Retail Banking

2013 Annual Report Serving our clients in a changing world Coworking session at NUMA, the digital innovation centre in Paris. 01 The Group’s profile A RESPONSIBLE 02 Interview with the Chairman and the Chief Executive Officer 04 AND INNOVATIVE BANK Corporate Social Responsibility 08 2013 Key figures 10 SERVING ITS CLIENTS The Executive Committee 11 The Board of Directors BNP Paribas is a leading bank in the eurozone and a 13 major global bank. The Group is active in 75 countries employees Compensation table with nearly 185,000 employees(1), more than 140,000 185,000 16 of whom are in Europe. BNP Paribas has key positions in Retail Banking in its three main areas of activity: 75 countries 42 Investment Solutions RETAIL BANKING 54 INVESTMENT SOLUTIONS Europe CORPORATE & INVESTMENT BANKING 141,500 Corporate employees, including & Investment Banking 56,800 in France (including overseas territories) In Europe, the Group has four domestic markets 66 —Belgium, France, Italy and Luxembourg—and BNP Paribas 18,200 in Italy Human Resources Personal Finance is the leader in consumer finance. 17,400 in Belgium in Luxembourg 71 BNP Paribas is also developing its integrated retail 3,950 Partnerships banking model in countries around the Mediterranean 74 basin, in Turkey and in Eastern Europe, and has a large Americas Corporate philanthropy network in the Western United States. 18,670 78 Its Investment Solutions and Corporate & Investment employees, including BNP Paribas and its shareholders Banking businesses are among the leaders in Europe 15,160 in North America and boast a solid foothold in the Americas, as well as 3,510 in South America Interviews a robust and rapidly-growing presence in Asia-Pacific. 15 (1) Workforce at 31/12/2013. Asia-Pacific Philippe Bordenave, Chief Operating Officer 14,730 22 employees François Villeroy de Galhau, Chief Operating Officer Africa 53 9,050 Georges Chodron de Courcel, employees Chief Operating Officer 69 Middle East Yves Martrenchar, Head of Group Human Resources 600 employees 01 PROFILE WHAT WAS THE vs. 2012) and an ongoing control of operating For developing markets, we launched WHAT ARE THE MAIN B. P.: This plan gives us the means ECONOMIC CONTEXT expenses (-1.5% year-on-year) helped a plan for the Asia-Pacific region that aims PRINCIPLES OF THIS to develop in a world experiencing IN 2013 AND WHAT us to generate a net income excluding to strengthen our commercial set-up serving STRATEGIC PLAN? profound change. In order to succeed, ARE THE PROSPECTS exceptional items of EUR 6 billion. Despite multinationals and local medium-sized and we need to be “the bank for a changing INTERVIEW FOR 2014? B. P.: Above all, this plan confirms the relevant the decrease compared with 2012 (-5.3%), large corporates. BNP Paribas is already one world”: a responsible and innovative this result reflected the good resilience of the best-positioned global banks in the choice of our universal banking model built bank which can adapt to changes in Baudouin Prot: Economic conditions of our operating divisions. region and the initial results are promising, around three core pillars: Retail Banking, order to serve clients more effectively, remained difficult in Europe, but the indicators with a 24.4% increase in revenues between CIB and Investment Solutions. This model today and in the future. Q WITH are encouraging and the continent is slowly B. P.: Our balance sheet is also rock solid, 2012 and 2013. Our target is to boost revenues is part of BNP Paribas’ DNA and offers some but surely coming out of the recession. with a fully-loaded Basel 3 solvency at CIB and Investment Solutions in this indisputable advantages. The US economy bounced back strongly ratio of 10.3% at the end of 2013 and region to more than EUR 3 billion in 2016. BAUDOUIN PROT substantial liquidity reserves: immediately J.-L. B.: With client-focused businesses, in 2013, while Asia saw steady growth, CHAIRMAN albeit remaining below pre-crisis levels. available liquidity stood at EUR 247 billion In Germany, a key market for our growth cross-selling between the business lines In 2014 we expect a gradual recovery as at 31 December 2013. This represented in Europe, the plan we unveiled in the and a good diversification of risk, this model across all markets against a backdrop 154% of short-term wholesale funding, giving summer aims to reinforce significantly proved resilient during the crisis and JEAN-LAURENT of persistent volatility. us more than a year of room to manœuvre. our existing positions by growing deposits will help us to step up our development Baudouin PROT Jean-Laurent BONNAFÉ from individuals, expanding our offer by leveraging on our current momentum. CHAIRMAN CHIEF EXECUTIVE OFFICER IN THIS MIXED CONTEXT, WHAT MAJOR PROJECTS for business clients and accelerating Our target is to reach a ROE of at least BONNAFÉ HOW DID BNP PARIBAS WERE UNDERTAKEN our development in specialised businesses. 10% in 2016 and double-digit growth CHIEF EXECUTIVE OFFICER PERFORM? IN 2013? in average earnings per share for the Lastly, to enhance client focus and services, 2013-2016 period. Jean-Laurent Bonnafé: Our performance J.-L. B.: Projects were numerous, but the we launched Hello bank!, our new model for reflected our resilient revenues and four main ones were incorporated into digital banking, in four countries (Germany, HOW DO YOU PLAN our good control of operating expenses. our 2014-2016 business development plan. Belgium, France and Italy). We are satisfied TO ACHIEVE THIS? Thanks to the diversity of our businesses For Investment Partners, we announced with the first results and have received a and geographical coverage and our ability in the summer a plan to streamline number of awards for the quality of services J.-L. B.: The plan has five strategic priorities. to capture the dynamic momentum in our processes and boost asset-gathering and user-friendly aspects of Hello bank! The first is to enhance client focus and fast-growing markets, we posted stable in three main development areas: Asia-Pacific services offered to individual customers, revenues of EUR 39 billion, despite a still & emerging markets, institutional clients WHAT CHALLENGES LIE corporates and institutional clients, lacklustre economic environment in Europe. and distribution platforms & networks AHEAD FOR BNP PARIBAS by innovating to meet their changing needs, A slight increase in the cost of risk (+2.9% for individual clients. IN 2014 AND BEYOND? whilst remaining a responsible bank. The second is to simplify our organisation B. P.: One of the challenges will be regulatory and the way we function, with the launch and 2014 will be a busy year for regulators of more than 420 initiatives. and financial institutions. I am thinking in particular of the implementation of The third priority is to continue improving “2014 also marks the the European Banking Union, which has operating efficiency. The results for 2013 the full support of BNP Paribas, even though were encouraging, as recurrent cost launch of our business some points need to be clarified, such as savings reached EUR 800 million. the financing mechanism for the resolution The fourth priority consists of adapting development plan, fund. That said, in light of recent upheavals certain businesses to their economic with ambitious in the banking and financial sector, and regulatory environment, such as our Group has always been able to rapidly BNL and our capital market activities. —albeit realistic— adjust its capital and liquidity requirements Lastly, we will successfully implement accordingly. business development initiatives targets for the Group in different regions, particularly in J.-L. B.: 2014 also marks the launch of our North America (CIB) and Turkey, but also between now business development plan, with in specialised businesses which are Watch the interviews on our website: ambitious—albeit realistic—targets for leaders in their sector. bnpparibas.com/en/about-us and 2016.” the Group between now and 2016. BNPB PARIBASPAARRIBBASS - 2013201013013 ANNUALAANNUAL REPORTREPORTT 002 03 INTERVIEW THE BNP PARIBAS GROUP’S BUSINESS DEVELOPMENT PLAN FOR 2014-2016 Serving our clients in a changing world 1. Enhance CLIENT focus and services 5. Successfully 2. implement business 5 SIMPLIFY DEVELOPMENT MAJOR our organisation and the initiatives STRATEGIC way we function PRIORITIES 4. ADAPT 3. certain businesses to their Continue improving economic and regulatory environment OPERATING EFFICIENCY "Our clients are at the heart of our project. I believe that the quality of our teams and the strength of our organisation will enable us to implement it successfully. Together, we will meet this ambition". Jean-Laurent Bonnafé Chief Executive Officer bnpparibas.com SIMPLIFY OUR ORGANISATION AND THE WAY WE FUNCTION bnpparibas.com CORPORATE SOCIAL RESPONSIBILITY BEING A RESPONSIBLE BANK 4 pillars and 12 commitments Since 2012, BNP Paribas’ CSR policy has been built on 4 pillars with 12 commitments. All of the Group’s Our Our Our Our business lines, networks, subsidiaries and countries apply this policy, using the same structure while ECONOMIC SOCIAL CIVIC ENVIRONMENTAL adapting it to their specific characteristics. Accordingly, BNP Paribas Investment Partners has positioned responsibility: responsibility: responsibility: responsibility: itself as a responsible investor while BNP Paribas Leasing Solutions has introduced a Positive Leasing strategy and BNP Paribas Personal Finance is pursuing its responsible credit policy. FINANCING PURSUING COMBATING COMBATING

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