REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT 2017 The bank for a changing world 1 PRESENTATION OF THE BNP PARIBAS GROUP 3 6 INFORMATION ON THE PARENT 1.1 Group presentation 4 COMPANY FINANCIAL STATEMENTS 1.2 Key fi gures 4 31 DECEMBER 2017 439 1.3 History 5 6.1 BNP Paribas SA fi nancial statements 440 1.4 Presentation of activities and business lines 6 Notes to the parent company financial statements 442 1.5 BNP Paribas and its shareholders 16 6.2 Appropriation of income for the year ended 31 December 2017 and dividend distribution 468 2 CORPORATE GOVERNANCE 6.3 BNP Paribas SA fi ve-year fi nancial summary 469 AND INTERNAL CONTROL 29 6.4 Subsidiaries and associated companies of BNP Paribas SA 470 2.1 Corporate governance report 30 6.5 Disclosures of investments of BNP Paribas SA 2.2 Statutory Auditors’ report, prepared in accordance in 2017 affecting at least 5% of share capital with article L.225-235 of the French Commercial of French companies 476 Code, on the Board of Directors’ report on 6.6 Statutory Auditors’ report on the fi nancial statements 477 corporate governance. 94 2.3 The Executive Committee 94 7 A COMMITTED BANK: INFORMATION 2.4 Internal Control 95 CONCERNING THE ECONOMIC, SOCIAL, CIVIC AND ENVIRONMENTAL 3 2017 REVIEW OF OPERATIONS 109 RESPONSIBILITY OF BNP PARIBAS 483 3.1 BNP Paribas consolidated results 110 7.1 Our mission and our values 484 3.2 Core business results 112 7.2 Economic responsibility: fi nancing the economy 3.3 Balance sheet 124 in an ethical manner 490 3.4 Profi t and loss account 128 7.3 Social Responsability: developing and engaging 3.5 Recent events 132 our people responsibly 503 3.6 Outlook 133 7.4 Civic responsibility: being a positive agent for change 521 3.7 Financial structure 134 7.5 Environmental responsibility: combating climate 3.8 Alternative Performance Measures (APM) – change 527 Article 223-1 of the AMF’s General regulation 135 7.6 Duty of care and Modern Slavery Act and human traffi cking statement 533 4 CONSOLIDATED FINANCIAL 7.7 Table of concordance with the list of environmental, social and governance STATEMENTS FOR THE YEAR ENDED information required under article 225 31 DECEMBER 2017 137 of the Grenelle II Act 538 4.1 Profi t and loss account for the year ended 7.8 Table of concordance with GRI, ISO 26000, UNEP 31 December 2017 140 Fi, Global Compact, Sustainable Development Goals 540 4.2 Statement of net income and changes in assets 7.9 Report by one of the Statutory Auditors, appointed and liabilities recognised directly in equity 141 as an independent third party, on the consolidated environmental, social and governance information 4.3 Balance sheet at 31 December 2017 142 presented in the management report of BNP Paribas 544 4.4 Cash fl ow statement for the year ended 31 December 2017 143 8 GENERAL INFORMATION 549 4.5 Statement of changes in shareholders’ equity between 1 Jan. 2016 and 31 Dec. 2017 144 8.1 Documents on display 550 4.6 Notes to the fi nancial statements prepared 8.2 Material contracts 550 in accordance with International Financial 8.3 Dependence on external parties 550 Reporting Standards as adopted by the European Union 146 8.4 Signifi cant changes 551 4.7 Statutory Auditors’ report on the consolidated 8.5 Investments 551 fi nancial statements 237 8.6 Information on locations and businesses in 2017 552 8.7 Founding documents and Articles of association 559 5 RISKS AND CAPITAL ADEQUACY – PILLAR 3 243 8.8 Statutory Auditors’ special report on related party 5.1 Annual risk survey 246 agreements and commitments 564 5.2 Capital management and capital adequacy 264 5.3 Risk management [Audited] 292 9 STATUTORY AUDITORS 567 5.4 Credit risk 299 9.1 Statutory Auditors 568 5.5 Securitisation in the banking book 344 5.6 Counterparty credit risk 355 10 PERSON RESPONSIBLE FOR 5.7 Market risk 366 THE REGISTRATION DOCUMENT 569 5.8 Liquidity risk 384 10.1 Person responsible for the Registration document and the annual fi nancial report 570 5.9 Operational risk 396 10.2 Statement by the person responsible 5.10 Insurance risks 404 for the Registration document 570 Appendix 1: Exposures based on Financial Stability Board recommendations 410 11 TABLES OF CONCORDANCE 571 Appendix 2: Sovereign exposures [Audited] 413 Appendix 3: Regulatory capital – Detail 416 Appendix 4: Countercyclical capital buffer 424 Appendix 5: Capital requirements of significant subsidiaries 426 Appendix 6: List of tables and figures 433 Appendix 7: Acronyms 436 2017 Registration document and annual fi nancial report Only the French version of the Registration document has been submitted to the AMF. It is therefore the only version that is binding in law. The original document was filed with the AMF (French Securities Regulator) on 6 March 2018 , in accordance with article 212-13 of the AMF’s General Regulations. It may be used in support of a financial transaction only if supplemented by a Transaction Note that has received approval from the AMF. This document was prepared by the Issuer and its signatories assume responsibility for it. The English language version of this report is a free translation from the original, which was prepared in French. All possible care has been taken, to ensure that the translation is an accurate presentation of the original. However, in all matters of interpretation, views or opinion expressed in the original language version of the document in French take precedence over the translation. 2017 Registration document and annual fi nancial report - BNP PARIBAS 1 2 2017 Registration document and annual fi nancial report - BNP PARIBAS PRESENTATION OF THE 1 BNP PARIBAS GROUP 1.1 Group presentation 4 1.2 Key fi gures 4 Results 4 Market capitalisation 4 Long-term and short-term ratings 5 1.3 History 5 1.4 Presentation of activities and business lines 6 Retail Banking & Services 6 International Financial Services 10 Corporate and Institutional Banking 13 Corporate Center 15 Key factors affecting the business 15 1.5 BNP Paribas and its shareholders 16 Share capital 16 Changes in share ownership 16 Listing information 17 Key shareholder data 20 Creating value for shareholders 21 Communication with shareholders 22 Shareholder Liaison Committee 23 Dividend 23 Change in dividend (in euro per share) 24 BNP Paribas registered shares 24 Annual General Meeting of Shareholders 25 Disclosure thresholds 27 2017 Registration document and annual fi nancial report - BNP PARIBAS 3 PRESENTATION OF THE BNP PARIBAS GROUP 1 Group presentation 1.1 Group presentation 1 BNP Paribas, Europe’s leading provider of banking and fi nancial services, ■ International Financial Services, comprising: has four domestic Retail Banking markets in Europe, namely in France, ■ Europe-Mediterranean, Belgium, Italy and Luxembourg. ■ BancWest, It operates in 73 countries and has more than 196,000 employees, ■ Personal Finance, including nearly 149,000 in Europe. BNP Paribas holds key positions in ■ its two main businesses: Insurance, ■ Wealth and Asset Management; ■ Retail Banking and Services, which includes: ■ Corporate and Institutional Banking (CIB): ■ Domestic Markets, comprising: ■ Corporate Banking, ■ French Retail Banking (FRB), ■ Global Markets, ■ BNL banca commerciale (BNL bc), Italian retail banking, ■ Securities Services. ■ Belgian Retail Banking (BRB), BNP Paribas SA is the parent company of the BNP Paribas Group. ■ Other Domestic Markets activities including Luxembourg Retail Banking (LRB); 1.2 Key fi gures RESULTS 2013 2014(****) 2015 2016 2017 Revenues (in millions of euros) 38,409 39,168 42,938 43,411 43,161 Gross operating income (in millions of euros) 12,441 12,644 13,684 14,033 13,217 Net income Group share (in millions of euros) 4,818 157 6,694 7,702 7,759 Earnings per share (in euros)(*) 3.68 4.70(**) 5.14 6.00 6.05 Return on equity(***) 6.1% 7.7 %(**) 8.3 % 9.3% 8.9% (*) Based on net income Group share adjusted for interest on Undated Super Subordinated Notes deemed equivalent to preferred shares issued by BNP Paribas SA and treated as a dividend for accounting purposes. (**) Excluding the costs related to the comprehensive settlement with the US authorities. Excluding this effect, net earnings per share came to EUR -0.07 and return on equity stood at -0.1%. (***) Return on equity is calculated by dividing net income Group share (adjusted for interest on Undated Super Subordinated Notes deemed equivalent to preferred shares issued by BNP Paribas SA and treated as a dividend for accounting purposes) by average equity attributable to equity holders at 1 January and 31 December of the period concerned (after distribution and excluding Undated Super Subordinated Notes deemed equivalent to preferred shares issued by BNP Paribas SA). (****) Figures restated following the application of IFRIC 21 interpretation. MARKET CAPITALISATION 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 31/12/2017 Market capitalisation (in billions of euros) 53.4 70.5 61.4 65.1 75.5 77.7 Source: Bloomberg. 4 2017 Registration document and annual fi nancial report - BNP PARIBAS PRESENTATION OF THE BNP PARIBAS GROUP History 1 LONG-TERM AND SHORT-TERM RATINGS 1 Long-term and short-term ratings Long-term and short-term ratings as at 7 March 2017 as at 6 March 2018 Outlook Date of last review Standard & Poor’s A/A-1 A/A-1 Stable 31 July 2017 Fitch A+/F1 A+/F1 Stable 28 September 2017 Moody’s A1 /Prime-1 Aa3/Prime-1 Stable 27 September 2017 DBRS AA (low)/R-1 (middle) AA (low)/R-1 (middle) Stable 1st August 2017 On 31 July 2017, Standard & Poor’s confi rmed the long-term credit rating On 27 September 2017, following its review, Moody’s upgraded the long- of BNP Paribas at A with a stable outlook.