2012 Registration document and annual financial report - BNP Paribas

5RISKSAND CAPITAL ADEQUACYCredit risk➤ TABLE 9: EXPOSURE TO CREDIT RISK (*) BY BASEL ASSET CLASS AND APPROACHIn millions of eurosIRBAStandardisedApproach31 December 2012 31 December 2011 VariationTotal2012AverageExposureIRBAStandardisedApproachTotal2011AverageExposureTotalAverageExposureCentral governments andcentral banks 177,612 18,825 196,437 186,526 155,605 21,011 176,616 185,298 19,821 1,228Corporates 360,242 154,986 515,228 540,804 406,617 159,762 566,379 583,601 (51,151) (42,797)Institutions (**) 61,814 26,765 88,579 98,092 80,575 27,031 107,606 117,463 (19,027) (19,371)Retail 195,891 166,865 362,756 367,990 199,570 173,654 373,224 373,769 (10,469) (5,779)Other non creditobligationassets (***) 333 120,467 120,800 119,408 134 117,882 118,016 103,735 2,784 15,673TOTAL EXPOSURE 795,892 487,908 1,283,800 1,312,820 842,501 499,340 1,341,841 1,363,866 (58,041) (51,046)(*) Securitization is the object of a dedicated chapter in section 5.5.(**) Institutions asset class comprises credit institutions and investment firms, including those recognised in other countries. It also includes some exposuresto regional and local authorities, public sector agencies and multilateral development banks that are not treated as central government authorities.(***) Other non credit-obligation assets include tangible assets, payables/receivables and residual values.5In the prudential balance sheet at 31 December 2012 (section 5.2,table 3), credit risk exposures include the following amounts, net ofimpairment: deposits with central banks (EUR 103 billion), loans tocustomers (EUR 630 billion), loans to credit institutions (EUR 39 billion),available for sale assets (EUR 113 billion), held-to-maturity financialassets (EUR 0.4 billion), assets designated as at fair value through profitand loss (EUR 2 billion), remeasurement adjustment on interest-raterisk hedged portfolios (EUR 6 billion), property, plant & equipment andinvestment property (EUR 18 billion), accruals, prepayments and otherassets (EUR 93 billion), current and deferred tax assets (EUR 9 billion)and financing and guarantee commitments given excluding repurchaseagreements (EUR 305 billion).These prudential balance sheet amounts are net of impairments. Onceadjusted for impairments (+EUR 31 billion including EUR 3 billion forvariable-income available for sale assets), risk exposures other thancredit risk (securitisation, counterparty and market risks), revaluationsand other items deducted from own funds (-EUR 65 billion), theseamounts lead to a credit risk exposure of EUR 1, 284 billion.In the rest of this chapter, references to credit risk exposure do not includeother non-credit obligation assets (payables and receivables, tangibleassets and residual value).TRENDS IN CREDIT RISK EXPOSURE IN 2012The Group’s gross credit risk exposure fell by EUR 58 billion in 2012(EUR 61 billion excluding other non-credit obligation assets). Thereduction mainly concerned exposure to corporates and institutionsfollowing the adjustment plan pursued by the Group from September 2011to September 2012 to prepare for the new Basel 3 liquidity and solvencyrequirements.The EUR 51 billion reduction in exposure to corporates is mainlyexplained by the adjustment plan of CIB’s Corporate Banking activities(EUR 45 billion on the whole CIB division ). Exposure to retail clientsdecreased by EUR 10 billion, mainly in Personal Finance (EUR 9 billion).In parallel, exposure to central governments rose by EUR 20 billion due tothe increase in central bank deposits offset by a decline in sovereign debt.2462012 Registration document and annual financial report - BNP PARIBAS