BNP Paribas : 4Q21 - Press release results

2021 FULL YEAR RESULTS

PRESS RELEASE

Paris, 8 February 2022

VERY STRONG INCREASE IN RESULTS

SUSTAINED REVENUE GROWTH

Very good momentum at Domestic Markets

Increase in Asset Management and Insurance revenues

Further increase at CIB

Revenues: +4.4% vs. 2020

(+3.7% vs. 2019)

POSITIVE JAWS EFFECT DESPITE THE INCREASE IN THE SRF1 CONTRIBUTION

BUSINESS DEVELOPMENT AND INVESTMENTS

Operating expenses: +3.0% vs. 2020

(-0.7% vs. 2019)

LOW COST OF RISK: 34bp2

VERY STRONG GROWTH IN NET INCOME3 VS. 2020 AND 2019

Net income3: €9,488m, +34.3% vs. 2020

(+16.1% vs. 2019)

VERY SOLID BALANCE SHEET

CET1 RATIO4: 12.9%

ROTE5: 10.0%

2021 PAY-OUT RATIO: 60%

(50% in cash6, 10% in share buyback7)

LAUNCH OF THE STRATEGIC PLAN

Growth, Technology & Sustainability 2025

1. Single Resolution Fund; 2.Cost of risk vs. Customer loans outstanding at the beginning of the period; 3. Net income, group share;

4. CRD4, including IFRS9 transitional arrangements; 5. Return on tangible equity non revaluated; 6.Subject to the approval of the General Meeting of 17 May 2022; 7. Share buyback programme totalling €900m executed in 4Q21

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 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 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	2021 FULL YEAR RESULTS

The Board of Directors of BNP Paribas met on 7 February 2022, chaired by Jean Lemierre. The Board examined the Group's results for the fourth quarter 2021 and endorsed the 2021 financial statements.

Commenting on these results, Jean-Laurent Bonnafé, Chief Executive Officer, said after the Board meeting:

• Thanks to the engagement of its teams and the strength of its model, BNP Paribas achieved a very good performance in 2021. BNP Paribas confirms its major role in financing the economy, notably in Europe.

This performance reflects a unique positioning as a European leader, with platforms to best serve corporate, institutional and individual clients. This performance acknowledge our long-term commitment by their side in all phases of the economic cycle.

With a reinforced profitability in 2021 and a 10% ROTE, the Group's results is the outcome of our long-term strategy and transformation. We have digitalised the bank in depth to improve the customer experience and the efficiency of our activities. We have built powerful platforms to serve our clients and partners. We have supported them in their development and in accelerating their ecological transition.

The combination of our talents, our leading European platforms, our distinctive model and the Group's financial strength allows BNP Paribas to be ideally positioned to implement its Growth, Technology & Sustainability 2025 strategic plan.

We are fully committed to pursue our development to meet clients' expectations, to foster value creation for our stakeholders and generate sustainable growth with an objective in ROTE of more than 11% by 2025, while further integrating both environmental and social dimensions in an industrialized way in all the Bank's activities.

I would like to thank BNP Paribas teams in all its entities for their constant presence at the side of our clients, who are increasingly numerous in placing their confidence 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.

A ROBUST PERFORMANCE AND VALUE CREATION

BNP Paribas achieved a robust performance, on the back of its integrated and diversified model based on it platforms and client franchises leaders in Europe and well-positioned internationally.

The Group's diversification and ability to accompany clients and the economy in a comprehensive way sustained the increase in revenues compared to 2020 (+4.4%) and 2019 (+3.7%). The development of platforms at marginal cost and ongoing efficiency measures allowed the Group to invest while delivering a positive jaws effects on the year, despite the increased contribution to the SRF1. With a Common Equity Tier 1 ratio of 12.9%2 as at 31 December 2021 and a 10.0% return on tangible equity not revaluated, the Group once again demonstrated its ability to create value in a continuous and sustainable way.

1. Single Resolution Fund
2. CRD4, including IFRS9 transitional arrangements

3	2021 FULL YEAR RESULTS

All in all, revenues, at 46,235 million euros, increased by 4.4% compared to 2020 and by 3.7% compared to 20191.

In the operating divisions, revenues rose by 2.4% at historical scope and exchange rates and by 3.7% at constant scope and exchange rates. They were up sharply by 5.2% at Domestic Markets2, driven by the increase in the networks3, in particular in France, and by very strong growth in specialised businesses, Arval in particular. International Financial Services' revenues decreased by 1.2% at historical scope and exchange rates but rose by 1.7% at constant scope and exchange rates, with a strong increase in asset-gathering businesses, an increase at Insurance and at BancWest, and a less favourable context for the other businesses. CIB achieved a further increase in revenues (+3.4% at historical scope and exchange rates and +4.1% at constant scope and exchange rates), at a high level (+17.8% compared to 2019).

The Group's operating expenses, at 31,111 million euros, rose by 3.0% compared to 2020, in relation with the support for growth and investments, and were 0.7% lower than in 2019. Operating expenses this year included the exceptional impact of restructuring4 and adaptation costs5 (164 million euros) and IT reinforcement costs (128 million euros) for a total of 292 million euros (total exceptional operating expenses of 521 million euros in 2020, when they also included the exceptional impact of 132 million euros in donations and staff-safety measures related to the public health crisis). The jaws effect was positive (+1.4 point).

For 2021, Group operating expenses are impacted by a 193 million euros increase in taxes subject to IFRIC 21 (including the contribution to the SRF6) compared to 2020, an equivalent of more than 20% of operating expenses increase between 2020 and 2021. The taxes subject to IFRIC 21 (including the contribution to the SRF6) stood at 1 516 million euros in 2021. The contribution to the SRF6 stood at 967 million euros in 2021 vs. 760 million in 2020, increasing by 27.2%

In the operating divisions, operating expenses increased by 2.7% compared to 2020. They rose by 2.0% compared to 2020 at Domestic Markets2, due particularly to support for growth in the specialised businesses and the rebound of activity in the networks3, they were contained by cost- savings measures. The jaws effect was very positive (+3.1 points). At International Financial Services, operating expenses increased by 1.1% at historical scope and exchange rates and by 4.2% at constant scope and exchange rates, mainly driven by business development and targeted initiatives. At CIB, operating expenses increased by 5.4% at historical scope and exchange rates and by 4.0% at constant scope and exchange rates, driven by business development, targeted investments, and the impact of taxes subject to IFRIC 21.

The Group's gross operating income thus came to 15,124 million euros, up by 7.4% compared to 2020 and by 14.1% compared to 2019.

The cost of risk, at 2,925 million euros, decreased by 48.8% compared to 2020 and stood at 34 basis points of customer loans outstanding. It stood at a low level in particular due to a limited number of new defaults and compared to a high basis in 2020, which had a total of 1.4 billion euros in provisions on performing loans (stages 1 and 2). Write-backs of provisions on performing loans were marginal in 2021 (78 million euros).

The Group's operating income thus amounted to 12,199 million euros, a very strong 45.9% increase compared to 2020 and up sharply, by 21.3%, compared to 2019. It rose in all divisions.

1. This included, in the fourth quarter 2020, the -104 million euro exceptional accounting impact of a swap set up for the transfer of a business
2. Including 100% of Private Banking in France (excluding PEL/CEL effects), Italy, Belgium and Luxembourg
3. FRB, BNL bc and BRB
4. Related to the restructuring of certain businesses, in particular at CIB
5. Adaptation measures in particular at Wealth Management, CIB and BancWest
6. Single Resolution Fund

4	2021 FULL YEAR RESULTS

Non-operating items came to 1,438 million euros in 2021 (1,458 million euros in 2020). They included the exceptional impacts of capital gains of +486 million euros (+699 million euros in 2020) on building sales, of +444 million euros (+371 million euros in 2020) on the sale of Allfunds shares1, and of +96 million euros on the sale of a stake of BNP Paribas Asset Management, as well as -74 million euros (-130 million euros in 2020) in depreciations.

Pre-tax income, at 13,637 million euros (9,822 million euros in 2020), rose very sharply by 38.8% and 19.7% compared to 2019.

Corporate income taxes totalled 3,757 million euros, up strongly by 56.1% compared to 2020 (2,407 million euros in 2020). The average corporate tax rate was 28.7%, vs. 25.6% in 2020, mainly due to the increase in taxes and contributions subject to IFRIC 21, a large proportion of which are not deductible.

The Group's net income attributable to equity holders thus came to 9,488 million euros in 2021, up very sharply compared to 2020 (+34.3%) and with 2019 (+16.1%). Excluding exceptional items, it came to 9,009 million euros, up very sharply by 32.4% compared to 2020.

The return on tangible equity not revaluated was 10.0% and reflected the solid performances of the BNP Paribas group, driven by the strength of its diversified and integrated model and its continuous and sustainable value creation.

As at 31 December 2021, the Common Equity Tier 1 ratio stood at 12.9%2, up by 10 basis points compared to 31 December 2020. The Group's immediately available liquidity reserve totalled 452 billion euros, equivalent to more than one year of room to manoeuvre in terms of wholesale funding. Its leverage ratio3 stood at 4.1%.

Tangible net book value4 per share stood at 78.7 euros, equivalent to a compound annual growth rate of 7.2% since 31 December 2008, illustrating continuous value creation throughout economic cycles.

The Board of Directors will propose to the shareholders' Annual General Meeting on 17 May 2022 to pay out a dividend of 3.67 euros in cash, equivalent to a 50% pay-out ratio in cash of 2021 results. This payment will raise the total pay-out on the year 2021 to 60%, when factoring in the 900 million euro share buyback program executed between 1 November 2021 and 6 December 2021, which was equivalent to a 10% pay-out ratio on 2021 results.

The Group continued its ambitious policy of engaging with society and continued to reinforce its internal control set-up.

In the fourth quarter 2021, revenues, at 11,232 million euros, increased by 3.7% compared to the fourth quarter 20205.

In the operating divisions, revenues increased by 1.3% 6. They were up by 3.9% at Domestic Markets7, driven by an increase in the networks8 (in particular in France), and by strong growth at specialised businesses, including a very sharp increase at Arval. It increased by 1.9% at International

1. Disposal of 8.69% stake in Allfunds, BNP Paribas still holds a 13.81% stake in Allfunds
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. This included, in the fourth quarter 2020, the -104 million euro exceptional accounting impact of a swap set up for the transfer of a business
6. +0.6% at constant scope and exchange rates
7. Including 100% of Private Banking in the domestic networks (excluding PEL/CEL effects)
8. FRB, BNL bc and BRB

5	2021 FULL YEAR RESULTS