REGISTRATION DOCUMENT AND ANNUAL FINANCIAL REPORT 2016 The bank for a changing world 1 PRESENTATION OF THE BNP PARIBAS GROUP 3 Appendix 7: Table of concordance between the Enhanced Disclosure Task Force (EDTF) 1.1 Group presentation 4 recommendations and the Registration document 409 1.2 Key fi gures 4 Appendix 8: Acronyms 411 1.3 History 5 1.4 Presentation of activities and business lines 6 6 INFORMATION ON THE PARENT 1.5 BNP Paribas and its shareholders 16 COMPANY FINANCIAL STATEMENTS 31 DECEMBER 2016 413 2 CORPORATE GOVERNANCE 29 6.1 BNP Paribas SA fi nancial statements 414 2.1 Presentation 30 Notes to the parent company financial statements 416 2.2 Report of the Chairman of the Board of Directors 6.2 Appropriation of income for the year ended prepared pursuant to article L.225-37 31 December 2016 and dividend distribution 446 of the French Commercial Code 61 6.3 BNP Paribas SA fi ve-year fi nancial summary 447 2.3 Statutory Auditors’ report, prepared in accordance with article L.225-235 of the French Commercial 6.4 Subsidiaries and associated companies Code, on the report of the Chairman of the Board of BNP Paribas SA 448 of directors 100 6.5 Disclosures of investments of BNP Paribas SA 2.4 The Executive Committee 102 in 2016 affecting at least 5% of share capital of French companies 451 6.6 Statutory Auditors’ report on the fi nancial statements 452 3 2016 REVIEW OF OPERATIONS 103 3.1 BNP Paribas consolidated results 104 A RESPONSIBLE BANK: INFORMATION 3.2 Core business results 106 7 ON THE ECONOMIC, SOCIAL, CIVIC 3.3 Balance sheet 118 AND ENVIRONMENTAL RESPONSIBILITY 3.4 Profi t and loss account 122 OF BNP PARIBAS 455 3.5 Recent events 126 7.1 Our mission and our values 456 3.6 Outlook 127 7.2 Economic responsibility: fi nancing the economy 3.7 Financial structure 128 in an ethical manner 463 3.8 Alternative Performance Measures (APM) 7.3 Social responsibility: developing and engaging Article 223-1 of the AMF’s General Regulation 129 our people responsibly 480 7.4 Civic responsibility: being a positive agent for change 501 4 CONSOLIDATED FINANCIAL 7.5 Environmental responsibility: combating climate STATEMENTS AS AT 31 DECEMBER 2016 131 change 511 4.1 Profi t and loss account for the year ended 7.6 Table of concordance with the list of social, 31 December 2016 134 environmental and community information required under article 225 of the Grenelle II Act 519 4.2 Statement of net income and changes in assets and liabilities recognised directly in equity 135 7.7 Table of concordance with GRI, ISO 26000, UNEP Fi, Global Compact, Sustainable Development Goals 521 4.3 Balance sheet at 31 December 2016 136 7.8 Report by one of the Statutory Auditors, appointed 4.4 Cash fl ow statement for the year ended as an independent third party, on the consolidated 31 December 2016 137 environmental, labour and social information 4.5 Statement of changes in shareholders’ equity presented in the management report of BNP Paribas 525 between 1 Jan. 2015 and 31 Dec. 2016 138 4.6 Notes to the fi nancial statements prepared in 8 GENERAL INFORMATION 529 accordance with International Financial Reporting Standards as adopted by the European Union 140 8.1 Documents on display 530 4.7 Statutory Auditors’ report on the consolidated 8.2 Material contracts 530 fi nancial statements 232 8.3 Dependence on external parties 530 8.4 Signifi cant changes 531 5 RISKS AND CAPITAL ADEQUACY – PILLAR 3 235 8.5 Investments 531 5.1 Annual risk survey 238 8.6 Information on locations and businesses in 2016 532 5.2 Capital management and capital adequacy 253 8.7 Founding documents and Articles of association 539 5.3 Risk management [Audited] 275 8.8 Statutory Auditors’ special report on regulated 5.4 Credit risk 282 agreements and commitments 544 5.5 Securitisation in the banking book 320 9 5.6 Counterparty credit risk 330 STATUTORY AUDITORS 547 5.7 Market risk 340 9.1 Statutory Auditors 548 5.8 Liquidity risk 360 5.9 Operational, compliance and reputation risks 371 10 PERSON RESPONSIBLE FOR 5.10 Insurance risks 378 THE REGISTRATION DOCUMENT 549 Appendix 1: Exposures based on Financial Stability 10.1 Person responsible for the Registration document Board recommendations 384 and the annual fi nancial report 550 Appendix 2: Sovereign exposures [Audited] 387 10.2 Statement by the person responsible for the Registration document 550 Appendix 3: Regulatory capital – detail 390 Appendix 4: Countercyclical capital buffer 398 11 TABLE OF CONCORDANCE 551 Appendix 5: Capital requirements of significant subsidiaries 399 Appendix 6: List of tables and figures 406 2016 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 7 March 2017, 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. 2016 Registration document and annual fi nancial report - BNP PARIBAS 1 2 2016 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 9 Corporate and Institutional Banking 12 Corporate Centre 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 21 Creating value for shareholders 22 Communication with shareholders 23 Shareholder Liaison Committee 24 Dividend 24 Change in dividend (in euro per share) 25 BNP Paribas registered shares 25 Annual General Meeting of Shareholders 26 Disclosure thresholds 28 2016 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 Belgium, ■ Europe-Mediterranean, France, Italy and Luxembourg. ■ BancWest, It operates in 74 countries and has more than 192,000 employees, ■ Personal Finance, including more than 146,000 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 2012 2013 2014(****) 2015 2016 Revenues (in millions of euros) 39,072 38,409 39,168 42,938 43,411 Gross operating income (in millions of euros) 12,529 12,441 12,644 13,684 14,033 Net income Group share (in millions of euros) 6,564 4,818 157 6,694 7,702 Earnings per share (in euros)(*) 5.17 3.68 4.70(**) 5.14 6.00 Return on equity(***) 8.9% 6.1% 7.7%(**) 8.3% 9.3% (*) 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. See chapter 3 section 3.8 Alternative Performance Measures. (**) 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). See c hapter 3 section 3.8 Alternative Performance Measures. (****) Figures restated following the application of IFRIC 21 interpretation. MARKET CAPITALISATION 31/12/2011 31/12/2012 31/12/2013 31/12/2014 31/12/2015 31/12/2016 Market capitalisation (in billions of euros) 36.7 53.4 70.5 61.4 65.1 75.5 Source: Bloomberg. 4 2016 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 31 December 2015 as at 7 March 2017 Outlook Date of last review Standard & Poor’s A+/A-1 A/A-1 Stable 11 March 2016 Fitch A+/F1 A+/F1 Stable 13 December 2016 Moody’s A1/Prime-1 A1/Prime-1 Stable 28 May 2015 DBRS AA (low)/R-1 (middle) AA (low)/R-1 (middle) Stable 8 August 2016 On 28 May 2015, on completion of its review of 13 global investment On 8 August 2016, DBRS confirmed the long-term credit rating for banks, Moody’s modified its long-term credit rating outlook for BNP Paribas to AA (low) with stable outlook.