drives DUTIES OF THE BOARD the Group’s strategic direction AND OF ITS COMMITTEES The Board of Directors is a collegial body and exercises the following three general powers: examining the company’s strategic choices, contributing to good governance As guarantor of the Group’s vision, the collectively, they provide the Group with the 1 JEAN LEMIERRE 7 HUGUES EPAILLARD 13 SANDRINE VERRIER Chairman of the Board Real Estate Business Manager, Production and Sales Support throughout the company, and monitoring and assessing BNP Paribas Board of Directors determines opportunity to be well attuned to both cus- of Directors of BNP Paribas Director elected by BNP Paribas assistant, Director elected all transactions related to the Group’s businesses. employees by BNP Paribas employees its strategic direction and oversees its tomers and the wider ecosystem. 2 JEAN-LAURENT BONNAFÉ 12 MEETINGS, INCLUDING 1 EXCEPTIONAL implementation by Ex ecutive Management. Director and Chief Executive 8 RAJNA GIBSON BRANDON 14 FIELDS WICKER-MIURIN Officer of BNP Paribas Professor of Finance Director of companies 1 STRATEGY SEMINAR (AVERAGE ATTENDANCE RATE: 96%) at the University of It seeks to promote long-term value creation by The Board of Directors bases its priorities on 3 JACQUES ASCHENBROICH BNP Paribas in the framework of the social and sound foundations: a balanced, steady and Chairman and Chief Executive 9 MARION GUILLOU Officer of the Group Independent director Financial Statements Committee environmental challenges facing the Group. long-term growth strategy, and a risk-control 4 PIERRE-ANDRÉ DE CHALENDAR 10 DENIS KESSLER The Committee is tasked with analysing the quarterly, culture and customer-centred business model Chairman and Chief Executive Chairman and Chief Executive half-yearly and annual financial statements issued Officer of Compagnie Officer of SCOR SE by BNP Paribas and obtaining further explanations It is composed of 14 directors, 12 of whom that are efficient and sustainable. Against this de Saint-Gobain 11 DANIELA SCHWARZER of certain items prior to presentation of the financial are appointed by shareholders and two backdrop, in 2019 it monitored the progress of 5 MONIQUE COHEN Director of think tank DGAP elected by employees. The Board’s members, the Group’s transformation and development Partner at (Deutsche Gesellschaft für statements to the Board of Directors. Auswärtige Politik - German whose profiles and experience are varied, plan—Ambition 2020, launched in 2017—in 6 WOUTER DE PLOEY 5 MEMBERS Chief Executive Officer of ZNA Council on Foreign Relations) bring their expertise in banking and finance, light of the results of the operating divisions, (hospital group in , 12 MICHEL TILMANT 5 MEETINGS (AVERAGE ATTENDANCE RATE: 96%) risk management, digital transformation changes in the economic environment and the Belgium) Director of companies and CSR (Corporate Social Responsibility) interest-rate scenario. Corporate Governance, Ethics, to the bank. By representing shareholders Appointments and CSR Committee The Committee is tasked with monitoring corporate governance issues. Its role is to help the Board of Directors to adapt corporate governance practices within BNP Paribas and to assess its functioning. It also examines all questions related to CSR policy and professional ethics. 14 > 50% 5 41.7% 4 MEMBERS elected directors, Rate of independence with Nationalities Female representation* 5 MEETINGS (AVERAGE ATTENDANCE RATE: 100%) including 2 by employees regard to the criteria set by the AFEP-MEDEF Code Internal Control, Risk Management and Compliance Committee The Committee examines the strategic direction of the risk policy using measurements of market, liquidity and operational risks under current regulations, as well as specific questions related to these topics and methods. It also deals with all compliance- related issues, particularly those in the areas of reputation risk or professional ethics. 5 MEMBERS 9 MEETINGS (AVERAGE ATTENDANCE RATE: 98%)

Compensation Committee The Committee is responsible for addressing all issues related to the personal status of executive corporate officers, including compensation, pension benefits and provisions governing the departure of members of the bank’s corporate decision-making or representative bodies. It also examines matters concerning the compensation of “regulated”

13 3 employees whose activities have an effect on the Group’s risk profile. 3 MEMBERS 4 MEETINGS (AVERAGE ATTENDANCE RATE: 100%)

11 1 * According to the rules of the Cope-Zimmermann Law. The ratio is calcu- lated by excluding the two directors representing employees of the Board 2 of Directors. 14 6 5 4 8 7 10 9 See the 2019 Universal Registration Document for further details 12 about the work conducted in 2019. 50 51 2019 INTEGRATED REPORT The Executive Committee

implements the Group’s strategy 1 JEAN-LAURENT BONNAFÉ 10 STEFAAN DECRAENE Director and Chief International Retail Banking Executive Officer 11 RENAUD DUMORA and oversees its activity 2 PHILIPPE BORDENAVE BNP Paribas Cardif Chief Operating Officer 12 NATHALIE HARTMANN 3 JACQUES D’ESTAIS Compliance Deputy Chief Operating Officer, The Executive Committee manages Ambition 2020, the Group’s 13 MAX JADOT International Financial Services 2017-2020 transformation and development plan. It is made up BNP Paribas Fortis 4 YANN GÉRARDIN 14 YVES MARTRENCHAR of the six members of the Executive Management team and Deputy Chief Operating Group Human Resources Officer, Corporate & Institutional the 14 members in charge of a business line or central function. Banking 15 ANDREA MUNARI BNL They bring their expertise to raise the level of collective knowledge 5 MICHEL KONCZATY Deputy Chief Operating Officer 16 ALAIN PAPIASSE Corporate & Institutional and ensure the operational management of the Group. 6 THIERRY LABORDE Banking Deputy Chief Operating Officer, Domestic Markets 17 ÉRIC RAYNAUD Asia-Pacific 7 MARGUERITE BÉRARD French Retail Banking 18 FRANK RONCEY RISK 8 MARIE-CLAIRE CAPOBIANCO Growth & Corporates in France 19 ANTOINE SIRE Company Engagement 9 LAURENT DAVID BNP Paribas Personal Finance 20 THIERRY VARÈNE Large Clients

Chief Operating 1 Officer “Together, with members 1 2 of the Executive Committee and

their teams, Director and Chief Executive Deputy Chief we are working to realise 1 Officer 4 Operating Officers our project of a bank with ever-better performance and commitent. Our complementary 3 9 6 4 5 expertise and business lines allow us to get closer to our clients every day and deliver answers that meet expectations, both today and tomorrow.”

JEAN-LAURENT BONNAFÉ Director and Chief Executive 16 7 10 20 19 18 13 Officer of BNP Paribas

members representing business lines 14 and functions

16

12 14 11 15 17 8

53 2019 INTEGRATED REPORT

52 OUR KEY INDICATORS Social indicators 2017 2018 2019 Financial indicators Changes in workforce (Full-Time Equivalent) 196,128 202,624 198,816 Number of permanent contracts 96 % 96 % 96%

2017 2018 2019 Percentage of employees who have attended at least two training courses n.a. 91.8% 94.8%

Group revenues €43,161m €42,516m €44,597m Percentage of employees trained on an ethics-related issue 96.2 % 96.2% 95.4% Domestic Markets revenues €15,718m €15,683m €15,814m Percentage of women among the members of cross-functional 25% 25% 27% Executive Committees across business lines and/or countries* International Financial Services revenues €15,899m €16,076m €17,183m Percentage of women in the population in key SMP positions 27% 28% 29% Corporate & Institutional Banking revenues €11,704m €10,829m €12,080m (Senior Management Position)

Net income Group share €7,759m €7,526m €8,173m Share of women in the Group’s total workforce 53% 52% 52%

CET1 Ratio: Common Equity Tier 1 ratio (1) 11.80% 11.80% 12.1% BNP Paribas’s SA gender-equality index, based on five criteria set by the French 87 87 government (gender pay gap, annual pay rises and promotions, increases in maternity points / 100 points / 100 Group’s outstanding loans + 3.9% + 5% leave, presence of women among the highest-paid employees of the company

Domestic Markets outstanding loans €379bn €397bn €414bn Number of collective agreements signed 271 287 310 International Financial Services outstanding loans €171bn €178bn €186bn * Out of approximately 500 Top executives. Corporate & Institutional Banking outstanding loans €146bn Net earnings per share (2) 6.05 5.73 6.21 Social and civic indicators Net dividend per share 3.02 3.02 n.a. (3)

Liquidity reserve (4) €285bn €308bn €309bn 2017 2018 2019 Support (financing, investments on behalf of the bank and third parties) to associations (1) Common Equity Tier 1 (CET1), fully loaded Basel 3. Solvency ratio. Capital Requirements Directive (CRD4). €5.6bn €6.2bn (2) Based on the average number of shares outstanding during the fiscal year. and Social and Solidarity Economy enterprises (3) Payment suspended 2 April 2020. See details page 49. (4) Liquid market assets or eligible to central banks taking into account prudential standards, notably US standards, minus intra-day payment systems needs. BNP Paribas’ annual philanthropy budget €40.2m €41.6m €44.5m*

Social inclusion: number of Nickel accounts opened 800,000 1.1m 1.5m

* This amount does not include the exceptional support of €20 million provided by BNP Paribas to the Fondation de France for the reconstruction of Notre-Dame Cathedral in Paris. Economic indicators LONG-TERM AND SHORT-TERM RATINGS 2017 2018 2019 Amount of corporate financing contributing to the energy transition and to sectors considered as contributing directly to the achievement of the 17 United Nations Sustainable €155bn €168bn €180bn Aa3/ AA (LOW)/ Development Goals A+/A-1 AA-/F1+ Prime-1 R-1 (MIDDLE) Total amount of Sustainability-Linked Loans (SLL) signed €3bn €6.2bn

Total assets managed by BNP Paribas Cardif, BNP Paribas Wealth Management €1,028bn €1,028bn €1,123bn and BNP Paribas Asset Management * Standard & Poor’s Fitch Moody’s DBRS Negative outlook Rating Watch Negative Stable outlook Stable outlook SRI assets managed by BNP Paribas Asset Management €35bn €36.8bn €63bn 23 April 2020 30 March 2020 9 December 2019 12 July 2019

* Including distributed assets. EXTRA-FINANCIAL RATINGS AND DISTINCTIONS In 2019 the Group maintained or improved its performance in almost all of the ratings of the main extra-financial rating agencies. These ratings, which take into account stakeholders’ expectations in terms of CSR commitments and responsible practices, recognise BNP Paribas’ progress in this area and are useful Environmental indicators in defining its social and environmental objectives. 2017 2018 2019 Main extra-financial ratings Inclusion in sustainable indices sustainable companies (top French bank and 3rd in the world). Top bank out of 31 in the Diversified Banks BNP Paribas is listed in the Dow Jones Financing for renewable energies €12.3bn €15.4bn €15.9bn Top French bank in Equileap’s international (Europe) . category in the Vigeo Eiris 2019 European and World ethical indices gender equality ranking. Reduction of total greenhouse-gas emissions related to the proper functioning - 20.9% - 23.6% - 27.7% rankings (requested rating: A1+). BNP Paribas is listed in the -Vigeo of BNP Paribas per FTE (compared with 2012) BNP Paribas is committed to no longer financing BNP Paribas received an A rating in the 2019 Eiris indexes World 120, Europe 120, companies in the tobacco sector. The Group is a Capital investments dedicated to startups and funds focused MSCI ESG Ratings. Eurozone 120 and France 20. €20m €35m €56m founding member of the Tobacco-Free Finance on energy transition BNP Paribas received an A- rating in the 2018 Pledge. Carbon Disclosure Project rankings. Total amount of green bonds placed by BNP Paribas €5.3bn €6.3bn €9.8bn Other CSR distinctions and engagements Carbon content of kWh financed by the Group 342 gCO /kWh 339 gCO /kWh 299 gCO /kWh BNP Paribas is included in Corporate Knights 2 2 2 magazine’s 2020 ranking of the 100 most

54 55 2019 INTEGRATED REPORT AT A GLANCE 2019-2020

The bank for a changing world

UNIVERSAL REGISTRATION AT A GLANCE 2019-2020 CORPORATE PHILANTHROPY 2019 DOCUMENT AND ANNUAL ACTIVITY REPORT FINANCIAL REPORT 2019

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56 3 2019 INTEGRATED REPORT BNP Paribas Head office: 16, boulevard des Italiens 75009 Paris (France) Tel: +33 (0)1 40 14 45 46 Public Limited Company (Société Anonyme) with a capital of €2,499,597,122 RCS Paris 662 042 449 _RIN_E9102_ A.féR _RIN_E9102_

The bank for a changing world