2012 Registration document and annual financial report - BNP Paribas

32012REVIEW OF OPERATIONSBNP Paribas consolidated results3.1 BNP Paribas consolidated resultsIn millions of euros 2012 2011 2012/2011Revenues 39,072 42,384 -7.8%Operating Expenses and Dep. (26,550) (26,116) +1.7%Gross Operating Income 12,522 16,268 -23.0%Cost of Risk (3,941) (6,797) -42.0%3Operating Income 8,581 9,471 -9.4%Share of Earnings of Associates 489 80 n.s.Other Non Operating Items 1,302 100 n.s.Non Operating Items 1,791 180 n.s.Pre-Tax Income 10,372 9,651 +7.5%Corporate Income Tax (3,059) (2,757) +11.0%Net Income Attributable to Minority Interests (760) (844) -10.0%Net Income Attributable to Equity Holders 6,553 6,050 +8.3%Cost/Income 68.0% 61.6% +6.4 ptADAPTATION PLAN COMPLETED AND SOLID RESULTSIN A CHALLENGING ECONOMIC ENVIRONMENTThis year, the Group completed its plan to adapt to new regulationsahead of the schedule announced: CIB’s funding needs in US dollars werereduced by USD 65 billion by April 2012 and the Group surpassed its goalof increasing the fully-loaded Basel 3 common equity Tier 1 ratio (1) by100 basis points by the end of September 2012. The ratio was 9.9% as at31 December 2012, illustrating the Group’s high level of solvency. Therisk-weighted assets were cut by EUR 62 billion since 31 December 2011.BNP Paribas achieved this year solid results in a challenging economicenvironment: the eurozone slid back into recession (GDP: -0.4%) andthe crisis in the capital markets carried on throughout most of the year.Against this backdrop, revenues totalled EUR 39,072 million, down 7.8%compared to 2011. It includes this year the impact of four significantexceptional items, which total EUR -1,513 million: losses from the saleof sovereign bonds (EUR -232 million), losses from the sale of loans(EUR -91 million), own credit adjustment (EUR -1,617 million) and aone-off amortisation of a part of Fortis PPA due to early redemptions(EUR +427 million). The revenues of the operating divisions edgedup 0.8%, showing their good resilience, with a rise of 0.4% for RetailBanking (2) , 4.8% for Investment Solutions and a 1.8% drop for CIB.Operating expenses, which totalled EUR 26,550 million, were undercontrol, up slightly 1.7%. They were down 0.1% in Retail Banking (2) , up1.4% in Investment Solutions and 2.4% at CIB (-1.1% at constant scopeand exchange rates).Gross operating income was thus down 23.0% during the period toEUR 12,522 million. It was up however 0.8% in the operating divisions.The Group’s cost of risk, which came to EUR 3,941 million or 58 basispoints of outstanding customer loans, was down 42.0% compared to 2011which included the EUR 3,241 million impact due to the Greek assistanceprogramme. Excluding the impact of provisions set aside for Greek bonds,the cost of risk was up moderately 9.2%.(1) Common equity Tier 1 ratio, taking into account all the rules of the CRD 4 directives with no transitory provisions, which will only enter into force on 1 January 2019, and asanticipated by BNP Paribas.(2) Including 100% of Private Banking of the domestic markets, excluding PEL/CEL effects.762012 Registration document and annual financial report - BNP PARIBAS