2012 Registration document and annual financial report - BNP Paribas

2012 REVIEW OF OPERATIONSCore business results3For the whole of 2012, BancWest had a good sales and marketingdrive in a more favourable environment. Deposits grew by 8.3% (1)compared to 2011, driven by the strong growth of currentaccounts and savings accounts. Loans were up 3.5% (1) due to goodgrowth in corporate loans (+14.7% (1) ) and the success of businessinvestments in the SME segment. The sales and marketingdrive was also reflected in the revving up of the Private Bankingexpansion, the modernisation of the branch network and anexpanded Mobile Banking offering.Revenues edged down 0.6% (1) compared to 2011 as a result of the negativeimpact of regulatory changes on fees. Excluding this impact, revenueswere up 0.8% (1) , the effect of higher volumes being offset by lower interestrates.Operating expenses rose by 4.5% (1) compared to 2011, due to thestrengthening of the corporate and small business as well as PrivateBanking set up.The cost of risk was down at 35 basis points of outstanding customerloans, which equates to a 47.8% (1) decline compared to 2011.With EUR 859 million in pre-tax income, up 7.1% (1) compared to 2011,BancWest demonstrated its strong profit-generation capacity, whilstexpanding the product offering.PERSONAL FINANCEIn millions of euros 2012 2011 2012/2011Revenues 4,982 5,142 -3.1%Operating Expenses and Dep. (2,387) (2,420) -1.4%Gross Operating Income 2,595 2,722 -4.7%Cost of Risk (1,497) (1,639) -8.7%Operating Income 1,098 1,083 +1.4%Associated Companies 87 95 -8.4%Other Non Operating Items 95 65 +46.2%Pre-Tax Income 1,280 1,243 +3.0%Cost/Income 47.9% 47.1% +0.8 ptAllocated Equity (€bn) 5.0 4.9 +0.6%3For the whole of 2012, Personal Finance continued to developengines of growth with, in particular, the successful joint venturewith Commerzbank in Germany, the implementation of theagreement with Sberbank in Russia, and the signing of newpartnership agreements (for instance, with the Cora hypermarketsin France and with Sony in Germany in e-commerce). Outstandingloans were down 0.5% compared to 2011, at EUR 89.9 billion.Outstanding consumer loans rose by 0.5% with, in particular, agood sales and marketing drive in Germany and Belgium. As formortgages, the implementation of the adaptation plan underBasel 3 has resulted in a continued decline in outstandings(-1.8%). These combined effects and in particular the impact ofnew regulations in France on margins drove revenues down 3.1%compared to 2011 at EUR 4,982 million.Operating expenses were down 1.4% compared to 2011, atEUR 2,387 million. Excluding adaptation costs (EUR 95 million in 2012),they were 3.8% lower.With risks under control, the cost of risk, which was EUR 1,497 million,or 167 basis points of outstanding customer loans, was downEUR 142 million compared to 2011.Pre-tax income totalled EUR 1,280 million, up 3.0% compared to last year,demonstrating the business unit’s good profit-generation capacity in achallenging environment.(1) At constant scope and exchange rates.2012 Registration document and annual financial report - BNP PARIBAS 83