BNP Paribas : Etats financiers 31.12.2022 non audités - EN-VPUB

CONSOLIDATED FINANCIAL STATEMENTS

Year ended 31 December 2022

Unaudited figures

CONTENTS

CONSOLIDATED FINANCIAL STATEMENTS		4
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022	4
STATEMENT OF NET INCOME AND CHANGES IN ASSETS AND LIABILITIES RECOGNISED DIRECTLY IN
EQUITY		5
BALANCE SHEET AT 31 DECEMBER 2022		6
CASH FLOW STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2022	7
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY		8
NOTES TO THE FINANCIAL STATEMENTS		10
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES APPLIED BY THE GROUP	10
1.a	Accounting standards		10
1.b	Consolidation		18
1.c	Translation of foreign currency transactions		22
1.d	Net interest income, commissions and income from other activities	23
1.e	Financial assets and liabilities		24
1.f	Accounting standards specific to insurance activities		37
1.g	Property, plant, equipment and intangible assets		41
1.h	Leases		42
1.i	Assets held for sale and discontinued operations		43
1.j	Employee benefits		43
1.k	Share-based payments		45
1.l	Provisions recorded under liabilities		45
1.m	Current and deferred tax		46
1.n	Cash flow statement		46
1.o	Use of estimates in the preparation of the financial statements	47
2. NOTES TO THE PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022	48
2.a	Net interest income		48
2.b	Commission income and expense		50
2.c	Net gain on financial instruments at fair value through profit or loss	50
2.d	Net gain on financial instruments at fair value through equity		51
2.e	Net income from insurance activities		51
2.f	Net income from other Activities		52
2.g	Other operating expenses		52
2.h	Cost of risk		52
2.i	Net gain on non-current assets		63
2.j	Corporate income tax		63
3.	SEGMENT INFORMATION		64
4. NOTES TO THE BALANCE SHEET AT 31 DECEMBER 2022	68
4.a	Financial instruments at fair value through profit or loss		68
4.b	Derivatives used for hedging purposes		70
4.c	Financial assets at fair value through equity		72
4.d	Measurement of the fair value of financial instruments		73
4.e	Financial assets at amortised cost		83
4.f	Impaired financial assets (stage 3)		85
4.g	Financial liabilities at amortised cost due to credit institutions and customers	86
4.h	Debt securities and subordinated debt		86
4.i	Financial investments and other assets related to insurance activities	88
4.j	Technical reserves and other insurance liabilities		90
4.k	Current and deferred taxes		91
4.l	Accrued income/expense and other assets/liabilities		92
	- 2 -	Consolidated financial statements at 31 December 2022

4.m	Equity-method investments	92
4.n	Property, plant, equipment and intangible assets used in operations, investment property	93
4.o	Goodwill	95
4.p	Provisions for contingencies and charges	98
4.q	Offsetting of financial assets and liabilities	99
4.r	Transfers of financial assets	102
5. FINANCING AND GUARANTEE COMMITMENTS	103
5.a	Financing commitments given or received	103
5.b	Guarantee commitments given by signature	103
5.c	Securities commitments	104
5.d	Other guarantee commitments	104
6. SALARIES AND EMPLOYEE BENEFITS	105
6.a	Salary and employee benefit expense	105
6.b	Post-employment benefits	105
6.c	Other long-term benefits	113
6.d	Termination benefits	113
6.e	Share-based payments	114
7.	ADDITIONAL INFORMATION	115
7.a	Changes in share capital and earnings per share	115
7.b	Legal proceedings and arbitration	119
7.c	Business combinations and loss of control or significant influence	120
7.d	Discontinued activities	122
7.e	Event after the reporting period	125
7.f	Minority interests	125
7.g	Significant restrictions in subsidiaries, joint ventures and associates	127
7.h	Structured entities	128
7.i	Compensation and benefits awarded to the group's corporate officers	130
7.j	Other related parties	132
7.k	Fair value of financial instruments carried at amortised cost	133
7.l	Scope of consolidation	135
7.m	Fees paid to the statutory auditors	158

- 3 -

Consolidated financial statements at 31 December 2022

CONSOLIDATED FINANCIAL STATEMENTS

Prepared in accordance with IFRS as adopted by the European Union

The Board of Directors of BNP Paribas approved the Group consolidated financial statements on 6 February 2023.

The consolidated financial statements of the BNP Paribas Group are presented for the years ended 31 December 2022 and 31 December 2021. In accordance with Article 20.1 of Annex I of European Commission Regulation (EC) 809/2004, the consolidated financial statements for the year ended 31 December 2020 are provided in the Universal Registration Document filed with the Autorité des Marchés Financiers on 25 March 2022 under number D.22-0156.

On 18 December 2021, the Group concluded an agreement with BMO Financial Group for the sale of 100% of its retail and commercial banking activities in the United States operated by the BancWest cash-generating unit. The terms of this transaction fall within the scope of application of IFRS 5 relating to groups of assets and liabilities held for sale (see note 7.d Discontinued activities) leading to isolate the "Net income from discontinued activities" on a separate line. A similar reclassification is made in the statement of net income and changes in assets and liabilities recognised directly in equity and in the cash flow statement. The effect of this reclassification on the aggregates of the profit and loss statement is presented in note 3 Segment Information.

Following the receipt of regulatory approvals, the transaction was finalised on 1 February 2023.

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31 DECEMBER 2022

	In millions of euros	Notes		Year to 31 Dec. 2022	Year to 31 Dec. 2021
	Interest income	2.a		41,082	29,518
	Interest expense	2.a		(20,251)	(10,280)
	Commission income	2.b		14,622	15,037
	Commission expense	2.b		(4,444)	(4,675)
	Net gain on financial instruments at fair value through profit or loss	2.c		9,358	7,615
	Net gain on financial instruments at fair value through equity	2.d		138	164
	Net gain on derecognised financial assets at amortised cost			(41)	(2)
	Net income from insurance activities	2.e		4,296	4,332
	Income from other activities	2.f		15,701	15,482
	Expense on other activities	2.f		(12,830)	(13,429)
	REVENUES FROM CONTINUING ACTIVITIES			47,631	43,762

Salary and employee benefit expense

Other operating expenses

Depreciation, amortisation and impairment of property, plant and equipment and intangible assets

6.a	(17,605)	(16,417)
2.g	(11,696)	(10,705)
4.n	(2,394)	(2,344)

GROSS OPERATING INCOME FROM CONTINUING ACTIVITIES		15,936	14,296
Cost of risk	2.h	(3,004)	(2,971)
OPERATING INCOME FROM CONTINUING ACTIVITIES		12,932	11,325
Share of earnings of equity-method entities	4.m	699	494
Net gain on non-current assets	2.i	(253)	834
Goodwill	4.o	249	91
PRE-TAX INCOME FROM CONTINUING ACTIVITIES		13,627	12,744
Corporate income tax from continuing activities	2.j	(3,716)	(3,584)
NET INCOME FROM CONTINUING ACTIVITIES		9,911	9,160
Net income from discontinued activities	7.d	686	720
NET INCOME		10,597	9,880
Net income attributable to minority interests		401	392
NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS		10,196	9,488
Basic earnings per share	7.a	7.80	7.26
Diluted earnings per share	7.a	7.80	7.26

- 4 -

Consolidated financial statements at 31 December 2022

STATEMENT OF NET INCOME AND CHANGES IN ASSETS AND LIABILITIES RECOGNISED DIRECTLY IN EQUITY

In millions of euros		Year to 31 Dec. 2022		Year to 31 Dec. 2021
Net income for the period	10,597		9,880
Changes in assets and liabilities recognised directly in equity	(3,593)		712
Items that are or may be reclassified to profit or loss	(3,953)		26
- Changes in exchange differences	1,041		481
- Changes in fair value of financial assets at fair value through equity
Changes in fair value recognised in equity	(754)		(379)
Changes in fair value reported in net income	(120)		(115)
- Changes in fair value of investments of insurance activities
Changes in fair value recognised in equity	(2,513)		(387)
Changes in fair value reported in net income	(45)		(191)
- Changes in fair value of hedging instruments
Changes in fair value recognised in equity	(1,468)		(620)
Changes in fair value reported in net income	14		(31)
- Income tax	1,249		402
- Changes in equity-method investments, after tax	(917)		295
- Changes in discontinued activities, after tax	(440)		571
Items that will not be reclassified to profit or loss	360		686
- Changes in fair value of equity instruments designated as at fair value through equity	(20)		413
- Debt remeasurement effect arising from BNP Paribas Group issuer risk	515		25
- Remeasurement gains (losses) related to post-employment benefit plans	(102)		347
- Income tax	(96)		(125)
- Changes in equity-method investments, after tax	57		17
- Changes in discontinued activities, after tax	6		9
Total	7,004		10,592
- Attributable to equity shareholders	6,519		10,200
- Attributable to minority interests	485		392

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Consolidated financial statements at 31 December 2022