BNP Paribas : Semi-Annual Report – 3rd amendment to the 2021 Universal Registration Document – Marketscreener.com

THIRD AMENDMENT TO THE

2021 UNIVERSAL REGISTRATION DOCUMENT

FILED WITH THE AMF ON JULY 29TH, 2022

Universal Registration Document and annual financial report 2021 filed with the AMF (Autorit des Marchs Financiers) on March 25, 2022 under No. D. 22-0156.

First amendment to Universal Registration Document and annual financial report 2021 filed with the AMF (Autorit des Marchs Financiers) on May 3, 2022 under No. D. 22-0156-A01.

Second amendment to Universal Registration document and annual financial report 2021 filed with the AMF (Autorit des Marchs Financiers) on June 28, 2022 under No. D. 22-0156-A02.

This is a translation into English of the Universal Registration Document of the Company issued in French and it is

available on the website of the Issuer

Socit anonyme (Public Limited Company) with capital of 2,468,663,292 euros

Head office: 16 boulevard des Italiens, 75009 PARIS

R.C.S.: PARIS 662 042 449

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Summary

1.

HALF YEAR MANAGEMENT REPORT

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2.

FINANCIAL INFORMATION AS AT 30 JUNE 2022

83

3.

RISK FACTORS

217

4.

GENERAL INFORMATION

236

5.

STATUTORY AUDITORS

241

6.

PERSON RESPONSIBLE FOR THE UNIVERSAL REGISTRATION DOCUMENT

242

7.

TABLES OF CONCORDANCE

243

This third amendment to the 2021 Universal Registration Document has been filed with the AMF on 29 July 2022 as competent authority under Regulation (EU) 2017/1129 without prior approval pursuant to Article 9 of Regulation (EU) 2017/1129;

The universal registration document may be used for the purposes of an offer to the public of securities or admission of securities to trading on a regulated market if approved by the AMF together with any amendments, if applicable, and a securities note and summary approved in accordance with Regulation (EU) 2017/1129.

This Universal Registration Document may form part of a prospectus of the Issuer consisting of separate documents within the meaning of the Prospectus Regulation.

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1. HALF YEAR MANAGEMENT REPORT

1.1. Group presentation

Benefitting from its integrated and diversified model, BNPParibas is leader in banking and financial services in Europe. The Group leverages on strong customer franchises and business lines strategically aligned to better serve customers and long-term partners, which are leaders in Europe and favourably positioned internationally. The Group operates in 65countries and has almost 190,000employees, including nearly 145,000 in Europe.

BNPParibas' organisation evolved in 2021, and is now based on three operating divisions: Corporate & Institutional Banking (CIB), Commercial, Personal Banking & Services (CPBS) and Investment & Protection Services (IPS).

Corporate and Institutional Banking (CIB) division, combines:

Commercial, Personal Banking & Services division, covers:

Investment & Protection Services division, combines:

BNPParibasSA is the Parent Company of the BNPParibas Group.

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1.2. First half 2022 results

STRONG GROWTH IN RESULTS AND A POSITIVE JAWS EFFECT

BNP Paribas' performances this semester confirm its solid trajectory, with growth in revenues, a positive jaws effect1 and prudent risk management.

The Group's diversified and integrated model and its ability to accompany clients and the economy in a comprehensive way continued to drive strong growth in revenues and results in the first half 2022. These performances reflect its unique positioning in Europe stemming from its leading platforms.

The Group's growth potential is proven and sustained by robust business momentum and by strategic developments finalised in 2021 and 2022. Loans outstanding increases by 7.0% compared to the first half 2021 and deposits by 7.2%. Growth is disciplined and accompanied by the objective of a positive jaws effect every year and in every division. In addition, the Group benefits from a long-term, prudent and proactive risk management, as illustrated, for example, in its ratio of cost of risk to gross operating income, which is one of the lowest in Europe.

For the first half of the year, revenues, at 25,999 million euros, rose sharply, by 10.1% compared to the first half 2021.

In the operating divisions, revenues increased strongly, by 11.6%2 compared to the first half 2021, driven by robust business activity. Revenues rose strongly, by 19.3%3 at Corporate & Institutional Banking and increased in all three business lines. Revenues4 rose sharply, by 9.8%5 at Commercial, Personal Banking

Group operating expenses, at 17,372 million euros, increased by 10.2% compared to the first half 2021. In the first half 2022, they included the exceptional impact of restructuring costs7 and cost-adaptation measures8 (54 million euros) and IT reinforcement costs (132 million euros) for total exceptional items of 185 million euros (148 million in the first half 2021).

In the operating divisions, operating expenses increased by 9.0%9 compared to the first half 2021. The jaws effect was very positive (+2.6 points). Operating expenses at Corporate & Institutional Banking increased by 16.2%10 with the support of business development, the impact of the change in scope and the increase of taxes subject to IFRIC 21. The jaws effect was very positive (+3.1 points). Operating expenses increased by 5.8% at Commercial, Personal Banking & Services11, on the back of increased business activity and scope effects in Commercial & Personal Banking and Specialised Businesses. The jaws effect was very positive (+4.0 points). Operating expenses at Investment & Protection Services increased by 5.1%12 mainly driven by support for business development and targeted initiatives.

Group gross operating income came to 8,627 million euros, up sharply by 10.1% and by 16.5% in the operating divisions.

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At 1,245 million euros, the cost of risk declined by 27.2% compared to the first half 2021, reflecting, in particular, releases of provisions on performing loans (stages 1 and 2), especially at BancWest in the first quarter 2022. Cost of risk stood at just 27 basis points of customer loans outstanding.

The Group's operating income, at 7,382 million euros, thus rose very sharply, by 20.5% compared to the first half 2021 and by 27.8% in the operating divisions.

The Group's non-operating items amounted to 397 million euros (890 million euros in the first half 2021). At 15 million euros, exceptional items fell sharply compared to the first half 2021 (698 million euros). In the first half of the year, they reflected the +244-million-euro positive impact from the badwill on bpost bank and a +204-million-euro capital gain, offset by the -159-million-euro impairment on Ukrsibbank's securities and the -274-million-euro negative impact related to the reclassification to profit-and-loss of exchange differences. As a reminder, in the first half 2021, exceptional items included the impact of the +302-million- euro capital gain realised on the sale of buildings, the +96-million-euro capital gain realised on the sale of

Pre-tax income, at 7,779 million euros, was thus up sharply, by 10.9%. The impact of the effects induced by the hyperinflation situation2 in Turkey to pre-tax income of the first half 2022 was limited overall and amounted to +10 million euros.

The average corporate income tax rate was 26.0%, due mainly to the first quarter recognition of the full- year's taxes and contributions subject to IFRIC 21 "Taxes", a large proportion of which are not deductible.

Group's net income attributable to equity holders thus came to 5,285 million euros, up sharply, by 13.0% compared to the first half 2021. When excluding exceptional items, it came to 5,409 million euros, a very strong 26.4% increase compared to the first half 2021.

The annualised non-revaluated return on tangible equity stood at 12.4%. It reflects the solid performances of the BNP Paribas Group on the back of the strength of its diversified and integrated model.

As at 30 June 2022, the Common Equity Tier 1 ratio stood at 12.2%3. The Group's immediately available liquidity reserve stood at 450 billion euros, equivalent to over one year of room to manoeuvre in terms of wholesale funding. The leverage ratio4 stood at 3.8%.

Tangible net book value per share5 stood at 78.0 euros, equivalent to a compound annual growth rate of 6.8% since 31 December 2008.

The Group continues to develop a policy of engaging with society through a group-wide approach organised around three major pillars reaffirmed with the "Growth, Technology & Sustainability 2025" strategic plan and is engaged with clients to support them in their transition towards a sustainable economy. It is strengthening its steering tools, processes and governance. And it has taken the measures necessary for aligning its loan portfolios to meet its carbon-neutrality commitment. Euromoney, a financial monthly, recognised this approach, awarding the BNP Paribas two prizes for the second consecutive year: Best Bank for Sustainable Finance and Best Bank for ESG Data & Technology.

The Group continues to reinforce its internal control set-up.

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BNP Paribas SA published this content on 03 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 August 2022 13:18:02 UTC.

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