BNP Paribas : 2Q22 - Press release results

RESULTS

AS AT 30 JUNE 2022

PRESS RELEASE

Paris, 29 July 2022

A SOLID TRAJECTORY

GROWTH IN REVENUES, POSITIVE JAWS EFFECT

AND PRUDENT RISK PROFILE

STRONG GROWTH IN REVENUES

SUPPORTED BY ALL DIVISIONS

Very strong increase in Corporate & Institutional Banking (+10.6%)

Very solid growth in Commercial, Personal Banking & Services1 (+11.1%)

Rise in Investment & Protection Services (+2.2%)

Revenues: +8.5% vs. 2Q21

STRONG OPERATIONAL PERFORMANCE AND POSITIVE JAWS EFFECT (+0.9 pt)

Supporting business growth

~35% of the increase in operating expenses due to scope and exchange rate effects

Operating expenses: +7.6% vs. 2Q21

PRUDENT RISK PROFILE, PROACTIVE AND LONG-TERM MANAGEMENT REFLECTED

IN LOW COST OF RISK: 33bp2

Ex-ante provisioning of expected losses (stages 1 and 2) related to the macroeconomic and geopolitical situation

STRONG INCREASE IN NET INCOME

Net income3: €3,177m, +9.1% vs. 2Q21

(+18.5% vs. 2Q21 excluding exceptional items)

ROBUST BALANCE SHEET AND INCREASE IN PROFITABILITY

CET1 RATIO4: 12.2%

ROTE5: 12.4%

1. Including 100% of Private Banking in Commercial & Personal Banking (including PEL/CEL effects in France); 2. Cost of risk / Customer loans outstanding at the beginning of the period; 3. Group share; 4. CRD4, including IFRS9 transitional arrangements;

1. Return on tangible equity non-revaluated

The figures included in this announcement are unaudited.

This announcement 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, in particular in the context of the Covid-19 pandemic, 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 at 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 announcement 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.

2	RESULTS AS AT 30 JUNE 2022

The Board of Directors of BNP Paribas met on 28 July 2022. The meeting was chaired by Jean Lemierre, and the Board examined the Group's results for the second quarter 2022.

Commenting on these results, Chief Executive Officer Jean-Laurent Bonnafé stated at the end of the meeting:

"BNP Paribas continues to expand its activities at the service of its clients and the economy, on the back of the strength of its integrated and diversified model.

With a reinforced profitability and a ROTE of more than 12%, BNP Paribas' results are solid and reflect its ability to mobilise more than ever all its resources and business lines to support individuals, corporates and institutionals in all phases of the economic cycle.

While continuously expanding its platforms at the service of the European economy, the Group pursues its growth trajectory, its technological developments, and supports its clients in their transition towards a more sustainable economy.

I would like to thank the teams in all Group's entities as well as our clients, who are increasingly numerous in placing their trust in us."

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Unless otherwise mentioned, the financial information and items contained in this announcement include the activity related to BancWest reflecting an operational view. Such financial information and items therefore do not reflect the effects produced by applying IFRS 5, which pertains to non- current assets and liabilities held for sale. The press release includes in appendix a reconciliation between the operational view presented without applying IFRS 5 and the consolidated financial statements based on an application of IFRS 5.

STRONG GROWTH IN RESULTS AND A POSITIVE JAWS EFFECT

BNP Paribas' performances this quarter confirm its solid trajectory, with growth in revenues, a positive jaws effect 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 second quarter 2022.

With growth in net income averaging1 +8.8% since the second quarter 2019, profitability reinforced with a ROTE of 12.4%2, BNP Paribas has a solid model generating growth above that of its underlying economy. 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 increased by 8.1% compared to the second quarter 2021 and deposits by 7.3%. 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 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.

1. CAGR of 2Q19 / 2Q22 net income, group share
2. Non-revaluated

3	RESULTS AS AT 30 JUNE 2022

All in all, revenues, at 12,781 million euros, rose sharply, by 8.5% compared to the second quarter 2021.

In the operating divisions, revenues increased by 9.7% compared to the second quarter 20211, driven by strong business drive. Revenues at Corporate & Institutional Banking (CIB) grew sharply (+10.6%2) with the crystallisation of market share gains and the acceleration provided by the strategic developments finalised in 2021 and 2022, particularly in Equities and Securities Services. They rose in all three businesses. Revenues3 were up strongly, by 11.1%4 at Commercial, Personal Banking & Services (CPBS), driven by very strong growth in both Commercial & Personal Banking (+9.4%) and Specialised Businesses (+14.4%). At Investment & Protection Services (IPS) revenues increased by 2.2%5 in a challenging market environment. Wealth Management and Insurance's performances are good and offset the impact of the market context on Asset Management.

The Group's operating expenses came to 7,719 million euros, up by 7.6% compared to the second quarter 2021, driven by the support for growth in activity and business development. They rose by 4.9% at constant scope and exchange rates. Operating expenses this quarter included the exceptional impact of restructuring costs6 and cost-adaptation measures7 (28 million euros) and IT reinforcement costs (82 million euros) for a total of 110 million euros (vs. total exceptional operating expenses of 71 million euros in the second quarter 2021).

In the operating divisions, operating expenses increased by 8.6% and by 5.7% at constant scope and exchange rates compared to the second quarter 2021. The jaws effect was positive (0.9 point). Operating expenses at CIB increased by 13.3%, on the back of business development and the impact of change in scope. They were up by 5.0% at constant scope and exchange rates with a positive jaws effect of 0.6 point. Operating expenses3 increased by 6.5%8 at CPBS with the growth in business activity and scope effects at both Commercial & Personal Banking and Specialised Businesses. The jaws effect was very positive (+4.5 points). Operating expenses3 increased by 7.1% at Commercial & Personal Banking and by 5.1% at Specialised Businesses. At IPS, operating expenses increased by 6.7%9, due mainly to support for business development and targeted initiatives.

The Group's gross operating income thus came to 5,062 million euros, up strongly by 9.9% compared to the second quarter 2021.

At 789 million euros, the cost of risk decreased by 3.0% compared to the second quarter 2021 and stood at 33 basis points of customer loans outstanding. It is at a low level, which reflects in particular the low provisions on non-performing loans (stage 3). For the second quarter 2022 it includes a 511-million-euroex-ante provision of expected losses (stages 1 and 2) in relation to the indirect effects of the invasion of Ukraine, higher inflation and interest rates, partially offset by a release of 187 million euros in provisions related to the public health crisis.

Group operating income thus came to 4,273 million euros, up sharply, by 12.7% compared to the second quarter 2021, particularly in the operating divisions (+14.0%).

Non-operating items amounted to 229 million euros in the second quarter 2022 (403 million euros in the second quarter 2021). Exceptional items were down sharply compared to the second quarter 2021, when they included a 300-million-euro capital gain on the sale of Allfunds10 shares.

1. +7.2% at constant scope and exchange rates
2. +5.6% at constant scope and exchange rates
3. Including 100% of Private Banking in Commercial & Personal Banking (including PEL/CEL effects in France)
4. +9.8% at constant scope and exchange rates
5. +1.5% at constant scope and exchange rates
6. Restructuring costs related to the restructuring of certain businesses (in particular at CIB)
7. Adaptation measures related in particular to CIB, Commercial & Personal Banking and Wealth Management
8. +6.1% at constant scope and exchange rates
9. +5.6% at constant scope and exchange rates
10. Disposal of 6.7% stake in Allfunds

4	RESULTS AS AT 30 JUNE 2022

Pre-tax income rose by 7.4% compared to the second quarter 2021, amounting to 4,502 million euros (4,194 million euros in the second quarter 2021).

The Group has applied IAS 29 "Financial Reporting in Hyperinflationary Economies" in Turkey, effective 1 January 2022. The impact of the effects induced by the hyperinflation situation1 in Turkey on the pre-tax income of the second quarter 2022, for the first half 2022, was limited overall and amounts to +10 million euros.

The average corporate income tax rate was 26.2%.

The Group's net income thus came to 3,177 million euros in the second quarter 2022, up sharply, by 9.1% compared to the second quarter 2021. Excluding the effect of exceptional items, it came to 3,258 million euros, a robust 18.5% increase compared to the second quarter 2021.

As at 30 June 2022, the Common Equity Tier 1 ratio stood at 12.2%2. 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 ratio3 stood at 3.8%.

Tangible net book value per share4 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.

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%5 compared to the first half 2021, driven by robust business activity. Revenues rose strongly, by 19.3%6 at Corporate & Institutional Banking and increased in all three business lines. Revenues7 rose sharply, by 9.8%8 at Commercial, Personal Banking & Services, driven by very strong growth at Commercial & Personal Banking and at Specialised Businesses. At Investment & Protection Services they were up by 1.0%9 in an environment marked by the performance of the financial markets.

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 costs10 and cost- adaptation measures11 (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).

1. Application of IAS 29 standards "Financial Reporting in Hyperinflationary Economies" and efficiency of the hedging with
   CPI linkers taken into account and now recognized in "Other non-operating items"
2. CRD4, including IFRS9 transitional arrangements
3. Calculated in accordance with Regulation (EU) 2019/876, without opting for the temporary exclusion related to deposits with Eurosystem central banks authorised by the ECB decision of 18 June 2021
4. Revaluated
5. +9.7% at constant scope and exchange rates
6. +14.5% at constant scope and exchange rates
7. Including 100% of Private Banking in Commercial & Personal Banking (including PEL/CEL effects in France)
8. +8.9% at constant scope and exchange rates
9. +1.2% at constant scope and exchange rates
10. Restructuring costs related to the restructuring of certain businesses (in particular at CIB)
11. Adaptation measures related in particular to BancWest and CIB

5	RESULTS AS AT 30 JUNE 2022