2012 Registration document and annual financial report - BNP Paribas

32012REVIEW OF OPERATIONSLiquidity and financing3.7 Liquidity and financing3The Group’s liquidity position is very strong.The Group’s cash balance sheet (1) totalled EUR 974 billion as at31 December 2012. Equity, customer deposits and medium-and long-termresources represent a surplus of EUR 69 billion (of which USD 52 billion)compared to the funding needs of the client activity and tangible andintangible assets. This surplus more than doubled compared to whatit was as at 31 December 2011 (EUR 31 billion) and is virtually flatcompared to last quarter (EUR 71 billion). Stable resources amountto 110% of funding needs of customer activity, including tangible andintangible assets.The Group’s liquid and asset reserves immediately available totalledEUR 221 billion (compared to EUR 160 billion as at 31 December 2011),which equates to 119% of the short-term cash resources.The Group’s 2013 medium- and long-term funding programme amountsto EUR 30 billion. By the end of January 2013, EUR 11 billion have alreadybeen raised (2) from issues with an average maturity of 4.8 years and anaverage spread of 73 basis points above mid-swap (compared to 109 basispoints on average for the 2012 programme). The Group therefore has adiversified medium- and long-term funding at good conditions, and whichare improving.3.8 SolvencyThe Group’s solvency is very high.Common equity Tier 1 capital totalled EUR 65.1 billion as at31 December 2012, up EUR 6.2 billion compared to what it was at31 December 2011, thanks primarily to retaining most of the earnings.Risk-weighted assets (3) were EUR 552 billion, down EUR 62 billioncompared to what it was as at 31 December 2011, primarily due to theadaptation plan.Thus, as at 31 December 2012, the common equity Tier 1 ratio, whichincludes the European Capital Requirements Directive 3 (CRD 3) regulatoryregime that came into force at the end of 2011, was 11.8%, up 220 basispoints compared to what it was as at 31 December 2011.The Basel 3 common equity Tier 1 ratio, taking into account all the rulesof the CRD 4 (4) with no transitory provisions (Basel 3 fully loaded that willcome into force only on 1 January 2019) was 9.9% as at 31 December 2012and up 40 basis points compared to what it was as at 30 September 2012due to reduction of risk-weighted assets (+15 basis points), the impact ofnet income from the quarter (+10 basis points) as well as the appreciationof available for sale securities (+10 basis points). It illustrates the Group’shigh level of solvency within the new regulations, the 9% objective bythe end of 2012 set during the launch of the adaptation plan thereforebeing largely surpassed.(1) Based on the banking prudential scope and after netting amounts for derivatives, repos, securities lending/borrowing and payables/receivables.(2) Including issues at the end of 2012 on top of the 34 billion euros completed under the 2012 programme.(3) Basel 2.5.(4) CRD 4 as anticipated by BNP Paribas. Since CRD 4 is still being debated in the European Parliament, its directives remain subject to interpretation and can still be amended.1002012 Registration document and annual financial report - BNP PARIBAS