BNP Paribas A solid bank well positioned to move forward Jean-Laurent Bonnafé Chief Executive Officer G ld Goldman Sachs Conference, Brussels S h C f B l 14 June 2012 1
Disclaimer Figures included in this presentation are unaudited. On 18 April 2012, BNP Paribas issued a restatement of its quarterly results for 2011 reflecting, in particular, an increase of capital allocated to each business from 7% to 9% of risk-weighted assets, the creation of the “Domestic Markets” division and transfers of businesses between business units. In these restated results, data pertaining to 2011 has been represented as though the transactions had occurred on 1 st January 2011. This presentation is based on the restated 2011 quarterly data. This presentation includes forward-looking statements based on current beliefs and expectations about future events This presentation 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 , p , g y , p p acquisitions, changes in economic conditions globally 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 p g p y p y g g new information or future events. The information contained in this presentation 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 contained herein. None of BNP Paribas or its representatives shall have any liability whatsoever in negligence or None of BNP Paribas or 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. 2 Goldman Sachs - June 2012 Résultats 31.03.2012
Overview A solid bank which has swiftly adapted to the new environment, with a proven track record in risk and liquidity management A resilient performance through the crisis with a strong presence in wealthy domestic markets and a strong presence in wealthy domestic markets and a client driven CIB model Significant presence in growing markets 3 Goldman Sachs - June 2012 Résultats 31.03.2012
Solid Bank with Proven Track Record Strong Presence in Wealthy Domestic Markets Client Driven CIB Model Adapting to the new Environment Significant Presence in Growing Markets Significant Presence in Growing Markets 4 Goldman Sachs - June 2012 Résultats 31.03.2012
Adaptation Plan Solvency Risk-weighted assets Ratio (bp) Ratio (bp) (€b (€bn equivalent) i l t) Realised Realised Plan Plan at 31.03.2012* at 31.03.2012* CIB 57 41 -45 -32 � 80% of the target already achieved as of 31 March 2012 hi d f 31 M h 2012 Retail R t il 7 7 3 3 -6 6 -3 3 Other activities 36 36 -28 -28 Total 100 80 -79 -63 Sovereign debt S i d bt 30.04.2012 Sovereign exposures (€bn)* 30.06.2011 30.04.2012* Group Share Programme countries 5.3 1.5 1.1 � Greek sovereign debt: €0.2bn Other euro zone countries 68.6 48.3 41.0 � Total for programme countries: Total euro zone 73.9 49.8 42.1 Group share exposure Rest of the world 32.3 16.2 15.7 substantially reduced substantially reduced Total 106.2 66.0 57.8 Swift adaptation to the new environment * Including the sale of RBL whose main closing was on 20 April 2012 5 Goldman Sachs - June 2012 Résultats 31.03.2012
A Solid Bank: Solvency Solvency ratio 10,4% 10,1% 9,6% 9% 9,2% 8,0% 5,4% 58,9 58,9 60,1 55,4 49,6 , 29,0 € bn 31.12.08 31.12.09 31.12.10 31.12.11 31.12.11* 31.03.12 01.01.13e Basel 3*** Basel 2.5 Basel 2 5** Basel 2 Basel 2 (fully-loaded) Common equity Tier 1 ratio Common equity Tier 1 capital 9% Basel 3 (fully loaded) CET1 ratio on 01.01.13 * Pro forma Basel 2; ** CRD3; *** CRD4 as anticipated by BNP Paribas 6 Goldman Sachs - June 2012 Résultats 31.03.2012
A Solid Bank: all Currencies Cash Balance Sheet Global Cash Balance Sheet (1) (€bn, banking prudential scope) Assets Assets Liabilities Liabilities 985 985 78 Deposits with central banks Surplus: €51bn 47 47 Interbank assets 203 ST funding (including LTRO) o/w $38bn Fixed income securities (2) 129 Trading assets with cients (3) 44 142 MLT funding Funding needs of 634 Customer loans 548 customer activity Client deposits (4) 92 Equity and related accounts Tangibles and intangible assets 53 31 03 12 31.03.12 31 03 12 31.03.12 €51bn surplus of stable funding (1) Balance sheet with netted amounts for derivatives, repos, securities lending/borrowing and payables/receivables; (2) Including HQLA; (3) With netted amounts for derivatives, repos and payables/receivables; (4) o/w MLT funding placed in the networks: €48bn 7 Goldman Sachs - June 2012 Résultats 31.03.2012
A Solid Bank: Liquidity and Medium/Long-Term Funding q y g g 2012 MLT funding structure – €18bn – Liquidity buffer as at 31.03.12 breakdown by source 274 €bn Other Additional assets 17% (used for: repo, 73 monetary policy, Public senior clearing systems) g y ) sec red secured 201 6% Private placements Public senior Deposits with 58% 78 unsecured central banks* 7% Available Available Retail banking Liquidity Unencumbered 12% assets eligible to 123 central banks** � 2012 MLT programme: €20bn � Liquid asset reserve immediately available : €201bn** � €18bn completed*** by end-May 2012 Amounting to ~100% of short-term � Average maturity: 5.7 years � wholesale funding wholesale funding At mid-swap +108bp � 90% of the MLT funding programme already completed * O/w deposits with the Fed: $41bn as at 31.03.12; ** After haircuts; *** Including issues at the end of 2011 on top of the €43bn completed under the 2011 programme 8 Goldman Sachs - June 2012 Résultats 31.03.2012
A Proven Risk Management Track Record (1/3) g ( ) Cost of risk/Gross operating income 2007-2011* Cost of risk/Gross operating income 2007 2011 142% 132% 71% 70% 57% 49% 49% 47% 47% 47% 40% 40% 39% % 38% 38% 30% 9% CS CS DB DB BNPP BNPP ISP ISP SAN SAN BBVA BBVA WF WF SG SG JPM JPM UCI UCI BARC HSBC CASA BARC HSBC CASA BoA BoA Citi Citi RBS RBS Stringent risk policy with proven effectiveness * Source: banks; UBS not included due to negative cumulated GOI over the period 9 Goldman Sachs - June 2012 Résultats 31.03.2012
A Proven Risk Management Track Record (2/3) g ( ) Benchmarking Market risks RWA** Average 99% 1-day interval VaR as a % of total RWA as a % of total RWA €m €m 52 47 48 43 20,4% 40* 16,8% 17,8% 18,4% 6 6 5 4 Commodities 7 13 8 15 11 12,6% , Forex & Others Forex & Others 15 15 15 15 10 10 22 22 22 22 13 9,3% 34 40 25 Equities 28 35 6,1% 5,9% 41 40 36 Interest rates 32 30 Credit -50 -51 -62 -61 -60 Netting Netting BNPP HSBC SG RBS CS DB BARC UBS 1Q11 2Q11 3Q11 4Q11 1Q12 � Low Value at Risk: ~€50m in average 2010-1Q12 No day of losses > VaR in 2011-1Q12 despite some extremely high levels of volatility � Only 10 days of losses > VaR since 2007, validating the theoretical approach � Market risk diversified across various asset classes and representing the � lowest percentage of total RWAs amongst comparable banks Cautious and successful management of market risks * Including BNP Paribas Fortis integrated as of 01.07.2011 (BNP Paribas Fortis: average VaR €3.7m in 4Q11); ** Banks (31.12.11) 10 Goldman Sachs - June 2012 Résultats 31.03.2012
A Proven Risk Management Track Record (3/3) g ( ) Correlation between CoR and RWA ( (2007-2011)** ) 10-year Backtesting ) 2007-2011 90% (Corporate portfolio*) 80% 1.9x 70% erage Assets) 60% 1.1x Validating 1x 50% threshold 40% age RWA/Ave R 2 =0.85 BNP Paribas 30% Target PD/ GRR ex post/ Actual DR GRR ex ante 20% (10y average) (10y average) 10% 10% (Aver 0% PD: Probability of Default - DR: Default Rate 0% 1% 2% 3% 4% 5% 6% 7% GRR: Global Recovery Rate Cumulated Cost of Risk (2007–2011)/Average Assets (2007-2011) Validation of the internal model * CIB and French Retail Banking; ** Diversified European Banks and JPM, WF and BoA for the US 11 Goldman Sachs - June 2012 Résultats 31.03.2012
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