2007 REGISTRATION DOCUMENT

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5 NotesCONSOLIDATED FINANCIAL STATEMENTSto the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European UnionAcquisition of UkrSibbank (IR FS)On 14 April 2006, BNP Paribas acquired 51% of UkrSibbank. Existingshareholders of UkrSibbank signed a long-term agreement withBNP Paribas and will retain a 49% interest in the Ukrainian entity.UkrSibbank offers a wide range of services in the retail, corporate andinvestment banking arenas. At the acquisition date it was Ukraine’sfifth-largest bank in terms of assets and had a network of 830 branchesand outlets, employing close to 9,500 people.The UkrSibbank Group’s assets and liabilities – which were recognised atfair value at the acquisition date – primarily comprised customer loansamounting to EUR 1,423 million and customer deposits representingEUR 929 million.Goodwill representing the local currency equivalent of EUR 201 million at31 December 2006 was recorded on the consolidation of the UkrSibbankGroup.UkrSibbank has been consolidated since the acquisition date and itscontribution to the BNP Paribas Group’s net income for 2006 was notmaterial. This acquisition led to a net cash outflow of EUR 161 millionfor the BNP Paribas Group in 2006.8.d RELATED PARTIESRelated parties of the BNP Paribas Group comprise consolidatedcompanies (including entities consolidated under the equity method),entities managing post-employment benefit plans offered to Groupemployees (except for multi-employer and multi-industry schemes),and key management personnel of the BNP Paribas Group.Transactions between the BNP Paribas Group and related parties arecarried out on an arm’s length basis.8.d.1< Contents >Relations between consolidatedcompaniesA list of companies consolidated by BNP Paribas is provided in Note8.b “Scope of consolidation”. As transactions and period-end balancesbetween fully-consolidated entities are eliminated in full on consolidation,the tables below only show figures relating to transactions and balanceswith (i) companies over which BNP Paribas exercises joint control(accounted for by the proportionate consolidation method), showingonly the proportion not eliminated on consolidation, and (ii) companiesover which BNP Paribas exercises significant influence (accounted forby the equity method).1234➤RELATED-PARTY BALANCE SHEET ITEMSIn millions of eurosConsolidatedentities underthe proportionatemethod31 December 2007 31 December 2006ConsolidatedConsolidated entities under Consolidatedentities under the the proportionate entities under theequity methodmethod equity methodASSETSLoans, advances and securitiesDemand accounts 12 - 4 4Loans 7,132 1,268 3,955 1,008Securities 54 - 54 -Finance leases - - - -Other assets 8 13 1 10TOTAL 7,206 1,281 4,014 1,022LIABILITIESDepositsDemand accounts 44 412 4 202Other borrowings 12 217 - 2Debt securities 8 293 12 -Other liabilities 30 77 - 40TOTAL 94 999 16 244FINANCING COMMITMENTS AND GUARANTEECOMMITMENTSFinancing commitments given 84 3 10 37Guarantee commitments given 12 1 10 1TOTAL 96 4 20 385678910112102007 Registration document - BNP PARIBAS
CONSOLIDATED FINANCIAL STATEMENTS5Notes to the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European Union< Contents >Within the scope of its International Retail banking and Financial Services business, the Group also carries out trading transactions with relatedparties involving derivatives (swaps, options and forwards) and financial instruments (equities, bonds etc.). These transactions are carried out on anarm’s length basis.➤RELATED-PARTY PROFIT AND LOSS ITEMSIn millions of eurosConsolidatedentities underthe proportionatemethodYear to 31 Dec 2007 Year to 31 Dec 2006ConsolidatedConsolidated entities under Consolidatedentities under the the proportionate entities under theequity methodmethod equity methodInterest income 236 40 115 43Interest expense (2) (24) (1) (1)Commission income 22 21 3 21Commission expense (6) (53) (26) (38)Services provided 2 117 1 29Services received - (308) - (255)Lease income 2 - 2 -TOTAL 254 (207) 94 (201)12348.d.2Entities managing post-employmentbenefit plans offered to GroupemployeesThe main post-employment benefits of the BNP Paribas Group areretirement bonus plans, and top-up defined-benefit and definedcontributionpension plans.In France, some of these benefits are paid by the BNP and Paribas pensionfunds (Caisses de retraite) and the BNP welfare benefit fund (Caisse dePrévoyance). As from 1 January 2006, the obligations concerning pensionbenefits paid by the BNP pension fund have been assumed in full byBNP Paribas SA. The BNP pension fund was liquidated in the first halfof 2007. Furthermore, over the six months to 30 June 2007, all of thepension benefits provided by the Paribas pension fund as well as theprovisions for retirement bonuses existing within the BNP welfare benefitfund were transferred to an external insurance company.In other countries, post-employment benefit plans are generally managedby independent fund managers or independent insurance companies,and occasionally by Group companies (in particular BNP Paribas AssetManagement, BNP Paribas Assurance, Bank of the West and FirstHawaiian Bank). In Switzerland, a dedicated foundation manages benefitplans for BNP Paribas Switzerland’s employees.At 31 December 2006, the value of plan assets managed by Groupcompanies was EUR 991 million (EUR 1,174 million at 31 December2006). Amounts received relating to services provided by Group companiesin the year to 31 December 2007 totalled EUR 1.1 million, and mainlycomprised management and custody fees (2006: EUR 1.4 million).At 31 December 2007, the BNP and Paribas pension funds and theBNP welfare benefit fund showed a credit balance of EUR 44,040in the Group’s accounting books (compared with a credit balance ofEUR 216,767 at 31 December 2006).8.d.3Relations with key managementpersonnelRemuneration and benefits awarded to the Group’scorporate officersRemuneration and benefits policy relating to the Group’scorporate officersRemuneration paid to the Group’s corporate officers■ The remuneration paid to the Group’s corporate officers is determinedby the method recommended by the Compensation Committee andapproved by the Board of Directors.■ This remuneration comprises both a fixed and a variable component,the levels of which are determined using market benchmarksestablished by firms specialised in surveys of executive remunerationin the European banking sector.■ The variable component is determined by reference to a basic bonuswhich is calculated as a proportion of the officer’s fixed remunerationand varies in line with Group performance criteria as well as theattainment of personal objectives.■ Group performance criteria account for 70% of the basic bonus andcomprise parameters including earnings per share, core businesspre-tax net income, and the fulfilment of gross operating incometargets at consolidated and core business level.■ Personnel objective-based criteria concern managerial performanceas assessed by the Board of Directors. The Board’s assessment is madein view of the foresight, decision-making and leadership skills shownby the officer in implementing the Group’s strategy and preparingits future. These criteria are clearly defined and account for 30% ofthe basic bonus.■ The variable component of corporate officers’ remuneration is cappedat a level set in proportion to the basic remuneration, and since 2005has been paid in full during the following year.■ The Chairman of the Board of Directors, the Chief Executive Officerand the Chief Operating Officers do not receive any remunerationfrom Group companies except BNP Paribas SA.5678910112007 Registration document - BNP PARIBAS 211
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2007REGISTRATION DOCUMENT
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2007 Registration documentThis docu
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1 TheTHE BNP PARIBAS GROUPBNP Parib
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THE BNP PARIBAS GROUP1The Group’s
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1 ShareholderTHE BNP PARIBAS GROUPi
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2 BoardCORPORATE GOVERNANCEof Direc
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2 StatutoryCORPORATE GOVERNANCEAudi
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3RISK MANAGEMENT< Contents >3.4 Ris
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3 RiskRISK MANAGEMENTfactorsLIQUIDI
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3 RiskRISK MANAGEMENTfactorsDETERIO
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4 Balance2007 REVIEW OF OPERATIONSs
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2007 REVIEW OF OPERATIONS4 Outlook<
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2007 REVIEW OF OPERATIONS4 OutlookA
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5CONSOLIDATED FINANCIAL STATEMENTS<
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5 ProfitCONSOLIDATED FINANCIAL STAT
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5 NotesCONSOLIDATED FINANCIAL STATE
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8 DocumentsGENERAL INFORMATIONon di
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8 FoundingGENERAL INFORMATIONdocume
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8 YearGENERAL INFORMATIONended 31 D
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9 StatutorySTATUTORY AUDITORSAudito
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10 PersonPERSON RESPONSIBLE FOR THE
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11TABLE OF CONCORDANCE< Contents >H
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2007 REGISTRATION DOCUMENT

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