BNP PARIBAS BNP PARIBAS
CORPORATE GOVERNANCE
Jean LEMIERRE
Chairman
April 2024
Disclaimer
The figures included in this presentation are unaudited.
As a reminder, on 2 May 2023, BNP Paribas reported restated quarterly series for 2022 to reflect for each quarter: (i) the application of IFRS 5 relating to disposal groups of assets and liabilities held for sale, following the sale of Bank of the West on 1 February 2023; (ii) the application of IFRS 17 (Insurance Contracts) and the application of IFRS 9 for insurance entities, effective 1 January 2023; (iii) the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) to Türkiye, effective 1 January 2022; and (iv) the internal transfers of activities and results at Global Markets and Commercial & Personal Banking in Belgium. The quarterly series for 2022 have been restated for these effects as if they had occurred on 1 January 2022. Furthermore, on 11 December 2023, BNP Paribas reported restated quarterly series for 2022 and 2023 to reflect the internal transfer of activities within Global Markets, a transfer without effects on the business line's total results. On 31 January 2024, BNP Paribas reported a restatement of 9M23 distributable Net Income to reflect the reclassification of exceptional items as extraordinary items. This presentation reflects all the aforementioned restatements.
This presentation includes forward-looking statements based on current beliefs and expectations about future events. Forward-looking statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future events, operations, products and services, and statements regarding future performance and synergies. Forward-looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about BNP Paribas and its subsidiaries and investments, developments of BNP Paribas and its subsidiaries, banking industry trends, future capital expenditures and acquisitions, changes in economic conditions globally, or in BNP Paribas' principal local markets, the competitive market and regulatory factors. Those events are uncertain; their outcome may differ from current expectations which may in turn significantly affect expected results. Actual results may differ materially from those projected or implied in these forward-looking statements. Any forward-looking statement contained in this presentation speaks as of the date of this presentation.
BNP Paribas undertakes no obligation to publicly revise or update any forward-looking statements in light of new information or future events. It should be recalled in this regard that the Supervisory Review and Evaluation Process is carried out each year by the European Central Bank, which can modify each year its capital adequacy ratio requirements for BNP Paribas.
The information contained in this presentation as it relates to parties other than BNP Paribas or derived from external sources has not been independently verified and no representation or warranty expressed or implied is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained herein. Neither BNP Paribas nor its representatives shall have any liability whatsoever in negligence or otherwise for any loss however arising from any use of this presentation or its contents or otherwise arising in connection with this presentation or any other information or material discussed.
The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding. The alternative performance measures are defined in the press release published jointly with this presentation.
2
The BNP Paribas Fundamentals
Corporate Governance within BNP Paribas The Board of Directors and its Committees Corporate Officers' Compensation
Appendix
Strong European Group with International Reach
182,657 employees in 63 countries*
EUROPE 146,051
58,126 excluding domestic markets
NORTH AMERICA
4,846
MIDDLE-EAST
488
SOUTH AMERICA
4,263
AFRICA
5,661
BNP Paribas in the world
ASIA PACIFIC
21,348
FRANCE
55,710
ITALY
15,931
LUXEMBOURG
3,552
BELGIUM
12,732
80% of staff in Europe, of which 48% in the 4 Domestic Markets and 30% in France
* Figures as at 31 December 2023. The number of employees is reported in full-time equivalent.
Corporate Governance - April 2024 | 4 |
BNP Paribas benefits from a strong and resilient business model through economic cycles
Client-centric
A long-term approach strengthened by
solid risk management
Integrated
Full coverage of client needs, with
leading franchises in Europe
- A resilient, growth- generating model
Net Income1 (€)
-
49.2%
CAGR 2018-23: +8.3%
2018 2019 2020 2021 2022 2023
- A balanced allocation of capital
CIB | Commercial & | |
~1/3 Personal | ||
~1/3 |
~1/3 | Banking |
Specialised | |
Businesses |
Diversified
Across customer segments, regions,
sectors and business lines
At scale
Strengthened execution via industrialisation and new technologies
- Continuous efficiency gains
Cost/income ratio2
67,3% 66,5%
68,9% 64,7%
66,7%61,6%
2018 2019 2020 2021 2022 2023
- An enhanced risk profile
Cost of risk / GOI2 | |||||
21,6%22,1% | 38,6%3 | ||||
20,2%17,4% | |||||
16,1% | |||||
2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
1. Proforma 2022 Net Income, Group share, including income from discontinued activities, in accordance with IFRS 5 (note: sale of Bank of the West on 01.02.23), 2023 distributable net income; 2. Excluding exceptional items, excluding the contribution of Bank of the West and 2023 distributable base to reflect the Group's intrinsic performance post impact of the sale of Bank of the West and post ramp-up of the SRF -
Application of IFRS 17 and IFRS 5 effective 2022; 3. Note: €1.4bn in stage 1 & 2 provisions related to the public health crisis of 2020
Corporate Governance - April 2024 5
Structural improvement in the risk profile over the past 10 years
Cost of risk1 supported by a prudent risk profile
In bps / customer loans outstanding
Guidance | |||||||||||
66 | 2022-2025 | ||||||||||
57 | <40 | ||||||||||
54 | |||||||||||
46 | 39 | ||||||||||
39 | 35 | 34 | 34 | 32 | |||||||
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Stages 1 & 2 provisions in 2020
Prudent growth of market activities: stable VaR
(a measure of market risk)
6.8 | 8.0 Annual Global | ||||||||||||||
Markets revenues | |||||||||||||||
5.7 | (€bn) | ||||||||||||||
5.4 | 4.7 | ||||||||||||||
39 | 45 | 38 | |||||||||||||
32 | 34 | 34 | 28 | ||||||||||||
26 | 25 | 24 |
Average annual
VaR (99%,1 day)
In €m
- Cost of risk1: €2,907m (-€96m vs. 2022)
- Cost of risk still at a low level, below 40 bps
- Provisions on non-performing loans (stage 3) of €1,833m, excluding Personal Finance
- Release of €517m in provisions on performing loans (stages 1 & 2), including an additional provision of €158m on the commercial real-estate portfolio
- High stock of stage 1 & 2 provisions: €5.0bn
1. Note: the cost of risk does not include "Other net losses for risk on financial instruments", i.e., losses related to risk of invalidation or non-enforceability of financial instruments granted (extraordinary provisions on mortgage loans in Poland, provisions for litigations related to Personal Finance and provisions for a risk on receivables in 2023) recognised in Corporate Centre (€775m in 2023)
Corporate Governance - April 2024 6
Basel 3 Risk-Weighted Assets1
€704bn as at 31.12.23 (€745bn as at 31.12.22)
€bn | 31.12.23 | 31.12.22 | ||
Credit risk | 535 | 580 | ||
Operational Risk | 59 | 62 | ||
Counterparty Risk | 45 | 42 | ||
Market vs. Foreign exchange Risk | 29 | 26 | ||
Securitisation positions in the banking book | 17 | 16 | ||
Others2 | 19 | 20 | ||
Basel 3 RWA1 | 704 | 745 |
Basel 31 assets by business
Corporate | ||
Centre | ||
IPS | Specialised | |
Businesses | ||
6% | ||
(CPBS) | ||
6% | 18% | |
34% | Commercial & | |
Personal | ||
36% | ||
CIB | Banking | |
(CPBS) | ||
Corporate | |
Centre: 6% | Personal Finance: 12% |
IPS: 6% | |
Arval & Leasing | |
Global Markets & | Solutions: 5% |
Securities Services: | |
14% | CPBF: 14% |
Global Banking: | BNL bc: 6% |
20% | CPBB: 8% |
NDB & PI3: 1% | CPBL: 1% |
Europe Med.: 7%
1. CRD5; 2. Including the DTAs and significant investments in entities in the financial sector subject to 250% weighting ; 3. New Digital Businesses & Personal Investors
Corporate Governance - April 2024 | 7 |
BNP Paribas creates long-term value for shareholders
Tangible net book value per share1
€ | ||
CAGR | ||
+6.9% | 87,6 | |
73,2 | 78,7 | 79,3 |
63,3 | ||
52,4 | ||
32,0 | +10% | |
vs. 2022 | ||
2008 2012 2016 2020 2021 2022 2023 |
Earnings per share2
€ | |||
CAGR | 9,2 | ||
+7.6% | |||
7,8 | |||
7,3 | |||
5,2 | 6,0 | 5,3 | |
3,1 | +18% | ||
vs. 2022 | |||
2008 2012 2016 2020 2021 2022 2023 |
Cash dividend per
share4
€ | ||
CAGR | 4,60 | |
+10.9% | ||
3,90 | ||
3,67 | ||
2,70 | 2,66 | |
1,50 | +18% | |
vs. 2022 | ||
0,97 | ||
2008 2012 2016 2020 2021 2022 2023 |
Total Return Performance (incl. gross dividend) - Base 02.01.12 - Source Bloomberg
120
100
80
60
40
20
0
In relative terms compared
to January 2012
+250%
+97%
Payout ratio of 60%3
- 2023 cash dividend: €4.60 per share4
- Share buyback programme5: €1.05bn planned for 20245
2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
BNP Paribas | Euro STOXX Banks (rebased) | |||||||||||
1. Revalued at the end of period, in €; 2. 2023 earnings per share calculated on the basis of 2023 distributable Net Income and the number of shares outstanding at end of period (€8.79 based on average number of shares); 3. Applied to distributable Net Income after TSSDI; 4. Subject to approval by the General Meeting of 14 May 2024, detached on 21 May 2024, paid out on 23 May 2024;
5. Upon customary conditions precedents (including ECB authorisation)
Corporate Governance - April 2024 8
The BNP Paribas Fundamentals
Corporate Governance within
BNP Paribas
The Board of Directors and its Committees
Corporate Officers' Compensation
Appendix
A Corporate Governance Framework Deeply Embedded in
the Bank's Culture
A « Triptic » Culture / Governance / Business Strategy
Balance, stability and consistency of the strategy
A culture of control and risk management, aiming at helping customers to implement their projects
A risk-reward balance closely monitored throughout the cycle
A commitment for a positive impact on society as a whole
Business model is closely aligned with culture, focused on:
- Customers (vs sales)
- Long term (vs short term) results
- Sustainability (vs growth)
- Efficiency (vs low cost)
A reputation based on rigorous rules of ethics, compliance and transparency and on a true social commitment: focus on
- Values, compliance, behaviour
- Consistency of message
- Tone at the top......Echo from the bottom
Corporate Governance - April 2024 10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
BNP Paribas SA published this content on 03 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 May 2024 16:04:29 UTC.
