2012 Registration document and annual financial report - BNP Paribas

2012 REVIEW OF OPERATIONSBalance sheet3The total value of financial liabilities at fair or model value through profitor loss was down 8% compared to 31 December 2011, due mainly tothe decrease in the replacement value of derivatives, which fell 10%, orEUR 42.9 billion, to EUR 404.6 billion at 31 December 2012, with creditderivatives declining sharply to EUR 23.8 billion at 31 December 2012,down 51% from a year earlier.AMOUNTS DUE TO CREDIT INSTITUTIONSAmounts due to credit institutions consist primarily of borrowings, and ,to a lesser extent, demand deposits and repurchase agreements.Amounts due to credit institutions shrank 25%, or EUR 37.4 billion, toEUR 111.7 billion at 31 December 2012. This decline mainly reflects a21%, or EUR 25.5 billion, decrease in borrowings from credit institutionsto EUR 93.9 billion at year-end, as well as a 30% or EUR 3.5 billion, fallin repurchase agreements to EUR 8.0 billion at 31 December 2012 anda 46% or EUR 8.5 billion reduction in current accounts to 9.8 billion at31 December 2012.AMOUNTS DUE TO CUSTOMERSAmounts due to customers consist primarily of demand deposits, termaccounts, regulated savings accounts, and repurchase agreements.Amounts due to customers stood at EUR 539.5 billion at 31 December 2011,down 1%, or EUR 6.8 billion, from EUR 546.3 billion a year earlier. Thisdecrease was due to a 68%, or EUR 15.9 billion, reduction in repurchaseagreements to EUR 7.3 billion at 31 December 2012, partly offset byincreases of 2% (EUR 5.2 billion) in demand deposits to EUR 259.8 billionand of 11% (EUR 5.8 billion) in regulated savings accounts to 60.4 billionat 31 December 2012.DEBT SECURITIESDebt securities consist of negotiable certificates of deposit and bondissues. They do not include debt securities classified as financialliabilities at fair or model value through profit or loss (see note 5.a tothe consolidated financial statements).Debt securities totalled EUR 173.2 billion at 31 December 2012, up 10%from EUR 157.8 billion at 31 December 2011. This net increase is dueto a 15% rise in negotiable certificates of deposit to EUR 155.9 billion,partially offset by a 24% decrease in bond issues to EUR 17.3 billion at31 December 2012.SUBORDINATED DEBTSubordinated debt totalled EUR 15.2 billion at 31 December 2012, down23% from EUR 19.7 billion a year earlier.TECHNICAL RESERVES OF INSURANCECOMPANIESTechnical reserves of insurance companies amounted to EUR 148.0 billionat 31 December 2012, up 11% from EUR 133.1 billion at 31 December 2011.This increase is primarily due to higher technical reserves at the lifeinsurance business.ACCRUED EXPENSES AND OTHERLIABILITIESAccrued expenses and other liabilities consist of guarantee depositsreceived, settlement accounts related to securities transactions, collectionaccounts, accrued expenses and deferred income, and other creditors andmiscellaneous liabilities. Accrued expenses and other liabilities increased7%, from EUR 81.0 billion at 31 December 2011 to EUR 86.7 billion at31 December 2012.3MINORITY INTERESTSMinority interests contracted to EUR 8.5 billion at 31 December 2012,down from EUR 10.3 billion at 31 December 2011. This decrease mainlyreflects a EUR 0.8 billion contribution to net income, less EUR 2.0 billionfrom the change in the method of accounting for Klépierre, which is nowtreated as an associate, a EUR 0.7 billion redemption of preferred shares,EUR 0.3 billion for partial reimbursement of shares held by a minorityshareholder, and EUR 0.2 billion of dividend payouts.Changes in assets and liabilities recognised directly in equity amountedto EUR 0.9 billion.2012 Registration document and annual financial report - BNP PARIBAS 91