2012 Registration document and annual financial report - BNP Paribas

RISKS AND CAPITAL ADEQUACYCredit risk5CREDIT RISK DIVERSIFICATION [Audited]The Group’s gross exposure to credit risk stands at EUR 1, 163 billion at31 December 2012, compared with EUR 1, 224 billion at 31 December 2011.This portfolio, which is analysed below in terms of its diversification,comprises all exposures to credit risk shown in table “Exposure to creditrisk by Basel asset class” excluding other non credit-obligation assets (1) .A dedicated chapter (chapter 5.5) describes banking book securitisationsexposures.No single counterparty gives rise to an excessive concentration of creditrisk, due to the size of the business and the high level industrial andgeographical diversification of the client base. The breakdown of creditrisks by industry and by region is presented in the tables below.GEOGRAPHIC DIVERSIFICATIONCountry risk is the sum of all exposures to obligors in the countryconcerned. It is not the same as sovereign risk, which is the sum of allexposures to the central government and its various branches. Countryrisk reflects the Bank’s exposure to a given economic and politicalenvironment, which are taken into consideration when assessingcounterparty quality.The geographic breakdown below is based on the country where thecounterparty conducts its principal business activities, without taking intoaccount the location of its head office. Accordingly, a French company’sexposure arising from a subsidiary or branch located in the UnitedKingdom is classified in the United Kingdom.➤ TABLE 11: GEOGRAPHIC BREAKDOWN OF CREDIT RISK BY COUNTERPARTY’S COUNTRY OF BUSINESSAT 31 DECEMBER 2012In millions of euros31 December 2012Centralgovernments andcentral banks Corporates Institutions Retail Total %Domestic markets 103,721 233,692 40,498 277,040 654,951 56%France 58,376 116,244 20,248 159,182 354,050 30%Belgium 28,128 42,978 8,069 60,722 139,897 12%Luxembourg 4,429 8,970 940 5,541 19,880 2%Italy 12,788 65,500 11,241 51,595 141,124 12%Other Europe 26,931 110,834 17,648 45,688 201,101 17%Africa & Mediterranean 7,931 38,006 5,964 13,054 64,955 6%Americas 37,972 91,907 16,282 26,534 172,695 15%Asia & Pacific 19,882 40,789 8,187 440 69,298 6%TOTAL 196,437 515,228 88,579 362,756 1,163,000 100%5(1) The scope covered includes loans and receivables due from customers, amounts due from credit institutions and central banks, the Group’s credit accounts with other creditinstitutions and central banks, financing and guarantee commitments given (excluding repos) and fixed-income securities in the banking book.2012 Registration document and annual financial report - BNP PARIBAS 251