BNP Paribas : 1Q23 - Press release results

RESULTS

AS AT 31 MARCH 2023

PRESS RELEASE

Paris, 3 May 2023

VERY SOLID RESULTS DRIVEN BY THE STRENGTH OF BNP PARIBAS' MODEL

DISTRIBUTABLE NET INCOME1

REFLECTS THE INTRINSIC PERFORMANCE OF THE GROUP

€2,845m

(Reported 1Q23 Net Income, Group share: €4,435m, including the capital gain on the

sale of Bank of the West but also exceptional and extraordinary items)

STRONG GROWTH IN REVENUES SUPPORTED BY ALL DIVISIONS

Increase in Corporate & Institutional Banking (+4.0%2)

Growth in Commercial, Personal Banking & Services3 (+5.9%2) Rise in revenues in Investment & Protection Services (+0.6%2)

Underlying revenues4: +5.3% vs. 1Q222

Underlying operating expenses4: +3.8% vs. 1Q222

LOW LEVEL OF RISK THROUGHOUT THE CYCLE

SOLID FINANCIAL STRUCTURE

Prudent, proactive, and long-term risk management combined with the Group's strong diversification and favourable positioning (by geography, sector, business line and client segment)

Cost of risk: 28 bps5 CET1 ratio6: 13.6%

Liquidity Coverage Ratio6: 139%

CONFIRMATION OF A TRAJECTORY OF STRONG GROWTH

IN 2023 DISTRIBUTABLE EPS

Distributable EPS7: €2.19 (18.3% annualised growth8)

1. 1Q23 distributable Net Income as detailed in note 1 page 3; 2. Compared to 1Q22 restated, see page 2 and document detailing the 2022 restatements available at: https://invest.bnpparibas; 3. Including 100% of Private Banking in Commercial & Personal Banking (excluding PEL/CEL effects in France); 4. Distributable basis excluding taxes subject to IFRIC 21 and exceptional costs to reflect the Group's intrinsic performance in 1Q23; 5. Cost of risk / customer loans outstanding at the beginning of the period (in bps); 6. CRD5, including IFRS 9 transitional arrangements - LCR end of period; 7. Earnings per share based on 2023 distributable net income; 8. Annualised growth reflecting the annualisation of the SRF adjustment (+€797m) and overall after-tax adaptation costs related to Personal Finance (+€175m)

The figures included in this announcement are unaudited.

On 2 May 2023, BNP Paribas reported restated quarterly series for 2022 to reflect, for each quarter: (i) the application of IFRS 5 relating to disposal of groups of assets and liabilities held for sale, following the sale of Bank of the West on 1 February 2023; (ii) the application of IFRS 17 (Insurance Contracts) and the application of IFRS 9 for insurance entities effective 1 January 2023; (iii) the application of IAS 29 (Financial Reporting in Hyperinflationary Economies) to Türkiye, effective 1 January 2022; and (iv) internal transfers of activities and results at Global Markets and Commercial & Personal Banking in Belgium. The quarterly series for 2022 have been restated for these effects as if they had occurred on 1 January 2022. This presentation includes these quarterly series for 2022 as restated.

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 31 MARCH 2023

The Board of Directors of BNP Paribas met on 2 May 2023. The meeting was chaired by Jean Lemierre, and the Board examined the Group's results for the first quarter 2023.

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

"The Group continues to mobilise all its resources and business lines to support individual, corporate, and institutional clients in all phases of the economic cycle.

On the strength of its model, diversified in terms of business lines, geographical regions and client franchises, BNP Paribas achieved a very good performance in the first quarter 2023, reflecting the efficiency of its leading platforms, which give it a unique capacity to serve the economy. This performance demonstrates our solidity and commitment to supporting clients over the long term.

In accelerating its efforts to meet ambitious environmental and social objectives, BNP Paribas intends to play an increasingly active role in the transformation of our economies and our societies.

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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SOLID RESULTS

The Group's diversified and integrated model and its ability to accompany clients and the economy in a comprehensive way by mobilising its teams, resources and capabilities, continued to drive strong growth in activity and results in the first quarter 2023.

BNP Paribas' solid model, reinforced by its long-term approach and its prudent and proactive risk management, thus generated a distributable net income1 of 2,845 million euros in the first quarter 2023.

These results reflect the Group's robust intrinsic performance and constitute a solid base for achieving the objectives of the GTS 2025 plan.

BNP Paribas benefits more than ever from the strengths of its model and thus, reiterates its 2025 objectives, as revised upward in February 2023. In particular, the Group confirms that it anticipates an increase in distributable net income1 in 2023 in line with the objective of the GTS 2025 plan, i.e., an increase of more than 9% compared to its 2022 reported results. The Group also confirms its objective of a growth in distributable earnings per share2 in 2023 exceeding the objective of the GTS 2025 plan, i.e., an increase of more than 12% higher than 2022 reported results.

The Group has stepped up its policy of engaging with society. It deploys a comprehensive approach and alongside its clients, is committed to transitioning towards a sustainable and low-carbon economy. It has taken the measures necessary for aligning its loan portfolios in compliance with its commitments to carbon neutrality. In doing so, BNP Paribas was ranked number 1 worldwide in green bond issuance in the first quarter 20233. The Group has also set ambitious targets in social responsibility and in developing its employees' potential and commitment. It has thus set a target of

1. Distributable net income (€2,845m in 1Q23) adjusted in accordance with announcements made in February 2023, i.e., reported net income excluding exceptional items (the capital gain on the sale of Bank of the West closed on 01.02.23 (+€2,947m), the negative impact of the adjustment in hedges related to changes in TLTRO's terms and conditions decided by the ECB in 4Q22 (-€403m)), and the upward adjustment of €954m in distributable net income (anticipation of the end of the ramp-up of the Single Resolution Fund (+€797m) and complementary adjustments (+€157m) - see slide 44 of the 1Q23 results presentation
2. Calculated on the basis of distributable net income
3. Source: Bloomberg, bookrunner in volume as at 31.03.23

3	RESULTS AS AT 31 MARCH 2023

having 40% of senior management positions occupied by women by 2025 (35.2% at end-2022). The Group also pays very close attention to training. 97.4% of employees took at least four training sessions in 2022, or 21.8 hours on average for the year.

All in all, revenues, at 12,032 million euros, rose by 1.4% compared to the first quarter 2022. It included in the first quarter 2023, the exceptional negative impact of the adjustments of hedges related to changes in TLTRO terms and conditions decided by the European Central Bank in the fourth quarter 2022 (-403 million euros).

Up by 5.3% compared to the first quarter 2022, revenues adjusted to derive the distributable net income as announced in February 2023 amounted to 12,492 million euros in the first quarter 2023 as a result of a correction of +403 million euros of the exceptional negative impact and a complementary adjustment of +57 million euros.

In the operating divisions, revenues rose by 4.4% compared to the first quarter 2022. They increased in all divisions. They rose by 4.0% at Corporate & Institutional Banking (CIB), driven by the very strong increase in Global Banking revenues (+15.6%), the very good performance of Securities Services (+6.7%) and revenues at Global Markets remaining at a very high level. Revenues rose sharply by 5.9%1 at Commercial, Personal Banking & Services (CPBS), driven by strong growth in Commercial & Personal Banking (+6.8%1) and the increase of revenues at specialised businesses (+4.5%), Arval in particular. The context is less favourable at Personal Finance. Lastly, revenues at Investment & Protection Services (IPS) were up by 0.6%, driven by strong growth in revenues at Insurance and Wealth Management offset by the impact of an unfavourable environment on asset management2 businesses and Real Estate.

The Group's operating expenses, at 9,191 million euros, were up by 5.0% compared to the first quarter 2022. This quarter, they included the impact of exceptional costs for a total of 361 million euros (72 million euros in the first quarter 2022).

Operating expenses adjusted to derive the distributable net income rose by 3.8% compared to the first quarter 2022, excluding the impact of taxes subject to IFRIC 21 and exceptional costs. To reflect the Group's intrinsic performance and in particular the anticipation of the end of the ramp-up of the Single Resolution Fund, operating expenses have been adjusted in order to derive the distributable net income in the amount of -897 million euros and amounted to 8,294 million euros in the first quarter 2023.

In the first quarter 2023, the Group registered the exceptional impact of overall adaptation costs at Personal Finance (236 million euros), restructuring and adaptation costs (30 million euros) and IT reinforcement costs (95 million euros) for a total of 361 million euros (72 million euros in the first quarter 2022). In application of IFRIC 21 "Taxes", operating expenses included in the amount of 1,601 million euros the whole amount of taxes and contributions for the year (1,789 million euros in the first quarter 2022), out of which mainly the estimated contribution to the Single Resolution Fund (997 million euros in the first quarter 2023, 1,256 million euros in the first quarter 2022).

In the operating divisions, operating expenses increased by 4.1% compared to the first quarter 2022. The jaws effect was positive. Operating expenses at CIB increased by 3.1%, driven by growth in activity. The jaws effect was positive (+0.9 point). Operating expenses were up by 4.7% at CPBS1. The jaws effect was positive (+1.2 point). Operating expenses were up by 3.3% in Commercial & Personal Banking1, with a positive jaws effect (3.5 points) and by 8.1% in Specialised Businesses, with a positive jaws effect (10.9 points) at Arval and Leasing Solutions. Lastly, at IPS, operating expenses rose by 5.4%.

The Group's gross operating income thus came to 2,841 million euros. It amounted to 3,114 million euros in the first quarter 2022. The gross operating income came to 4,198 million euros when adjusted in order to derive the distributable net income in the first quarter 2023.

1. Including 100% of Private Banking (excluding PEL/CEL effects)
2. Asset Management and Principal Investments

4	RESULTS AS AT 31 MARCH 2023

At 642 million euros, the cost of risk decreased by 1.4% compared to the first quarter 2022 and stood at 28 basis points of customer loans outstanding. It was at a very low level that reflects low provisions on non-performing loans (stage 3) and releases of provisions on performing loans (stages 1 and 2).

The Group's operating income came to 2,199 million euros. In the first quarter 2022 it amounted to 2,463 million euros. The operating income came to 3,556 million euros when adjusted to derive the distributable net income in the first quarter 2023.

The Group's pre-tax income amounted to 2,377 million euros. In the first quarter 2022, it amounted to 2,625 million euros. When adjusted to calculate distributable net income it came to 3,734 million euros in the first quarter 2023.

The average corporate income tax rate stood at 36.0%, due in particular to the first-quarter recognition of taxes and contributions for the year in accordance with IFRIC 21 "Taxes", a large portion of which is not deductible. The average corporate income tax rate stood at 36.5% in the first quarter 2022.

The Group closed the sale of Bank of the West on 1 February 2023. The conditions of this transaction announced on 20 December 2021 fall within the scope of application of IFRS 5 relating to groups of assets and liabilities held for sale. In accordance with IFRS 5, the result of discontinued activities amounted to 2,947 million euros in the first quarter 2023 (229 million euros in the first quarter 2022). In the first quarter 2023, this result reflects the capital gain on the sale of Bank of the West and is treated as an extraordinary item and thus excluded from the distributable net income.

Net income, Group share thus came to 4,435 million euros in the first quarter 2023. In the first quarter 2022, it amounted to 1,840 million euros. Distributable net income amounted to 2,845 million euros in the first quarter 2023. It reflects the Group's solid intrinsic performance after the sale of Bank of the West and after the end of the contribution to the ramp-up of the Single Resolution Fund.

The non-revaluated return on tangible equity stood at 14.1% (13.5% in the first quarter 2022).

As at 31 March 2023, the common equity Tier 1 ratio stood at 13.6%1. The Liquidity Coverage Ratio (end of period) amounted to 139% as at 31 March 2023 (129% as at 31 December 2022). The Group's immediately available liquidity reserve amounted to 466 billion euros, equivalent to more than one year of room to manoeuvre compared to market resources. The leverage ratio2 stood at 4.4%.

Net tangible book value3 per share came to 84.8 euros, equivalent to a compound annual growth rate of 7.6% since 31 December 2008, illustrating steady value creation throughout economic cycles.

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

Lastly, the Group continues to strengthen its internal controls set-up.

1. CRD5, including IFRS 9 transitional arrangements
2. Calculated in accordance with Regulation (EU) 2019/876
3. Revaluated

5	RESULTS AS AT 31 MARCH 2023