BNP Paribas : 1Q22 - Press release results

RESULTS

AS AT 31 MARCH 2022

PRESS RELEASE

Paris, 3 May 2022

SOLID RESULTS AND POSITIVE JAWS EFFECTS

A GOOD BUSINESS DRIVE AT THE START OF THE YEAR

CONSOLIDATING 2022 TRAJECTORY

VERY STRONG GROWTH IN REVENUES

Outperformance by CIB (+28.1%)

Strong growth in Commercial, Personal Banking & Services1 (+8.5%)

Good resilience by Investment & Protection Services (-0.2%)

Revenues: +10.4% vs. 1Q21, at constant scope and exchange rates

STRONG OPERATIONAL PERFORMANCE

POSITIVE JAWS EFFECT (+3.4 points)

at constant scope & exchange rates, excluding taxes subject to IFRIC 212

Support for business growth ~50% of the increase in costs due to the rise in the contribution to the SRF2

(+€303m vs. 1Q21) as well as scope and FX effects

Costs excl. IFRIC 212: +7.0% vs. 1Q21, at constant scope & exchange rates

COST OF RISK AT A VERY LOW LEVEL: 20 bps3

Significant impact this quarter from releases of provisions at BancWest

(underlying cost of risk: 30 bps3 excluding BancWest)

VERY STRONG INCREASE IN NET INCOME

Net income4: €2,108m, +19.2% vs. 1Q21

(+37.1% vs. 1Q21 when excluding exceptional items and contribution to the SRF2)

ROBUST BALANCE SHEET

CET1 ratio5: 12.4%

Acceleration in growth and specific context of the quarter (notably implementation of several changes in regulation)

1. Including 100% of Private Banking in Commercial & Personal Banking in the euro zone, Europe-Mediterranean and the United States (including PEL/CEL effects in France); 2. Booking in 1Q of almost the entire amount of taxes and contributions for the year, based on the application of IFRIC 21 "Taxes", including the estimated contribution to the Single Resolution Fund (SRF); 3. Cost of risk / Customer loans outstanding at the beginning of the period; 4. Group share; 5. CRD4, including IFRS9 transitional arrangements

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.

The Board of Directors of BNP Paribas met on 2 May 2022. The meeting was chaired by Jean Lemierre, and the Board examined the Group's results for the first quarter 2022.

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

"The Group is mobilising more than ever all of its resources and business lines to support individuals, corporates and institutionals in all phases of the economic cycle.

On the strength of its model, BNP Paribas thus achieved a very good performance in the first quarter of 2022, thanks to its ability to meet the needs of clients and the economy. This performance reflects the commitment of its teams who work alongside our clients in long-term relationships.

With its "Growth, Technology and Sustainability 2025" strategic plan, the Group continues to develop leading platforms at the service of the European economy, to pursue its technological progress, and to support its clients in their transition towards a more sustainable model. In striving to achieve its ambitious environmental and social goals, BNP Paribas intends to take even more active part in the transformations of our economies and our societies.

I would like to thank BNP Paribas teams in all entities for their constant mobilisation, 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 the appendix a reconciliation between the operational view presented without applying IFRS 5 and the consolidated financial statements based on an application of IFRS 5.

SOLID RESULTS

BNP Paribas achieved a robust performance on the back of its diversified and integrated model and its prudent risk management.

The Group's diversification and ability to accompany clients and the economy in a comprehensive way continued to drive strong growth in activity and results in the first quarter 2022.

This was seen in the strong momentum achieved this quarter, which was sustained by strategic developments realised in 2021 and 2022 and initiatives backed by all business lines within the GTS 2025 plan. This momentum is already supporting a solid trajectory in 2022 in an environment that is nonetheless more contrasted in the short term. Against this backdrop, BNP Paribas is benefiting more than ever from the strengths of its model in generating growth greater than the underlying economy and thus confirms the Group's overall objectives for 20251.

All in all, revenues, at 13,218 million euros, increased by 11.7% compared to the first quarter 2021.

In the operating divisions, revenues increased by 13.5% at historical scope and exchange rates and by 12.1% at constant scope and exchange rates, thanks to strong business drive. They were driven by very strong growth in revenues at CIB (+28.1% at historical scope and exchange rates, +23.6% at constant scope and exchange rates) with the crystallisation of market share gains and the acceleration provided by strategic developments in 2021 and 2022, particularly in the Equities and

1 See "2022-2025 Strategic Plan" part of this press release

Securities Services business line. Revenues rose sharply by 8.5%1 at Commercial, Personal Banking & Services at historical scope and exchange rates and by 8.1%1 at constant scope and exchange rates. They were driven, on the one hand, by strong growth at Commercial & Personal Banking (+7.5%1 compared to the first quarter 2021), due, in turn, to a further increase in fees and an improvement in net interest income, and, on the other hand, by the very sharp increase in revenues at Specialised Businesses (+10.6% compared to the first quarter 2021), especially at Arval. The environment was lacklustre in Investment & Protection Services with unfavourable market trends in the first quarter 2022. As a result, IPS revenues decreased by 0.2% at historical scope and exchange rates but increased by 0.8% at constant scope and exchange rates compared to the first quarter 2021.

The Group's operating expenses, at 9,653 million euros, were up by 12.3% compared to the first quarter 2021, in relation with the support for business development and the significant increase of taxes subject to IFRIC 21, particularly the sharp increase of the estimated contribution to the Single Resolution Fund. They were up by 7.0% at constant scope and exchange rates and excluding taxes subject to IFRIC 21.

Hence, when excluding taxes subject to IFRIC 21, operating expenses rose by 9.5% compared to the first quarter 2021, and the jaws effect was positive. Indeed, operating expenses this quarter included for 1,829 million euros (1,451 million euros in the first quarter 2021) for almost the entire amount of taxes and contributions pursuant to the application of IFRIC 21 "Taxes" for the year, including the estimated contribution to the Single Resolution Fund, which came to 1,256 million euros in the first quarter 2022, increasing by 303 million euros compared to the first quarter 2021. Operating expenses this quarter also included the exceptional impact of restructuring costs2 and adaptation costs3 (26 million euros) and IT reinforcement costs (49 million euros) for a total of 76 million euros (vs. total exceptional operating expenses of 77 million euros in the first quarter 2021).

In the operating divisions, operating expenses were up by 9.4% at historical scope and exchange rates and by 7.5% at constant scope and exchange rates compared to the first quarter 2021. The jaws effect was very positive. Operating expenses at CIB increased by 18.3% at historical scope and exchange rates and by 13.3% at constant scope and exchange rates compared to the first quarter 2021, driven by the support for business growth and the impact of the change in scope. The jaws effect was highly positive (+9.8 points). Operating expenses were up by 5.2% compared to the first quarter 2021 at Commercial, Personal Banking & Services4, with the growth in business activity and scope effects at Commercial & Personal Banking and Specialised Businesses. The jaws effect was very positive (+3.3 points). Operating expenses were up by 5.1% compared to the first quarter 2021 at Commercial & Personal Banking4 and by 5.5% at Specialised Businesses. At Investment & Protection Services, operating expenses rose by 3.6% at historical scope and exchange rates and by 3.9% at constant scope and exchange rates, due mainly to support to business development and targeted initiatives.

The Group's gross operating income thus came to 3,565 million euros, up by 10.3% compared to the first quarter 2021.

The cost of risk, at 456 million euros, decreased by 49.1% compared to the first quarter 2021 and stood at 20 basis points of customer loans outstanding. It is very low and mainly reflects releases of provisions on performing loans (stages 1 and 2), especially at BancWest. When excluding BancWest, it would have come to 30 basis points of customer loans outstanding.

The Group's operating income, at 3,109 million euros, thus rose very strongly, by 33.1% compared to the first quarter 2021, and was up very sharply in the operating divisions (+51.0% compared to the first quarter 2021).

• 1 Including 100% of Private Banking in Commercial, Personal Banking in the euro zone, Europe-Mediterranean and the United States (including PEL/CEL effects in France)

• 2 Restructuring costs related to the restructuring of certain businesses (in particular at CIB)

• 3 Adaptation measures related in particular to CIB, Commercial & Personal Banking and Wealth Management

• 4 Including 100% of Private Banking in Commercial & Personal Banking in the euro zone, Europe-Mediterranean and the United States

Non-operating items totalled 168 million euros in the first quarter 2022 (487 million euros in the first quarter 2021). Exceptional items decreased sharply compared to the first quarter 2021. They included the positive impact of +244 million euros from the badwill on bpost bank and a capital gain on the sale of a stake of +204 million euros, offset by the impairment on Ukrsibbank's securities for -159 million euros and the negative -274 million euro impact related to the reclassification to profit and loss of exchange differences1. Total non-operating items came to +15 million euros, compared to a total of +398 million euros in the first quarter 2021, which had included the +96 million euro capital gain on the sale of a stake held by BNP Paribas Asset Management and a +302 million euro capital gain on the sale of buildings.

Pre-tax income rose by 16.1% compared to the first quarter 2021, to 3,277 million euros (2,823 million euros in the first quarter 2021).

The average corporate tax rate was 36.5%, due in particular to the first-quarter recognition of taxes and contributions subject to IFRIC 21 "Taxes", a large portion of which are not deductible. The average corporate tax rate was 35.9% in the first quarter 2021.

The Group's net income attributable to equity holders thus came to 2,108 million euros in the first quarter 2022, up very sharply by 19.2% compared to the first quarter 2021 (1,768 million euros). When excluding exceptional items and taxes subject to IFRIC 21, it came to 3,785 million euros, up very sharply by 34.0% compared to the first quarter 2021.

Return on tangible equity not revaluated stood at 13.5%.

As at 31 March 2022, the common equity Tier 1 ratio stood at 12.4%2. The Group's immediately available liquidity reserve amounted to 468 billion euros, equivalent to over one year of room to manoeuvre in terms of wholesale funding. The leverage ratio3 stood at 3.8%.

Tangible book value4 per share stood at 80.1 euros, equivalent to a compound annual growth rate of 7.2% since 31 December 2008 and illustrating continuous value creation throughout economic cycles.

The Group is engaged in support of Ukraine. It has donated 14.5 million euros to its long-standing NGO partners (the UN Refugee Agency, the Red Cross and Doctors Without Borders), as well as to associations in France, Poland and Ukraine. The Group is also taking care of the housing of more than 1,700 of its Ukrainian colleagues and their families.

It continues to mobilise around social challenges and in supporting clients in the energy and environmental transition.

The Group also continues to reinforce its internal controls mechanism.

• 1 Previously recorded in the Consolidated Equity

• 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