2012 Registration document and annual financial report - BNP Paribas

2012 REVIEW OF OPERATIONSBNP Paribas consolidated results3Non operating items came EUR to 1,791 million. They include theimpact of two exceptional items to the tune of EUR 1,445 million: theEUR 1,790 million capital gain booked in connection with the sale of a28.7% stake in Klépierre S.A. and EUR 345 million in impairments, ofwhich EUR 298 million was an impairment of BNL bc’s goodwill due tothe expected increase in the Bank of Italy’s capital requirements (localcommon equity Tier 1 ratio increased from 7% to 8%).Pre-tax income totalled EUR 10,372 million, up 7.5% compared to lastyear with a negligible net impact of exceptional items: EUR -68 million.The operating divisions posted EUR 11,574 million in pre-tax income, up0.8% compared to 2011.In a still unfavourable environment, BNP Paribas generated thisyear EUR 6,553 million in net income, up from the 2011 level(EUR 6,050 million), thanks to the broad diversification of its businesses.At 8.9%, return on equity was virtually flat compared to last year whenit was 8.8%.Net earnings per share was EUR 5.16 compared to EUR 4.82 in 2011.The net book value per share (1) was EUR 60.8, up 4.5% compared tolast year and its compounded annualised growth rate was 6.5% since31 December 2008, demonstrating BNP Paribas’ ability to continue togrow the net asset value per share throughout the cycle.The Board of Directors will propose to shareholders at the ShareholderMeeting to pay out a dividend of EUR 1.50 per share, which equates toa 29.7% pay-out ratio, to be paid out in cash. This allocation of earningswill enable the Group to reinvest over two-thirds of its profits in businessdevelopment initiatives and in efforts to support its clients.3Capital allocationRevenue from the capital allocated to each division is includedin the division’s profit and loss account. The capital allocated toeach division corresponds to the amount required to comply withEuropean Solvency Ratio requirements under CRD 3 regulation, alsoknown as Basel 2.5, and is based on 9% of risk-weighted assets. Riskweightedassets are calculated as the sum of:■ the risk-weighted assets for credit and counterparty risk,calculated using the standardised approach or the internal ratingsbased approach (IRBA) depending on the particular entity;■ the regulatory capital requirement for market and operationalrisks, multiplied by 12.5. The capital requirement for operationalrisk is calculated using the basic indicator approach, standardisedapproach, or Advanced Measurement Approach (AMA), dependingon the particular entity.Each division is allocated the share of capital deducted prudentiallyfrom Tier 1 capital, in particular 100% of the net asset value ofinvestments in credit and financial institutions.The capital allocated to the Insurance business is equal to thesolvency requirement calculated according to insurance regulations.(1) Not revaluated.2012 Registration document and annual financial report - BNP PARIBAS 77