2012 Registration document and annual financial report - BNP Paribas

2012 REVIEW OF OPERATIONSProfit and loss account3NET INCOME FROM OTHER ACTIVITIESThis line item consists of net income from insurance activities, investmentproperty, assets leased under operating leases, and property developmentactivities, as well as other net income. Net income from other activitiesdeclined by 19%, from EUR 5,971 million in 2011 to EUR 4,859 million in2012, due primarily to decreases of EUR 390 million in net income frominsurance activities and of EUR 604 million in net income from investmentproperties following the disposal of the Klépierre group.The principal components of net income from insurance activities aregross premiums written, movements in technical reserves, claims andbenefit expenses, and changes in the value of admissible investmentsrelated to unit-linked contracts. Claims and benefits expenses includeexpenses arising from surrenders, maturities, and claims relating toinsurance contracts, as well as changes in the value of financial contracts(in particular unit-linked contracts). Interest paid on such contracts isrecognised under “ Interest and related expenses ”.The decrease in net income from insurance activities in 2012 isattributable mainly to a fall in technical reserves, which dropped from apositive EUR 1,572 million in 2011 to a negative EUR 4,246 million in 2012.This change is primarily due to an increase in the value of admissibleinvestments related to unit-linked contracts, which went from a net lossof EUR 1,597 million in 2011 to a net gain of EUR 3,361 million in 2012.Gross premiums written increased from EUR 16,288 million in 2011 toEUR 19,813 million in 2012. The claims and benefits expense rose fromEUR 12,484 million in 2011 to EUR 15,267 million in 2012.3OPERATING EXPENSES, DEPRECIATION, AND AMORTISATIONIn millions of euros 2012 2011Change(2012/2011)Operating expenses (25,007) (24,608) 2%Depreciation, amortisation, and impairment of property, plant and equipmentand intangible assets (1,543) (1,508) 2%TOTAL OPERATING EXPENSES, DEPRECIATION, AND AMORTISATION (26,550) (26,116) 2%Operating expenses, depreciation and amortisation registered a controlled increase of 2%, rising from EUR 26,116 million in 2011 toEUR 26,550 million in 2012.GROSS OPERATING INCOMEThe Group’s gross operating income declined 23% to EUR 12,522 million in 2012 (from EUR 16,268 million in 2011), primarily owing to an 8% fall inrevenues and a 2% increase in operating expenses.2012 Registration document and annual financial report - BNP PARIBAS 95