2012 Registration document and annual financial report - BNP Paribas

2012 REVIEW OF OPERATIONSCore business results3ADVISORY AND CAPITAL MARKETSIn millions of euros 2012 2011 2012/2011Revenues 6,182 5,665 +9.1%Incl. Equity and Advisory 1,628 2,077 -21.6%Incl. Fixed Income 4,554 3,588 +26.9%Operating Expenses and Dep. (4,574) (4,377) +4.5%Gross Operating Income 1,608 1,288 +24.8%Cost of Risk (61) 21 n.s.Operating Income 1,547 1,309 +18.2%Associated Companies 12 17 -29.4%Other Non Operating Items (6) 13 n.s.Pre-Tax Income 1,553 1,339 +16.0%Cost/Income 74.0% 77.3% -3.3 ptAllocated Equity (€bn) 7.9 6.7 +17.4%3Advisory and Capital Markets’ revenues were resilient in achallenging environment. They totalled EUR 6,182 million, down5.4% (1) compared to 2011, due to an environment that was notvery favourable in Europe, the adaptation to Basel 3 and lowclient business at the end of the year. In 2012, the average VaRremained very low.Fixed Income’s revenues, which were EUR 4,554 million, rose 2.2% (1)compared to 2011, due to the good performance of flow business inRate, Forex and Credit, with particularly strong growth in bond secondarymarkets. The business unit also maintained its leading positions on bondissues: number 1 in euro and number 8 for all international issues.Equities and Advisory’s revenues, at EUR 1,628 million, decreased 21.6%compared to last year due in part to low transaction volumes and limitedinvestor demand. The business did, however, maintain solid positions,ranking number 3 as bookrunner for equity-linked products in Europe.CORPORATE BANKINGIn millions of euros 2012 2011 2012/2011Revenues 3,533 4,232 -16.5%Operating Expenses and Dep. (1,698) (1,749) -2.9%Gross Operating Income 1,835 2,483 -26.1%Cost of Risk (432) (96) n.s.Operating Income 1,403 2,387 -41.2%Non Operating Items 30 50 -40.0%Pre-Tax Income 1,433 2,437 -41.2%Cost/Income 48.1% 41.3% +6.8 ptAllocated Equity (€bn) 8.4 10.1 -17.3%(1) Excluding losses from the sale of sovereign bonds in 2011.2012 Registration document and annual financial report - BNP PARIBAS 87