2012 Registration document and annual financial report - BNP Paribas

RISKS AND CAPITAL ADEQUACYCredit risk5➤ FIGURE 5: BREAKDOWN OF IRBA RETAIL EXPOSURES BY CREDIT RATING% of exposure25%Excellent, good and average risksUnder credit watch20%31 December 2012 31 December 201115%10%5%0%Average PDat one year0.06%horizon at 31/12/2012Rating 20.24%30.36%41.23%51.61%64.97%79.77%812.78%936,09%10Trends in probabilities of default in the retail banking book were affected in 2012 by the implementation of a different methodology for taking accountof regulatory adjustments required by the supervisor. However, these trends do not affect the book's risk-weighted assets. .RETAIL PORTFOLIO BY CLASSAND INTERNAL RATINGThe following table gives the breakdown by internal rating of the retailloans and commitments for all of the Group’s business lines using theadvanced IRB Approach. This exposure represented EUR 196 billion at31 December 2012, compared with EUR 200 billion at 31 December2011, and primarily concerns French Retail Banking (FRB), Belgian RetailBanking, Luxembourg Retail and Corporate Banking and consumer loansubsidiaries of BNP Paribas Personal Finance in Western Europe.52012 Registration document and annual financial report - BNP PARIBAS 259