2012 Registration document and annual financial report - BNP Paribas

RISKS AND CAPITAL ADEQUACYCredit risk5RETAIL PORTFOLIO [Audited]The total exposure of retail loans and commitments for all of the Group’sbusiness lines using the standard approach represented EUR 167 billionat 31 December 2012, compared with EUR 174 billion at 31 December2011.TOTAL PORTFOLIOThe following table gives the breakdown by counterparty credit ratingof the loans and commitments for all the Group business lines using thestandardised approach. This exposure represented EUR 367 billion of thegross credit risk at 31 December 2012, compared with EUR 381 billionat 31 December 2011.➤ TABLE 17: CREDIT RISK EXPOSURE BY CLASS AND EXTERNAL RATING IN THE STANDARDISED APPROACHrating (*) In millions of eurosexposure (**) Default (EAD) assets (RWA) exposure (**) Default (EAD) assets (RWA)31 December 2012 31 December 2011ExternalGross Exposure at Risk-weightedGross Exposure at Risk-weightedCentral governments andcentral banks AAA to AA- 11,227 11,216 13 12,533 12,503 58A+ to A- 746 746 38 2,707 2,675 66BBB+ to BBB- 1,823 1,753 508 933 919 451BB+ to BB- 2,628 2,626 1,133 2,591 2,587 835B+ to B- 898 888 888 1,221 1,206 1,206No externalrating 1,503 1,486 1,162 1,026 1,014 842TOTAL 18,825 18,715 3,742 21,011 20,904 3,458Institutions AAA to AA- 13,723 12,960 1,590 16,821 15,890 2,292A+ to A- 240 211 100 6,504 6,037 2,566BBB+ to BBB- 9,424 7,279 4,956 537 463 438BB+ to BB- 975 801 801 811 621 621B+ to B- 269 245 176 361 314 315CCC+ to D 6 5 8 7 6 8No externalrating 2,128 1,996 877 1,990 1,822 1,042TOTAL 26,765 23,497 8,508 27,031 25,153 7,282Corporates AAA to AA- 80 79 16 200 184 37A+ to A- 1,875 1,295 648 3,217 2,669 1,332BBB+ to BBB- 2,498 1,736 1,709 791 632 628BB+ to BB- 337 213 212 427 321 314B+ to B- 308 252 378 113 76 114CCC+ to D 17 14 20 1 1 1No externalrating 149,871 113,043 109,926 155,013 118,789 114,657TOTAL 154,986 116,632 112,909 159,762 122,672 117,083RetailNo externalrating 166,865 142,534 80,589 173,654 147,635 82,922TOTAL 166,865 142,534 80,589 173,654 147,635 82,922TOTAL 367,440 301,378 205,748 381,458 316,364 210,745(*) According to Standard and Poor’s.(**) Balance sheet and off-balance sheet.5The downgrading of some eurozone countries, particularly Italy, has ledto a shift from the two best categories to the third for the Institutionsexposure class.Group entities that use the standardised approach to calculate theircapital requirement typically have a business model focused primarilyon individuals or SMEs or are located in a region of the world with anunderdeveloped credit rating system (Turkey, Ukraine, Middle East, etc.).As a result, most of corporate counterparties do not have an externalrating under the standardised approach.2012 Registration document and annual financial report - BNP PARIBAS 263