Annual Report 2013

Annual Report 2013

BNP Paribas Fortis SA/NV Annual Report 2013 Introduction The BNP Paribas Fortis Annual Report 2013 contains both the audited Consolidated and the Non-consolidated Financial Statements, preceded by the Report of the Board of Directors, the Statement of the Board of Directors and a section on Corporate Governance including the composition of the Board of Directors. The audited BNP Paribas Fortis Consolidated Financial Statements 2013, with comparative figures for 2012, prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, are followed by the audited Non-consolidated Financial Statements 2013 of BNP Paribas Fortis SA/NV, prepared on the basis of the rules laid down in the Belgian Royal Decree of 23 September 1992 on the annual accounts of credit institutions. All amounts in the tables of the consolidated Financial All information contained in the BNP Paribas Fortis Annual Statements are denominated in millions of euros, unless Report 2013 relates to the BNP Paribas Fortis statutory stated otherwise. All amounts in the tables of the non- consolidated and non-consolidated financial statements consolidated Financial Statements are denominated in and does not cover the contribution of BNP Paribas thousands of euros, unless stated otherwise. Because figures Fortis to the BNP Paribas Group consolidated results, have been rounded off, small differences with previously which can be found on the BNP Paribas website: reported figures may occur. Certain reclassifications www.bnpparibas.com. have been made with regard to the prior year’s Financial Statements in order to make them comparable for the year The BNP Paribas Fortis Annual Report under review. 2013 is available on the website: www.bnpparibasfortis.com BNP Paribas Fortis refers in the Consolidated Financial Statements to the BNP Paribas Fortis SA/NV consolidated situation unless stated otherwise. BNP Paribas Fortis refers in the Non-Consolidated Financial Statements to the BNP Paribas Fortis SA/NV non-consolidated situation, unless stated otherwise. 3 Content Introduction 3 BNP Paribas Fortis Consolidated Annual Report 2013 7 Report of the Board of Directors 8 A word from the Chairman and the CEO 8 Sound business performance in an adverse economical and financial environment 10 Core Businesses 11 Statement of the Board of Directors 30 Corporate Governance Statement 31 BNP Paribas Fortis Consolidated Financial Statements 2013 43 Profit and loss account for the year ending 31 December 2013 44 Statement of net income and changes in assets and liabilities recognised directly in equity 45 Balance sheet at 31 December 2013 46 Statement of changes in shareholders’ equity between 1 January 2012 and 31 December 2013 47 Minority Interests between 1 January 2012 and 31 December 2013 48 Statement of cash flows for the year ending 31 December 2013 49 Notes to the consolidated financial statements 2013 51 1 Summary of significant accounting policies applied by BNP Paribas Fortis 52 1.a applicable accounting standards 52 1.b Segment reporting 53 1.c Consolidation 53 1.d Financial assets and financial liabilities 57 1.e Accounting standards specific to insurance business 67 1.f Property, plant and equipment and intangible assets 69 1.g Leases 70 1.h Non-current assets held for sale and discontinued operations 71 1.i Employee benefits 71 1.j Share-based payment 73 1.k Provisions recorded under liabilities 74 1.l Current and deferred taxes 74 1.m Statement of cash flows 75 1.n Use of estimates in the preparation of the financial statements 75 4 BNP PARIBAS FORTIS AnnUAL REPORT 2013 2 Notes to the profit and loss account for the year ending 31 december 2013 76 2.a Net interest income 76 2.b Commission income and expenses 77 2.c Net gain/loss on financial instruments at fair value through profit or loss 77 2.d Net gain/loss on available-for-sale financial assets and other financial assets not measured at fair value 78 2.e Net income from other activities 78 2.f Cost of risk 79 2.g Corporate income tax 81 3 Segment information 82 3.a Operating segments 83 3.b Information by operating segment 84 4 Risk management and capital adequacy 85 4.a Risk management organisation 85 4.b Risk measurement and categories 87 4.c Capital adequacy 89 4.d Credit and counterparty risk 90 4.e Market risk 104 4.f Operational risk 116 4.g Compliance and reputational risk 118 4.h Liquidity and refinancing risk 119 5 Notes to the balance sheet at 31 December 2013 121 5.a Financial assets, financial liabilities and derivatives at fair value through profit or loss 121 5.b Derivatives used for hedging purposes 125 5.c Available-for-sale financial assets 126 5.d Measurement of the fair value of financial instruments 128 5.e Financial instruments reclassified as loans and receivables 136 5.f Interbank and money-market items 136 5.g Customer items 137 5.h Debt securities and subordinated debt 140 5.i Held-to-maturity financial assets 141 5.j Current and deferred taxes 141 5.k Accrued income/expense and other assets/liabilities 143 5.l Investments in associates and joint ventures 143 5.m Investment property, property, plant and equipment and intangible assets 145 5.n Goodwill 147 5.o Provisions for contingencies and charges 149 5.p Transfers of Financial Assets 150 5.q Netting of financial assets and liabilities 151 6 Financing commitments and guarantee commitments 153 6.a Financing commitments given or received 153 6.b Guarantee commitments given by signature 153 6.c Other guarantee commitments 153 7 Salaries and employee benefits 155 7.a Salary and employee benefit expenses 155 7.b Employee benefit obligations 155 BNP PARIBAS FORTIS AnnUAL REPORT 2013 5 8 Additional information 163 8.a Scope of consolidation 163 8.b Business combinations 171 8.c Non-current assets classified as Held for Sale and Discontinued operations 174 8.d Remuneration and benefits awarded to the BNP Paribas Fortis corporate officers 176 8.e Related parties 179 8.f Balance sheet by maturity 181 8.g Structured Credit Instruments 182 8.h Exposure to sovereign risk 184 8.i Fair value of financial instruments carried at amortised cost 186 8.j Contingent assets and liabilities 188 8.k Fees paid to the Statutory Auditors 190 8.l Restatement due to amendments to IAS 19 Employee benefits 190 8.m Events after the reporting period 192 8.n Additional information on the Bass and Esmée securitisation transactions 193 Report of the accredited statutory auditors 197 BNP Paribas Fortis Annual Report 2013 (non-consolidated) 201 Report of the Board of Directors 202 Proposed appropriation of the result for the accounting period 207 Information related to Article 523 of the Belgian Companies code 208 Information regarding related party transactions 211 BNP Paribas Fortis Financial Statements 2013 (non-consolidated) 213 Summary of the accounting policies for the non-consolidated financial statements 272 Report of the accredited statutory auditors 277 Other information 281 6 BNP PARIBAS FORTIS AnnUAL REPORT 2013 BNP Paribas Fortis Consolidated Annual Report 2013 7 Report of the Board of Directors A word from the Chairman and the CEO 2013 was an important year for our clients, for our employees and for the Bank. We dedicated ourselves fully in 2013 to further improving customer satisfaction and enhancing the bank’s role in financing the economy. Total savings deposits grew in 2013, both in retail customers’ current and savings accounts, and in business accounts. We see this evolution as a sign of our clients’ trust in our Bank. An increase was also recorded in our lending to households and businesses. Special attention was paid in this regard to the needs of the self-employed, members of the liberal professions and SMEs via the ‘Bank for Entrepreneurs’ campaign. The continual introduction of innovative services and products that respond to the customers’ changing lifestyles and expectations is a key element of our offer to clients. To this end, we invested substantially in 2013 in our digital banking offering and payment solutions. Notable examples are the ‘Easy transfer’ integration in the ‘Easy banking’ app, the rollout of a mobile card payment and teller solution for the self-employed, the development of a mobile wallet e-commerce app and the launch of ‘Hello bank!’, a new mobile-only banking channel. Meanwhile, a number of important initiatives have also been taken within the Bank for the benefit of our clients. In December 2012, we announced plans for the strategic reshaping of BNP Paribas Fortis into a bank ready to face tomorrow’s challenges. The intended transformation is driven by three trends: our customers’ changing pattern of expectations in response to ongoing digital evolution the specific characteristics of the Belgian market fundamental shifts in the macroeconomic environment. The main focus was on our ambition to be the bank of choice for customers. The rationalisation of the branch network and its reorganisation into clusters is intended to ensure that clients have continued access to specialists at more convenient times of the day. Meanwhile our efforts towards greater operational efficiency and process industrialisation are designed to further improve customer experience. An important aspect is the elimination of administrative follow-up from the front-office. These tasks are concentrated in three Client Competence Centres that are in direct contact with the customer throughout the process of mortgage contracting, estate settlement and corporation servicing in daily banking. 8 BNP PARIBAS FORTIS CONSOLIDATED AnnUAL REPORT 2013 Another important objective in the Bank’s plan to remain sustainable is to keep costs flat. We are confronted with historically low interest rates, uncertainty over economic growth and strong competition.

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    294 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us