2012 Registration document and annual financial report - BNP Paribas

2012 REVIEW OF OPERATIONSBalance sheet33.3 Balance sheetASSETSOVERVIEWThe Group’s consolidated assets amounted to EUR 1,907.3 billionat 31 December 2012, down 3% from EUR 1,965.3 billion at31 December 2011. The main components of the Group›s assetsare financial assets at fair value through profit or loss, loans andreceivables due from customers, available-for-sale financial assets,loans and receivables due from credit institutions, and accrued incomeand other assets, which together accounted for 91% of total assets at31 December 2012 (vs. 93% at 31 December 2011). The 3% decrease inassets at 31 December 2012 is due to:■ a 7%, decline in financial instruments at fair value through profit orloss, due mainly to a fall in derivatives;■ a 5%, or EUR 35.3 billion, decline in loans and receivables due fromcustomers to EUR 630.5 billion;■ a 92%, or EUR 10.5 billion, decline in investment property toEUR 0.9 billion, following the sale of a 28.7% interest in Klépierre SA.These change s were partially offset by a 77%, or EUR 44.8 billion, increasein the amounts deposited with central banks to EUR 103.2 billion.FINANCIAL ASSETS AT FAIR OR MODELVALUE THROUGH PROFIT OR LOSSFinancial assets at fair or model value through profit or loss consist oftrading account transactions, derivatives and certain assets designatedby the Group as at fair or model value through profit or loss at the timeof acquisition. Financial assets carried in the trading book mainly includesecurities, loans and repurchase agreements. Assets designated by theGroup as at fair or model value through profit or loss include admissibleinvestments related to unit-linked insurance contracts, and, to a lesserextent, assets with embedded derivatives that have not been separatedfrom the host contract.These assets are remeasured at fair or model value at each balancesheet date.Total financial assets at fair value through profit or loss were down7% compared to 31 December 2011. This decrease mainly reflectsa 9%, or EUR 41.3 billion, decline in the replacement value ofderivatives to EUR 410.6 billion at 31 December 2012. The decline wasparticularly pronounced for credit derivatives, which dropped by 51% orEUR 23.7 billion at 31 December 2012.LOANS AND RECEIVABLES DUE FROMCREDIT INSTITUTIONSLoans and receivables due from credit institutions totalledEUR 40.4 billion at 31 December 2012, down 18% from EUR 49.4 billionat 31 December 2011, and are comprised of demand accounts, interbankloans, and repurchase agreements.Most of this decrease is due to a reduction in loans to credit institutions,which fell 20% to EUR 28.3 billion at 31 December 2012, down fromEUR 35.1 billion at 31 December 2011. Demand accounts also declined28% to EUR 8.7 billion at 31 December 2012, down from EUR 12.1 billiona year earlier. Impairment provisions edged down slightly, fromEUR 0.7 billion at year-end 2011 to EUR 0.5 billion at year-end 2012.LOANS AND RECEIVABLES DUE FROMCUSTOMERSLoans and receivables due from customers consist of demand accounts,loans to customers, repurchase agreements, and finance leases.Loans and receivables due from customers (net of impairment provisions)amounted to EUR 630.5 billion at 31 December 2012, down 5% fromEUR 665.8 billion at 31 December 2011. This decline can be attributedto a 7% decrease in loans to customers, from EUR 624.3 billion at yearend2011 to EUR 583.4 billion at year-end 2012, while demand accountsincreased by 13% over the year to EUR 43.4 billion at 31 December 2012.Finance leases declined 6% to EUR 28.0 billion at 31 December 2012 andrepurchase agreements rose 53% to EUR 2.2 billion at 31 December 2012.Impairment provisions fell 5% to EUR 26.5 billion at 31 December 2012from EUR 28.0 billion a year earlier.AVAILABLE-FOR-SALE FINANCIAL ASSETSAvailable-for-sale financial assets are fixed-income and variable-incomesecurities that are not managed in the same way as financial assets atfair or model value through profit or loss and, with respect to fixedincomeinstruments, are not intended to be held until maturity . Theseassets are remeasured at market or similar value through equity at eachbalance sheet date.Available-for-sale financial assets remained stable between31 December 2011 and 31 December 2012, at EUR 192.5 billion (netof provisions).32012 Registration document and annual financial report - BNP PARIBAS 89