BNP Paribas

Annual Report (ESEF) • Mar 20, 2025

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ifrs-full:ReserveOfInsuranceFinanceIncomeExpensesFromInsuranceContractsIssuedExcludedFromProfitOrLossThatWillBeReclassifiedToProfitOrLossMember R0MUWSFPU8MPRO8K5P83 2024-12-31 ifrs-full:ReserveOfRemeasurementsOfDefinedBenefitPlansMember R0MUWSFPU8MPRO8K5P83 2024-12-31 ifrs-full:RetainedEarningsMember iso4217:EUR iso4217:EURxbrli:shares Presentation of the BNP Paribas Group 1.1Group presentation 1.2Key figures 1.3History 1.4Presentation of operating divisions and business lines 1.5BNP Paribas and its shareholders Corporate governance and internal control 2.1Report on Corporate governance 2.2Statutory Auditors’ report 2.3The Executive Committee 2.4Internal control 2024 Review of operations 3.1BNP Paribas consolidated results 3.2Results by division/business line 3.3Balance sheet 3.4Profit and loss account 3.52024 CSR achievements 3.6Recent events 3.7Outlook 3.8Financial structure 3.9Alternative Performance Measures (APM) – Article 223-1 of the AMF’s General regulation Consolidated financial statements for the year ended 31 december 2024 4.1Profit and loss account for the year ended 2024 4.2Statement of net income and changes in assets and liabilities recognised directly in equity 4.3Balance sheet at 31 December 2024 4.4Cash flow statement for the year ended 31 December 2024 4.5Statement of changes in shareholders’ equity between 1 January 2023 and 31 December 2024 4.6Notes to the financial statements prepared in accordance with IFRS as adopted by the European Union 4.7Statutory Auditors’ report on the consolidated financial statements Risk and capital adequacy - Pillar 3 5.1Annual risk survey 5.2Capital management and capital adequacy 5.3Risk management [Audited] 5.4Credit risk 5.5Securitisation in the banking book 5.6Counterparty credit risk 5.7Market risk 5.8Liquidity risk 5.9Operational risk 5.10Insurance risks [Audited] 5.11Environmental, social and governance risk Appendix 1: Sovereign exposures Appendix 2: Regulatory capital – Detail Appendix 3: Countercyclical capital buffer and G-SIB buffer Appendix 4: Capital requirements of significant subsidiaries Appendix 5: Environmental, social and governance risk Appendix 6: List of tables and figures Appendix 7: Acronyms Information on the parent company financial statements at 31 December 2024 6.1BNP Paribas SA financial statements Notes to the parent company financial statements 6.2BNP Paribas SA five-year financial summary 6.3Disclosures of investments of BNP Paribas SA in 2024 affecting at least 5% of share capital of French companies 6.4Non-tax-deductible expenses and charges 6.5Statutory Auditors’ report on the financial statements A committed bank: information concernIng the social and environmental responsIbility of BNP Paribas 7.1Sustainability statements 7.2Vigilance plan 7.3Statement on modern slavery and human trafficking 7.4SASB and TCFD standards General information 8.1Documents on display 8.2Material contracts 8.3Dependence on external parties 8.4Significant changes 8.5Investments 8.6Information on locations and businesses in 2024 8.7Founding documents and Articles of Association 8.8Statutory auditors’ report on related party agreements 8.9Person responsible for auditing the financial statements 8.10Person responsible for the Universal registration document Tables of concordance Universal registration document Annual financial report (including the Management Report and the Report on Corporate governance) Presentation of the BNP Paribas Group 1.1Group presentation 1.2Key figures Results Market Capitalisation Long-term and short-term ratings 1.3History 1.4Presentation of operating divisions and business lines Corporate and Institutional Banking Commercial, Personal Banking and Services Investment & Protection Services (IPS) Corporate centre 1.5BNP Paribas and its shareholders Share capital Changes in share ownership Listing information Shareholder dashboard Creating value for shareholders Communication with shareholders Shareholder Liaison Committee Dividend BNP Paribas registered shares Shareholders’ Annual General Meeting Disclosure thresholds 1.1Group presentation With its integrated and diversified model, BNP Paribas is a leader in banking and financial services in Europe. The Group leverages on strong customer franchises and business lines with strong positions in Europe and favourable positions internationally, strategically aligned to better serve customers and long-term partners. It operates in 64 countries and has almost 178,000 employees(1), including nearly 144,000 in Europe. The Group’s activities are diversified and integrated within a distinctive model combining Commercial & Personal Banking activities in Europe and abroad, Specialised Businesses (consumer credit, mobility and leasing services, and new digital businesses), insurance, Private Banking and asset management, and banking for large corporates and institutionals. BNP Paribas’ organisation is based on three operating divisions: Corporate & Institutional Banking (CIB), Commercial, Personal Banking & Services (CPBS) and Investment & Protection Services (IPS). These divisions include the following businesses: Corporate & Institutional Banking (CIB) division, combines: Global Banking; Global Markets; and Securities Services. Commercial, Personal Banking & Services division, covers: Commercial & Personal Banking in the Eurozone: Commercial & Personal Banking in France (CPBF), BNL banca commerciale (BNL bc), Commercial & Personal Banking in Italy, Commercial & Personal Banking in Belgium (CPBB), Commercial & Personal Banking in Luxembourg (CPBL); Commercial & Personal Banking outside the Eurozone, organised around Europe-Mediterranean, covering Commercial & Personal Banking outside the Eurozone in particular in Central and Eastern Europe, Türkiye and Africa; Specialised Businesses: BNP Paribas Personal Finance, Arval and BNP Paribas Leasing Solutions, New Digital Businesses (in particular Nickel, Floa, Lyf) and BNP Paribas Personal Investors. Investment & Protection Services division, combines: Insurance (BNP Paribas Cardif); Wealth and Asset Management: BNP Paribas Asset Management, BNP Paribas Real Estate, the management of the BNP Paribas Group’s portfolio of unlisted and listed industrial and commercial investments (BNP Paribas Principal Investments) and BNP Paribas Wealth Management. BNP Paribas SA is the parent company of the BNP Paribas Group. ➤The diversified model feeds industrial platforms and production plants… ➤...as well as customer franchise: cross-selling accounted for 33% of Group revenues in 2024 1.2Key figures Results 2024 2023 distributable() 2023 reported 2022 Restated according to IFRS 17 and 9 Revenues (in millions of euros) 48,831 46,927 45,874 45,430 Gross operating income (in millions of euros) 18,638 17,347 14,918 15,566 Net income Group share (in millions of euros) 11,688 11,232 10,975 9,848 Earnings per share (in euros)() 9.57 9.21 8.58 7.52 Return on tangible equity() 10.9% 11.0% 10.7% 10.2%(*) Based on net income Group share adjusted for interest on undated super subordinated notes deemed equivalent to preferred shares issued by BNP Paribas SA and treated as a dividend for accounting purposes, based on the average number of shares outstanding during the year for 2024, 2023 reported and 2022. Return on tangible equity is calculated by dividing net income attributable to equity holders (adjusted for interest on undated super subordinated notes issued by BNP Paribas SA, treated as a dividend for accounting purposes and adjusted for the foreign exchange effect on redeemed undated super subordinated notes) by average tangible permanent shareholders’ equity, not revalued, between the beginning of the year and the end of the year (shareholders’ equity attributable to equity holders adjusted for changes in assets and liabilities recognised directly in equity, undated super subordinated notes, remuneration net of tax payable to holders of undated super subordinated notes, the distribution project, intangible assets and goodwill). Results serving as a basis for calculating the distribution in 2023 and reflecting the Group’s intrinsic performance post Bank of the West sale and post ramp-up of the Single Resolution Fund (SRF), excluding extraordinary items; net earnings per share calculated on the number of shares outstanding at the end of the period. () 2022 return on tangible equity calculated on the basis of reported 2022 results, i.e. net income, Group share of EUR 10,196 million. market Capitalisation 31/12/2024 31/12/2023 31/12/2022 Market capitalisation (in billions of euros) 67.0 71.8 65.7 Source: Bloomberg. Long-term and short-term ratings Long-term and short-term ratings as at 20 March 2025 Long-term and short-term ratings as at 22 March 2024 Outlook Date of last review Standard & Poor’s A+/A-1 A+/A-1 Stable 24 April 2023 Fitch AA-/F1+ AA-/F1+ Stable 16 October 2024 Moody’s A1/Prime-1 Aa3/Prime-1 Stable 17 December 2024 DBRS AA (low)/R-1 (middle) AA (low)/R-1 (middle) Stable 20 June 2024 1.3History 1966:Creation of BNP The merger of BNCI and CNEP to form BNP represented the largest restructuring operation in the French banking sector since the end of the Second World War. 1968:Creation of Compagnie Financière de Paris et des Pays-Bas 1982:Nationalisation of BNP and Compagnie Financière de Paris et des Pays-Bas at the time of the nationalisation of all French banks In the 1980s, deregulation of the banking sector and the growing tendency of borrowers to raise funds directly on the financial market transformed the banking business in France and worldwide. 1987:Privatisation of Compagnie Financière de Paribas With 3.8 million individual shareholders, Compagnie Financière de Paribas had more shareholders than any other company in the world. Compagnie Financière de Paribas owned 48% of the capital of Compagnie Bancaire. 1993:Privatisation of BNP BNP’s return to the private sector represented a new start. The 1990s were marked by a change in the level of profitability of the Bank, which had the highest return on equity of any major French institution in 1998. This period was marked by the launch of new banking products and services, the development of activities on the financial markets, expansion in France and at the international level, and preparation for the advent of the euro. 1998:Creation of Paribas On 12 May 1998, the merger between Compagnie Financière de Paribas, Banque Paribas and Compagnie Bancaire was approved. 1999:A momentous year for the Group Following an unprecedented double tender offer and a stock market battle waged over six months, BNP was in a position to carry out a merger of equals with Paribas. For both groups, this was the most important event since their privatisation. It gave rise to a new Group with tremendous prospects. At a time of economic globalisation, the merger created a leading player in the European banking sector. 2000:Creation of BNP Paribas BNP and Paribas merged on 23 May 2000. The new Group derived its strength from the two major financial and banking lines from which it descends. It has two goals: to create value for shareholders, clients and employees by building the bank of the future, and to become a leading global player. 2006:Acquisition of BNL in Italy BNP Paribas acquired BNL, Italy’s 6th-largest bank. This acquisition transformed BNP Paribas, providing it with access to a second Domestic Market in Europe. In both Italy and France, all of the Group’s business lines can now develop their activities by leveraging a nationwide banking network. 2009:Merger with the Fortis group BNP Paribas took control of Fortis Bank and BGL (Banque Générale du Luxembourg). 2012:Launch of Hello bank! 2015:Acquisition of BGZ Polska in Poland, which will become BNP Paribas Bank Polska 2018:Acquisition of Nickel which offers banking solutions that are accessible to all, directly online or at tobacconists, without conditions of resources 2020:Agreement with Deutsche Bank for the takeover of its Prime Brokerage business 2023:Closing of the sale of Bank of the West to BMO Financial Group 2024:Redeployment of capital from the divestment of Bank of the West with notably the acquisition of BCC Vita and the signing of a partnership with Gruppo BCC Iccrea, allowing the insurance business to access a new distribution network in Italy; the acquisition of Neuflize Vie and the signing of a partnership with Neuflize OBC, allowing the insurance business to develop the Ultra High Net Worth Individuals distribution network in France; the signing of the acquisition project(2) of HSBC Wealth Management activities in Germany to position the Wealth Management business among the leaders in Germany; the signing of the acquisition project(3) of AXA IM and the partnership with AXA; with the combined contribution of BNP Paribas’ asset management platforms, the newly formed business would represent EUR 1,500 billion in asset under management(4) and would become a leading European player in the sector. More specifically, it would become a European leader in the management of long-term savings assets for insurance as well as pension funds with close to EUR 850 billion in assets under management(5), leveraging powerful platforms of public and private assets. This acquisition would also enable the newly formed business to benefit from the market position and expertise of the team dedicated to the private assets of AXA IM, factors for future growth with institutional and individual customers. 1.4Presentation of operating divisions and business lines Corporate and Institutional Banking With just over 40,000 people in 52 countries, Corporate & Institutional Banking (CIB) serves two types of clients – corporates and financial institutions (Banks, Insurance Companies, Asset Managers, etc.) – offering them tailored solutions in Capital Markets, Securities Services, Financing, Risk Management, Cash Management and Financial Advice. Acting as a bridge between corporate and institutional clients, CIB aims to connect the financing needs of its corporate clients with the investment needs of its institutional clientele. In 2024, approximately 37% of BNP Paribas’ revenues from operating divisions were generated by CIB. The division’s streamlined and efficient structure is designed to meet the needs of BNP Paribas’ corporate and institutional clients. CIB is thus organised around three main global business lines and three major regions: Business lines: Global Banking; Global Markets; Securities Services. Regions: EMEA (Europe, Middle East, Africa); Americas; APAC (Asia Pacific). 2024 awards Euromoney Awards for Excellence 2024: World’s Best Bank for Financial Inclusion; World’s Best Bank for Securities Services; Central and Eastern Europe’s (CEE) Best Bank for Financing; Latin America’s Best Bank for Sustainable Finance; Western Europe’s Best Bank for Financing; France’s Best Bank for Corporates; France’s Best Investment Bank; India’s Best Bank for Corporate Responsibility; Luxembourg’s Best Bank. IFR Awards 2024 - IFR Special Reports: Bond House – Investment-Grade Corporate Bond House; ESG Financing House; EMEA Leveraged Finance House; EMEA CLO House; Foreign Exchange Derivatives House. Environmental Finance Sustainable Debt Awards 2024: Lead Manager of the Year, sustainability bonds – sovereign; Lead Manager of the Year, sustainability bonds – supranational, sub-sovereign and agency (SSA); Loan Sustainability Coordinator of the Year. Global Banking The Global Banking business is structured around two axes. On the one hand, the commercial support of around 4,400 large corporate clients of BNP Paribas to meet their banking needs via all the solutions offered by the BNP Paribas Group. On the other hand, global product and service platforms, including: Loan Financing Solutions (traditional loans and specialised financing, including export financing and project financing, acquisitions and leveraged finance, or securitisation in conjunction with Global Markets); Advisory on Mergers & Acquisitions (advisory mandates for acquisitions or disposals, strategic financial advice, privatisation advice, etc.); Primary Activities on the bond and equity markets (IPOs, capital increases, convertible and exchangeable bond issues, etc.); Transaction Banking Solutions (liquidity management, cash management deposit collection, trade finance and supply chain management as well as the associated foreign exchange risk hedging services in collaboration with Global Markets). Since February 2023, Global Banking, previously organised around three independent regional platforms, has adopted a global organisation, with the aim of ensuring better commercial and operational coordination of teams and enabling better support for clients on an international scale. This set-up supports the Group’s One Bank approach, offering clients entering a corporate business centre, access to an international Global Banking platform and ensuring they benefit from the expertise of all the other Group business centres. In EMEA (Europe, Middle East, Africa), Global Banking activities are present in 29 countries. This set-up reinforces the One Bank for Corporates approach developed in close cooperation with the Group’s Commercial & Personal Banking. In Asia-Pacific, Global Banking covers more than 1,100 Asian companies and more than 900 multinational clients with a presence in 12 territories. In the Americas, Global Banking serves around 700 companies and 500 multinational clients in the United States, Canada and 6 Latin American countries. Awards 2024 Global Capital Syndicated Loan Awards: Loan House of the Year; Best Arranger of Western European Loans; Best Arranger of French Loans; Most Innovative Bank for ESG Lending. Mergermarket Awards: France Financial Adviser of the Year. 2024 Rankings #1 Global Banking platform in EMEA(6); #1 ex aequo in Transaction Banking EMEA(7); #4 in Transaction Banking globally(8); #1 in DCM and Corporate Investment Grade DCM in EMEA(9); #1 in Loans in EMEA(10); #2 in HY bonds in EMEA (in vol.)(11); #1 in Securitisation in EMEA (in vol.)(12); #1 all ESG Bonds & Loans globally(13). Global Markets Global Markets (GM) serves a wide range of corporate and institutional clients (institutions, private banks, distributors, etc.) with investment, hedging, financing, research and market intelligence products and services across all asset classes. As an industry leader with significant market share on global financial markets and regularly ranked as one of the leading providers, GM offers a wide range of financial products and services on the equity, interest rate, foreign exchange, local and credit markets. With over 4,600 employees, GM has global coverage, operating in over 30 markets worldwide including a number of large-scale business centres, in particular London, Paris, New York, Hong Kong, Singapore and Tokyo. The business comprises three global business lines, across two core activities:: Fixed Income, Currencies & Commodities: Primary; Asset Financing and Securitisation; Repo Financing; Secondary Credit; Rates, Options and Commodities; FX and Local Markets. Equity & Prime Services: Equity Derivatives; Cash Equities; Prime Services. Global Markets also offers a long-established foreign exchange Prime Brokerage, and a leading global Derivatives Execution and Clearing service, under the umbrella of its Technology Platforms business. BNP Paribas Corporate & Institutional Banking is delivering on its strategy to become the leading European markets house on the world stage. Through both investment and organic growth, the Bank has built a comprehensive markets offering across its business lines. Global Markets has continued to offer consistently excellent service across its comprehensive product range, acting as a strong, reliable European partner for global clients. 2024 Awards SRP Europe Awards – Best House, Autocalls; Best House, Benelux; Best House, Eastern Europe; Best House, Italy; Best Proprietary Index Provider; Best Issuer Italy; Best Issuer France; Energy Risk Awards – Sustainable finance house of the year; Global Capital European Securitization Awards – ESG Bank of the Year; FX Week e-FX Awards – Best Liquidity Provider for Forwards/Swaps; Best Liquidity Provider for Corporates; Global Capital Derivatives Awards – Global Derivatives House of the Year; Derivatives House of the Year - Europe, Asia; Equity Derivatives House of the Year - Europe, Asia; Research and Strategy House of the Year; FX Derivatives House of the Year - Europe, Asia; Structured Products House of the Year; Thought Leader in ESG; Global Capital Bond Awards – Most Impressive Bank for Corporate Bonds; Most Impressive Corporate Bond House in Non-core Currencies; Most Impressive Bank for Corporate Capital Structure Advice; Most Impressive Bank for Corporate Swaps and Other Derivatives; Most Impressive Bank for Senior Unsecured Financial Institution Bonds; Most Impressive FIG House in Euros; Most Impressive Bank for ESG Capital Markets in CEEMEA; The Trade Awards - Leaders in Trading – Best Price Improvement Capabilities; Risk Awards – OTC Trading Platform of the Year. 2024 Rankings Number 1 ranked EMEA DCM volume by book runner – FY 2024(14); Number 1 ranked EUR denominated DCM volume by book runner – FY 2024(15). Securities Services Securities Services is one of the major global players in securities services with EUR 13,249 billion in assets under custody and EUR 2,763 billion in assets under administration. With a global reach covering more than 90 markets, Securities Services’ custody network is one of the most extensive in the industry. In its Awards for Excellence 2024, leading financial sector publication Euromoney has named BNP Paribas World’s Best Bank for Securities Services. Euromoney notably acknowledged that beyond “a strong period of new mandates and client expansion”, they awarded Securities Services at BNP Paribas for its “commitment over the much longer term”. Securities Services offers solutions to all participants across the investment cycle: investment banks, broker-dealers, banks and market infrastructures (sell-side operators) are offered solutions in Execution Services, Derivatives Clearing, local and global Clearing, Settlement and Custody for all asset classes worldwide. Outsourcing Solutions for middle and back-office activities are also provided; institutional investors – asset managers, hedge funds, private equity funds, real estate and sovereign wealth funds, insurance companies, pension funds, fund distributors and promoters (buy-side operators) – enjoy a wide range of services: Global Custody, Depositary Bank and Trustee Services, Transfer Agent and Fund Distribution Support, Fund Administration and Middle-Office Outsourcing, Investment, Risk Assessment and Performance Reporting; issuers (originators, arrangers and corporates) have access to a wide range of management services: Securitisation and Structured Finance Services, Debt Agency Services; market and financing services are offered to all market participants: Securities Lending and Borrowing, foreign exchange, Credit and Collateral Management, Triparty Collateral Management, Trading Service and Financing. 2024 awards World’s Best Bank for Securities Services (Euromoney Awards for Excellence 2024); European Custodian of the Year (Funds Europe Awards 2024); European Custodian, Asia Pacific Custodian, Asia Pacific Fund Administrator, Innovation in Custody (Asset Servicing Times Industry Excellence Awards 2024); Best provider as Rated by Global Custodians – Emerging Markets (Global Custodian Leaders in Custody Awards 2024); Best ESG Custodian (The Asset Triple A Sustainable Investing Awards 2024); Best Sub-Custodian Bank in Western Europe (Global Finance’s Best Sub-custodian Bank Awards 2024); Administrator of the Year – Debt/Loan (Private Equity Wire European Credit Awards 2024). Commercial, Personal Banking and Services Commercial, Personal Banking & Services (CPBS) Commercial, Personal Banking & Services includes the Group’s Commercial & Personal Banking networks and certain specialised businesses. Employing more than 100,000 people, Commercial, Personal Banking & Services generated 53% of the revenue of BNP Paribas’ operating divisions in 2024 (61% for Commercial & Personal Banking and 39% for Specialised Businesses). Commercial, Personal Banking & Services includes BNP Paribas’ Commercial & Personal Banking: in the Eurozone countries including France (CPBF), Italy (BNL bc), Belgium (CPBB operating under the BNP Paribas Fortis brand) and Luxembourg (CPBL operating under the BGL BNP Paribas brand); in countries “outside the Eurozone”, and in particular in Ukraine, Poland, Türkiye, Kosovo, Morocco and Algeria and through an equity interest in China. The CPBS division also includes specialised business lines: Arval: a key player in long-term vehicle leasing and a specialist in mobility solutions with nearly 1.8 million vehicles leased; BNP Paribas Leasing Solutions: a European leader in professional equipment financing with average loan outstandings of EUR 24.1bn at end 2024; BNP Paribas Personal Finance: one of the major players in the financing of individuals in Europe with nearly 40% of outstandings dedicated to the automotive market; BNP Paribas Personal Investors: a leading digital bank in Germany and an online broker in India (on 27 November 2024, the Indian activities were sold at 100% to Mirae Group), with a broad retail offering focused on savings and investment for 2.0 million clients in Germany, across three brands (Consorsbank, DAB and Wealth Management Private Banking); Hello bank!, the Group’s main digital bank in France, Belgium and Germany, had 3.7 million customers at the end of December 2024. The Bank thus offers a full set of solutions adapted to the needs of its various customer bases (individuals, professionals, small businesses, corporates); new Digital Business lines such as Nickel (alternative banking services), which has opened over 4.3 million accounts in France since its creation and continues to grow in Europe, with a launch in Spain in 2021, Belgium and Portugal in 2022, and Germany in 2023, Floa (one of the French leaders in Buy Now Pay Later that joined the BNP Paribas Group in February 2022 and has around 4 million customers in Spain, Belgium, Italy, Portugal and France), or Kantox, acquired in July 2023 jointly with CIB Global Markets (leader in currency management automation technology). The Cash Management activities (No. 1 in Europe for large corporate clients(16)), Trade Finance (No. 1 in Europe(1)) and Factoring (No. 1 in Europe(17)), in synergy with the CIB division’s Global Banking business complete the offer to the Commercial & Personal Banking corporate clients around the One Bank for Corporates approach. The Wealth Management activity is developing its Private Banking model within Commercial & Personal Banking. A cross-functional team, Partners in Action for Customer Experience (PACE), aims to help Commercial & Personal Banking activities offer a better customer experience. Commercial & Personal Banking in France (CPBF) With nearly 23,000 employees, Commercial & Personal Banking in France (CPBF) supports its customers in all their projects. CPBF offers innovative solutions in financing, payment, wealth & asset management, and insurance to 7.3 million individual customers, 778,000 professionals and very small enterprises, 24,500 corporate clients (SMEs, mid-sized and large corporates) and more than 54,000 associations. CPBF thus occupies leading positions in Private Banking and Corporate Banking as well as strong positions in retail and professional banking. Combining the best in digital and human interaction, it provides its customers with broad interface capabilities, ranging from essential banking services, through a self-care solution, to customised guidance using dedicated teams and experts. CPBF is structured around 10 regions covering 139 territories, making it possible to provide all customer bases with the right level of proximity whilst maintaining synergies between business lines. All customer bases have dedicated areas appropriate to their needs: for individual and professional customers: 1,545 branches and 6,199 ATMs operating under the BNP Paribas and BNP Paribas – Banque de Bretagne brands(18); CPBF also provides its customers with a full online relationship capability, based on: a website, mabanque.bnpparibas, a digital showcase for clients which non-clients can also access via the guest area, and a new mobile app, “Mes Comptes”, featuring a simplified digital experience and streamlined design for its 3.35 million “mobile only” clients. New functions, such as the mobile dashboard for managing savings, confirm the CPBF aim always to serve its clients better in digital(19);, Hello bank! passed the symbolic milestone of one million clients in 2024 and confirmed its position as the No. 1 bank in digital customer relations in France for the past five years. This year 280,000 clients joined Hello bank! including 106,000 Orange Bank clients thanks to the reception and account opening system specially created for them. Hello bank! also launched its business offering for legal entities (i.e. entities with a SIREN number assigned by INSEE) to meet the needs of entrepreneurs more effectively. The Hello bank! website has been completely redesigned to enhance user experience quality, making navigation as intuitive as on the mobile app. Recent adoption of generative AI is gradually boosting the relevance of the HelloïZ chatbot’s responses; 9 customer service centres located in the regions, handling requests received by email, telephone, chat or secure messaging; for small business customers, a dedicated and unique system of 44 Entrepreneur Spaces bringing together 200 locations, combining proximity and expertise; for Private Banking customers, 59 Private Banking centres located throughout France (for customers with more than EUR 250,000 in financial assets) and 15 Wealth Management offices (for customers with more than EUR 5 million in financial assets), making BNP Paribas Private Bank the leading private bank in France for Wealth Management(20); for corporate clients, a sizeable organisation that brings together multiple skills and dedicated teams: 39 business centres for SME, mid-cap and key account customers, including 6 specialised divisions (Innovation, Real Estate, Images & Media, Green Desk, Non-profit Organisations & Social Impact, banking & Financial Services) and one skills and advice centre dedicated to the social and environmental transition, offer customised solutions that meet the specific needs of clients, unique Investment Banking capabilities for our SME/mid-cap customers with a team of advisory bankers and synergies between the business lines and subsidiaries (M&A, Structured Finance, Private Equity, stock market and wealth optimisation), 25 trade centres and 6 trading rooms, a business support service (Client Service), a Cash Customer Service (CCS) and specific customer support centres, 65 WAI hubs(21) supporting startups and innovative companies and one dedicated innovation hub: WAI Paris, spaces for acceleration and connection with the ecosystem. BNP Paribas, through the hundred or so WAI bankers across France, now supports over 4,000 companies, including 88% of Next40 companies, 84% of FT120 companies and 78% of the FrenchTech 2030(22); specialised subsidiaries: BNP Paribas Factor, one of the European leaders in factoring, which offers management solutions for trade receivables and suppliers; BNP Paribas Développement, a capital investment company and Portzamparc that allows private customers and SMEs to invest or obtain financing on the stock market; Copartis, a company specialising in the outsourcing of banking products, and Cofiloisirs, a major player in film and audiovisual financing whose main activity is the structuring of production loans; for customers in the French Overseas Departments and Collectivities, four regional subsidiaries, several teams and an economic interest group (GIE) in mainland France dedicated to individual, professional, Private Banking and Corporate customers (including two WAI divisions - Reunion/Antilles Guyana – and two Green Desks – Reunion/Antilles Guyana); lastly, 44 production and sales support branches, back offices that handle all transaction and collection processing. Three independent studies(23) conducted in the second half of 2024 confirm CPBF’s digital leadership on the BNP Paribas and Hello bank! brands: for SIA Partners and Julhiet Sterwen, the Mes Comptes app is ranked No. 1 among network bank applications; for Deloitte, the Mes Comptes app stands out for its support for clients through various contact methods accessible online; for Deloitte, Hello bank! has confirmed its position as No. 1 for digital customer relations in France for the fifth year running. Furthermore, for Mindfintech, Mes Comptes was ranked as the No. 2 most innovative application in 2024 in the network banking market. And according to the Advents iBank360 survey (January 2025), BNP Paribas and Hello bank! were in the top three mobile banking applications in 2024. In 2024, BNP Paribas Private Banking was voted “Best private bank in France” by Euromoney, The Financial Times (PWM The Banker), World Finance, Global Finance and International Investor. It was also named “Best advisor network of the year (private and expert bankers)” and “best digital Private Banking platform” by Citywire France in 2024. BNL Banca Commerciale BNL bc is Italy’s 6th largest Commercial and Personal bank in terms of total assets and 6th for customer loans(24). With about 10,000 employees, BNL bc supports its customers widely. It provides a comprehensive range of banking, financial and insurance products and services to roughly 2.4 million individual customers(25), 54,000 Private Banking clients(26), 110,000 small businesses(27), 10,000 medium and large corporates(28) and 3,000 local authorities and non-profit organisations(29). This range of products and services are based on the Group’s expertise and its integrated model by developing business line cooperation. BNL bc has innovative and client-tailored offer models, leveraging on a multi-channel distribution network, organised in 5 regions (“direzioni territoriali”) and 1 transversal direct banking area, integrating products and services for Retail Banking (including a network of more than 700 life bankers and 300 financial advisors), Private Banking and Corporate Banking. This organisation, named Rete Unica, aims at extending and strengthening the cross-selling approach to the whole distribution network, which includes: for individuals and professional customers, around 570 branches, with Open BNL multi-channel branches (50) serving customers 24/7; for Private Banking customers, 27 Private Banking centres located throughout Italy; for Corporate clients and entrepreneurs, a diversified organisation: 34 corporate and small-medium enterprises centres, 5 centres for local authorities and public sector organisations, 1 trade centre for clients’ cross-border activities, 2 Italian desks to assist Italian companies abroad and multinational companies with direct investments in Italy. The distribution network is completed by: 2 specialised networks: Large Corporate network with 7 centres and Wealth Management network with 2 hubs; a sizeable number of ATMs (1,400) as well as by a growing range of cutting-edge digital, on-line and mobile banking solutions. As a result of this set-up, BNL bc has a significant position in lending to households, especially residential mortgages (market share of 6.3%(30)) and has a deposit base (3.5%(31))) above the market penetration rate (3.1%(32) in terms of number of branches). BNL bc is also well established in the corporate markets (4.2%(33)) of loans market share) and local authority, with recognised expertise in cash management, cross-border payments, project finance, structured finance and factoring, via its subsidiary Ifitalia (ranked 3rd in Italy(34)). Commercial & Personal Banking in Belgium (CPBB) BNP Paribas Fortis is the No. 1 bank for retail customers in terms of market share(35) and has strong positions in the corporate and small business sector in Belgium. BNP Paribas Fortis is also the leading Private Bank in Belgium. BNP Paribas Fortis is also No. 1 in Belgium for Corporate Banking(36) and offers a full range of financial services to corporate clients, public sector entities and local authorities. On the strength of its teams’ commitment, the Bank aims to finance the specific needs of its customers, actively contribute to the development of the Belgian economy, and support the sustainable and energy transition, while affirming a deep commitment to society. BNP Paribas Fortis has a commercial organisation organised in three segments to better meet customer expectations: Retail Banking, with 3.4 million active customers(37), serves individual, independent and small business customers through a multidisciplinary team; Affluent & Private Banking with 0.36 million active customers, serves individual customers with assets of more than EUR 85,000 and independent customers and companies active in the liberal professions through a dedicated relationship manager. Private Banking services are aimed at individual customers with invested assets of more than EUR 250,000. The Wealth Management Department within Private Banking caters to customers with invested assets of more than EUR 5 million; Corporate Banking, with 87,000 active customers, serves corporate clients with more complex needs through a dedicated relationship manager (Enterprises for small and medium-sized enterprises, and Corporate Coverage for large companies and public and institutional clients). BNP Paribas Fortis serves customers through its various integrated networks, as part of a hybrid banking strategy combining physical networks and digital channels: 275 branches (including 120 independent branches) organised into four regions to serve individual, self-employed and small business customers. This set-up is supplemented by 182 franchises under the Fintro(38) brand and 656 points of sale in the bpost post office network; 31 dedicated Private Banking centres, including one remote centre and two Wealth Management centres; teams dedicated to large companies and public companies and institutional clients centralised in Brussels supplemented by a network of 14 Business Centres across Belgium for medium-sized companies and dedicated relationship managers present in the branch network for small companies within Corporate Banking; a digital platform completes the system with Banking services via the internet (Easy Banking Web) and the Easy Banking App application (3.25 million cumulative active users, including Fintro). Easy Banking Business is the online banking platform for companies and the self-employed. PaxFamilia, a secure platform with tools to support the management, monitoring and transmission of assets, has 32,046 contracts. The digital offer is supplemented by the Hello bank! digital bank which has more than 557,000 active customers(39). These digital platforms are enriched by active collaboration with fintechs such as TINK for the development of an effective budget management tool; a network of 266 ATMs (including Fintro) supplemented by 1,461 ATMs of Batopin, a joint venture of BNP Paribas Fortis, KBC, ING and Belfius, each holding a 25% stake. Batopin is installing neutral CASH points throughout Belgium in places with high customer flows; the bank is also available for customers thanks to the Easy Banking Centre which handles up to 70,000 calls per week. BNP Paribas Fortis continued its digital development and customer experience improvement, in particular with the development of remote Easy Banking services with new features and improved performance. The customer service centre building on robotics and artificial intelligence is fully deployed, allowing optimised processing of an increasing number of questions from customers and employees. BNP Paribas Fortis received several awards for its quality of service to its customers in 2024. The bank was voted “Best bank in Belgium”, “Best investment bank in Belgium” and “Belgium’s best bank for ESG” by Euromoney, “Bank of the year in Belgium” by The Banker, and “Best private bank in Belgium” by Global Finance. Commercial & Personal Banking in Luxembourg (CPBL) With a 15.8%(40) market share of the Retail Banking market and 19%(41) of the SME market, BGL BNP Paribas is the No. 2 commercial & personal bank in Luxembourg. The three business lines, Luxembourg Retail Banking (LRB), Banque des Entreprises in Luxembourg (BEL) and Private Banking in Luxembourg (PBL), actively support the financing of the economy and adapt their strategy and network to changes in customer behaviour and new consumption patterns with a focus on digitisation. With the expertise of their employees, they support their customers to bring their plan to fruition, with: a Retail Banking network supporting more than 180,000 customers on a daily basis, based on: 28 branches throughout the country and 73 ATMs for individual and corporate customers, a comprehensive and diverse range of products and services offered through an innovative multi-channel presence, encompassing a branch network as well as online, phone and mobile banking, teams of savings and investment specialists assisting customers in the management of their portfolios, teams of mortgage specialists advising customers on loans for their acquisition and construction projects, as well as specialists for professionals and liberal professions; a corporate bank dedicated to a broad and diversified corporate client base: its system of 150 employees supports large companies and SMEs, the public sector and institutional investors, real estate professionals, social organisations and start-ups, and private equity funds, each customer segment benefits from tailor-made support, with specialised asset managers for each segment and a range of adapted solutions, including financing, trade, cash management, interest rate or foreign exchange risk hedging, and the escrow account, etc., support for corporate clients includes access to the BNP Paribas Group’s specialised business lines as well as privileged access to the BNP Paribas’ One Bank for Corporates international network; a private bank organised around 5 centres serving nearly 4,000 customers and offering tailored financial and wealth management solutions. Europe-Mediterranean Within the CPBS division, Europe-Mediterranean (EM) brings together BNP Paribas’ commercial banking activities for individuals, professionals and companies outside the Eurozone. EM offers a full range of financial and extra-financial services, leveraging inter-business cooperation and the Group’s approach to risk diversification. EM has been operating in 6 countries since 29 April 2023: Poland (BNP Paribas Bank Polska), Ukraine (UKRSIBBANK), Türkiye (TEB A.S.), Kosovo (TEB Sh.A), Morocco (BMCI) and Algeria (BNP Paribas El Djazaïr), and has a minority stake in China (Bank of Nanjing). With more than 23,000 employees, EM supports its customers through three main business lines: Commercial & Personal Banking, which has a multi-channel and local network serving more than 16 million customers through a network of over 1,250 branches; Private Banking, which builds on the deployment of global Wealth Management activities in conjunction with the Group’s IPS division; Corporate Banking, with a network of 42 business centres, 15 Trade Centres and 5 desks covering Multinationals. This year, EM banks have reaffirmed their commitment, within their respective regions, to enhance the experiences of both employees and customers. For example, TEB was recognised by Global Finance Magazine as the Best SME Banking Platform(42) in Türkiye for its mobile banking platform dedicated to corporate clients, CEPTETEB İŞTE. In addition, BNP Paribas El Djazaïr launched new innovative services in its mobile application MyDigibank(43). EM operates in dynamic markets with significant growth potential by prioritising initiatives focused on social impact and ecological transition. UKRSIBBANK won the Most Resilient Bank award from FinAwards 2024(44) for the second consecutive year. The bank also signed charters to support veterans(45) and the restoration of energy infrastructure(46) to contribute to reconstruction of the country. In addition, BNP Paribas Bank Polska maintained its leading position in ESG rating in the banking sector of Poland(47) BMCI granted the first Inclusive and Sustainability Linked Financing (ISLF+) in the Moroccan market(48) to support financial inclusion. Furthermore, EM banks aim to strengthen their positions as leading employers in their respective markets, while reaffirming their commitment to ensuring that the well-being of their employees is a key priority. For instance, BNP Paribas Bank Polska(49), UKRSIBBANK(50), TEB(51) and BNP Paribas El Djazaïr(52) certified as Top Employers in 2024. BNP Paribas Personal Finance A major player in retail financing in Europe, BNP Paribas Personal Finance operates in some twenty countries under its commercial brands such as Cetelem, Findomestic, or Consors Finanz and has nearly 17,000 employees for 22 million customers. BNP Paribas Personal Finance has successfully completed its strategic transformation project to drive growth and profitability initiated in 2023, including a reorganisation of its operating model and a refocusing of its activities in Europe in Europe and the United Kingdom. BNP Paribas Personal Finance is the financial partner of its clients’ day-to-day activities, giving them the means to carry out their projects in home and personal equipment, home renovation, mobility, telecommunications and supports them in their budget management needs. BNP Paribas Personal Finance also offers its trade, distribution and mobility partners, who are looking for a financial partner, a wide range of services to promote, sell and manage financing solutions. The financing of clean mobility and home improvement are two major pillars of the development strategy. BNP Paribas Personal Finance is continuing to strengthen its mobility business, in particular through international partnerships with major manufacturers such as Stellantis and Jaguar Land Rover. It aims for mobility to represent 50% of assets under management by 2025, including EUR 7.5 billion in sustainable assets. The energy renovation of housing must improve the living conditions and comfort of consumers while reducing their greenhouse gas emissions. BNP Paribas Personal Finance aims to double its production volume to reach EUR 5 billion in sustainable assets under management by 2025. In 2023, the European Investment Bank participated in an issuance by BNP Paribas Personal Finance of asset-backed securities for a total amount of EUR 450 million. Through this financial support, BNP Paribas Personal Finance will finance EUR 627 million in subsidised loans to French households over three years, to improve the energy efficiency of housing. BNP Paribas Personal Finance has set itself a target of EUR 13.5 billion in sustainable assets under management by 2025 in total. To meet all these challenges, BNP Paribas Personal Finance is pursuing a collaborative and structured innovation approach, in line with new consumer requirements, by inventing value-added solutions for its customers and partners. The Company’s restructuring includes a development plan and investments in technology: artificial intelligence, data, robotisation and automation. The continuous adaptation of processes, tools, services and products to new challenges, combined with a customer satisfaction programme developed across all international activities, aims to offer the easiest and smoothest customer experience. Arval Arval is a major player in long-term vehicle leasing and a specialist in mobility solutions. As a specialised business within BNP Paribas’ Commercial, Personal Banking & Services division, Arval is positioned at the heart of the Group’s integrated model. Arval offers its corporate clients (from large multinationals to small and medium-sized enterprises), its partners, their employees, and individuals customised services for their travel needs. At the end of 2024, Arval had nearly 8,600 employees in the 29 countries where the Company operates, leasing nearly 1.8 million vehicles to its 400,000 clients, who benefit from alternative mobility solutions to individual cars such as car-sharing, mobility cards, or bike rentals. Arval is the No. 2 in the multi-brand long-term vehicle leasing sector in Europe, ranking No. 2 in France, Spain, Italy, and Belgium, No. 1 in Poland, and No. 3 in the Netherlands (Source: Frost & Sullivan as of the end of December 2023). Arval is the founding member of the Element-Arval Global Alliance. The fleets of all Alliance members represent more than 4.5 million vehicles in 55 countries. Arval’s CSR strategy was awarded the Platinum EcoVadis medal in 2025, placing it in the top 1% of evaluated companies. BNP Paribas Leasing Solutions BNP Paribas Leasing Solutions supports the development of its customers and partners by offering them leasing and financing solutions with services to preserve their working capital. At the heart of financing the real economy, BNP Paribas Leasing Solutions provides corporate clients with the flexibility they need to remain competitive and develop in a responsible and sustainable manner in their markets (agriculture, construction, IT, telecommunications, transportation, medical, real estate, food, materials handling, mobility infrastructure, etc.). With over 3,000 employees, the Company operates in 21 countries in Europe, China, the United States and Canada. BNP Paribas Leasing Solutions’ team of experts support: equipment manufacturers and professional software publishers with comprehensive retail financing solutions aimed at stimulating and supporting the sales of their distribution networks and resellers; distributors, dealers, resellers and integrators of professional equipment with a wide range of leasing products and services to meet the needs of their customers; corporate clients, local authorities and professionals with solutions to finance their investments. BNP Paribas Leasing Solutions supports the environmental transition of its partners and clients by financing sustainable equipment (for example EV chargers, industrial electric vehicles, etc.). In 2024, BNP Paribas Leasing Solutions advanced EUR 16.3 billion in asset finance and presently manages a EUR 40.4 billion leased asset portfolio. In 2024, BNP Paribas Leasing Solutions was recognised as “European Lessor of the Year” by Leasing Life, a magazine dedicated to leasing in Europe. (Source: 21st Annual Leasing Life Conference & Awards 2024 – Arena International (arena-international.com)). BNP Paribas Personal Investors BNP Paribas Personal Investors is a digital banking and investment services specialist. It offers a broad range of banking, credit, savings and short- to long-term investment services to 2 million customers, on mobile applications, online, by phone or face-to-face. It provides decision-making tools, advice and analyses. BNP Paribas Personal Investors also provides services and its IT platform to independent financial advisors, asset managers and fintechs. Services include market access, transactions, account management and custody services. BNP Paribas Personal Investors today has ~1,200 employees(53): on 27 November 2024, the Indian activities were sold at 100% to Mirae Group. Covering Germany, BNP Paribas Personal Investors operates under three brand names: Consorsbank for individual customers, DAB BNP Paribas for B2B partners and BNP Paribas Wealth Management Private Banking for wealthy individual customers. Consorsbank is a full-service direct bank and one of the pioneers in digital banking in Germany looking back on more than 30 years of business history. It was awarded best online broker by finance magazine Focus-Money in 2024(54). DAB BNP Paribas is a platform for financial portfolio managers and service provider for fintechs. BNP Paribas Wealth Management Private Banking offers banking services for customers with investable assets above EUR 250,000. The unit was able to exceed the threshold of EUR 10 billion in assets under management for the first time in 2024. Nickel With the acquisition of Nickel in 2017, BNP Paribas responded to customers’ need to pay, and be paid, via a simple and handy service. With over 11,500 tobacconists and Nickel Points in Europe, Nickel has a strong position in its market as notably the leading distributor of current accounts in France, and also in Portugal, and second in Spain. Thanks to its digital model and a distribution method that is present throughout the country, Nickel maintained a sustained rate of customer acquisition throughout the year. Nickel had nearly 4.3 million accounts opened at 31 December 2024 in Europe. In Europe, Nickel is growing rapidly in Spain, Belgium and Portugal and, since September 2023, in Germany, always with the same model combining digital with physical point of sale networks. Floa Key player in payment facilities, Floa is developing innovative payment facilities and financial services for consumers, merchants and fintechs. By placing innovation and customer experience at the centre of its strategy, Floa supports new consumption patterns and business activity. Its unique technological expertise enables it to guarantee simplified and secure payments for consumers and traders, both online and in-store. Floa already has almost 4 million individual customers in Europe and more than 15,000 e-commerce partners and outlets (including Cdiscount, Veepee Voyage, Samsung, Bricomarché, SFR, Iberia, etc.). Floa employs nearly 500 people in France and Europe. Floa relies on its fintech DNA and the Group’s financial strength to become a key player in “Buy Now Pay Later” in Europe. Floa was also voted Customer Service of the Year for 2024, for the fourth consecutive year in the credit institution category and for the second year in the payment solution category. Investment & Protection Services (IPS) Investment & Protection Services (IPS) The Investment & Protection Services (IPS) division brings together the Group’s activities dedicated to protection, savings, investment and real estate services. It strives to design innovative and sustainable products to support individuals, professionals, corporate clients and institutions in their projects and in their desire to have a positive impact: BNP Paribas Cardif (more than 8,800 employees, operating in 30 countries, EUR 287 billion in assets under management) designs, develops, and markets savings and protection solutions with more than 500 distribution partners to insure individuals, their projects, and their assets; BNP Paribas Wealth Management (more than 6,700 employees including commercial banks, 17 countries, EUR 462 billion in assets under management) meets the wealth and financial needs of wealthy individual customers, family offices and entrepreneurs. BNP Paribas Wealth Management is the leading private bank in the Eurozone(55); BNP Paribas Asset Management (nearly 2,100 employees, 34 countries, EUR 604 billion in assets under management) offers investment solutions to individual savers, corporate clients and institutional investors, with specific expertise: active conviction-based strategies, liquidity solutions, emerging markets, multi-asset investments, systematic investments, quantitative & index-based and private assets; BNP Paribas Real Estate (more than 4,000 employees, 24 countries, EUR 24 billion in assets under management) supports its clients – institutional investors, owners, corporate clients, local authorities, individuals, etc. – during all stages of the property life cycle: Development, Transaction, Consulting, Valuation, Investment Management and Property Management; BNP Paribas Principal Investments is responsible for managing BNP Paribas’ portfolio of unlisted and listed industrial and commercial investments. IPS employs nearly 18,800 people in 46 countries and holds strong positions in the Group’s key growth regions. The division works closely with CPBS to anticipate clients’ savings and investment needs (offers, technologies, quality of the client experience, quality of advice) and with CIB to co-construct the best investment solutions for institutional clients and large companies. In 2024, IPS announced various significant external growth transactions. The most transforming project is the acquisition of AXA IM(56). BNP Paribas Cardif As the world leader in creditor insurance(57), BNP Paribas Cardif designs, develops, and markets savings and protection solutions to insure individuals and their assets, enabling them to plan confidently throughout their lives. Operating in 30 countries and among the global leaders in bancassurance partnerships, BNP Paribas Cardif is a major player in financing the economy. It offers its more than 70 million insured clients(58) savings solutions to build and grow capital and prepare for the future through products tailored to individual needs and projects. It also offers property insurance, health insurance, budget protection, income and payment protection, protection against life’s uncertainties (unemployment, accident, death), and private digital data protection to meet evolving consumer needs. In total, more than 8,800 employees(59) worldwide contribute to gross written premiums of EUR 36.4 billion in 2024. BNP Paribas Cardif relies on a unique partnership approach based on a network of more than 500 partners. This multi-sector distribution network includes financial institutions, credit organisations, car manufacturers, retail chains, telecommunications operators, as well as brokers and wealth management advisors. The insurer supports its partners by developing the most suitable insurance solutions for their needs and those of their clients: products that are increasingly simple to understand, accessible, and inclusive, thanks to smooth and multi-channel customer journeys, as well as integrated service ecosystems around various themes: retirement, employability, housing, well-being, old age, and automotive services (warranties and maintenance contracts). After acquiring BCC Vita, the insurance company of the Italian banking group BCC Iccrea at the end of 2024, BNP Paribas Cardif has pursued its external growth momentum with the acquisition of Neuflize Vie in France, the subsidiary dedicated to life insurance of Neuflize OBC. BNP Paribas Cardif also announced the signing of an agreement to acquire AXA Investment Managers(60), with a closing expected by mid-2025. Resolutely focused on the future, BNP Paribas Cardif also continued its transformation, leveraging in particular on data and AI for an ever more simplified customer experience, and by intensifying its partnerships with digital distribution platforms and digital players. True to its mission of making insurance more accessible, BNP Paribas Cardif aims to have a positive impact on its partners, their clients, its employees, and society in general. Concerned about its environmental impact, BNP Paribas Cardif has committed to aligning its portfolios with a carbon neutrality trajectory by 2050, reducing the carbon intensity of its investment portfolios linked to electricity producers, and has joined the Net-Zero Asset Owner Alliance. As an investor, it contributes to giving meaning to its policyholders’ investments and has set a goal of dedicating an average of EUR 1 billion per year by 2025 to positive impact investments, with EUR 3 billion(61) invested in 2024. BNP PARIBAS WEALTH MANAGEMENT BNP Paribas Wealth Management is a leading global private bank and the number one private bank in the Eurozone(62) with EUR 462 billion in assets under management as of 12/31/2024(63). Present in 3 regions (Europe, Asia, and the Middle East) and 17 countries, it employs over 6,700(64) staff and supports a clientele of entrepreneurs, family offices, and high-net-worth individuals in protecting, growing, and transferring their assets. In Europe, the Private Bank develops by being linked to the commercial banks of the BNP Paribas Group. Across all geographies, particularly in Asia, it leverages both the Bank’s historical presence and the Corporate & Institutional Banking businesses to meet the most sophisticated needs of its entrepreneurial clients. As a reference player in the industry due to its experience, reputation, and expertise, BNP Paribas Wealth Management offers its clients a wide range of products and services by mobilising its extensive network of experts: financial experts, wealth engineers, discretionary portfolio managers, financial analysts, private bankers specialised in family shareholding, credit structuring experts, real estate specialists, responsible investment experts, advisors in rural land, art, philanthropy, etc., as well as privileged access to the entire expertise of the BNP Paribas Group. BNP Paribas Wealth Management stands out particularly for its proximity to the “Entrepreneurs and Families” clientele, supporting them in building, developing, and preserving their business and personal wealth, leveraging all the Group’s capabilities. For many years, sustainable investment and responsible innovation have been at the heart of BNP Paribas Wealth Management’s culture. Finally, in a constant effort to innovate, BNP Paribas Wealth Management’s range of digital solutions continues to develop to offer a personalised client experience. Thus, a new version of the myWealth mobile application was co-created with its clients and launched in 2024. BNP Paribas Wealth Management was recognised in 2024 with multiple awards, including: Euromoney Private Banking Awards 2024: a total of 28 prestigious awards, of which Best Private Bank in the World for Sustainable Development, Best Private Bank in Europe, Best Digital Private Bank in Europe and Asia, Best Private Bank for NextGen in Hong Kong; Global Private Banking Awards 2024 by PWM-The Banker: Best Private Bank in Europe for Entrepreneurs, Best Private Bank in France, Best Private Bank in Hong Kong; PWM Wealth Tech Awards 2024: Best Private Bank for Vision, Culture, and Use of Technology; Global Private Banking Innovation Awards 2024 by Global Private Banker: Vincent Lecomte, Chief Executive Officer of BNP Paribas Wealth Management, was named Chief Executive Officer of the Year. BNP Paribas Asset Management BNP Paribas Asset Management (BNP Paribas AM) is the BNP Paribas Group’s dedicated asset management business, employing near 2,100 employees in 34 countries(65), with a significant commercial presence in Europe and the Asia-Pacific region. Through the BNP Paribas integrated model, BNP Paribas AM serves a large international client base and has close relationships with the distribution networks within BNP Paribas’ commercial banks. Ranked the 7th asset manager in Europe(66), BNP Paribas AM manages assets totaling EUR 604 billion(67) and employs 558 investment professionals(68). BNP Paribas AM offers investment solutions for individual investors (through internal distributors – private banks and Commercial & Personal Banking within BNP Paribas – and external distributors), corporates and institutional investors (insurance companies, pension funds, official institutions). BNP Paribas AM focuses its expertise on five core capabilities - High Conviction Active Strategies, Emerging Markets, Private Assets, Systematic, Quantitative & Index investments, and Liquidity Solutions - with investment processes incorporating quantitative, ESG(69) and fundamental research. These capabilities can be combined into multi-asset solutions aligned with our clients’ goals. BNP Paribas AM’s priority is to deliver long-term sustainable returns to its clients, based on an investment approach that integrates sustainability. 90%(70) of assets under management of its European-based open-ended funds, representing EUR 285 billion(71), are classified under article 8 or article 9 of the European SFDR regulation(72), which identifies funds according to their sustainability potential. This positioning is also supported by its 170(73) labelled funds(74), representing EUR 135 billion(75) in assets. Furthermore, BNP Paribas AM won multiple awards in 2024, among which: Best of the Best Awards 2024: Best ESG Manager award in Asia (for the fifth consecutive year); ESG Investing Awards 2024: Best Corporate Sustainability Strategy, investment manager in Europe. BNP PARIBAS REAL ESTATE Thanks to its wide range of services and its more than 4,000(76) employees, BNP Paribas Real Estate supports its clients at all stages of the real estate lifecycle, from the design of a construction project to its daily management, through its business lines: Property Development, Advisory (Transaction, Consulting, Valuation), REIM, and Property Management. This multidisciplinary offering covers all asset classes, whether offices, housing, warehouses, logistics platforms, retail, hotels, serviced residences, land estates, etc. It is offered according to the needs of clients, whether they are institutional investors, owners, corporate users (SMEs, large companies), public entities, local authorities, or individuals. In commercial real estate, BNP Paribas Real Estate is present in 24 countries, with: direct operations in eleven European countries, a continent where the Company is one of the leaders and where its main markets are France, Germany, and the United Kingdom. It is also present in Belgium, Spain, Ireland, Italy, Luxembourg, the Netherlands, Poland, and Portugal; platforms in Hong Kong (SAR China), Dubai, and Singapore to support local investors in their real estate strategies in Europe; a network of commercial alliances with partners in Austria, Greece, Hungary, Jersey, Northern Ireland, Portugal, the Czech Republic, Romania, Slovakia, Switzerland, and the United States. In Property Development, BNP Paribas Real Estate is mainly present in the Ile-de-France region and several major regional cities such as Bordeaux, Lyon, Marseille, and Nice. Internationally, the Property Development activity is present in Germany, the United Kingdom, and the Iberian Peninsula. All projects aim for environmental certifications. Aware of its economic, social, and environmental responsibilities, BNP Paribas Real Estate aims for sustainable real estate in all its activities and pursues a policy of improving the environmental qualities of the assets it builds, manages, and owns. In a constant effort to improve its services, BNP Paribas Real Estate has launched a data visualisation solution. Through an online platform, clients can explore a 3D map of Europe, benefiting from Google’s Photorealistic 3D Tiles technology, enriched with their own real estate assets and public data. The power of the solution lies in the cross-referencing of data, which allows for a review of past urban developments and anticipation of future changes at the neighbourhood, city, or country level. In 2024, BNP Paribas Real Estate received a dozen awards and recognitions in Europe, including: HR: Top Employer Certification for the 2nd consecutive year; ESG: Carbon Challenge Award (Trophées Défis RSE); REIM: Best SCPI invested in offices for Accès Valeur Pierre (Magazine le Particulier) Grand Prix des TOP Fonds Immobiliers 2024 for “Pierre Impact” (media ToutSurMesFinances); Property Development: a Silver Pyramid for the La Fabrique residential project in Courbevoie (Fédération des Promoteurs d’IDF) – 364 housing units (ownership, intermediate, and social), social student residence, retail, and school group for a total of 34,300 m2; Spain: “Iberian Property Awards”: Top Marketing Initiative of the Year, Top Research Report of the Year; Germany: 5 Top Deal Awards. Corporate centre PERSONAL FINANCE’S MORTGAGE BUSINESS In the context of the Group’s 2014-2016 business development plan, Personal Finance’s Mortgage Business, a significant portion of which is managed in run-off, was transferred to “Corporate Centre” as at 1 January 2014.Americas, Global Banking serves around 700 companies andAmericas, Global Banking serves around 700 companies andAmericas, Global Banking serves around 700 companies andAmericas, Global Banking serves around 700 companies and 1.5BNP Paribas and its shareholders Share capital At 31 December 2023, BNP Paribas SA’s share capital stood at EUR 2,294,954,818 divided into 1,147,477,409 shares. Details of historical changes in share capital are provided in chapter 6, note 6a Transactions in share capital. In 2024, the number of shares comprising the share capital was affected by the cancellation of 16,666,738 shares following market buybacks: thus, at 31 December 2024, the share capital of BNP Paribas stood at EUR 2,261,621,342, divided into 1,130,810,671 shares with a par value of EUR 2 each. The shares are all fully paid-up and are held in registered or bearer form at the choice of their holders, subject to compliance with the relevant legal provisions. None of the Bank’s shares entitles their holders to an increased dividend or double voting rights or limit the exercise of voting rights. Changes in share ownership ➤Changes in the Bank's ownership structure over the last two years Dates 31/12/2022 31/12/2023 31/12/2024 Shareholders Number of shares (in millions) % of share capital % of voting rights Number of shares (in millions) % of share capital % of voting rights Number of shares (in millions) % of share capital % of voting rights SFPI (1) 96.55 (2) 7.8% 7.8% 63.22 (3) 5.5% 5.5% 63.22 (4) 5.6% 5.6% BlackRock Inc. 74.46 (5) 6.0% 6.0% 79.34 (6) 6.9% 6.9% 67.91 (7) 6.0% 6.0% Amundi 74.00 (8) 6.0% 6.0% 61.33 (9) 5.4% 5.4% 55.95 (10) 5.0% 5.0% Grand Duchy of Luxembourg 12.87 1.0% 1.0% 12.87 1.1% 1.1% 12.87 1.1% 1.1% Employees 52.73 4.3% 4.3% 57.65 5.0% 5.0% 50.91 4.5% 4.5% of which Group FCPE (11) 40.78 3.3% 3.3% 40.83 3.5% 3.5% 40.27 3.6% 3.6% of which directly held 11.95 1.0% () 1.0% () 16.82 1.5% () 1.5% () 10.64 0.9% () 0.9% () Corporate officers 0.3 NS NS 0.3 NS NS 0.3 NS NS Treasury shares (12) 1.4 0.1% - 1.49 0.1% - 1.53 0.1% - Individual shareholders (13) 68.6 5.6% 5.6% 66.52 5.8% 5.9% 79.89 7.1% 7.1% Institutional investors (13) 853.42 69.2% 69.3% 804.76 70.2% 70.2% 798.52 70.6% 70.7% European 464.59 37.7% 37.7% 431.87 37.7% 37.7% 421.77 37.3% 37.3% Non-European 388.83 31.5% 31.6% 372.89 32.5% 32.5% 376.76 33.3% 33.4% TOTAL 1,234.33 100.0% 100.0% 1,147.48 100.0% 100.0% 1,130.81 100.0% 100.0% Société Fédérale de Participations et d’Investissement: a public-interest limited company (société anonyme) acting on behalf of the Belgian State. According to the statement by SFPI, AMF Document No. 217C1156 dated 6 June 2017. According to the statement by SFPI dated 25 May 2023. According to the statement by SFPI dated 7 January 2025. According to the statement by BlackRock dated 13 September 2022. According to the statement by BlackRock dated 19 July 2023. According to the statement by BlackRock dated 1 November 2024. According to the statement by Amundi dated 16 November 2022. According to the statement by Amundi dated 19 May 2023. According to the statement by Amundi dated 5 December 2024. The voting rights of the FCPE (profit-sharing scheme) are exercised, after the decision is taken by the Supervisory Board, by its Chairman. Excluding trading desks’ inventory positions. Based on analyses from the SRD 2 surveys – Institutional investors excluding BlackRock and Amundi. () Of which 0.4% for the shares referred to in article L.225-102 of the French Commercial Code to determine the threshold above which the appointment of a director representing employee shareholders must be proposed. The sum of the values indicated in the tables may differ slightly from the reported total due to rounding. ➤BNP Paribas shareholding structure at 31 December 2024 (in % of voting rights) To the Company’s knowledge, there are no shareholders, other than SFPI and BlackRock Inc., who held more than 5% of the share capital or voting rights as at 31 December 2024. The Société Fédérale de Participations et d’Investissement (SFPI) became a shareholder of BNP Paribas on the occasion of the merger with the Fortis group, which took place in 2009; during the same year, it made two declarations of threshold crossing to the Autorité des Marchés Financiers (AMF): on 19 May 2009 (AMF Disclosure No. 209C0702), SFPI disclosed that its interest in BNP Paribas’ capital and voting rights had risen above the 5% and 10% disclosure thresholds following its transfer of a 74.94% stake in Fortis Bank SA/NV in return for the issue of 121,218,054 BNP Paribas shares, which at the time represented 9.83% of BNP Paribas’ share capital and 11.59% of its voting rights. The disclosure stated in particular that neither the Belgian government nor SFPI were considering taking control of BNP Paribas. At the same time, BNP Paribas notified the AMF (AMF Disclosure No. 209C0724) that an agreement had been reached between the Belgian government, SFPI and Fortis SA/NV (renamed Ageas SA/NV at end-April 2010), giving Fortis SA/NV an option to buy the 121,218,054 BNP Paribas shares issued as consideration for SFPI’s transfer of its shares in Fortis Bank, with BNP Paribas having a right of subrogation regarding the shares concerned; on 4 December 2009 (AMF Disclosure No. 209C1459), SFPI disclosed that it owned 10.8% of BNP Paribas’ share capital and voting rights. This change resulted mainly from: BNP Paribas’ capital increase through the issuance of ordinary shares in 2009, the capital decrease by the Bank through the cancellation, on 26 November 2009, of preferred shares issued on 31 March 2009 to Société de Prise de Participation de l’État. On 27 April 2013, the Belgian government announced the buy-back via SFPI of the purchase option that had been granted to Ageas. On 6 June 2017 (AMF Disclosure No. 217C1156), SFPI disclosed that it owned 7.74% of the share capital and voting rights of BNP Paribas; this drop below the 10% capital and voting rights thresholds resulted from the sale of shares on the market. Since that date, SFPI has disclosed statutory threshold crossings without crossing legal thresholds. On 9 May 2017 (AMF Disclosure No. 217C0939), BlackRock Inc. disclosed that its interest in BNP Paribas’ capital and voting rights had risen, as at 8 May 2017 above the 5% disclosure thresholds. On this date, BlackRock Inc. held 63,223,149 BNP Paribas shares on behalf of its clients and the funds it manages. On 18 June 2019 (AMF Disclosure No. 219C0988), BlackRock Inc. stated that it held 62,764,366 BNP Paribas shares. Since that date, BlackRock Inc. has disclosed statutory threshold crossings without crossing legal thresholds. On 6 January 2022 (AMF Disclosure No. 222C0046), Amundi, acting on behalf of the funds it manages, disclosed that its interest in BNP Paribas’ capital and voting rights had risen above the 5% legal thresholds on 31 December 2021 and that it held 74,482,498 BNP Paribas shares. On 9 December 2024 (AMF Disclosure No. 224C2592), Amundi, acting on behalf of the funds it manages, disclosed that its interest in BNP Paribas’ capital and voting rights had fallen below the 5% legal thresholds on 4 December 2024 and that it held 55,951,643 BNP Paribas shares. Listing information When the shareholders of BNP and Paribas approved the merger between the two banks at the Shareholders’ Combined General Meeting of 23 May 2000, BNP shares became BNP Paribas shares. The Euroclear-France code for BNP Paribas is the same as the previous BNP code (13110). Since 30 June 2003, BNP Paribas shares have been registered under ISIN code FR0000131104. To help increase the number of shares held by individual shareholders, BNP Paribas carried out a two-for-one share split on 20 February 2002, reducing the par value of the shares to EUR 2. BNP shares were first listed on the Cash Settlement Market of the Paris Stock Exchange on 18 October 1993, following privatisation, before being transferred to the Monthly Settlement Market on 25 October of that year. When the monthly settlement system was discontinued on 25 September 2000, BNP Paribas shares became eligible for the Deferred Settlement Service (SRD). Since privatisation, a Level 1 144A ADR (American Depositary Receipt) programme has been active in the United States, where JP Morgan Chase is the depositary bank (two ADRs correspond to one BNP Paribas share). The ADRs have been traded on OTCQX International Premier since 14 July 2010 in order to provide better liquidity and visibility to US investors. BNP Paribas has been part of the CAC 40 index since 17 November 1993 and became part of the EURO STOXX 50 index on 1 November 1999. Since 18 September 2000, the Bank's shares have been included in the STOXX EUROPE 600 index. BNP Paribas also joined the DJ BANKS TITANS 30 Index, an index comprising the thirty largest banks worldwide. It is also included in the EURO STOXX Banks and STOXX Banks indices. Lastly, BNP Paribas shares are also included in the main sustainable development benchmarks, including Euronext Sustainable World 120, Europe 120, Euro 120 and France 20 indices, FTSE4Good Index Series, and Stoxx Global ESG Leaders Index. All of these elements foster liquidity and share price appreciation, as the BNP Paribas share is necessarily a component of every portfolio and fund that tracks the performance of these indexes. ➤BNP Paribas share price performance between 31 December 2009 and 31 December 2024 ➤Comparison over the long term with the EURO STOXX Banks and STOXX Banks indexes (rebased on share price) Source: Bloomberg. Over a fifteen-year period, from 31 December 2009 to 31 December 2024, despite geopolitical, financial and health crises, the increase in the BNP Paribas share price (+5.9%) was significantly higher than the performance of the Eurozone banks (EURO STOXX Banks: -33.6%) and European banks (STOXX Banks: -4.1%), demonstrating the long-term resilience of the diversified and integrated model. ➤BNP Paribas monthly averages and high and low monthly closing prices since January 2023 At 31 December 2024, BNP Paribas’ market capitalisation was EUR 67.0 billion, ranking the Enterprise 12th among CAC 40 stocks; BNP Paribas’ free float also put the bank in 12th place on the Paris market index and in 21st place in the EURO STOXX 50 index. Daily trading volume on Euronext Paris averaged 2,802,080 shares in 2024, down 14% from the previous year (3,257,629 shares per trading session in 2023). Including the volumes traded on multilateral trading facilities (MTFs), daily trading volume in 2024 averaged 7,125,419 shares, down 5.8% (7,562,994 shares traded daily in 2023). ➤Trading volume on Euronext Paris in 2024 (daily average) ➤Total trading volume on Euronext Paris and MTFs in 2024 (daily average) Source: Bloomberg Composite EU Quote BNPP. Shareholder dashboard In euros 2020 2021 2022 2023 2024 Net income attributable to the shareholders per share(1) 5.31 7.26 7.80 9.21 9.57 Net book value per share(2) 82.3 88.0 89.0 96.0 102.5 Net dividend per share 2.66 (3) 3.67 (5) 3.90 (6) 4.60 (7) 4.79 (8) Cash pay-out ratio (%)(9) 50.00 (4) 50.00 (5) 50.00 (6) 50.00 (7) 50.00 (8) Share price Highest(10) 54.22 62.55 68.07 67.02 73.08 Lowest(10) 24.51 39.71 40.67 47.02 53.08 Year-end 43.105 60.77 53.25 62.59 59.22 CAC 40 index on 31 December 5,551.41 7,153.03 6,473.76 7,543.18 7,380.74 Based on the average number of shares outstanding during the year. Calculated in 2023 on the basis of the distributable 2023 earnings and the number of shares outstanding at year-end. Before distribution. Revalued net book value based on the number of shares outstanding at year-end. EUR 1.11 distributed following the approval of the Shareholders’ Combined General Meeting of 18 May 2021, plus EUR 1.55 distributed following the approval of the Ordinary Annual General Meeting of 24 September 2021; taking into account only the distribution of the 2020 dividend. Taking into account only the distribution of the 2020 dividend. Taking into account only the distribution of the 2021 dividend and not taking into account the EUR 900 million share buyback programme, executed between 1 November 2021 and 6 December 2021. Taking into account only the distribution of the 2022 dividend and not taking into account the EUR 962 million share buyback programme in respect of the so-called “ordinary” distribution. Taking into account only the distribution of the 2023 dividend and not taking into account the EUR 1.05 billion share buyback programme in respect of the so-called “ordinary” distribution. Subject to approval by the Annual General Meeting of 13 May 2025 and not taking into account the EUR 1.08 billion share buyback programme planned for 2025. Cash dividend distribution recommended at the Annual General Meeting expressed as a percentage of distributable net income attributable to shareholders. Recorded intra-day during trading session. Creating value for shareholders Total Shareholder Return (TSR) Calculation parameters Dividends are reinvested in BNP shares then in BNP Paribas shares; 50% tax credit was included until this system was abolished at the beginning of 2005. Exercise of preferential subscription rights during the rights issues of March 2006 and October 2009. Returns stated are gross, i.e. before any tax payments or brokerage fees. Calculation results The following table indicates, for various periods ending on 31 December 2024, the total return on a BNP share, then on a BNP Paribas share, as well as the effective annual rate of return. Holding period Investment date Share price at the investment date (in euros) Number of shares at the end of the calculation period Initial investment multiplied by Effective annual rate of return Since privatisation of BNP 18/10/93 36.59 7.3351 11.8717 8.25% 30 years 03/01/95 37.20 6.5576 10.4393 8.13% Since the creation of BNP Paribas 01/09/99 72.70 5.7552 4.6881 6.28% 25 years 03/01/00 92.00 5.7552 3.7046 5.38% 20 years 03/01/05 53.40 2.4170 2.6804 5.05% 16 years 02/01/09 30.50 2.0541 3.9883 9.03% 13 years 02/01/12 30.45 1.8251 3.5494 10.23% 10 years 02/01/15 49.43 1.6449 1.9707 7.02% 8 years 02/01/17 60.12 1.5268 1.5040 5.23% 6 years 02/01/19 38.73 1.3882 2.1227 13.37% 5 years 02/01/20 53.20 1.2921 1.4383 7.54% 4 years 04/01/21 43.86 1.2921 1.7446 14.96% 3 years 03/01/22 61.11 1.2311 1.1930 6.07% 2 years 02/01/23 53.91 1.1499 1.2632 12.41% 1 year 02/01/23 61.67 1.0751 1.0324 3.25% Communication with shareholders BNP Paribas endeavours to provide all shareholders with clear, consistent, high-quality information at regular intervals, in accordance with best market practice and the recommendations of stock market authorities. The Investor Relations team informs institutional investors and financial analysts about the Group’s strategy, major events concerning the Group’s business and the Group’s quarterly results. In 2025, the timetable is as follows(77): 4 February 2025: publication of 2024 full-year results; 24 April 2025: publication of the first quarter 2025 results; 24 July 2025: publication of the second quarter and first half 2025 results; 28 October 2025: publication of the third quarter and the first nine months 2025 results. Informative briefings are organised several times a year for all market participants, in particular when the annual and half-year results are released, or on specific topics, providing General Management with an opportunity to present the BNP Paribas Group and its strategy. Deep Dive meetings focused on presenting in detail a Métier or an activity of the Group have been organised in 2024 regarding Insurance, Equity & Prime Services and Corporate and Retail Payments. More specifically, an Investor Relations Officer is responsible for liaising with managers of ethical and socially responsible funds. The Shareholder Relations team provides information and deals with queries from the Bank’s 416,300 individual shareholders (internal sources and SRD2 Survey at 31 December 2024). Twice a year, shareholders receive a financial newsletter outlining the Group’s main developments, and the minutes of the Annual General Meeting are sent in early July. During the year, shareholders are invited to meetings in various French cities where the Company’s achievements and strategy are presented by Executive Management (in 2024, for example, in Toulouse on 11 June and Lille on 8 October). The members of the Cercle des actionnaires de BNP Paribas (BNP Paribas Shareholders’ Club), set up in 1995, are the 46,500 shareholders holding at least 200 shares. They receive the financial newsletters each half-year and the minutes of the Annual General Meeting. They also receive regular emails informing them of new events offered by the Club, all of which can be found on the website https://cercle-actionnaires.bnpparibas/, which also features all the available services. Each Club member has a personal and secure access to manage his/her registrations and retrieve his/her invitations. In 2024, the Club offered nearly 300 face-to-face events (guided tours, concerts, live shows, film screenings, tennis competitions, workshops to raise awareness of climate issues, etc.), thematic videoconferences (for example, cybersecurity, history) and podcasts (interviews with art historians, etc.). In addition, the site’s Magazine pages contain articles related to the programming and BNP Paribas Group’s commitments. A French toll-free phone number, 0800 666 777, provides the BNP Paribas share market price and allows members to leave a voice message for the Club team. Messages can also be sent by email to cercle.actionnaires@bnpparibas.com. The BNP Paribas website (https://invest.bnpparibas/), available in French and English, offers users access to all information on the BNP Paribas Group (including press releases, key figures, coverage of the main events, etc.). All documents such as integrated reports and Reference documents or Universal registration documents, can also be viewed and downloaded. The financial calendar gives the dates of important forthcoming events, such as the Annual General Meeting, results announcements and shareholder meetings. The website also features the latest share performance data and comparisons with major indexes, as well as a tool for calculating performance. Reports and presentations relating to BNP Paribas’ business and strategy aimed at all audiences (institutional investors, asset managers and financial analysts) are also available. The “Individual Shareholders” section shows information and features specifically designed for individual investors, in particular, access to information such as proposed events. A section dedicated to social and environmental responsibility describes the Bank’s goals, the policy followed and the main achievements in this area. In addition, there is a specific section dedicated to the Annual General Meeting which includes information regarding attendance at the meeting, ways to vote and practical matters, as well as a presentation of the resolutions and the complete text of all speeches made by corporate officers. Webcasts of the Annual General Meeting can be viewed on the Bank’s website. In response to the expectations of individual shareholders and investors, and to meet strict regulatory transparency and disclosure requirements, BNP Paribas regularly adds sections to its website and improves existing sections with enhanced content and new functions. Shareholder Liaison Committee After its formation in 2000, BNP Paribas decided to create a Shareholder Liaison Committee to help the Group improve communications with its retail shareholders. At the Annual General Meeting that approved the merger between BNP and Paribas, the Chairman of BNP Paribas initiated the process of appointing members to this committee, which was fully established in late 2000. Chaired by Mr Jean Lemierre, it includes ten shareholders who are both geographically and socio-professionally representative of the retail shareholder population, along with two employees or former employees. Each member serves a three-year term. When their terms expire, announcements are published in the Group’s various financial publications; any shareholder may apply. At end 2024, the Liaison Committee was composed of: Mr Jean Lemierre, Chairman; Mr Jean-Louis Busière, residing in the Moselle Department; Mr Michel Cassou, residing in the Tarn Department; Mr Jean-Marc Cornier, residing in Meudon; Mr Patrick Cunin, residing in the Essonne Department; Ms Catherine Drolc, residing in Montpellier; Ms Anne Doris Dupuy, residing in the Gironde Department; Mr Jean-Marie Lapoirie, residing in the Rhône Department; Mr Jacques Martin, residing in the Alpes-Maritimes Department; Ms Françoise Rey, residing in Paris; Mr Jean-Jacques Richard, residing in Toulon; Mr Ugo Cuccagna, BNP Paribas employee; Ms Mireille Loizeau, BNP Paribas employee. In accordance with the provisions of the charter, to which all participants have adhered and which serves as the Internal Rules, the members of the committee met twice in 2024, on 27 March and 27 September. The main topics of discussion in 2024 included: BNP Paribas’ capital structure and changes therein, particularly among “retail shareholders”; the draft 2023 Universal registration document, and specifically, the chapters on “Shareholder Relations”, “Corporate governance” and “Social and Environmental Responsibility”; the integrated report; the quarterly, half-yearly and annual results; the initiatives taken in preparation for the Annual General Meeting, including its organisation; proposals for resolutions at the AGM; the presentation of the economic outlook and environment; the geopolitical situation; the presentation of Asset Management activities, and more specifically its Socially Responsible Investment component; the activities and challenges of the Group’s IT teams, in particular issues related to the challenges of digitalisation and cyber security. Dividend At the Annual General Meeting of 13 May 2025, the Board of directors will propose a dividend of EUR 4.79 per share (up by 4.1% compared to EUR 4.60 distributed in 2024). The ex-dividend date and the payment of the coupon would then take place on 19 May and 21 May 2025 respectively in the event of a positive vote by the AGM. The total amount of the proposed cash distribution amounts to EUR 5,411 million, compared to a total of EUR 5,198 million in cash distributed in 2024. Additionally, on 3 February 2025, BNP Paribas’ Board of directors, chaired by Jean Lemierre, approved the principle of a semi-annual interim dividend starting in the 2025 financial year, which would be paid out in late September. Each interim dividend would amount to 50% of the net earnings per share of the first half-year, in accordance with BNP Paribas’ cash payout distribution policy. The first interim dividend related to the 2025 financial statements would be paid on 30 September 2025 and calculated on the basis of 50% of the net earnings per share of the first half of 2025. ➤Change in dividend (in euros per share) Following ECB/2020/19 recommendation of the European Central Bank of 27 March 2020 on dividend distribution policies during the Covid-19 pandemic, the amounts corresponding to the dividend distribution initially proposed to the Annual General Meeting of 19 May 2020, of EUR 3.10 per share, were appropriated to the “Other reserves” item. Subject to approval at the Annual General Meeting of 13 May 2025. Limitation period for dividends: any dividend unclaimed five years after its due date is forfeited, as provided by law. Dividends for which payment has not been sought are paid to the Public Treasury. BNP Paribas registered shares At 31 December 2024, 22,326 shareholders held BNP Paribas registered shares. Registered shares held directly with BNP Paribas Shareholders who hold registered shares directly with BNP Paribas: automatically receive all documents regarding the Bank that are sent to shareholders; can call a French toll-free phone number: 0800 007 535 to place buy and sell orders(78) and to obtain any information; benefit from preferential brokerage rates; have access to “Uptevia Investors” (https://www.investors.uptevia.com), a fully secure dedicated website, allowing them to view their BNP Paribas registered share accounts and account movements, as well as place and track orders(1); this website is also available on tablets and smartphones; are automatically invited to Annual General Meetings without the need for an ownership certificate; may receive notice of Annual General Meetings online; pay no custody fees. Registered shares held directly with BNP Paribas cannot be registered in a PEA (Share Savings Plan), given the regulations and procedures applicable to this vehicle. Investors whose shares are held in a PEA and who want to hold them in “registered” form can opt to hold them in an administered account (see below). Registered shares held in an administered account BNP Paribas is also extending its administered share account services to institutional shareholders. For institutional shareholders, this type of account combines the main benefits of holding shares in bearer form with those of holding registered shares directly with BNP Paribas: shares can be traded at any time, through the shareholder’s usual broker; the shareholder can have a single share account, combined with a cash account; the shareholder is automatically invited to attend and vote at Annual General Meetings, without the invitation being sent through a third party; shareholders may receive notice of meetings and vote at Annual General Meetings online. Shareholders’ Annual General Meeting The procedures for BNP Paribas’ Annual General Meetings are defined in article 18 of the Bank’s Articles of association. The Board of directors calls an Ordinary General Meeting at least once a year to vote on the agenda set by the Board. The Board may call Extraordinary General Meeting for the purpose of amending the Articles of association, and especially to increase the Bank’s share capital. Resolutions are adopted by a two-third majority of shareholders present or represented. The Shareholders’ Combined General Meeting may be called in a single notice of meeting and held on the same date. The Bank’s last Shareholders’ Combined General Meeting took place on 14 May 2024 on first notice. The text of the resolutions and the video of the meeting can be viewed on the BNP Paribas website, where the original live webcast was shown. The composition of the quorum and the results of the votes cast on resolutions were posted online the day after the meeting. A specific letter to shareholders included the minutes of this meeting. The quorum broke down as follows: ➤Breakdown of quorum Number of shareholders (%) Shares (%) Present 952 4.96% 615,244 0.08% Appointment of proxy 636 3.31% 161,760 0.02% Proxy given to Chairman 7,882 41.03% 15,990,100 1.95% Postal votes 9,742 50.71% 801,510,188 97.95% Total 19,212 100.00% 818,277,292 100.00% of which online 17,283 89.96% 685,958,335 83.83% Quorum Number of ordinary shares (excluding treasury stock) 1,129,261,693 72.46% Of the 17,283 shareholders who took part in our last Shareholders’ Combined General Meeting online: 538 had requested an admission card; 6,992 had given the Chairman a proxy; 599 had given a proxy to a third party (who legally must also be a shareholder); 9,154 had voted by post. All resolutions proposed to the shareholders were approved. ➤Shareholders’ Combined General Meeting of 14 May 2024 Results of the votes Rate of approval ORDINARY MEETING First resolution: approval of the parent company financial statements for 2023 99.66% Second resolution: approval of the consolidated financial statements for 2023 99.70% Third resolution: appropriation of net income for the 2023 financial year and distribution of dividends 99.95% Fourth resolution: Statutory Auditor's special report on agreements and commitments referred to in articles L.225-38 et seq. of the French Commercial Code 99.79% Fifth resolution: authorisation for BNP Paribas to buy back its own shares 98.63% Sixth resolution: reappointment of a Statutory Auditor with the mandate of certifying accounts and of certifying sustainability information (Deloitte & Associés) 92.17% Seventh resolution: non-reappointment of two Statutory Auditors (PriceWaterHouseCoopers Audit and Mazars) and three Alternate Auditors (BEAS, Mr. Jean-Baptiste Deschryver and Mr Charles de Boisriou), and appointment of a Statutory Auditor with the mandate of certifying accounts and of certifying sustainability information (Ernst & Young et Autres) 98.65% Eighth resolution: reappointment of a Director (Mr. Christian Noyer) 98.49% Ninth resolution: ratification of the co-option of a Director and renewal of her mandate (Ms. Marie-Christine Lombard) 99.16% Tenth resolution: appointment of a Director (Ms. Annemarie Straathof) 99.85% The eleventh resolution and resolutions A to C aim to appoint a director representing employee shareholders and his/her replacement. As only one director’s seat is to be filled, only the candidate who obtains the most votes from shareholders that voted and at least the majority of those votes will be appointed Eleventh resolution: reappointment of a Director representing employee shareholders (Ms. Juliette Brisac) and of her replacement (Mr. Axel Joly) 99.06% Resolution A not approved by the Board of directors: appointment of a Director representing employee shareholders (Ms. Isabelle Coron) and of her replacement (Mr. François Buisson) 2.20% Resolution B not approved by the Board of directors: appointment of a Director representing employee shareholders (Mr. Thierry Schwob) and of his replacement (Mr. François Labrot) 2.19% Resolution C not approved by the Board of directors: appointment of a Director representing employee shareholders (Mr. Frédéric Mayrand) and of his replacement (Ms. Catherine Magnier) 2.19% Ms. Juliette Brisac is therefore appointed Director representing employee shareholders, with Mr. Axel Joly as her replacement Twelfth resolution: vote on the components of the compensation policy attributable to directors 99.26% Thirteenth resolution: vote on the components of the compensation policy attributable to the Chairman of the Board of directors 96.82% Fourteenth resolution: Vote on the components of the compensation policy attributable to the Chief Executive Officer 91.00% Fifteenth resolution: vote on the components of the compensation policy attributable to the Chief Operating Officers 88.53% Sixteenth resolution: vote on disclosures relating to compensation paid in 2023 or awarded in respect of the same year to all directors and corporate officers 95.68% Seventeenth resolution: vote on the components of the compensation paid or granted in respect of 2023 to Mr. Jean Lemierre, Chairman of the Board of directors 96.10% Eighteenth resolution: vote on the components of the compensation paid or granted in respect of 2023 to Mr. Jean-Laurent Bonnafé, Chief Executive Officer 91.25% Nineteenth resolution: vote on the components of the compensation paid or granted in respect of 2023 to Mr. Yann Gérardin, Chief Operating Officer 92.86% Twentieth resolution: vote on the components of remuneration paid or granted in 2023 to Mr. Thierry Laborde, Chief Operating Officer 92.86% Twenty-first resolution: determination of the global annual amount of Directors’ fees 98.25% Twenty-second resolution: advisory vote on the overall amount of compensation of any kind paid during 2023 to Executive Officers and certain categories of staff 99.78% Twenty-third resolution: setting the upper limit of the variable portion of remuneration payable to Executive Officers and certain categories of personnel 99.56% EXTRAORDINARY MEETING Twenty-fourth resolution: Delegation of authority to the Board of directors to increase the share capital, maintaining preferential subscription rights for existing shareholders, through the issue of ordinary shares and securities granting immediate or future access to new shares 94.79% Twenty-fifth resolution: Delegation of authority to the Board of directors to increase the share capital, with the removal of preferential subscription rights for existing shareholders, through the issue of ordinary shares and securities granting immediate or future access to new shares 92.33% Twenty-sixth resolution: Delegation of authority to the Board of directors to increase the share capital, without preferential subscription rights for existing shareholders, through the issue of ordinary shares and securities granting immediate or future access to new shares issued in consideration of securities tendered, within the limit of 10% of the share capital 94.79% Twenty-seventh resolution: Overall limit on authorisations to issue shares with the removal of, or without, preferential subscription rights for existing shareholders 99.42% Twenty-eighth resolution: Delegation of authority to the Board of directors to increase the share capital by capitalisation of reserves or earnings, share premiums or additional paid-in capital 99.70% Twenty-ninth resolution: Overall limit on authorisations to issue shares with, without, or with the removal of, preferential subscription rights for existing shareholders 94.49% Thirtieth resolution: Delegation of authority to the Board of directors to conduct transactions reserved for the members of the BNP Paribas Group Company Savings Plan, with the removal of preferential subscription rights, which may take the form of capital increases and/or reserved sales of securities 99.70% Thirty-first resolution: Delegation of authority to the Board of directors to increase the share capital, without preferential subscription rights, by issuing super-subordinated contingent convertible bonds, that would only be converted into ordinary shares, within the limit of 10% of the share capital, if the CET1 ratio becomes equal to or lower than 5.125% 96.59% Thirty-second resolution: Authorisation for the Board of Directors to reduce the share capital by cancelling shares 99.77% Thirty-third resolution: powers for formalities 99.98% Notices of meetings BNP Paribas will hold its next Shareholders’ Combined General Meeting on 13 May 2025(79). The meeting notices and invitations are available on the “invest.bnpparibas.com” website in French and English from the time of their publication in the French Bulletin of Compulsory Legal Announcements (Balo). Staff at all BNP Paribas branches are specifically trained to provide the necessary assistance and carry out the required formalities. Holders of registered shares are automatically notified, regardless of the number of shares held, with a complete notice of meeting containing in particular the agenda, the draft resolutions and a voting form. A significant and fast-growing proportion (21.0% for the AGM of 14 May 2024, compared to 20.4% for the AGM of 2023) of notices of meeting to registered shareholders were sent via the internet after the shareholders concerned had given their prior agreement to this information procedure. BNP Paribas informs holders of bearer shares via the internet regardless of the number of shares held, subject to their custodians being part of the Votaccess market system. Shareholders notified of the Annual General Meeting may take part quickly and easily. The Bank also provides custodians with notices of meetings and printed postal voting forms, which can then be sent to those shareholders who request them. Attendance at Meetings Holders of shares may gain admittance to a General Meeting provided these shares are recorded in their accounts two trading days before the Meeting(80). Holders of bearer shares must also present an entry card or certificate proving their ownership of the shares. Voting Using the Votaccess internet voting platform gives shareholders access to the notice of the Annual General Meeting. They can then either vote or appoint a proxy, or print their admission card if they wish to attend the Annual General Meeting in person. Around 90% of the shareholders who took part in the vote in May 2024 used the platform set up. Shareholders not using the online platform return the printed form enclosed with the notice of meeting to BNP Paribas. Before the Annual General Meeting, this document may be used to: request an admission card; vote by post; give proxy to another individual or legal entity; or give proxy to the Chairman of the meeting. Disclosure thresholds In addition to the legal thresholds, and in accordance with article 5 of the Articles of association, any shareholder, whether acting alone or in concert, who owns or may hold directly or indirectly at least 0.5% of the capital or voting rights of BNP Paribas, or any multiple of that percentage up to 5%, is required to notify BNP Paribas by registered letter with return receipt. Once the 5% threshold is reached, shareholders are required to disclose any increase in their interest representing a multiple of 1% of the share capital or voting rights of BNP Paribas. The disclosures described in the previous two paragraphs shall also apply when the shareholding falls below the above-mentioned thresholds. In the case of failure to comply with these disclosure requirements, either legal or statutory, the undisclosed shares will be stripped of voting rights at the request of one or more shareholders who hold a combined interest of at least 2% of the share capital or voting rights of BNP Paribas. (1) Workforce in FTE standard: corresponding to workforce (end of period) in full-time equivalent, i.e. they are accounted for in proportion to their contractual working time; this standard is also applied in chapter 1.4 of the presentation of divisions and business lines. (2) Subject to agreements with the relevant authorities. (3) Subject to agreements with the relevant authorities. (4) Based on assets as at 31.12.2023 (5) Based on assets as at 31.12.2023 (6) Source: Coalition – 31/12/2024. (7) Source: Coalition – 31/12/2024. (8) Source: Coalition – 31/12/2024. (9) Source: Dealogic – 31/12/2024. (10) Source: Coalition – 31/12/2024. (11) Source: Coalition – 31/12/2024. (12) Source: Coalition – 31/12/2024. (13) Source: Coalition – 31/12/2024. (14) Dealogic Quarterly Rankings – DCM Full Year 2024. (15) Dealogic Quarterly Rankings – DCM Full Year 2024. (16) Banking 2024 and Coalition Greenwich Voice of Client, 2024 European Large Corporate Cash Management and 2024 European Large Corporate Trade Finance studies. (17) Internal study overview of our members in the world | FCI. (18) At 31 December 2024. (19) Source: Digital Monthly Monitoring – TDMC (Digital Transformation and Customer Marketing), BNP Paribas, December 2024. (20) According to Euromoney 2024 ranking, and the Assets under management criterion. (21) WAI: We Are Innovation. (22) Source: WAI, December 2024. (23) 2024 studies carried out by the consulting firms Juliet Sterwen, Sia Partners and Deloitte, which compare the applications of retail banks, online banks and fintechs on the French market. (24) Source: annual and periodic reports of BNL and its competitors. (25) Source: internal customer data. (26) Source: internal customer data. (27) Source: internal customer data. (28) Source: internal customer data. (29) Source: internal customer data. (30) Source: Bank of Italy, October 2024. (31) Source: Bank of Italy, data as at 31/12/2024. (32) Source: annual and periodic reports of BNL and its competitors. (33) Source: Bank of Italy, data as at 31/12/2024. (34) Source: Assifact, ranking by turnover. (35) Source: Financial Market Data Monitor 2024 (Market survey on a representative sample of 2,000 households in December 2024). (36) Source: Greenwich 2024, in terms of market penetration of strategic companies (medium and large). (37) Excluding Fintro customers. (38) In December 2024, Fintro, active in the bancassurance business, had 182 branches, 886 employees and EUR 15.395 billion in assets under management (excluding insurance business) for 370,810 active clients. (39) Including 7,128 active Hello Pro customers. (40) Source: TNS ILRES – Bank Survey December 2024. (41) Source: TNS ILRES – SME Bank Survey 2024. (42) World’s Best Digital Banks 2024—Round 1 | Global Finance Magazine. (43) BNP Paribas El Djazaïr | MyDigiBank bascule. (44) UKRSIBBANK has won 3 awards in the FinAwards 2024 – European Business Association. (45) UKRSIBBANK BNP Paribas Group has joined the Charter on Financial Inclusion and Reintegration of Veterans. (46) Ukraine’s biggest banks sign memorandum on soft loans to rebuild energy infrastructure | Ukrainska Pravda. (47) BNP Paribas Bank Polska SA ESG Risk Rating. (48) https://boursenews.ma/article/marches/bmci-financement-inclusif-durable-islf (49) BNP Paribas Bank Polska S.A. | Top Employers Institute. (50) UKRSIBBANK BNP Paribas Group | Top Employers Institute. (51) Türk Ekonomi Bankası A.S. | Top Employers Institute. (52) BNP Paribas El Djazaïr | Top Employers Institute. (53) FTE excluding employees of integrated functions (54) Focus-Money 47/2024. (55) Investor communications, in terms of assets under management as published by the main banks in the Eurozone in 2024. (56) Subject to agreements with the relevant authorities. (57) Source: Finaccord 2024. (58) Source: Internal client figures, change in computation methodology in 2024. (59) Source: BNP Paribas Cardif, as of 31 December 2024. (60) Subject to agreements with the relevant authorities. (61) Source: BNP Paribas Cardif, as of 31 December 2024. (62) Investor communications, in terms of assets under management as published by the main banks in the Eurozone in 2024. (63) Source: BNP Paribas Wealth Management, as of 31 December 2024. (64) Source: BNP Paribas Wealth Management, as of 31 December 2024. (65) Source: BNP Paribas Asset Management, as of 31 December 2024. (66) Source: Excluding the United Kingdom (European Union), IPE Top 500 Asset Managers 2024 ranking. (67) Source: BNP Paribas Wealth Management, as of 31 December 2024. (68) Source: BNP Paribas Wealth Management, as of 31 December 2024. (69) ESG: Environmental, Social, Governance. (70) Source: BNP Paribas Asset Management, as of 31 December 2024. (71) Source: BNP Paribas Wealth Management, as of 31 December 2024. (72) SFDR: Sustainable Finance Disclosure Regulation. Article 8: promoting social and/or environmental characteristics. Article 9: having a sustainable investment objective. (73) Source: BNP Paribas Wealth Management, as of 31 December 2024. (74) BNP Paribas Asset Management has aligned its range of labelled funds with the new SRI label specifications. 90% of its labelled funds, in terms of AUM, have been maintained. (75) Source: BNP Paribas Wealth Management, as of 31 December 2024. (76) Source: BNP Paribas Real Estate, as of 31 December 2024. (77) Subject to change at a later date. (78) Subject to prior signature of a “brokerage services agreement” (free of charge). (79) Subject to change at a later date. (80) or any other day as provided for by the regulation applicable to the present General Meeting, and of which shareholders would be informed through the page dedicated to the General Meeting on the BNP Paribas website “invest.bnpparibas.com” Corporate governance and internal control 2.1Report on Corporate governance 2.1.1Presentation of the directors, other corporate officers and non-voting director Schedule of the terms of the directorships of company directors Other corporate officers Non-voting director 2.1.2BNP Paribas Corporate governance Internal Rules of the Board of directors Guidelines on the assessment of the suitability of Members of the management body and Key function holders Description of the implementation procedure for conflicts of interest in relation to loans and other transactions granted to the members of the management body and their related parties 2.1.3Compensation and benefits awarded to the Group’s directors and corporate officers 2.1.4Other information 2.2Statutory Auditors’ report 2.3The Executive Committee 2.4Internal control Internal control procedures relating to the preparation and processing of financial information 2.1Report on Corporate governance This Corporate governance report was prepared by the Board of directors in accordance with the last paragraph of article L.225-37 of the French Commercial Code. The information contained herein notably takes into account annex 1 of the Commission Delegated Regulation (EU) 2019/980 of 14 March 2019, AMF Recommendation No. 2012-02(1) amended on 28 July 2023, the 2024 AMF(2) report and the November 2024 Annual Report of the High Committee for Corporate governance (Haut Comité de Gouvernement d’Entreprise – HCGE). 2.1.1Presentation of the directors and corporate officers and the non-voting director ➤Composition of the Board of directors in 2024 Jean LEMIERRE Principal function: Chairman of the Board of directors of BNP Paribas Date of birth: 6 June 1950 Nationality: French Term start and end dates: 16 May 2023 – 2026 AGM Date first appointed to the Board of directors: 1 December 2014 ratified by the Annual General Meeting of 13 May 2015 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), Chairman of the Board of directors TEB Holding AS, director Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad TotalEnergies(), director Participation(1) in specialised committees of French or foreign companies TotalEnergies(), member of the Corporate Governance and Ethics Committee and member of the Strategy & CSR Committee Others(1) Centre d’Études Prospectives et d’Informations Internationales (CEPII), Chairman Paris Europlace, Vice-Chairman Association française des entreprises privées (Afep), member of the Board of directors Institut de la Finance durable (IFD), member of the Board of directors Institute of International Finance (IIF), member International Advisory Council of China Development Bank (CDB), member International Advisory Council of China Investment Corporation (CIC), member International Advisory Panel (IAP) of the Monetary Authority of Singapore (MAS), member Number of BNP Paribas shares held(1): 46,943(2) Business address: 16 boulevard des Italiens 75009 Paris France Education Graduate of the Institut d’Études Politiques de Paris Graduate of École Nationale d’Administration Law degree Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chairman of the Board of directors: BNP Paribas Director: TEB Holding AS, TotalEnergies SA Chairman: Centre d’Études Prospectives et d’Informations Internationales (CEPII) Vice-Chairman: Paris Europlace Member: Board of directors of the Association française des entreprises privées (Afep), Board of directors of the Institut de la Financial durable (IFD), Institute of International Finance (IIF), International Advisory Council of China Development Bank (CDB), International Advisory Council of China Investment Corporation (CIC), International Advisory Panel (IAP) of the Monetary Authority of Singapore (MAS) 2022: Chairman of the Board of directors: BNP Paribas Director: TEB Holding AS, TotalEnergies SA Chairman: Centre d’Études Prospectives et d’Informations Internationales (CEPII) Vice-Chairman: Paris Europlace Member: Board of directors of the Association française des entreprises privées (Afep), Board of directors of the Institut de la Financial durable (IFD), Institute of International Finance (IIF), International Advisory Council of China Development Bank (CDB), International Advisory Council of China Investment Corporation (CIC), International Advisory Panel (IAP) of the Monetary Authority of Singapore (MAS) 2021: Chairman of the Board of directors: BNP Paribas Director: TEB Holding AS, Total SA Chairman: Centre d’Études Prospectives et d’Informations Internationales (CEPII) Vice-Chairman: Paris Europlace Member: Board of directors of the Association française des entreprises privées (Afep), Institute of International Finance (IIF), Orange International Advisory Board, International Advisory Council of China Development Bank (CDB), International Advisory Council of China Investment Corporation (CIC), International Advisory Panel (IAP) of the Monetary Authority of Singapore (MAS) 2020: Chairman of the Board of directors: BNP Paribas Director: TEB Holding AS, Total SA Chairman: Centre d’Études Prospectives et d’Informations Internationales (CEPII) Vice-Chairman: Paris Europlace Member: Board of directors of the Association française des entreprises privées (Afep), Institute of International Finance (IIF), Orange International Advisory Board, International Advisory Council of China Development Bank (CDB), International Advisory Council of China Investment Corporation (CIC), International Advisory Panel (IAP) of the Monetary Authority of Singapore (MAS) At 31 December 2024. Including 1,617 BNP Paribas shares held under the Company Savings Plan. () Listed company. Jean-Laurent BONNAFÉ Principal function: Director and Chief Executive Officer of BNP Paribas Date of birth: 14 July 1961 Nationality: French Term start and end dates: 17 May 2022 – 2025 AGM Date first appointed to the Board of directors: 12 May 2010 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), Director and Chief Executive Officer Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Pierre Fabre Group: Pierre Fabre SA, director Pierre Fabre Participations, director Participation(1) in Specialised committees of French or foreign companies Pierre Fabre SA, member of the Strategic Committee Others(1) Association Française des Banques (AFB), Chairman Fédération Bancaire Française (FBF), member of the Executive Committee Association pour le Rayonnement de l’Opéra de Paris, Chairman Entreprises pour l’Environnement, Vice-Chairman La France s’engage Foundation, member of the Board of directors Number of BNP Paribas shares held(1): 113,622(2) Business address: 16 boulevard des Italiens 75009 Paris France Education Graduate of the École Polytechnique Ingénieur en chef des Mines Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director and Chief Executive Officer: BNP Paribas Chairman: Association Française des Banques (AFB), Association pour le Rayonnement de l’Opéra de Paris Vice-Chairman: Entreprises pour l’Environnement Director: Pierre Fabre Group Member: Executive Committee of the Fédération Bancaire Française (FBF), Board of directors of La France s’engage Foundation 2022: Director and Chief Executive Officer: BNP Paribas Chairman: Association Française des Banques (AFB), Association pour le Rayonnement de l’Opéra de Paris Vice-Chairman: Entreprises pour l’Environnement Director: Pierre Fabre Group Member: Executive Committee of the Fédération Bancaire Française (FBF), Board of directors of the Bank Policy Institute, Board of directors of La France s’engage Foundation 2021: Director and Chief Executive Officer: BNP Paribas Chairman: Association pour le Rayonnement de l’Opéra de Paris, Entreprise pour l’Environnement Director: Pierre Fabre SA Vice-Chairman of the Executive Committee: Fédération Bancaire Française (FBF) Member: Board of directors of La France s’engage Foundation 2020: Director and Chief Executive Officer: BNP Paribas Chairman: Association pour le Rayonnement de l’Opéra de Paris, Entreprise pour l’Environnement Director: Pierre Fabre SA Member of the Executive Committee: Fédération Bancaire Française (FBF) Member: Board of directors of La France s’engage Foundation At 31 December 2024. Including 32,247 BNP Paribas shares in the form of shares in the shareholding fund held under the Company Savings Plan. () Listed company. Jacques ASCHENBROICH Principal function: Chairman of the Board of directors of Orange Date of birth: 3 June 1954 Nationality: French Term start and end dates: 16 May 2023 – 2026 AGM Date first appointed to the Board of directors: 23 May 2017 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held under the principal function Orange(), Chairman of the Board of directors Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad TotalEnergies(), lead director Participation(1) in specialised committees of French or foreign companies BNP Paribas, Chairman of the Corporate Governance, Ethics, Nominations and CSR Committee and member of the Financial Statements Committee TotalEnergies, Chairman of the Corporate Governance and Ethics Committee and member of the Remuneration Committee and Strategy & CSR Committee Others(1) Club d’affaires franco-japonais, Co-Chairman French-American Foundation, Chairman of the Executive Committee Number of BNP Paribas shares held(1): 1,000 Business address: 111 quai du Président-Roosevelt 92130 Issy-les-Moulineaux France Education Graduate of the École des Mines Corps des Mines Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chairman of the Board of directors: Orange Director: BNP Paribas, TotalEnergies Chairman: École Nationale Supérieure Mines ParisTech Co-Chairman: Club d’affaires franco-japonais Vice-Chairman: Institut de la Finance Durable (IFD) 2022: Chairman of the Board of directors: Orange Director: BNP Paribas, TotalEnergies Chairman: École Nationale Supérieure Mines ParisTech Co-Chairman: Club d’affaires franco-japonais Member: Board of directors of the Association française des entreprises privées (Afep) 2021: Chairman and Chief Executive Officer: Valeo Group Director: BNP Paribas, TotalEnergies Chairman: École Nationale Supérieure Mines ParisTech Co-Chairman: Club d’affaires franco-japonais Member: Board of directors of the Association française des entreprises privées (Afep) 2020: Chairman and Chief Executive Officer: Valeo Group Director: BNP Paribas, Veolia Environnement Chairman: École Nationale Supérieure Mines ParisTech Co-Chairman: Club d’affaires franco-japonais Member: Board of directors of the Association française des entreprises privées (Afep) At 31 December 2024. () Listed company. Juliette BRISAC Principal function: Chief Operating Officer of the Corporate Engagement Department of the BNP Paribas Group(1) Date of birth: 22 May 1964 Nationality: French Term start and end dates: 14 May 2024 – 2027 AGM Date first appointed to the Board of directors: 18 May 2021 Offices(2) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director representing employee shareholders Supervisory Board of the Group profit sharing scheme mutual fund “BNP Paribas Actionnariat Monde”, Chairwoman Bénévolat de Compétences et Solidarité (BCS) by BNP Paribas, director Participation(2) in specialised committees of French or foreign companies BNP Paribas, member of the Financial Statements Committee Number of BNP Paribas shares held(2): 10,877(3) Business address: Millénaire 4 35 rue de la Gare 75019 Paris France Education Master’s degree in Economics and DESS in Banking & Finance from the University of Paris I Panthéon Sorbonne Graduate of the Institut français des administrateurs (IFA) Certified auditor of the Cycle des hautes études pour le développement économique (CHEDE) Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas Chairwoman: Supervisory Board of the Group profit sharing scheme mutual fund “BNP Paribas Actionnariat Monde” 2022: Director: BNP Paribas Chairwoman: Supervisory Board of the Group profit sharing scheme mutual fund “BNP Paribas Actionnariat Monde” 2021: Director: BNP Paribas Chairwoman: Supervisory Board of the Group profit sharing scheme mutual fund “BNP Paribas Actionnariat Monde” Effective 1 January 2025: Head of governance and permanent control of the Corporate Engagement Department of the BNP Paribas Group. At 31 December 2024. Including 5,962 BNP Paribas shares held under the Company Savings Plan. () Listed company. Pierre-André de CHALENDAR (until 14 May 2024) Principal function: Chairman of the Board of directors of Compagnie de Saint-Gobain(1) Date of birth: 12 April 1958 Nationality: French Term start and end dates: 18 May 2021 – 2024 AGM Date first appointed to the Board of directors: 23 May 2012 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held under the principal function Compagnie de Saint-Gobain(), Chairman of the Board of directors Saint-Gobain Corporation, director Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Veolia Environnement(), lead director Bpifrance, director Participation(1) in specialised committees of French or foreign companies BNP Paribas, Chairman of the Remuneration Committee and member of the Corporate Governance, Ethics, Nominations and CSR Committee Veolia Environnement, Chairman of the Nominations Committee, member of the Remuneration Committee and member of the Corporate Purpose Committee Bpifrance, Chairman of the Remuneration Committee, Chairman of the Climate Committee Others(1) Institut de l’entreprise, Chairman Essec, Chairman of the Supervisory Board La Fabrique de l’Industrie, Co-Chairman Association française des entreprises privées (Afep), member of the Board of directors Number of BNP Paribas shares held(1): 7,000 Business address(1): Tour Saint-Gobain 12 place de l’Iris 92400 Courbevoie France Education Graduate of École Supérieure des Sciences Économiques et Commerciales (“Essec“) Graduate of École Nationale d’Administration Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chairman of the Board of directors: Compagnie de Saint-Gobain Director: BNP Paribas, Veolia Environnement, Bpifrance, Saint-Gobain Corporation Chairman: Institut de l'entreprise, Board of overseers of Essec Co-Chairman: La Fabrique de l’Industrie Member: Board of directors of the Association française des entreprises privées (Afep) 2022: Chairman of the Board of directors: Compagnie de Saint-Gobain Director: BNP Paribas, Veolia Environnement, Saint-Gobain Corporation Chairman: Board of overseers of Essec Co-Chairman: La Fabrique de l’Industrie Member: Board of directors of the Association française des entreprises privées (Afep) 2021: Chairman of the Board of directors: Compagnie de Saint-Gobain Director: BNP Paribas, Veolia Environnement, Saint-Gobain Corporation Chairman: Board of overseers of Essec Co-Chairman: La Fabrique de l’Industrie Member: Board of directors of the Association française des entreprises privées (Afep) 2020: Chairman and Chief Executive Officer: Compagnie de Saint-Gobain Director: BNP Paribas, Saint-Gobain Corporation Chairman: Board of overseers of Essec Co-Chairman: La Fabrique de l’Industrie Member: Board of directors of the Association française des entreprises privées (Afep) At 14 May 2024. () Listed company. Monique COHEN Principal function: Director of companies Date of birth: 28 January 1956 Nationality: French Term start and end dates: 16 May 2023 – 2026 AGM Date first appointed to the Board of directors: 12 February 2014, ratified by the Annual General Meeting of 14 May 2014 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Hermès International(), Vice-Chairwoman of the Supervisory Board Safran(), lead director Participation(1) in specialised committees of French or foreign companies BNP Paribas, Chairwoman of the Internal Control, Risk Management and Compliance Committee and member of the Corporate Governance, Ethics, Nominations and CSR Committee Hermès International, Chairwoman of the Audit and Risks Committee Safran, Chairwoman of the Nominations and Remuneration Committee Comgest Global Investors, member of the Board of Partners Number of BNP Paribas shares held(2): 9,620 Business address: 16 boulevard des Italiens 75009 Paris France Education Graduate of the École Polytechnique Master’s degree in Mathematics Master’s degree in Business Law Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chairwoman of the Board of directors: Proxima Investissement SA, Fides Holdings Vice-Chairwoman: Supervisory Board of Hermès International Director: BNP Paribas, Safran Member: Supervisory Board of Fides Acquisitions 2022: Chairwoman of the Board of directors: Proxima Investissement SA, Fides Holdings Vice-Chairwoman: Supervisory Board of Hermès International Director: BNP Paribas, Safran Member: Supervisory Board of Fides Acquisitions 2021: Chairwoman of the Board of directors: Proxima Investissement SA, Fides Holdings Vice-Chairwoman: Supervisory Board of Hermès International Director: BNP Paribas, Safran Member: Supervisory Board of Fides Acquisitions 2020: Chairwoman of the Board of directors: Proxima Investissement SA, Fides Holdings Vice-Chairwoman: Supervisory Board of Hermès International Director: BNP Paribas, Safran Member: Supervisory Board of Fides Acquisitions At 31 December 2024. () Listed company. Hugues EPAILLARD Principal function: BNP Paribas Real Estate Business Manager Date of birth: 22 June 1966 Nationality: French Term start and end dates: elected by BNP Paribas executive employees for three years from 16 February 2024 – 15 February 2027 Date first appointed to the Board of directors: 16 February 2018 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Action Logement Services, director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Internal Control, Risk Management and Compliance Committee and of the Remuneration Committee Action Logement Services, Chairman of the Risk Committee Others(1) Institut français des administrateurs (IFA), Co-Chairman of the Club of directors representing employees Judge at the Marseille Employment Tribunal, Management section Commission paritaire de la Banque (AFB – Recourse Commission), member Business address: 59 rue Saint Ferréol 13001 Marseille France Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas, Action Logement Services 2022: Director: BNP Paribas, Action Logement Services 2021: Director: BNP Paribas 2020: Director: BNP Paribas At 31 December 2024. () Listed company. Marion GUILLOU Principal function: Independent Director Date of birth: 17 September 1954 Nationality: French Term start and end dates: 17 May 2022 – 2025 AGM Date first appointed to the Board of directors: 15 May 2013 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Veolia Environnement(), director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Corporate Governance, Ethics, Nominations and CSR Committee and of the Remuneration Committee Veolia Environnement, member of the Research, Innovation and Sustainable Development Committee and the Remuneration Committee Others(1) Fonds de dotation pour la préservation de la biodiversité des espèces cultivées et de leurs apparentées sauvages, Chairwoman Care – France (NGO), Chairwoman Académie d’Agriculture de France, Chairwoman Africa Europe Foundation, Co-Chairwoman of the food systems strategic group Bioversity International, member of the Board of directors International Centre for Tropical Agriculture (CIAT), member of the Board of directors Bioversity International – CIAT Alliance, member of the Board of directors and Chairwoman of the Strategic Committee (ASPAC) Accelerating Impacts of CGIAR Climate Research for Africa (AICCRA), member of the Independent Steering Committee (ISC) Institut français des relations internationales (IFRI), member of the Board of directors Haut Conseil pour le climat, member Number of BNP Paribas shares held(1): 1,000 Business address: 16 boulevard des Italiens 75009 Paris France Education Graduate of the École Polytechnique Graduate of the École du Génie rural, des Eaux et des Forêts Doctor of Food Sciences Graduate of the Institut français des administrateurs (IFA) Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas, Veolia Environnement Chairwoman: Fonds de dotation pour la préservation de la biodiversité des espèces cultivées et de leurs apparentées sauvages Vice-Chairwoman: Académie d'Agriculture de France, Care - France (NGO) Member: Board of directors of Bioversity International, Board of directors of the International Centre for Tropical Agriculture (CIAT), Board of directors of Bioversity – CIAT Alliance, Board of directors of IFRI, Haut Conseil pour le climat 2022: Director: BNP Paribas, Veolia Environnement Chairwoman: Fonds de dotation pour la préservation de la biodiversité des espèces cultivées et de leurs apparentées sauvages Vice-Chairwoman: Care – France (NGO) Member: Board of directors of Bioversity International, Board of directors of the International Centre for Tropical Agriculture (CIAT), Board of directors of Bioversity – CIAT Alliance, Board of directors of IFRI, Haut Conseil pour le climat 2021: Director: BNP Paribas, Veolia Environnement Chairwoman: Fonds de dotation pour la préservation de la biodiversité des espèces cultivées et de leurs apparentées sauvages Vice-Chairwoman: Care – France (NGO) Member: Board of directors of Bioversity International, Board of directors of the International Centre for Tropical Agriculture (CIAT), Board of directors of Bioversity – CIAT Alliance, Board of directors of IFRI, Haut Conseil pour le climat 2020: Director: BNP Paribas, Veolia Environnement Vice-Chairwoman: Care – France (NGO) Member: Board of directors of Bioversity International, Board of directors of the International Centre for Tropical Agriculture (CIAT), Board of directors of Bioversity – CIAT Alliance, Board of directors of IFRI At 31 December 2024. () Listed company. Vanessa LEPOULTIER Principal function: Asset Advisor BNP Paribas Date of birth: 20 January 1983 Nationality: French Term start and end dates: elected by BNP Paribas technician employees for three years from 16 February 2024 – 15 February 2027 Date first appointed to the Board of directors: 16 February 2024 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Action Logement Services, alternate director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Financial Statements Committee Number of BNP Paribas shares held(1): 85(2) Business address: 150 rue du Faubourg-Poissonnière 75010 Paris France Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) N/A At 31 December 2024. Including 85 BNP Paribas shares held under the Company Savings Plan. () Listed company. Lieve LOGGHE Principal function: Administrative and Financial Director of Boortmalt International Date of birth: 11 July 1968 Nationality: Belgian Term start and end dates: 17 May 2022 – 2025 AGM Date first appointed to the Board of directors: 17 May 2022 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad TINCC BV, director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Financial Statements Committee and member of the Remuneration Committee Others(1) ODISEE, member of the Board of directors and member of the Audit Committee Number of BNP Paribas shares held(1): 1,000 Business address: Zandvoort 2, Haven 350 2030 Antwerp Belgium Education Master’s degree in economics from the University of Brussels Master’s degree in accounting from the Vlerick School for Management Master’s degree in taxation from the EHSAL Management School Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas, TINCC BV Member: Board of directors of ODISEE 2022: Director: BNP Paribas, TINCC BV Member: Board of directors of ODISEE At 31 December 2024. () Listed company. Marie-Christine LOMBARD Principal function: Chairwoman of the Management Board of Geodis SA Date of birth: 6 December 1958 Nationality: French Term start and end dates: 14 May 2024 – 2027 AGM Date first appointed to the Board of directors: 10 January 2024 ratified by the Annual General Meeting of 14 May 2024 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held under the principal function Geodis SA, Chairwoman of the Management Board SNCF, member of the Executive Committee Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Vinci(), director Participation(1) in specialised committees of French or foreign companies BNP Paribas, Chairwoman of the Remuneration Committee Vinci, Chairwoman of the Remuneration Committee and member of the Nominations and Governance Committee Number of BNP Paribas shares held(1): 1,000 Business address: 26 quai Charles-Pasqua 92110 Levallois-Perret France Education Graduate of École Supérieure des Sciences Économiques et Commerciales (“Essec“) Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) N/A At 31 December 2024. () Listed company. Christian NOYER Principal function: Director of companies Date of birth: 6 October 1950 Nationality: French Term start and end dates: 14 May 2024 – 2027 AGM Date first appointed to the Board of directors: 18 May 2021 (Mr. Christian Noyer served as non-voting director of BNP Paribas from 1 May 2019 to 17 May 2021) Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Setl Ltd, director(2) Participation(1) in specialised committees of French or foreign companies BNP Paribas, Chairman of the Financial Statements Committee and member of the Internal Control, Risk Management and Compliance Committee(3) Others(1) Institut pour l’Education Financière du Public (IEFP), Chairman Institut Français des Relations Internationales (IFRI) Foundation, member of the Board of directors Group of Thirty (G30), member Mission dedicated to the relaunch of the Capital Markets Union, Chairman of the Committee of Experts Number of BNP Paribas shares held(1): 2,000 Business address: 16 boulevard des Italiens 75009 Paris France Education Graduate of École Nationale d’Administration Graduate of the Institut d’Études Politiques de Paris Masters in Law from the University of Paris Master’s Degree from the University of Rennes Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas, Power Corporation of Canada, Setl Ltd Chairman: Institut pour l’Education Financière du Public (IEFP) Member: Institut Français des Relations Internationales (IFRI) Foundation, Group of Thirty (G30) 2022: Director: BNP Paribas, Power Corporation of Canada, Setl Ltd Chairman: Institut pour l’Education Financière du Public (IEFP) Member: Institut Français des Relations Internationales (IFRI), Group of Thirty (G30) 2021: Director: BNP Paribas, Power Corporation of Canada, NSIA Banque Group, Setl Ltd Chairman: Institut pour l’Education Financière du Public (IEFP) Member: Institut Français des Relations Internationales (IFRI), Group of Thirty (G30) 2020: Director: Power Corporation of Canada, NSIA Banque Group, Lloyd’s of London, Setl Ltd At 31 December 2024. Until 24 January 2025. Member of the Remuneration Committee from 1 January 2025. () Listed company. Daniela SCHWARZER Principal function: Member of the Executive Board of the Bertelsmann Foundation Date of birth: 19 July 1973 Nationality: German Term start and end dates: 16 May 2023 – 2026 AGM Date first appointed to the Board of directors: 14 May 2014 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Covivio(), director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Corporate Governance, Ethics, Nominations and CSR Committee, member of the Internal Control, Risk Management and Compliance Committee and member of the Financial Statements Committee Others(1) Institut Jacques-Delors, member of the Board of directors Deutsche Gesellschaft für Auswärtige Politik, member of the Board of directors Institut Jean Monnet, member of the Board of directors Number of BNP Paribas shares held(1): 1,000 Business address: Werderscher Markt 6 10117 Berlin Germany Education Doctorate in Economics from the Free University of Berlin Master’s degree in Political Science and in Linguistics, University of Tübingen Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas, Covivio Member of the Management Board: Bertelsmann Foundation Member: Board of directors of Institut Jacques-Delors, Board of directors of Deutsche Gesellschaft für Auswärtige Politik, Board of directors of the Institut Jean Monnet 2022: Director: BNP Paribas, Covivio Executive Director: Open Society Foundation for Europe and Central Asia Member: Board of directors of the Institut Jacques-Delors, Board of directors of the United Europe Foundation, Board of directors of the Deutche Gesellschaft für Auswärtige Politik, Board of directors of the Institut Jean Monnet 2021: Director: BNP Paribas Executive Director: Open Society Foundation for Europe and Central Asia Member: Board of directors of the Institut Jacques-Delors, Board of directors of the United Europe Foundation, Advisory Committee of the Open Society Foundation, Board of directors of the Deutsche Gesellschaft für Auswärtige Politik, Board of directors of the Institut Jean Monnet 2020: Director: BNP Paribas Director: Deutsche Gesellschaft für Auswärtige Politik Member: Board of directors of the Institut Jacques-Delors, Board of directors of the United Europe Foundation, Advisory Committee of the Open Society Foundation, Federal Security Academy, Advisory Committee At 31 December 2024. () Listed company. Annemarie STRAATHOF Principal function: Director of companies Date of birth: 2 August 1962 Nationality: Dutch Term start and end dates: 14 May 2024 – 2027 AGM Date first appointed to the Board of directors: 14 May 2024 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Internal Control, Risk Management and Compliance Committee Number of BNP Paribas shares held(1): 1,000 Business address: 16 boulevard des Italiens 75009 Paris France Education Holder of a Bachelor of Arts in English Literature from the University of Amsterdam Holder of a Master in Business Administration from the Rotterdam School of Management Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) N/A At 31 December 2024. () Listed company. Michel TILMANT Principal function: Director of companies Date of birth: 21 July 1952 Nationality: Belgian Term start and end dates: 17 May 2022 – 2025 AGM Date first appointed to the Board of directors: 12 May 2010 (Mr. Michel Tilmant served as non-voting director of BNP Paribas from 4 November 2009 to 11 May 2010) Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Offices(1) held under the principal function Strafin sprl, manager Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Groupe Lhoist SA, director Foyer Finance SA, director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Internal Control, Risk Management and Compliance Committee Groupe Lhoist SA, Chairman of the Audit Committee Others(1) Royal Automobile Club of Belgium, member of the Board of directors Zoute Automobile Club, member of the Board of directors Number of BNP Paribas shares held(1): 1,000 Business address: Rue du Moulin 10 B-1310 La Hulpe Belgium Education Graduate of the University of Louvain Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chairman of the Board of directors: CapitalatWork Foyer Group SA Director: BNP Paribas, Foyer Finance SA, Groupe Lhoist SA, Manager: Strafin sprl Member: Board of directors of Royal Automobile Club of Belgium, Board of directors of Zoute Automobile Club 2022: Chairman of the Board of directors: CapitalatWork Foyer Group SA Director: BNP Paribas, Foyer SA, Foyer Finance SA, Groupe Lhoist SA Manager: Strafin sprl Member: Board of directors of Royal Automobile Club of Belgium, Board of directors of Zoute Automobile Club 2021: Chairman of the Board of directors: CapitalatWork Foyer Group SA Director: BNP Paribas, Foyer SA, Foyer Finance SA, Groupe Lhoist SA, Sofina SA Manager: Strafin sprl Member: Board of directors of Royal Automobile Club of Belgium, Board of directors of Zoute Automobile Club 2020: Chairman of the Board of directors: CapitalatWork Foyer Group SA Director: BNP Paribas, Foyer SA, Foyer Finance SA, Groupe Lhoist SA, Sofina SA Manager: Strafin sprl Member: Board of directors of Royal Automobile Club of Belgium, Board of directors of the Zoute Automobile Club, Board of directors of Université Catholique de Louvain At 31 December 2024. () Listed company. Sandrine VERRIER (until 15 February 2024) Principal function: BNP Paribas Production and Sales Support Assistant(1) Date of birth: 9 April 1979 Nationality: French Term start and end dates: elected by BNP Paribas technician employees for three years from 16 February 2021 – 15 February 2024 Date first appointed to the Board of directors: 16 February 2015 Offices(1) held in listed or unlisted companies of the BNP Paribas Group, in France or abroad BNP Paribas(), director Other offices(1) held in listed or unlisted companies outside the BNP Paribas Group, in France or abroad Action Logement Services, director Participation(1) in specialised committees of French or foreign companies BNP Paribas, member of the Financial Statements Committee Action Logement Services, member of the Tender Committee Others(1) Conseil Économique, Social et Environnemental Régional d’Île-de-France, advisor Business address: 150 rue du Faubourg-Poissonnière 75010 Paris France Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Director: BNP Paribas, Action Logement Services 2022: Director: BNP Paribas 2021: Director: BNP Paribas 2020: Director: BNP Paribas At 15 February 2024. () Listed company. Schedule of the terms of the directorships of company directors On the Board’s proposal, the Shareholders’ Annual General Meeting of 23 May 2000 decided to limit the term of office of new directors to three years. Directors 2025 (AGM called to approve the 2024 financial statements) 2026 (AGM called to approve the 2025 financial statements) 2027 (AGM called to approve the 2026 financial statements) J. Lemierre ✓ J.-L. Bonnafé ✓ J. Aschenbroich ✓ J. Brisac (i) ✓ M. Cohen ✓ H. Epaillard (ii) ✓ M. Guillou ✓ V. Lepoultier (III) ✓ L. Logghe ✓ M.-C. Lombard ✓ C. Noyer ✓ D. Schwarzer ✓ A. Straathof ✓ M. Tilmant ✓ Director representing employee shareholders. Director elected by executive employees – Start and end dates of previous term: 16 February 2024 – 15 February 2027. Director elected by technician employees – Start and end dates of previous term: 16 February 2024 – 15 February 2027. Other corporate officers Yann GÉRARDIN Principal function: Chief Operating Officer of BNP Paribas Date of birth: 11 November 1961 Nationality: French Number of BNP Paribas shares held(1): 166,413(2) Business address: 16 boulevard des Italiens 75009 Paris France Offices(1) held under the principal function BNP Paribas(), Chief Operating Officer, Head of Corporate & Institutional Banking Education Degree in Economic Science Institut d’Études Politiques de Paris HEC Paris Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chief Operating Officer: BNP Paribas 2022: Chief Operating Officer: BNP Paribas 2021: Chief Operating Officer: BNP Paribas At 31 December 2024. Including 32,813 BNP Paribas shares in the form of shares in the shareholding fund held under the Company Savings Plan. () Listed company. Thierry LABORDE Principal function: Chief Operating Officer of BNP Paribas Date of birth: 17 December 1960 Nationality: French Number of BNP Paribas shares held(1): 20,350(2) Business address: 16 boulevard des Italiens 75009 Paris France Offices(1) held under the principal function BNP Paribas(), Chief Operating Officer, Head of Commercial, Personal Banking & Services BNP Paribas Personal Finance, Chairman of the Board of directors BNL SpA, director Arval Service Lease, director BNP Paribas Leasing Solutions, director BNP Paribas Lease Group, director Others(1) European Payments Initiative, director Education Master’s degree in Economic Science Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) 2023: Chief Operating Officer: BNP Paribas Chairman of the Board of directors: BNP Paribas Personal Finance Director: BNL SpA, Arval Service Lease, BNP Paribas Leasing Solutions, BNP Paribas Lease Group, European Payments Initiative 2022: Chief Operating Officer: BNP Paribas Chairman of the Board of directors: BNP Paribas Personal Finance Director: BNL SpA, Arval Service Lease, BNP Paribas Leasing Solutions, BNP Paribas Lease Group, European Payments Initiative 2021: Chief Operating Officer: BNP Paribas Chairman of the Board of directors: BNP Paribas Personal Finance Director: BNL SpA, Arval Service Lease, BNP Paribas Leasing Solutions, BNP Paribas Lease Group, European Payments Initiative At 31 December 2024. Including 2,534 BNP Paribas shares in the form of shares in the shareholding fund held under the Company Savings Plan. () Listed company. Non-voting director Bertrand de MAZIÈRES Principal function: Independent Director Date of birth: 3 July 1957 Nationality: French Term start date: 1 October 2024 Others(1) International Finance Facility for Immunisation, member of the Board of directors and Chairman of the Audit Committee Business address: 7 bd Dr Charles-Marx L-2130 Luxembourg Luxembourg Education École Nationale d’Administration Graduate of HEC Paris Master’s Degree in law from the University of Paris I Panthéon Sorbonne Offices held at 31 December in previous financial years (the companies mentioned are the parent companies of the groups in which the functions were carried out) N/A At 31 December 2024. 2.1.2BNP Paribas Corporate governance The Corporate Governance Code that BNP Paribas refers to on a voluntary basis in this report is the Corporate Governance Code of Listed Companies, published by the French employers’ organisations, Association Française des Entreprises Privées (Afep) and the Mouvement des Entreprises de France (MEDEF). BNP Paribas declares that it complies with all of the recommendations of this Code, hereinafter referred to as the Corporate Governance Code or Afep-MEDEF Code, which can be viewed on the BNP Paribas website (http://invest.bnpparibas.com/en), the Afep website (http://www.afep.com/en) and the MEDEF website (http://www.MEDEF.com/en). The detailed rules on the participation of shareholders at the Shareholders’ Annual General Meeting are laid out in article 18, Title V “Shareholders’ Meetings”, of BNP Paribas’ Articles of association published in the Universal registration document in the section entitled Founding documents and Articles of association. Moreover, a summary of these rules and a report on the organisation and running of the Shareholders’ Combined General Meeting of 14 May 2024 are provided in the section entitled "BNP Paribas and its shareholders" of said document. In addition to the above, BNP Paribas is governed in accordance with French and European banking regulations, and the guidelines issued by the European Banking Authority (EBA) and is subject to permanent supervision of the European Central Bank (ECB) pursuant to the Single Supervisory Mechanism (SSM). 1.Principles of governance The Internal Rules adopted by the Board of directors define the duties of the Board and of its specialised committees. They are updated periodically to comply with current laws, regulations and market guidelines, and to keep pace with best practice in the area of Corporate governance. The Internal Rules were extensively revised in 2015 to reflect the provisions of Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms (hereinafter “CRD 5”) then amended on various occasions to take into account changes in regulations and supervisor expectations. Two procedures complete the Internal Rules: a "Policy on the suitability of Members of the management body and Key function holders", hereinafter referred to as the “Suitability policy”, and the “Implementation procedure for conflicts of interest in respect to loans and other transactions granted to the Members of the management body and their related parties”. The Group Code of conduct, approved by the Board of directors, was introduced in 2016. The latter as well as the addendum on anti-corruption were the subject of an update in December 2021, then in December 2024, approved by the Board of directors. Code of conduct (article 1.2 of the Internal Rules) The Code of conduct is the result of BNP Paribas’ Board of directors and Executive Management’s shared conviction that the success of the Bank depends on the behaviour of each employee. The Code of conduct “sets out the rules to uphold our values and perform the Bank’s missions. This Code, which shall be integrated by each business line and each employee, governs the actions of each employee, and guides the decisions at every level of the organisation. For this purpose, the Board ensures the Executive Management implements this Code in business lines, countries and regions.” Note that the Internal Rules emphasise the collegial nature of the Board of directors, which jointly represents all shareholders and must act in the Company’s best interest at all times. It details the Board responsibilities (article 1). The Board of directors is backed by four specialised committees (the Financial Statements Committee, the Internal Control, Risk Management and Compliance Committee, the Corporate Governance, Ethics, Nominations and CSR Committee, and the Remuneration Committee) as well as any ad hoc committees. The Internal Rules detail each committee’s missions, in line with the provisions of the CRD 5 and EBA Guidelines. They provide for joint meetings between the Financial Statements Committee and the Internal Control, Risk and Compliance Committee whenever required. Neither the members of the Executive Management nor the Chairman of the Board of directors have been members of a Specialised committee since 1997. As far as the Board is aware, no agreement has been entered into, directly, or through an intermediary, between on the one hand, one of BNP Paribas’ directors and corporate officers and, on the other, another company in which BNP Paribas owns, directly or indirectly, over half of the share capital (articles L.22-10-10 and L.225-37-4 paragraph two of the French Commercial Code), without prejudice to any agreements relating to current operations concluded under normal conditions. The Internal Rules and Suitability policy mentioned above have been adopted by the Board of directors and are included in this report. Each committee is composed of members with expertise in the relevant areas and complies with the provisions of the French Monetary and Financial Code and the recommendations of the Afep-MEDEF Code. Thus, at 31 December 2024: the Financial Statements Committee has four independent members as well as a director representing employees and a director representing employee shareholders. Most of the members of the Financial Statements Committee have qualifications and experience in corporate financial management, accounting and financial and non-financial information. Its Chairman, Mr. Christian Noyer, brings to the Committee skills strengthened by his professional career, in particular as a former Governor of the Banque de France; Mr. Bertrand de Mazières, former Chief Financial Officer of the European Investment Bank, attends the meetings of the Financial Statements Committee as a non-voting director; the Internal Control, Risk Management and Compliance Committee has four independent members out of a total of six members. Most of the members have particular expertise in financial matters and in the area of risk through their training or experience. Its Chairwoman, Ms. Monique Cohen, brings to the Committee her experience in financial regulation and supervision acquired as a former member of the Board of the French Financial Markets Authority (Autorité des Marchés Financiers - AMF). One of its members, Mr. Christian Noyer, has experience in the supervision of banking institutions as former Chairman of the French Prudential Supervisory and Resolution Authority (Autorité de contrôle prudentiel et de résolution - ACPR) and two other members, Ms. Annemarie Straathof and Mr. Michel Tilmant have international experience in banking management and financial risks. Moreover, two members of the Internal Control, Risk Management and Compliance Committee, Mr. Christian Noyer and Ms. Daniela Schwarzer are also members of the Financial Statements Committee in order to promote the work of the two Committees on the adequacy of the risks and provisions recognised by the Bank. Mr. Bertrand de Mazières, former Chief Financial Officer of the European Investment Bank, attends the meetings of the Internal Control, Risk Management and Compliance Committee as a non-voting director; the Corporate Governance, Ethics, Nominations and CSR Committee includes four independent directors who have expertise in Corporate governance and in putting together management teams in international companies and in CSR. It is chaired by Mr. Jacques Aschenbroich, Chairman of the Board of directors of a major telecommunications group with social and environmental commitments. One of its members, Ms. Marion Guillou, has also been a member of the Haut Conseil pour le Climat since its creation in 2018, and another member, Ms. Daniela Schwarzer, is a member of the Management Board of a leading independent foundation involved in the research and financing of projects, in particular in the fields of education, climate and digital transformation, themes related to Europe and democracy; the Remuneration Committee is composed of three independent members(3) and a director representing employees. Its Chairwoman, Ms. Marie-Christine Lombard, has experience of compensation systems and market practices in this area. A member of the Remuneration Committee, Mr. Hugues Epaillard is also a member of the Internal Control, Risk Management and Compliance Committee, which promotes the work of the Board of directors on the adequacy of the compensation principles with the risk policy of BNP Paribas. The Chairman of the Board of directors is not a member of any Specialised committee, but attends the meetings to ensure the consistency of the Board of directors' work and may add any subject he considers relevant to the agenda. European and French regulations applicable to BNP Paribas require members of the Board of directors and executive corporate officers to demonstrate integrity at all times, and to have the knowledge skills, experience and time needed to perform their duties. The ECB is notified of their appointment or re-appointment so that it can assess them on the basis of these criteria. The ECB did not object to the composition of the Board of directors or its Specialised committees. 1.a.Separation of the functions of Chairman and Chief Executive Officer At 11 June 2003, BNP Paribas dissociated the offices of Chairman of the Board and Chief Executive Officer. This decision is in line with the obligations imposed on credit institutions since 2014 by the French law transposing Directive 2013/36/EU on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms. The duties of the Chairman They are described in article 3.1 of the Internal Rules. The Chairman is responsible for ensuring that the quality of the relationship with shareholders is maintained, coordinating closely with any steps taken by the Executive Management in this area. In this connection, the Chairman chairs the Shareholder Liaison Committee, whose task is to assist the Bank in its communications with individual shareholders; several times a year, he invites the shareholders to meetings where the Company’s strategy is explained. He reports on his duties to the Board of directors. The Chairman maintains a close and trusting relationship with the Executive Management and provides the team with assistance and advice while respecting its executive responsibilities. The Chairman organises his activities so as to ensure his availability and put his experience to the Group’s service. His duties are contributory in nature and do not confer any executive power on him. They do not in any way restrict the powers of the Chief Executive Officer, who has sole operational responsibility for the Group. Coordinating closely with the Executive Management, the Chairman can represent the Group in its high-level relationships, particularly with major clients, public authorities and institutions, at national, European and international levels. He plays an active part in discussions concerning regulatory developments and public policies affecting BNP Paribas, and, more generally, the financial services sector. The Chairman contributes to promoting the values and image of BNP Paribas, both within the Group and externally. He contributes to enhancing the Group’s image through the responsibilities he exercises personally in national or international public bodies. At the request of the Chief Executive Officer, he can take part in any internal meeting on subjects relating to strategy, organisation, investment or disinvestment projects, risks and financial information. He expresses his opinions without prejudice to the remit of the Board of directors; he provides support to the teams responsible for covering major companies and international financial institutions; he also contributes to the development of BNP Paribas’ advisory activities, particularly by assisting in the completion of major corporate finance transactions. He ensures that principles of Corporate governance are defined and implemented. The Chairman is the custodian of the proper functioning of the Board of directors of BNP Paribas. As such: with the support of the Corporate Governance, Ethics, Nominations and CSR Committee, with the approval of the Board of directors and of the Shareholders’ Annual General Meeting, where appropriate, he endeavours to build an efficient and balanced Board, and to manage, both in the short- and long-term, the replacement and succession processes related to the Board of directors and nominations which will acknowledge the company’s strategic ambitions; on the basis of the dissociation of the functions of Chairman and Chief Executive Officer, his role is to ensure directors’ independence and freedom of speech; he ensures that the directors have the documentation and information necessary to carry out their duties in a timely manner and in a clear and appropriate form. The powers of the Chief Executive Officer The Chief Executive Officer has the broadest powers to act in all circumstances on behalf of BNP Paribas, and to represent the Bank in its relations with third parties. He is responsible for the organisation of internal control procedures and for all the information required by regulations in that regard. He exercises his powers within the limitations of the corporate object, and subject to any powers expressly attributed by law to the Shareholders’ Annual General Meeting and Board of directors. The Internal Rules of the Board of directors provide that the Chief Executive Officer shall request its prior approval for all investment or disinvestment decisions (other than portfolio transactions) in excess of EUR 250 million, and for any proposal to acquire or dispose of shareholdings in excess of that threshold (other than portfolio transactions) (article 1.1). The Chief Executive Officer must also ask the Board’s Financial Statements Committee for prior approval of any non-audit related assignment involving fees in an amount of over EUR 1 million (excluding taxes) (article 7.1.4). 1.bThe Board of directors: a collegial body with collective competence The composition of the Board of directors (on 31 December 2024) The Board of directors, after consulting the Governance, Ethics, Nominations and CSR Committee, co-opted Ms. Marie-Christine Lombard as a director as of 10 January 2024, to replace Ms. Rajna Gibson-Brandon(4). On the proposal of the Board of directors, the Shareholders’ Annual General Meeting of 14 May 2024 renewed the terms of office as directors for a period of three years of Ms. Juliette Brisac and Mr. Christian Noyer, ratified the co-option and renewed the term of office of Ms. Marie-Christine Lombard for a period of three years and appointed Ms. Annemarie Straathof as an independent director, replacing Mr. Pierre André de Chalendar, whose term of office expired at the end of the Annual General Meeting. At 31 December 2024: The Board of directors, after consulting the Governance, Ethics, Nominations and CSR Committee, also appointed Mr. Bertrand de Mazières as a non-voting director as of 1 October 2024, in accordance with Article 17, Title IV “Powers of the Board of directors, the Chairman, the Executive Management and the Non-voting directors” of the Articles of association of BNP Paribas published in the Universal registration document in the section Founding documents and Articles of association. Mr. Bertrand de Mazières participates in the meetings of the Board of directors without voting rights, as well as in the meetings of the Financial Statements Committee and the Internal Control, Risk Management and Compliance Committee. He will serve as a non-voting director until the Shareholders’ Annual General Meeting of May 2025, during which the Board of directors will propose his appointment as an independent director. Independence of directors (as of 31 December 2024) sustainability statements The table below shows the position of each director with regard to the independence criteria provided by the Afep-MEDEF Code to define an independent director: Criteria Jean LEMIERRE Jean-Laurent BONNAFÉ Jacques ASCHENBROICH Juliette BRISAC Monique COHEN Hugues EPAILLARD Marion GUILLOU Vanessa LEPOULTIER Marie-Christine LOMBARD Lieve LOGGHE Christian NOYER Daniela SCHWARZER Annemarie STRAATHOF Michel TILMANT 1 Not be, or have been, in the last five years (i) an employee or corporate officer of the Company or of a consolidated subsidiary of the Company; (ii) a director of a consolidated subsidiary 0 0 ✓ 0 ✓ 0 ✓ 0 ✓ ✓ ✓ ✓ ✓ ✓ 2 Whether or not corporate offices are held in another company ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 3 Whether or not significant business relationships exist ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 4 Whether or not there are close family ties to a corporate officer ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 5 Not have been a Statutory Auditor of the Company in the previous five years ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 6 Not have been a director of the Company for more than twelve years ✓ 0 ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 0 7 No variable remuneration for non-executive corporate officers ✓ N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 8 Major shareholder status ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓represents an independence criterion of the Afep-MEDEF Code that is met. O represents an independence criterion of the Afep-MEDEF Code that is not met. The following directors meet the independence criteria contained in the Corporate Governance Code and reviewed by the Board of directors(6): Monique Cohen, Marion Guillou, Lieve Logghe, Marie-Christine Lombard, Daniela Schwarzer, Annemarie Straathof, Jacques Aschenbroich, Christian Noyer. The Board of directors noted that none of the companies or legal structures in which these directors hold a directorship and/or performs an executive function has any significant business relationship with BNP Paribas (revenues generated by business relationships represented less than 0.5% of total revenues published by BNP Paribas for 2024). Moreover, as far as the Board of directors is aware, there are no potential conflicts of interests between BNP Paribas and any of the directors. The two directors elected by the employees, Mr. Hugues Epaillard and Ms. Vanessa Lepoultier, as well as the director representing employee shareholders, Ms. Juliette Brisac, are not taken into account for the calculation of independence according to the criteria of the Afep-MEDEF Code. Three directors appointed by the shareholders, Mr. Jean Lemierre, Chairman of the Board of directors, Mr. Jean-Laurent Bonnafé, Director and Chief Executive Officer, and Mr. Michel Tilmant, do not fulfil the independence criteria laid down by the Corporate Governance Code. Over half of the directors of BNP Paribas (73%) are therefore independent in terms of the criteria for independence contained in the Afep-MEDEF Code and the Board of directors’ assessment. Directors’ knowledge, skills and experience – Diversity and complementarity [sustainability statements] When the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) reviews the skills and experience of potential directors, it is careful to maintain the diversity and collective skills of the Board of directors in light of changes to the Bank’s strategy and in accordance with the Suitability policy. These candidates are identified and recommended on the basis of criteria that combine personal and collective skills, according to the procedures in the Internal Rules (article 4.2.1) and by the Suitability policy (section II Identification of selection of and succession plan for Members of the management body and Key function holders), which ensure their independence of mind. To make informed and judicious decisions in all circumstances, the Board of directors has established individual expertise in the banking and financial fields (including risk management, banking regulation and compliance, particularly as regards anti-money laundering and combating the financing of terrorism), as well as recognised individual experience acquired within the General Management of large international companies, to understand the Group’s business model and the associated risks. The Board of directors also ensures complementarity between directors, with members able to understand the major issues, challenges and emerging risks that the Bank is currently facing, and more specifically: Environmental and social issues Mr. Jean Lemierre (Chairman of the Board of directors): Mr. Jean Lemierre has been Chairman of the Board of directors of BNP Paribas since 1 December 2014. As Chairman of the European Bank for Reconstruction and Development (EBRD) from 2000 to 2008, whose operations are guided by the promotion of sustainable and environmentally-friendly development, he has worked to promote CSR, by ensuring that funded projects were socially and environmentally sustainable, while respecting the rights of the workers and communities concerned. Among his various mandates, Mr. Jean Lemierre is a member of the Board of directors of the Institut de la Finance Durable, which aims to coordinate, federate and accelerate the action of the Paris financial centre to achieve the ecological transition and transform the economy towards a low-carbon and inclusive model, aligned with the objectives of the Paris Agreement and the UN Sustainable Development Goals. Mr. Jean-Laurent Bonnafé (Director and Chief Executive Officer): Mr. Jean-Laurent Bonnafé has been a Director and Chief Executive Officer of BNP Paribas since 2011. Under his management, BNP Paribas has begun an ambitious policy of engagement in society, notably with a clear energy transition strategy and initiatives in favour of ethical responsibility. Aware of the need to integrate the Group’s CSR strategy into its business model, in 2022, Mr. Jean-Laurent Bonnafé presented a 2025 strategic plan entitled GTS (Growth, Technology, Sustainability), approved by the Board of directors, whose Sustainability pillar aims to accelerate the Group’s commitments in terms of sustainable finance around five priority areas aligned with client objectives and the United Nations Sustainable Development Goals (Sustainable savings, investments and financing; Transition towards carbon neutrality; Circular economy; Natural capital & biodiversity; Combatting exclusion). The Group has notably undertaken an alignment of portfolios to achieve carbon-neutrality objectives while laying out a CO2 emissions reduction trajectory corresponding to financing of the sectors with the highest levels of emissions and aligning business lines with shared objectives taking into account client transitions. Under the direction of Mr. Jean-Laurent Bonnafé, the integrated model and all of the Group’s business lines are fully mobilised and committed to supporting customers in their transition to a sustainable and low-carbon economy. Among his various mandates, Mr. Jean-Laurent Bonnafé is Vice-Chairman of Entreprises pour l’Environnement, an association that brings together some sixty major French and international companies from all sectors of the economy, committed to the ecological transition; he is also a member of the Board of directors of the La France s'engage Foundation, whose objective is to promote the commitment of civil society in innovative, solidarity-based initiatives that are useful to as many people as possible. Mr. Jacques Aschenbroich (Independent director): Chairman of the Board of directors of Orange, former Chairman and Chief Executive Officer of Valeo, Mr. Jacques Aschenbroich has proven expertise in sustainable development, both in terms of governance and environmental and social management. The groups that he chairs or has previously led have made strong commitments in terms of reducing and neutralising their greenhouse gas emissions. Among his various mandates, Mr Jacques Aschenbroich, until 2023, was Vice-Chairman of the Institut de la Finance Durable, which aims to coordinate, federate and accelerate the action of the Paris financial centre to achieve the ecological transition and transform the economy towards a low-carbon and inclusive model, aligned with the objectives of the Paris Agreement and the UN Sustainable Development Goals. Mr. Jacques Aschenbroich is Chairman of the Governance, Ethics, Nominations and CSR Committee and a member of the Financial Statements Committee, which monitors the process of preparing and publishing sustainability information. Ms. Juliette Brisac (Director representing employee shareholders): Ms. Juliette Brisac has been Chairwoman of the Supervisory Board of FCPE Actionnariat Monde since 2020 and a director of BNP Paribas since 18 May 2021. She is Head of Governance and Permanent Control of the Corporate Engagement Department of the BNP Paribas Group(7), whose mission is to define and implement the strategy of engagement in the main sectors related to the future of society, such as economic development, the environment and the energy and climate transition, social integration, regional development, diversity and human rights. Ms. Juliette Brisac is also a member of the internal association “Bénévolat de Compétences et Solidarité”. Ms. Juliette Brisac is a member of the Financial Statements Committee, which monitors the process of preparing and publishing sustainability information. Ms. Monique Cohen (Independent director): Until 2024, Ms Monique Cohen was Senior Advisor of Seven2, an independent investment company specialising in the financing of SMEs and mid-sized companies in France and continental Europe, including long-term value creation based on the sustainable development of its portfolio companies. Through her experience and responsibilities, Ms. Monique Cohen has proven skills in both the governance of the organisation, one of the pillars of CSR, and the integration of CSR into companies' business models. Ms. Monique Cohen is a member of the Governance, Ethics, Nominations and CSR Committee, which she previously chaired. Ms. Marion Guillou (Independent director): Ms. Marion Guillou is a food safety specialist. She was Chief Executive Officer of food at the Ministry of Agriculture, headed the National Institute of Agronomic Research and chaired the National Consortium for Agriculture, Food, Animal Health and the Environment as well as the French agronomic, veterinary and forestry institute - Agreenium. Among her various offices, Ms. Marion Guillou is Chairwoman of the French Academy of Agriculture, Chairwoman of the Endowment Fund for the preservation of the biodiversity of cultivated species and their wild relatives, Vice-Chairwoman of Care - France (NGO) and member of the Boards of directors of Bioversity International, the International Centre for Tropical Agriculture, the French Institute of International Relations and the Haut Conseil pour le Climat. Ms. Marion Guillou is a member of the Governance, Ethics, Nominations and CSR Committee. Ms. Daniela Schwarzer (Independent director): Ms. Daniela Schwarzer is a leading expert in European and international affairs. She is a member of the Management Board of the Bertelsmann Foundation, which participates in the research and financing of projects, in particular in the fields of education, climate and digital transformation and topics related to Europe and democracy. Ms. Daniela Schwarzer was previously Executive Director for Europe and Central Asia of the Open Society Foundation, a network of foundations whose objectives are to promote democratic governance, human rights and economic, social and legal reforms. Among her various offices, Ms. Daniela Schwarzer is a member of the Boards of directors of the Jacques-Delors Institute, the German Institute of International Relations (DGAP) and the Jean Monnet Institute. Ms. Daniela Schwarzer is a member of the Governance, Ethics, Nominations and CSR Committee and a member of the Financial Statements Committee, which monitors the process of preparing and publishing sustainability information. Digital transformation challenges and cybersecurity risks: Mr. Jacques Aschenbroich (Independent director): Mr. Jacques Aschenbroich is Chairman of the Board of directors of Orange, one of the main telecommunications operators in the world, which aims to become a leader in cybersecurity in Europe. Ms. Marie-Christine Lombard (Independent director): Ms. Marie-Christine Lombard is Chairwoman of the Management Board of Geodis, a global leader in logistics, which uses the most modern technologies to reduce costs and improve supply chain efficiency (automation, robotics, sensors, autonomous driving, advanced parcel tracking, data analysis and artificial intelligence). In terms of diversity, the Board of directors also complies with both quantitative and qualitative criteria that it has set for itself, relating to the number of directors, the balanced representation of women and men, international experience and the diversity of nationalities, age and seniority, which are added to the criteria of personal and collective qualities(8). Thus: the Board of directors has 14 members(9); the percentage of women is 55% excluding the three directors representing employees or employee shareholders(10) (and 57% including all directors); the Board of directors has members with international backgrounds and experience(11); four European nationalities are represented(12); four directors are of a nationality other than French(13); the balance in terms of age and seniority is respected. The table below reflects this diversity within the Board of directors and lists more specific contributions made by each of the directors. Director Age(1) Gender Nationality Areas of expertise End of term of office Jean LEMIERRE (Chairman) 74 M French Banking/Finance Risks/Regulation monitoring International business operations CSR Geopolitics AML/CFT 2026 Jean-Laurent BONNAFÉ (Director and Chief Executive Officer) 63 M French Banking/Finance Risks/Regulation monitoring International business operations CSR AML/CFT 2025 Jacques ASCHENBROICH 70 M French International business operations Transformation CSR Digital/Cybersecurity 2026 Juliette BRISAC (Director representing employee shareholders) 60 F French Banking/Finance Risks/Regulation monitoring CSR 2027 Monique COHEN 68 F French Banking/Finance Risks/Regulation monitoring CSR AML/CFT 2026 Vanessa LEPOULTIER (Director representing employees) 41 F French Organisation representing employees 2027 Marie-Christine LOMBARD 66 F French Banking/Finance International business operations Transformation Digital/Cybersecurity 2027 Lieve LOGGHE 56 F Belgian Banking/Finance International business operations Transformation 2025 Hugues EPAILLARD (Director representing employees) 58 M French Organisation representing employees 2027 Marion GUILLOU 70 F French Risks/Regulation monitoring CSR Technology 2025 Christian NOYER 74 M French Banking/Finance Economy/Monetary policies Risks/Regulation monitoring International business operations AML/CFT 2027 Daniela SCHWARZER 51 F German Economy/Monetary policies CSR Geopolitics AML/CFT 2026 Annemarie STRAATHOF 62 F Dutch Banking/Finance Risks/Regulation monitoring AML/CFT 2027 Michel TILMANT 72 M Belgian Banking/Finance Risks/Regulation monitoring International business operations AML/CFT 2025 At 31 December 2024. Furthermore, the additional information referred to in article L.22-10-10 of the French Commercial Code relating to employees is shown in sections 7.1.4 Significant actions in the area of gender equality and 7.2 The system concerning employees of this document(14). 1.cDirectors’ ethical conduct As far as the Board is aware, there are no potential conflicts of interests between BNP Paribas and any of the directors. The Suitability policy requires directors to report any situation likely to constitute a conflict of interest to the Chairman, the Board of directors may then ask the director in question to refrain from taking part in voting on the relevant issues. As far as the Board is aware, none of the Board members has been found guilty of fraud or been associated, as member of an administrative, management or supervisory body, or as Chief Executive Officer, with any insolvency, receivership or liquidation proceedings during at least the last five years. As far as the Board is aware, no member of the Board of directors is subject to any official public accusation and/or penalty. No director has been prohibited from acting in an official capacity during at least the last five years. There are no arrangements or agreements with key shareholders, customers, suppliers or other persons that involve the selection of any member of the Board of directors. The directors must carry out their duties in a responsible manner, particularly as regards the regulations relating to insider dealing. They are notably required to comply with legal requirements relating to being in possession of insider information. Under the terms of the Internal Rules, they must also refrain from carrying out any transactions in BNP Paribas shares that could be regarded as speculative (article 4.3.1 of the Internal Rules). They are informed of the periods during which they may, except in special circumstances, carry out any transactions in BNP Paribas shares (article 4.3.1 of the Internal Rules). 1.dDirectors’ training and information Pursuant to the Internal Rules, every director can ask the Chairman or the Chief Executive Officer to provide them with all the documents and information required to enable them to carry out their duties, to participate effectively in the meetings of the Board of directors and to make informed decisions, provided that such documents are necessary to the decisions to be taken and connected with the Board’s powers (article 3.4.1 of the Internal Rules). The directors have unrestricted and continuous access to the minutes of meetings of the Board’s specialised committees and the minutes of Board meetings using a special digital tool. This system also provides directors with a range of useful information in a secure and timely manner to facilitate them in their work. It is possible to use this system to provide e-learning training modules to directors. Committee meetings provide an opportunity to update the directors on the topical issues on the agenda. In addition, the Board is kept informed of changes in the banking regulations and reference texts concerning governance and can be trained on such occasions. The Company also dedicates the human and financial resources required for the training of the directors. Thus, each year, three half-days of training (each with two sessions) are organised for directors (generally in March, June and September). On this occasion, presentations may be organised by internal experts on various topics related to banking and finance, accounting and prudential matters, regulations applicable to the Bank, any area related to the Group’s strategy, as well as on current topics related in particular to CSR (for example, Taxonomy; Green Asset Ratio; Corporate Sustainability Reporting Directive; Sustainable Finance Disclosure Regulation (SFDR)) and digital transformation (e.g. digital assets and blockchain; fintech partnerships and investments; artificial intelligence). [sustainability statements] In 2024, Directors received training on (i) the Corporate Sustainability Reporting Directive (CSRD), (ii) the Group’s activities in the Nordic countries, (iii) the activities of BNP Paribas Cardif, (iv) IFRS 17 and IFRS 9 accounting standards on insurance and the prudential treatment of insurance activities, (v) artificial intelligence and (vi) regulatory issues related to elections in the United States. It was also the opportunity for directors to meet with the relevant managers in the Group. In respect of 2024, one of the directors representing the employees attended two external training sessions dedicated respectively to employee directors and directors in the banking sector, and started a certification training course as a company director. The directors representing employees and the director representing employee shareholders also benefit, like any other director, from trainings provided by BNP Paribas as described above, in addition to their external training. 1.eDirectors’ attendance at Board and Committee meetings in 2024 Director Board of directors Specialised committees Individual attendance rates J. LEMIERRE 100% 100% J.-L. BONNAFÉ 100% 100% J. ASCHENBROICH 100% 100% 100% J. BRISAC 100% 100% 100% P. A. de CHALENDAR(1) 100% 100% 100% M. COHEN 100% 100% 100% H. EPAILLARD 100% 100% 100% M. GUILLOU 100% 100% 100% V. LEPOULTIER(2) 100% 100% 100% M.-C. LOMBARD 83% 100% 88% L. LOGGHE 100% 100% 100% C. NOYER 100% 81% 89% D. SCHWARZER 100% 100% 100% A. STRAATHOF(3) 100% 100% 100% M. TILMANT 100% 100% 100% S. VERRIER(4) 100% 100% 100% Average 99% 99% 99% The term of office of Mr. Pierre André de Chalendar expired at the end of the Shareholders’ Annual General Meeting of 14 May 2024. The term of office of Ms. Vanessa Lepoultier began on 16 February 2024. The term of office of Ms. Annemarie Straathof began at the end of the Shareholders’ Annual General Meeting of 14 May 2024. The term of office of Ms. Sandrine Verrier ended on 15 February 2024. 2.The work of the Board and Committees in 2024 2.aThe work of the Board in 2024 The Board of directors, which determines BNP Paribas’ strategy and overall business objectives based on proposals submitted by the Executive Management and with the aim of promoting long-term value creation in the light of social and environmental issues: monitored the Group’s results over the first nine months of 2024, confirming the 2024 trajectory in terms of revenue growth, positive jaws effect, cost of risk and net income growth; proposed to the Shareholders’ Annual General Meeting of 14 May 2024, the payment of a cash dividend of EUR 4.60 in respect of 2023, i.e. a distribution of 50% of the distributable income for 2023 increased to 60% with the launch of a share buyback programme; approved the launch of a share buyback programme of EUR 1.055 billion corresponding to 10% of the distributable income for 2023 (see previous point), the execution of which it monitored during 2024; authorised the reduction of the share capital by cancelling the shares repurchased under the share buyback programme (see previous point) and delegated the powers necessary to carry out the material capital decrease; reviewed the issuance amounts of debt securities in the form of senior debt and subordinated and hybrid debt; sub-delegated the power to decide on the issue of deeply subordinated bonds convertible into shares with cancellation of preferential subscription rights (AT1 bonds); heard the Chief Executive Officer’s report on the issue of super subordinated bonds convertible into shares with cancellation of preferential subscription rights (AT1 bonds) and approved the terms of the additional report made available to shareholders and which will be brought to the attention of the shareholders at the Annual General Meeting of 14 May 2024; renewed the delegations of authority for the issuance of debt securities, particularly for bonds and similar securities; approved the management report for 2023; received the Executive Management’s comments on the net margin generated on new lending in 2023 and in the first half of 2024; reviewed the provisional results of the Supervisory Review and Evaluation Process led by the ECB in respect of 2024; ensured that there was no impact in terms of liquidity for the Bank and the political and economic context in Europe and in France; examined the Group’s positioning compared to its European peers for the 2023 financial year; monitored changes in the shareholding structure and share price; was informed of the reaction of analysts and investors to the 2023 annual results and the results of the first half-year 2024; was informed of the content of exchanges between the Chairman of the Board of directors and investors about the Bank’s governance; reviewed and approved the answers to written questions submitted by shareholders at the Annual General Meeting of 14 May 2024; examined the Group’s budget for the 2025 financial year as well as the economic assumptions used to prepare it; approved the acquisition by BNP Paribas Cardif of 9% of the share capital of ageas; approved the acquisition by BNP Paribas Cardif of 100% of the share capital of Neuflize Vie; approved the acquisition by BNP Paribas Cardif of 100% of the share capital of AXA Investment Managers; was informed of BNP Paribas’ activities in the Americas region; monitored the implementation of the Group’s IT and information systems strategy; monitored the continuation of the Group’s exit strategy from the Russian Federation approved by the Executive Management as well as the Group’s residual exposure; took note of the highlights of 2023 and the outlook for 2024 in terms of the Group CSR policy, in terms of economic, social, civic and environmental responsibility; examined the Group’s Climate Report for 2023 presenting the Group’s progress and achievements in terms of the energy transition, the new target of achieving 90% low carbon in the Group's energy production financing by 2030, the progress made for the six sectors for which alignment targets have been set in 2022 and 2023 (oil and gas, electricity, automotive, steel, aluminium and cement) as well as the publication of new alignment targets for three sectors (air transport, maritime transport and commercial real estate); was informed of the opinion of the Central Social and Economic Committee on the Group’s economic and financial situation as well as the elements of a response to the observations made on the intermediary report of the GTS 2025 Plan; was informed of the progress of the HR strategy as well as the results of targeted surveys conducted among employees measuring their satisfaction and quality of life at work; was informed of the status of gender equality within BNP Paribas in 2024; reviewed the related-party agreements entered into and authorised in previous years but still in force in 2023; renewed the authorisation relating to the delegation of responsibility for internal control by regulated subsidiaries; approved the changes to its governance following the observations made by the ECB. As in previous years, Single Supervisory Mechanism (SSM) representatives from the ECB and representatives of the French Autorité de contrôle prudentiel et de résolution (ACPR) attended the Board of directors’ meeting of 27 February 2024. They outlined their priorities for banking supervision for 2024, which were followed by an exchange of views with the members of the Board. The Board of directors met on 18 December 2024 for an annual strategic seminar devoted, among other things, to the execution of the GTS 2025 Plan and the issues faced by the business lines within Commercial, Personal Banking & Services, Corporate & Institutional Banking and Investment & Protection Services. Executive sessions In addition to the assessments of the performance and compensation of the executive corporate officers, which were discussed outside their presence, five meetings of directors were held in the form of “executive sessions” on the Group’s challenges and operations, of which three as a follow-up to the training sessions provided during the year. During these three sessions, the directors had the opportunity to interact with the operational managers concerned. Finally, the Chairman and the non-executive directors had discussions both on strategy and on their perception of interactions between the Board of directors and the Group’s Executive Management. 2.bWork performed by the Financial Statements Committee and work approved by the Board of directors in 2024 Examination of the financial statements and financial information The Financial Statements Committee: conducted quarterly reviews of the financial statements based on the documents and information provided by the Executive Management and the work carried out by the Statutory Auditors; each quarter, analysed summary reports of the consolidated results and annualised return on equity, as well as results and profitability by business area; reviewed the Group’s consolidated balance sheet and changes thereto on a quarterly basis. On this occasion, it was informed of changes in off-balance sheet commitments; each quarter, reviewed the report on internal audit control points flagged by Group entities in the context of the certification of their financial statements. It analysed the change in the risk level observed for each of the major accounting controls; reviewed changes in equity and the capital adequacy ratio with regard to the new prudential solvency regulations and new requirements imposed by the regulator; reviewed trends in revenues and the cost/income ratio by business for each quarter; kept track of the changes in prudential requirements and reviewed changes in risk-weighted assets; reviewed the provisions for litigation; reviewed goodwill; analysed the composition and changes in the Group’s balance sheet; acknowledged, each quarter, the adjustments made to the Credit Valuation Adjustment (CVA), the Debt Valuation Adjustment (DVA) and the Funding Valuation Adjustment (FVA); monitored, on a semi-annual basis, the implementation of the recommendations of the General Inspection on accounting and financial risk, the recommendation of the Statutory Auditors on internal control and the recommendation of the ECB; reviewed the resolutions relating to the approval of the parent company and consolidated financial statements for 2023, the allocation of income for the year ended 31 December 2023 and the payment of the dividend; reviewed the draft press release on the Group’s results each quarter; took note of the transfer to the U.S. SEC and U.S. CFTC of the simplified quarterly reporting based on 31 December 2023; was informed of the proposed updates to the Independence Policy applicable to the Group’s Statutory Auditors; was informed of the work carried out by the Group regarding its compliance with the Corporate Sustainability Reporting Directive (CSRD). Each quarter, when reviewing the results, the Financial Statements Committee: heard the Group’s Chief Financial Officer, his deputy and the person responsible for accounting and financial reporting; interviewed the Group’s Chief Financial Officer and asked the questions it considered necessary, without the presence of the Executive Management or the Statutory Auditors; heard the Statutory Auditors’ comments and conclusions on the quarterly and annual financial statements; asked the Statutory Auditors the questions it considered necessary, without the presence of the Group’s Executive Management or the Group Chief Financial Officer; reviewed the accounting certification mechanisms as part of the internal control procedures. It reviewed the section of the management report concerning the internal control procedures relating to the preparation and processing of accounting and financial information in respect of 2023; it recommended its approval by the Board of directors. The Board: was informed of all the work of the Financial Statements Committee and the findings of the Statutory Auditors at the end of each reporting period; reviewed the results of the fourth quarter of 2023, full-year 2023 and the first three quarters of 2024; approved the annual company and consolidated financial statements for 2023, the allocation of income for the year ended 31 December 2023 and the payment of the dividend; approved draft press releases at each meeting held to discuss the results; acknowledged the report of the discussions held by the Financial Statements Committee with the Statutory Auditors and the Chief Financial Officer, without the presence of the Executive Management; approved the section of the management report on the preparation and processing of accounting and financial information in respect of 2023. Relations with the Statutory Auditors The Financial Statements Committee received their annual certificate of independence from the Statutory Auditors. It took note of the draft engagement letter of both the Statutory Auditors and the sustainability auditors for the year ended 31 December 2024. In the absence of the Statutory Auditors, the Financial Statements Committee: reviewed the document relating to the identification and publication of the Statutory Auditors’ fees for 2023; gave its prior authorisation for a recurring assignment by one of the Statutory Auditors, for which the amount of fees (excluding tax) exceeded EUR 1 million; took note of the distribution of mandates between the Statutory Auditors for the 2024-2029 period; examined the appointment of the sustainability auditors in accordance with the provisions of the Corporate Sustainability Reporting Directive (CSRD) and took note of the nature and schedule of their work. The Board: approved the appointment of the sustainability auditors. 2.cWork performed by the Financial Statements Committee and the Internal Control, Risk Management and Compliance Committee in their joint meetings, and work approved by the Board of directors in 2024 The committees: reviewed the findings of the Internal Capital Adequacy Assessment Process testifying to the Group’s ability to continue its activities while maintaining an adequate level of capitalisation and effectively managing its risks and took note of the draft Capital Adequacy Statement; took note of the Statutory Auditors’ audit plan for 2024; discussed whether the prices of the products and services proposed to customers are compatible with the risk strategy (in accordance with the provisions of CRD 5); reviewed the main disputes and ongoing proceedings giving rise or likely to give rise to provisions; reviewed the ACPR letter notifying the Group’s Global Systemically Important Bank score; were informed of the way in which the Bank was managing its portfolio of internal models in the context of the Basel 3 review; examined the proposals for amendments to the General Inspection Charter. The Board: was informed of all the work performed jointly by the Financial Statements Committee and the Internal Control, Risk Management and Compliance Committee; approved the process conducted by the Executive Management to assess the internal capital adequacy and its conclusions; approved the amendments to the General Inspection Charter. 2.dWork performed by the Internal Control, Risk Management and Compliance Committee and work approved by the Board of directors in 2024 Since 19 May 2020, the Internal Control, Risk Management and Compliance Committee and the Financial Statements Committee have at least one joint member to support the work of the committees on the appropriateness of the risks and provisions recognised by the Bank. Risks The Internal Control, Risk Management and Compliance Committee: took note of the Annual Internal control report for 2023 in its permanent control and operational risk component, including the assessment by the RISK Function of the management of operational risk in terms of information technology and communication, outsourcing and fraud; reviewed the Risk Appetite Statement (RAS), the overall risk limits and those applicable by division as well as the proposals for the introduction of new risk indicators or new thresholds for limits, notably in terms of counterparty risk and Environmental, Social and Governance (ESG) risks; reviewed the renewal of risk limits for specific sectors and activities; monitored the action plans selected following the breach of certain risk indicator limits; took note of the report on the Bank’s Internal Liquidity Adequacy Assessment Process and of the draft Liquidity Adequacy Statement; reviewed the report prepared for 2023 on the assessment and monitoring of risks, in accordance with the provisions of the order of 3 November 2014 on the internal control of companies in the banking, payment services and investment services sectors subject to the control of the ACPR; monitored the deployment plan of the cybersecurity programme within the Group, its action plan, the priority topics and the related budget on a semi-annual basis. It was informed of the progress of the DORA (Digital Operational Resilience Act) directive programme within the Group. It noted that no major incident had been detrimental to the Group during the second half-year 2023 and the first half-year 2024; reviewed the dashboard presented quarterly by the Head of RISK and reviewed the evolution of market risks, credit and counterparty risks, operational risk, liquidity risk, interest rate risk and equity risk in the banking book, insurance risk, model risk as well as ESG indicators; was informed of the governance and liquidity risk management procedures; was informed of the management of interest rate risk in the banking book in a context of a prolonged inversion of the yield curve with short-term rates higher than long-term rates; reviewed the adequacy of the Group’s compensation policy and practices to its risk profile; ensured the independence of the Head of RISK, the Head of Group Compliance and the Head of General Inspection and reported to the Remuneration Committee on its findings. The Board: was informed of all the committee’s work on the Group’s risks and liquidity; approved the forwarding to the ACPR of the operational risk and permanent control components of the internal control report; approved changes to the Group’s RAS; approved the liquidity risk tolerance level and the policies, procedures and internal systems relating to liquidity risk; approved the forwarding of the risk measurement and monitoring report to the ACPR; approved the renewal of the sector budgets. Ad hoc work The Internal Control, Risk Management and Compliance Committee: was informed, at each of its meetings, of risks related to current events, such as changes in the cost of risk, the management of BNP Paribas’ sovereign bond portfolio and the development of the programme to strengthen control and compliance systems for its market activities; was informed of the ECB’s draft report following its cross-functional review on Leveraged Transactions. The Internal Control, Risk Management and Compliance Committee and the Corporate Governance, Ethics, Nominations and CSR Committee, at a joint meeting, also examined the progress made in 2024 in terms of the operational integration of ESG risk factors as part of the Bank’s risk management framework. The Board was informed of all the ad hoc work of the Committee. Compliance, internal control, litigation and periodic control The Internal Control, Risk Management and Compliance Committee: reviewed the draft Annual Report on internal control for 2023 presenting the internal control system and the highlights of 2023 for each of the control functions (Compliance, LEGAL, RISK and General Inspection) in terms of organisation and activity; reviewed the draft Annual internal control report for 2023 in its compliance component, including the assessment by the Compliance Function of the risks of non-compliance in terms of financial security, market integrity, protection of customers’ interests and corruption; reviewed the draft Annual periodic control report for 2023, including notably the activity report of the General Inspection in respect of the 2023 audit plan; reviewed the Annual Reports on the organisation of internal control systems in terms of anti-money laundering, combating financing of terrorism and BNP Paribas (SA)’s freezing of assets on a standalone and consolidated basis; reviewed the classification of the Group and BNP Paribas (SA)’s risks in terms of anti-money laundering and combating the financing of terrorism in accordance with the order relating to the system and internal control on anti-money laundering and combatting the financing of terrorism, the freezing of assets, ban on the provision or use of funds or economic resources; reviewed the MiFID II systems put in place within BNP Paribas (SA) and the measures in progress to complete the implementation and remedy the malfunctions identified, the results of the controls carried out in 2023 by the Business lines and Compliance on the compliance of systems in place to meet MiFID II requirements as well as the system in place in terms of product governance and employee knowledge and skills; reviewed the Annual Report on conflicts of interest relating to the system put in place under MiFID II to prevent and manage conflicts of interest that may arise in the provision of an investment or related service, regarding transactional and non-transactional conflicts of interest; reviewed the results of the annual assessment of corruption risks for 2023; took note of the analysis of the Bank’s 2023 recovery plan carried out by the ECB and examined the 2024 recovery plan as well as the various recovery options; reviewed the European regulatory developments in terms of resolution and was informed of the Group’s Minimum Requirement for own funds and Eligible Liabilities (MREL) to be reached by May 2024 set by the Single Resolution Board; reviewed the implementation of the Group’s outsourcing policy; regularly reviewed the main disputes and ongoing proceedings and the progress of the main cases; reviewed the completeness and evolution of the results of the periodic control in 2023; reviewed the General Inspection’s half-year report; reviewed the Compliance Function’s half-year report; regularly monitored the deployment of the 2024 audit plan and the results of the General Inspection missions; took note of the follow-up letter to the ACPR control report on the system for identifying politically exposed persons and the quality of BNP Paribas’ PEP customer risk; regularly took note of the fines imposed on the Bank by supervisors. The Board: was informed of all the Committee’s work on internal control, risks and compliance; approved the forwarding to the ACPR of the annual internal control report in its compliance and permanent control component; approved the forwarding to the ACPR and the ECB of the annual periodic control report; approved the forwarding to the ACPR of reports on the organisation of internal control systems on anti-money laundering and combating the financing of terrorism, as well as on asset freezing; took note of the state of play and the measures underway concerning the implementation of the MiFID II regulation; approved the 2024 recovery plan. The committee interviewed the Heads of the RISK, Compliance, LEGAL and General Inspection Functions, without the presence of the Executive Management. The Board heard the reports of the interviews. 2.eWork performed by the Corporate Governance, Ethics, Nominations and CSR Committee and work approved by the Board of directors in 2024 Changes in the membership of the Board and its Specialised committees The Corporate Governance, Ethics, Nominations and CSR Committee: reviewed the expiry dates of the directors’ terms of office and proposed that the Board of directors submit to the vote of the Shareholders’ Annual General Meeting the renewal of the terms of office expiring in 2024, namely those of Mr. Christian Noyer and Ms. Marie-Christine Lombard. It was not proposed to renew the term of office of Mr. Pierre-André de Chalendar, due to his 12-year term of office at BNP Paribas, as he no longer meets the criteria of the Corporate Governance Code defining an independent director; concerning the director representing employee shareholders, examined the four candidates for the term of office of director representing employee shareholders and recommended to the Board of directors the reappointment of Ms. Juliette Brisac given her experience, her background, her technical skills in financial and managerial terms as well as her legitimacy as Chairwoman of the Supervisory Board of FCPE Actionnariat Monde, which is predominant in employee shareholding; proposed that the Board submit to the vote of the Shareholders’ Annual General Meeting the appointment of Ms. Annemarie Straathof as a director after ensuring that she met the criteria defined in the Suitability policy; proposed the appointment of Mr. Bertrand de Mazières as a non-voting director as of 1 October 2024; reviewed the situation of each of the directors and decided to propose that the Board of directors appoint: Ms. Vanessa Lepoultier, as a member of the Financial Statements Committee from 16 February 2024, Ms. Marie-Christine Lombard, as Chairwoman of the Remuneration Committee as of the Shareholders’ Annual General Meeting of 14 May 2024, Ms. Lieve Logghe, in addition to her participation in the Financial Statements Committee, as a member of the Remuneration Committee as of the Shareholders’ Annual General Meeting of 14 May 2024, Ms. Annemarie Straathof, as a member of the Internal Control, Risk Management and Compliance Committee as of the Shareholders’ Annual General Meeting of 14 May 2024, Mr. Christian Noyer, in addition to chairing the Financial Statements Committee and participating in the Internal Control, Risk Management and Compliance Committee, as a member of the Remuneration Committee as of 1 January 2025; reviewed the situation of directors asked to take up corporate offices outside the Group, as provided for in the Suitability policy; continued its review of changes to the composition of the Board of directors and appointed an external firm to identify candidate independent directors on an ongoing basis. The Board: proposed that the Shareholders’ Annual General Meeting renew the terms of office of the directors in question; proposed the appointment of Annemarie Straathof as a director to the Shareholders’ Annual General Meeting; recommended that the Shareholders' Annual General Meeting vote favourably to reappoint Ms. Juliette Brisac as Director representing the employee shareholders; appointed as from 16 February 2024, Ms. Vanessa Lepoultier as a member of the Financial Statements Committee, as from the Shareholders’ Annual General Meeting of 14 May 2024, Ms. Marie-Christine Lombard as Chairwoman of the Remuneration Committee, Ms. Lieve Logghe, as a member of the Remuneration Committee and Ms. Annemarie Straathof as a member of the Internal Control, Risk Management and Compliance Committee and as from 1 January 2025, Mr. Christian Noyer, as a member of the Remuneration Committee; validated the appointment of Mr. Bertrand de Mazières as a non-voting director as of 1 October 2024. Governance The Corporate Governance, Ethics, Nominations and CSR Committee: reviewed the updated pool of potential independent directors identified, on an ongoing basis, by an external firm; carried out the annual review of the potential successor(s) for the Chairman of the Board of directors and the Chief Executive Officer who could be proposed to the Board of directors in the event of temporary or permanent disability or death of the position holder; examined the proposals for amendments to the Board of directors’ Internal Rules and the Suitability policy aimed, in particular, at implementing the ECB’s observations and at reflecting the new missions of the Financial Statements Committee concerning sustainability and the monitoring of periodic control; reviewed the report on the current agreements entered into between BNP Paribas (SA) or one of its subsidiaries and the directors, the Chief Executive Officer and the Chief Operating Officers, in accordance with the procedure for current agreements entered into under normal conditions; ascertained the assessment of Key function holders by the Human Resources Department; was informed of the implementation and outcome of the controls related to the Corporate governance policy applicable to all subsidiaries within BNP Paribas’ prudential scope of consolidation; reviewed the draft Corporate governance report for 2023. The Board: approved the amendments to the Internal Rules and the Board of directors’ Suitability policy; concluded that all the agreements between BNP Paribas (SA) or one of its subsidiaries and the directors, the Chief Executive Officer and the Chief Operating Officers that were examined were ordinary agreements entered into under normal conditions; approved the Corporate governance report for 2023. Assessment of the Board of directors The Committee: monitored the implementation of the action plan resulting from the assessment carried out in 2023 which resulted in more sessions on CSR topics open to all directors; acknowledged the results of the assessment of the Board of directors conducted by an external firm for 2023. The evaluation highlighted the strong involvement of the Chairman of the Board of directors, the high quality, commitment and diversity of the directors’ experience, as well as their complementarity. It noted the trust, transparency and mutual respect that reign between the directors, as well as between the Chairman of the Board of directors and the Director and Chief Executive Officer; proposed to the Board of directors an action plan including in particular the search for new directors with strong experience in corporate management, technological issues and/or international affairs as well as the presence of the heads of the RISK and Compliance functions and the Inspection Générale during the restitution of their annual hearing. The Board approved the action plan following the 2023 assessment. Monitoring of the Conduct framework The Corporate Governance, Ethics, Nominations and CSR Committee, in accordance with its powers, devoted one meeting to reviewing the main actions taken during the past year to strengthen the Conduct framework within the Group. In particular, it reviewed the results of the various Conduct indicators, including those related to respect for people and customer perception and examined the implementation of standards, decision-making processes and incident management frameworks within the Group. It examined the proposals for updating the Code of conduct and its annex on corruption, in particular the update of the illustrative cases described in the code, and proposed its approval to the Board of directors. The Board: approved the update of the Code of conduct and its annex on corruption; continued to monitor the deployment of the Code of conduct within the Group’s subsidiaries and regions. Directors’ compensation Prior to the Board of director’s approval of the allocation of compensation to each director as well as the non-voting director for 2024, the Corporate Governance, Ethics, Nominations and CSR Committee reviewed the actual attendance of each director and the non-voting director at the Board and Committee meetings. Social and Environmental Responsibility The Committee: reviewed the Group’s social and environmental responsibility report and took note of the Group’s main progress and achievements in 2023 in the area of economic, social, civic and environmental responsibility; was notably informed of the results for 2023 of each of the 10 indicators of the 2022-2025 CSR dashboard covering the Bank’s four CSR pillars (economic, social, civic and environmental responsibility) as well as the publication of the green asset ratio; reviewed the statement made on behalf of the Group’s entities under the UK and Australian Modern Slavery Acts (“Modern Slavery Act 2015” in the United Kingdom and “Modern Slavery Act 2018” in Australia) to ensure that their activities are free from human trafficking and slavery. This statement is included in the Group’s social and environmental responsibility report; was informed of the Group’s policy on diversity, equality and inclusion, particularly in terms of gender balance in management bodies and strategic priorities; proposed that the Board approve the appointment of the Financial Statements Committee as a Specialised committee in charge of new missions concerning sustainability information. The Governance, Ethics, Nominations and CSR Committee and the Financial Statements Committee, meeting jointly, examined the publication of the estimates of greenhouse gas emissions financed by the counterparties, the preliminary results of the analysis of double materiality under the CSRD directive, as well as the draft plan and content of the new sustainability report to be published for the first time in 2025 with respect to 2024. The Board: approved the Group’s social and environmental responsibility report, including the sections on the vigilance plan and the extra-financial performance statement, with the amendments proposed by the committee; approved the statement made on behalf of the Group’s entities on the United Kingdom’s “Modern Slavery Act 2015” and Australia’s “Modern Slavery Act 2018”; appointed the Financial Statements Committee as the Specialised committee in charge of new missions concerning sustainability information. 2.fWork performed by the Remuneration Committee and work approved by the Board of directors in 2024 One member of the Remuneration Committee is also a member of the Internal Control, Risk Management and Compliance Committee, promoting thereby the work of the Committee on the appropriateness of BNP Paribas’ compensation principles and risk policy, thus meeting the requirements of the French Monetary and Financial Code. The Remuneration Committee: In respect of the year 2023 With regard to the principles of the compensation policy: carried out an annual review of the principles of the compensation policy, and of the compensation, indemnities and benefits of any kind granted in respect of the 2023 performance year to the corporate officers of the Group’s significant subsidiaries in France falling within the set threshold by law and having delegated these missions to the Committee, was informed of the provisional results for 2023 of the implementation of the reviews of compliance with the Code of conduct, rules and regulations and the assessment and control of risks for the Group’s Senior Management Position (SMP) and material risk takers populations, was informed of the summary of the Inspection Générale report concerning the implementation of the review of Group material risk takers’ compensation in respect of 2023, was informed of the Bank’s response to the ECB’s request as part of the horizontal assessment on compensation; With regard to specific categories of personnel, in particular employees whose professional activities have a significant impact on the Group’s risk profile: after receiving detailed information on the employees belonging to the Group’s regulated population, reviewed the issues relating to their remuneration, acknowledged the final scope of the Group’s material risk takers, reviewed the 2024 published report on compensation paid to the Group’s material risk takers for 2023; reviewed the resolution on compensation paid in 2023 to the Group’s material risk takers that is subject to an annual advisory vote at the Shareholders’ Annual General Meeting of 14 May 2024, audited the 2023 remuneration of the Group’s Head of RISK, Head of Compliance and the Head of Inspection Générale, was informed of the remuneration of Key function holders for 2023, took note of the list of the highest paid employees in 2023, reviewed the final parameters for determining the variable compensation package for the Global Markets business line in respect of 2023 performance and was informed of the final package awarded and the way in which individual awards were made for this business line; Concerning the corporate officers: reviewed, without the presence of the Executive Management, the quantitative and qualitative performance criteria related to the annual variable compensation of the corporate officers and proposed to the Board to approve their variable compensation for the 2023 performance year, approved the information relating to the total compensation and benefits of any kind awarded in respect of 2023 or paid during the same year (“Say on pay”) to directors and corporate officers of BNP Paribas (SA); Concerning the directors: was informed of the final amount of the compensation allocated to the directors for 2023; In respect of the year 2024 With regard to the principles of the compensation policy: reviewed the compensation policy for directors and corporate officers applicable from the 2024 performance year, reviewed the rules on deferred compensation and the variable compensation payment terms applicable to the Group’s material risk takers in 2024, was informed of the actions carried out by the Group with regard to the gender neutrality of the compensation policy, took note of regulatory changes in the United Kingdom, was informed of future regulatory changes; Regarding specific categories of personnel: took note of the scope of the Group’s material risk takers identified as an initial estimate in respect of 2024, reviewed the initial parameters used to determine the variable compensation package for Global Markets’ employees for the 2024 performance year; In addition to the regulated population, the Committee also examined the annual variable compensation by operating division; Concerning the directors and the non-voting director: proposed that the Board submit to the vote of the Shareholders’ Annual General Meeting of 14 May 2024 an increase in the compensation package for directors from EUR 1.54 million to EUR 1.85 million, to take into account market practices in terms of compensation of directors of French and European banking institutions of a size and complexity lower than or comparable to BNP Paribas, proposed to the Board to modify the terms of compensation of the directors in order to include the increase in the package and to provide for an increased compensation for the members of the Financial Statements Committee given the greater workload of this Committee with new responsibilities for sustainability reporting and the monitoring of periodic control, reviewed the provisional distribution of the compensation allocated to each director in respect of 2024 on the basis of their actual attendance at Board and Committee meetings, determined the terms and conditions of the non-voting director’s compensation, which are identical to those of a director who is a member of a Committee and examined the amount allocated to the latter for the 2024 financial year on the basis of their actual attendance at Board and Committee meetings; In respect of the year 2025 Concerning the corporate officers: reviewed the level and structure of the compensation of corporate officers based on benchmarks with a panel of comparable European banks; Concerning the directors: reviewed the level of the compensation package allocated to directors. The Board: was informed of all the Remuneration Committee’s work; was informed by the Committee Chairman of the approach used to identify those employees whose professional activities have a significant impact on the Company’s risk profile and the principles for their compensation as proposed by the Executive Management for the 2024 performance year; heard the Committee Chairman’s report on the appropriateness of the compensation of the Group’s Head of RISK, Head of Compliance and Head of Inspection Générale for the 2023 performance year; approved the principles of the compensation policies for directors and corporate officers submitted for approval to the Shareholders’ Annual General Meeting of 14 May 2024; approved, without the presence of the Chief Executive Officer and the Chief Operating Officers, the compensation policy for directors and corporate officers for 2024; reviewed and approved, without the presence of the Chief Executive Officer and the Chief Operating Officers, the assessment made by the Committee of the quantitative and qualitative criteria related to the annual variable compensation of the executive corporate officers for the performance year 2023; approved the information relating to the total compensation and benefits of any kind awarded in respect of 2023 or paid during the same year (“Say on pay”) to the directors and corporate officers of BNP Paribas (SA) and submitted for the approval of the Shareholders’ Annual General Meeting of 14 May 2024; approved the provisional split of the compensation allocated to the directors and the non-voting director for 2024. Internal Rules of the Board of directors(15) Preamble The rules concerning: the Board of directors; the members of the Board of directors, including their rights and obligations; the Board of directors’ committees, are set by the statutory and regulatory provisions, the Company’s Articles of association, and these rules (in addition to these Internal Rules of the Board of directors, there is the Policy on the suitability of Members of the management body and Key function holders mentioned in 1.3 below). The Board of directors also takes into account the French market guidelines concerning Corporate Governance and, in particular, the provisions of the Corporate Governance Code of Listed Companies published by the French employers’ organisations Association française des entreprises privées (Afep) and the Mouvement des entreprises de France (MEDEF), hereinafter called the Afep-MEDEF Code, to which BNP Paribas (the “Company”) refers. The Board of directors is a collegial body that collectively represents all shareholders and acts in all circumstances in the corporate interests of the Company. The Board of directors is assisted by specialised committees: Financial Statements Committee; Internal Control, Risk Management and Compliance Committee; Corporate Governance, Ethics, Nominations and CSR Committee; Remuneration Committee; as well as by any ad hoc committee. Part one – The Board of directors, collegial body ARTICLE 1. DUTIES OF THE BOARD OF DIRECTORS The Board of directors discusses any question coming within the scope of its statutory and regulatory duties and contributes to promoting the corporate values aimed, in particular, to ensuring that the conduct of BNP Paribas’ activities by its employees complies with the highest ethical requirements in order to protect the reputation of the Bank. In particular and non-exhaustively, the Board of directors is competent in the following areas: 1.1. ORIENTATIONS AND STRATEGIC OPERATIONS The Board of directors: determines BNP Paribas’ business orientations and supervises their implementation by the Executive Management, taking the social and environmental challenges of BNP Paribas’ activities into consideration; subject to the powers expressly allocated to the Shareholders’ Meetings and within the limit of the corporate purpose, it handles any issue concerning the smooth running of the Company and settles by its decisions any matters concerning it; gives its prior approval with respect to all investment or disinvestment decisions (other than portfolio transactions) in an amount in excess of EUR 250 million, and any proposal to acquire or dispose of shareholdings (other than portfolio transactions) in excess of that threshold, submitted to it by the Chief Executive Officer. It is also regularly informed by the Chief Executive Officer of significant transactions which fall below this limit; gives its prior approval to any significant strategic operation which falls outside the approved orientations; promotes long-term value creation by BNP Paribas. 1.2.CODE OF CONDUCT The Board of directors and the Executive Management have developed a Code of conduct of BNP Paribas Group which defines the standards of conduct in line with the values and missions determined by the Bank. This Code, which shall be integrated by each business line and each employee, governs the actions of each employee and guides the decisions at every level of the organisation. For this purpose, the Board ensures the Executive Management implements this Code in business lines, countries and regions. 1.3.GOVERNANCE, INTERNAL CONTROL AND FINANCIAL STATEMENTS The Board of directors: appoints the Chairman, the Chief Executive Officer and, on the recommendation of the latter, the Chief Operating Officer(s) (COO); sets any limits to the powers of the Chief Executive Officer and of the Chief Operating Officer(s); examines the system of governance, which includes, in particular, a clear organisational structure with well defined, transparent and consistent sharing of responsibilities, efficient processes to identify, manage, monitor and report the risks to which the Company is or might be exposed to; it periodically assesses the efficiency of this governance system and ensures that corrective measures have been taken to remedy any failings; determines the orientations and controls their implementation by the actual managers of the monitoring measures in order to guarantee an effective and prudent management of the Company, including the segregation of duties in the organisation of the Company and the prevention of conflicts of interests; ensures the fulfilment of the obligations which are incumbent on it concerning internal control, and, in particular, examines, at least twice a year, the activity and the results of the internal control; approves the management report (including, in accordance with legal provisions, information on sustainability in a separate section) and the attached corporate governance report; carries out the controls and verifications which it deems appropriate; ensures that the Chief Executive Officer and/or Chief Operating Officer(s) implement a policy of non-discrimination and of diversity including gender balance in management bodies; ensures the implementation of process for preventing and detecting corruption and influence-peddling for which it receives all the information required for that purpose; examines and closes the financial statements and ensures their sincerity; reviews, at least once a year, the draft budgets and the drafts of the various statutory and regulatory reports which the Chief Executive Officer submits to it; ratifies the Inspection Générale's annual budget, its audit plan and its main changes during its execution; prepares a Suitability policy that defines the assessment of Members of the management body and of Key function holders (the “Policy on the suitability of Members of the management body and Key function holders”); the Board of directors (and its committees) apply this policy and revise it regularly to account in particular for any regulatory changes. 1.4.RISK MANAGEMENT The Board of directors: regularly examines, in connection with the strategy it has defined, the opportunities and risks, such as financial, legal, operational, social, and environmental risks, those linked to money laundering and terrorist financing issues, as well as the measures taken as a result; as such, approves and regularly reviews the strategies and policies governing the taking, management, monitoring and reduction of the risks to which the Company is or might be exposed to, including the risks caused by the economic environment. In particular, the Board of directors approves the global risk limits and puts into place a specific process organising its information and, as the case may be, the referral of the matter to it in the event these limits are exceeded. 1.5.COMMUNICATION The Board of directors: ensures that the financial information disclosed to the shareholders and the markets is of high quality; controls the process of financial publication and communication, quality and reliability of the information intended to be published and communicated by the Company. 1.6.REMUNERATION The Board of directors: allocates, without prejudice to the powers of the Annual General Meeting, the directors’ attendance fees; adopts and regularly reviews the general principles of the remuneration policy of the Group which relates, in particular, to the categories of staff including the risk takers, staff engaged in control functions and any employee who, given his or her overall income, is in the same remuneration bracket as those whose professional activities have an impact on the risk profile of the Group; decides, without prejudice to the powers of the Annual General Meeting, the remuneration of the managers who are corporate officers, in particular their fixed and variable remuneration as well as any other means of remuneration or benefit in kind. Executive corporate officers do not take part in deliberations or voting on their own compensation. 1.7.RESOLUTION The Board of directors approves the preventive plan for the institution’s recovery, as well as the elements necessary for the establishment of the resolution plan, communicated to the competent supervisory authorities and has put in place a specific process organising its referral in the event of the activation of the recovery dashboard. 1.8.RELATIONS WITH CONTROL FUNCTIONS Once a year, the Head of Inspection Générale is interviewed by the Financial Statements Committee, the Heads of RISK and Compliance are interviewed by the Internal Control, Risk Management and Compliance Committee (CCIRC) on the organisation, methods and procedures used and on the work programme of these functions within the Group, without the presence of the Executive Management. The Heads of RISK, Compliance and Inspection Générale participate in the Board of directors’ meeting during which the Chairman of the relevant committee reports on their annual hearing. During this meeting, the heads of the control functions provide an update on their respective areas and share their views on the conditions under which they performed their duties with the Board of directors. The Head of LEGAL is also interviewed once a year without the presence of the Executive Management. The Board is informed of the conclusions of the supervisory missions, when the latter so request. If necessary, without referring to the Executive Officers, the Heads of the control functions have access to the Board of directors - or, where applicable, its committees, in particular in the event of a conflict of interest. The Board of directors gives its approval for: the appointment of the Head of Inspection Générale; the dismissal of the Heads of RISK, Compliance and Inspection Générale; the modification of the Inspection Générale charter; the compensation (including its composition) of the Head of Inspection Générale, ensuring that this is in line with his objectives and evaluation. On the basis of an opinion sent by the Financial Statements Committee, the Board assesses the effectiveness of the Inspection Générale. The heads of the control functions are subject to the same rules of ethics, confidentiality and professional conduct as the directors. ARTICLE 2. FUNCTIONING OF THE BOARD OF DIRECTORS 2.1.ORGANISATION OF THE MEETINGS The Board of directors meets at least four times a year and as often as circumstances or BNP Paribas’ interest requires. Notices of meetings may be communicated by the Secretary of the Board. The Secretary of the Board prepares all of the documents necessary for the Board meetings and outs all of the documentation at the disposal of the directors and other participants in the meetings. An attendance register is kept, which is signed by the directors taking part in the meeting. It mentions the names of the directors considered as present. The decisions of the Board of directors may be taken by written consultation (including by electronic means), in accordance with the deadlines and procedures provided for in the Articles of association. Any director may object to this method. The Board of directors’ decisions are recorded in minutes by the Secretary of the Board which are entered into a special register, in accordance with the laws in force. The Secretary of the Board of directors is authorised to issue and certify copies or excerpts of the Board minutes. Each set of Board minutes must be approved at a subsequent Board meeting. The decisions of the Board of directors are carried out either by the Chief Executive Officer, or a Chief Operating Officer, or by any special representative appointed by the Board of directors. 2.2.MEANS OF PARTICIPATION Directors taking part in the meeting by telecommunication means enabling their identification, guaranteeing their effective participation, transmitting at least the voices of the participants, and meeting, through their technical features, the needs of confidentiality, of continuous and simultaneous retransmission, shall be deemed to be present for the purpose of calculating both the quorum and the majority. The minutes state, as the case may be, the occurrence of any technical incidents if they disturbed the conduct of the meeting. Part two – The members of the Board of directors ARTICLE 3. COMPOSITION, INFORMATION AND SKILLS 3.1.CHAIRMAN OF THE BOARD OF DIRECTORS 3.1.1.Relations with the Company’s other bodies and with parties outside the Company In relations with the Company’s other bodies and with parties outside the Company, the Chairman of the Board of directors alone has the power to act on behalf of the Board of directors and to express himself in its name, except in exceptional circumstances, and except where specific assignments or duties are entrusted by the Board of directors to another director. The Chairman makes sure that he maintains a close and trusting relationship with the Executive Management. He provides it with his assistance and his advice while respecting his executive responsibilities. He organises his activities so as to ensure his availability and put his experience at the Company’s service. He contributes to promoting the values and image of the Company, both within the Group and externally. Coordinating closely with the Executive Management, he can represent the Group in its high level relationships, and particularly with major clients, public authorities and the institutions on national, European and international levels. He ensures that the quality of relations with shareholders is maintained, in close coordination with the work of the Executive Management in this area. He ensures that principles of Corporate governance are defined and implemented. The Chairman is the custodian of the proper functioning of the Board of directors of BNP Paribas. As such: with the support of the Corporate Governance, Ethics, Nominations and CSR Committee, with the approval of the Board of directors and of the Annual General Shareholders’ Meeting, where appropriate, he endeavours to build an efficient and balanced Board, and to manage replacement and succession plan processes related to the Board of directors and nominations on which it will have to opine; the Chairman may participate in committee meetings without this being systematic and add any subject to the agenda when he considers it relevant; he ensures that the directors have the documentation and information necessary to carry out their duties in a timely manner and in a clear and appropriate form. 3.1.2.Organisation of the work of the Board of directors The Chairman organises and manages the work of the Board of directors in order to allow it to carry out all of its duties. He sets the timetable and agenda of Board meetings and convenes them. He ensures that the work of the Board of directors is well organised, in a manner conducive to constructive discussion and decision-making. He directs the work of the Board of directors and coordinates its work with that of the specialised committees. He sees to it that the Board of directors devotes an appropriate amount of time to issues relating to the future of the Company and particularly its strategy. The Chairman is regularly kept informed by the Chief Executive Officer and other members of the Executive Management of significant situations and events relating to the business of the Group, particularly those relating to: deployment of strategy, organisation, investment or disinvestment projects, financial transactions, risks, financial statements. The Chief Executive Officer provides the Chairman with all information required under French law regarding the internal control report. He may ask the Chief Executive Officer or any manager, and in particular, the heads of the control functions, for any information likely to assist the Board and its committees in the carrying out of their duties. He may hear the Statutory Auditors in order to prepare the work of the Board of directors and of the Financial Statements Committee. 3.2.DIRECTORS They undertake to act in the corporate interest of BNP Paribas and to comply with all of the provisions of these Internal Rules that are applicable to them, and more specifically the procedures of the Board of directors. 3.3.OTHER PARTICIPANTS 3.3.1.Non-voting directors The non-voting directors attend the meetings of the Board and of the specialised committees in an advisory capacity. 3.3.2.Statutory Auditors The Statutory Auditors attend the meetings of the Board and specialised committees that examine or approve the annual or interim financial statements, and those that examine and adopt the report on the information communicated in terms of sustainability. They may attend Board and specialised committee meetings when deemed necessary by the Chairman of the Board. 3.3.3.Persons invited The Board can decide to invite one or several persons to attend the meetings. 3.3.4.Representative of the Central Works Committee The representative of the Central Works Committee attends the meetings of the Board in an advisory capacity. 3.3.5.Secretary of the Board The Secretary of the Board is appointed by the Board and attends the meetings of the latter. 3.4.ACCESS TO THE INFORMATION 3.4.1.Information and documentation For the purpose of efficiently participating in the Board of directors’ meetings and making enlightened decisions, each director may ask that the Chairman or the Chief Executive Officer communicates to him or her all documents and information necessary to perform his or her duties, if these documents are useful for making decisions and are related to the Board of directors’ powers. Requests are sent to the Secretary of the Board of directors who informs the Chairman thereof. When the Secretary of the Board of directors considers this preferable, for reasons of convenience or confidentiality, the documents thus placed at the disposal of the directors as well as of any person attending the meetings of the Board are consulted through the Secretary of the Board or through the competent employee of the Group. 3.4.2.Systems The placing at disposal of the directors or of any person attending the Board meetings of all of the documentation with a view to meetings of the Board, may be done by any means, including dematerialised. In this case, all the measures of protection considered necessary are taken to protect the confidentiality, the integrity and the availability of the information and each member of the Board or any person who has received the documentation is responsible not only for the systems and media thus placed at disposal but also for their access. 3.5.TRAINING, INDIVIDUAL AND COLLECTIVE SKILLS The directors of BNP Paribas possess, both individually and collectively, the expertise, experience, skills, understanding and personal qualities necessary, notably in terms of professionalism and integrity, to properly perform their duties in connection with each of the significant activities of BNP Paribas and guaranteeing efficient governance and supervision. The directors shall ensure that their knowledge is kept updated in compliance with the Policy on the suitability of Members of the management body and Key function holders. The directors representing employees and the director representing employee shareholders are given time dedicated to training determined by the Board in accordance with the regulations in force. ARTICLE 4. OBLIGATIONS 4.1.HOLDING AND KEEPING OF BNP PARIBAS SHARES Every director appointed by the General Shareholders’ Meeting must personally hold 1,000 shares. The director must hold all of the shares within twelve months of appointment. At the expiry of this period, every director concerned shall make sure to keep the minimum number of BNP Paribas’ shares throughout their term of office. The directors undertake not to engage in any individual hedging or insurance strategies to cover their risk on such shares. This obligation does not concern directors representing employees and directors representing employee shareholders. 4.2.ETHICS – CONFIDENTIALITY 4.2.1.Ethics 4.2.1.1. Availability and regular attendance The members of the Board of directors shall devote the time and the effort necessary to carry out their duties and responsibilities, in compliance with the Policy on the suitability of Members of the management body and Key function holders. The directors representing employees and the director representing employee shareholders are given a preparation time determined by the Board in accordance with the Guidelines on the assessment of the suitability of Members of the management body and Key function holders. 4.2.1.2. Independence and loyalty Every member of the Board of directors shall at all times maintain his or her independence of mind, in compliance with the Policy on the suitability of Members of the management body and Key function holders. He or she shall act with loyalty towards the other directors, shareholders and BNP Paribas. He or she shall refuse any benefit or service liable to compromise his or her independence. 4.2.1.3. Duty of care Every member of the Board of directors is bound by a duty of vigilance with respect to the keeping, use and, as the case may be, the return of the systems, documents and information placed at their disposal. 4.2.2.Confidentiality Any director and any person participating in the work of the Board is bound by an obligation of absolute confidentiality about the content of the discussions and decisions of the Board and of its committees as well as the information and documents which are presented therein or which are provided to them, in any form whatsoever. Except as provided by law, he or she is prohibited from communicating to any person outside of the Board of directors any information that has not been made public by BNP Paribas. 4.3.ETHICAL CONDUCT – LIMITATION ON DIRECTORSHIPS – CONFLICTS OF INTERESTS – PERSONAL DECLARATIONS 4.3.1.Ethical conduct If directors have any questions related to ethical conduct, they may consult the head of the Group Compliance Function. The legislation relating to insider trading applies particularly to directors both in a personal capacity and when carrying out their duties within companies that hold shares in BNP Paribas. They are required, in particular, to respect the legal requirements governing the definition, communication and exploitation of inside information, the principal provisions of which are communicated to them when they take directorship. Directors can only deal in securities of BNP Paribas on a personal basis during the period of six weeks beginning on the day after the publication of the quarterly and annual financial statements, or after the publication of a press release on the Company’s operations, unless they are in possession during that period of information that puts them in the position of an insider with respect to stock exchange regulations. Directors shall refrain from any transactions that could be considered as speculative, and in particular from leveraged purchases or short sales, or short-term trading. The directors, as well as persons with close connections with them, are under the obligation to declare to the French Financial Markets Authority (Autorité des marchés financiers – AMF), which ensures the publication thereof, and to BNP Paribas, the transactions that they execute in BNP Paribas shares and the financial instruments related thereto. 4.3.2.Limitation on directorships The director complies with the statutory and regulatory provisions which are applicable to him or her, or which are applicable to BNP Paribas, concerning limitations on directorships, as well as the Policy on the suitability of Members of the management body and Key function holders. 4.3.3.Conflicts of interests The director complies with the applicable statutory and regulatory provisions regarding conflicts of interests – in particular the so-called “related-party agreements” (conventions réglementées) regime as well as with the Policy on the suitability of Members of the management body and Key function holders. Whatever the circumstances, in the event of breach of the obligations with respect to conflict of interests by a director, the Chairman of the Board of directors shall take all the statutory measures necessary in order to remedy it. He can, furthermore, keep the relevant regulators informed of such acts. 4.3.4.Personal declarations The director undertakes to inform the Secretary of the Board as soon as possible of any change in his or her personal situation (change of address, appointment, directorships, duties carried out, or criminal, civil, or administrative convictions, etc.). In particular, and in compliance with the Policy on the suitability of Members of the management body and Key function holders, the director shall inform, as soon as possible, the Chairman of the Board of directors of any criminal or civil conviction, management prohibition, administrative or disciplinary sanction, or measure of exclusion from a professional organisation, as well as any proceedings liable to entail such sanctions against him or her, any dismissal for professional misconduct, or any dismissal from a directorship of which he or she may be the subject. Similarly, the director informs the Chairman of the Board of directors of any criminal or civil order entered against him or her, administrative or disciplinary sanction or measure of exclusion from a professional organisation, as well as of any Court-ordered reorganisation or liquidation measure of which a company of which he or she is the manager, shareholder or partner is the subject or would be liable to be the subject. ARTICLE 5. REMUNERATION OF DIRECTORS AND NON-VOTING DIRECTORS The overall amount of remuneration given to the directors is determined by the General Shareholders’ Meeting. The individual amount of remuneration given to directors is determined by the Board of directors pursuant to a proposal by the Remuneration Committee. It comprises a predominant variable portion based on actual participation in meetings, regardless of the means. Directors residing abroad receive an increased amount, except where they may participate in meetings of the Board of directors by telecommunications means. Actual participation in the committees entitles committee members to an additional remuneration, the amount of which may differ depending on the committees. Committee members receive this additional remuneration for their participation in each different committee. The Chairmen of committees also receive additional remuneration. The remuneration of the non-voting directors is determined by the Board of directors pursuant to a proposal of the Remuneration Committee. Part three – The Board of directors’ specialised committees To facilitate the performance of their duties by BNP Paribas’ directors, specialised committees are created within the Board of directors. ARTICLE 6. COMMON PROVISIONS 6.1.COMPOSITION AND SKILLS They consist of members of the Board of directors who do not carry out management duties within the Company. They include the required number of members who meet the criteria required to qualify as independent, as recommended by the Afep-MEDEF Code. The members of the committees have the knowledge and skills suited to carry out of the missions of the committees in which they participate. The Remuneration Committee includes at least one director representing the employees. Their remits do not reduce or limit the powers of the Board of directors. The Chairman of the Board of directors sees to it that the number, missions, composition, and functioning of the committees are adapted at all times to the statutory and regulatory provisions, to the Board of directors’ needs and to the best Corporate governance practices. By decision of the Board, the Internal Control, Risk Management and Compliance Committee (CCIRC), the Remuneration Committee (RemCo), and the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) may, in accordance with the provisions of Article L.511-91 of the French Monetary and Financial Code (Code monétaire et financier), ensure their missions for the companies of the Group under the supervision of the regulator on a consolidated or sub-consolidated basis. 6.2.MEETINGS The committees shall meet as often as necessary. 6.3.MEANS PLACED AT THE DISPOSAL OF THE COMMITTEES They may call upon outside experts when needed. The Chairman of a committee may ask to hear any officer within the Group, regarding issues falling within this committee’s jurisdiction, as defined in the present Internal Rules. The Chairman of the committee, in conjunction with the Secretary of the Board, sets the agenda for the meeting and invites the Chief Executive Officer and/or his representatives to it when their presence seems relevant. The Chief Executive Officer may, at his request, attend a meeting of a specialised committee. The Secretary of the Board prepares all of the documents necessary to the meetings of the specialised committees and organises the placing of the documentation at the disposal of the directors and other participants in the meetings. This documentation can be placed at disposal by any means, including dematerialised. In this case, all the measures of protection considered necessary are taken for the purposes of protecting the confidentiality, integrity and the availability of the information and each member of the specialised committee concerned or any person who has received the documentation is responsible not only for the systems and media and their provision but also for their access. 6.4.OPINIONS AND MINUTES They express opinions intended for the Board of directors. The Chairmen of committees, or in case of their impediment another member of the same committee, present a verbal summary of their work at the next Board of directors’ meeting. Written reports of committees’ meetings are prepared by the Secretary of the Board and communicated, after approval at a subsequent meeting, to the directors who so request. ARTICLE 7. THE FINANCIAL STATEMENTS COMMITTEE 7.1.MISSIONS In accordance with the provisions of the French Commercial Code, the committee ensures the monitoring of the issues concerning the preparation and verification of the accounting and financial information, the information on sustainability and the monitoring of periodic control. 7.1.1.Monitoring of the process of preparation of the financial information and information on sustainability With regard to financial information The Financial Statements Committee monitors the process of preparing financial information. It is also tasked with analysing the quarterly, half-yearly and annual financial statements issued by the Company in connection with the closing of financial statements and obtaining further explanations of certain items prior to presentation of the financial statements to the Board of directors. The committee shall examine all matters relating to these accounts and financial statements: the choices of accounting principles and policies, provisions, analytical results, prudential standards, profitability indicators, and all other accounting matters that raise methodological issues or are liable to give rise to potential risks. It makes, as the case may be, recommendations, in order to ensure integrity of the elaboration process of the financial information. With regard to sustainability information The Financial Statements Committee monitors the process of preparing information on sustainability and the process implemented to determine the information to be published in accordance with the so-called ESRS (European Sustainability Reporting Standards) for the communication of information in terms of sustainability. In this context, the Financial Statements Committee examines all issues relating to sustainability reporting documents. It makes, as the case may be, recommendations, in order to ensure integrity of these processes. 7.1.2.Monitoring of the efficiency of the internal control systems and of risk management concerning accounting and financial matters and information on sustainability With regard to the internal control and risk management systems relating to the procedures applicable to the preparation and processing of accounting and financial information The Financial Statements Committee monitors the effectiveness of the internal control systems with regard to the procedures relating to the preparation and processing of accounting and financial information. Within this framework, the Financial Statements Committee analyses, at least twice a year, the summary of the operations and the results of the accounting and financial internal control, as well as those originating from controls on the elaboration process and the processing of accounting, financial and extra-financial information, based on the information communicated to it by the Executive Management. It shall be briefed on incidents revealed by the accounting and financial internal control, reported on the basis of the thresholds and criteria defined by the Board of directors and shall report on its findings to the Board of directors. It is informed by the Chairman of the Board of directors of any possible failure to implement corrective measures decided within the framework of the accounting and financial internal control system that has been brought to his direct knowledge by the head of periodic control and reports on its findings to the Board of directors. With regard to the internal control and risk management systems relating to the procedures applicable to the preparation and processing of sustainability information The Financial Statements Committee monitors the effectiveness of the internal control and risk management systems with regard to the procedures relating to the preparation and processing of sustainability information. 7.1.3.Monitoring of the statutory audit of the annual financial statements, the consolidated financial statements by the Statutory Auditors and the certification of sustainability information With regard to the monitoring of the statutory audit of the annual and consolidated financial statements The Financial Statements Committee reviews the Statutory Auditors’ audit plan, together with their recommendations and their monitoring. It receives from the Statutory Auditors a written report on their main observations concerning the weaknesses of internal control and reviews it, as well as most significant recommendations issued in the framework of their mission and reviews it. It takes notes of the most significant statements and recommendations issued by the internal audit in the framework of their missions regarding accounting and financial information. At least twice a year, the Financial Statements Committee devotes part of a meeting to a discussion with the team of Statutory Auditors, without any member of the Company’s Executive Management being present. The Committee meets in the presence of the team of Statutory Auditors, to review quarterly, half-yearly and annual financial statements. Except in the event of exceptional circumstances, the files containing the quarterly, half-yearly and annual results and financial statements shall be sent to Committee members at least three days prior to the Committee meetings. Where questions of interpretation of accounting principles arise in connection with quarterly, half-yearly and annual results, and involve choices with a significant impact, the Statutory Auditors and Finance & Strategy shall submit, on a quarterly basis, a memorandum to the committee analysing the nature and significance of the issues at play, presenting the pros and cons of the various possible solutions and explaining the rationale for the choices ultimately made. The Statutory Auditors present a note on their work on certification of the financial statements twice a year. On this basis, the Financial Statements Committee reports to the Board of directors on the results of this mission and on the way this mission has contributed to the integrity of the financial information and on its own role in it. It immediately informs it of any difficulties encountered. The Financial Statements Committee takes into account the findings and conclusions of the Haute Autorité de l'Audit (H2A) following the audits carried out by the latter in the professional activity of the Statutory Auditors. With regard to the monitoring of the certification of sustainability information The Financial Statements Committee examines the Statutory Auditors’ programme of involvement in the certification of information on sustainability, their recommendations and their follow-up. The Committee reviews the Statutory Auditors’ written report on their main findings on internal control deficiencies as well as on the most significant recommendations issued as part of their assignments. It also takes note of the most significant statements and recommendations issued by the internal audit in the framework of their missions regarding sustainability information. At least once a year, the Financial Statements Committee devotes part of the meeting to a discussion with the Statutory Auditors for the purpose of certifying sustainability information, without any member of the Company's Executive Management being present. Once a year, the Statutory Auditors also present a note on the work of their mission to certify the information in terms of sustainability. On this basis, the Financial Statements Committee reports to the Board of directors on the results of this mission and on the way this mission has contributed to the integrity of the financial information and on its own role in it. It immediately informs it of any difficulties encountered. The Financial Statements Committee accounts for the statements and conclusions of the H2A resulting from the controls provided by the H3C in the professional activity of Statutory Auditors. 7.1.4.Monitoring the independence of the Statutory Auditors The Financial Statements Committee ensures compliance with the independence conditions required for auditors to perform the certification of financial statements and certification of information in terms of sustainability. The Committee oversees the procedure for selecting the Statutory Auditors for the certification of financial statements and sustainability information. It issues an opinion on the amount of fees for the performance of the statutory audit of the annual financial statements, the consolidated financial statements and certification of information in terms of sustainability. It submits the result of this selection to the Board. It shall be notified on a yearly basis of the amount and breakdown of the fees paid by the BNP Paribas Group to the Statutory Auditors and the networks to which they belong, calculated using a model approved by the Committee. It shall ensure that the amount or the portion of the audit firms or the networks’ revenues that BNP Paribas represents is not likely to compromise the Statutory Auditors’ independence. It gives its prior approval for any service other than the certification of financial statements and sustainability information in accordance with the applicable provisions, for which the amount of fees (excluding taxes) exceeds EUR 1 million. Each quarter, the Committee approves, a posteriori, the services for which the amount of fees (excluding taxes) is less than EUR 1 million, upon presentation by Finance & Strategy. The committee approves the approval and control procedure for Finance & Strategy. The committee shall receive, on a yearly basis from Finance & Strategy, a report on all services carried out by the networks to which the Group’s Statutory Auditors belong. Each Statutory Auditor shall report on a yearly basis to the committee on its internal control system for guaranteeing its independence, and shall provide a written statement of its independence in auditing the Group. The Statutory Auditors shall not attend all or part of committee meetings dealing with their fees or their re-appointment. The Statutory Auditors shall not attend all or part of committee meetings dealing with specific issues that concern a member of their staff. 7.1.5Monitoring of periodic control The committee is tasked with reviewing the internal audit plan for the coming year, prepared by the Inspection Générale, as well as the annual budget of the Function. It is regularly informed of the main changes in the implementation of the audit plan. It regularly reviews the activity of the Inspection Générale on the basis of the information provided to it and the reports presented to it by the Head of Inspection Générale. It analyses the status of recommendations made by the Inspection Générale that were not closed. The committee examines the annual assessment of the Head of Inspection Générale carried out by the Chief Executive Officer and the objectives set for him. The committee reviews the overall amount of his compensation and its composition, ensuring that it remains in line with his objectives and his assessment, and submits its opinion to the Remuneration Committee. The committee examines any changes to the Inspection Générale Charter. At any time, if the Inspector General raises a specific point that cannot be resolved in the context of his day-to-day interactions with the Executive Management, the Chairman of the Board and the Chairman of the Financial Statements Committee will address it and then refer it to the Board of directors. 7.2.CHAIRMAN’S REPORT The Committee shall review that part of the draft of the Chairman’s report on internal control procedures relating to the preparation and processing of accounting and financial information and sustainability information. 7.3.HEARINGS With regard to all issues falling within its jurisdiction, the committee may, at its initiative, hear the heads of finances and accounting of the Group, as well as the Head of Inspection Générale, without the presence of the Executive Management. The committee may ask to hear the Chief Financial Officer with regard to any issue within its jurisdiction, for which he may be held liable, or the Company’s management may be held liable, or that could call into question the quality of accounting and financial information and sustainability information disclosed by the Company. ARTICLE 8. THE INTERNAL CONTROL, RISK MANAGEMENT AND COMPLIANCE COMMITTEE 8.1.MISSIONS 8.1.1.Missions concerning the global risk strategy The committee advises the Board of directors on the adequacy of the global strategy of the Company and the overall current and future risk appetite. It assists the Board of directors when the latter verifies the implementation of this strategy by the actual managers and by the Head of risk management. For this purpose, the committee examines the key orientations of the Group’s risk policy, including social and environmental orientations, based on measurements of the risk and profitability of the operations reported to it, in accordance with the regulations in force, as well as any specific issues related to these matters and methods. In the event that a global risk limit is exceeded, a procedure to refer the matter to the Board of directors is provided for: the Executive Management informs the Chairman of the committee, who can decide to convene the committee or to request the convening of the Board of directors. With regard to liquidity, the committee takes note of the report on the Bank’s Internal Liquidity Adequacy Assessment Process and of the draft Liquidity Adequacy Statement. 8.1.2.Missions concerning remuneration Without prejudice to the missions of the Remuneration Committee, the Internal Control, Risk Management and Compliance Committee examines whether the incentives provided for by the policy and the remuneration practices of the Company are compatible with its situation with respect to the risks to which it is exposed, its capital, its liquidity and the probability and the spreading over time of the expected profits. 8.1.3.Missions concerning internal control and compliance The committee ensures compliance with its obligations relating to internal control, including compliance with banking and financial regulations on internal control; it also examines any issue relating to the compliance policy relating, in particular, to reputational risk or professional ethics. The committee analyses the risk measurement and monitoring report. Twice a year, it examines the internal control operations and findings (excluding periodic control, accounting and financial internal control and sustainability information, which is the responsibility of the Financial Statements Committee) based on the information provided to it by Executive Management and the reports presented to it by the Heads of Permanent Control, Compliance and RISK. The committee is briefed on incidents revealed by internal control that are reported on the basis of the thresholds and criteria defined by the Board of directors and reports on its findings to the Board of directors. 8.2.ACCESS TO THE INFORMATION The committee has all the information about the situation of the Company with respect to risks. It may, if this is necessary, use the services of the Head of Risk Management or of outside experts. 8.3.JOINT MEETINGS OF THE FINANCIAL STATEMENTS COMMITTEE AND THE INTERNAL CONTROL, RISK MANAGEMENT AND COMPLIANCE COMMITTEE The Financial Statements Committee and the Internal Control, Risk Management and Compliance Committee shall meet at the request of the Chairman of the Internal Control, Risk Management and Compliance Committee, or at the request of the Chairman of the Financial Statements Committee or at the request of the Chairman of the Board of directors. In that context, the members of these committees: shall be briefed on the Statutory Auditors' audit plan and shall prepare the work of the Board of directors in assessing the risk policies and management systems; deal with common issues relating to the Bank’s risks and having financial or accounting consequences (including provisioning); review the findings of the Internal Capital Adequacy Assessment Process and take note of the draft Capital Adequacy Statement; take note of the results of the stress tests conducted by the European Banking Authority; examine whether the prices of products and services offered to customers are compatible with the risk strategy. Where prices do not properly reflect the risks, it presents to the Board of directors an action plan to remedy this. This meeting shall be chaired by the Chairman of the Financial Statements Committee. ARTICLE 9. THE CORPORATE GOVERNANCE, ETHICS, NOMINATIONS AND CSR COMMITTEE 9.1.MISSIONS CONCERNING CORPORATE GOVERNANCE The committee is tasked with monitoring Corporate governance issues. Its role is to help the Board of directors to adapt Corporate governance practices within BNP Paribas and to assess its functioning. It ensures the follows up on a regular basis of the evolution in the governance disciplines at the global, European and national levels. At least once a year, it presents a summary thereon to the Board of directors. It selects measures that are suitable for the Group and which are likely to bring its procedures, organisation and conduct in line with best practice in this area. It examines the draft report on Corporate governance and all other documents required by applicable laws and regulations. The Committee is responsible for monitoring the Group’s social and environmental responsibility (“CSR”) policy. As such, it regularly monitors the actions taken in terms of climate transition, sustainable finance and initiatives in favour of ethical responsibility. 9.2.CODE OF CONDUCT The committee carries out regular monitoring of the update of BNP Paribas Group’s Code of conduct. 9.3.MISSIONS CONCERNING THE IDENTIFICATION OF, SELECTION OF, AND SUCCESSION PLAN FOR DIRECTORS, COMMITTEE MEMBERS, AND NON-VOTING DIRECTORS For the identification of, selection of, and succession plan for the directors, the committee applies the principles and procedure described in the Policy on the suitability of Members of the management body and Key function holders. The committee regularly reviews this policy and proposes any amendments it deems advisable to the Board of directors. The committee sets an objective to achieve with respect to gender balance on the Board of directors. It draws up a policy aimed at achieving this objective. This objective and this policy, once set, are approved by the Board of directors. As the case may be, the committee proposes to the Board of directors the appointment of the non-voting directors. 9.4.MISSIONS CONCERNING THE ASSESSMENT OF THE BOARD OF DIRECTORS The committee assesses periodically, and at least once a year, the balance and diversity of the Board in compliance with the Policy on the suitability of Members of the management body and Key function holders. Furthermore, an assessment of the Board of directors is made by a firm of external expert advisors every three years. 9.5.MISSIONS CONCERNING THE SELECTION OF, APPOINTMENT OF, AND SUCCESSION PLAN FOR THE CHAIRMAN, MEMBERS OF EXECUTIVE MANAGEMENT, AND KEY FUNCTION HOLDERS The committee periodically examines the Policy on the suitability of Members of the management body and Key function holders regarding the selection of, appointment of, and succession plan for the executive officers, the Chief Operating Officer(s), the Chairman, and the Key function holders as defined in this Policy, and makes recommendations in the matter. The committee contributes to the selection and appointment of, as well as the establishment of succession plans for, the Chairman and members of the Executive Management, pursuant to the Policy on the suitability of Members of the management body and Key function holders. With regard to the Key function holders, it ensures that the Policy on the suitability of Members of the Management body and Key function holders is applied by the Executive Management. 9.6.MISSIONS CONCERNING THE ASSESSMENT OF THE CHAIRMAN, CHIEF EXECUTIVE OFFICER, AND CHIEF OPERATING OFFICER(S) The committee assesses the action of the Chairman. It makes an assessment of the performance of the Chief Executive Officer and of the Chief Operating Officer(s) in the light of the strategic directions of the business established by the Board of directors and taking into consideration their capacities for anticipation, decision, organisation and exemplarity. 9.7.MISSIONS CONCERNING THE INDEPENDENCE OF THE DIRECTORS The committee is tasked with assessing the independence of the directors, within the meaning of the Afep-MEDEF Code, and reporting its findings to the Board of directors. 9.8MISSIONS CONCERNING THE GENERAL BALANCE OF THE BOARD OF DIRECTORS The committee ensures that the Board of directors is not dominated by one person or, a small group of persons in a manner that is detrimental to the interests of the Company. For this purpose, it applies the Policy on the suitability of Members of the management body and Key function holders. ARTICLE 10. THE REMUNERATION COMMITTEE The committee prepares the decisions that the Board of directors approves concerning remuneration, in particular that which has an effect on risk and the management of risks. The committee makes an annual examination: of the principles of the remuneration policy of the Company; of the remuneration, allowances and benefits of any kind granted to the directors and corporate officers of the Company; of the compensation policies of the categories of staff, including the executive managers, risk takers, and staff engaged in control functions and any employee, who given his overall income, is in the same compensation bracket as those whose professional activities have a material impact on the risk profile of the Company or of the Group; of the annual variable compensation by operating division; of votes on resolutions relating to the compensation of directors and corporate officers at the Shareholders’ Annual General Meeting. The committee directly controls the compensation of the Head of the RISK Function, the Head of Compliance and the Head of Inspection Générale, with regard to their independence and the rules laid down by the Code of conduct. In addition, on the advice of the Financial Statements Committee, the committee ensures that the amount and composition of the compensation of the Head of Inspection Générale are in line with his objectives and assessment with a view to proposing its approval by the Board of directors. Within the framework of the missions described above, the committee prepares the work of the Board of directors on the principles of the remuneration policies, in particular concerning Group staff whose professional activities have a material impact on the Group’s risk profile, in accordance with the regulations in force. It is tasked with studying all issues related to the personal status of the directors and corporate officers, and in particular the remuneration, the amount of retirement benefits and the allotment of subscription or purchase options to the Company’s shares, as well as the provisions governing the departure of the members of the Company’s management or representational bodies. It examines the conditions, the amount and the distribution of the subscription or purchase stock option plans. Similarly, it examines the conditions for the allotment of free shares. With the Chairman, it is also within its remit to assist the Chief Executive Officer with any matter relating to the remuneration of senior executives that the latter might submit to it. Guidelines on the assessment of the suitability of Members of the management body and Key function holders(16) I.Context and definitions a.Context While complying with all legislative and regulatory provisions applicable to the Company, the objective of the policy on the suitability of Members of the Management Body and Key Function Holders is to specify and detail the process for implementing the Internal Rules and regulations applicable to BNP Paribas emanating from the French Monetary and Financial Code (“CoMoFi”), from the guidelines issued by the European Banking Authority (“EBA”) relating to assessment of the suitability of Members of the Management Body and Key Function Holders (“Fit and Proper Guidelines”) and from the guidelines of the EBA on internal governance, as set out in the Comply or Explain process (as defined below). In accordance with the aforementioned provisions, this policy develops the following themes: Identification, selection and succession of Members of the Management Body and Key Function Holders Identification, selection and succession of directors; Identification, selection and succession of the Chief Executive Officer and Chief Operating Officer(s); Identification, selection and succession of Key Function Holders. Independence of mind and management of conflicts of interest of Members of the Management Body General principles; Situations of conflict of interest; Managing conflicts of interest. Compliance with the rules on multiple directorships and the availability of Members of the Management Body Compliance with the appointment rules applicable to Members of the Management Body; Compliance with the rules during the performance of functions as a Member of the Management Body. Reputation, honesty and integrity of Members of the Management Body Competence and diversity of Members of the Management Body General principles; Quantitative and qualitative guidelines; Annual assessment. Induction and training of Members of the Management Body This policy has been approved by the Board of directors. All revisions shall also require approval from the Board of directors. b.Definitions Members of the Management Body means the directors, Chief Executive Officer and Chief Operating Officers(s). Key Function Holders means, for the purposes of the Fit and Proper Guidelines, the Chief Financial Officer, the Head of Compliance, the Head of RISK, the Head of the General Inspection, the Head of Legal, the Head of Human Resources and persons to whom the Company has decided to confer the title of Deputy Chief Operating Officer. Fit and Proper means the assessment conducted by BNP Paribas with regard to the collective suitability of the Board of directors and of other relevant persons with regard to the following criteria: Knowledge, skills and experience; Reputation, honesty and integrity; Independence of mind; Compliance with the rules on limitation of directorships and on availability. Comply or Explain process means the procedure emanating from the Single Supervisory Mechanism through which the European Central Bank (“ECB”) and the competent national authorities notify their intention or otherwise of fully or partially complying with the guidelines issued by the EBA. Company means BNP Paribas SA. CGEN means the Corporate Governance, Ethics, Nominations and CSR Committee of BNP Paribas SA. SCA means the Secretariat of the Board of directors of BNP Paribas SA. II.Identification, selection and succession of Members of the Management Body and Key Function Holders a.Identification, selection and succession of directors The role of the CGEN is to identify persons that are likely to be appointed directors, regardless of their role on the Board of directors, to establish and maintain a list of such persons, who will be periodically monitored by the CGEN, yet without specifying the necessary circumstances requiring their nomination to the Board of directors. Identification by the CGEN of the persons likely to be appointed director The CGEN identifies and recommends to the Board of directors candidates suitable to perform the functions of director, with a view to proposing their appointment to the General Meeting. In the determination of potential candidates, the CGEN notably assesses the balance of skills, experience and diversity, alongside integrity and the ability to understand the challenges and risks, both in a personal and collective capacity, of members of the Board of directors. It further verifies that candidates are able to act in an objective, critical and independent manner, notably with regard to any other directorships held, that they have the courage necessary to express their thoughts and form an opinion, have sufficient availability to be fully committed to their duties, the necessary objectivity for their role and, lastly, the desire to protect the interests and ensure the effective functioning of the Company. The CGEN specifies the responsibilities and qualifications required for the duties to be carried out within the Board of directors and assesses the time to be devoted to such duties. For the purposes of candidate identification, the CGEN: may engage one or more firms specialising in the identification of independent directors within the meaning of the Afep-MEDEF Code, where such firms are to be selected by means of tender held in collaboration with the SCA; it shall also obtain suggestions for candidates from members of the Board of directors. Upon receipt of a candidate proposal, the CGEN will analyse the candidature in accordance with the provisions of this policy as well as on the following criteria, on the basis of both personal and collective skills: knowledge and competence in the relevant fields, based on adequate experience providing an understanding of the Company’s essential challenges and risks, notably including the money laundering and terrorist financing risks, thereby enabling decisions to be taken in an effective and informed manner; courage, notably to express one’s thoughts and form an opinion while maintaining objectivity and independence; availability, i.e. sufficient time that the director is able to dedicate to his directorship and related training, and the assiduity, which allow the necessary hindsight and promote the director’s commitment and sense of responsibility regarding the exercise of their directorship; loyalty, which fosters the director’s commitment to the Company and to their duties within the Board of directors, which collectively represents the shareholders; an effective understanding of the Company’s culture and ethics; reputation and probity: no-one will be deemed to satisfy the criteria of reputation and probity if their conduct in the private or professional sphere raises serious doubts about their suitability for performing the functions of independent director or, most notably, should they be or have been personally involved in any actual or attempted money laundering or terrorist financing. The CGEN ensures the regular updating of the list of persons that are likely to be selected, and, once a year, reports to the Board the work performed in order to identify the persons that are likely to be appointed directors so that the Board can deliberate on it. As applicable, the CGEN shall identify suitable candidates for the post of Chairman of the Board of directors by applying the aforementioned criteria. Selection by the Board of directors of persons likely to become members of the Board of directors Whenever the Board of directors is required to decide on the appointment of a new member, the CGEN shall propose a candidate to the Board of directors in order, if the Board of directors decides so, to propose such candidate to the General Meeting. The CGEN shall in the first instance communicate the name of the suitable candidate to the Chairman of the Board of directors, specifying its reasons for the proposal. The Chairman of the Board of directors shall contact the person in question and, where the latter is willing, shall mandate the SCA to conduct a review into their background on the basis of the aforementioned provisions. The Chairman of the CGEN and the Chairman of the Board of directors shall meet the potential candidates. All proposals of a candidate for the function of Chairman of the Board of directors shall be submitted to the Chairman of the CGEN, who shall assume responsibility for contacting the candidate in question. Should the review and interview be unsatisfactory, whether for the function of director or Chairman of the Board of directors, the CGEN may request the Board of directors to make a decision on the appointment. The SCA may demand from candidates any document it may require to carry out its review, where such documents shall be retained in accordance with legislative and regulatory provisions on personal data protection. With regard to specialised committees, the Board of directors shall receive from the CGEN proposals for the appointment of members (in collaboration with the Chairman of the specialised committee in question) and for the appointment of the Chairmen of specialised committees at the time of renewal or replacement. Director succession planning The CGEN is responsible for considering preparatory measures for replacing directors and, as applicable, the Chairman of the Board of directors. The CGEN shall also conduct an annual review of the potential successors to the Chairman of the Board of directors who may be put forward to the Board of directors in the event of the temporary or permanent incapacity or decease of the incumbent. The Chairman of the Board of directors shall obtain the consent of any such potential successor. The review shall give rise to a list of names to be retained by the SCA. b.Identification, selection and succession of the Chief Executive Officer and Chief Operating Officer(s) The Board of directors is responsible for appointing the Chief Executive Officer and, on the proposal of the latter, the Chief Operating Officer(s), while specifying any limitations on their powers. To this end and in collaboration with the Chairman of the Board of directors, the CGEN shall propose to the Board of directors the selected Chief Executive Officer and, on the proposal of the latter, the selected Chief Operating Officer(s). When identifying and proposing its candidates to the Board of directors for the post of Chief Operating Officer(s), on the proposal of the Chief Executive Officer and with the support of the Company’s Human Resources function, as may be required, the CGEN shall ensure balanced gender representation and guarantee the presence of at least one man and one woman until completion of the selection process. In order to identify the candidate, the CGEN shall analyse their candidature in the light of this policy and the following criteria: knowledge and competence in the relevant fields, based on adequate experience providing an understanding of the Company’s essential challenges and risks, notably including the money laundering and terrorist financing risks, thereby enabling decisions to be taken in an effective and informed manner; courage, notably to express one’s thoughts and form an opinion while maintaining objectivity and independence; availability, i.e. that the Chief Executive Officer and Chief Operating Officer(s) are able to devote sufficient time to their duties and associated training; loyalty, which fosters the commitment of the Chief Executive Officer and the Chief Operating Officer(s) to the Company and its shareholders; reputation and probity: no-one will be deemed to satisfy the criteria of reputation and probity if their conduct in the private or professional sphere raises serious doubts about their suitability for performing the functions of Chief Executive Officer or Chief Operating Officer, as applicable, most notably should they be or have been personally involved in any actual or attempted money laundering or terrorist financing. The SCA may demand from the candidate or Company, as applicable, any document it may require to carry out its review, where such documents shall be retained in accordance with legislative and regulatory provisions on personal data protection. It is also responsible for considering preparatory measures for replacing the Chief Executive Officer and Chief Operating Officer(s). The CGEN shall also conduct an annual review of the potential successors to the Chief Executive Officer who may be put forward to the Board of directors in the event of the temporary or permanent incapacity or decease of the incumbent. The Chairman of the Board of directors shall obtain the consent of any such potential successor. The review shall give rise to a list of names to be retained by the SCA. c.Identification and appointment of Key Function Holders The CGEN shall ensure via the Human Resources function of the Company that the following factors are taken into account when Key Function Holders are identified and appointed by General Management: competence, qualifications and experience; reputation, honesty and integrity, notably ensuring that the person in question is not, and has never been, personally involved in any actual or attempted money laundering or terrorist financing. III.Independence of mind and management of conflicts of interest by Members of the Management Body With due consideration given to the regime covering so-called “related-party agreements” as set out in Articles L. 225-38 et seq. of the French Commercial Code, to the provisions on independence of mind and conflicts of interest provided for in section 9 of the Fit and Proper Guidelines, and in order to implement the best observed practices of governance, the objective of this section is to (i) recall the general principles applied to ensure the independence of mind of each Member of the Management Body, (ii) define the situations of conflict of interest directors may face, given the wide range of the Group’s activities which may conflict with the interests of the director in question, whether directly or indirectly, and (iii) in the presence of a potential or actual conflict of interest, detail the measures to be taken such that said conflict is duly recorded and managed in an appropriate manner. a.General principles Each Member of the Management Body shall at all times maintain independence of mind, analysis, assessment and action in order to be able to form opinions and take decisions in an informed, effective and objective manner. To this end, Members of the Management Body shall comply with legislative and regulatory provisions on conflicts of interest (notably the regime covering so-called “related-party agreements”) in addition to the following provisions on the measures to be implemented in order to record and manage conflicts of interest in an appropriate manner. Most specifically, Members of the Management Body shall refuse any benefit or service that may compromise their independence, undertaking to avoid all situations of conflict of interest (as described below). Each member of the Board of directors shall freely express their positions, including minority positions, on matters discussed at Board of directors’ meetings or at specialised committee. It should be noted that any conflict of interest is likely to affect their classification as an “independent director” within the meaning of the Afep-MEDEF Code. b.Situations of conflict of interest In addition to the regime covering so-called “related-party agreements” set out in Article L. 225-38 et seq. of the French Commercial Code, the following are also likely to constitute a situation of conflict of interest: any agreement entered into directly or indirectly(17) by any company controlled by the Company within the meaning of Article L. 233-16 of the French Commercial Code and any Member of the Management Body of the Company; any agreement in which a Member of the Management Body of the Company has an indirect interest,i.e. where the Member of the Management Body - although not personally party to the agreement entered into by a company controlled by the Company within the meaning of Article L. 233-16 of the French Commercial Code - gains any form of benefit from the agreement; any agreement entered into by a company controlled by the Company within the meaning of Article L. 233-16 of the French Commercial Code and a company of which a Member of the Management Body of the Company is owner, shareholder with unlimited liability, manager, director, member of the Supervisory Board or, in more general terms, holds any form of management post within said company; any situation in which a Member of the Management Body is or is likely to become aware of confidential information during their term of office, where such information (i) concerns a company of which said member is a manager within the meaning of c) or within which they perform a function or hold any form of interest whatsoever, or (ii) concerns the Company or any company controlled by the Company within the meaning of Article L. 233-16 of the French Commercial Code and which may relate to the activities of a company of which said member is a manager within the meaning of c) or within which said member performs a function or holds any form of interest whatsoever; any situation in which a Member of the Management Body could participate in a Board of directors’ decision concerning any person with whom said member has family or business ties or maintains a close relationship; obtaining a new directorship, whether for a listed or unlisted French or foreign entity not belonging to a group for which said member is a director, or any post on the specialised committees of a corporate body, or any other new function(18); any currently valid commitment given in respect of functions previously performed in France or abroad (e.g. non-competition clause); more generally, any situation that may constitute a conflict of interest between any Member of the Management Body and the Company or any of its subsidiaries within the meaning of Article L. 233-16 of the French Commercial Code. c.Management of conflicts of interest The assessment of ordinary operational agreements is covered by a distinct procedure of the Board of directors entitled “Implementation procedure relating to conflicts of interest in loans and other transactions granted to members of the management body and their related parties”. Situations covered by the “related-party agreements” regime Members of the Management Body acknowledge to be fully informed about the regime covering related-party agreements and their associated obligations. Other situations On occurrence of any of the situations set out in a) to e), g) and h) above, the Member of the Management Body must notify the Chairman of the Board of directors thereof without undue delay, where the latter shall notify the CGEN for an opinion based on its analysis of the declared situation, which may consist of one or more of the measures set out below. The opinion shall subsequently be submitted to the Board of directors and, where the opinion is supported, it shall be notified to the interested party by the Chairman of the Board of directors. The Board of directors’ decision shall be recorded in the minutes of the meeting. More specifically, on occurrence of any of the situations set out in a) to e), g) and h) above during any Board of directors’ meeting or specialised committee meeting, and without prejudice to application of the preceding subparagraph, the Board of directors or the specialised committee, as applicable, shall specify the required measures without undue delay, which may notably consist of the member of the Board of directors or of the specialist committee concerned not participating in the deliberations, abstaining from the vote, not receiving the information relating to the matter generating or likely to generate a conflict of interest and even leaving the meeting of the Board of directors or of the specialised committee when the matter in question is being discussed. The minutes of the Board of directors’ or specialised committee meeting shall record the measures applied. On occurrence of any situation set out in f) above, the member shall notify the Chairman of the Board of directors of their intention to accept (i) a new directorship, whether for a listed or unlisted French or foreign company not belonging to a group of which said member is a director, or (ii) any participation in the specialised committees of a corporate body, or (iii) any new function, such that the Board of directors on the proposal of the CGEN is able to decide on the compatibility of any such appointment with the position of Member of the Management Body of the Company. As required, the provisions on multiple directorships and availability of Members of the Management Body set out below shall apply mutatis mutandis. Regardless of the circumstances, the Member of the Management Body deemed by the Board of directors to no longer be able to perform their functions due to the occurrence of a conflict of interest, shall be required to resign. More generally, in the event of any Member of the Management Body failing to meet their obligations regarding conflicts of interest, the Chairman of the Board of directors shall take all necessary legal measures to rectify the situation; the Chairman may also notify the facts to the relevant regulators. Lastly, the Chairman of the Board of directors shall ensure that the Board of directors deliberates independently of the executive functions, notably where the Chief Executive Officer is also a director. IV.Compliance with the rules on multiple directorships and the availability of Members of the Management Body Members of the Management Body shall comply with all applicable legislative and regulatory provisions, notably Articles L. 511-52 and R. 511-17 of the French Monetary and Financial Code (“CoMoFi Provisions”) and the Fit and Proper Guidelines, which apply to the members or apply to the Company with regard to the limitation of directorships and the availability, in addition to the provisions of the Afep-MEDEF Code. a.Compliance with the appointment rules applicable to Members of the Management Body Once the candidate has been selected by the CGEN and before being submitted to the Board of directors, the SCA under the responsibility of the Chairman of the Board of directors shall: Contact the candidate to request a list of the directorships held and other functions performed by the candidate, and the associated time spent each year; Verify that the candidate complies with the provisions of CoMoFi with regard to the limitation of directorships; Ensure that the candidate has sufficient time to carry out the responsibilities and receive the training associated with the proposed directorship; Verify that the candidate’s directorships and functions are compatible with the status of Member of the Management Body in accordance with the aforementioned requirements of independence of mind and conflicts of interest. The candidate must certify that the list of their directorships and functions is complete, and forward to the SCA on request any document (Articles of association, trade register entries or equivalent, etc.), certificates, certifications, etc. which the SCA may deem to be required. The SCA shall then analyse the directorships declared by the candidate in order to ensure compliance with the number of directorships specified in CoMoFi. The SCA shall retain the supporting documentation on which its analysis and conclusions are based, in accordance with legislative and regulatory provisions on personal data protection. During the course of its review, the SCA may conduct any investigations it deems necessary. On completion of the SCA’s review: The candidate shall be declared to comply with CoMoFi and has sufficient availability to perform the office of director; the SCA shall notify the Chairman of the Board of directors who, in turn, shall notify the Chairman of the CGEN. The CGEN may then put the candidate forward to the Board of directors for a decision on their appointment or co-optation, as applicable; or The candidate shall be declared not to comply with CoMoFi or does not have sufficient availability to perform the office of director; the SCA shall notify the Chairman of the Board of directors who, in turn, shall notify the Chairman of the CGEN such that corrective measures can be considered with the candidate. Where the candidate agrees to implement the necessary measures prior to their appointment or co-optation, the SCA shall record their willingness in a report to be submitted to the Board of directors for a decision on the proposed appointment or co-optation. Where the candidate does not wish to or cannot implement the necessary measures, the SCA shall submit its report to the CGEN for formal closure of the selection process. b.Compliance with the rules during the performance of functions as a Member of the Management Body Members of the Management Body shall at all times comply with the rules on limitation of directorships and devote the necessary time and effort to the performance of their functions and responsibilities. They shall accept the discipline of collaborative working in a context of mutual respect of opinions, exercising a sense of responsibility to the shareholders and other stakeholders of the Group. The directors shall also regularly and actively participate in meetings of the Board of directors and specialised committees, and attend the General Meeting of the Shareholders. The directors representing the employees and the directors representing shareholder employees shall be allowed preparation time to be specified by the Board of directors, in accordance with applicable legal provisions. To this end, each Member of the Management Body shall notify the Chairman of the Board of directors of their intention to accept (i) a new directorship, whether for a listed or unlisted French or foreign company not belonging to a group of which said member is a director, or (ii) any participation in the specialised committees of a corporate body, or (iii) any new function in France or abroad, such that the Board of directors on the proposal of the CGEN is able to decide if the role is compatible with the post held within the Company. In any such case, the SCA shall follow the review and verification procedure applicable to appointments of Members of the Management Body. Completion of the aforementioned review shall have one of the following two outcomes: the Member of the Management Body accepts the new directorship and complies with CoMoFi: the SCA shall notify the Chairman of the Board of directors who, in turn, shall notify the CGEN. The CGEN shall then ensure that the new directorship is compatible, notably with the rules on conflicts of interest set out above; or the Member of the Management Body accepts the new directorship but no longer complies with CoMoFi; the SCA shall notify the Chairman of the Board of directors who, in turn, shall notify Chairman of the CGEN for measures to be considered with the Member of the Management Body enabling the latter to comply with CoMoFi. Regardless of the circumstances, should the Member of the Management Body no longer have sufficient availability to perform the office of director, the SCA shall notify the Chairman of the Board of directors who, in turn, shall notify the Chairman of the CGEN such that corrective measures can be considered with said member. Should the Member of the Management Body wish to retain their office within the Company, they must reject the directorship being offered or resign from one existing directorship. The SCA shall record the corresponding decision in a report to be submitted to the Board of directors. Should the Member of the Management Body decide to accept the new directorship yet without resigning from an existing directorship, said member shall be required to hand in their letter of resignation as a Member of the Management Body of BNP Paribas. The SCA shall record their resignation in a report to be submitted to the CGEN for formal acceptance, the effective date of which shall be decided by the Board of directors. Any Member of the Management Body who no longer believes they are able to perform their functions on the Board of directors, or on any specialised committee of which they are a member, shall be required to resign. At least once a year, the SCA shall ask Members of the Management Body to update their “EBA Form” listing all directorships held by each Member of the Management Body, with their availability table in attachment. This will enable the SCA to verify compliance with CoMoFi and the ongoing availability of all Members of the Management Body. V.Reputation, honesty and integrity of Members of the Management Body Members of the Management Body must at all times meet the requirements of reputation, honesty and integrity. Candidates and Members of the Management Body shall immediately notify the Chairman of the Board of directors and the SCA of: any ongoing procedure and associated consequences by which they may be affected in the context of criminal, civil, administrative or other action conducted by any public authority in France or abroad; any disciplinary measure; any previous approval rejection issued by the competent banking or financial authorities in France or abroad; any rejection, withdrawal, removal, disqualification or cancellation of registration, authorisation, membership or licence affecting the exercise of any commercial or professional activity; any sanction imposed by a professional body in France or abroad; any dismissal for professional misconduct or removal from corporate office; any situation set out in a) to f) above affecting a company of which they are a director, significant shareholder or partner. The SCA shall retain the supporting documentation on which the CGEN’s analysis and conclusions are based, in accordance with legislative and regulatory provisions on personal data protection. In this regard and at the request of the Chairman of the Board of directors or, as applicable, of the Chairman of the CGEN, the SCA may conduct any investigation it may deem to be necessary, including holding an interview with the person concerned. Where the Chairman of the Board of directors or the Chairman of the CGEN, as applicable, is notified of the occurrence of any of the aforementioned events, the CGEN shall be notified in order to get its opinion on the reputation of the Member of the Management Body, based on its analysis of the declared situation, and may demand the resignation of the member in question. The opinion shall subsequently be submitted to the Board of directors and, where the opinion is supported, it shall be notified to the interested party by the Chairman of the Board of directors. The Board of director’s decision shall be recorded in the minutes of the meeting. Furthermore, all Members of the Management Body undertake to act with loyalty and integrity towards the other Members of the Management Body and the shareholders of the Company. Failing this, the Chairman of the Board of directors or the Chairman of the CGEN, as applicable, may refer the matter to the CGEN for its opinion on the loyalty and integrity of the Member of the Management Body in question, and may decide to demand their resignation. VI.Competence and diversity of Members of the Management Body a.General principles To enable decisions to be taken in an informed and judicious manner in all circumstances, the Board of directors attaches great importance to identifying candidates offering individual expertise gained in the fields of banking or finance, or recognised experience acquired within the general management of a large international company, enabling such candidates to understand the Company’s business model and the associated risks. Mindful of the need for collective competence, however, the Board of directors shall strive to ensure that directors offer complementary expertise. To this end, it shall also seek out candidates able to understand the major emerging issues, challenges and risks faced by the Company, such as the current social and environmental issues, the challenges of digital transformation and geopolitical risks. With regard to diversity, the Board of directors has established guidelines based on qualitative and quantitative criteria covering the number of directors, gender balanced representation, international experience, diversity of nationalities, and age and seniority, in addition to the personal and collective qualities set out in this policy. The objective of the guidelines set out below is to establish a theoretical composition of the Board of directors which: is appropriate to the Company given its size, diversified and integrated business model, operational complexity, the risks associated with its activities and its international dimension; is aligned with the expectations of the Company’s shareholders and other stakeholders; complies with all legislative and regulatory provisions applicable to the Company and with its Articles of association; complies with the recommendations set out in the Afep-MEDEF Code. Candidates must in all cases be capable of working in a collaborative environment. b.Quantitative and qualitative guidelines Number of directors In accordance with Article 7.1 of the Company’s Articles of association, the number of directors to be appointed by the Ordinary General Meeting of the Shareholders shall lie between nine and eighteen. The directors representing the employees and the director representing shareholder employees are not to be taken into account when calculating the aforementioned minimum and maximum number of directors. It should be noted that, in accordance with Article 17 of the Articles of association, the Board of directors may also appoint one or two non-voting directors on the proposal of the Chairman of the Board of directors. Gender balanced representation In accordance with Article L. 511-99 of CoMoFi and Article 9.3 of the Internal Rules, the CGEN is required to set an objective for gender balanced representation on the Board of directors and to develop a policy to meet this objective. To this end, in 2016 the Board of directors issued its policy on gender balanced representation on the Board of directors. When selecting the profiles of potential candidates for the position of director, the policy specifies the obligations of gender balanced representation on the Board of directors in accordance with applicable legislative provisions. International experience and diversity of nationalities Given the international nature of the Company’s activities, the Board of directors promotes the identification of candidates offering international experience acquired through functions performed outside France or through a directorship with a company established outside France, notably in the Group’s main operational regions of Europe, the Americas and Asia-Pacific. With regard to diversity of nationalities, the Board of directors has specified the optimum number of non-French or dual nationality directors to be at least 30%, and at least 40% not including directors appointed by General Meeting (excluding directors representing the employees). This quantitative reference was established on the basis of a Board of directors’ target size of 14 directors which, apart from in exceptional or temporary circumstances, signifies 4 directors of non-French or dual nationality. Given the Company’s positioning in Europe, the Board of directors favours European profiles, although on a non-exclusive basis. Age and seniority The Board of directors promotes an equitable balance in terms of directors’ ages while ensuring adequate seniority, always allowing for sufficient availability and to be able to act effectively in all circumstances. c.Annual assessment Once a year under the responsibility of the CGEN, the SCA shall assess the composition of the Board of directors with regard to the general principles and guidelines set out above. The CGEN shall submit the results of its assessment to the Board of directors, including all proposals it may deem to be appropriate. The assessment shall be carried out by a consultant once every three years. VII.Induction and training of Members of the management body The Members of the Management Body of the Company shall individually and collectively have the necessary expertise, experience, skills, understanding and personal qualities, notably with regard to professionalism and integrity, enabling them to successfully perform their functions in relation to all the Company’s main activities, while guaranteeing effective governance and oversight. The Members of the Management Body shall ensure that they maintain their knowledge in the following fields: Finance, banking, risks (notably those relating to sanctions, embargoes, money laundering, terrorist financing, corruption and influence peddling), applicable regulations and, more broadly, in any field associated with adaptations of the Company’s strategy and with the main emerging issues, challenges and risks faced by the Company. The Company shall allocate the necessary human and financial resources to training for Members of the Management Body. In this regard, annual training shall be delivered to the directors by the managers holding responsibility over the training themes, and strategic seminars shall be held. In addition to the aforementioned training, any director may request supplementary training. To this end, the director in question shall discuss the matter with the Chairman of the Board of directors; the SCA shall specify how the requested training is to be delivered. The directors representing the employees and the director representing shareholder employees shall be allowed training time in accordance with applicable legislative provisions. With regard to new directors, the Board of directors shall ensure that they meet the Chief Executive Officer, Chief Operating Officer(s) and certain Key Function Holders. Description of the implementation procedure for conflicts of interest in relation to loans and other transactions granted to the members of the management body and their related parties Pursuant to article L.22-10-12 of the French Commercial Code, the Board of directors has implemented a procedure in order to regularly ensure that the transactions entered into in the ordinary course of business and on arms' length basis (so-called "free" agreements) meet these conditions, to strengthen the process for identifying and monitoring conflicts of interest and to implement a process dedicated to review loans granted by the Bank to Members of the management body and related natural and legal persons. Pursuant to the provisions of article 72 of the Belgian law on the status and supervision of credit institutions, this procedure was extended by the Board of directors in June 2022 to transactions concluded between BNP Paribas Fortis and the directors, the Chief Executive Officer and the Chief Operating Officers of BNP Paribas. This procedure covers agreements concluded between BNP Paribas and the directors, the Chairman, the Chief Executive Officer and the Chief Operating Officers of BNP Paribas or natural persons closely associated with them, their holding companies and legal entities in which they have an interest (directorship or equity holding). There are two parts to the procedure for so-called “free” agreements: Agreements between BNP Paribas and the natural persons or holding companies mentioned above: Each year, the Bank reviews the list of agreements entered into between BNP Paribas and the natural persons or asset holding companies mentioned above. The Compliance Function ensures that these agreements do cover current operations and are concluded under normal conditions and prepares a report that it sends to the Secretary of the Board of directors; Agreements between BNP Paribas and legal entities (other than asset management companies) mentioned above: This procedure is based on existing policies (such as the Code of conduct or the “Customer Interests Protection Policy”) and also provides: the declaration by the directors and corporate officers of the legal entities with which they are associated, the verification by the Bank of any business relationships between each of these legal entities, in-depth monitoring of agreements identified using a risk-based approach. A report is prepared for each of these elements and submitted every year to the CGEN which informs the Board of directors. 2.1.3Compensation and benefits awarded to the Group’s directors and corporate officers The provisions of the French Commercial Code provide for ex ante approval each year by the Ordinary Annual General Meeting of the compensation policy for directors and corporate officers. The compensation policy for directors and corporate officers of BNP Paribas is presented below on pages 87 to 94. The compensation of these same directors and corporate officers is also subject to the ex post vote of the Ordinary Annual General Meeting on the information on compensation referred to in article L.22-10-9 I of the French Commercial Code (this information is set out below on pages 95 et seq.). When the Annual General Meeting does not approve these items, the Board of directors submits an amended compensation policy, taking into account the shareholders’ vote, for the approval of the next Annual General Meeting. The payment of directors’ compensation for the current year is suspended until the amended compensation policy is approved. When the payment is reinstated, payments are backdated to the last Annual General Meeting. Lastly, the compensation of each corporate officer is subject to a second ex post vote on the total compensation and benefits in kind paid during the previous year or awarded in respect of the same year (the information relating to this compensation is outlined in tables 1a and b, 2a and b, 3a and b and 4a and b on pages 101 et seq.). The variable components of compensation awarded to the corporate officers in respect of the previous year can only be paid after they have been approved by the Annual General Meeting on the basis of this second vote. Compensation policy for directors and corporate officers submitted for shareholders’ ex ante approval, in accordance with article L.22-10-8 of the French Commercial Code, at the Annual General Meeting of 13 May 2025 In this report, the Board of directors provides details of the fixed and variable components of total compensation and benefits in kind, attributable to the directors, the Chairman of the Board of directors, the Chief Executive Officer and the Chief Operating Officers for their three-year corporate offices within BNP Paribas (SA). The elements of the compensation policy presented below are the subject of resolutions submitted for the approval of the Shareholders’ Annual General Meeting voting under the quorum and majority conditions required for Ordinary General Meetings. If the Annual General Meeting does not approve these resolutions, the previous compensation policy, already approved by the Annual General Meeting of 14 May 2024, will continue to apply. In this case, the Board of directors will submit for the approval of the next Annual General Meeting a draft resolution outlining an amended compensation policy, indicating how the shareholders’ vote was taken into account and, where appropriate, the opinions stated during the Annual General Meeting. The compensation policy for directors and corporate officers complies with applicable legislation and regulations, the Afep-MEDEF Code and the BNP Paribas Code of conduct. The policy as detailed below (in particular the performance criteria): is aligned with the Company’s corporate interest and contributes to the Company’s commercial strategy and sustainability; takes into consideration the compensation and employment conditions of employees within the Company; and is gender-neutral. Without prejudice to the powers of the Annual General Meeting in this respect, the determination of the compensation of directors and corporate officers is the responsibility of the Board of directors and is based on proposals from the Remuneration Committee, which drafts the decisions which the Board of directors approves regarding compensation. In particular, the Remuneration Committee annually reviews the remuneration, compensation and benefits in kind awarded to the Company’s directors and corporate officers. This committee is made up of four independent members who have experience of compensation systems and market practices in this area and includes a director elected by employees. Measures aimed at avoiding and managing conflicts of interest are established in the Internal Rules of the Board of directors, by the Policy on the suitability of Members of the management body and Key function holders, as well as by the Implementation procedure for conflicts of interest in relation to loans and other transactions granted to the Members of the management body and their related parties. Executive corporate officers do not take part in deliberations or voting on their own compensation. The compensation of corporate officers takes into account, in its principles, the following objectives: alignment with the Bank’s corporate interest and with that of its shareholders: consistency with a medium to long-term outlook, especially in terms of the growth of the Bank’s value, good risk management and the relative performance of its share, integration of extra-financial assessment criteria, taking into account CSR aspects to determine the compensation (partly aligned with the CSR objectives considered for certain employees), and in particular criteria related to the Group’s climate objectives, guaranteeing sufficient variability in the amounts allocated to reflect changes in the Bank’s results without weighing too heavily on fixed expenses; the transparency of compensation: all components (fixed, annual variable, conditional long-term incentive plan) are included in the overall assessment of compensation, balance between the components of compensation, which must contribute to the general interest of the Bank and reflect best market practices and legal and regulatory constraints, the rules must be stable, strict and intelligible; compensation that is sufficiently attractive to facilitate the selection of profiles that are particularly competent in the Group’s business areas. I.Directors' compensation The compensation policy for directors is gender-neutral. In accordance with the law, the global amount of directors’ compensation is set by the Shareholders’ Annual General Meeting. The individual amount of directors’ compensation is determined by the Board of directors pursuant to a proposal of the Remuneration Committee. It consists of a fixed portion and a portion based on actual participation in meetings, regardless of the means. Directors residing abroad receive an increased amount, except where they may participate in meetings of the Board of directors by telecommunication means. Additional compensation is paid for actual participation in one of the four Specialised Committees. This is increased for directors participating in the CCIRC and in the Financial Statements Committee, as well as in the joint session between these two Committees, in view of the specific investment required by these committees. At the end of the year, the Remuneration Committee examines the allocation of directors’ compensation and the amount paid to each of them in respect of the year on the basis of an audit of each director’s actual presence at Board and Committee meetings. Where applicable, the remainder of the global amount fixed by the Annual General Meeting is allocated in proportion to the amount paid to each director. In the event of an additional extraordinary meeting of the Board or Committees, the amount of the compensation due to each director is adjusted, in proportion to the amounts paid to each director. The Board of directors then approves the individual distribution of the directors’ compensation for the year before its actual payment to the directors (subject to the provisions of article L.22-10-34 I of the French Commercial Code which provides that the payment of directors’ compensation for the current year is suspended in the event of a negative vote by the shareholders on the components of compensation paid during or awarded in respect of the past year to corporate officers). II.Compensation of the chairman of the Board of directors The annual fixed compensation of the Chairman, Mr. Jean Lemierre, amounts to EUR 950,000 gross. The Chairman does not receive annual variable compensation or conditional long-term incentive plan. The absence of variable compensation reflects the independence of the Chairman with respect to the Executive Management. Should a new Chairman be appointed, on the proposal of the Remuneration Committee and under this compensation policy, the Board of directors will set the amount of his/her fixed compensation in line with the new Chairman’s profile and experience. III.Compensation of executive corporate officers Compensation for executive corporate officers includes: a fixed component; an annual variable component; a conditional long-term incentive plan (long-term incentive plan or LTIP). The levels of these different components are determined using established market benchmarks. Compensation takes into account the cap on total variable compensation in relation to fixed compensation (including awards under long-term incentive plan) in accordance with article L.511-78 of the French Monetary and Financial Code, applicable specifically to credit institutions. In accordance with paragraph 2 of said article, the Shareholders’ Annual General Meeting of BNP Paribas of 14 May 2024 decided that this cap would be set at twice the amount of the fixed compensation for a duration of three years. For the purposes of calculating the aforementioned ratio, a discount rate may in addition be applied to no more than 25% of the total variable compensation inasmuch as the payment is made in the form of instruments after a deferred period of at least five years, in accordance with article L.511-79 of the French Monetary and Financial Code. 1.Fixed compensation The annual fixed compensation of the Chief Executive Officer, Mr. Jean-Laurent Bonnafé, amounts to EUR 1,843,000 gross at 31 December 2024. The last increase in the fixed annual compensation of the Chief Executive Officer, effective from 1 January 2022, was decided by the Board of directors and approved by Annual General Meeting of 17 May 2022. The Board of directors had noted the Bank’s very good performance since the Chief Executive Officer was appointed. As part of the annual compensation review, the Board of directors reviewed the compensation of the Chief Executive Officers of ten comparable European banks (Barclays, BBVA, Crédit Agricole, Deutsche Bank, HSBC, Intesa SanPaolo, Santander, Société Générale, UBS and Unicredit) based on a study carried out by the independent firm WTW. Within this panel, in which BNP Paribas ranks 2nd in terms of net income, Group share for the 2023 financial year, the total compensation of the Chief Executive Officer is in 9th position out of 11 and is significantly lower than the median of the situations observed. In view of: the fact that the compensation of the Chief Executive Officer of BNP Paribas is significantly lower than the average of his counterparts in other European banks; the growth of the Group’s results and the consolidation of its positioning in Europe; the optimisation of the performance and the capital through constant efforts on costs to obtain positive jaws effects; the Bank’s solid capital structure in order to absorb the new requirements of the CRR3 reform in 2025; his involvement in disposals as well as strategic acquisitions and investments supporting the Group’s medium/long-term growth, financed by the proceeds of the disposal of Bank of the West; the deployment of the Group’s strategy around technology with the Cloud and Artificial Intelligence (signature of a partnership agreement with Mistral AI in 2024); the CSR commitments made by the Group to contribute to a carbon neutral economy by 2050 and implement an ambitious social policy; several international awards (“The World’s Best Bank 2023” awarded by Euromoney and “Bank of the Year 2022” by IFR); the Board of directors proposes, subject to approval by the Annual General Meeting of 13 May 2025, a revaluation of 25% of the fixed annual compensation of the Chief Executive Officer, effective from 1 January 2025. After revaluation, the fixed annual compensation of the Chief Executive Officer amounts to EUR 2,300,000 gross. The fixed annual compensation of the Chief Operating Officers amounted to EUR 1,800,000 gross for the Chief Operating Officer in charge of the CIB scope, Mr. Yann Gérardin, and EUR 1,080,000 gross for the Chief Operating Officer in charge of the CPBS scope, Mr. Thierry Laborde. The last increase in the fixed annual compensation of the Chief Operating Officers, effective from 1 January 2024, was decided by the Board of directors and approved by Annual General Meeting of 14 May 2024. Should a new Chief Executive Officer or a new Chief Operating Officer be appointed, the Board of directors will, on the proposal of the Remuneration Committee and under this compensation policy, set his/her fixed compensation in line with his/her profile and experience. The components of annual variable compensation or of the conditional long-term incentive plan will be set in accordance with the principles set out in this compensation policy. 2.Annual variable compensation The variable component is intended to reflect the effective contribution of executive corporate officers to the success of BNP Paribas in respect of their functions as executive managers of an International Financial Services Group. General principles The variable compensation of executive corporate officers is determined based on a target compensation equal to 100% of their annual fixed compensation for the Chief Executive Officer and the Chief Operating Officers. The variable compensation varies in accordance with criteria representative of the Group’s results, CSR-linked criteria and a qualitative assessment by the Board of directors. In addition, the payment of the annual variable compensation includes a deferred period, “malus” and “claw-back” arrangements, as well as a cancellation clause in the event of a bank resolution measure, in accordance with same terms and conditions as those described below for the LTIP (see 3 below). Criteria linked to the Group’s financial performance Criteria linked to the Group’s financial performance account for 75% of the target variable compensation and enable the corresponding portion of the annual variable compensation to be calculated in proportion to the evolution of financial indicators. There are two Group-based quantitative criteria for the Chief Executive Officer. There are four financial-linked quantitative criteria for the Chief Operating Officers, half of which are Group-based and the other half based on their respective areas of responsibility. If objectives based on quantitative criteria are exceeded (or not achieved), the fraction of the target compensation in question evolves proportionally within the limits of the cap mentioned below. For the Chief Executive Officer, the quantitative criteria apply to the Group’s overall performance based on the following equally weighted criteria: evolution of net earnings per share for the year compared to the previous year (37.5% of the target variable compensation); percentage of achievement of the Group’s budgeted gross operating income (37.5% of the target variable compensation). For the Chief Operating Officers, half of the quantitative criteria are based on the Group’s overall performance and half on the performance of their respective scopes of responsibility based on the following equally weighted criteria: evolution of net earnings per share for the year compared to the previous year (18.75% of the target variable compensation); percentage of achievement of the Group’s budgeted gross operating income (18.75% of the target variable compensation); evolution of pre-tax net income for the year compared to the previous year for their respective areas of responsibility (18.75% of the target variable compensation); percentage of achievement of the budgeted gross operating income of their respective areas of responsibility (18.75% of the target variable compensation). Criteria linked to the Group’s CSR performance sustainability statements A portion of 15% of the target variable compensation is linked to the Group’s CSR performance. The allocation of this portion of the annual variable compensation is based on multi-criteria measurement resulting from a holistic approach of actions undertaken by the BNP Paribas Group with respect to social, societal, and environmental issues. With this in mind, this compensation structure includes three weighted criteria, each at 5%: the Board of directors’ assessment of the year’s highlights, primarily with regard to climatic and social challenges; the publications of extra-financial rating agencies measuring the quality of the BNP Paribas’ CSR positioning relative to its peers; an alignment with the CSR objectives included in the loyalty plans granted to the Group’s key employees. These objectives are based on the Group’s four CSR pillars in terms of economic, social, civic and environmental responsibility and include, in particular, quantified climate objectives as part of the support for the Group’s clients towards a low-carbon economy and the reduction of the BNP Paribas Group’s environmental footprint. For several years, the BNP Paribas Group has made the variable compensation of executive corporate officers conditional on the achievement of criteria in line with the Group’s climate objectives in accordance with the principle of the Afep-MEDEF Code, which came into force in December 2022. Qualitative criteria The portion of the variable compensation linked to the Board of directors’ qualitative assessment is 10% of the target variable compensation. The Board of directors considers it essential to carry out this qualitative assessment, particularly given its enhanced responsibilities in terms of supervision and control in line with the French Monetary and Financial Code. In addition to the Bank’s strategy, which it must approve considering social and environmental issues, the Board of directors must also assess the performance of executive corporate officers based on their capacities for anticipation, decision-making, leadership and exemplary behaviour as part of the 2025 strategic plan. This assessment will be made in light of the economic situation and with regard to the Group’s operational and integrated model. ➤Summary of the criteria used to determine the annual variable compensation applicable to the Chief Executive Officer and the Chief Operating Officers Criteria % of target annual variable compensation Type Chief Executive Officer Chief Operating Officers Criteria linked to the Group’s financial performance 37.50% 18.75% Evolution of net earnings per share for the year compared to the previous year 37.50% 18.75% Achievement of budgeted Group gross operating income N/A. 18.75% Evolution of pre-tax net income of the area of responsibility for the year compared to the previous year N/A. 18.75% Achievement of budgeted gross operating income of the area of responsibility Criteria linked to the Group’s CSR performance 15.00% 15.00% Multicriteria assessment of the actions taken by BNP Paribas Group with respect to social, societal and environmental issues Qualitative criteria 10.00% 10.00% Assessment with regard to implementation of the Bank’s strategic guidelines, particularly the human, organisational and technical dimensions of the Growth, Technology & Sustainability 2025 plan, and taking into account the general context of the year under consideration Ceiling The Board of directors ensures the consistency of the annual variable compensation with evolution of the Group’s results and the area of responsibility of each of the Chief Operating Officers. In any case: each of the criteria related to the Group’s financial performance (two in the case of the Chief Executive Officer and four in the case of the Chief Operating Officers) is capped at 130% of its target weight and cannot therefore result in an annual variable compensation exceeding respectively 48.75% of the target variable compensation for the Chief Executive Officer and 24.375% for the Chief Operating Officers; the criteria related to the Group’s CSR performance, as well as the qualitative criteria, are capped at 100% of their target weight and cannot therefore result in an annual variable compensation greater than, respectively, 15% and 10% of the target variable compensation; the amount of the annual variable compensation awarded to each executive corporate officer is capped at 120% of their target variable compensation. Terms and conditions of payment The payment terms for variable compensation of BNP Paribas Group’s executive corporate officers, in accordance with the provisions of the French Monetary and Financial Code and the European Banking Authority’s Guidelines on compensation policy, are: 60% of annual variable compensation is deferred over five years, at the rate of one-fifth per year; regarding the non-deferred portion of the variable compensation: half will be paid in cash in May of the year of the award, subject to the approval of the Shareholders’ Annual General Meeting under the terms provided for by article L.22-10-34 II of the French Commercial Code, and half will be paid in cash indexed to BNP Paribas share performance, at the end of a one-year holding period starting on the award date (award date is the date of the Board of directors’ decision), i.e. in practice, in March of the year following the year in which the compensation is awarded; the deferred portion of the variable compensation will be paid annually in fifths over five years, the first payment being paid only at the end of a deferred period of one year from the award date of the variable compensation. Each instalment will be paid: half in cash in March every year, and half in cash indexed to BNP Paribas share performance, in March of the following year, at the end of a one-year holding period, provided that the Group’s ROE after tax for the year preceding the payment is greater than 5%. 3.Conditional Long-Term Incentive Plan over five years (LTIP) In 2011, to align the interests of executive corporate officers with the medium to long-term performance of the BNP Paribas Group without compromising risk management, the Board of directors introduced a conditional long-term incentive plan (LTIP) over five years. The LTIP, which amounts to the target annual variable compensation awarded in respect of the previous year, is split into two equal parts: one recognising the increase in the intrinsic value of the BNP Paribas share, and the other, its potential outperformance relative to peers. First half of the awarded amount: intrinsic share performance The first half of the awarded amount depends on the evolution of the share price(20) given that no payment will be made for this first half of the awarded amount if the BNP Paribas share price does not increase by at least 5% from the date of the award by the Board of directors to the end of a five-year period from the award date. If the share price increases by at least 5% during this period, a factor is applied to the initial amount, resulting in the amount being increased or reduced, in line with the table below: Evolution of the BNP Paribas share price over five years Factor applied to the first half of the award Strictly under 5% 0 (no payment) Equal to or higher than 5% and under 10% 40% Equal to or higher than 10% and under 20% 80% Equal to or higher than 20% and under 33% 120% Equal to or higher than 33% and under 50% 130% Equal to or higher than 50% and under 75% 150% Equal or higher than 75% 175% Thus, the first half of the awarded amount will only be paid in full at the end of the five-year period if the share price increases by more than 20% during this five-year period. The factor applied to the first half of the award will, in any event, always be less than or equal to the evolution of the share price and cannot, under any circumstances, exceed 175% of the awarded amount, assuming that the share price has increased by more than 75% at the end of the five-year period. Second half of the awarded amount: outperformance of the BNP Paribas share relative to peers Fulfilment of this condition is assessed by measuring the performance of the BNP Paribas share price relative to the “EURO STOXX Banks” index of main Eurozone banks. It only takes into account the outperformance of the BNP Paribas share price relative to the average index measured over the twelve months prior to the award date, compared with the average for this same index for a period of twelve months prior to payment. The second half of the target amount under the LTIP will only be paid in full if the BNP Paribas share price outperforms the index by at least 10%. Relative performance of the BNP Paribas share in relation to the performance of the EURO STOXX Banks index Factor applied to the second half of the award Lower or equal to 0 point 0% 0 to 5 points inclusive 50% 5 to 10 points inclusive 80% Greater than 10 points 100% The amount determined by applying each of the conditions over the plan’s five-year period is the compensation paid under the LTIP. Ceiling According to the provisions of article L.511-78 of the French Monetary and Financial Code relating to the cap on the variable component as a percentage of the fixed component, total variable compensation awarded, including amounts awarded under the LTIP, may not be more than twice the fixed compensation, in accordance with the decision of the Shareholders’ Annual General Meeting of 14 May 2024. To calculate the ratio, a discount rate may in addition be applied to no more than 25% of the total variable compensation in as much as the payment is made in the form of instruments after a deferred period of at least five years. Payment of LTIP Based on the evolution of the BNP Paribas share price, the first half of the amount paid under the LTIP may not, under any circumstances, exceed 175% of the initial awarded amount. Payment of the second half of the award may not, under any circumstances, exceed the initial awarded amount. Thus, under no circumstances can payments under the LTIP exceed 137.5% of their award value. Continued presence requirement LTIP rules require continued presence throughout the entire duration of the plan. Departure from the Group would result in the LTIP not being paid. Nonetheless, in the event of retirement or death after the end of the first year of the plan, payments would be made provided that performance conditions are met and subject to assessment by the Board of directors. Malus and Claw-back clauses The LTIP provides for “malus” clauses and “claw-back” arrangements. Thus, in the event that the beneficiary should behave in a way or be guilty of acts that do not comply with BNP Paribas’ expectations, as defined in particular in terms of: compliance with the Code of conduct, Internal Rules, regulations; and risk assessment and management, the Board of directors may decide not only not to proceed with the payment of the planned amount, whether or not the beneficiary is present, but also to request the return of all or part of the sums already paid under previous plans over a period of five years. Moreover, this rule provides that in the event of the implementation of a bank resolution measure under the French Monetary and Financial Code, the LTIP rights shall be definitively cancelled. The Board of directors reserves the right to reduce awards under the LTIP, in particular in the event of non-compliance with the above-mentioned ceiling. ➤Structure of the payment of the compensation of corporate officers in respect of 2025 after taking into account the EBA guidelines IV.Extraordinary compensation No extraordinary compensation may be paid to the directors, the Chairman of the Board of directors, the Chief Executive Officer or the Chief Operating Officers. V.Benefits in kind The Chairman of the Board of directors, the Chief Executive Officer and the Chief Operating Officers may have a company car. VI.Stock option or share purchase subscription plans Directors and corporate officers do not benefit from any stock option or share purchase subscription plans. VII.Performance shares Directors and corporate officers do not receive any performance or free shares. VIII.Post-employment benefits 1.Payments or benefits due or likely to become due upon termination or change in functions Directors and corporate officers do not receive any contractual compensation for termination of their term of directorship. 2.Retirement benefits Directors and corporate officers, with the exception of the Chief Operating Officers, do not receive post-employment benefits when they leave the Company or when they retire. The Chief Operating Officers are entitled to the standard retirement benefits awarded to all BNP Paribas (SA) employees pursuant to their initial employment contract. 3.Supplementary pension plans The corporate officers benefit solely from the BNP Paribas Group's mandatory pension plan (supplementary defined-contribution pension plan) set up for all BNP Paribas (SA) employees. 4.Protection insurance The Chairman of the Board of directors, the Chief Executive Officer and the Chief Operating Officers benefit from the death, disability and invalididy insurance schemes as well as the common healthcare benefit scheme, under the same conditions set up for all BNP Paribas (SA) employees. They also benefit from the Garantie Vie Professionnelle Accidents system (death and disability insurance), which covers all BNP Paribas (SA) employees. The Chief Executive Officer and the Chief Operating Officers are also entitled to the supplementary plan set up for members of the Group Executive Committee, which pays out additional capital of EUR 1.10 million in the event of death or total and permanent disability. The employer contribution under this scheme is recognised as a benefit in kind. 5.Non-compete agreement Please note that the Chief Executive Officer signed a non-compete agreement with BNP Paribas (SA) on 25 February 2016. This agreement was approved by the Annual General Meeting of 26 May 2016 pursuant to the provisions of article L.225-38 of the French Commercial Code. Under this agreement, if he ceases to hold any role or position in BNP Paribas, Mr. Jean-Laurent Bonnafé undertakes, for a period of twelve months, not to take any role whatsoever, either directly or indirectly, for a credit institution, investment or insurance firm whose securities are traded on a regulated market in France or abroad, as well as in France for a credit institution, investment or insurance firm whose securities are not traded on a regulated market. Decisions to apply the agreement will be taken in due time with sincerity and loyalty. Under this agreement, the Chief Executive Officer will receive a payment equal to 1.2 times the total of his fixed and variable compensation (excluding LTIP) received during the year prior to his departure. One-twelfth of the indemnity would be paid each month. In accordance with the Afep-MEDEF Code and article R.22-10-14 of the French Commercial Code which stipulate that the payment of a non-compete indemnity must be excluded if the person concerned claimed his pension rights or has exceeded the age of 65 and in line with the stipulations of said non-compete agreement, the Board of directors and the Chief Executive Officer have confirmed that they comply with this provision. IX.Loans, advances and guarantees granted to the Group’s directors and corporate officers BNP Paribas directors and corporate officers and their spouse and dependent children may be granted loans. These loans, representing normal transactions, are granted on an arm’s length basis, in accordance with the Implementation procedure for conflicts of interest in relation to loans and other transactions granted to the Members of the management body and their related parties. Components of compensation paid in 2024 or awarded in respect of the same year submitted to the ex post vote of shareholders during the Annual General Meeting of 13 May 2025 in accordance with article L.22-10-34 of the French Commercial Code The total compensation of directors and corporate officers, as described below, is in line with the compensation policy adopted at the Annual General Meeting of 14 May 2024. ➤Directors’ compensation (amounts in euros) Directors Amounts paid in 2023 in respect of the year (as a reminder) Amounts paid in 2024 in respect of the year Aschenbroich Jacques 135,521 163,777 Bonnafé Jean-Laurent 64,758 76,777 Brisac Juliette 90,490 111,033 De Chalendar Pierre André(1) 122,655 71,254 Cohen Monique 159,966 187,485 Epaillard Hugues(2) 121,368 147,247 Gibson-Brandon Rajna(3) 57,707 N.A. Guillou Marion 106,573 130,065 Lemierre Jean 64,758 76,777 LEPOULTIER Vanessa(2)(4) N.A. 95,872 Logghe Lieve 97,245 130,391 LOMBARD Marie-Christine(5) N.A. 97,206 Noyer Christian 117,080 147,356 Schwarzer Daniela 121,798 179,220 STRAATHOF Annemarie(6) N.A. 84,223 Tilmant Michel 116,866 139,961 Verrier Sandrine(2)(7) 87,274 11,356 Wicker-Miurin Fields(8) 75,941 N.A. TOTAL 1,540,000 1,850,000 Director until 14 May 2024. Amount paid to the corresponding trade union organisation. Director until 10 September 2023. Director from 16 February 2024. Director from 10 January 2024. Director from 14 May 2024. Director until 15 February 2024. Director until 16 May 2023. For information, the rules for allocating directors’ compensation are as follows: Fixed portion(1) Portion based on actual participation Scheduled or extraordinary meeting Directors resident in France EUR 25,000 EUR 3,800/meeting Directors resident outside of France EUR 25,000 EUR 5,000/meeting(2) Chairman of a specialised committee (excluding CCIRC) EUR 6,500/meeting Member of a specialised committee (excluding CCIRC) EUR 3,500/meeting Chairman of CCIRC EUR 6,700/meeting Member of the CCIRC (excluding joint session) EUR 3,700/meeting The fixed portion is calculated prorata temporis of the term of directorship during the year in question. Or EUR 3,800 per meeting if participation is via telecommunication means. Directors elected by the employees and the director representing the employee shareholders receive compensation under their employment contract. At 31 December 2024, the composition of the Board of directors complies with the obligation for gender parity provided by article L.225-18-1 of the French Commercial Code. Directors’ compensation is also gender-neutral. It consists of a fixed portion and a portion based on actual participation in meetings on the basis of the allocation rules presented above. Compensation and benefits of the corporate officers Details relating to the annual variable compensation of executive corporate officers Assessment of the achievement of the targets set for 2024 At its meeting of 3 February 2025, the Board of directors assessed the achievement of the objectives set in accordance with the compensation policy. Group performance criteria Concerning the criterion linked to the evolution of net earnings per share for the year compared to the previous year, its measurement for the Chief Executive Officer Mr. Jean-Laurent Bonnafé as a percentage of the target variable compensation, amounts to 41.83% for 2024 (20.92% for the Chief Operating Officers, Mr. Yann Gérardin and Mr. Thierry Laborde). Concerning the criterion related to the achievement of the Group’s gross operating income budget, its measurement for the Chief Executive Officer Mr. Jean-Laurent Bonnafé as a percentage of the target variable compensation, amounts to 38.25% for 2024 (19.13% for the Chief Operating Officers, Mr. Yann Gérardin and Mr. Thierry Laborde). In addition, for the Chief Operating Officers, Mr. Yann Gérardin and Mr. Thierry Laborde: concerning the criterion related to the evolution of net income before tax for the year compared to the previous year, relating to the scope under their responsibility, its measurement, as a percentage of the target variable compensation, is 21.79% for the CIB scope and 17.37% for the CPBS scope; concerning the criterion related to the achievement of the gross operating income budget for the scope under their responsibility, its measurement, as a percentage of the target variable compensation, is 19.31% for the CIB scope and 18.54% for the CPBS scope. 2023 2024 Variation Application to 37.5% of the target annual variable compensation Chief Executive Officer – Mr. Jean-Laurent Bonnafé Net earnings per share 8.58 9.57 11.55% 41.83% Gross Operating Income 2024 Budget(1): EUR 18,273 million Achieved: EUR 18,638 million 2.00% 38.25% These data are calculated using the average exchange rate for 2024. 2023 2024 Variation Application to 18.75% of the target annual variable compensation Chief Operating Officers – Mr. Yann Gérardin and Mr. Thierry Laborde Group Net earnings per share 8.58 9.57 11.55% 20.92% Gross Operating Income 2024 Budget(1): EUR 18,273 million Achieved: EUR 18,638 million 2.00% 19.13% Scope of responsibility – CIB Net income before tax EUR 6,302 million(2) EUR 7,323 million 16.20% 21.79% Gross Operating Income 2024 Budget(1): EUR 6,959 million Achieved: EUR 7,166 million 2.97% 19.31% Scope of responsibility – CPBS Net income before tax EUR 7,330 million(2) EUR 6,791 million -7.36% 17.37% Gross Operating Income 2024 Budget(1): EUR 10,357 million Achieved: EUR 10,240 million -1.13% 18.54% These data are calculated using the average exchange rate for 2024. In order to be comparable with the results for 2024, the results for 2023 have been recomposed to take into account, in particular, the impact of the contributions to the Single Resolution Fund (SRF) at business level. This recomposition was presented to the market on 29 February 2024. Criteria linked to the Group’s CSR performance The Board of directors reviewed the achievement of the multi-criteria measurement with regard to the three criteria linked to the Group’s CSR performance provided for in the compensation policy, each of which has a 5% weighting. (i) Board of directors' assessment of the CSR policy With regard to the qualitative assessment, the Board of directors considered that this criteria has been met given the significant achievements in 2024 regarding environmental and social issues. BNP Paribas has an ambitious policy in terms of energy transition, sustainable investment, social commitment and financial inclusion. In 2024, BNP Paribas continued its actions in terms of sustainable finance in accordance with its GTS 2025 strategic plan (Growth, Technology & Sustainability). The Group has increased its financing in favour of the ecological transition and its action in favour of financial inclusion and civil society. On the alignment of portfolios towards the goal of a more sustainable economy: publication of the Group’s second climate report with CO2 emissions reduction targets by the end of 2030 for three new sectors of the loan portfolio: air transport, maritime transport and commercial real estate. The report also indicated the intensity of emissions from the residential real estate sector and a description of decarbonisation levers for the agriculture sector; new target for a 70% reduction in absolute greenhouse gas emissions in the oil and gas sector between September 2022 and 2030, more ambitious than the International Energy Agency's Net-Zero Emissions scenario, which projects a necessary reduction of 34% over the same period; BNP Paribas Asset Management’s commitment to no longer invest in bonds issued by companies involved in oil and gas exploration and production; sharp acceleration in outstanding loans to low-carbon energy, mainly renewable, with a 30% increase in financing in favour of these between September 2022 and September 2024, reaching EUR 36.8 billion at the end of September 2024, i.e. 76% of financing related to energy production. At the same time, the Group reduced its fossil fuel financing by over 50%, which at the end of September 2024 represented EUR 11.5 billion, i.e. 24% of financing related to energy production; best rating (A) of BNP Paribas in the CDP ranking(21) for the first time, alongside only 346 companies worldwide (out of a total of approximately 21,000 companies assessed). The Group is the only major international financial institution to obtain this score, reflecting its strong commitment. On enabling its clients to transition to a low-carbon economy: 1st global ranking in terms of green bonds and loans in 2024 according to Bloomberg with USD 32.5 billion; major role in the following transactions: financing of more than USD 1 billion in favour of Arevon, an American company carrying out a photovoltaic project of 374 MW, with storage of 150 MW/600 MWh, called Eland 2 in California; granting of a EUR 1.1 billion Sustainability Linked Loan to DLG Group, a cooperative owned by 25,000 Danish farmers with greenhouse gas reduction targets; EUR 1.75 billion Sustainability Linked Bond for the Italian energy producer ENEL to finance its energy transition projects; 1st EUR 750 million green bond issued by the Republic of Iceland to finance investments contributing to the country’s carbon neutrality objective; EUR 1 billion green bond issued by the Île-de-France Mobilités public transport institution to develop the transport network (9.4 million people daily) and the acquisition of electric buses. On sustainable investment activities: launch by BNP Paribas Asset Management of an Article 9 fund (BNP Paribas Future Forest Fund) and two funds classified under Article 8 (Global Net-Zero Transition Equity Fund, Low Carbon Transition Infrastructure Equity Fund I) in accordance with SFDR regulations; launch of two ETF bonds with an active CSR approach (BNP Paribas Easy Sustainable EUR Corporate Bond, BNP Paribas Easy Sustainable EUR Government Bond). On actions in favour of employees: signature of the new Global agreement in November 2024 with the international federation UNI Global Union for a period of 4 years to strengthen the fundamental rights of the Group’s employees, in particular on remote working, parenthood, health and well-being at work; strengthening of preventive actions in favour of the well-being and health of employees as part of the We Care programme: the Group aims to cover 100% of the workforce with an Employee Assistance Program (more than 93% in 2024). In addition, a (digital) preventive health assessment will be gradually offered to the Group’s employees, and long-term illness support kits were rolled out in 2024 in several countries to support managers and employees; increase in gender diversity among the Senior Managers Positions (SMP) population and the Group Executive Committee in 2024, in line with the targets set for 2025 of 40% women; strengthening of employee training and skills development initiatives. In line with the GTS 2025 plan, on the Technology section, AI training has been accelerated and on the Sustainability section, more than 120,000 individual Group employees have been trained since the launch of the Sustainability Academy in 2022; Group employee engagement score maintained at a high level (85%, comparable to 2023), measured around the themes of pride in belonging to the Group, adherence to the strategy and involvement in work. On actions in favour of financial inclusion and civil society: 2024 world’s best bank for financial inclusion award by Euromoney; growth for Nickel, which exceeded the milestone of 4 million accounts opened, with a presence in 5 European countries. A loan offer is now proposed in partnership with Floa, as well as a home insurance offer for tenants with BNP Paribas Cardif and Lemonade; continued development of the impact investment activity, with the launch of the 2nd BNP Paribas Asset Management fund exclusively dedicated to the development of impact contracts in Europe (BNP Paribas European Impact Bonds Fund 2). It reached EUR 61 million and was labelled Finansol, a first for an impact contract fund; BNP Paribas Foundation: for 40 years, it has supported more than 4,200 projects, including more than 3,650 social and educational initiatives, more than 500 cultural projects and 50 scientific research programmes. Its action has benefited 2 million people, in particular: Projet Banlieues, which has supported 1,350 associations since 2006 in France and in Italy since 2023; Odyssée Jeunes, which has financed educational trips for 62,000 secondary school students since 2009; Climate & Biodiversity initiative, which has been supporting scientific research on climate and biodiversity with 500 scientists since 2010. (ii) Market assessment of the CSR policy Regarding the criterion related to the Group’s CSR positioning compared to its peers in the extra-financial performance rankings of FTSE, S&P Global Corporate Sustainability Assessment and Moody’s ESG Solutions, BNP Paribas is effectively in the 1st quartile of the Banks sector of the three aforementioned agencies. Given the acquisition of Moody's ESG Solutions by MSCI, two extra-financial rating agencies, FTSE and S&P Global Corporate Sustainability Assessment, will be kept for the measurement of this criterion related to the Group CSR positioning. (iii) Assessment of the CSR policy by alignment with the Group’s key employees Regarding the criterion of alignment with the Group’s key employees, the three-year CSR target measure set in the loyalty plan awarded to the Group’s key employees are also met. Consequently, the multi-criteria measure, as a percentage of the target variable compensation, amounts to 15% for 2024 for the Chief Executive Officer and the Chief Operating Officers. CSR – Assessment of the CSR policy (i) By the Board (ii) By the market (iii) Alignment with key employees Multi-criteria measurement Weighting 5.00% 5.00% 5.00% Measurement 5.00% 5.00% 5.00% 15.00% Qualitative criteria The Board of directors assessed the qualitative portion of the annual variable compensation in terms of the application of the criteria provided for in the compensation policy. For 2024, the Board of directors took into main consideration and deemed satisfied by Mr. Jean-Laurent Bonnafé the following: increase of 2024 net income, Group share compared to 2023 with a confirmation of the trajectory announced in February 2024 for the 2025 financial year in terms of profitability in a context of a less favourable than expected economic scenario. The Bank’s capital structure is solid and the CET1 trajectory is in line to absorb the new requirements of the CRR3 reform in 2025; prudent and proactive long-term risk management, keeping the Group’s cost of risk at a low level; his decisive role in the Bank’s management with the continued implementation of the GTS 2025 Plan; his action in the refocusing of the proceeds from the sale of Bank of the West through acquisitions and investments supporting the Group’s medium/long-term growth, in particular to make BNP Paribas a European leader in savings management; continued involvement in the implementation of the Group’s CSR strategy in order to contribute to a carbon neutral economy in 2050, in particular through new commitments made in 2024: the Bank is now pursuing a target of 90% of low carbon in its financing for energy production in 2030 (the initial target of 80% to be achieved in 2028) and the reduction in financing dedicated to the air transport, maritime transport and commercial real estate sectors; his role in increasing the number of women in governing bodies as well as his involvement in all the pillars of the Group’s diversity and inclusion policy. For Mr. Yann Gérardin, as Chief Operating Officer in charge of the Corporate and Institutional Banking (CIB) division and in line with the assessments proposed for Mr. Jean-Laurent Bonnafé: CIB division’s results higher than the budget in 2024, reflecting BNP Paribas’ market share gains in the three business lines and the three world regions combined with controlled operating costs and a reversal of provisions for the cost of risk; good risk management within the CIB division; his contribution to the implementation of BNP Paribas’ integrated model, on the one hand, between the various business lines of CIB and on the other hand, by developing joint initiatives with the CPBS and IPS divisions; his role in accelerating the digitalisation of Global Markets operations through electronic platforms; his commitment to continuing to make CIB a CSR leader, and which is reflected in particular by the Bank’s position as the world leader in sustainable financing both in the EMEA scope and globally in 2024 (source: Dealogic); his involvement in strengthening controls and operational resilience, in particular for Global Markets, and in the continued adoption of the Code of conduct by employees. For Mr. Thierry Laborde, as Chief Operating Officer in charge of the Commercial, Personal Banking & Services division (CPBS) and in line with the assessments proposed for Mr. Jean-Laurent Bonnafé: his strong commitment to maintaining a significant contribution of the CPBS division to the Group’s results in a complex environment; prudent risk management of the activities within the division; his involvement in transforming the business model of the consumer finance subsidiary and in the recovery of its profitability; his decisive contribution to the qualitative transformation of business models, particularly in retail banking in France, with progress in terms of customer satisfaction and the continued improvement of the customer experience; his role as sponsor in the Payments & Flows and Mobility initiatives with the development of new partnerships (in particular with La Banque Postale in terms of sustainable mobility); his driving role in interbank bodies in France and in Europe in favour of the transformation of the European payments market with the launch in 2024 of WERO in several countries as part of the European payments initiative; his commitment to continuing the integration of the CSR dimension into CPBS’s business lines. Summary After taking into account all the criteria used to set annual variable compensation, and the evolution of the Group’s operating results, the Board of directors, on the proposal of the Remuneration Committee, set the variable compensation awarded in respect of 2024 at: EUR 1,936,624 for Mr. Jean-Laurent Bonnafé (representing 105.08% of his target annual variable compensation); EUR 1,910,700 for Mr. Yann Gérardin (representing 106.15% of his target annual variable compensation); EUR 1,090,368 for Mr. Thierry Laborde (representing 100.96% of his target annual variable compensation). The result in respect of each criterion is set out in the following table: Quantitative criteria CSR performance criteria Qualitative criteria Annual variable with respect to 2024 Reminder of target variable compensation EPS(2) GOI(3) NIBT(4) GOI(5) Group Group Business Business Jean-Laurent BONNAFÉ Weighting(1) 37.50% 37.50% 15.00% 10.00% Measurement(1) 41.83% 38.25% 15.00% 10.00% 1,936,624 1,843,000 Yann GÉRARDIN Weighting(1) 18.75% 18.75% 18.75% 18.75% 15.00% 10.00% Measurement(1) 20.92% 19.13% 21.79% 19.31% 15.00% 10.00% 1,910,700 1,800,000 Thierry LABORDE Weighting(1) 18.75% 18.75% 18.75% 18.75% 15.00% 10.00% Measurement(1) 20.92% 19.13% 17.37% 18.54% 15.00% 10.00% 1,090,368 1,080,000 As a percentage of target annual variable compensation. Evolution of net earnings per share (EPS) for the year compared to the previous year. Percentage of achievement of budgeted gross operating income (GOI) for the Group. Evolution of net income before tax (NIBT) for the year compared to the previous year. Yann Gérardin: CIB scope/Thierry Laborde: CPBS scope. Percentage of achievement of budgeted gross operating income (GOI). Yann Gérardin: CIB scope/Thierry Laborde: CPBS scope. Terms and conditions of payment The payment terms for variable compensation of BNP Paribas Group executive corporate officers in respect of 2024, in accordance with the provisions of the French Monetary and Financial Code and the EBA’s 2 July 2021 Guidelines on compensation policy are: 60% of annual variable compensation is deferred over five years, at the rate of one-fifth per year; half of the non-deferred portion of the variable compensation is paid in May 2025, subject to the approval of the Shareholders’ Annual General Meeting under the terms provided for by article L.22-10-34 II of the French Commercial Code; and half in March 2026, indexed to the performance of the BNP Paribas share since the award; the deferred portion of the variable compensation will be paid annually in fifths starting in 2026. Each payment will be made half in March every year, and half in March of the following year, indexed to the performance of the BNP Paribas share since the award. The last payment in respect of 2024 will therefore be made in March 2031. In addition, the annual payment of the deferred variable compensation is subject to the condition that the ROE after tax of the Group for the year preceding the payment is greater than 5%. The Board of directors noted that this performance condition was met in 2024; accordingly, deferred compensation payable in 2025 in respect of previous plans will be paid. Details relating to the conditional long-term incentive plan over five years (LTIP) LTIP amounts awarded in 2025 In accordance with the compensation policy and on the proposal of the Remuneration Committee, the Board of directors set the LTIP amounts awarded in 2025. The amount awarded under the LTIP is equal to the target annual variable compensation for 2024. LTIP awarded on 3 February 2025 (in euros) Awarded amount(1) Fair value of the awarded amount(2) Jean-Laurent Bonnafé 1,843,000 462,409 Yann Gérardin 1,800,000 451,620 Thierry Laborde 1,080,000 270,972 See explanations above. Fair value of the awarded amount in accordance with IFRS. The calculation is carried out by an independent expert. Relative proportion of fixed and variable compensation of executive corporate officers The cap on total variable compensation provided for by article L.511‑78 of the French Monetary and Financial Code was not exceeded. Pursuant to article L.511-79 of the French Monetary and Financial Code, a discount rate may in addition be applied to no more than 25% of total variable compensation inasmuch as the payment is made in the form of instruments after a deferred period of at least five years. After applying the discount rate to the variable compensation amounts awarded in the form of instruments deferred for five years (discount rate of 48.78% in accordance with European Banking Authority guidelines on the application of the notional discount rate for variable compensation, published on 27 March 2014), the ratio between total variable compensation and fixed compensation is 1.79 for the Chief Executive Officer Mr. Jean-Laurent Bonnafé, 1.80 and 1.75 respectively for Messrs Yann Gérardin and Thierry Laborde as Chief Operating Officers for 2024. Use of “malus” and “claw-back” clauses The Board of directors has not been called upon to apply the “malus” and “claw-back” clauses, provided for in the compensation policy defined above. Compensation paid or awarded by a company included in the consolidation scope No compensation has been paid or awarded to directors and corporate officers by a company included in the scope of consolidation of BNP Paribas within the meaning of article L.233-16 of the French Commercial Code. Components of compensation paid during 2024 or awarded in respect of the same year to corporate officers ➤Table No. 1: Components of compensation paid during 2024 or awarded IN RESPECT OF the same year to Mr. Jean LEMIERRE, Chairman of the Board of directors, submitted to the vote of the shareholders (amounts in euros) ➤a. Components of compensation awarded in respect of 2024 to Mr. Jean LEMIERRE, Chairman of the Board of directors Amounts Comments Fixed compensation 950,000 (paid) The compensation paid to Mr. Jean Lemierre is determined following the guidelines proposed by the Remuneration Committee and approved by the Board of directors. This fixed compensation has not changed since December 2014. Annual variable compensation None Mr. Jean Lemierre is not entitled to annual variable compensation. Conditional long-term incentive plan None Mr. Jean Lemierre does not benefit from a conditional long-term incentive plan. Compensation linked to the term of directorship 76,777 (paid) Mr. Jean Lemierre does not receive any compensation in respect of directorships that he holds in the Group’s companies other than BNP Paribas (SA). Extraordinary compensation None Stock options awarded during the period None Performance shares awarded during the year None Benefits in kind 5,951 Mr. Jean Lemierre has a company car. TOTAL 1,032,728 ➤b. Components of compensation paid to Mr. Jean LEMIERRE, Chairman of the Board of directors during 2024 in respect of previous years (having been subject to a shareholders’ vote at the time of their award) Amounts paid in 2024 None ➤c. Commitments of any kind corresponding to compensation components, indemnities or benefits in kind due or likely to be due as a result of the assumption, termination or change in functions or after performing these to the benefit of Mr. Jean LEMIERRE, Chairman of the Board of directors Amounts Comments Sign-on bonuses and severance payments None Mr. Jean Lemierre receives no sign-on bonus or severance payment. Supplementary defined-benefit pension plan None Mr. Jean Lemierre does not benefit from any supplementary defined-benefit pension plan. Supplementary defined-contribution pension plan 1,994 This amount corresponds to the contributions paid in 2024 under the defined-contribution pension plan (article 83 of the French General Tax Code) set up for all BNP Paribas (SA) employees. Welfare benefit and healthcare plans 4,368 This amount corresponds to the contributions paid in 2024 under (i) the disability, invalidity and death, and healthcare insurance plans offered to employees of BNP Paribas (SA) and (ii) the Garantie Vie Professionnelle Accidents system (death and disability insurance) covering all employees of BNP Paribas (SA). ➤Table No. 2: Components of compensation paid during 2024 or awarded IN RESPECT OF the same year to Mr. Jean-Laurent BONNAFÉ, Chief Executive Officer, submitted to the vote of the shareholders (amounts in euros) ➤a. Components of compensation awarded in respect of 2024 to Mr. Jean-Laurent BONNAFÉ, Chief Executive Officer Amounts Comments Fixed compensation 1,843,000 (paid) The compensation paid to Mr. Jean-Laurent Bonnafé is determined following the guidelines proposed by the Remuneration Committee and approved by the Board of directors. The last increase in the fixed compensation of Mr. Jean-Laurent Bonnafé, bringing it to EUR 1,843,000, dates from 7 February 2022, effective from 1 January 2022. Annual variable compensation(1) 1,936,624 The variable compensation of Mr. Jean-Laurent Bonnafé evolves depending on criteria representative of Group results and his managerial performance. It is expressed as a percentage of a target variable compensation corresponding to 100% of fixed compensation for the year. The quantitative criteria depend on indicators linked to the Group’s overall performance; they are as follows: evolution of net earnings per share for the year compared to the previous year (37.5% of the target variable compensation); percentage of achievement of the Group’s budgeted gross operating income (37.5% of the target variable compensation). CSR criteria also condition 15% of the target variable compensation. They correspond to the multi-criteria assessment of the actions taken by the Group with respect to social, societal and environmental issues. The qualitative criteria represents 10% of the target variable compensation. After taking into account quantitative, CSR and qualitative criteria, the Board of directors set the annual variable compensation of Mr. Jean-Laurent Bonnafé for 2024 at EUR 1,936,624: half of the non-deferred portion of the variable compensation will be paid in May 2025, and half in March 2026, indexed to the performance of the BNP Paribas share; the deferred portion of the variable compensation will be paid in fifths as of 2026. Each payment will be made half in March every year, and half in March of the following year, indexed to the performance of the BNP Paribas share. The last payment in respect of 2024 will therefore be made in March 2031; the annual payment of the deferred variable compensation is subject to the condition that the ROE after tax of the Group for the year preceding the payment is greater than 5%. The ratio between the annual fixed compensation and variable compensation, as required under the French Commercial Code, is 105.08%. Conditional long-term incentive plan (fully deferred for a period of five years) 462,409 The fair value of the LTIP awarded to Mr. Jean-Laurent Bonnafé on 3 February 2025 with respect to 2024 amounts to EUR 462,409. The term of the LTIP is five years. The two conditions of the LTIP, one recognising an increase in the intrinsic value of the BNP Paribas share and the other recognising its potential outperformance relative to its peers, are assigned equal weighting in order to measure their effects separately. Payments under the LTIP may not exceed 137.5% of their award value. Compensation linked to the term of directorship 76,777 Mr. Jean-Laurent Bonnafé receives compensation for his term of his directorship at BNP Paribas (SA). Extraordinary compensation None Stock options awarded during the period None Performance shares awarded during the year None Benefits in kind 6,267 Mr. Jean-Laurent Bonnafé has a company car. This amount also includes the employer contribution of EUR 1,360 paid by BNP Paribas (SA) for 2024 under the Executive Committee professional life insurance policy, offering an additional EUR 1.10 million in the event of death or total permanent disability. TOTAL 4,325,077 Payment subject to the approval of the Annual General Meeting of 13 May 2025 pursuant to article L.22-10-34 II of the French Commercial Code. ➤b. Components of compensation paid to Mr. Jean-Laurent BONNAFÉ, Chief Executive Officer, during 2024 in respect of previous years (having been subject to the shareholders’ vote at the time of their award) (In euros) Submission date to the AGM and resolution number Amounts paid in 2024 Annual variable remuneration 1,913,825 Including partial payment of the annual variable compensation in respect of 2023 14 May 2024 18th resolution 375,530 Including partial payment of the annual variable compensation in respect of 2022 16 May 2023 15th resolution 556,739 Including partial payment of the annual variable compensation in respect of 2021 17 May 2022 15th resolution 221,671 Including partial payment of the annual variable compensation in respect of 2020 18 May 2021 15th resolution 206,502 Including partial payment of the annual variable compensation in respect of 2019 19 May 2020 16th resolution 232,430 Including partial payment of the annual variable compensation in respect of 2018 23 May 2019 14th resolution 223,626 Including partial payment of the annual variable compensation in respect of 2017 24 May 2018 15th resolution 97,327 Conditional long-term incentive plan 23 May 2019 14th resolution 1,405,800 ➤c. Commitments of any kind corresponding to compensation components, indemnities or benefits in kind due or likely to be due as a result of the assumption, termination or change in functions or after performing these to the benefit of Mr. Jean-Laurent BONNAFÉ, Chief Executive Officer Amounts Comments Sign-on bonuses and severance payments None Mr. Jean-Laurent Bonnafé receives no sign-on bonus or severance payment. Non-compete indemnity None Conditions of the non-compete clause signed between the Chief Executive Officer and BNP Paribas (SA) are detailed on page 94 of the Universal registration document. Supplementary defined-benefit pension plan None Mr. Jean-Laurent Bonnafé does not benefit from any supplementary defined-benefit pension plan. Supplementary defined-contribution pension plan 1,994 This amount corresponds to the contributions paid in 2024 under the defined-contribution pension plan (article 83 of the French General Tax Code) set up for all BNP Paribas (SA) employees. Welfare benefit and healthcare plans 4,368 This amount corresponds to the contributions paid in 2024 under (i) the disability, invalidity and death and healthcare insurance plans offered to employees of BNP Paribas (SA) and (ii) the Garantie Vie Professionnelle Accidents system (death and disability insurance) covering all employees of BNP Paribas (SA). ➤Table No. 3: Components of compensation paid during 2024 or awarded in respect of THE SAME YEAR to Mr. Yann GÉRARDIN, Chief Operating Officer, submitted to the vote of the shareholders (amounts in euros) ➤a. Components of the compensation awarded in respect of 2024 to Mr. Yann GÉRARDIN, Chief Operating Officer Amounts Comments Fixed compensation 1,800,000 (paid) The compensation paid to Mr. Yann GÉRARDIN is determined following the guidelines proposed by the Remuneration Committee and approved by the Board of directors. The last increase in the fixed compensation of Mr. Yann GÉRARDIN, effective from 1 January 2024, was decided by the Board of directors and approved by Annual General Meeting of 14 May 2024. Annual variable compensation(1) 1,910,700 The variable compensation of Mr. Yann GÉRARDIN evolves depending on criteria representative of the Group’s results as well as the results of the CIB division and his managerial performance. It is expressed as a percentage of a target variable compensation corresponding to 100% of fixed compensation for the year. The quantitative criteria depend on the following performance indicators: evolution of net earnings per share for the year compared to the previous year (18.75% of the target variable compensation); percentage of achievement of the Group’s budgeted gross operating income (18.75% of the target variable compensation); evolution of net income before tax for the CIB scope for the year compared to the previous year (18.75% of the target variable compensation); percentage of achievement of the CIB scope’s gross operating income budget (18.75% of the target variable compensation). CSR criteria also condition 15% of the target variable compensation. They correspond to the multi-criteria assessment of the actions taken by the Group with respect to social, societal and environmental issues. The qualitative criteria represents 10% of the target variable compensation. After taking into account quantitative, CSR and qualitative criteria, the Board of directors set the annual variable compensation of Mr. Yann GÉRARDIN for 2024 at EUR 1,910,700: half of the non-deferred portion of the variable compensation will be paid in May 2025, and half in March 2026, indexed to the performance of the BNP Paribas share; the deferred portion of the variable compensation will be paid in fifths as of 2026. Each payment will be made half in March every year, and half in March of the following year, indexed to the performance of the BNP Paribas share. The last payment in respect of 2024 will therefore be made in March 2031; the annual payment of the deferred variable compensation is subject to the condition that the ROE after tax of the Group for the year preceding the payment is greater than 5%. The ratio between the annual fixed compensation and variable compensation, as required under the French Commercial Code, is 106.15%. Conditional long-term incentive plan (fully deferred for a period of five years) 451,620 The fair value of the LTIP awarded to Mr. Yann GÉRARDIN on 3 February 2025 with respect to 2024 amounts to EUR 451,620. The term of the LTIP is five years. The two conditions of the LTIP, one recognising an increase in the intrinsic value of the BNP Paribas share and the other recognising its potential outperformance relative to its peers, are assigned equal weighting in order to measure their effects separately. Payments under the LTIP may not exceed 137.5% of their award value. Compensation linked to the term of directorship None Mr. Yann GÉRARDIN does not hold a directorship in Group companies. Extraordinary compensation None Stock options awarded during the period None Performance shares awarded during the year None Benefits in kind 1,360 This amount corresponds to the annual employer contribution paid by BNP Paribas (SA) for 2024 under the Executive Committee professional life insurance policy, offering an additional EUR 1.10 million in the event of death or total permanent disability. TOTAL 4,163,680 Payment subject to the approval of the Annual General Meeting of 13 May 2025 pursuant to article L.22-10-34 II of the French Commercial Code. ➤b. Components of compensation paid to Mr. Yann GÉRARDIN, Chief Operating Officer, during 2024 in respect of previous years (having been subject to the shareholders’ vote at the time of their award) (In euros) Submission date to the AGM and resolution number Amounts paid in 2024 Annual variable remuneration 902,482 Including partial payment of the annual variable compensation in respect of 2023 14 May 2024 19th resolution 305,820 Including partial payment of the annual variable compensation in respect of 2022 16 May 2023 16th resolution 461,781 Including partial payment of the annual variable compensation in respect of 2021 17 May 2022 17th resolution 134,881 Conditional long-term incentive plan None None ➤c. Commitments of any kind corresponding to compensation components, indemnities or benefits due or likely to be due in respect of the assumption, termination or change of functions or after performing these to the benefit of Mr. Yann GÉRARDIN, Chief Operating Officer Amounts Comments Sign-on bonuses and severance payments None Mr. Yann GÉRARDIN receives no sign-on bonus or severance payment. Supplementary defined-benefit pension plan None Mr. Yann GÉRARDIN does not benefit from any supplementary defined-benefit pension plan. Supplementary defined-contribution pension plan 1,994 This amount corresponds to the contributions paid in 2024 under the defined-contribution pension plan (article 83 of the French General Tax Code) set up for all employees of BNP Paribas (SA). Welfare benefit and healthcare plans 4,368 This amount corresponds to the contributions paid in 2024 under (i) the disability, invalidity and death and healthcare insurance offered to employees of BNP Paribas (SA) and (ii) the Garantie Vie Professionnelle Accidents system (death and disability insurance) covering all employees of BNP Paribas (SA). ➤Table No. 4: Components of compensation paid during 2024 or awarded IN RESPECT OF the same year to Mr. Thierry LABORDE, Chief Operating Officer, submitted to the vote of the shareholders (amounts in euros) ➤a. Components of the compensation awarded in respect of 2024 to Mr. Thierry LABORDE, Chief Operating Officer Amounts Comments Fixed compensation 1,080,000 (paid) The compensation paid to Mr. Thierry LABORDE is determined following the guidelines proposed by the Remuneration Committee and approved by the Board of directors. The last increase in the fixed compensation of Mr. Thierry LABORDE, effective from 1 January 2024, was decided by the Board of directors and approved by Annual General Meeting of 14 May 2024. Annual variable compensation(1) 1,090,368 The variable compensation of Mr. Thierry LABORDE evolves depending on criteria representative of the Group’s results as well as the results of the CPBS division and his managerial performance. It is expressed as a percentage of a target variable compensation corresponding to 100% of fixed compensation for the year. The quantitative criteria depend on the following performance indicators: evolution of net earnings per share for the year compared to the previous year (18.75% of the target variable compensation); percentage of achievement of the Group’s budgeted gross operating income (18.75% of the target variable compensation); evolution of net income before tax of the CPBS scope for the year compared to the previous year (18.75% of the target variable compensation); percentage of achievement of the CPBS scope’s gross operating income budget (18.75% of the target variable compensation). CSR criteria also condition 15% of the target variable compensation. They correspond to the multi-criteria assessment of the actions taken by the Group with respect to social, societal and environmental issues. The qualitative criteria represents 10% of the target variable compensation. After taking into account quantitative, CSR and qualitative criteria, the Board of directors set the annual variable compensation of Mr. Thierry LABORDE for 2024 at EUR 1,090,368; half of the non-deferred portion of the variable compensation will be paid in May 2025, and half in March 2026, indexed to the performance of the BNP Paribas share; the deferred portion of the variable compensation will be paid in fifths as of 2026. Each payment will be made half in March every year, and half in March of the following year, indexed to the performance of the BNP Paribas share. The last payment in respect of 2024 will therefore be made in March 2031; the annual payment of the deferred variable compensation is subject to the condition that the ROE after tax of the Group for the year preceding the payment is greater than 5%. The ratio between the annual fixed compensation and variable compensation, as required under the French Commercial Code, is 100.96%. Conditional long-term incentive plan (fully deferred for a period of five years) 270,972 The fair value of the LTIP awarded to Mr. Thierry LABORDE on 3 February 2025 with respect to 2024 amounts to EUR 270,962. The term of the LTIP is five years. The two conditions of the LTIP, one recognising an increase in the intrinsic value of the BNP Paribas share and the other recognising its potential outperformance relative to its peers, are assigned equal weighting in order to measure their effects separately. Payments under the LTIP may not exceed 137.5% of their award value. Compensation linked to the term of directorship None Mr. Thierry LABORDE does not receive any compensation for the directorships he holds in the Group’s companies. Extraordinary compensation None Stock options awarded during the period None Performance shares awarded during the year None Benefits in kind 6,708 Mr. Thierry LABORDE has a company car. This amount also includes the employer contribution of EUR 1,360 paid by BNP Paribas (SA) for 2024 under the Executive Committee professional life insurance policy, offering an additional EUR 1.10 million in the event of death or total permanent disability. TOTAL 2,448,048 Payment subject to the approval of the Annual General Meeting of 13 May 2025 pursuant to article L.22-10-34 II of the French Commercial Code. ➤b. Components of the compensation paid to Mr. Thierry LABORDE, Chief Operating Officer, during 2024 in respect of previous years (having been subject to a shareholder vote at the time of their award) (In euros) Submission date to the AGM and resolution number Amounts paid in 2024 Annual variable remuneration 538,999 Including partial payment of the annual variable compensation in respect of 2023 14 May 2024 20th resolution 180,504 Including partial payment of the annual variable compensation in respect of 2022 16 May 2023 17th resolution 280,488 Including partial payment of the annual variable compensation in respect of 2021 17 May 2022 18th resolution 78,007 Conditional long-term incentive plan None None ➤c. Commitments of any kind corresponding to compensation components, indemnities or benefits due or likely to be due in respect of the assumption, termination or change of functions or after performing these to the benefit of Mr. Thierry LABORDE, Chief Operating Officer Amounts Comments Sign-on bonuses and severance payments None Mr. Thierry LABORDE does not receive any sign-on bonus or severance payment. Supplementary defined-benefit pension plan None Mr. Thierry LABORDE does not benefit from any supplementary defined-benefit pension plan. Supplementary defined-contribution pension plan 1,994 This amount corresponds to the contributions paid in 2024 under the defined-contribution pension plan (article 83 of the French General Tax Code) set up for all employees of BNP Paribas (SA). Welfare benefit and healthcare plans 4,368 This amount corresponds to the contributions paid in 2024 under (i) the disability, invalidity and death and healthcare insurance plans offered to employees of BNP Paribas (SA) and (ii) the Garantie Vie Professionnelle Accidents system (death and disability insurance) covering all employees of BNP Paribas (SA). Compensation multiples and evolutions In accordance with the provisions of article L.22-10-9 of the French Commercial Code and the Afep guidelines on compensation multiples updated in February 2021, the level of compensation due or awarded to the Chairman of the Board of directors, the Chief Executive Officer and the Chief Operating Officers, with respect to the average compensation and the median compensation based on full-time equivalent employees of BNP Paribas (SA), as well as evolutions of this compensation, these ratios and the Company’s performance criteria, are shown below. This information is provided over a five-year period. The employees considered are those of BNP Paribas (SA) in France and its branches, continuously present over the year. Compensation due or awarded to employees includes fixed compensation, variable compensation, commercial bonuses, loyalty plans, profit-sharing and incentive bonuses, as well as benefits in kind. The compensation due or awarded to corporate officers includes fixed compensation, variable compensation, fair value of the long-term incentive plan, directors’ compensation, as well as benefits in kind, information already presented in chapter 2 of this document for 2023 and 2024. All this compensation, due or awarded, is presented on a gross basis, excluding employer contributions. The table below shows the compensation multiples and their evolutions for each corporate officer. Year 2020 2021 2022(1) 2023(2) 2024 Performance of the Company Net pre-tax income (in millions of euros) 9,822 13,637 13,214 11,725 16,188 Evolution between N/N-1 -14% 39% 6% -11% 38% Operating income (in millions of euros) 8,364 12,199 12,564 11,236 15,437 Evolution between N/N-1 -17% 46% 13% -11% 37% Net earnings per share (in euros) 5.31 7.26 7.80 8.58 9.57 Evolution between N/N-1 -14% 37% 7% 10% 12% Compensation of employees Average compensation (in thousands of euros) 88 93 96 99 101 Evolution between N/N-1 2% 6% 3% 2% 2% Median compensation (in thousands of euros) 57 59 62 66 67 Evolution between N/N-1 2% 4% 5% 5% 3% Chairman of the Board of directors Compensation of the Chairman of the Board of directors (in thousands of euros) 1,013 1,020 1,018 1,020 1,033 Evolution between N/N-1 0% 1% 0% 0% 1% Average compensation of employees ratio 12 11 11 10 10 Evolution between N/N-1 -2% -5% -3% -2% -1% Median compensation of employees ratio 18 17 16 16 15 Evolution between N/N-1 -2% -3% -5% -5% -1% Chief Executive Officer Compensation of the Chief Executive Officer (in thousands of euros) 3,756 4,110 4,604 4,402 4,325 Evolution between N/N-1 -3% 9% 12% -4% -2% Average compensation of employees ratio 43 44 48 45 43 Evolution between N/N-1 -5% 3% 8% -7% -4% Median compensation of employees ratio 66 69 74 67 64 Evolution between N/N-1 -5% 6% 7% -9% -4% Yann Gérardin, Chief Operating Officer(3) Compensation of the Chief Operating Officer (in thousands of euros) 3,924 3,722 3,527 4,164 Evolution between N/N-1 -5% -5% 18% Average compensation of employees ratio 42 39 36 41 Evolution between N/N-1 -8% -7% 15% Median compensation of employees ratio 66 60 54 62 Evolution between N/N-1 -10% -10% 15% Thierry Laborde, Chief Operating Officer(3) Compensation of the Chief Operating Officer (in thousands of euros) 2,323 2,251 2,107 2,448 Evolution between N/N-1 -3% -6% 16% Average compensation of employees ratio 25 23 21 24 Evolution between N/N-1 -6% -9% 14% Median compensation of employees ratio 39 36 32 36 Evolution between N/N-1 -8% -11% 13% 2022 results had been recomposed to take into account the enforcement of IFRS 5 and IFRS 17 accounting standards, in order to be comparable with 2023 results. 2023 results are on an accounting basis. The terms of offices of Messrs Yann Gérardin and Thierry Laborde as Chief Operating Officers began on 18 May 2021. Their compensation for 2021 has been annualised for comparability purposes. Application of the provisions of the second paragraph of article L.225-45 of the French Commercial Code The provisions of the second paragraph of article L.225-45 of the French Commercial Code do not need to be applied in 2024. Other information on the compensation of corporate officers paid or awarded in respect of 2024, not submitted to the shareholders’ vote The components below, relating to the compensation of corporate officers, reiterate some information already presented in this chapter. ➤Total compensation awarded in respect of 2024 and comparison with 2023 (In euros) Jean-Laurent Bonnafé Yann Gérardin Thierry Laborde 2023 2024 2023 2024 2023 2024 Fixed compensation amount 1,843,000 1,843,000 1,500,000 1,800,000 900,000 1,080,000 Annual variable compensation awarded 1,877,648 1,936,624 1,529,100 1,910,700 902,520 1,090,368 Sub-total 3,720,648 3,779,624 3,029,100 3,710,700 1,802,520 2,170,368 LTIP amount (fair value)(1) 610,217 462,409 496,650 451,620 297,990 270,972 Total 4,330,865 4,242,033 3,525,750 4,162,320 2,100,510 2,441,340 This is an estimated value at the award date. The final amount will be known at the date of payment. Share ownership The Board of directors has decided that the minimum number of shares that Messrs Jean Lemierre, Jean-Laurent Bonnafé, Yann Gérardin and Thierry Laborde shall be required to hold for the duration of their terms of office shall be 10,000, 80,000, 30,000 and 20,000 shares respectively. The four interested parties have complied with this obligation, through the direct ownership of shares or units in the Company Savings Plan fully invested in BNP Paribas shares. Quantitative information on the compensation of corporate officers The table after shows the gross compensation awarded in respect of the year, including compensation linked to a term of directorship and benefits in kind, for each corporate officer. ➤Summary table of the compensation awarded to each corporate officer (In euros) 2023 2024 Awarded amounts Awarded amounts Jean Lemierre Chairman of the Board of directors Fixed compensation 950,000 950,000 Annual variable compensation None None Conditional long-term incentive plan None None Value of stock options awarded during the year None None Value of performance shares awarded during the year None None Sub-total 950,000 950,000 Extraordinary compensation None None Compensation linked to the term of directorship 64,758 76,777 Benefits in kind(1) 5,023 5,951 Total 1,019,781 1,032,728 Jean-Laurent Bonnafé Chief Executive Officer Fixed compensation 1,843,000 1,843,000 Annual variable compensation 1,877,648 1,936,624 Conditional long-term incentive plan(2) 610,217 462,409 Value of stock options awarded during the year None None Value of performance shares awarded during the year None None Sub-total 4,330,865 4,242,033 Extraordinary compensation None None Compensation linked to the term of directorship 64,758 76,777 Benefits in kind(1) 6,267 6,267 Total 4,401,890 4,325,077 Yann Gérardin Chief Operating Officer Fixed compensation 1,500,000 1,800,000 Annual variable compensation 1,529,100 1,910,700 Conditional long-term incentive plan(2) 496,650 451,620 Value of stock options awarded during the year None None Value of performance shares awarded during the year None None Sub-total 3,525,750 4,162,320 Extraordinary compensation None None Compensation linked to the term of directorship None None Benefits in kind(1) 1,360 1,360 Total 3,527,110 4,163,680 Thierry Laborde Chief Operating Officer Fixed compensation 900,000 1,080,000 Annual variable compensation 902,520 1,090,368 Conditional long-term incentive plan(2) 297,990 270,972 Value of stock options awarded during the year None None Value of performance shares awarded during the year None None Sub-total 2,100,510 2,441,340 Extraordinary compensation None None Compensation linked to the term of directorship None None Benefits in kind(1) 6,708 6,708 Total 2,107,218 2,448,048 The Chairman of the Board of directors, the Chief Executive Officer and the Chief Operating Officers, if applicable, have a company car. The Chief Executive Officer and Chief Operating Officers benefit from the Executive Committee professional life insurance, for which the Company’s contribution is recognised as a benefit in kind. Value of amount awarded subject to performance conditions. The tables below show the gross compensation paid in 2024, including compensation linked to directorships and benefits in kind, for each corporate officer. ➤Summary table of compensation paid as corporate officer (In euros) 2023 2024 Paid amounts Paid amounts Jean Lemierre Chairman of the Board of directors Fixed compensation 950,000 950,000 Annual variable compensation None None Conditional long-term incentive plan None None Extraordinary compensation None None Compensation linked to the term of directorship 64,758 76,777 Benefits in kind(1) 5,023 5,951 Total 1,019,781 1,032,728 Jean-Laurent Bonnafé Chief Executive Officer Fixed compensation 1,843,000 1,843,000 Annual variable compensation 1,775,057 1,913,825 of which annual variable compensation in respect of 2023 None 375,530 of which annual variable compensation in respect of 2022 386,293 556,739 of which annual variable compensation in respect of 2021 461,683 221,671 of which annual variable compensation in respect of 2020 198,511 206,502 of which annual variable compensation in respect of 2019 223,218 232,430 of which annual variable compensation in respect of 2018 214,434 223,626 of which annual variable compensation in respect of 2017 185,320 97,327 of which annual variable compensation in respect of 2016 105,598 None Conditional long-term incentive plan 781,000(2) 1,405,800(2) Extraordinary compensation None None Compensation linked to the term of directorship 64,758 76,777 Benefits in kind(1) 6,267 6,267 Total 4,470,082 5,245,669 Yann Gérardin Chief Operating Officer Fixed compensation 1,500,000 1,800,000 Annual variable compensation 601,354 902,482 of which annual variable compensation in respect of 2023 None 305,820 of which annual variable compensation in respect of 2022 320,400 461,781 of which annual variable compensation in respect of 2021 280,954 134,881 Conditional long-term incentive plan None None Extraordinary compensation None None Compensation linked to the term of directorship None None Benefits in kind(1) 1,360 1,360 Total 2,102,714 2,703,842 See footnote on the following page. See footnote on the following page. Thierry Laborde Chief Operating Officer Fixed compensation 900,000 1,080,000 Annual variable compensation 357,137 538,999 of which annual variable compensation in respect of 2023 None 180,504 of which annual variable compensation in respect of 2022 194,616 280,488 of which annual variable compensation in respect of 2021 162,521 78,007 Conditional long-term incentive plan None None Extraordinary compensation None None Compensation linked to the term of directorship None None Benefits in kind(1) 6,708 6,708 Total 1,263,845 1,625,707 The average tax and social contribution rate on this compensation is 33.5% in 2024 (compared to 34% for 2023). The Chairman of the Board of directors, the Chief Executive Officer and the Chief Operating Officers, if applicable, have a company car. The Chief Executive Officer and Chief Operating Officers benefit from the Executive Committee professional life insurance, for which the Company’s contribution is recognised as a benefit in kind. The application of the performance conditions attached to the LTIP awarded in 2019 led to a payment in 2024 corresponding to 90% of the amount awarded to Mr. Bonnafé. As a reminder, the application of the performance conditions attached to the LTIP awarded in 2018 led to a payment in 2023 corresponding to 50% of the amount awarded to Mr. Bonnafé. ➤Summary table of compensation paid during their terms of office, in respect of their previous activities as employees of the Group (In euros) 2023 2024 Paid amounts Paid amounts Yann Gérardin Chief Operating Officer Fixed compensation None None Annual variable compensation(1) 1,208,802 930,044 of which annual variable compensation in respect of 2021 103,350 107,175 of which annual variable compensation in respect of 2020 242,426 251,882 of which annual variable compensation in respect of 2019 234,332 243,701 of which annual variable compensation in respect of 2018 314,114 327,286 of which annual variable compensation in respect of 2017 314,580 None Long-term compensation 319,200 473,536 Extraordinary compensation None None Compensation linked to the term of directorship None None Benefits in kind None None Total 1,528,002 1,403,580 See footnote on the following page. Thierry Laborde Chief Operating Officer Fixed compensation None None Annual variable compensation(1) 212,074 196,186 of which annual variable compensation in respect of 2021 35,751 37,074 of which annual variable compensation in respect of 2020 62,052 64,471 of which annual variable compensation in respect of 2019 46,704 48,571 of which annual variable compensation in respect of 2018 44,233 46,070 of which annual variable compensation in respect of 2017 23,334 None Long-term compensation 446,880 473,536 Extraordinary compensation None None Compensation linked to the term of directorship None None Benefits in kind None None Total 658,954 669,722 The amounts shown here correspond to the deferred variable compensation awarded in respect of the previous salaried activities of the corporate officers, prior to their term of office. The average tax and social contribution rate on this compensation is 33.5% in 2024 (compared to 34% in 2023). ➤STOCK subscription or purchase options AWARDED during the year to each corporate officer by the Issuer and by any Group company No stock subscription or purchase options were awarded during the year to the corporate officers by the Company or by any other Group company. ➤Stock subscription or purchase options exercised during the year by each corporate officer No stock subscription or purchase options were exercised during the year by the corporate officers. ➤Performance shares awarded during the year to each corporate officer by the Issuer and by ANY GROUP company No performance share was awarded during the year to corporate officers by the Company or any company in the Group. ➤Performance shares that became available during the year for each corporate officer No performance share became available during the year for the corporate officers. ➤History of stock subscription or purchase options None. ➤History of performance share awards None. ➤Assumptions used to value the conditional long-term incentive plan awarded in 2025 in respect of 2024 in accordance with the method adopted for the consolidated financial statements Valuation at award date Reminder LTIP with respect to 2023 LTIP with respect to 2024 Award date of the plan 31/01/2024 03/02/2025 Opening price of BNP Paribas share EUR 62.45 EUR 64.18 Opening level of the EURO STOXX Banks index 121.66 159.54 Zero-coupon rate Euribor Euribor Volatility of the BNP Paribas share 23.42% 22.98% Volatility of the EURO STOXX Banks index 21.66% 21.16% Correlation between the BNP Paribas share and the EURO STOXX Banks index 93.00% 89.04% Financial model used Monte-Carlo Monte-Carlo Fair value of the plan at award date(1) 33.11% 25.09% As a percentage of the awarded amount. ➤Assumptions used to value(1) at award date and at 31 December 2024 the conditional long-term incentive plan awarded in respect of previous exercices Initial value of the share at award date(2) Fair value at award date(3) Valuation at closing date 31/12/2023 Valuation at closing date 31/12/2024 Closing price of BNP Paribas share EUR 62.59 EUR 59.22 Closing level of the EURO STOXX Banks index 118.38 146.04 Zero-coupon rate Euribor Euribor Volatility of the BNP Paribas share 23.77% 22.96% Volatility of the EURO STOXX Banks index 22.32% 21.32% Correlation between the BNP Paribas share and the EURO STOXX Banks index 93.31% 89.09% Financial model used Monte-Carlo Monte-Carlo Fair value of the plan awarded on 4 February 2020 EUR 45.27 39.56% 88.25% 64.82% Fair value of the plan awarded on 4 February 2021 EUR 36.83 41.59% 72.78% 67.79% Fair value of the plan awarded on 7 February 2022 EUR 55.13 43.58% 34.85% 19.49% Fair value of the plan awarded on 6 February 2023 EUR 50.98 41.22% 41.32% 26.91% Fair value of the plan awarded on 31 January 2024 EUR 58.79 33.11% 19.18% Valuation with the method adopted for the consolidated financial statements. The initial value is the average of the opening price of the BNP Paribas share for the rolling twelve-month period preceding the award date. As a percentage of the awarded amount. ➤Valuation(1) of the conditional long-term incentive plan at the award date and at 31 December 2024 Award date of the plan 04/02/2020 04/02/2021 07/02/2022 06/02/2023 31/01/2024 03/02/2025 Maturity date of the plan 04/02/2025 04/02/2026 07/02/2027 06/02/2028 31/01/2029 03/02/2030 Valuation(1) At award date At 31/12/2024 At award date At 31/12/2024 At award date At 31/12/2024 At award date At 31/12/2024 At award date At 31/12/2024 At award date Jean Lemierre - - - - - - - - - - - Jean-Laurent Bonnafé 617,927 1,012,432 649,636 1,058,803 680,720 304,499 759,685 496,024 610,217 353,427 462,409 Yann Gérardin - - - - 404,169 180,793 618,300 403,709 496,650 287,651 451,620 Thierry Laborde - - - - 242,502 108,476 370,980 242,226 297,990 172,591 270,972 Total 617,927 1,012,432 649,636 1,058,803 1,327,391 593,767 1,748,965 1,141,959 1,404,857 813,669 1,185,001 Valuation according to the method adopted for the consolidated financial statements. ➤Detailed contractual situation of the Group’s corporate officers Corporate officers in 2024 Employment contract Supplementary pension plan Payments or benefits due or likely to become due upon termination or change in functions Non-compete indemnity Yes No Yes No Yes No Yes No Jean Lemierre Chairman of the Board of directors ✓(1) ✓(2) ✓ ✓ Jean-Laurent Bonnafé Chief Executive Officer ✓(3) ✓(2) ✓ ✓(4) Yann Gérardin Chief Operating Officer ✓(5) ✓(2) ✓ ✓ Thierry Laborde Chief Operating Officer ✓(5) ✓(2) ✓ ✓ Waiver of employment contract with effect from 1 December 2014 in accordance with Afep-MEDEF Code. Messrs Jean Lemierre, Jean-Laurent Bonnafé, Yann Gérardin and Thierry Laborde benefit exclusively from the pension plan set up for all BNP Paribas (SA) employees (article 83 of the French General Tax Code). Waiver of employment contract with effect from 1 July 2012. See section regarding the Non-compete agreement. Employment contract suspended. Summary of transactions reported on BNP Paribas stock The following table lists the transactions indicated in article L.621-18-2 of the French Monetary and Financial Code on the Company’s securities, covered by articles 223-22 A to 223-26 of the General regulation of the AMF, carried out in 2024 by the directors and corporate officers and which must be disclosed pursuant to the AMF regulations. First name and surname Quality Transactions carried out Type of financial instrument Nature of the transaction Number of transactions Amount of transactions (in euros) Jean-Laurent Bonnafé Chief Executive Officer On a personal basis BNP Paribas shares Purchase 1 138,948 Yann Gérardin Chief Operating Officer On a personal basis BNP Paribas shares Purchase 1 141,391 Thierry Laborde Chief Operating Officer On a personal basis BNP Paribas shares Purchase 2 12,296 Jean Lemierre Chairman On a personal basis BNP Paribas shares Purchase 3 353,931 Marie-Christine LOMBARD Director On a personal basis BNP Paribas shares Purchase 1 64,460 Annemarie STRAATHOF Director On a personal basis BNP Paribas shares Purchase 2 65,455 2.1.4Other information 1Information on stock subscription or purchase options and on performance shares The Company did not grant any instruments to employees who are not directors or corporate officers in 2024. No instruments were transferred or exercised in 2024 for the benefit of employees who are not directors or corporate officers. 2Table of delegations Resolutions adopted at Shareholders’ Annual General Meetings valid for 2024 The following delegations to increase or reduce the share capital have been granted to the Board of directors under resolutions approved by Shareholders’ Annual General Meetings and were valid during 2024: Resolutions adopted at Shareholders’ General Meetings Use of authorisation in 2024 Shareholders’ Combined General Meeting of 17 May 2022 (21st resolution) Capital increase, with preferential subscription rights maintained, through the issue of ordinary shares and securities (valeurs mobilières) giving access immediately or in the future to shares to be issued. The nominal amount of capital increases that may be carried out, immediately and/or in the future, by virtue of this delegation, may not exceed EUR 985 million (i.e. 492,500,000 shares). This authorisation was granted for a period of 26 months and replaces that granted by the 19th resolution of the Shareholders’ Combined General Meeting of 19 May 2020. This resolution was not used during the period Shareholders’ Combined General Meeting of 17 May 2022 (22nd resolution) Capital increase, without preferential subscription rights, by issue of ordinary shares and securities (valeurs mobilières) giving access immediately or in the future to shares to be issued. The nominal amount of capital increases that may be carried out, immediately and/or in the future, by virtue of this authorisation, may not exceed EUR 240 million (i.e. 120 million shares). This authorisation was granted for a period of 26 months and replaces that granted by the 20th resolution of the Shareholders’ Combined General Meeting of 19 May 2020. This resolution was not used during the period Shareholders’ Combined General Meeting of 17 May 2022 (23rd resolution) Capital increase, with cancellation of preferential subscription rights, through the issue of ordinary shares and securities (valeurs mobilières) giving access, immediately or in the future, to shares to be issued intended to remunerate contributions of securities up to a limit of 10% of the share capital. The nominal amount of capital increases that may be carried out in one or more times by virtue of this authorisation, may not exceed 10% of the share capital of BNP Paribas as at the date of the decision of the Board of directors. This delegation was given for a period of 26 months and replaces that granted by the 21st resolution of the Shareholders’ Combined General Meeting of 19 May 2020. This resolution was not used during the period Shareholders’ Combined General Meeting of 17 May 2022 (24th resolution) Overall limit on authorisations to issue shares with cancellation or without preferential subscription rights for existing shareholders. The maximum nominal amount of capital increases with cancellation or without preferential subscription rights for existing shareholders carried out immediately and/or in the future may not exceed EUR 240 million as part of authorisations by virtue of the 22nd and 23rd resolutions of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 17 May 2022 (25th resolution) Capital increase by capitalising reserves, retained earnings, additional paid-in capital or contribution premium. Authorisation was given to increase the share capital up to a maximum amount of EUR 985 million in one or more times, by capitalising all or part of the reserves, profits or additional paid-in capital, merger or contribution premiums, successively or simultaneously, through the issuance and award of free shares, through an increase in the par value of existing shares, or through a combination of these two methods. This authorisation was granted for a period of 26 months and replaces that granted by the 23rd resolution of the Shareholders’ Combined General Meeting of 19 May 2020. This resolution was not used during the period Shareholders’ Combined General Meeting of 17 May 2022 (26th resolution) Overall limit on authorisations to issue shares with, with cancellation or without preferential subscription rights for existing shareholders The maximum nominal amount of capital increases with, with cancellation or without preferential subscription rights for existing shareholders carried out immediately and/or in the future may not exceed EUR 985 million as part of authorisations by virtue of the 21st to 23rd resolutions of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 17 May 2022 (27th resolution) Authorisation granted to the Board of directors to carry out transactions reserved for members of the BNP Paribas Group Company Savings Plan, with cancellation of preferential subscription rights, which may take the form of capital increases and/or disposals of reserved titles. Authorisation was given to increase the share capital within the limit of a maximum nominal amount of EUR 46 million in one or more times by issuing ordinary shares (with cancellation of preferential subscription rights for existing shareholders), reserved for members of the BNP Paribas Group’s Company Savings Plan, or by selling of shares. This authorisation was granted for a period of 26 months and replaces that granted by the 25th resolution of the Shareholders’ Combined General Meeting of 19 May 2020. This resolution was not used during the period Shareholders’ Combined General Meeting of 16 May 2023 (5th resolution) Authorisation given to the Board of directors to set up a share buyback programme by the Company up to a maximum of 10% of the shares comprising the share capital. Said acquisitions of shares, at a price not exceeding EUR 89 per share (previously EUR 88), would be intended to fulfil several objectives: cancelling shares in accordance with conditions set by the Shareholders’ Combined General Meeting of 16 May 2023 (21st resolution); fulfilling obligations arising from the issue of securities giving access to capital, stock option programmes, the award of free shares, the award or assignment of shares to employees in connection with the employee profit-sharing scheme or Company Savings Plans, and all forms of share grants to employees and/or directors and corporate officers of BNP Paribas and the companies controlled exclusively by BNP Paribas as defined in article L.233-16 of the French Commercial Code; holding and subsequently remitting them in exchange or payment for external growth transactions, mergers, spin-offs or asset contributions; under a market-making agreement in accordance with Decision No. 2021-01 of 22 June 2021 of the French Financial Markets Authority (Autorité des Marchés Financiers – AMF); carrying out investment services for which BNP Paribas is authorised or to hedge them. This authorisation was granted for a period of 18 months and replaces that granted by the 5th resolution of the Shareholders’ Combined General Meeting of 17 May 2022. As part of the share buyback programme authorised by the Board of directors on 31 January 2024, 16,666,738 shares were repurchased from 4 March 2024 to 23 April 2024, by virtue of this delegation, representing 1.45% of the share capital Shareholders’ Combined General Meeting of 16 May 2023 (19th resolution) In the context of an offer referred to in article L.411-2 1° of the French Monetary and Financial Code, authorisation granted to the Board of directors to increase the share capital with cancellation of preferential subscription rights, through the issue of super subordinated convertible contingent bonds that would be converted into ordinary shares of BNP Paribas to be issued, up to a limit of 10% of the share capital, only in the event that the Common Equity Tier One ratio (“CET1”) becomes equal to or falls below a threshold of 5.125%. The Board of directors is authorised to increase the share capital in one or more times, with cancellation of preferential subscription rights, by offering securities to a restricted circle of investors and/or qualified investors, as part of issues of super‑subordinated bonds convertible into ordinary shares of BNP Paribas in the event that the Group’s Common Equity Tier One (CET 1) ratio becomes equal to or falls below the threshold of 5.125% or any other threshold allowing classification as additional Tier 1 capital instruments (the “AT1 Bonds”). These AT1 Bonds will be denominated in USD, it being recalled that the ordinary shares are denominated in euros. The maximum nominal amount of capital increases that may be carried out, in one or more times, by virtue of this delegation, is set at EUR 240 million, and may not exceed 10% of the share capital of BNP Paribas per year as at the date of the issue decision. This delegation was granted for a period of 14 months. Pursuant to the authorisation to the Board of directors of 16 May 2023, issue on 14 February 2024 of AT1 Bonds (super‑subordinated convertible contingent bonds) for a nominal amount of USD 1.5 billion, which may give rise in the event of conversion to a capital increase equal to a maximum of EUR 73,342,200, subject to any adjustments Shareholders’ Combined General Meeting of 16 May 2023 (20th resolution) Authorisation granted to the Board of directors to carry out transactions reserved for members of the BNP Paribas Group Company Savings Plan, with cancellation of preferential subscription rights, which may take the form of capital increases and/or disposals of reserved titles. Authorisation is given to increase, in one or more times, the share capital by a maximum nominal amount of EUR 46 million, through the issue of ordinary shares or securities (valeurs mobilières) governed by article L.228-92 paragraph 1 of the French Commercial Code giving access to the share capital of BNP Paribas reserved for members of the BNP Paribas Group Company Savings Plan or by disposal of shares. This authorisation was granted for a period of 26 months and replaces that granted by the 27th resolution of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 16 May 2023 (21st resolution) Authorisation granted to the Board of directors to reduce the share capital by cancelling shares. Authorisation is given to cancel, in one or more times, through reduction of the share capital, all or some of the shares that BNP Paribas holds and that it could hold, up to a maximum of 10% of the total number of shares constituting the share capital existing as at the date of the transaction, for a period of 24 months. Delegation of all powers to carry out this reduction in share capital, and allocate the difference between the purchase price of the cancelled shares and their nominal value to share premium and retained earnings, including the legal reserve up to 10% of the share capital cancelled. This authorisation was granted for a period of 18 months and replaces that granted by the 28th resolution of the Shareholders’ Combined General Meeting of 17 May 2022. Cancellation of 16,666,738 shares with a par value of EUR 2 on 6 May 2024 representing 1.45% of the share capital Shareholders’ Combined General Meeting of 14 May 2024 (5th resolution) Authorisation given to the Board of directors to set up a share buyback programme by the Company up to a maximum of 10% of the shares comprising the share capital. Said acquisitions of shares, at a price not exceeding EUR 96 per share (previously EUR 89), would be intended to fulfil several objectives: cancelling shares in accordance with conditions set by the Shareholders’ Combined General Meeting of 14 May 2024 (32nd resolution); fulfilling obligations arising from the issue of securities giving access to capital, stock option programmes, the award of free shares, the award or assignment of shares to employees in connection with the employee profit-sharing scheme or Company Savings Plans, and all forms of share grants to employees and/or directors and corporate officers of BNP Paribas and the companies controlled exclusively by BNP Paribas as defined in article L.233-16 of the French Commercial Code; holding and subsequently remitting them in exchange or payment for external growth transactions, mergers, spin-offs or asset contributions; under a market-making agreement in accordance with Decision No. 2021-01 of 22 June 2021 of the French Financial Markets Authority (Autorité des Marchés Financiers – AMF); carrying out investment services for which BNP Paribas is authorised or to hedge them. This authorisation was granted for a period of 18 months and replaces that granted by the 5th resolution of the Shareholders’ Combined General Meeting of 16 May 2023. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (24th resolution) Capital increase, with preferential subscription rights maintained, through the issue of ordinary shares and securities (valeurs mobilières) giving access immediately or in the future to shares to be issued. The nominal amount of capital increases that may be carried out, immediately and/or in the future, by virtue of this authorisation, may not exceed EUR 915 million (i.e. 457,500,000 shares). This authorisation was granted for a period of 26 months and replaces that granted by the 21st resolution of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (25th resolution) Capital increase, without preferential subscription rights, by issue of ordinary shares and securities (valeurs mobilières) giving access immediately or in the future to shares to be issued. The nominal amount of capital increases that may be carried out, immediately and/or in the future, by virtue of this authorisation, may not exceed EUR 225 million (i.e. 112,500,000 shares). This authorisation was granted for a period of 26 months and replaces that granted by the 22nd resolution of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (26th resolution) Capital increase, with cancellation of preferential subscription rights, through the issue of ordinary shares and securities (valeurs mobilières) giving access, immediately or in the future, to shares to be issued intended to remunerate contributions of securities up to a limit of 10% of the share capital. The nominal amount of capital increases that may be carried out in one or more times by virtue of this authorisation, may not exceed 10% of the share capital of BNP Paribas as at the date of the decision of the Board of directors. This delegation was granted for a period of 26 months and replaces that granted by the 23rd resolution of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (27th resolution) Overall limit on authorisations to issue shares with cancellation or without preferential subscription rights for existing shareholders. The maximum nominal amount of capital increases with cancellation or without preferential subscription rights for existing shareholders carried out immediately and/or in the future may not exceed EUR 225 million as part of authorisations by virtue of the 25th and 26th resolutions of the Shareholders’ Combined General Meeting of 14 May 2024. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (28th resolution) Capital increase by capitalising reserves, retained earnings, additional paid-in capital or contribution premium. Authorisation was given to increase the share capital up to a maximum amount of EUR 915 million in one or more times, by capitalising all or part of the reserves, profits or additional paid-in capital, merger or contribution premiums, successively or simultaneously, through the issuance and award of free shares, through an increase in the par value of existing shares, or through a combination of these two methods. This authorisation was granted for a period of 26 months and replaces that granted by the 25th resolution of the Shareholders’ Combined General Meeting of 17 May 2022. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (29th resolution) Overall limit on authorisations to issue shares with, with cancellation or without preferential subscription rights for existing shareholders The maximum nominal amount of capital increases with, with cancellation or without preferential subscription rights for existing shareholders carried out immediately and/or in the future may not exceed EUR 915 million as part of authorisations by virtue of the 24th to 26th resolutions of the Shareholders’ Combined General Meeting of 14 May 2024. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (30th resolution) Authorisation granted to the Board of directors to carry out transactions reserved for members of the BNP Paribas Group Company Savings Plan, with cancellation of preferential subscription rights, which may take the form of capital increases and/or disposals of reserved titles. Authorisation is given to increase, in one or more times, the share capital by a maximum nominal amount of EUR 45 million, through the issue of ordinary shares or share equivalents (valeurs mobilières) governed by article L.228-92 paragraph 1 of the French Commercial Code giving access to the share capital of BNP Paribas reserved for members of the BNP Paribas Group Company Savings Plan or by disposal of shares. This authorisation was granted for a period of 26 months and replaces that granted by the 20th resolution of the Shareholders’ Combined General Meeting of 16 May 2023. This resolution was not used during the period Shareholders’ Combined General Meeting of 14 May 2024 (31st resolution) In the context of an offer referred to in article L.411-2 1° of the French Monetary and Financial Code, authorisation granted to the Board of directors to increase the share capital with cancellation of preferential subscription rights, through the issue of super‑subordinated convertible contingent bonds that would be converted into ordinary shares of BNP Paribas to be issued, up to a limit of 10% of the share capital, only in the event that the Common Equity Tier One ratio (“CET1”) becomes equal to or falls below a threshold of 5.125%. The Board of directors is authorised to increase the share capital in one or more times, with cancellation of preferential subscription rights, by offering securities to a restricted circle of investors and/or qualified investors, as part of issues of super‑subordinated bonds convertible into ordinary shares of BNP Paribas in the event that the Group’s Common Equity Tier One (CET 1) ratio becomes equal to or falls below the threshold of 5.125% or any other threshold allowing classification as additional Tier 1 capital instruments (the “AT1 Bonds”). These AT1 Bonds will be denominated in USD, it being recalled that the ordinary shares are denominated in euros. The maximum nominal amount of capital increases that may be carried out, in one or more times, by virtue of this delegation, is set at EUR 225 million, and may not exceed 10% of the share capital of BNP Paribas per year as at the date of the issue decision. This delegation was granted for a period of 14 months and cancels, for the unused amount, any previous delegation with the same purpose. Pursuant to the authorisation to the Board of directors of 14 May 2024, issue on 3 September 2024 of AT1 Bonds (super subordinated convertible contingent bonds) for a nominal amount of USD 1 billion, which may give rise in the event of conversion to a capital increase equal to a maximum of EUR 41,542,800, subject to any adjustments Shareholders’ Combined General Meeting of 14 May 2024 (32nd resolution) Authorisation granted to the Board of directors to reduce the share capital by cancelling shares. Authorisation is given to cancel, in one or more times, through reduction of the share capital, all or some of the shares that BNP Paribas holds and that it could hold, up to a maximum of 10% of the total number of shares constituting the share capital existing as at the date of the transaction, for a period of 24 months. Delegation of all powers to carry out this reduction in share capital, and allocate the difference between the purchase price of the cancelled shares and their nominal value to share premium and retained earnings, including the legal reserve up to 10% of the share capital cancelled. This authorisation was granted for a period of 18 months and replaces that granted by the 21st resolution of the Shareholders’ Combined General Meeting of 16 May 2023. This resolution was not used during the period 3Items likely to have an impact in the event of a public tender or exchange offer (Article L.22-10-11 of the French Commercial Code) Among the items referred to in article L.22-10-11 of the French Commercial Code, there is no item likely to have an impact in the event of a public tender or exchange offer. 2.2Statutory Auditors’ report The comments required by article L.22-10-71 of the French Commercial Code are covered in the Statutory Auditor’s report on the parent company financial statements (chapter 6.5). 2.3The Executive Committee At 31 December 2024, the BNP Paribas Executive Committee had the following members: Jean-Laurent Bonnafé, Director and Chief Executive Officer; Yann Gérardin, Chief Operating Officer in charge of the Corporate & Institutional Banking division; Thierry Laborde, Chief Operating Officer in charge of the Commercial, Personal Banking & Services division; Laurent David, Deputy Chief Operating Officer; Renaud Dumora, Deputy Chief Operating Officer in charge of the Investment & Protection Services division; Michael Anseeuw, Director and Chief Executive Officer and Chairman of the Executive Board of BNP Paribas Fortis; Charlotte Dennery, Director and Chief Executive Officer of BNP Paribas Personal Finance; Bernard Gavgani, Chief Information Officer; Elena Goitini, Chief Executive Officer of BNL; Elise Hermant, Head of Communications; Yannick Jung, Head of Corporate & Institutional Banking Global Banking; Pauline Leclerc-Glorieux, Chief Executive Officer of BNP Paribas Cardif; Isabelle Loc, Head of Commercial & Personal Banking in France; Stéphanie Maarek, Head of Compliance; Lars Machenil, Chief Financial Officer; Sofia Merlo, Head of Human Resources; Olivier Osty, Head of Corporate & Institutional Banking Global Markets; Anne Pointet, Head of Company Engagement; Frank Roncey, Chief Risk Officer. The BNP Paribas Executive Committee has had a permanent Secretariat since November 2007. 2.4Internal control sustainability statements The following information relating to internal control was submitted to the Group’s Executive Management. The Chief Executive Officer, as executive director, is responsible for the organisation and procedures of internal control and for all information required by French law regarding the internal control report. This document is based on the information provided by the Compliance, RISK, Finance & Strategy, LEGAL and Inspection Générale Functions. It has been approved by the Board of directors. BNP Paribas’ internal control standards The principles and procedures for the internal control of banking activities in France and abroad are at the heart of banking and financial regulations and are subject to numerous legislative and regulatory provisions. The main text applicable to BNP Paribas is the ministerial Order of 3 November 2014 on the internal control of companies in the banking, payment services and investment services sector subject to the control of the ACPR. This text defines the conditions for implementing and overseeing internal control in credit institutions and investment firms, in accordance with the European CRD 4 directive. In particular, it specifies the principles relating to internal transaction control systems and procedures, organisation of accounting and information processing, risk and result measurement systems, risk monitoring and control systems, and the information and documentation system for internal control. Article 258 of this Order provides for the drafting for the Board of directors of an annual regulatory report on the conditions under which internal control is implemented. This Order requires BNP Paribas to have an internal control system (hereinafter internal control) comprising specific departments and persons responsible for permanent control (including the Compliance and RISK Functions) and periodic control. This system must also take into account, as appropriate, the General regulation of the AMF, the regulations applicable to foreign branches and subsidiaries and to specialised activities such as portfolio management and insurance, and the recommendations of leading international bodies dealing with issues related to the prudential regulation of international banks, first and foremost the Basel Committee, the Financial Stability Board, the European Authorities, the European Securities and Markets Authority, the European Central Bank and the French Autorité de contrôle prudentiel et de résolution. Definition, objectives and standards of internal control The BNP Paribas Group’s Executive Management has implemented an internal control system whose main purpose is to ensure overall control of the risks and to provide reasonable assurance that the Company’s objectives in this respect are achieved. The BNP Paribas Internal Control Charter specifies the framework of this system and constitutes BNP Paribas’ basic internal control framework. Widely distributed within the Group and accessible to all its employees, this charter firstly recalls the objectives of internal control, which aims to ensure: a sound and prudent risk management approach, aligned with BNP Paribas’ values and Code of conduct in conjunction with the policies outlined in its corporate social responsibility framework; operational security of BNP Paribas’ internal operations; the relevance and reliability of accounting and financial information; compliance with laws, regulations and internal policies. Its implementation requires, in particular, that a high-level culture of risk and ethics be promoted to all employees and in BNP Paribas’ relations with third parties, clients, intermediaries or suppliers as well as its shareholders. The charter then sets out the rules governing the organisation responsibility and scope of operations of the various internal control entities and establishes the principle according to which the control functions (Compliance, LEGAL, RISK and Inspection Générale in particular) execute these controls independently. Scope of internal control The BNP Paribas Group’s internal control is overarching: it covers all types of risks to which the Group may be exposed (credit and counterparty risk, market risk, liquidity risk, interest rate risk in the banking book, underwriting risk with respect to insurance, operational risk, risk of non-compliance, equity risk, etc.); it is applied at the Group level and at the level of directly or indirectly controlled entities, irrespective of their line of business and irrespective of whether they are consolidated entities or otherwise. For other entities (in particular, legal entities subject to significant influence), the Group’s representatives on the corporate bodies of these entities are strongly encouraged to promote the same standards of internal control; it also covers the use of outsourced services, in accordance with principles defined by regulation. Fundamental principles of internal control BNP Paribas’ internal control system is based on its values and the Code of conduct as well as the following additional principles of action: clearly identified responsibilities: internal control is the responsibility of every employee, irrespective of their seniority or responsibilities. The exercise of a managerial function carries the additional responsibility of ensuring the proper implementation of the internal control system within the scope subject to regulation. As such, the necessary responsibilities and delegations must be clearly identified and communicated to all stakeholders; a structured risk identification, assessment and management system (involving, among others, a decision-making system, delegation, organisational principles, controls, reporting and alert mechanism, etc.); independent risk control and oversight: operational managers have final responsibility for the risks generated by their activities. They must, therefore, set up and operate a system for identifying, assessing and managing risks. The internal control system provides for the mandatory intervention, and as early as possible, of functions exercising independent control under a second level of control. This intervention takes the following forms: defining the overall normative framework for risk identification, assessment and management, defining cases where a prior second review by a function exercising a second-level control shared with the operational entity is necessary for decision-making, independent controls, called second-level controls, carried out by said function on the system implemented by the Heads of the operational activities and on their operations (result of the risk identification and assessment process, relevance and compliance of the risk control systems and in particular, compliance with the limits set); separation of duties: this is a key element of the risk control system. It consists of assigning certain operational tasks that contribute to the performance of a single process to stakeholders at various hierarchical levels or to separate these tasks by other means, in particular by electronic means. Thus, for example, tasks related to transaction initiation, confirmation, accounting, settlement and accounts reconciliation must be performed by different parties; proportionality of risks: the internal control system must be implemented under an approach and with an intensity that is proportionate to the risks involved. This proportionality is determined based on one or more criteria: risk intensity as identified in the context of assessment programmes (“Risk ID”, RCSA, etc.), amount of allocated capital and/or ratios in terms of solvency and liquidity, criticality of activities with regard to systemic issues, regulatory conditions governing the exercise of business activities, size of business activities carried out, customer type and distribution channels, complexity of the products designed or marketed and/or services provided, complexity of the processes carried out and/or the level of use of outsourcing with internal/external entities of the Group, sensitivity of the environment where the activities are located, legal form and/or presence of minority shareholders; appropriate governance: the internal control system is subject to governance involving the different stakeholders and covering the various aspects of internal control, both organisational and monitoring and oversight; the Internal Control Committees are a key instrument in this system. The framework is part of the decision-making processes managed through a system of delegations in the management reporting lines. They may involve the input of a third party belonging to another reporting line, whenever the systems defined by the operating entities and/or the functions exercising a second-level control so provide. The escalation process allows for disagreements between the operating entities and functions exercising second-level control, especially those related to decision-making, to be escalated to the higher hierarchical and possibly functional levels, to which the two parties report, and ultimately, if these disputes cannot be resolved in this way, to arbitration conducted by the Group’s Executive Officers. This process is implemented in accordance with the powers conferred to the Group Risk Officer, who may exercise his or her right of veto under the conditions set out in the RISK Function Charter; a requirement for formalisation and traceability: internal control relies on the instructions of the Executive Officers, written policies and procedures and audit trails. As such, the controls, their results, their implementation and the feedback from the entities to the higher levels of the Group’s governance are documented and traceable; a duty of transparency: all Group employees, irrespective of their position, have a duty to communicate, in a transparent manner, that is, spontaneously and promptly, to a higher level within the organisation to which they belong: any information required for a proper analysis of the situation of the entity in which the employee operates, and which may impact the risks or the reputation of the entity or the Group, any question that the employee could not resolve independently in the exercise of his or her duties, any anomaly of which the employee becomes aware. In addition, he or she has a whistleblowing right, as provided for in the Group’s Code of conduct, allowing them to make a report within a framework placed under the responsibility of the Compliance Function, providing a guarantee of confidentiality and enhanced protection against the risk of retaliation; Human Resources management taking into account internal control objectives: the internal control objectives to be considered in employee career management and remuneration (including: as part of the employee evaluation process, training, recruitment for key positions, and in determining remuneration); continuous adaptation of the system in response to changes: the internal control system must be actively managed by its various stakeholders. This adjustment in response to changes of any kind that the Group must face must be done according to a periodic cycle defined in advance but also continuously as soon as events so justify. Compliance with these principles is verified on a regular basis, in particular through assignments carried out by the periodic control teams (Inspection Générale). Organisation of internal control BNP Paribas Group’s internal control system is organised around three lines of defence, under the responsibility of the Executive Officers and under the oversight of the Board of directors. Permanent control is the ongoing implementation of the risk management system and is provided by the first two lines of defence. Periodic control, provided by the third line of defence, has an audit and assessment function that is performed according to its own audit cycle. The functions exercising the second and the third lines of defence are so-called functions exercising independent control. They report directly to the Executive Officers and with respect to Compliance, LEGAL, RISK and Inspection Générale, they report on the performance of their duties to the Board of directors. Key players in internal control Operating entities are the first line of defence: operating entities are primarily responsible for managing their risks and are the front-line in permanent control. They act within the framework defined by the Group’s Executive Officers and reviewed by its Board of directors, transcribed in the form of policies and procedures and to the extent necessary, tailored by the corporate bodies of the Group’s entities. The risk control system operated by the first line of defence forms what is called the first-level control system. It is implemented by employees and/or their reporting line and/or control teams that do not operate the processes under their control. The operating entities cover: all operating divisions and business lines, whether these are profit centres or their support functions; all cross-divisional functions, including the control functions for the processes that they operate directly and not under the responsibility of the second line of defence; all the Territories, attached to an operating division. The functions exercising second-level control (second line of defence): the functions exercising second-level control are responsible, under the delegation given by the Executive Officers, for the organisation and functioning of the risk control system and its compliance with laws and regulations on a range of areas (subjects and/or processes), as defined in their Responsibility Charter; as such, in their field of expertise and, where appropriate, after having consulted the operating entities, they define the general normative framework in which they manage the risk for which they are responsible, the terms of their intervention (thresholds, delegations, escalation, etc.), implement this system in the relevant areas and for which they are responsible, for first-level and second-level permanent control. They challenge and provide an independent view of risk identification and assessment vis-à-vis operating entities. They also contribute to spreading a culture of risk and ethics within the Group; the Heads of these functions provide the Executive Officers and Board of directors with a reasoned opinion on the level of risk control, current or potential, in particular regarding the “Risk Appetite Statement” as defined and propose any actions for improvement that they deem necessary; the Head of a function performing a second-level control performs this mission by relying on teams that can be placed, either: under its direct or indirect hierarchical responsibility, where the function is then called integrated. It thus has full authority over its budget and the management of its Human Resources, or under its direct or indirect functional responsibility (so-called non-integrated function) subject to joint decision-making with the reporting line manager for Human Resources and budget. The three integrated functions exercising second-level control are: RISK, in charge of organising and overseeing the overall system for controlling those risks to which the BNP Paribas Group is exposed, particularly credit risk and counterparty risk, market risk, funding and liquidity risk, interest rate and exchange rate risk in the banking book, insurance risk, operational risk, and environmental and social risk factors that affect the above risk categories; Compliance, responsible for organising and overseeing the non-compliance risk control system. As such, it contributes to the permanent control of compliance with laws and regulations, professional and ethical standards and the guidelines of the Board of directors and the instructions of the Executive Management; LEGAL, responsible for organising and overseeing the legal risk control system, exercises its responsibility to prevent and manage legal risks through its advisory and control roles. It exercises this control by (i) issuing legal opinions for the purpose of avoiding or mitigating the effects of a major legal risk, (ii) first- and second-level control exerted on the legal processes and (iii) the definition of a Group-level control plan for the business lines and functions to cover certain risks that may affect the processes under their responsibility. The missions entrusted to this function are performed independently of the business activities and support functions. The function is integrated hierarchically under the sole authority of its Department head, the Group General Counsel, who reports to the Chief Executive Officer. The Heads of these functions may be directly heard by the Board of directors or any of its specialised committees, possibly without the presence of Executive Officers, or at their request. Finance & Strategy is a non-integrated function that exercises a second-level control. The Standards & Controls Department, within it, is responsible for defining and implementing the risk management system related to accounting and financial information. RISK, Compliance and Finance & Strategy share responsibility for the second line of defence in terms of tax risk with the support of the Tax function, which acts as an expert on tax-related issues. The appointment of the Heads of the Compliance, Finance & Strategy and RISK Functions falls within the framework defined by the European Banking Authority. Permanent control can be outlined as follows: Inspection Générale performs the internal audit function and contributes to the protection of the Group by independently acting as its third line of defence on all Group entities and in all areas. It includes: centrally-based inspectors who carry out their duties throughout the Group, auditors distributed in the geographical or business line platforms (called “hubs”). The Inspector General, responsible for periodic controls, reports to the Chief Executive Officer. Executive Officers: the Chief Executive Officer and the Chief Operating Officers ensure the effective management of the Company for regulatory and legal purposes. In practice, the Executive Officers make key decisions through specialised committees that allow them to rely on experts with a deep understanding of the issues to be addressed. Executive Officers are responsible for the internal control system as a whole. As such and notwithstanding the powers of the Board of directors, the Executive Officers: decide on the key policies and procedures serving as the basis for this system; directly oversee the functions exercising independent control and provide them with the means to allow them to fulfil their responsibilities effectively; define the Group’s risk-taking policies, validate the most important decisions in this area and, if necessary, make the final decisions in the context of the escalation process. This process is implemented in accordance with the powers conferred to the Group Risk Officer, who may exercise his or her right of veto under the conditions set out in the RISK Function Charter; periodically evaluate and monitor the effectiveness of the internal control policies, systems and procedures and implement the appropriate measures to remedy any deficiencies; receive the main reports on internal control within the Group; report to the Board of directors or its relevant committees on the operation of this system. Pursuant to the Decree of 3 November 2014, BNP Paribas must appoint an Executive Officer responsible for overseeing the consistency and effectiveness of BNP Paribas Group's internal control. At 31 December 2024, the Chief Executive Officer is the Executive Officer responsible for overseeing the consistency and effectiveness of BNP Paribas Group’s internal control. The Board of directors: the Board of directors exercises essential responsibilities in terms of internal control, directly or via Specialised committees. Among others, the Board of directors: determines, on the proposal of the Executive Officers, the strategy and guidelines of the internal control activity and ensures their implementation; reviews the internal control activity and results at least once per year; regularly reviews, assesses and verifies the effectiveness of the governance system, including in particular clearly defined responsibilities, and internal control, which notably includes risk reporting procedures, and takes appropriate measures to remedy any failings uncovered; validates the Risk Appetite Statement, approves and periodically reviews the strategies and policies for taking up, managing, monitoring and controlling risks and approves their overall limits. The organisation of the Board of directors and its specialised committees is defined through its Internal Rules. The Heads of Inspection Générale and the integrated functions exercising second-level control have the right to be heard, possibly without the presence of Executive Officers, by the Board of directors or one of its specialised committees. Finally, among the specialised committees, the Internal Control, Risk Management and Compliance Committee (CCIRC) is essential in the Group’s internal control system. Indeed, it assumes the following responsibilities: analyses reports on internal control and on risk measurement and monitoring, reports on the activities of the Inspection Générale, and significant correspondence with the main regulators; examines the strategic directions of the risk policy; reports to the Board of directors. Coordination of internal control At the consolidated level, the Group Supervisory & Control Committee – GSCC coordinates internal control, and is responsible, in particular, for ensuring consistency and coordination in the internal control system. Chaired by the Chief Executive Officer, it brings together the Chief Operating Officers, the Deputy Chief Operating Officers and the Heads of control functions. In those entities and territories that are significant for the Group, their Executive Officers are responsible for arranging this coordination, generally within the framework of the Internal Control Committees. Procedures The procedures are one of the key elements of the permanent control system alongside the identification and assessment of risks, controls, reporting and monitoring of the control system. Written guidelines are distributed throughout the Group and provide the organisation and procedures to be applied as well as the controls to be performed. These procedures constitute the basic framework for internal control. The RISK Function regularly monitors procedure guidelines. The Group’s cross-functional procedures framework is regularly updated with contributions from all divisions and functions. Regarding the control framework, investigations into the status of the system are included in the report on permanent control. Among the Group’s cross-functional procedures, applicable in all entities, risk control is critically important in, for example: the procedures that govern the process for approving exceptional transactions, new products and new business activities; the procedure for approving credit and market transactions; the procedures for compliance with embargoes, anti-money laundering and the financing of terrorism and anti-corruption. The processes from these procedural frameworks rely primarily on committees (Exceptional Transactions Committees, New Business Activities and Products Committees, Credit Committees, etc.) mainly covering both operational and related functions such as IT and Operations, as well as the control functions (RISK, Compliance, Finance & Strategy and LEGAL Functions), which take a “second-look” on transactions. In the event of a dispute, they are submitted to a higher level of the organisation. At the highest level of the Group, there are committees (Credit, Market Risk, Risk Policy Committees, etc.) chaired by members of Executive Management. Compliance Organisation and change to the function Compliance is a globally integrated function: all compliance managers in the operating divisions, business lines, regions, territories and their teams report to it hierarchically, which guarantees their independence. Its organisation brings together proximity teams aligned with the structure of the Group’s operating divisions, business lines and entities, as well as central areas of expertise. Compliance contributes to the three components of the Group’s GTS 2025 strategic plan: growth: by participating in projects for new products, new channels and external growth as part of the business lines’ development strategy; technology: by continuing the automation of processes and the deployment of standard IT tools; sustainability: by anticipating emerging risks and regulatory changes, and by supporting the Group’s ESG commitments. The Compliance workforce stood at 3,713 full-time equivalents (FTE) at the end of December 2024. Compliance activity in 2024 Financial security The regulatory frameworks relating to Financial security continued to be strengthened in 2024. The Group’s remediation plan for compliance with international financial sanctions has been approved by the French and U.S. authorities and is now closed. In addition, the U.S. and European sanctions programmes have changed significantly with a new range of restrictive measures concerning Russia. The risk of circumvention of the sanctions programmes calls for great vigilance and an enhanced monitoring has been put in place. The system for anti-money laundering and combating the financing of terrorism has been enriched with new detection scenarios enabling better monitoring of the flows most exposed to the financing of terrorism. Other actions are being rolled out to deepen our knowledge of our customers when they enter into a relationship with the Bank and throughout this relationship. In a more demanding regulatory context and with the emergence of new payment processes, new platforms for screening clients and filtering transactions are being designed. The fight against corruption As part of a continuous improvement approach, the system for preventing and detecting corruption and influence peddling is being strengthened in its various components with regard to risk assessment. The due diligence measures on the knowledge of customers, intermediaries, suppliers and other third parties have been supplemented in order to improve the assessment of the risk of corruption. Procurement procedures have been revised. The automation of the detection of negative information on third parties is being implemented. Protecting customers’ interests In 2024, the complaints classification and processing systems were standardised across the Group’s various business lines. With regard to sustainable finance, the business lines have incorporated the latest regulatory changes into their systems, in particular by taking into account customer sustainability preferences when issuing advice, as well as defining and regularly reviewing product sustainability characteristics. In addition, the business lines are continuing the work undertaken to strengthen the systems for monitoring value for money for retail customers. Professional ethics The system for overseeing employees' personal account dealing, private and professional mandates and gifts & invitations continues to be strengthened with the update of the procedural body and the deployment of a shared IT tool allowing homogeneous risk management throughout the Group. The whistleblowing system is now based on a single tool that enables alerts to be collected on a secure external exchange platform and processed by referent employees, responsible for processing alerts, receive specific training. Finally, a comprehensive report on alerts is presented each year to Executive Management and the Board of directors. Market integrity In 2024, the business lines rolled out the latest changes in market integrity standards within their operating entities. The control framework has been overhauled to take into account greater granularity in the identification of risks and in the definition of the control points to be implemented by the business lines as a first line of defence. The reorganisation of the teams of experts has made it possible to improve their effectiveness in the main processes related to market integrity such as: management of insider information, information barriers and conflicts of interest; regulatory reporting of the Group’s transactions and positions; data recording and retention; the detection and reporting of orders and transactions potentially constituting market abuse; the recording and monitoring of oral and electronic communications. In addition, an exhaustive review of access to market platforms and the compliance of the pre- and post-trade monitoring framework was launched. Lastly, the training effort for the employees concerned was renewed on all these topics. Regulation of banking activities The BNP Paribas Group is subject to the French Banking Separation and Regulation Act, as well as to the Volcker rule. The associated compliance system has been consolidated and strengthened for all activities falling within the scope of these legal and regulatory provisions. In line with the initiatives launched in 2023, new actions aimed at strengthening the compliance framework for the Group’s swap activities were carried out in 2024 to comply with the regulations of both the CFTC (Commodity Futures Trading Commission) and the SEC (Securities and Exchange Commission). The activities concerned are mainly the responsibility of CIB. Tax regulations applicable to customers The BNP Paribas Group is subject to a set of tax regulations with extraterritorial scope: FATCA (Foreign Account Tax Compliance Act), QI (Qualified Intermediary) regime governing the withholding of income from U.S. securities; AEOI (automatic exchange of tax information within the OECD); DAC6 directive (declaration of tax schemes considered as aggressive in the European Union). The compliance systems relating to these regulations have been in place since their entry into force, including procedures, an employee training programme and appropriate control plans. With regard to local tax regulations applicable to clients, a control framework was put in place in 2024, including a control plan enforceable by the first line of defence and an independent test plan implemented by the Compliance, RISK and Finance & Strategy functions. Conduct Within the Compliance Function, the Supervisory & Conduct as a domain of expertise coordinates, steers and informs management on cross-functional initiatives aimed at strengthening the Group’s Conduct system. In 2024, an update of the Group Code of conduct was launched with the participation of all stakeholders and will be published in 2025. In addition, the Group continued to consolidate its Conduct risk management and supervision framework. Several initiatives have been launched, particularly within the market activities, to reinforce the identification and escalation of inappropriate behaviours and the associated control framework. Specific governance has been put in place. Lastly, a series of indicators is regularly reported to the Board of directors. They relate to the use of the whistleblowing framework, alerts relating to respect for people, the monitoring of mandatory training and customer complaints related to the topics of Conduct. They cover the use of the whistleblowing channels to raise alerts (Whistleblowing channels), ‘respect for persons’ alerts, follow-up of mandatory training and customer complaints related to Conduct topics; ESG practice The Compliance Function is represented in the Group’s main committees dealing with sustainable finance. Within this function, the ESG Practice has strengthened the governance of its system by creating a committee of international experts and a dedicated community. In collaboration with the RISK, LEGAL and Finance & Strategy functions as well as with the Company Engagement Department, the ESG Compliance Practice belonging to Compliance Function has contributed to defining the roles and responsibilities of each of these functions with regard to ESG risk factors. Within the scope of responsibility of the Compliance Function as a second line of defence, the main risks impacted by ESG factors are customer knowledge and the protection of their interests. Several actions have been carried out in this respect, including the incorporation of additional ESG control points in the know your customer procedure and the development and updating, in conjunction with the LEGAL function, of several instructions aimed at preventing the risk of greenwashing. Lastly, operating guides have been designed to supplement the training courses rolled out in 2024. Risk management system In 2024, the main improvements in terms of non-compliance risk management focused on: the gradual deployment of a enhanced risk assessment system (Risk and Control Self-Assessment), based as a priority on the consideration of quantitative factors; the ability to pilot and the oversight capability made possible by a centralised operational risk management tool that is constantly evolving functionally and enriched with new data. Training Mandatory training programmes, adjusted in their content, continued with high completion rates. These programmes consist of the following: For all Group employees, a Conduct Journey training path on all the topics of the Code of conduct. For new hires, upon joining the Group, the Conduct Journey as well as financial security training (know your customer, anti-money laundering, combating the financing of terrorism and corruption, international sanctions and embargoes). For employees particularly exposed to certain risks, they receive advanced training on financial security, the fight against corruption, MIFID II regulation, fight against market abuse, banking laws and regulations with extraterritorial scope and AEOI and FATCA tax regulations. For the campaigns completed during the year, the completion rates are between 94% and 99%. Lastly, every two years, the members of the Board of directors benefit from a training session on financial security and the fight against corruption and influence peddling. Industrialisation of Compliance The Technology and Operational Performance Department continuously carries out actions to improve the efficiency of Compliance tools and operational processes. In 2024, these efforts focused on: the creation of a joint venture with the RISK Function to form a joint team around artificial intelligence (AI), robotic process automation and, more broadly, analytics and innovation; the definition of an AI strategy for the Compliance Function around four major focuses: employee training, detection and investigation processes, regulations and procedures, control and oversight. the setting up of governance framework to steer this strategy; the design and implementation of seven automation robots in the areas of professional ethics, protection of customers' interests and financial security (flow filtering and name screening). Lastly, the professional ethics risk management tool was deployed and a new ethics alert management system was implemented. LEGAL Organisation and change to the function LEGAL is an independent and integrated function comprising all the Group’s legal teams. All LEGAL employees report hierarchically, directly or indirectly, to the Group General Counsel, in order to enable the legal experts to carry out their missions under conditions that guarantee their freedom of judgement and action. At all levels of the Group, the LEGAL organisation enables adequate coverage of legal risks, and includes: dedicated legal teams that cover the business lines, regions and territories, based on the Group’s organisation; platforms, created from 2020 and numbering ten at the end of 2024, which are dedicated internal legal teams that deliver legal services in all business activity sectors, entities and geographies concerned, within the framework of their exclusive main domain of expertise; the Group Dispute Resolution (GDR), a global and hierarchically integrated team which ensures appropriate management of the Group’s major litigations and investigations as well as legal issues related to financial security (such as embargoes and anti-money laundering) became a platform in August 2024. The GDR Platform is organised, on the one hand, into three geographical areas: GDR Americas, GDR APAC and GDR EMEA and, on the other hand, into four cross-functional areas: Legal Financial Security, Legal Panels, HR Litigation (France), Operations & Legal Risk Anticipation; the Legal Practice Competition Law, a team specialised in competition law, which joined forces with Compliance in 2022 to strengthen the Group’s compliance system in this area; finally, two central departments provide support services to the organisation of LEGAL. LEGAL activity in 2024 Throughout the year, LEGAL continued to improve the legal risk management system. As part of its legal advisory activity, LEGAL has contributed to the analysis of emerging risks on themes such as corporate social responsibility (CSR), blockchain technology, crypto-assets, cybersecurity, artificial intelligence, data and outsourcing. In terms of legal risk prevention, training and awareness-raising actions have been undertaken at all levels of the organisation up to its executive managers. To meet the technological challenges of the Group’s GTS strategic plan, LEGAL supported the Group’s initiatives by coordinating legal expertise and providing responses, particularly in the field of digital, information technology and data protection. A training programme, Digital Legal Competency Center (DLC2+) designed by LEGAL also offers a continuous training path on digital law for LEGAL employees. An online and face-to-face programme including round tables bringing together the programme’s academic partners, business lines and functions, and deep dive sessions are offered as part of this programme throughout the year. In the field of sustainable development, one of the three pillars of the GTS plan, LEGAL has actively contributed to raising the awareness of the management and operational teams of the divisions, business lines and functions on the legal issues in terms of sustainable finance and ESG. In addition, within the Regulatory platform, a Sustainable Finance practice has been set up that works with all of the Group’s stakeholders. In addition to its regular communications and the organisation of forums, it offers a training course dedicated to LEGAL employees built with LEGAL Human Resources - the LEGAL Sustainability Academy (Sustainability Academy@LEGAL, in connection with that of the Group) in line with the Group human Resources. Lastly, LEGAL continued to roll out and implement the legal risk management system by: reorganising the Group’s panel of lawyers firms (global panel and local panels) in order to achieve high-quality representation and ensure effective supervision; updating the identification and the evaluation of operational risks across the RISK Function (Risk and Control Self-Assessment – RCSA) for the entire function; performing second-level controls on legal processes; overseeing operational risk incidents involving legal risk; and contributing to the deployment of the library of controls relating to legal risks by continuing to provide educational support for the business lines and functions. Risk and permanent control Operational risk management The operational risk management model for the RISK Function is based on both decentralised teams within the businesses, under the responsibility of the Risk directors of these businesses, close to the processes, operational staff and systems, and on a central structure (RISK ORM) with a steering and coordination role and providing local teams with support on subjects requiring specific expertise (for example: cybersecurity, anti-fraud or managing risks related to products and services supplied by third parties). All of the components of the procedural system for operational risk have been significantly overhauled since 2018: Risk and Control Self-Assessment (RCSA); controls; collection of historical incidents; analysis and quantification of operational risk scenarios (“potential incidents”); action plans; outsourcing risk management. Work on the taxonomy of risks as well as the mapping of processes and organisational structures has also been completed to further standardise guidelines supporting the assessment and management of operational risk. In addition to these methodological changes, an integrated operational risk management tool (360 Risk Op), composed of various interconnected modules, was rolled out in the fourth quarter of 2019. After the launch of the module dedicated to the collection of Historical Incidents in 2019, those relating to RSCAs, Potential Incidents and the collection of outsourcing arrangements in 2020, the one dedicated to Action Plans has been available since April 2021. The control modules have been gradually developed and deployed since the summer of 2021 and implemented in 2023. In 2024, the 360 Risk-Op platform was supplemented by a module dedicated to managing recommendations (Inspection Générale and supervisors) and permanent control actions required by the second line of defence as well as a module to manage the Group’s normative corpus (policies and procedures). Management of risks related to Information and Communication Technologies The ongoing implementation of the Group’s digitisation initiatives aimed at creating streamlined channels for its customers and partners as well as new ways of collaboration for its staff, introduces new technologies and risks, and reinforces the need to continue to monitor the Group’s technological risk profile and ensure the effectiveness of controls. In 2024, the RISK teams continued to improve the risk management framework related to information and communication technologies (ICT) through the following actions: the performance of penetration tests (Red Team) on several entities in order to assess their capabilities of detecting cybersecurity incidents, and reinforcing protection measures where necessary; better integration of ICT risk elements into the entire reference framework; participation in major Group programmes in order to provide an independent analysis of the risks and action plans identified on topics such as fraud, cyber risk management or the deployment of the cloud; the implementation of Group-level governance and a procedural framework for operational resilience; monitoring cybersecurity threats, particularly in the context of the conflict in Ukraine and the Paris 2024 Olympic and Paralympic Games. Management of risks related to personal data protection In 2024, BNP Paribas continued to improve its personal data protection framework. This involved further integrating the existing management and governance practices of the RISK Function. A robust automation control framework is in place to support the management of data protection risks, respond to requests from authorities, address vulnerabilities as priority, and demonstrate the Group’s responsibility in this area. In accordance with the Group’s confidentiality policy, the internal framework has been revised and is being implemented according to globally defined requirements to be implemented in all entities. The risk taxonomy includes the protection of personal data and a Generic Control Library and is regularly updated. An independent testing plan was implemented by the second line of defence in the majority of entities. Improving the system and tools for detecting and managing personal data incidents makes it possible to react more quickly and effectively, as well as to reduce the number of incidents. Contracts with third parties as well as cross-border data transfers are subject to continuous review, facilitated by automation measures. The Privacy Risk Assessment process is automated and is regularly reviewed to identify potential improvements. All employees participate in a mandatory training programme and Data Protection Officers participate in an ongoing professional development programme. The global system has been automated, enabling the production of risk indicators, thus contributing to a better maturity of entities operating outside the scope of the European regulation. All legal entities, including outside Europe, have a Data Protection Officer. All these actions aim to achieve a consistent approach within the Group, to reduce risks and vulnerabilities, by strengthening oversight and control. Changes to the RISK Function RISK continues to roll out its RISK2025 transformation plan, the aim of which, in line with the Group’s GTS Strategic Plan, is to optimise the effectiveness and efficiency of the function through the development of enhanced capabilities to manage risks, optimise the function’s operating model and ensure the attraction, retention and development of talent. In this context, a certain number of initiatives were continued and new ones launched, structured transverse programmes covering the main types of risks. They make it possible to simplify, automate and pool certain internal processes and contribute to the end-to-end review of customer processes, while ensuring that the control system is at the highest level. They are based on reinforcing new technologies (for example in the context of lending processes and the detection and monitoring of risks), on consolidating internal skills (for example through the increased use of key profiles related to new modelling methods or through the internalisation of external assistance positions), or the strengthening of its pooled operational platforms in Portugal, India, Spain and Canada. Environmental, social and governance (ESG) risk management As part of the Group’s “Sustainable Finance” governance, a multi-year programme was launched to strengthen the integration of ESG risk factors into the Group’s risk management system. These risk factors likely to affect so-called traditional risk categories (such as credit, market or operational risks) are thus better identified, assessed and analysed, and therefore better integrated into the Group’s risk management. In particular, a homogeneous approach to assessing the ESG profile of customers (called ESG-Assessment) is in place for credit decision-making to: assess customer performance and identify any negative impacts on the three areas of the ESG-Assessment (environment, social and governance), which could result in credit and reputation risks; and to better understand the challenges of the business activity sector and customer positioning in order to support the commitment and their transition to a more sustainable business model. Additional information on climate change risk management can be found in the Sustainability statement in chapter 7 of this Universal registration document. Periodic control In 2024, the General Inspection adjusted its framework by grouping together audit hubs in France that are similar in terms of the business lines audited for greater consistency with BNP Paribas’ organisation. Thus: the Commercial & Personal Banking in France (CPBF), Arval, Leasing and Personal Finance & New Digital Business hubs have joined forces to create the Commercial & Personal Banking Services (CPBS) hub; the CIB (Corporate & Investment Banking), Ireland & MEA (Middle-East & Africa) hub has integrated the Securities Services hub in line with the merger of the business lines. These changes did not impact the implementation of the initial audit plan of 835 missions. A total of 817 missions were carried out in 2024, i.e. 98% of the target. 94% of them were scheduled in the original audit plan. The reports issued in 2023 by the European Central Bank following its audit of BNP Paribas' Inspection Générale and governance led to substantial changes concerning the General Inspection, effective from 1 January 2025: The Inspector General regularly presents activity reports to the Financial Statements Committee and no longer to the Internal Control, Risk Management and Compliance Committee (CCIRC), while remaining invited to the latter. In addition, he has several opportunities for direct exchange with the Board of directors, particularly when the annual audit plan and budget for the function are approved. The role of the Financial Statements Committee and the Board of directors in the appointment and dismissal of the Inspector General, the determination of his compensation and his annual assessment has been strengthened. The General Inspection was audited in 2023-2024 by IFACI Certification with regard to the standards of the Institute of International Auditors (IIA), whose methodology is recognised by banking supervisors. This audit assignment concluded that it assessed as ‘Generally Compliant’ and the certification was awarded to the Inspection Générale. Alongside this audit mission, the function prepared the implementation of the new IIA standards, which are due to come into force on 9 January 2025. The IG+ programme launched in 2021 and supported by the creation of the Transformation & Digital Intelligence team has led to the implementation of a framework that has in deepness transformed system in terms of industrialisation, simplification and cross-functionality. Thus, since the spring of 2023, an “end-to-end” audit tool with the highest standards in the profession has considerably improved the operational efficiency of all audit teams by providing missions with an ergonomic and collaborative environment, promoting cross-functionality, and fed by information from other control functions. The previously implemented data analytics capabilities were enhanced in 2024 with a generative artificial intelligence tool, the IG Virtual Assistant, which provides auditors with analysis and synthesis assistance. These evolutions have been accompanied by several employee-centric projects: an overhaul of the Employer Value Proposition (EVP) for inspectors/auditors; the continued significant investment in training, based on the perspective individual skills acquired with those required to perform the missions, and relating in particular to audit techniques, the regulatory framework, business line specificities and data analysis and artificial intelligence techniques. In 2024, the General Inspection renewed its annual risk assessment exercise. All of the approximately 3,000 Audit Units (AUs) were reviewed and a document describing the broad outline of the assessment of its inherent risk and the quality of the controls carried out therein was produced for each. The total number of AUs was stable compared to 2023, the disposals of entities offset the creation of entities and the multiplication of AUs in the Group’s offshoring platforms, whose services have diversified. Overall, the residual risk profile for 2024 remains stable compared to 2023, thanks to the stability of the inherent risk and the good level of quality control. When determining the audit plan, the General Inspection always endeavours to cover the entire auditable scope according to a frequency adapted to the level of the residual risk of each AU: this frequency is shorter when the residual risk is high. When an AU falls under a specific regulatory audit cycle, the applicable pace is the shorter of the regulatory obligation and the frequency resulting from the risk assessment. These principles determine the processing priority of all AUs. The duration of the audit cycle cannot exceed five years in any case. The new tools now allow the simultaneous audit of similar AUs by auditors of the hubs and General Inspection In addition to improving efficiency, this approach increases the added value of the missions for both auditees and auditors. It also significantly improves the carbon footprint by significantly reducing international travel. The headcount of the General Inspection was up at the end of 2024 compared to the end of 2023. This change is explained by the reintegration of UkrSibBank into the scope of consolidation and by targeted increases in resources, for example for the audit of offshore platforms or Conduct. Human resources issues remain a priority for the General Inspection which is pursuing a permanent recruitment effort in a context of a talent war, relying in particular on the review of its EVP value proposition. Internal control employees The various internal control functions are based on the following headcount (in FTE = Full-Time Equivalents, calculated at the end of the period): 2019 2020 2021(1) 2022(2) 2023(3) 2024(4) Change 2024/2023 Compliance 4,219 4,105 3,770 3,791 3,610 3,624 0.4% LEGAL 1,810 1,779 1,736 1,703 1,651 1,647 -0.2% RISK 5,462 5,191 5,029 4,885 4,754 4,799 0.9% Periodic control 1,446 1,381 1,355 1,342 1,278 1,320 3.3% TOTAL 12,937 12,456 11,890 11,721 11,293 11,390 0.9% In 2021, the reduction in the headcount of the Compliance and RISK Functions is mainly due to the transfer of control teams to the first line of defence (business lines). In 2022, the headcount reductions result from the continuation of this transfer for the RISK Function, and a change in the scope of consolidation for all functions (deconsolidation of UkrSibBank in Ukraine). On a like-for-like basis, the headcount increased by 2.7% for Compliance and remained virtually stable for the other functions. In 2023, the headcount reductions result from a change in the scope of consolidation for all functions (mainly the disposals of Bank of the West in the United States, BICI Senegal and BICI Côte d’Ivoire). On a like-for-like basis, the total headcount for the control functions remained stable. In 2024, the headcount increased slightly due to the reconsolidation of UkrSibBank in Ukraine and the entry of new Cardif subsidiaries. Internal control procedures relating to the preparation and processing of financial information Roles and responsibilities for preparing and processing accounting and financial information Under the authority of the Chief Executive Officer, the Finance & Strategy Function is notably responsible for preparing and processing financial information. It also performs an independent control mission which aims at ensuring control of the risk related to accounting and financial information. The specific missions assigned by the Group to the Finance & Strategy Function are defined by a charter. These consist of: preparing financial and sustainability information and ensuring that published financial, prudential and sustainability information is accurate and fairly stated, in accordance with regulatory framework and standards; providing Executive Management with the necessary information for the Group’s financial steering at all organisational levels; defining accounting, performance management and selected prudential policies for the Group and leading their operational implementation; defining, deploying and supervising the permanent control framework associated with financial information across the Group; managing the Group’s tax risk, representing the Group in tax matters and contributing to preserving its reputation; assisting Executive Management in defining the Group’s strategy, ensuring the benchmark of the Group’s performance and initiating and investigating mergers and acquisitions (“M&A”); managing the Group’s own funds and conducting the analysis and financial structuring of the Group’s external and internal acquisition, partnership and divestment projects; ensuring the Group’s financial communication and monitoring of the BNP Paribas share performance, shareholder base and market reactions; managing relations with market authorities and investors and organising the General Shareholder Meetings; monitoring changes to the regulatory and prudential framework, and preparing and communicating the Group’s position statements thereupon; coordinating banking supervisory issues, notably relationship with the ECB; catering to the economic research needs of all of the Group’s clients, business lines and functions; leading/steering the Finance & Strategy function's continuous transformation, defining its organisation and monitoring its resources and costs; driving the implementation of the target operating model, contributing to the definition of the functional architecture and the design of Finance systems and deploying them. All of these missions require those involved to be fully competent in their particular areas, to understand and check the information they produce and to comply with the required standards and time limits. Particular attention is paid to compliance, quality and integrity of the information used and personal data protection. All those involved in the function have a duty to alert Executive Management. The missions of the function are carried out in conjunction with the RISK and ALM Treasury Functions for regulatory requirements, with the Project Management team for Finance & Strategy and RISK, housed within Group IT, with regard to user processes and the changes to the information system. In practice, the responsibility of the Finance & Strategy Function is carried out as follows: the financial data produced is the responsibility of the Finance Department of each entity, whether produced at its own level or by shared regional platforms; when they contribute to the Group’s consolidated results, they are sent to the divisions/business lines for approval; the production of forecast financial data is carried out by the divisions/business lines, ensuring their consistency with the actual data produced by the entities or regional platforms; at central level, Finance & Strategy (Group) prepares the reporting instructions distributed to all divisions/business lines and consolidated entities in order to ensure that the data is homogeneous and complies with the Group’s rules. It gathers all the accounting and management information produced by the entities and approved by the divisions/business lines and assembles and consolidates these data for use by Executive Management or for communication to third parties. Production of accounting and financial data Standards framework The local financial statements for each entity are prepared following the accounting standards prevailing in the country where the entity carries on business, while the Group consolidated financial statements are prepared under IFRS (International Financial Reporting Standards) as adopted by the European Union. Within Finance & Strategy (Group), the “Standards & Controls – Group Financial Policies” (GFP) Department defines the IFRS-based accounting principles to be applied to the Group as a whole. It monitors regulatory changes to IFRS and French standards and interprets them as necessary by issuing new principles. A manual of the Group’s IFRS accounting principles is made available for the divisions/business lines and entities on the internal network communication tools (“intranet”) of BNP Paribas. It is regularly updated to reflect regulatory changes. At the request of GFP or those responsible for reporting, certain interpretations and major elements of doctrine are submitted to a specialised committee (“Accounting Policy Committee”) for approval or arbitration. This committee reviews and approves the changes to be made to the accounting principles manual. In addition, the “Group Financial Policies” Department reviews the specific accounting analyses carried out by the divisions or entities as part of the preparation of the financial statements and during the approval process of new products or new activities, when these are complex or require the exercise of judgement. In some cases, it is also responsible for carrying out these analyses. Finally, this department is also responsible for maintaining the management standards manual, incorporating the needs identified by the performance management teams. These principles and standards can also be accessed using internal network tools ("intranet"). The solvency framework is the joint responsibility of the RISK and Finance & Strategy Functions. The Finance & Strategy Function is notably responsible for the normative elements relating to the prudential scope, regulatory capital, and the calculation of leverage and GSIB ratios. The other aspects relating to risk measurement are the responsibility of the RISK Function. A joint “Solvency Policies Committee”, co-chaired by the two functions, plays the same role as the “Accounting Policy Committee” in terms of prudential standards. The regulatory liquidity framework is the responsibility of ALM Treasury (with the contribution of the Finance & Strategy and RISK Functions). Data processing system The data processing system is organised around two channels, the first structured according to entities, and the second according to business lines: “Financial Accounting & Reporting (FA&R)” is the Finance stream dedicated to the preparation of financial data. Organised around shared and multi-business regional platforms, it combines expertise and industrialisation for all financial reporting flows (financial statements, regulatory, management, solvency, liquidity, taxes and sustainability), at Group or local level; “Financial Performance Steering” (FPS) is the Finance stream that analyses and advises on the strategic management of the business lines, based on the financial data provided by the FA&R stream. It is also responsible for preparing forecast financial reports (estimates, budget, three-year plan, financial information in stressed scenarios) by interacting closely with business line managers. This is why this channel is structured according to the Division, Business Line, Function. Permanent control of accounting and financial information Internal control within the Finance & Strategy Function To allow centralised monitoring of the risk related to accounting and financial information, the “Group Financial Controls” team within Finance & Strategy (Group) carries out the following main missions: defining the Group’s policy as regards the accounting internal control system. This system requires accounting entities to follow rules in organising their accounting internal control environments and to implement key controls ensuring that the information in their consolidation packages is reliable. The Group has issued internal accounting control guidelines for use by the consolidated entities and a standard accounting control plan listing the major mandatory controls aiming at covering the accounting risk; ensuring that the internal control environment for accounting and financial information functions properly within the Group, in particular via the procedure for internal certification of accounts described below; reporting quarterly to Executive Management, the Financial Statements Committee and the Board of directors on the quality of the Group’s financial statements; together with the RISK Function, overseeing the proper functioning of the system for collecting and processing consolidated credit risk reporting, including by means of quality indicators; ensuring the proper functioning of the data collection and processing system for the preparation of liquidity reports, in particular by means of a specific certification system and quality indicators; ensuring the implementation by the entities of the Statutory Auditors’ recommendations, the recommendations of the Inspection Générale relating to the Finance process and the ECB’s recommendations allocated to Finance & Strategy with the support of the Divisions/Business lines. This monitoring is facilitated by use of a dedicated tool that enables each entity to monitor the recommendations made to it and to regularly report on the progress made on the various action plans. Centralised monitoring of these recommendations enables Finance to identify improvements to the accounting internal control system made within the consolidated entities, identify any cross-functional problems and, if necessary, revise the Group-level procedures and instructions. These missions are relayed within the Finance Departments of the divisions-business lines by central, independent second-level control teams who carry out close supervision of the entities and develop, if necessary, accounting control procedures adapted to the specificities of their scope, in line with Group-level procedures. Lastly, within the entities/business lines’ Finance Departments, the Group’s accounting internal control principles have led to set up dedicated and independent second-level accounting control teams or representatives, depending on the size of the entities. As such, the consolidation of the reporting production tasks on regional platforms within the Group, which improves the harmonisation of the first-line reporting and control processes and increases their efficiency for the scope of the entities concerned, also ensures that the second-level accounting control teams are of appropriate size and have the necessary expertise. The main missions of these local teams are as follows: implementing second-level accounting controls on all entities falling within their scope and covering in particular the controls carried out by the entities’ Finance Functions (including the first-level controls carried out on the processes operated by the Back Offices). These procedures are based, in particular, on standardised accounting control plans and accounting control tools that allow control responsibilities to be allocated to the various contributors to flows. Several control tools support first- and second-line of defence controls, for example, identifying, for each account, the department responsible for its justification and control, reconciling the balances recorded in the accounting system with the balances appearing in the Operations systems of each activity and identifying, justifying and monitoring the clearance of outstanding items in the flow accounts; implementing control and coordinating (directly when this task is not performed by first-line controls) the “elementary certification” process (described below) requiring the entity’s different departments to report to the Finance & Strategy Function on the controls that they have carried out; ensuring that the accounting internal control framework enables the entity’s Finance Department to have sufficient oversight of the process of preparation of account summaries, and in particular over all the elements necessary for the Group’s certification process (described below). To assist in achieving this objective, the tasks related to closing processes are formally defined. The use of tools to map the processes and associated risks and to document the checks as well as the coordination with other control channels contributes to improving the quality. The permanent control framework within the Finance division is described in a procedure that covers, in particular, the roles and responsibilities of the various players and also the articulation between its two lines of defence as well as with the functions exercising second line of defence missions. This framework also includes a strong governance articulated through committees called “FORCC(23)” through which all the permanent control processes of the Finance operating business units are reviewed. Moreover, the inherent risk assessment methodology was clarified in 2023. The entities measure a level of risk dynamically in anticipation of closing, based on the major events of the quarter, identified locally or by the Group, and the analysis of risk indicators adapted to each generic control point concerned. It thus makes it possible to prioritise risks in advance and to guide the intensity of the control activities of the second-line of defence Finance teams locally. Internal Certification Process At Group level Finance & Strategy (Group) uses FACT (Finance Accounting Control Tool) for the internal certification of the quarterly data produced by each entity for the consolidation package and for the consolidation process for which the “Financial & Regulatory Reporting” Department within Finance & Strategy (Group) is responsible. The Chief Financial Officer of each entity concerned certifies to Finance & Strategy (Group) that: the transmitted data have been prepared in accordance with the Group’s norms and standards; the accounting internal control system guarantees its quality and reliability. The main certificate completed by fully consolidated entities reproduces the results of all of the major controls defined in the Group’s accounting control plan, and leads to the determination of a rating for each entity. Entities consolidated by the equity method complete an appropriate certificate. Finally, non-consolidated entities are certified annually through a simplified procedure. This internal certification process forms part of the Group’s monitoring for Internal control and enables Finance & Strategy (Group), which has the overall responsibility for the preparation and quality of the Group’s consolidated financial statements, to be informed of any problems in the financial statements and to monitor the entities’ implementation of appropriate corrective measures. A report on this process is presented to Executive Management, the Financial Statements Committee and the Board of directors at the close of the Group’s quarterly consolidated financial statements. This certification framework is also in place for the information included in regulatory reporting on credit risk and the capital adequacy ratio. Those contributing to the reports attest that they have complied with the standards and procedures and that the data used is of appropriate quality. They further describe the results of the controls carried out at the various stages of producing the reports. On the same principles, a certification process is in place for the reporting of liquidity/resolution-related data. Within this framework, the various contributors report on the compliance of the data transmitted with the standards, and the results of key controls performed to ensure the quality of reporting. At entity level In order to ensure the oversight of all the process of preparation of accounting information at the level of each entity’s Finance Department, the permanent control procedures of Finance & Strategy (Group), developed by Group Financial Controls require the implementation of first-level procedures relating to accounting data or controls when the process of preparing the accounting information is operated or controlled in a decentralised way. In this context, an “elementary certification” (or “sub-certification”) procedure can be deployed. This is a process by which the providers of the information used to prepare accounting and financial data (e.g. Middle-Office, Back-Office, Human Resources, Risk, Suppliers’ Accounts, etc.) formally certify that the fundamental controls intended to ensure the reliability of the accounting and financial data under their responsibility function properly. The elementary certificates are sent to the local Finance Department first level of control, which analyses them in combination with the accounting controls that it exercises directly, prepares a summary report intended to be used to prepare the main certificate, and liaises with the various players in order to monitor points requiring attention. This sub-certification is carried out in the standardised tool for formalising and monitoring controls (Beacon) by providing entities with a dedicated environment in which they can directly manage the processes set up at their level. Valuation control of financial instruments measured at fair value Assets and derivatives measured at fair value through profit or loss in the trading portfolio The trading portfolio mainly focuses on the market activities of Global Markets and a few other, less significant scopes. Finance & Strategy (Group) has defined a specific framework for the main scope. This is based on the principle that Finance & Strategy, responsible for the preparation and quality of the Group’s accounting and management information, delegates the production and control of the market or model value of financial instruments to the various players of the chain, thus constituting a single and integrated valuation channel for financial instruments. The processes covered include in particular: verifying the appropriateness of the valuation framework as part of the approval process for new transactions or activities; verifying the proper recording of transactions in the systems and ensuring it is appropriate with the valuation methodologies; verifying the development and approval mechanism independent of valuation methods; determining the market parameters and the procedure for an independent verification of these parameters; determining valuation adjustments for market, liquidity and counterparty risks; determining and reviewing the rules for making parameters observable; classifying instruments within the fair value hierarchy, determining day one profit adjustments, estimating the sensitivity of level 3 valuations to valuation assumptions. Through appropriate processes and tools, this channel aims at ensuring both the correctness and the reliability of the process for valuing financial instruments, and the quality and comprehensiveness of the control system. It can thus provide the appropriate data to the various decision-making bodies, and the use of these elements in the operational processes for compiling the accounting and management results, and ensures the transparency of appendices dedicated to fair value. Control of the valuation channel, which involves all participants, is supervised by the Finance & Strategy Function within the framework of a specific charter and a dedicated governance. This control system is based on a set of organisational principles defined in the Group’s Internal Control Charter for each organisational level, i.e. Group, CIB and the main entities that account for market transactions. To ensure its proper functioning, the Finance & Strategy Function relies on dedicated teams (“Standards & Controls – Valuation Risk and Governance, S&C – VRG”), which oversee the entire system. The Finance Function decides on the information that must be reported by the various players: this comprises both quantitative and qualitative data indicating trends in different businesses as well as the results and quality of upstream controls carried out. Several committees that meet on a quarterly or monthly basis are set up to bring all the players together to review and examine, for each process and Business line, the methods used and/or the results of the controls conducted. The functioning of these committees is governed by procedures approved by the Finance & Strategy Function, ensuring that Finance & Strategy takes part in the main choices and arbitrations. Lastly, S&C – VRG reports at each quarterly closing to the Product and Financial Control Committee (PFC), chaired by the Group Deputy Chief Financial Officer, on its work, and informs the committee of the points of arbitration or of attention concerning the effectiveness of the controls and the degree of reliability of the valuation and results determination process. This quarterly committee brings together the Business lines, Finance & Strategy (Group) and the divisions concerned, ALMT and the RISK Function. Intermediary PFC committees complete the framework and aim at defining project priorities, monitoring their implementation and thoroughly examining certain technical elements. Instruments measured at fair value through profit or loss or through equity outside the trading portfolio Fixed income securities, derivatives and debt measured at fair value through profit or loss or through equity Most of the instruments relating to this scope are covered by the framework in place for the trading portfolio, thanks to an adapted extension of the governance as well as the pooling of systems, processes and valuation methodologies. The main business line concerned is ALM Treasury, which is represented on the aforementioned PFC committee. Equity securities measured at fair value through profit or loss or through equity Since 2020, Group Financial Policies has developed a specific valuation standard, and the valuation governance framework has been standardised to ensure homogeneous coverage of this portfolio and an appropriate allocation of responsibilities and decision-making chains. Other items measured at fair value Control framework, meeting the requirements of the Group’s accounting control plan, exists at the level of the entities or at the level of the divisions-business lines to ensure the necessary level of control on loans that do not meet IFRS 9 SPPI(24) criteria. Evolutions of the framework The Finance & Strategy Function’s global permanent control framework The permanent control framework related to the risk on accounting and financial information is continuously being adapted. The change in the tools is part of a framework that aims at guaranteeing an adequate level of control within the Group, and a better harmonisation of the control of accounting and financial information. Thus, the implementation within the channel of a standardised tool for formalising and monitoring controls (Beacon) to cover all entities and central teams on the various Finance control plans (accounting, performance management, solvency and liquidity) is being completed. Moreover, the quality of the accounting certification process is regularly reviewed with the divisions/business lines, for instance with the preparation of quantitative indicators for some controls, targeted cross-functional reviews of a major control and ad hoc reviews with the divisions/business lines on specific points for improvement in various scopes. These reviews are supplemented by presentations to the various committees in the Finance & Strategy channel and training sessions. Group procedures clarifying some major controls, and detailed instructions aiming at ensuring consistent responses and adequately-documented processes are also distributed. These Group procedures and instructions are extended where necessary at division/business line level to cover issues specific to them. Similarly, the dedicated control plan for the data contributing to the capital adequacy ratio is being modified in order to adapt the control framework to the new processes and the requirements of the CRR3(25) regulation and capitalise on the indicators and controls in place in the various sectors in connection with the data reporting and quality improvement programme. In addition, for liquidity reporting, changes in processes and tools are carried out regularly in order to adapt to the new regulatory reporting demands, and specific actions are taken with the various contributors in order to enhance the quality and controls for the channel. With regard to the IFRS 9 provisioning process, a dedicated control plan has been deployed by the entities in the Beacon tool. The results of controls as well as the problems encountered are monitored in the cross-functional IFRS 9 FORCC(26). The sustainability information control framework The deployment of an internal control framework specific to sustainability information is mainly based on: A mapping of existing data production processes and a data collection organisation; A roles and responsibilities matrix (RACI) created as part of the sustainability reporting implementation project; A gap analysis between regulatory disclosure requirements and published sustainability information; A control framework, based on generic controls applicable by the sustainability information production channels and a certification process on controls performed by the channels, for which Finance provides the second line of defence in its area of expertise. Data control framework As in previous years, the Group continued to adapt its framework in 2024 to continue to improve the quality and integrity of the data required to produce the reports covering the different types of main risks to which BNP Paribas is exposed (risk related to the accounting and financial information, credit, market/counterparty, liquidity and operational risks), and to improve the consistency of related reporting at the different levels of the organisation during normal periods as well as during stress or crisis periods. This continuous adaptation of the system is part of the regulatory framework of the principles set by the Basel Committee for the aggregation of risk data and their reporting (“Principles for effective risk data aggregation and risk reporting – Basel Committee on Banking Supervision – Standard 239”) and aims at ensuring the Group’s compliance with these principles. In this regard, an additional guide entitled “Guide on effective risk data aggregation and risk reporting” was issued in May 2024 as part of the SSM(27). This guide includes the supervisor's minimum expectations regard to 1) the responsibilities of the management and supervisory bodies, 2) the scope of application of the BCBS239 regulation, 3) an effective data governance system, 4) an integrated data architecture, 5) the implementation of data quality management and standards at Group level, 6) the frequency and deadlines for the production of internal risk reports, 7) the implementation or remediation programmes to meet BCBS239 requirements. In line with this additional guide, the Group has initiated a programme to improve its system, under the joint sponsorship of the Group’s CFO, CRO and deputy COO. At the same time, the significant orientations taken in previous years were maintained in 2024 as part of the data strategy (“Data Towards 2025”) in line with the Group’s 2025 ambitions, in particular in the following areas: the implementation of the Group’s Data Management strategy, in particular the standardisation of data, including those relating to ESG, the monitoring and control of their quality (strengthening of local Business line indicators and their consolidated view, organisation of the extension of the scope of critical data), their continued inclusion in the Finance & Strategy permanent control framework, the organisation of the processes supporting these activities (inclusion of the Single Supply Chain organisational model, with in 2024, the streamlining of the credit risk calculation and consolidation system), the use of adapted technologies and a strengthened data culture within the Group with active management of the Data Management community (organisation of various data events during the year); the coordination of Data governance with, in particular, the holding of the Group Data Board (biannual), a Shared Data Council for the data of the Group’s standards and quality assessment committees and monitoring of remediation actions of the Group, Business lines or functions and entities (Quality Assessment & Remediation Committees - QARC), generally on a quarterly basis; consideration of the Data strategy as part of the Group’s IT strategy, in particular by integrating the principles of Data Management by Design and the IT contribution to the data constitution model (including the development of application data dictionaries); a significant contribution to the Group’s major projects for data aspects such as the multi-year project of the main credit risk models, the project to prepare for the effective transition to regulations aiming at strengthening prudential requirements (“CRR3(28)”) from 2025 or the review of the IFRS 9 stage 1 and 2 provision calculations. Periodic control The Inspection Générale has a dedicated Finance channel (called the “Finance Domain”) with a team of specialist inspectors in accounting and financial auditing, thus reflecting the Inspection Générale’s strategy of having a robust auditing capability, as regards both the technical complexity of its work and its scope of coverage of accounting and financial risk. Its action plan is based on an annual risk assessment exercise, the practical details of which have been established by the Inspection Générale based on the risk evaluation chart defined by the RISK Function. The core aims of this team are as follows: establishing a hub of accounting and financial expertise in order to reinforce the capability of Inspection Générale when carrying out inspections in these areas; disseminating accounting and financial internal audit best practices and standardising the quality of related audit work within the Group; identifying and inspecting areas of accounting and financial risk at Group level. Relations with the Statutory Auditors Each year, as part of their statutory assignment, the Statutory Auditors issue a report in which they give their opinion concerning the consistency and fairness of the consolidated financial statements of the BNP Paribas Group as well as the annual financial statements of the Group’s companies. The Statutory Auditors also carry out limited reviews on the closing of the half-yearly accounts, and specific tasks in relation to the quarterly accounts. Thus, as part of their statutory mission: they examine any significant changes in accounting standards and present their opinions to the Financial Statements Committee concerning the accounting choices with a material impact; they present their conclusions to the Finance & Strategy Functions in the entities/Business lines/Divisions and at Group level, and in particular any observations and recommendations to improve certain aspects of the internal control environment that contribute to the preparation of the accounting and financial information that they reviewed during their audit. The Statutory Auditors are also responsible for certifying sustainability information on the basis of limited assurance. Financial communication (press releases, special presentations, etc.) Financial communications for publication are written by the “Investor Relations and Financial Information” Department within Finance & Strategy (Group). It is directed at retail and institutional shareholders, financial analysts and rating agencies, and presents the Group’s different activities, explains its results and describes its development strategy, while maintaining the financial information homogeneous with that used at an internal level. The team, which reports to Executive Management and the Chief Financial Officer, proposes and defines the format in which financial information is published by the BNP Paribas Group. It works with the Divisions and functions to prepare the presentation of financial results, strategic projects and specific topics. It distributes them to the financial community. Financial communciation relating to the quarterly, half-yearly or annual financial information included in the amendments to the universal registration document is entirely read by the statutory auditors. (1) AMF recommendation No. 2012-02 – Corporate governance and executive compensation in companies referring to the Corporate Governance Code of Listed Companies (Afep-MEDEF Code) – Consolidated presentation of the recommendations contained in the Annual Reports of the AMF. (2) 2024 AMF report on Corporate governance and executive compensation of listed companies (December 2024). (3) A fourth independent member, Mr. Christian Noyer, will join the Remuneration Committee as of 1 January 2025. (4) Ms. Rajna Gibson-Brandon resigned from her directorship as of 11 September 2023 due to family constraints. (5) This information is an integral part of the sustainability statements, presented in chapter 7.1, and is covered by the certification report on sustainability statements. (6) Mr Pierre André de Chalendar also met the independence criteria at the end of his term of office. (7) From 1 January 2025. Previously, Ms. Juliette Brisac was Chief Operating Officer of the Corporate Engagement Department of the BNP Paribas Group. (8) Section VI “Skills and diversity of the members of the Board of directors” of the Suitability policy. (9) Including one executive director (Jean-Laurent Bonnafé, Director and Chief Executive Officer) and thirteen non-executive directors. (10) In accordance with the provisions of the Copé-Zimmermann Act. (11) Latin America, Asia, United States, Europe. (12) German, Belgian and Dutch. (13) I.e. at least 30% of the total number of directors and at least 40% of the number of directors appointed by the Annual General Meeting (excluding directors representing employees). (14) This information supplements the description of the diversity policy applied to members of the Board of directors. (15) Version in force on 1 January 2025. (16) Version in force on 1 January 2025. (17) Indirectly means a situation in which the Member of the Management Body is the actual ultimate beneficiary of the agreement entered into by a company controlled by BNP Paribas and the co-contracting party of said controlled company. (18) Including of a political nature. (19) This information is an integral part of the sustainability statements, presented in Chapter 7.1, and is covered by the certification report on sustainability statements. (20) The initial and final amounts used to measure the performance of the share price over the five-year period are as follows:- the initial value is the average of the opening price of the BNP Paribas share for the rolling twelve-month period preceding the award date;- the final value is the average of the opening price of the BNP Paribas share in the rolling twelve-month period preceding the payment date. (21) CDP, formerly the “Carbon Disclosure Project”, is an international rating organisation that carries out an exhaustive analysis of climate commitments each year through its “Climate Change” questionnaire. (22) This information is an integral part of the sustainability statements, presented in chapter 7.1, and is covered by the certification report on sustainability statements. (23) FORCC: Financial and Operational Risk Control Committee. (24) SPPI (Solely Payment of Principal and Interest): The SPPI criterion is a criterion required in addition to the management model in order to determine the classification of financial instruments excluding trading activities on the balance sheet. It is linked to the contractual characteristics of the instruments. The tests must be carried out on all assets whose management model is “HTC” (“Held To Collect”, collect contractual cash flows and keep the asset until maturity) or “HTCS” (“Held To Collect and Sell”, collect contractual flows and sell the asset) in order to determine the accounting category: amortised cost, fair value through equity or fair value through profit or loss. (25) CRR3: (“Capital regulatory requirement 3”): this regulation defines the prudential requirements for financial institutions. (26) FORCC: Financial and Operational Risk Control Committee. (27) “SSM: Single Supervisory Mechanism”. The Single Supervisory Mechanism (SSM) places significant banks under the direct supervision of the European Central Bank. (28) CRR3: Capital Requirement Regulation 3. 2024 Review of operations 3.1BNP Paribas consolidated results Solid results Achievement of 2024 objectives Income distribution 3.2Results by division/business line Corporate and Institutional Banking (CIB) Commercial, Personal Banking & Services (CPBS) Investment & Protection Services (IPS) Insurance and Wealth & asset management Corporate centre 3.3Balance sheet Assets Liabilities Minority interests Shareholders’ equity Financing and guarantee commitments 3.4Profit and loss account Revenues from continuing activitie s Operating expenses, depreciation and amortisation Gross operating income from continuing activities Cost of risk and other net losses for risk on financial instruments Operating income from continuing activities Net income attributable to equity holders Minority interests 3.52024 CSR achievements BNP Paribas supporting its clients’ transition 3.6Recent events Products and services Acquisitions and partnerships 3.7Outlook 2025 - 2026 Trajectory Information on trends 3.8Financial structure 3.9Alternative Performance Measures (APM) – Article 223-1 of the AMF’s General regulation Methodology – Comparative analysis at constant scope and exchange rates Reminder 3.1BNP Paribas consolidated results The section includes references for the year 2023 distributable income. The distributable income is the basis for the calculation of the distribution in 2023 and reflects the intrinsic performance of the Group after the impact of the sale of Bank of the West, after the contribution to the constitution of the Single Resolution Fund (SRF) and excluding extraordinary items. In millions of euros 2024 2023 distributable 2023 2024/2023 distributable Revenues 48,831 46,927 45,874 +4.1% Operating Expenses and Dep. (30,193) (29,580) (30,956) +2.1% Gross Operating Income 18,638 17,347 14,918 +7.4% Cost of Risk (2,999) (2,907) (2,907) +3.2% Other net losses for risk on financial instruments (202) 0 (775) n.s. Operating Income 15,437 14,440 11,236 +6.9% Share of Earnings of Equity-Method Entities 701 593 593 +18.2% Other Non-Operating Items 50 (104) (104) n.s. Pre-Tax Income 16,188 14,929 11,725 +8.4% Corporate Income Tax (4,001) (3,266) (3,266) +22.5% Net Income Attributable to Minority Interests (499) (431) (431) +15.8% Net Income from discontinued activities 0 0 2,947 n.s. Net Income Attributable to Equity Holders 11,688 11,232 10,975 +4.1% Cost/income 61.8% 63.0% 67.5% -1.2 pt Solid results BNP Paribas’ diversified and integrated model and its capacity to accompany clients and the economy in a comprehensive way by mobilising its teams, its resources, and its capabilities, continued to drive growth in activity and results in 2024. For the full-year 2024, revenues came to EUR 48,831 million, up by 4.1% compared to 2023 on a distributable basis(1) (hereinafter: 2023). CIB revenues (EUR 17,897 million) increased by 8.4% vs. 2023, driven by very good performances in all three business lines. Global Banking revenues increased by 7.1% vs. 2023, driven, in particular, by Capital Markets in EMEA and Transaction Banking in the Americas and APAC. Global Markets (+9.0% vs. 2023) achieved strong growth at Equity & Prime Services (+27.8%) and stability at FICC. Securities Services reported a robust increase, driven notably by net interest revenues (+9.4% vs. 2023). CPBS(2) revenues were stable at EUR 26,751 million, driven by Commercial & Personal Banking (+2.3% vs. 2023) which offset the decrease at Specialised Businesses (-2.6% vs. 2023). At Commercial & Personal Banking, revenues were stable in the Eurozone as a whole and at CPB in France, despite headwinds(3). BNL and Luxembourg achieved good performances (respectively +4.8% and +5.9% vs. 2023). Revenues decreased at Arval & Leasing Solutions (-6.3% vs. 2023), as they continued to be impacted by the normalisation of used-car prices. This was offset partly by strong growth in organic revenues (financial margin and the margin on services) at Arval (+17.9% vs. 2023) and the increase in Leasing Solutions revenues (+4.2% vs. 2023). Personal Finance (-1.7% vs. 2023) achieved an increase in revenues in its core perimeter(4) (+3.4% vs. 2023). IPS revenues amounted to EUR 5,824 million (+4.2% vs. 2023), driven by revenue growth at Insurance (+7.1% vs. 2023), Wealth Management (+5.3% vs. 2023) and Asset Management (+0.1% vs. 2023; +7.4% vs. 2023, excluding Real Estate and Principal Investments). Wealth Management achieved growth in fees and Asset Management in assets under management and fees. Group operating expenses amounted to EUR 30,193 million, up by 2.1% vs. 2023. They included the exceptional impact of restructuring and adaptation costs (EUR 230 million) and IT reinforcement costs (EUR 341 million) for a total of EUR 571 million. At the division level, operating expenses were up by 4.5% at CIB and by +1.9% at CPBS(5) (+3.2% at Commercial & Personal Banking and -0.9% at Specialised Businesses). They were stable at IPS (+0.5% vs. 2023). The Group’s jaws effect was therefore positive (+2.0 points). In 2024, efficiency savings were in-line with the announced trajectory of EUR 1 billion and will continue into 2025 and 2026. The main measures implemented include: (i) Personal Finance’s adaptation plan; (ii) ongoing optimisation of sourcing and decreasing external spending vs. 2023; (iii) ongoing deployment of Shared Service Centres (+2,200 FTEs since 2023); and (iv) optimisation of premises (~120,000 m2 released since the end of 2023). Group gross operating income thus amounted to EUR 18,638 million, up by 7.4% compared to 2023. Group cost of risk(6) came to EUR 2,999 million (EUR 2,907 million in 2023) and remains at a low level at 33 basis points. Group non-operating exceptional items, at EUR 345 million in 2024, reflect the impact of the reconsolidation of activities in Ukraine(7) (+EUR 226 million) and a capital gain on the divestment of Personal Finance activities in Mexico (+EUR 119 million). Group pre-tax income amounted to EUR 16,188 million, up by 8.4% compared to 2023. With an average corporate tax rate of 26.2%, net income, Group share came to EUR 11,688 million (vs. EUR 11,232 million in 2023). As of 31 December 2024, return on tangible equity, not revaluated, stood at 10.9%. This reflects the BNP Paribas Group’s solid performances on the strength of its diversified and integrated model. Net book value per share(8) stood at 93.7 euros, a 7.0% increase since 31 December 2023. Earnings Per Share amounted to EUR 9.57, up by 8.9% compared to 2023. Achievement of 2024 objectives The 2024 objectives were surpassed: Revenues up by 4.1% vs. 2023 (objective: growth of more than 2% vs. 2023(9)); Jaws effect: +2.0 points (objective: positive jaws effect(10); Cost of risk(11): 33 bps (objective: below 40 bps); Net income: EUR 11.7 billion (objective: above EUR 11.2 billion). Income distribution BNP Paribas confirms its distribution policy (with a payout ratio(12) of 60%, including at least 50% in the form of dividends) for its 2024, 2025 and 2026 financial years and its Board of directors has decided to introduce a semi-annual interim dividend beginning in 2025 based on 50% of the first half-year’ earnings per share with an initial payment that should occur on 30 September 2025 for the first half of 2025. On this basis, the Board of directors will propose to the General Meeting of shareholders held on 13 May 2025, a dividend of 4.79 euros paid out in cash, i.e. a distribution of 50% of 2024 net income(13). The ex-dividend date will be 19 May 2025, and payment will be on 21 May 2025. In addition, a share buyback programme(14) of EUR 1.08 billion will be launched in the 2nd quarter 2025. Capital allocation Revenue from the capital allocated to each division is included in the division’s profit and loss account. The capital allocated to each division corresponds to the amount required to comply with CRR 2/ CRD 5 regulation, also known as Basel 3, and is based on 11% of risk-weighted assets. Risk-weighted assets are calculated as the sum of: the risk-weighted assets for credit and counterparty risk, calculated using the standard approach or the Internal Ratings Based Approach (IRBA) depending on the particular entity or business activity; the regulatory capital requirement for market risks, for adjustment of credit valuation and for operational risk, multiplied by 12.5. Moreover, elements that are deducted from Tier 1 capital are allocated to each division. Last, the capital allocated to the insurance business is based on the minimum solvency capital requirement as defined by Solvency II. 3.2Results by division/business line Corporate and Institutional Banking (CIB) In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 17,897 16,509 +8.4% Operating Expenses and Dep. (10,731) (10,265) +4.5% Gross Operating Income 7,166 6,244 +14.8% Cost of Risk & others 143 63 n.s. Operating Income 7,310 6,307 +15.9% Share of Earnings of Equity-Method Entities 17 13 +28.3% Other Non-Operating Items (4) (18) -79.6% Pre-Tax Income 7,323 6,302 +16.2% Cost/Income 60.0% 62.2% -2.2 pt Allocated Equity (€bn, year to date) 30.6 29.1 +5.3% Global Banking In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 6,236 5,822 +7.1% Operating Expenses and Dep. (2,921) (2,802) +4.3% Gross Operating Income 3,315 3,020 +9.8% Cost of Risk & others 171 74 n.s. Operating Income 3,486 3,094 +12.7% Share of Earnings of Equity-Method Entities 6 5 +6.8% Other Non-Operating Items 0 0 n.s. Pre-Tax Income 3,492 3,100 +12.7% Cost/Income 46.8% 48.1% -1.3 pt Allocated Equity (€bn, year to date) 16.7 16.2 +3.4% Global Markets In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 8,718 7,996 +9.0% Incl. FICC 5,066 5,138 -1.4% Incl. Equity & Prime Services 3,652 2,858 +27.8% Operating Expenses and Dep. (5,649) (5,402) +4.6% Gross Operating Income 3,069 2,594 +18.3% Cost of Risk & others (28) (13) n.s. Operating Income 3,041 2,581 +17.8% Share of Earnings of Equity-Method Entities 2 4 -44.4% Other Non-Operating Items (1) 4 n.s. Pre-Tax Income 3,043 2,590 +17.5% Cost/Income 64.8% 67.6% -2.8 pt Allocated Equity (€bn, year to date) 12.6 11.7 +7.4% Securities Services In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 2,943 2,691 +9.4% Operating Expenses and Dep. (2,161) (2,061) +4.9% Gross Operating Income 782 630 +24.1% Cost of Risk & others 0 1 -79.5% Operating Income 782 631 +23.9% Share of Earnings of Equity-Method Entities 9 4 n.s. Other Non-Operating Items (3) (22) -88.1% Pre-Tax Income 788 612 +28.7% Cost/Income 73.4% 76.6% -3.2 pt Allocated Equity (€bn, year to date) 1.3 1.2 +11.2% For the whole of 2024, CIB revenues amounted to EUR 17,897 million, up by 8.4%, and its operating expenses to EUR 10,731 million, up by 4.5% vs. 2023. The jaws effect was positive by +3.9 points on the whole and positive in each of the three business lines. CIB gross operating income came to EUR 7,166 million, up by 14.8% vs. 2023 and cost of risk came to a net release of EUR 143 million, due mainly to releases of stage 1 and 2 provisions. On this basis, CIB’s pre-tax income increased by 16.2% to EUR 7,323 million. Commercial, Personal Banking & Services (CPBS) In millions of euros 2024 2023 distribuable 2024/2023 distribuable Commercial, Personal Banking & Services – excl. PEL/CEL Revenues 26,751 26,627 +0.5% Operating Expenses and Dep. (16,511) (16,200) +1.9% Gross Operating Income 10,240 10,428 -1.8% Cost of Risk and others (3,272) (2,923) +11.9% Operating Income 6,968 7,504 -7.1% Share of Earnings of Equity-Method Entities 405 337 +20.3% Other Non-Operating Items (234) (181) +29.7% Pre-Tax Income 7,139 7,661 -6.8% Income Attributable to Wealth and Asset Management (348) (330) +5.5% Pre-Tax Income of Commercial, Personal Banking & Services 6,791 7,330 -7.4% Cost/Income 61.7% 60.8% +0.9 pt Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 46.8 43.2 +8.3% Including 100% of Private Banking for the Revenues to Pre-tax income line items. In 2024, revenues(15) amounted to EUR 26,751 million (+0.5% vs. 2023). Commercial & Personal Banking achieved a positive performance (+2.3% vs. 2023) as did New Digital Businesses & Personal Investors (+6.4% vs. 2023). However, revenues at Specialised Businesses decreased by 2.6%. At EUR 16,511 million, operating expenses(16) increased by 1.9% vs. 2023. Gross operating income(17) amounted to EUR 10,240 million, down by 1.8% vs. 2023. Cost of risk and others(18) amounted to EUR 3,272 million (EUR 2,923 million in 2023), an increase caused by one credit situation in France. Pre-tax income(19) amounted to EUR 6,791 million (EUR 7,330 million in 2023). COMMERCIAL & PERSONAL BANKING IN FRANCE (CPBF) In millions of euros 2024 2023 distributable 2024/2023 distributable Commercial and Personal Banking in France – excluding PEL/CEL effects Revenues 6,582 6,593 -0.2% Incl. net interest revenue 3,330 3,498 -4.8% Incl. fees 3,252 3,095 +5.1% Operating Expenses and Dep. (4,597) (4,653) -1.2% Gross Operating Income 1,985 1,940 +2.4% Cost of Risk and others (668) (485) +37.6% Operating Income 1,318 1,454 -9.4% Share of Earnings of Equity-Method Entities 0 0 n.s. Other Non-Operating Items (2) 0 n.s. Pre-Tax Income 1,316 1,454 -9.5% Income Attributable to Wealth and Asset Management (179) (168) +6.8% Pre-Tax Income of CPBF 1,137 1,287 -11.6% Cost/Income 69.8% 70.6% -0.8 pt Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 12.0 11.5 +4.4% Including 100% of Private Banking for the Revenues to Pre-tax income line items. BNL banca commerciale (BNL bc) In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 2,857 2,727 +4.8% Incl. net interest revenue 1,710 1,619 +5.6% Incl. fees 1,147 1,108 +3.5% Operating Expenses and Dep. (1,805) (1,771) +1.9% Gross Operating Income 1,051 956 +10.0% Cost of Risk and others (339) (410) -17.4% Operating Income 713 546 +30.6% Share of Earnings of Equity-Method Entities (2) 0 n.s. Other Non-Operating Items (2) (3) -25.0% Pre-Tax Income 708 542 +30.6% Income Attributable to Wealth and Asset Management (30) (22) +38.0% Pre-Tax Income of BNL bc 678 520 +30.3% Cost/Income 63.2% 65.0% -1.8 pt Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 5.7 5.7 -1.2% Including 100% of Private Banking for the Revenues to Pre-tax income line items. COMMERCIAL & PERSONAL BANKING IN BELGIUM (CPBB) In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 3,756 3,990 -5.9% Incl. net interest revenue 2,609 2,867 -9.0% Incl. fees 1,148 1,123 +2.2% Operating Expenses and Dep. (2,710) (2,705) +0.2% Gross Operating Income 1,046 1,286 -18.6% Cost of Risk and others (19) (86) -78.3% Operating Income 1,028 1,199 -14.3% Share of Earnings of Equity-Method Entities 82 1 n.s. Other Non-Operating Items 5 9 -45.7% Pre-Tax Income 1,115 1,210 -7.8% Income Attributable to Wealth and Asset Management (89) (83) +6.4% Pre-Tax Income of CPBB 1,026 1,126 -8.9% Cost/Income 72.1% 67.8% +4.3 pt Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 6.5 6.1 +7.0% Including 100% of Private Banking for the Revenues to Pre-tax income line items. COMMERCIAL & PERSONAL BANKING IN LUXEMBOURG (CPBL) In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 627 592 +5.9% Incl. net interest revenue 529 497 +6.5% Incl. fees 98 96 +2.8% Operating Expenses and Dep. (304) (294) +3.5% Gross Operating Income 323 298 +8.3% Cost of Risk and others (4) (8) -48.8% Operating Income 319 290 +9.8% Share of Earnings of Equity-Method Entities 0 0 n.s. Other Non-Operating Items 0 5 n.s. Pre-Tax Income 319 296 +7.7% Income Attributable to Wealth and Asset Management (9) (7) +21.8% Pre-Tax Income of CPBL 310 289 +7.4% Cost/Income 48.5% 49.7% -1.2 pt Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 0.9 0.8 +5.9% Including 100% of Private Banking for the Revenues to Pre-tax income line items. EUROPE-MEDITERRANEAN In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 3,155 2,687 +17.4% Incl. net interest revenue 2,542 2,241 +13.4% Incl. fees 613 446 +37.5% Operating Expenses and Dep. (2,028) (1,662) +22.0% Gross Operating Income 1,128 1,025 +10.0% Cost of Risk (165) (44) n.s. Other net losses for risk on financial instruments (201) 0 n.s. Operating Income 761 981 -22.4% Share of Earnings of Equity-Method Entities 299 283 +5.7% Other Non-Operating Items (249) (183) +36.4% Pre-Tax Income 811 1,081 -25.0% Income Attributable to Wealth and Asset Management (38) (47) -19.3% Pre-Tax Income of Europe-Mediterranean 773 1,034 -25.2% Cost/Income 64.3% 61.9% +2.4 pt Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 6.1 5.3 +14.6% Including 100% of Private Banking for the Revenues to Pre-tax income line items. SPECIALISED BUSINESSES – PERSONAL FINANCE In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 5,075 5,163 -1.7% Operating Expenses and Dep. (2,779) (2,952) -5.9% Gross Operating Income 2,296 2,210 +3.9% Cost of Risk and others (1,573) (1,600) -1.7% Operating Income 724 611 +18.5% Share of Earnings of Equity-Method Entities 35 61 -43.2% Other Non-Operating Items 64 4 n.s. Pre-Tax Income 822 676 +21.6% Cost/Income 54.8% 57.2% -2.4 pt Allocated Equity (€bn, year to date) 9.6 9.2 +5.0% SPECIALISED BUSINESSES – ARVAL & LEASING SOLUTIONS In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 3,627 3,869 -6.3% Operating Expenses and Dep. (1,556) (1,477) +5.3% Gross Operating Income 2,071 2,392 -13.4% Cost of Risk and others (202) (167) +21.0% Operating Income 1,869 2,225 -16.0% Share of Earnings of Equity-Method Entities 0 0 n.s. Other Non-Operating Items (62) (14) n.s. Pre-Tax Income 1,807 2,211 -18.3% Cost/Income 42.9% 38.2% +4.7 pt Allocated Equity (€bn, year to date) 5.2 3.8 +36.9% SPECIALISED BUSINESSES – NEW DIGITAL BUSINESSES (NICKEL, FLOA, LYF) AND PERSONAL INVESTORS In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 1,072 1,007 +6.4% Operating Expenses and Dep. (733) (685) +6.9% Gross Operating Income 339 322 +5.4% Cost of Risk and others (102) (123) -17.3% Operating Income 237 198 +19.5% Share of Earnings of Equity-Method Entities (9) (9) +2.1% Other Non-Operating Items 13 0 n.s. Pre-Tax Income 241 190 +26.9% Income Attributable to Wealth and Asset Management (4) (3) +22.8% Pre-Tax Income of New Digital Businesses & Personal Investors 237 187 +27.0% Cost/Income 68.4% 68.0% +0.4 pt Allocated Equity (€bn, year to date) 0.8 0.8 +5.7% Including 100% of Private Banking for the Revenues to Pre-tax income line items. Investment & Protection Services (IPS) In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 5,824 5,590 +4.2% Operating Expenses and Dep. (3,570) (3,552) +0.5% Gross Operating Income 2,254 2,038 +10.6% Cost of Risk and others (15) (13) +15.2% Operating Income 2,239 2,025 +10.6% Share of Earnings of Equity-Method Entities 120 224 -46.3% Other Non-Operating Items (4) (76) n.s. Pre-Tax Income 2,355 2,173 +8.4% Cost/Income 61.3% 63.5% -2.2 pt Allocated Equity (€bn, year to date) 10.7 10.3 +3.9% In 2024, revenues came to EUR 5,824 million, up by 4.2% vs. 2023, driven by growth of revenues, notably fees in Wealth Management, Insurance and Asset Management. The Real Estate business line was impacted by the ongoing lacklustre market. Operating expenses, at EUR 3,570 million, were stable (+0.5% vs. 2023) in connection with operational efficiency measures. The jaws effect was very positive (+3.7 points). Gross operating income came to EUR 2,254 million, up by 10.6% vs. 2023. Pre-tax income came to EUR 2,355 million, up by 8.4% vs. 2023. INSURANCE AND WEALTH & asset MANAGEMENT ➤INSURANCE In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 2,238 2,090 +7.1% Operating Expenses and Dep. (840) (808) +4.0% Gross Operating Income 1,398 1,281 +9.1% Cost of Risk and others 0 0 n.s. Operating Income 1,398 1,281 +9.1% Share of Earnings of Equity-Method Entities 176 193 -8.6% Other Non-Operating Items (4) (80) n.s. Pre-Tax Income 1,570 1,394 +12.6% Cost/Income 37.5% 38.7% -1.2 pt Allocated Equity (€bn, year to date) 7.1 7.0 +2.4% ➤Wealth & Asset Management In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues 3,586 3,500 +2.4% Operating Expenses and Dep. (2,729) (2,744) -0.5% Gross Operating Income 857 756 +13.2% Cost of Risk and others (15) (13) +15.2% Operating Income 842 743 +13.2% Share of Earnings of Equity-Method Entities (56) 31 n.s. Other Non-Operating Items 0 4 n.s. Pre-Tax Income 786 778 +0.9% Cost/Income 76.1% 78.4% -2.3 pt Allocated Equity (€bn, year to date) 3.6 3.4 +6.9% CORPORATE CENTRE In millions of euros 2024 2023 distributable 2024/2023 distributable Revenues (917) (1,088) -15.7% Incl. Restatement of the volatility (Insurance business) (5) (40) -87.6% Incl. Restatement of attributable costs (Internal Distributors) (1,085) (1,041) +4.2% Operating Expenses and Dep. 227 60 n.s. Incl. Restructuring, IT Reinforcement and Adaptation Costs (571) (576) -1.0% Incl. Restatement of attributable costs (Internal Distributors) 1,085 1,041 +4.2% Gross Operating Income (690) (1,027) -32.8% Cost of Risk (54) (37) +45.9% Other net losses for risk on financial instruments (1) 0 n.s. Operating Income (745) (1,064) -30.0% Share of Earnings of Equity-Method Entities 158 19 n.s. Other Non-Operating Items 292 171 +71.1% Pre-Tax Income (294) (874) -66.3% Allocated Equity (€bn, year to date) 4.9 4.5 +8.1% IFRS 17 “Insurance contracts” has replaced IFRS 4 “Insurance contracts” since 1 January 2023. IFRS 17 entered into force together with the implementation of IFRS 9 for insurance activities. The main effects are as follows: Operating expenses deemed “attributable to insurance activities” are recognised in deduction of revenues and no longer booked in operating expenses. These accounting entries apply only to Insurance and to Group entities (other than in the Insurance business line) that distribute insurance contracts (i.e. internal distributors) and have no impact on gross operating income. The impact of these entries for internal distributors is presented in Corporate Centre, in order not to impede the readability of their financial performance; The impact of the volatility generated by the fair value accounting of certain assets through profit and loss (IFRS 9) is presented in Corporate Centre and therefore has no impact on Insurance revenues. Since 1 January 2023, Corporate Centre thus includes restatements, which will be reported separately each quarter to improve readability. 3.3Balance sheet Assets OVERVIEW At 31 December 2024, the total consolidated balance sheet of the BNP Paribas Group amounted to EUR 2,704.9 billion, up by +4.4% from 31 December 2023 (EUR 2,591.5 billion). The Group’s main assets include cash and balances at central banks, financial instruments at fair value through profit or loss, loans and advances to customers, debt securities at amortised cost, investments and other assets related to insurance activities and accrued income and other assets, which, together, accounted for 93% of total assets at 31 December 2024 (94% at 31 December 2023). The +4.4% increase in assets is mainly due to the evolution of: financial instruments at fair value through profit or loss which increased by +11.6% (+EUR 84.8 billion, or EUR 815.7 billion at 31 December 2024); financial instruments at fair value through equity which increased by +42.1% (+EUR 21.2 billion, or EUR 71.4 billion at 31 December 2024); loans and advances to credit institutions which increased by +28.0% (+EUR 6.8 billion, or EUR 31.1 billion at 31 December 2024); loans and advances to customers which increased by +4.8% (+EUR 40.9 billion, or EUR 900.1 billion at 31 December 2024); debt securities at amortised cost which increased by +21.3% (+EUR 25.8 billion or EUR 1470 billion at 31 December 2024); investments and other assets related to insurance activities which increased by +11.6% (+EUR 29.8 billion, or EUR 286.8 billion at 31 December 2024); This increase in mainly due to the acquisition by BNP Paribas Cardif of BCC Vita SpA (+EUR 4 billion) in the second quarter 2024 and Neuflize Vie (+EUR 12 billion) in the fourth quarter 2024; property, plant and equipment and investment property which increased by +11.3% (+EUR 5.1 billion, or EUR 50.3 billion at 31 December 2024); cash and balances at central banks which decreased by -36.7% (-EUR 105.8 billion, or EUR 182.5 billion at 31 December 2024). CASH AND BALANCES AT CENTRAL BANKS Cash and central banks accounted for EUR 182.5 billion at 31 December 2024, a decrease of -36.7% since 31 December 2023 (EUR 288.3 billion). This decrease is due to the redeployment of excess cash to finance business growth. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS Financial assets recognised at market or model value through profit or loss are composed of trading portfolios, financial derivatives and certain assets not held for trading purposes, whose characteristics do not permit recognition at amortised cost or at fair value through equity. Financial assets in the trading portfolio include securities, loans and repurchase agreements. These assets are measured at market or model value at each balance sheet date. Total financial instruments at market value by profit and loss increased by +11.6% (+EUR 84.8 billion) compared with 31 December 2023. This increase is mainly due to the +26.3% increase in securities (+EUR 55.7 billion to EUR 267.4 billion at 31 December 2024), and the +10.5% increase in derivative financial instruments (+EUR 30.6 billion to EUR 322.6 billion at 31 December 2024), partially offset by the -0.7% decrease in loans and repurchase agreements (-EUR 1.5 billion to EUR 225.7 billion at 31 December 2024). LOANS AND ADVANCES TO CREDIT INSTITUTIONS Loans and advances to credit institutions (net of impairment) amounted to EUR 31.1 billion at 31 December 2024, an increase of +EUR 6.8 billion compared with 31 December 2023, and are split between on demand accounts, loans to credit institutions and repurchase agreements. Repurchase agreements were up by 71% for a total of EUR 8.4 billion at 31 December 2024, compared with EUR 4.9 billion at 31 December 2023. Loans to credit institutions increased by +18% to EUR 14.4 billion at 31 December 2024, compared with EUR 12.2 billion at 31 December 2023. Impairment provisions were stable at EUR 85 million at 31 December 2024. LOANS AND ADVANCES TO CUSTOMERS Loans and advances to customers are divided into ordinary accounts, loans to customers, reverse repurchase agreements and finance leases. Loans and advances to customers (net of impairment) amounted to EUR 900.1 billion at 31 December 2024, compared with EUR 859.2 billion at 31 December 2023, increasing by +4.8%. This is due to the increase in financial leases which amounted to EUR 51 billion at 31 December 2024, increasing by +7.0% compared with 31 December 2022 and an increase in demand accounts, which amounted to EUR 56.8 billion at 31 December 2024, increasing by +29.2% compared with 2023, followed by an increase in loans to customers (+3.2%, or EUR 791.8 billion at 31 December 2024, compared with EUR 767 billion at 31 December 2023). Impairment provisions were down to EUR 16.9 billion at 31 December 2024, compared with EUR 17.5 billion at 31 December 2023. DEBT SECURITIES AT AMORTISED COST OR AT MARKET OR MODEL VALUE THROUGH EQUITY Debt securities that are not held for trading purposes and which meet the cash flow criterion established by IFRS 9 are recognised: at amortised cost if managed to collect cash flows by collecting contractual payments over the life of the instrument; or at fair value through equity if held in a business model whose objective is achieved through both the collection of contractual cash flows and the sale of financial assets. Debt securities at amortised cost Debt securities at amortised cost are measured using the effective interest rate method. They totalled EUR 147 billion at 31 December 2024 (net of impairment), compared with EUR 121.2 billion at 31 December 2023, thus increasing by +21.3%. Debt securities at fair value through equity These assets are measured at market or model value through equity at each balance sheet date. They increased by EUR 21.2 billion between 31 December 2023 and 31 December 2024, amounting to EUR 71.4 billion. Debt securities at fair value through equity posted an unrealised loss of -EUR 1,285 million at 31 December 2024, compared with -EUR 585 million at 31 December 2023, a decrease of -EUR 700 million. INVESTMENTS AND OTHER ASSETS RELATED TO INSURANCE ACTIVITIES Financial investments and other assets related to insurance activities mainly include financial instruments corresponding to investments of liabilities relating to insurance contracts and in particular unit-linked contracts, derivative instruments subscribed, investment properties, equity-method investments and assets related to insurance activities. Investments and other assets related to insurance activities amounted to EUR 286.8 billion at 31 December 2024, an increase of +11.6% compared with 31 December 2023. This variation is mainly due to an increase of +10.6% in financial assets at fair value through profit or loss (EUR 173.4 billion at 31 December 2024, compared with EUR 156.8 billion at 31 December 2023), and to an increase of 14.7% in financial assets at fair value through equity (EUR 102.2 billion at 31 December 2024, compared with EUR 89.1 billion at 31 December 2023). Financial assets at fair value through equity had an unrealised loss of -EUR 5.2 billion at 31 December 2024, compared with -EUR 5.1 billion at 31 December 2023, a decrease of –EUR 0.1 billion. ACCRUED INCOME AND OTHER ASSETS Accrued income and other assets are divided between guarantee deposits and bank guarantees paid, collection accounts, accrued income and prepaid expenses, other debtors and miscellaneous assets. Accrued income and other assets amounted to EUR 174.1 billion at 31 December 2024, compared with EUR 170.8 billion at 31 December 2023, up by +2%. This increase is in particular related to guarantee deposits and bank guarantees paid, up by +EUR 5.9 billion (+5.0%). Liabilities OVERVIEW The Group’s liabilities (excluding equity) amounted to EUR 2,570.8 billion at 31 December 2024, up by +4.4% from 31 December 2023 (EUR 2,462.6 billion). The Group’s main liabilities consist of financial instruments at fair value through profit or loss, deposits from customers and from credit institutions, debt securities, accrued expenses and other liabilities, and liabilities related to insurance contracts, which, together, accounted for 96% of the Group’s total liabilities (excluding equity) at 31 December 2024 (97% at 31 December 2023). The +4.4% increase in liabilities is mainly due to the evolution of: financial instruments at fair value through profit or loss which increased by +6.8% (+EUR 50.5 billion, or EUR 791.7 billion at 31 December 2024); deposits from credit institutions which decreased by -29.7% (-EUR 28.3 billion, or EUR 66.9 billion at 31 December 2024); deposits from customers which increased by +4.7% (+EUR 46.3 billion, or EUR 1,034.9 billion at 31 December 2024); debt securities which increased by +3.5% (+EUR 6.6 billion, or EUR 198.1 billion at 31 December 2024); subordinated debts which increased by +28.6% (+EUR 7.1 billion, or EUR 31.8 billion at 31 December 2024); liabilities related to insurance contracts increased by +13.6% (+EUR 29.7 billion, or EUR 247.7 billion at 31 December 2024); This increase in mainly due to the acquisition by BNP Paribas Cardif of BCC Vita SpA (+EUR 4 billion) in the second quarter 2024 and Neuflize Vie (+EUR 12 billion) in the fourth quarter 2024; accrued expenses and other liabilities which decreased by -4.7% (-EUR 6.7 billion, or EUR 137.0 billion at 31 December 2023); FINANCIAL INSTRUMENTS AT FAIR OR MODEL VALUE THROUGH PROFIT OR LOSS The trading portfolio consists mainly of sales of borrowed securities, repurchase agreements and financial derivatives. Financial liabilities designated as at fair or model value through profit or loss are mainly composed of issues originated and structured on behalf of clients, where the risk exposure is managed in combination with the hedging strategy. These types of issues contain significant embedded derivatives, whose changes in value are offset by changes in value of the hedging instruments. Total financial instruments at fair or model value through profit or loss increased by +6.8% (+EUR 50.5 billion) compared with 31 December 2023, related mainly to the +11.4% increase in repurchase agreement operations (+EUR 31.2 billion to EUR 304.8 billion at 31 December 2024), the +8.3% increase in financial derivatives (+EUR 23.1 billion to EUR 302.0 billion at 31 December 2024), and the +25.3% increase in issued debt securities and subordinated debt (+EUR 21.2 billion to EUR 104.9 billion at 31 December 2024), partially offset by the -23.8% decrease in securities (-EUR 25.0 billion to EUR 80.0 billion at 31 December 2024). Deposits from credit institutions Amounts due to credit institutions consist primarily of interbank borrowings, demand deposits and repurchase agreements. Amounts due to credit institutions decreased by -29.7% or -EUR 28.3 billion to EUR 66.9 billion at 31 December 2024. This variation mainly results from a -38.4% decrease in interbank borrowings (EUR 54.8 billion at 31 December 2023 compared with EUR 33.8 billion at 31 December 2024), including repayment of the remaining total of TLTRO III loans amounted to EUR 18 billion. DEPOSITS FROM CUSTOMERS Deposits from customers consist primarily of on-demand deposits, term accounts, savings accounts and repurchase agreements. Deposits from customers amounted to EUR 1,034.9 billion, increasing by +EUR 46.3 billion since 31 December 2023. This is due to an increase of +3.8% in on-demand deposits (an increase of EUR 20.4 billion, to EUR 562.5 billion as at 31 December 2024), an increase of +6.2% in savings accounts (an increase of +EUR 9.4 billion, to EUR 162.1 billion as at 31 December 2024), and an increase of +5.1% in term accounts and short-term notes (an increase of EUR 14.8 billion, to EUR 307.3 billion as at 31 December 2024). DEBT SECURITIES This category includes negotiable certificates of deposit and bond issues but does not include debt securities classified as financial liabilities at fair or model value through profit or loss (see note 4.h to the consolidated financial statements). Debt securities rose from EUR 191.5 billion at 31 December 2023 to EUR 198.1 billion at 31 December 2024. ACCRUED EXPENSE AND OTHER LIABILITIES Accrued expense and other liabilities consist of guarantee deposits received, collection accounts, accrued expense and deferred income, lease liabilities, as well as other creditors and miscellaneous liabilities. Accrued expense and other liabilities amounted to EUR 137 billion at 31 December 2024, compared with EUR 143.7 billion at 31 December 2023, a decrease of -4.7%. This decrease is mainly due to other creditors and miscellaneous liabilities, down by -EUR 5.1 billion (-12.2%). LIABILITIES RELATED TO INSURANCE CONTRACTS Liabilities related to insurance contracts increased by +13.6% compared with 31 December 2023 and amounted to EUR 247.7 billion at 31 December 2024 (EUR 218.0 billion at 31 December 2023). This increase is mainly due to a scope effect related to the acquisition by BNP Paribas Cardif of BCC Vita SpA and Neuflize Vie, as well as the increase in the valuation of underlining asssets related to insurance contracts not measured under the Premium Allocation Approach. Minority interests Minority interests amounted to EUR 6.0 billion at 31 December 2024, compared with EUR 5.1 billion at 31 December 2023. Shareholders’ equity Shareholders’ equity (before dividend payout) amounted to EUR 128.1 billion at 31 December 2024, compared with EUR 123.7 billion at 31 December 2023. The increase of +EUR 4.4 billion is mainly attributable to the profit of the period which amounted to +EUR 11.7 billion, to the distribution of dividends on 2023 profit for -EUR 5.2 billion, to undated super subordinated notes reimbursement for -EUR 1.4 billion, and to the share buyback for -EUR 1.1 billion. Financing and guarantee commitments FINANCING COMMITMENTS Financing commitments given mainly consist of documentary credit, other credit confirmations and other commitments. They increased by EUR 21.2 billion compared with 31 December 2023, to EUR 390.7 billion at 31 December 2024. Financing commitments given to customers increased by +5.3% to EUR 385.3 billion at 31 December 2024 and those given to credit institutions decreased by EUR 1.7 billion to EUR 5.3 billion at 31 December 2024. Financing commitments received consist mainly of financing commitments received from credit institutions in the context of refinancing from central banks. Financing commitments received increased by +10.4%, to EUR 80.4 billion at 31 December 2024, compared with EUR 72.8 billion at 31 December 2023. GUARANTEE COMMITMENTS Guarantee commitments given rose by +9.4% to EUR 208.3 billion at 31 December 2024 (compared with EUR 190.3 billion at 31 December 2023); this increase comes from the guarantee commitments given to credit institutions (an increase of +31.3% to EUR 82.9 billion at 31 December 2023), and the decrease of guarantee commitments to customers by -1.4% to EUR 125.4 billion at 31 December 2024 (compared with EUR 127.2 billion at 31 December 2023) 3.4Profit and loss account Revenues from continuing activities In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Change (2024/2023) Net interest income 19,524 19,058 +2.4% Net commission income 10,701 9,821 +9.0% Net gain on financial instruments at fair value through profit or loss 11,569 10,346 +11.8% Net gain on financial instruments at fair value through equity 209 28 x7.5 Net gain on derecognised financial assets at amortised cost 55 66 -16.7% Net income from insurance activities 2,396 2,320 +3.3% Net income from other activities 4,377 4,235 +3.4% Revenues from continuing activities 48,831 45,874 +6.4% OVERVIEW The increase of +EUR 3.0 billion in the Group’s revenues between 2023 and 2024 was mainly due to the increase of +EUR 1.2 billion in net gain on financial instruments at fair value through profit or loss and +EUR 0.9 billion in net commission income. NET INTEREST INCOME This line item includes net interest income and expense related to customer transactions, interbank transactions, debt instruments issued by the Group, cash flow hedge instruments, derivatives used for interest-rate portfolio hedge, debt securities at amortised cost or at fair value through equity, and non‑trading instruments at fair value through profit or loss. More specifically, the “Net interest income” line item includes: net interest income from loans and advances, including interest, transaction costs, fees and commissions included in the initial value of the loan. These items are calculated using the effective interest method, and recognised in the profit and loss account over the life of the loan; net interest income from debt securities held by the Group, which are measured at amortised cost or at fair value through equity (for the interest calculated using the effective interest method), and from non-trading debt securities at fair value through profit or loss (for the contractual accrued interest); net interest income from cash flow hedges, which are used in particular to hedge the interest rate risk on variable-rate assets and liabilities. Changes in the fair value of cash flow hedges are recorded in equity. The amounts recorded in equity over the life of the hedge are transferred to “Net interest income” as and when the cash flows from the hedged item are recognised as profit or loss in the income statement. Interest income and expense on fair value hedge derivatives are included with the interest generated by the hedged item. Similarly, interest income and expense arising from derivatives used for economic hedge of transactions designated as at fair value through profit or loss are allocated to the same line items as the interest income and expense relating to the underlying transactions. The main factors affecting the level of net interest income are the relative volumes of interest-earning assets and interest-bearing liabilities and the spread between lending and funding rates. Net interest income is also affected by the impact of hedging transactions, and, to a lesser extent, exchange rate fluctuations. Volumes of interest-earning assets and interest-bearing liabilities can be affected by various factors, in addition to general market conditions and growth in the Group’s lending activities (either organically or through acquisitions). One such factor is the Group’s business mix, such as the relative proportion of capital allocated to interest-generating as opposed to fee-generating businesses. The other principal factor affecting net interest income is the spread between lending and funding rates, which itself is influenced by several factors. These include central bank funding rates (which affect both the yield on interest-earning assets and the rates paid on sources of funding, although not always in a linear and simultaneous manner), the proportion of funding sources represented by non-interest bearing customer deposits, government decisions to raise or lower interest rates on regulated savings accounts, the competitive environment, the relative weight of the Group’s various interest-bearing products, which have different margins as a result of different competitive environments, and the Bank’s hedging strategy and accounting treatment of hedging transactions. Net Interest income increased by +2.4% to EUR 19,524 million for the year ended 31 December 2024. This variation is attributable to the combination of the increase on financial instruments designated as at fair value through equity (EUR 2,892 million in 2024, compared with EUR 1,856 million in 2023), the increase in net income on interest rate portflolio hedge instruments (-EUR 1,409 million in 2024, compared with -EUR 1,940 million in 2023), and the decrease in net income from financial instruments at amortised cost (EUR 17,455 million in 2024, compared with EUR 18,269 million in 2023). NET COMMISSION INCOME Net commission income includes commissions on customer transactions, securities and derivatives transactions, financing and guarantee commitments, and asset management and other services. Net commission income increased by +9.0%, from EUR 9,821 million in 2023 to EUR 10,701 million in 2024. Insurance activity fees are included in “Net income from insurance activities”. NET GAIN ON FINANCIAL INSTRUMENTS AT FAIR OR MODEL VALUE THROUGH PROFIT OR LOSS This line item includes all profit and loss items relating to financial instruments managed in the trading book, to financial instruments designated as at fair value through profit or loss by the Group under the fair value option and to non-trading debt securities that do not meet the criteria required to be recognised at amortised cost or at fair value through equity (other than interest income and expense on the last two categories, which are recognised under “Net interest income” as presented above). It also includes gains and losses on non-trading equity instruments that the Group did not choose to measure at fair value through equity. This includes both capital gains and losses on the sale and the marking to fair value of these instruments, along with dividends from equity securities. This line item also includes gains and losses due to the ineffectiveness of fair value hedges, cash flow hedges, and net foreign investment hedges. The gains and losses resulting from cash flows and the remeasurement of financial instruments, either cash or derivatives, must be appreciated as a whole in order to give a fair representation of the profit or loss resulting from trading activities. Net gains on financial instruments as at fair or model value through profit or loss increased by +11.8% from EUR 10,346 million in 2023 to EUR 11,569 million in 2024. The income from items designated as at fair value through profit or loss are partly offset by changes in value of the derivative instruments hedging these assets. NET GAIN ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH EQUITY Net gains on financial instruments at fair value through equity correspond to gains and losses realised on debt securities recognised at fair value through equity and to dividends from equity securities that the Group chose to recognise at fair value through equity. Changes in fair value of these assets are initially recognised under “Changes in assets and liabilities recognised directly in equity”. Upon sale of these assets, realised gains or losses are recognised in the profit or loss account under “Net gains on financial instruments at fair value through equity” for debt securities, or transferred to retained earnings for equity securities. Net gains on financial instruments at fair value through equity amounted to EUR 209 million in 2024 and EUR 28 million in 2023. NET INCOME FROM INSURANCE ACTIVITIES Net income from insurance activities includes insurance service result and financial result. Insurance service result includes revenue from services relating to a group of insurance contracts compensated by related insurance service expenses. Financial result includes investment return compensated by related net finance income or expenses from insurance contracts. Net income from insurance activities increased by EUR 76.0 million compared with 2023 and amounted to EUR 2,396 million in 2024. NET INCOME FROM OTHER ACTIVITIES This item includes, among other things, net income from investment property, assets held under operating lease and property development activities. Net income from other activities increased by 3.4%, from EUR 4,235 million in 2023 to EUR 4,377 million in 2024. This change is mainly due to a EUR 143 million increase in Net income from assets held under operating leases. Operating expenses, depreciation and amortisation In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Change (2024/2023) Operating expenses (27,803) (28,713) -3.2% Depreciation, amortisation and impairment of property, plant and equipment and intangible assets (2,390) (2,243) +6.6% Total operating expenses, depreciation, and amortisation (30,193) (30,956) -2.5% Operating expenses, depreciation and amortisation decreased by -2.5%, from -EUR 30,956 million in 2023 to -EUR 30,193 million in 2024. Gross operating income from continuing activities The Group’s gross operating income increased by +24.9% to EUR 18,638 million for the year ended 31 December 2024 (compared with EUR 14,918 million for the year ended 31 December 2023), due to the increase in revenues from continuing activities (+6.4%) and the decrease in operating expenses (-2.5%). Cost of risk and other net losses for risk on financial instruments In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Change (2024/2023) Net allowances to impairment (2,689) (2,596) +3.6% Recoveries on loans and receivables previously written off 250 250 ns Losses on irrecoverable loans (560) (561) -0.2% Act on assistance to borrowers in Poland ns Total cost of risk for the period (2,999) (2,907) +3.2% Other net losses for risk on financial instruments (202) (775) -73.9% COST OF RISK This line item represents the net amount of impairment losses recognised for credit risks inherent in the Group’s intermediation activities, as well as any impairment loss relating to counterparty risks on over-the-counter derivative instruments. The Group’s cost of risk amounted to EUR 2,999 million in 2024, an increase of +3.2% compared with 2023. The increase in cost of risk in 2024 is mainly due to the increase of EUR 340 million in cost of risk related to impaired assets and commitments (stage 3) offset by a decrease of –EUR 248 million in cost of risk related to assets and commitments classified in stage 1 and 2. As at 31 December 2024, the total amount of doubtful loans, securities and commitments, net of collateral, amounted to EUR 19.9 billion (compared with EUR 19.2 billion as at 31 December 2023), and the related impairment amounted to EUR 13.9 billion, compared with EUR 13.8 billion as at 31 December 2023. The coverage ratio was at 70% at 31 December 2024, compared with 72% at 31 December 2023. More detailed information on the cost of risk per business line is available in chapter 4, note 3 Segment Information, paragraph Income by business segment. OTHER NET LOSSES FOR RISK ON FINANCIAL INSTRUMENTS In 2024, the expense thus recognised relates to EUR 186 million in mortgage loans in Swiss franc or indexed to the Swiss franc in Poland, and to EUR 16 million in losses under the law on assistance to borrowers in Poland. In 2023, it was mainly composed of EUR 450 million in mortgage loans in Swiss franc or indexed to the Swiss franc in Poland, and EUR 221 million in foreign currency loans issued by BNP Paribas Personal Finance. Operating income from continuing activities In total, operating income increased by +37.4%, from EUR 11,236 million in 2023 to EUR 15,437 million for the year ended 31 December 2024. Besides the rise in gross operating income, this change is mainly due to the decrease in other net losses for risk on financial instruments (-73.9%). Net income attributable to equity holders In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Change (2024/2023) Operating income from continuing activities 15,437 11,236 +37.4% Share of earnings of equity-method entities 701 593 +18.2% Net gain on non-current assets (191) (104) +83.7% Goodwill 241 ns Corporate income tax (4,001) (3,266) +22.5% Net income from discontinued activities 2,947 ns Net income attributable to minority interests (499) (431) +15.8% Net income attributable to equity holders 11,688 10,975 +6.5% SHARE OF EARNINGS OF EQUITY-METHOD ENTITIES The share of earnings of equity-method entities increased from EUR 593 million in 2023 to EUR 701 million in 2024. NET GAIN ON NON-CURRENT ASSETS This item includes net realised gains or losses on sales of tangible and intangible assets used in operations and on sales of investments in consolidated undertakings. Net gains on fixed assets decreased by -EUR 87 million (-EUR 191 million in 2024 compared with -EUR 104 million in 2023). In 2024, this item includes the impact of the hyperinflationary situation in Türkiye according to IAS 29 for -EUR 294 million (compared with -EUR 272 million in 2023) and the loss of control on Cetelem Mexico for +EUR 119 million, and the sale of the buildings for +EUR 173 million in 2023. CHANGE IN VALUE OF GOODWILL Changes in the value of goodwill amounted to EUR 241 million in 2024 (including EUR 226 million of negative goodwill on UkrSibbank), compared with no change in the value in 2023. INCOME TAX EXPENSE The Group recorded an income tax expense of EUR 4,001 million in 2024, an increase compared with the income tax expense of EUR 3,266 million recorded in 2023. NET INCOME FROM DISCONTINUED ACTIVITIES There was no net income from discontinued activities in 2024 compared with EUR 2,947 million in 2023 (related to the net capital gain on the disposal of the retail and commercial banking activities in the United States operated by the BancWest cash-generating unit). Minority interests The share of earnings attributable to minority interests in consolidated companies increased by +EUR 68 million (EUR 499 million in 2024 compared with EUR 431 million in 2023). 3.52024 CSR achievements BNP Paribas supporting its clients’ transition For more than fifteen years, BNP Paribas has made strategic decisions aimed at contributing to a more sustainable society and seizing the opportunities offered by the transformations of the economy. In an organised, sustainable, and determined manner, the Group has placed sustainable development at the heart of its strategy and is supporting its customers on a daily basis in their transition by offering them products and services adapted to their needs. In 2024, BNP Paribas achieved very solid financial and extra-financial results. Its diversified and integrated business model continues to demonstrate its ability to deliver revenue growth and manage risks while accelerating its financing and financial services to players pursuing the energy and ecological transition. The Group has set the objective of supporting its customers in their low-carbon transition for a total amount of EUR 200 billion between 2022 and 2025. By the end of 2024, EUR 179 billion have already been deployed, including EUR 75 billion for 2024 alone, i.e. a 25% annual production increase. This amount includes loans and bonds contributing to the low-carbon transition as well as financial support provided in some cases in the form of private placements, financial advice or initial public offerings (IPOs). This commitment benefited all the Group’s customers, for example in the areas of housing renovation and sustainable mobility for individual clients, renewable energy and the decarbonisation of production processes for companies of all sizes, the financing of institutional clients or the investment in startups developing innovative solutions to support the transition. In addition, the Group integrates ESG criteria into its asset management and offers sustainable protection, savings, investment, and real estate services. For several years, BNP Paribas Asset Management has broadened its range of products and services favouring investments in assets making a positive contribution to the transition. The Group has set the objective of reaching EUR 300 billion in assets under management in open-ended funds distributed in Europe by BNP Paribas Asset Management under articles 8 and 9, according to SFDR(20), by the end of 2025. At end-2024, this amount has reached EUR 285 billion, representing 90% of the open-ended funds distributed by BNP Paribas Asset Management in Europe. Through several emblematic 2024 achievements, this presentation aims at illustrating how BNP Paribas implements its sustainable development strategy every day in all its business lines, serving the energy and ecological transition of all its clients, individuals and companies, in the various sectors of the economy. Supporting the transition to a more sustainable economy BNP Paribas’ sustainable development strategy is operationally embedded in its strategic plan and is based on three pillars. 1.Committing to working alongside all its clients in the transition to a sustainable and low-carbon economy, leveraging all the Group’s business lines and expertise BNP Paribas’ strategy and achievements establish the Group as a key player in the financing of the energy and ecological transition. At the end of 2024, BNP Paribas is ranking number one worldwide in terms of sustainable bonds and loans for the second consecutive year according to Dealogic, with a total amount of USD 69.2 billion, and also number one in green bonds also for the second consecutive year, with USD 27.9 billion. In 2024, specialised publications also highlighted BNP Paribas’ high level of ESG performance. For example, the International Financing Review (IFR) magazine named the Group “ESG Financing House of the Year” for the second consecutive year. 2.Aligning the Group’s portfolios with trajectories compatible with carbon neutrality by 2050 According to the World Energy Outlook’s Net Zero Emissions scenario published by the International Energy Agency (IEA) in 2024, low-carbon energy should account for more than 95% of global investments in the energy sector by 2035, i.e. a total of USD 5,200 billion, to enable a carbon-neutral economy in 2050. By mobilising significant resources throughout all its business lines to support its clients in their efforts to achieve their transition, the Group is participating in the deployment of the massive investments needed to make it possible. Since 2022, BNP Paribas has monitored its financing of high greenhouse gas (GHG) emitting sectors. This commitment translates into decarbonisation targets for nine economic sectors(21) in its credit portfolio, that together account for the vast majority of global GHG emissions. To measure the progress accomplished and the progress yet to be made with its clients, BNP Paribas publishes an annual update of the emission indicators of its credit portfolio by sector(22). In the energy production sector, BNP Paribas has set the objective that low-carbon energy(23), mainly renewable(24), shall represent 90% of the Group’s financing to energy production by 2030, to reach at least EUR 40 billion of credit exposure. At the end of September 2024, low-carbon energy represented 76% of energy production credit portfolio, for a total of EUR 36.8 billion (+30% compared to 2022), of which EUR 34.2 billion for renewable energy. ➤WEIGHT OF FOSSIL FUELS AND LOW-CARBON ENERGY IN BNP PARIBAS CREDIT EXPOSURE FOR ENERGY PRODUCTION Source: Internal management data – loans outstanding in EUR billion as of 30 September. Illustrating this strong commitment, the Energy Supply Banking Ratio published by Bloomberg(25) ranks BNP Paribas at the top of the ten major international banks in the ranking for 2023, with a ratio of EUR 3.18 in low-carbon energy financing for each euro in fossil fuel financing, above the bank sector average at 0.89. The asset manager BNP Paribas Asset Management and the insurer BNP Paribas Cardif have also set decarbonisation targets for their investment portfolios and are engaging with the companies in which they invest through the exercise of their voting rights and shareholder dialogue. 3.Strengthening the expertise and the systems supporting the transition, thanks to monitoring tools and dedicated training To implement its CSR strategy and support its clients’ transition, BNP Paribas is adapting its internal organisation. This translates into the roll-out of dedicated processes and monitoring tools, as well as the strengthening of its employees’ training offer. Since 2021, the Group has relied on the ESG Assessment, an ESG evaluation tool developed for companies and financial institutions. This tool provides a more systematic and comprehensive review of ESG topics throughout the credit chain: from the onboarding to the grant of a credit, the monitoring and the reporting. By covering five dimensions of the environment (climate and biodiversity), social (right of workers and human rights of local communities and consumers) and governance (business ethics) areas, it provides an overview of the client’s ESG profile and thus helps BNP Paribas directing its financing towards clients and projects that align with its decarbonisation trajectory. In addition, with nearly 133,000 employees trained since its launch at the end of 2022, and more than 77,000 in 2024 alone, the Sustainability Academy platform embodies the Group’s ambition to equip all its employees with the knowledge and skills necessary to achieve its objectives in terms of sustainable development and finance. 1.SERVING INDIVIDUAL CUSTOMERS To help its individual clients adapting their lifestyles and consumption habits to the changes of the transition, BNP Paribas supports them in matters of their everyday lives, both in terms of housing and mobility. The European housing stock is responsible for 40% of the EU’s total energy consumption and 36% of its GHG emissions in Europe. According to the European Commission, more than 220 million buildings built before 2001 would need to be renovated, which represents 85% of the housing stock of the EU Member States(26). For its part, transport accounts for nearly 15% of total GHG emissions worldwide(27): decarbonising mobility is therefore also one of the essential levers of the ecological transition. The Group’s actions are more particularly carried out by its entities Arval, BNP Paribas Personal Finance, BNP Paribas Cardif and its commercial banks. They aim to provide individuals with access to solutions that, first, enable them to improve the energy efficiency of their homes or to acquire homes with better environmental performance and, second, to travel in a more environmentally friendly way, by giving them access to less polluting vehicles or alternative mobility solutions. A significant acceleration in the financing of the transition in favour of individual customers can be noted. For instance, BNP Paribas Personal Finance’s total outstanding amount in sustainable finance dedicated to energy renovation of housing and sustainable mobility amounted to EUR 10 billion at the end of 2024, up by 12% year-on-year. A.Supporting the energy renovation of housing The Group has developed financial services and solutions to support its individual clients in their real estate acquisition and energy renovation projects. Within the Commercial, Personal & Banking Services (CPBS) division, the initiative My Sustainable Home structures the approach of commercial banks in Europe around four main levers: raise awareness and advise customers on the production and collection of energy performance certificates (EPC), in particular through a mandatory collection when granting new mortgages; promote the purchase of energy-efficient housing, thanks to attractive financing conditions; meet the energy renovation needs of existing buildings, via loans at subsidised rates or backed by public aid programmes; develop extra-financial services through partnerships to support customers’ home energy renovation projects from start to finish, from the scoping of the renovation to the EPC produced after completion to assess its impact (energy diagnosis, budget simulator, network of professionals, etc.). To support the clients of the Commercial & Personal Banking in France in their home energy renovation, BNP Paribas signed a partnership with EDF Group in February 2024. With IZI by EDF, financial advisors help customers identifying the renovations to be conducted in their home through a dedicated simulator. It then directs them to the most suitable renovation solution according to their situation and mandates local and certified professionals to carry out their work. B.Promoting a more sustainable mobility The electrification of individual vehicles and corporate fleets, the development of soft mobility and vehicle-sharing solutions are prompt and effective solutions to reduce GHG emissions, while maintaining a robust industry and significant travel capacities. Created at the end of 2022, the initiative and associated-brand BNP Paribas Mobility bring together all the Group’s business lines involved in the mobility ecosystem to support individual customers in their mobility needs with a wide range of offers: adapted financing, through commercial banks, Arval and BNP Paribas Personal Finance; vehicles, with Arval and BNP Paribas Personal Finance providing a large catalogue with new, recent, or second-hand references; personalised insurance, with BNP Paribas Cardif. In France, the platform Mobility4you is tailored to each mobility project, based on the customer’s travel needs, budget and environmental impact. It suggests a selection of turnkey offers, including: mobility solutions with new, recent, or second-hand vehicles, thermal, electric or hybrid, as well as soft mobility options, such as bicycles or electric scooters; adapted financing solutions (personal loan, leasing with purchase option or long-term leasing) and insurance, that can be subscribed on the platform. Launched in 2024, the combined offer Arval Charging Services and Leasing Solutions Charge & Lease aims to facilitate access to vehicle charging at home and at the workplace. This all-in-one package includes the charging station installation, maintenance, removal, and recycling.  At the end of 2024, BNP Paribas signed a partnership with French bank La Banque Postale to distribute a mobility offer to its customers. This project includes the creation, by early 2026, of a digital platform offering new and low-emission recent second-hand vehicles, with the associated financing solutions (leasing with purchase option, long-term leasing) and insurance. The need to support a just transition(28) 72% of Europeans surveyed believe that efforts to fight global warming are likely to create inequalities. With its second Just Transition Observatory(29), published in May 2024, the Group focused on a central question: how can we contribute to making the transition accessible to all? Convinced that the energy and ecological transition will only happen if it involves society as a whole, BNP Paribas offers products and services designed to make the transition more accessible and affordable. For example, in Poland, in 2024 the Group supported McCain Foods’ regenerative agriculture programme, which aims to support potato producers in their transition to a regenerative agriculture. BNP Paribas offers, among other, loans at reduced rates to producers that are members of the programme. In the housing sector, BNP Paribas Fortis’ HappyNest programme allows very high environmental performance apartments to be more accessible to first-time buyers: they can rent a new and energy-efficient home and buy it after a few years, if they wish to, with the rents already paid being taken into account in the final purchase price. Finally, BNP Paribas Asset Management has launched the BNP Paribas Global Equity Net Zero Transition fund, article 8 according to SFDR, which is one of the few equity funds active on the market with the net zero emissions alignment as main its objective and also including a just transition dimension. 2.SERVING CORPORATES AND INSTITUTIONAL CLIENTS BNP Paribas aims to bring tailor-made support to all its clients by providing them with its sector expertise and an organisation dedicated to their issues. Since 2021, with the creation of the Low-Carbon Transition Group (LCTG), the Group has developed a global platform bringing together a network of around 250 specialised bankers who support international corporates and institutional clients in accelerating their transition to a sustainable and low-carbon economy. A continuum of banking and non-banking solutions is provided for the decarbonisation of the economy, in particular the energy, mobility and industry sectors. In addition to renewable energies and nuclear power, BNP Paribas is developing specific expertise to support the development of new value chains such as batteries, green hydrogen and low-carbon fuels, as well as CO2 capture. Created in 2022, the Low-Carbon Transition for SMEs & MidCaps initiative brings together around 100 experts and supports the low-carbon transition of small and medium-sized enterprises (SMEs) and mid-caps in France, Belgium, Italy, Luxembourg, and Poland. This platform offers specific support for the transition of the agricultural and agri-food sectors by relying on a pan-European community of experts. Since May 2024, Commercial & Personal Banking in France has offered a sustainable loan (called “decarbonisation financing”) for SMEs, mid-caps and non-profits committed to a GHG reduction trajectory. The credit rate is adjusted based on the clients’ GHG emissions’ reduction. Serving sovereign, supranational and agency issuers In 2024, BNP Paribas participated in the record EUR 750 million inaugural green bond of the Republic of Iceland to finance the country’s carbon neutrality initiatives: investments in infrastructure for electric bikes, the energy transition of vehicles and infrastructure, green buildings, and adaptation to the circular economy. This first green bond attracted over EUR seven billion in orders from more than 270 investors. BNP Paribas was also involved in the issuance of the first sustainable hybrid bond for the African Development Bank, a multilateral development bank. This USD 750 million bond aims to finance environmental and social projects across Africa, including renewable energy generation, sustainable management of natural resources, access to basic infrastructure and food security. A.Supporting low-carbon energies To help financing the massive investments needed for the development of low-carbon energies, BNP Paribas supports companies working to build new capacities and participates in the financing of future technologies. In 2024, relying in particular on the Low-Carbon Transition Group, it played a significant role in many notable renewable energy transactions around the world, including: the USD 1.7 billion financing for the Bellefield project in California, developed by AES Clean Energy which combines a 500 MW photovoltaic plant and a 500 MW battery energy storage system. This combination of photovoltaic and battery storage technologies allows the integration of a larger volume of green electricity into power grids; the financing of nearly EUR 177 million for Solarpack, which aims to build the largest photovoltaic solar park in Peru, providing renewable energy to nearly 444,000 households by 2025; the financing of close to EUR 600 million for the deployment of 16 solar photovoltaic projects in Spain with a combined capacity of 842 MW by the operator Bruc Energy. The electricity will decarbonise large industrial customers active in various sectors such as pharmaceuticals, logistics and ceramics; the structuring of the AUD 650 million financing in favour of Akaysha Energy to build a 1,660 MWh battery storage system, making it one of the largest in the world. BNP Paribas is the main source of funding for storage systems in Australia, a technology that is essential to enable a greater deployment of renewable energy in electricity grids. In addition, in February 2025, BNP Paribas signed an agreement with the European Investment Bank (EIB) to generate up to EUR eight billion in wind energy investments. By boosting funding for the wind sector in the European Union (EU), this initiative aims to increase wind generation capacity by 32 GW out of the total capacity of 117 GW estimated to be needed to meet the EU’s target of producing at least 45% of its energy from renewable sources by 2030(30). Finally, BNP Paribas Asset Management’s Climate Impact Infrastructure Debt fund, classified article 9 according to SFDR, offers a financing solution to projects and players involved in the energy transition in continental Europe, focusing on renewable energy, green mobility, circular economy, and energy efficiency. Its ambition is to raise between EUR 500 and 750 million from institutional investors. B.Accelerating the decarbonisation of the economy and promoting the responsible use of resources BNP Paribas is committed to aligning its activities with trajectories compatible with carbon neutrality by 2050. On their investments’ portfolios, BNP Paribas Asset Management and BNP Paribas Cardif engage with the companies in which they invest through the exercise of voting rights and shareholder dialogue. On its credit portfolio, the Group has set alignment objectives in nine of the most carbon-intensive sectors of the economy, in terms of emissions intensity for eight sectors and in absolute emissions for the oil and gas sector. These trajectories for 2025 and 2030 as well as their calculation and monitoring methodologies are described in section 7.1.2 Climate change of the Sustainability statements. To achieve these objectives, BNP Paribas supports its clients by offering them financial products and services adapted to their issues. Landmark 2024 transactions include: the EUR 1.75 billion sustainability-linked bond for Enel, a leading integrated player in the global electricity and renewable energy markets. The interest rate will depend on the achievement of defined targets, including the Scope 1 emissions intensity related to power generation and the proportion of Capex aligned with the European taxonomy; the EUR 4.2 billion financing of Stegra (previously called H2 Green Steel) for the construction of the world’s first large-scale green steel production plant in Sweden, incorporating the largest electrolyser in Europe. Due to the utilisation of green hydrogen, the plant aims to produce steel with CO2 emissions up to 95% lower than steel made with coke-fired blast furnaces; the financing of two new Airbus A220-300 aircrafts operated by Air France under a sustainability-linked loan. The energy efficiency of the new aircrafts will contribute to the airline’s emissions’ reduction targets; the USD 1.1 billion green loan to Hapag-Lloyd, one of the world’s leading container shipping companies, to finance six new container ships equipped with low-emission and fuel-efficient dual-fuel LNG (liquefied natural gas) engines that can use biogas. BNP Paribas also contributes to the resilience of companies by giving them the means to foster the responsible use of resources. It supports initiatives that reduce natural resources consumption and waste production, and participated in several important transactions in 2024: the USD 2.75 billion green bond for Smurfit Kappa, one of the world’s largest packaging manufacturers, to finance the production of paper-based packaging with recycled fibers and the manufacture of paper from certified raw materials; the EUR 550 million blue bond for Saur to support initiatives related to sustainable water management such as water production and distribution, wastewater collection and treatment, or water desalination using technologies aimed at minimising the environmental impact. Eventually, in 2024, BNP Paribas Asset Management launched several new funds in line with this strategy, including the Future Forest Fund in partnership with International Woodland Company (IWC). This first forest-dedicated fund will invest in sustainably managed forests. Classified article 9 according to SFDR, it targets an outstanding amount between USD 500 and 750 million. C.Financing sustainable mobility infrastructure and players BNP Paribas is supporting the transition of mobility across its entire value chain: the transition of traditional infrastructure, the deployment of new infrastructure such as electric charging stations, the transition of manufacturers and suppliers in the automotive sector and the electrification of public transport. Among the landmark transactions involving BNP Paribas are: the support of Île-de-France Mobilités, the world’s first public sector company to issue a 20-year European Green Bond (“EuGB(31)”). This EUR 1 billion green bond will fund projects to develop low-carbon public transport in the Île-de-France region (France), such as the renewal of electric rolling stock (trains, metros, trams) and the deployment of low-emission buses and electric bicycles’ fleets; the EUR 304 million fundraising of Electra, a company that rolls out ultra-fast charging stations across Europe; the EUR 850 million green bond issue for Valeo, a world leader in automotive technologies and car electrification, whose proceeds will be used for financing projects and investments related to low-carbon mobility and in particular vehicle electrification. 3.SUPPORTING STARTUPS AND ENTREPRENEURS For many years, BNP Paribas has provided equity support to startups and entrepreneurs that contribute to the acceleration of the energy and ecological transition, particularly through dedicated envelopes. Some of the Group’s latest notable investments in European startups include: Klim (Germany), a platform of solutions and support for farmers willing to adopt regenerative practices. BNP Paribas led their USD 22 million fundraising in 2024; CarbonWorks (France), which aims to capture CO2 from industrial sites using photosynthetic microalgae; Ecodair (France), an IT refurbishment specialist, in which 70% of its workforce benefits from a personalised support programme in connection with a situation of disability, fragility or precariousness; Ecov (France), a designer and operator of shared mobility, which offers carpooling lines with predefined stops in suburban and low-density areas to complement the public transport offer; Plan A (Germany), which provides companies with a software that automates the calculation of carbon emissions and enables decarbonisation planning and ESG reporting; Kayrros (France), which has developed a technology to identify methane emissions on a global scale. BNP Paribas Asset Management, in partnership with the Solar Impulse Foundation, has launched the BNP Paribas Solar Impulse Venture Fund. This fund, which is funded at 50% by BNP Paribas, has announced its final closing at the beginning of 2025 for a total amount of EUR 172 million. This fundraising will enable around fifteen investments in high growth potential European and North American startups that accelerate the ecological transition and strive for biodiversity and the circular economy. Since its launch in 2022, the fund has already invested in five companies that are driving sustainable innovations: Nature Metrics (England), a solution for measuring biodiversity; Phenix (France), which fights against waste by recovering unsold food and non-food items; Axioma (France), a bio-solutions start-up which targets to accelerate the ecological transition of agriculture mitigating hydric stress for plants; Hello Watt (France), an energy renovation one-stop shop for homeowners; Chemix (United States), which develops next-generation batteries for electric vehicles. In conclusion, BNP Paribas has demonstrated its commitment to a sustainable and low-carbon economy over time by integrating sustainable development at the heart of its strategy. The achievements of the year 2024 illustrate the Group’s ability to support its customers in their transition by offering them innovative and adapted financial and extra-financial solutions. Through the financing of renewable energy projects, the promotion of sustainable mobility and the support of individuals and companies in their decarbonisation efforts, BNP Paribas is positioning itself as a key player in the energy and ecological transition. The Group is determined to pursue its actions in favour of the transition, while ensuring that this transition is just and inclusive for all its customers and involving society as a whole. 3.6Recent events Products and services BNP Paribas regularly introduces new products and services for its customers. More information is available on the Group’s websites, including in the press releases at group.bnpparibas and invest.bnpparibas. Acquisitions and partnerships Since 4 February 2025, date of publication of the 2024 annual results, no significant events have occured that should be mentioned in this section. 3.7Outlook 2025 - 2026 Trajectory BNP Paribas confirms its ROTE trajectory out to 2026 while specifying the following objectives: Revenues: average growth rate above 5% (including the AXA IM project(32)) and ~+4% (excluding the AXA IM project(33)) for 2024-2026; Jaws effect: ~+1.5 point/year on average for 2024-2026; Cost of risk: below 40 bps in 2025 and 2026; Net income: average growth rate greater than 7% for 2024-2026; Earnings Per Share: average growth rate greater than 8% in 2024-2026; Pre-FRTB CET1 ratio: ~12.3% as of 31/12/2025 and 31/12/2026 after the ongoing acquisitions; 2025 ROTE: 11.5%; 2026 ROTE: 12%. The 2026 trajectory is based on the strengths of the diversified and integrated model, as well as the strategic priorities of each division: CIB, a cutting-edge platform and powerful growth engine, continues to make market share gains on the strength of a diversified client franchise, a low risk profile and optimised capital. CPBS in 2025 will be energised by a new strategic(34) plan for CPBF and an extension of Personal Finance’s strategic plan out to 2028, with the goal of raising the profitability of these activities to Group level, i.e. an expected +1% impact on Group ROTE, including +0.5% by 2026. Revenues at Commercial & Personal Banking will be driven by the new interest-rate environment. In the Eurozone, they are expected to increase by more than +3% in 2025 compared to 2024. IPS will maintain its strong organic growth momentum in Insurance, Asset Management and Wealth Management. Beyond that, its strong acceleration will be driven by the integration of external growth developments: AXA IM project(35), Wealth Management and Life Insurance. On this basis, the pre-tax net income of IPS is expected to increase by more than one third in two years, by 2026. And, lastly, the entire Group will continue its operational efficiency measures in 2025 and 2026, at the pace of €600m in savings per year. ➤THE LAST PHASE OF THE PLAN IS UNDER WAY AT FULL CAPACITY (1) Increase in Group revenues between 2024 and 2026 minus the increase in Group operating expenses between 2024 and 2026 (2) Net income, Group share (3) Earnings per share calculated on the basis of net income, Group share of 2024 adjusted for the remuneration of undated super-subordinated notes and the average end-of-period number of shares. (4) Compound annual growth rate (CAGR) (5) RoTE: return on tangible equity (6) Subject to agreements with the relevant authorities Information on trends Information on trends (Macroeconomic conditions and Legislation and regulations applicable to financial institutions) are described in the section on Principal and Emerging Risks for the year in the Risks and Capital Adequacy chapter. 3.8Financial structure The common equity Tier 1 ratio stood at 12.9% as of 31 December 2024, up by 20 basis points compared to 30 September 2024 and still far above SREP requirements (10.33%). This increase results from the combined effects of: (i) organic capital generation net of changes in risk-weighted assets in 4Q24 (+30 basis points); (ii) distribution of the 4Q24 result (-20 basis points); and (iii) the securitisation / credit insurance programme (+10 basis points). As of 1 January 2025, the CET1 ratio should stand at 12.4% after factoring in the full impact of Basel 4 (excluding FRTB) of -50 basis points. The common equity tier 1 ratio has decreased by 30 basis points compared to December 31, 2023, due to several factors: The impact of the prudential reconsolidation of Arval since July 1, 2024 (-30 bps); The 2024 result after accounting for a 60% distribution rate net of the organic growth of risk-weighted assets (+30 bps); The optimization of risk-weighted assets linked to the implementation of securitization and credit insurance programs (+10 bps); The impact of model updates (-25 bps); The redeployment of capital related to the sale of Bank of the West (-15 bps). The leverage ratio(36) stood at 4.6% as of 31 December 2024. The liquidity coverage ratio(37) (end-of-period) stood at a solid level of 137% as of 31 December 2024 (124% as of 30 September 2024) and the immediately available liquidity reserve(38) came to €480bn as of 31 December 2024, equivalent to more than one year to manoeuvre in terms of wholesale funding. 3.9Alternative Performance Measures (APM) – Article 223-1 of the AMF’s General regulation Alternative Performance Measures Definition Reason for use Insurance P&L aggregates (Revenues, Operating expenses, Gross operating income, Operating income, Pre-tax income) Insurance P&L aggregates (Revenues, Gross operating income, Operating income, Pre-tax income) excluding the volatility generated by the fair value accounting of certain assets through profit and loss (IFRS 9) transferred to Corporate Centre; Gains or losses realised in the event of divestments, as well as potential long-term depreciations are included in the Insurance income profit and loss account. A reconciliation with Group P&L aggregates is provided in the tables “Quarterly Series”. Presentation of the Insurance result reflecting operational and intrinsic performance (technical and financial) Corporate Centre P&L aggregates P&L aggregates of “Corporate Centre, including restatement of the volatility (IFRS 9) and attributable costs (internal distributors) related to Insurance activities”, following the application from 1 January 2023 of IFRS 17 “insurance contracts” in conjunction with the application of IFRS 9 for insurance activities, including: Restatement in Corporate Centre revenues of the volatility to the financial result generated by the IFRS 9 fair value recognition of certain Insurance assets; Operating expenses deemed “attributable to insurance activities”, net of internal margin, are recognised in deduction from revenues and no longer booked as operating expenses. These accounting entries relate exclusively to the Insurance business and Group entities (excluding the Insurance business) that distribute insurance contracts (known as internal distributors) and have no effect on gross operating income. The impact of entries related to internal distribution contracts is borne by the “Corporate Centre”. A reconciliation with Group P&L aggregates is provided in the tables “Quarterly Series” Transfer to Corporate Centre of the impact of operating expenses “attributable to insurance activities” on internal distribution contracts in order not to impede the readability of the financial performance of the various business lines. Operating division profit and loss account aggregates (revenues, net interest revenue, operating expenses, gross operating income, operating income, pre-tax income) Sum of CPBS’ profit and loss account aggregates (with Commercial & Personal Banking’ profit and loss account aggregates, including 2/3 of Private Banking in France, Italy, Belgium, Luxembourg, Germany, Poland and in Türkiye), IPS and CIB. BNP Paribas Group profit and loss account aggregates = operating division profit and loss account aggregates + Corporate Centre profit and loss account aggregates. Reconciliation with Group profit and loss account aggregates is provided in the tables “Results by Core Business”. Net interest revenue mentioned in Commercial & Personal Banking includes the net interest margin (as defined in note 2.a of the financial statements), as well as, to a lesser extent, other revenues (as defined in notes 2.c, 2.d and 2.e of the financial statements), excluding fees (note 2.b of the financial statements). P&L aggregates of Commercial & Personal Banking or Specialised Businesses distributing insurance contracts exclude the impact of the application of IFRS 17 on the accounting presentation of operating expenses deemed “attributable to insurance activities” in deduction of revenues and no longer operating expenses, with the impact carried by Corporate Centre. Representative measure of the BNP Paribas Group’s operating performance Profit and loss account aggregates of Commercial & Personal Banking activity with 100% of Private Banking Profit and loss account aggregate of a Commercial & Personal Banking activity including the whole profit and loss account of Private Banking Reconciliation with Group profit and loss account aggregates is provided in the tables “Quarterly series”. Representative measure of the performance of Commercial & Personal Banking activity including the total performance of Private Banking (before sharing the profit & loss account with the Wealth Management business, Private Banking being under a joint responsibility of Commercial & Personal Banking (2/3) and Wealth Management business (1/3)) Profit and loss account aggregates, excluding PEL/CEL effects (revenues, gross operating income, operating income, pre-tax income) Profit and loss account aggregates, excluding PEL/CEL effects. Reconciliation with Group profit and loss account aggregates is provided in the “Quarterly series” tables. Representative measure of the aggregates of the period excluding changes in the provision that accounts for the risk generated by PEL and CEL accounts during their lifetime Cost/income ratio Cost to income ratio Measure of operational efficiency in the banking sector Cost of risk/Customer loans at the beginning of the period (in basis points) Cost of risk (in €m) divided by customer loans at the beginning of the period Cost of risk does not include “Other net losses for risk on financial instruments” Measure of the risk level by business in percentage of the volume of outstanding loans Evolution of operating expenses excluding IFRIC 21 Change in operating expenses excluding taxes and contributions subject to IFRIC 21. Representative measure of the change in operating expenses’ excluding the taxes and contributions subject to IFRIC 21 booked almost entirely in the 1st half of the year, given in order to avoid any confusion compared to other quarters Return on Equity (ROE) Details of the ROE calculation are disclosed in the Appendix “Return on Equity and Permanent Shareholders’ Equity” of the results’ presentation Measure of the BNP Paribas Group’s return on equity Return on normalized equity (RONE) Ratio of annualised net income before tax over average allocated notional equity over the period. For non-insurance businesses, notional equity is allocated on the basis of a multiple of 11% of risk weighted assets. For the Group’s consolidated insurance companies, notional equity is allocated based on a multiple of 145% of the SCR (Solvency Capital Requirement). Measure of operational performance representative of the return on notional equity allocated to the business lines or operating divisions, taking into account their risk exposure. Return on Tangible Equity (ROTE) Details of the ROTE calculation are disclosed in the Appendix “Return on Equity and Permanent Shareholders’ Equity” of the results’ presentation Measure of the BNP Paribas Group’s return on tangible equity Distributable Net Income P&L aggregates up to the net income adjusted in accordance with the announcements made in February 2023 to reflect the Group’s intrinsic performance in 2023, pivotal year, after the sale of Bank of the West on 1 February 2023 but also as the last expected year of the ramp-up of the Single Resolution Fund, marked by extraordinary items. Adjustments are detailed in the 2023 results’ presentation: include the effect of the anticipation of the end of the ramp-up of the Single Resolution Fund in 2023; exclude the net income of entities intended to be sold (application of IFRS 5) (notably the capital gain on the sale of Bank of the West) and additional items related to the sale of Bank of the West; exclude extraordinary items such as the extraordinary negative impact of the hedging adjustment related to changes in the TLTRO terms decided by the ECB in the fourth quarter 2022 and extraordinary provisions for litigation. The distributable net income is used to calculate the ordinary distribution in 2023 as well as to monitor the Group’s performance in 2023 Measure of BNP Paribas Group’s net income reflecting the Group’s intrinsic performance in 2023, pivotal year, post-impact of the sale of Bank of the West and the last expected year of the contribution to the ramp-up of the Single Resolution Fund, marked by extraordinary items Net income Group share excluding exceptional items Net income attributable to equity holders excluding exceptional items Details of exceptional items are disclosed in the slide “Main Exceptional Items” of the results’ presentation Measure of BNP Paribas Group’s net income excluding non-recurring items of a significant amount or items that do not reflect the underlying operating performance, notably restructuring, adaptation, IT reinforcement and transformation costs. Doubtful loans’ coverage ratio Relationship between stage 3 provisions and impaired outstandings (stage 3), balance sheet and off-balance sheet, netted for collateral received, for customers and credit institutions, including liabilities at amortised cost and debt securities at fair value through equity (excluding insurance business) Measure of provisioning for doubtful loans Methodology – Comparative analysis at constant scope and exchange rates The method used to determine the effect of changes in scope of consolidation depends on the type of transaction (acquisition, sale, etc.). The underlying purpose of the calculation is to facilitate period-on-period comparisons. In case of acquired or created entity, the results of the new entity are eliminated from the constant scope results of current-year periods corresponding to the periods when the entity was not owned in the prior-year. In case of divested entities, the entity’s results are excluded symmetrically for the prior year for quarters when the entity was not owned. In case of change of consolidation method, the policy is to use the lowest consolidation percentage over the two years (current and prior) for results of quarters adjusted on a like-for-like basis. Comparative analysis at constant exchange rates are prepared by restating results for the prior-year quarter (reference quarter) at the current quarter exchange rate (analysed quarter). All of these calculations are performed by reference to the entity’s reporting currency. Reminder Net banking income (NBI): throughout the document, the terms “Net Banking Income” and “Revenues” are used interchangeably. Operating expenses: sum of salary and employee benefit expenses, other operating expenses and depreciation, amortisation and impairment of property, plant and equipment. Throughout the whole document, the terms operating expenses or costs can be used indifferently. Jaws effect: Revenues evolution between two periods minus operating expenses evolution between two periods. The sum of the values indicated in the tables and analyses may differ slightly from the reported total due to rounding. BNP Paribas’ organisation is based on three operating divisions: Corporate & Institutional Banking (CIB), Commercial, Personal Banking & Services (CPBS) and Investment & Protection Services (IPS). These divisions include the following businesses: Corporate and Institutional Banking (CIB) division, combines: Global Banking; Global Markets; and Securities Services. Commercial, Personal Banking & Services division, covers: Commercial & Personal Banking in the Eurozone: Commercial & Personal Banking in France (CPBF), BNL banca commerciale (BNL bc), Commercial & Personal Banking in Italy, Commercial & Personal Banking in Belgium (CPBB), Commercial & Personal Banking in Luxembourg (CPBL); Commercial & Personal Banking outside the Eurozone, organised around Europe-Mediterranean, covering Commercial & Personal Banking outside the Eurozone in particular in Central and Eastern Europe, Türkiye and Africa; Specialised Businesses: BNP Paribas Personal Finance, Arval and BNP Paribas Leasing Solutions, New Digital Businesses (in particular Nickel, Floa, Lyf) and BNP Paribas Personal Investors. Investment & Protection Services division, combines: Insurance (BNP Paribas Cardif); Wealth and Asset Management: BNP Paribas Asset Management, BNP Paribas Real Estate, the management of the BNP Paribas Group’s portfolio of unlisted and listed industrial and commercial investments (BNP Paribas Principal Investments) and BNP Paribas Wealth Management. BNP Paribas SA is the parent company of the BNP Paribas Group. ➤RECONCILIATION OF PROFIT & LOSS WITH THE ALTERNATIVE PERFORMANCE MEASURES ➤2024 – Results by Core Business In millions of euros Commercial, Personal Banking & Services (2/3 of Private Banking) Investment & Protection Services CIB Operating divisions Corporate Centre Group Revenues 26,027 5,824 17,897 49,748 (917) 48,831 %Change 2023 distributable +0.4% +4.2% +8.4% +3.6% -15.7% +4.1% Operating Expenses and Dep. (16,119) (3,570) (10,731) (30,420) 227 (30,193) %Change 2023 distributable +1.9% +0.5% +4.5% +2.6% n.s. +2.1% Gross Operating Income 9,908 2,254 7,166 19,328 (690) 18,638 %Change 2023 distributable -1.8% +10.6% +14.8% +5.2% -32.8% +7.4% Cost of Risk & Other (3,275) (15) 143 (3,146) (55) (3,201) %Change 2023 distributable +12.2% +15.2% n.s. +9.6% +48.1% +10.1% Operating Income 6,633 2,239 7,310 16,182 (745) 15,437 %Change 2023 distributable -7.5% +10.6% +15.9% +4.4% -30.0% +6.9% Share of Earnings of Equity-Method Entities 405 120 17 543 158 701 Other Non-Operating Items (234) (4) (4) (242) 292 50 Pre-Tax Income 6,804 2,355 7,323 16,482 (294) 16,188 %Change 2023 distributable -7.2% +8.4% +16.2% +4.3% -66.3% +8.4% Corporate Income Tax (4,001) Net Income Attributable to Minority Interests (499) Net Income from discontinued activities 0 Net Income Attributable to Equity Holders 11,688 ➤Reconciliation with profit and loss account aggregates of Commercial & Personal Banking activity, excluding PEL/CEL effect and with 100% of Private Banking In millions of euros 2024 2023 distributable Commercial, Personal Banking & Services (including 100% of Private Banking) Revenues 26,764 26,626 Operating Expenses and Dep. (16,511) (16,200) Gross Operating Income 10,253 10,426 Cost of Risk & others (3,272) (2,923) Operating Income 6,981 7,503 Share of Earnings of Equity-Method Entities 405 337 Other Non-Operating Items (234) (181) Pre-Tax Income 7,152 7,659 Income Attributable to Wealth and Asset Management (348) (330) Pre-Tax Income of Commercial, Personal Banking & Services 6,804 7,329 Cost/Income 61.7% 60.8% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 46.8 43.2 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable Commercial, Personal Banking & Services (including 2/3 of Private Banking) Revenues 26,027 25,917 Operating Expenses and Dep. (16,119) (15,824) Gross Operating Income 9,908 10,093 Cost of Risk Incl. Other net losses for risk on financial instruments (3,275) (2,920) Operating Income 6,633 7,173 Share of Earnings of Equity-Method Entities 405 337 Other Non-Operating Items (234) (181) Pre-Tax Income 6,804 7,329 Cost/Income 61.9% 61.1% Allocated Equity (€bn, year to date) 46.8 43.2 In millions of euros 2024 2023 distributable CPBF (including 100% of Private Banking) Revenues 6,595 6,591 Incl. net interest revenue 3,343 3,496 Incl. fees 3,252 3,095 Operating Expenses and Dep. (4,597) (4,653) Gross Operating Income 1,998 1,938 Cost of Risk (668) (485) Operating Income 1,330 1,453 Share of Earnings of Equity-Method Entities 0 0 Other Non-Operating Items (2) 0 Pre-Tax Income 1,328 1,453 Income Attributable to Wealth and Asset Management (179) (168) Pre-Tax Income of CPBF 1,149 1,285 Cost/Income 69.7% 70.6% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 12.0 11.5 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable CPBF – excl. PEL/CEL (including 100% of Private Banking) Revenues 6,582 6,593 Incl. net interest revenue 3,330 3,498 Incl. fees 3,252 3,095 Operating Expenses and Dep. (4,597) (4,653) Gross Operating Income 1,985 1,940 Cost of Risk (668) (485) Operating Income 1,318 1,454 Share of Earnings of Equity-Method Entities 0 0 Other Non-Operating Items (2) 0 Pre-Tax Income 1,316 1,454 Income Attributable to Wealth and Asset Management (179) (168) Pre-Tax Income of CPBF 1,137 1,287 Cost/Income 69.8% 70.6% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 12.0 11.5 Including 100% of Private Banking for the Revenues to Pre-tax income items Reminder on PEL/CEL provision: this provision, accounted in the revenues of CPB in France, takes into account the risk generated by Plans Épargne Logement (PEL) and Comptes Épargne Logement (CEL) during their whole lifetime. In millions of euros 2024 2023 distributable PEL/CEL effects – 100% of Private Banking in France 12 -1 In millions of euros 2023 2023 distributable CPBF (including 2/3 of Private Banking) Revenues 6,241 6,251 Operating Expenses and Dep. (4,420) (4,482) Gross Operating Income 1,821 1,769 Cost of Risk (670) (484) Operating Income 1,151 1,285 Non-Operating Items (2) 0 Pre-Tax Income 1,149 1,285 Cost/Income 70.8% 71.7% Allocated Equity (€bn, year to date) 12.0 11.5 In millions of euros 2024 2023 distributable BNL bc (including 100% of Private Banking) Revenues 2,857 2,727 Incl. net interest revenue 1,710 1,619 Incl. fees 1,147 1,108 Operating Expenses and Dep. (1,805) (1,771) Gross Operating Income 1,051 956 Cost of Risk (339) (410) Operating Income 713 546 Share of Earnings of Equity-Method Entities (2) 0 Other Non-Operating Items (2) (3) Pre-Tax Income 708 542 Income Attributable to Wealth and Asset Management (30) (22) Pre-Tax Income of BNL bc 678 520 Cost/Income 63.2% 65.0% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 5.7 5.7 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable BNL bc (including 2/3 of Private Banking) Revenues 2,766 2,646 Operating Expenses and Dep. (1,745) (1,712) Gross Operating Income 1,021 934 Cost of Risk (338) (410) Operating Income 682 524 Share of Earnings of Equity-Method Entities (2) 0 Other Non-Operating Items (2) (3) Pre-Tax Income 678 520 Cost/Income 63.1% 64.7% Allocated Equity (€bn, year to date) 5.7 5.7 In millions of euros 2024 2023 distributable CPBB (including 100% of Private Banking) Revenues 3,756 3,990 Incl. net interest revenue 2,609 2,867 Incl. fees 1,148 1,123 Operating Expenses and Dep. (2,710) (2,705) Gross Operating Income 1,046 1,286 Cost of Risk (19) (86) Operating Income 1,028 1,199 Share of Earnings of Equity-Method Entities 82 1 Other Non-Operating Items 5 9 Pre-Tax Income 1,115 1,210 Income Attributable to Wealth and Asset Management (89) (83) Pre-Tax Income of CPBB 1,026 1,126 Cost/Income 72.1% 67.8% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 6.5 6.1 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable CPBB (including 2/3 of Private Banking) Revenues 3,545 3,784 Operating Expenses and Dep. (2,585) (2,583) Gross Operating Income 960 1,200 Cost of Risk (21) (84) Operating Income 939 1,116 Share of Earnings of Equity-Method Entities 82 1 Other Non-Operating Items 5 9 Pre-Tax Income 1,026 1,126 Cost/Income 72.9% 68.3% Allocated Equity (€bn, year to date) 6.5 6.1 In millions of euros 2024 2023 distributable CPBL (including 100% of Private Banking) Revenues 627 592 Incl. net interest revenue 529 497 Incl. fees 98 96 Operating Expenses and Dep. (304) (294) Gross Operating Income 323 298 Cost of Risk (4) (8) Operating Income 319 290 Share of Earnings of Equity-Method Entities 0 0 Other Non-Operating Items 0 5 Pre-Tax Income 319 296 Income Attributable to Wealth and Asset Management (9) (7) Pre-Tax Income of CPBL 310 289 Cost/Income 48.5% 49.7% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 0.9 0.8 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable CPBL (including 2/3 of Private Banking) Revenues 610 577 Operating Expenses and Dep. (296) (286) Gross Operating Income 314 291 Cost of Risk (4) (8) Operating Income 310 283 Share of Earnings of Equity-Method Entities 0 0 Other Non-Operating Items 0 5 Pre-Tax Income 310 289 Cost/Income 48.5% 49.6% Allocated Equity (€bn, year to date) 0.9 0.8 In millions of euros 2024 2023 distributable Europe-Mediterranean (including 100% of Private Banking) Revenues 3,155 2,687 Incl. net interest revenue 2,542 2,241 Incl. fees 613 446 Operating Expenses and Dep. (2,028) (1,662) Gross Operating Income 1,128 1,025 Cost of Risk & others (366) (44) Cost of Risk (165) (44) Other net losses for risk on financial instruments (201) 0 Operating Income 761 981 Share of Earnings of Equity-Method Entities 299 283 Other Non-Operating Items (249) (183) Pre-Tax Income 811 1,081 Income Attributable to Wealth and Asset Management (38) (47) Pre-Tax Income of Europe-Mediterranean 773 1,034 Cost/Income 64.3% 61.9% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 6.1 5.3 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable Europe-Mediterranean (including 2/3 of Private Banking) Revenues 3,104 2,631 Operating Expenses and Dep. (2,016) (1,653) Gross Operating Income 1,089 978 Cost of Risk & others (365) (44) Cost of Risk (165) (44) Other net losses for risk on financial instruments (200) 0 Operating Income 723 934 Share of Earnings of Equity-Method Entities 299 283 Other Non-Operating Items (249) (183) Pre-Tax Income 773 1,034 Cost/Income 64.9% 62.8% Allocated Equity (€bn, year to date) 6.1 5.3 In millions of euros 2024 2023 distributable New Digital Businesses & Personal Investors (including 100% of Private Banking) Revenues 1,072 1,007 Operating Expenses and Dep. (733) (685) Gross Operating Income 339 322 Cost of Risk (102) (123) Operating Income 237 198 Share of Earnings of Equity-Method Entities (9) (9) Other Non-Operating Items 13 0 Pre-Tax Income 241 190 Income Attributable to Wealth and Asset Management (4) (3) Pre-Tax Income of New Digital Businesses & Personal Investors 237 187 Cost/Income 68.4% 68.0% Allocated Equity (€bn, year to date; including 2/3 of Private Banking) 0.8 0.8 Including 100% of Private Banking for the Revenues to Pre-tax income items In millions of euros 2024 2023 distributable New Digital Businesses and Personal Investors (including 2/3 of Private Banking) Revenues 1,059 995 Operating Expenses and Dep. (724) (677) Gross Operating Income 335 319 Cost of Risk (102) (123) Operating Income 233 195 Share of Earnings of Equity-Method Entities (9) (9) Other Non-Operating Items 13 0 Pre-Tax Income 237 187 Cost/Income 68.3% 68.0% Allocated Equity (€bn, year to date) 0.8 0.8 ➤Reconciliation with the aggregate cost of risk on outstanding (cost of risk/customer loans at the beginning of the period, in annualised bps) 2024 2023 Commercial, Personal Banking & Services(1) Loan outstandings as of the beg. of the quarter (€bn) 636.1 630.5 Cost of risk (€m) 3,071 2,923 Cost of risk (in annualised bp) 48 46 Commercial & Personal Banking in the Eurozone(1) Loan outstandings as of the beg. of the quarter (€bn) 462.7 464.2 Cost of risk (€m) 1,029 989 Cost of risk (in annualised bp) 22 21 CPBF(1) Loan outstandings as of the beg. of the quarter (€bn) 230.9 230.8 Cost of risk (€m) 668 485 Cost of risk (in annualised bp) 29 21 BNL bc(1) Loan outstandings as of the beg. of the quarter (€bn) 72.9 77.1 Cost of risk (€m) 339 410 Cost of risk (in annualised bp) 46 53 CPBB(1) Loan outstandings as of the beg. of the quarter (€bn) 146.1 143.0 Cost of risk (€m) 19 86 Cost of risk (in annualised bp) 1 6 With Private Banking at 100% and excluding “Other net losses for risk on financial instruments”. 2024 2023 Commercial & Personal Banking outside the Eurozone(1) Loan outstandings as of the beg. of the quarter (€bn) 35.9 35.5 Cost of risk (€m) 165 44 Cost of risk (in annualised bp) 46 13 BancWest(1) Loan outstandings as of the beg. of the quarter (€bn) 0.0 0.0 Cost of risk (€m) 0 0 Cost of risk (in annualised bp) ns ns Europe-Mediterranean(1) Loan outstandings as of the beg. of the quarter (€bn) 35.9 35.5 Cost of risk (€m) 165 44 Cost of risk (in annualised bp) 46 13 Personal Finance Loan outstandings as of the beg. of the quarter (€bn) 108.9 103.5 Cost of risk (€m) 1,573 1,600 Cost of risk (in annualised bp) 144 155 CIB – Global Banking Loan outstandings as of the beg. of the quarter (€bn) 178.2 175.2 Cost of risk (€m) (171) (74) Cost of risk (in annualised bp) (10) (4) Group(2) Loan outstandings as of the beg. of the quarter (€bn) 911.0 898.4 Cost of risk (€m) 2,999 2,907 Cost of risk (in annualised bp) 33 32 With Private Banking at 100% and excluding “Other net losses for risk on financial instruments”. Including cost of risk of market activities, Investment & Protection Services and Corporate Centre and excluding “Other net losses for risk on financial instruments”. Calculation of net earnings per share In millions of euros 31 December 2024 31 December 2023(1) Net Income attributable to equity holders 11,688 11,232 Remuneration net of tax of undated super subordinated notes (787) (677) Exchange rate effect on reimbursed undated super subordinated notes (58) 0 Net income attributable to equity holders, after remuneration and exchange rate effect on undated super subordinated notes 10,843 10,555 Average number of Shares outstanding excluding Treasury Shares 1,133 1,200 Net Earnings per Share (EPS) in euros 9.57 8.79 Based on restatement of quarterly series reported on 29 February 2024. Results serving as a basis for calculating the distribution in 2023 and reflecting the Group’s intrinsic performance post impact of the Bank of the West sale and post ramp-up of the Single Resolution Fund (SRF), excluding extraordinary items. Calculation of Return on Equity In millions of euros 31 December 2024 31 December 2023 Net income Group share 11,688 10,975 Remuneration net of tax of undated super subordinated notes and exchange effect (845) (677) Net income Group share used for the calculation of ROE/ROTE 10,843 10,298 Average permanent shareholders’ equity, not revaluated, used for the ROE calculation(1) 109,274 106,938 Return on Equity (ROE) 9.9% 9.6% Average tangible permanent shareholders’ equity, not revaluated, used for the ROTE calculation(2) 99,475 96,115 Return on Tangible Equity (ROTE) 10.9% 10.7% Average Permanent shareholders’ equity: average of beginning of the year and end of the period including in particular annualised reported Net Income as at 31 December 2024 with exceptional items and taxes not annualised (Permanent Shareholders’ equity = Shareholders’ equity attributable to shareholders - changes in assets and liabilities recognised directly in equity - Undated super subordinated notes - remuneration net of tax payable to holders of undated super subordinated notes – dividend distribution assumption). Average Tangible permanent shareholders’ equity: average of beginning of the year and end of the period including in particular annualised reported Net Income as at 31 December 2024 with exceptional items and taxes not annualised (Tangible permanent shareholders’ equity = permanent shareholders’ equity – intangible assets – goodwill). MAIN EXCEPTIONAL ITEMS Exceptional items In millions of euros 2024 2023 (distributable(1)) Provisions for litigation (Corporate Centre) (125) Revaluation of an equity stake (Global Markets, FICC) 78 Total revenues (a) 78 (125) Restructuring costs and adaptation costs (Corporate Centre) (230) (182) IT reinforcement costs (Corporate Centre) (341) (395) Total operating expenses (b) (571) (576) Reconsolidation of activities in Ukraine(2) (Corporate Centre) 226 Capital gain on divestment of Personal Finance activities in Mexico (Personal Finance) 119 Impact of a divestment (Insurance) (87) Capital gain on a divestment (Corporate Centre) 91 Total of other non-operating items (c) 345 4 Total exceptional items (pre-tax) (a) + (b) + (c) (148) (697) Total exceptional items (after-tax) (17) (543) Effects of the hyperinflation situation in Turkey(3) Impact on pre-tax income (281) (247) Impact on Net Income, Group share (249) (313) Based on restatement of quarterly series reported on 29 February 2024. Results serving as a basis for calculating the distribution in 2023 and reflecting the Group’s intrinsic performance post impact of the Bank of the West sale and post contribution to the ramp-up of the Single Resolution Fund (SRF) excluding extraordinary items. 60% stake in Ukrsibbank; the other 40% is held by the European Bank for Reconstruction and Development. Effects of the application of IAS 29 and reflecting the performance of the hedge in Türkiye (CPI linkers). (1) Based on restatement of quarterly series reported on 29 February 2024. Results serving as a basis for calculating the distribution in 2023 and reflecting the Group’s intrinsic performance post impact of the Bank of the West sale and post ramp-up of the Single Resolution Fund (SRF) excluding extraordinary items. (2) Including 100% of Private Banking (excluding PEL/CEL effects in France). (3) Headwinds including Inflation hedges, mandatory reserves, and the Belgian government bonds for a base effect of -EUR 352 million in 2024 vs. 2023. (4) Strategic perimeter post geographical refocusing (5) Including 100% of Private Banking (excluding PEL/CEL effects in France). (6) Cost of risk does not include “Other net losses for risks on financial instruments”. (7) 60% stake in Ukrsibbank; the other 40% is held by the European Bank for Reconstruction and Development. (8) Revaluated tangible net book value per share at end of period, in euros. (9) Based on restatement of quarterly series reported on 29 February 2024. Results serving as a basis for calculating the distribution in 2023 and reflecting the Group's intrinsic performance post impact of the Bank of the West sale and post ramp-up of the Single Resolution Fund (SRF) excluding extraordinary items. (10) Increase in Group revenues between 2023 (distributable) and 2024 minus the increase in Group operating expenses between 2023 (distributable) and 2024. (11) Cost of risk does not include “Other net losses for risks on financial instruments”. (12) Shareholder payout rate as a % of the net income, Group adjusted for the remuneration of undated super-subordinated notes, including the cash dividend and share buyback programmes. (13) Net income, Group share adjusted for the remuneration of undated super-subordinated notes. (14) Subject to the usual conditions, including ECB authorisation. (15) Including 100% of Private Banking (excluding PEL/CEL effects in France). (16) Including 100% of Private Banking (excluding PEL/CEL effects in France). (17) Including 100% of Private Banking (excluding PEL/CEL effects in France). (18) Including 100% of Private Banking (excluding PEL/CEL effects in France). (19) Including 2/3 of Private Banking (excluding PEL/CEL effects in France). (20) Sustainable Finance Disclosure Regulation. (21) These nine sectors are power generation, oil and gas, automotive, steel, aluminium, cement, aviation, shipping, and commercial real estate. The Group also monitors the greenhouse gas emissions intensity of its financing in the residential real estate sector. (22) https://group.bnpparibas/en/our-commitments/sustainable-finance-follow-our-progress-in-figures. (23) Low-carbon energy: including electricity from renewable sources and from nuclear sources. The scope of low-carbon energy could evolve according to the progress of technologies to gradually go beyond energy production and include other links in the value chain such as transportation, storage or distribution of low-carbon energy. (24) Renewable energy: including wind and marine energy, photovoltaic solar, concentrated solar, hydro, geothermal energy, bioenergy (including biofuels except first generation). (25) Bloomberg NEF, Energy Supply Banking Ratio, January 2025. (26) https://observatoirecetelem.com/en/observatoire-cetelem-de-lhabitat-2024. (27) The Intergovernmental Panel on Climate Change (IPCC) https://www.ipcc.ch/report/ar6/wg3/downloads/report/IPCC_AR6_WGIII_Chapter10.pdf. (28) BNP Paribas is aligned with the definition produced by the International Labour Organization (ILO) that “a just transition promotes sustainable and inclusive economies by creating decent work opportunities, reducing inequalities and leaving no one behind”, and that of the Business for Inclusive Growth (B4IG) coalition “Climate change, and therefore climate change strategies and policies, can have major social impacts. We can address it if we collectively take the necessary steps to support the just transition by putting people at the heart of climate action [...]. Governments, businesses and other stakeholders must collectively ensure that no one is left behind”. (29) 2024 edition: https://cdn-group.bnpparibas.com/uploads/file/bnp_paribas_just_transition_observatory_2024.pdf. (30) Press release of 13 February 2025, https://group.bnpparibas/en/press-release/bnp-paribas-signs-an-agreement-with-the-eib-that-will-generate-up-to-eur8-billion-in-wind-energy-investments. (31) Since 21 December 2024, the EuGB standard is a voluntary regulatory standard, designed to ensure increased transparency for investors, in particular through the obligation to finance projects aligned with the European Union’s taxonomy. (32) Subject to agreements with the relevant authorities. (33) Subject to agreements with the relevant authorities. (34) The project will be subjected to information and consultation with the works councils. (35) Subject to agreements with the relevant authorities. (36) Calculated in accordance with Regulation (EU) 2019/876 (37) Calculated in accordance with Regulation (CRR) 575/2013 art. 451a (38) Liquid market assets or eligible assets in central banks (counterbalancing capacity), taking into account prudential standards, notably US standards, minus intra-day payment system needs Consolidated financial statements for the year ended 31 december 2024 4.1Profit and loss account for the year ended 2024 4.2Statement of net income and changes in assets and liabilities recognised directly in equity 4.3Balance sheet at 31 December 2024 4.4Cash flow statement for the year ended 31 December 2024 4.5Statement of changes in shareholders’ equity between 1 January 2023 and 31 December 2024 4.6Notes to the financial statements prepared in accordance with IFRS as adopted by the European Union Note 1Summary of material accounting policies applied by the Group 1.aApplicable accounting 1.a.1Applicable accounting standards 1.a.2New major accounting standards, published but not yet applicable 1.bConsolidation 1.b.1Scope of consolidation 1.b.2Consolidation methods 1.b.3Consolidation rules 1.b.4Business combinations and measurement of goodwill 1.cTranslation of foreign currency transactions 1.dFinancial information in hyperinflationary economies 1.eNet interest income, Income and expenses from commissions and other activities 1.e.1Net interest income 1.e.2Income and expenses from commissions and other activities 1.fFinancial assets and liabilities 1.f.1Financial assets at amortised cost 1.f.2Financial assets at fair value through shareholders’ equity 1.f.3Financing and guarantee commitments 1.f.4Regulated savings and loan contracts 1.f.5Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity 1.f.6Cost of risk 1.f.7Financial instruments at fair value through profit or loss 1.f.8Financial liabilities and equity instruments 1.f.9Hedge accounting 1.f.10Determination of fair value 1.f.11Derecognition of financial assets and financial liabilities 1.f.12Offsetting financial assets and financial liabilities 1.gInsurance activities 1.g.1Investments related to insurance activities 1.g.2Insurance contracts 1.hProperty, plant, equipment and intangible assets 1.iLeases 1.i.1Group company as lessor 1.i.2Group company as lessee 1.jAssets held for sale and discontinued operations 1.kEmployee benefits 1.lShare-based payments 1.mProvisions recorded under liabilities 1.nCurrent and deferred tax 1.oCash flow statement 1.pUse of estimates in the preparation of the financial statements Note 2Notes to the profit and loss account for the YEAR ENDED 2024 2.aNet interest income 2.bCommission income and expense 2.cNet gain on financial instruments at fair value through profit or loss 2.dNet gain on financial instruments at fair value through equity 2.eNet income from other activities 2.fOperating expenses 2.gCost of risk 2.hOther net losses for risk on financial instruments 2.iNet gain on non-current assets 2.jCorporate income tax Note 3Segment information Note 4Notes to the balance sheet at 31 December 2024 4.aFinancial instruments at fair value through profit or loss 4.bDerivatives used for hedging purposes 4.cFinancial assets at fair value through equity 4.dMeasurement of the fair value of financial instruments 4.eFinancial assets at amortised cost 4.fImpaired financial assets (stage 3) 4.gFinancial liabilities at amortised cost due to credit institutions and customers 4.hDebt securities and subordinated debt 4.iCurrent and deferred taxes 4.jAccrued income/expense and other assets/liabilities 4.kEquity-method investments 4.lProperty, plant, equipment and intangible assets used in operations, investment property 4.mGoodwill 4.nProvisions for contingencies and charges 4.oOffsetting of financial assets and liabilities 4.pTransfers of financial assets Note 5Notes related to insurance activities 5.aNet income from insurance activities 5.bReconciliation of expenses by type and by function 5.cInvestments, other assets and financial liabilities related to insurance activities 5.dAssets and liabilities related to insurance contracts 5.eRisks arising from insurance and investment contracts in the scope of IFRS 17 5.e.1Underwriting risk 5.e.2Market risk 5.e.3Credit risk 5.e.4Liquidity risk Note 6Financing and guarantee commitments 6.aFinancing commitments given or received 6.bGuarantee commitments given by signature 6.cSecurities commitments 6.dOther guarantee commitments Note 7Salaries and employee benefits 7.aSalary and employee benefit expense 7.bPost-employment benefits 7.cOther long-term benefits 7.dTermination benefits 7.eShare-based payments Note 8Additional information 8.aChanges in share capital and earnings per share 8.bMinority interests 8.cLegal proceedings and arbitration 8.dBusiness combinations and loss of control or significant influence 8.eDiscontinued activities 8.fSignificant restrictions in subsidiaries, joint ventures and associates 8.gStructured entities 8.hCompensation and benefits awarded to the Group’s corporate officers 8.iOther related parties 8.jFair value of financial instruments carried at amortised cost 8.kScope of consolidation 8.lFees paid to the Statutory Auditors 4.7Statutory Auditors’ report on the consolidated financial statements Opinion Basis for opinion Independence Justification of assessments – Key audit matters Specific verifications Report on other legal and regulatory requirements Responsibilities of Management and those charged with governance for the consolidated financial statements Statutory Auditors’ responsibilities for the audit of the consolidated financial statements Report to the Financial Statements Committee The Board of directors of BNP Paribas approved the Group consolidated financial statements on 3 February 2025. The consolidated financial statements of the BNP Paribas Group are presented for the years ended 31 December 2024 and 2023. In accordance with Annex I of European Delegated Regulation (EU) n° 2019/980 as amended by Delegated Regulation (EU) n° 2020/1273, the consolidated financial statements for the year ended 31 December 2022 are provided in the Universal registration document filed with the Autorité des Marchés Financiers on 22 March 2024 under number D.24-0158. On 18 December 2021, the Group concluded an agreement with BMO Financial Group for the sale of 100% of its retail and commercial banking activities in the United States operated by the BancWest cash-generating unit. The terms of this transaction fall within the scope of application of IFRS 5 relating to groups of assets and liabilities held for sale (see note 8.e Discontinued activities) leading to isolate the “Net income from discontinued activities” on a separate line. A similar reclassification is made in the statement of net income and changes in assets and liabilities recognised directly in equity and in the cash flow statement. Following the receipt of regulatory approvals, the transaction was finalised on 1 February 2023. 4.1Profit and loss account for the year ended 2024 In millions of euros Notes Year to 31 Dec. 2024 Year to 31 Dec. 2023 Interest income 2.a 83,020 79,542 Interest expense 2.a (63,496) (60,484) Commission income 2.b 16,196 15,011 Commission expense 2.b (5,495) (5,190) Net gain on financial instruments at fair value through profit or loss 2.c 11,569 10,346 Net gain on financial instruments at fair value through equity 2.d 209 28 Net gain on derecognised financial assets at amortised cost 55 66 Net income from insurance activities 5.a 2,396 2,320 of which Insurance revenue 9,711 8,945 Insurance service expenses (7,502) (6,786) Investment return 11,554 10,254 Net finance income or expenses from insurance contracts (11,367) (10,093) Income from other activities 2.e 21,922 18,560 Expense on other activities 2.e (17,545) (14,325) REVENUES FROM CONTINUING ACTIVITIES 48,831 45,874 Operating expenses 2.f (27,803) (28,713) Depreciation, amortisation and impairment of property, plant and equipment and intangible assets 4.l (2,390) (2,243) GROSS OPERATING INCOME FROM CONTINUING ACTIVITIES 18,638 14,918 Cost of risk 2.g (2,999) (2,907) Other net losses for risk on financial instruments 2.h (202) (775) OPERATING INCOME FROM CONTINUING ACTIVITIES 15,437 11,236 Share of earnings of equity-method entities 4.k 701 593 Net gain on non-current assets 2.i (191) (104) Goodwill 4.m 241 - PRE-TAX INCOME FROM CONTINUING ACTIVITIES 16,188 11,725 Corporate income tax from continuing activities 2.j (4,001) (3,266) NET INCOME FROM CONTINUING ACTIVITIES 12,187 8,459 Net income from discontinued activities 8.e - 2,947 NET INCOME 12,187 11,406 Net income attributable to minority interests 499 431 NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS 11,688 10,975 Basic earnings per share 8.a 9.57 8.58 Diluted earnings per share 8.a 9.57 8.58 4.2Statement of net income and changes in assets and liabilities recognised directly in equity In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Net income for the period 12,187 11,406 Changes in assets and liabilities recognised directly in equity 945 596 Items that are or may be reclassified to profit or loss 1,129 367 Changes in exchange differences 1,177 (109) Changes in fair value of financial assets at fair value through equity Changes in fair value recognised in equity (632) 244 Changes in fair value reported in net income (66) 27 Changes in fair value of investments of insurance activities Changes in fair value recognised in equity (543) 4,665 Changes in fair value reported in net income 447 558 Changes in fair value of contracts of insurance activities 259 (4,573) Changes in fair value of hedging instruments Changes in fair value recognised in equity (111) 146 Changes in fair value reported in net income (5) 22 Income tax 150 (283) Changes in equity-method investments, after tax 453 (162) Changes in discontinued activities, after tax - (168) Items that will not be reclassified to profit or loss (184) 229 Changes in fair value of equity instruments designated as at fair value through equity (17) 232 Debt remeasurement effect arising from BNP Paribas Group issuer risk (587) 45 Remeasurement gains (losses) related to post-employment benefit plans 228 (173) Income tax 112 11 Changes in equity-method investments, after tax 80 114 Changes in discontinued activities, after tax - - Total 13,132 12,002 Attributable to equity shareholders 12,431 11,479 Attributable to minority interests 701 523 4.3Balance sheet at 31 December 2024 In millions of euros, at Notes 31 December 2024 31 December 2023 ASSETS Cash and balances at central banks 182,496 288,259 Financial instruments at fair value through profit or loss Securities 4.a 267,357 211,634 Loans and repurchase agreements 4.a 225,699 227,175 Derivative financial instruments 4.a 322,631 292,079 Derivatives used for hedging purposes 4.b 20,851 21,692 Financial assets at fair value through equity Debt securities 4.c 71,430 50,274 Equity securities 4.c 1,610 2,275 Financial assets at amortised cost Loans and advances to credit institutions 4.e 31,147 24,335 Loans and advances to customers 4.e 900,141 859,200 Debt securities 4.e 146,975 121,161 Remeasurement adjustment on interest-rate risk hedged portfolios (758) (2,661) Investments and other assets related to insurance activities 5.c 286,849 257,098 Current and deferred tax assets 4.i 6,215 6,556 Accrued income and other assets 4.j 174,147 170,758 Equity-method investments 4.k 7,862 6,751 Property, plant and equipment and investment property 4.l 50,314 45,222 Intangible assets 4.l 4,392 4,142 Goodwill 4.m 5,550 5,549 TOTAL ASSETS 2,704,908 2,591,499 LIABILITIES Deposits from central banks 3,366 3,374 Financial instruments at fair value through profit or loss Securities 4.a 79,958 104,910 Deposits and repurchase agreements 4.a 304,817 273,614 Issued debt securities and subordinated debt 4.a 104,934 83,763 Derivative financial instruments 4.a 301,953 278,892 Derivatives used for hedging purposes 4.b 36,864 38,011 Financial liabilities at amortised cost Deposits from credit institutions 4.g 66,872 95,175 Deposits from customers 4.g 1,034,857 988,549 Debt securities 4.h 198,119 191,482 Subordinated debt 4.h 31,799 24,743 Remeasurement adjustment on interest-rate risk hedged portfolios (10,696) (14,175) Current and deferred tax liabilities 4.i 3,657 3,821 Accrued expenses and other liabilities 4.j 136,955 143,673 Liabilities related to insurance contracts 5.d 247,699 218,043 Financial liabilities related to insurance activities 5.c 19,807 18,239 Provisions for contingencies and charges 4.n 9,806 10,518 TOTAL LIABILITIES 2,570,767 2,462,632 EQUITY Share capital, additional paid-in capital and retained earnings 118,957 115,809 Net income for the period attributable to shareholders 11,688 10,975 Total capital, retained earnings and net income for the period attributable to shareholders 130,645 126,784 Changes in assets and liabilities recognised directly in equity (2,508) (3,042) Shareholders’ equity 128,137 123,742 Minority interests 8.b 6,004 5,125 TOTAL EQUITY 134,141 128,867 TOTAL LIABILITIES AND EQUITY 2,704,908 2,591,499 4.4Cash flow statement for the year ended 31 December 2024 In millions of euros Notes Year to 31 Dec. 2024 Year to 31 Dec. 2023 Pre-tax income from continuing activities 16,188 11,725 Pre-tax income from discontinued activities - 3,658 Non-monetary items included in pre-tax net income and other adjustments 11,094 8,495 Net depreciation/amortisation expense on property, plant and equipment and intangible assets 7,272 6,245 Impairment of goodwill and other non-current assets 21 (32) Net addition to provisions 3,023 3,646 Variation of assets/liabilities related to insurance contracts 3,181 (6,240) Share of earnings of equity-method entities (701) (593) Net income from investing activities (277) (3,600) Net income (expense) from financing activities (604) 506 Other movements (821) 8,563 Net decrease related to assets and liabilities generated by operating activities (124,658) (58,119) Net decrease related to transactions with customers and credit institutions (8,672) (7,751) Net decrease related to transactions involving other financial assets and liabilities (102,669) (32,712) Net decrease related to transactions involving non-financial assets and liabilities (1) (10,184) (14,297) Taxes paid (3,133) (3,359) NET DECREASE IN CASH AND CASH EQUIVALENTS GENERATED BY OPERATING ACTIVITIES (97,376) (34,241) Net increase related to acquisitions and disposals of consolidated entities 1,956 9,520 Net decrease related to property, plant and equipment and intangible assets (2,136) (2,216) NET decrease (INCREASE) IN CASH AND CASH EQUIVALENTS RELATED TO INVESTING ACTIVITIES (180) 7,304 Decrease in cash and cash equivalents related to transactions with shareholders (8,756) (8,698) Increase in cash and cash equivalents generated by other financing activities 2,338 4,022 NET DECREASE IN CASH AND CASH EQUIVALENTS RELATED TO FINANCING ACTIVITIES (6,418) (4,676) EFFECT OF MOVEMENT IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS (393) (3,506) NET DECREASE IN CASH AND CASH EQUIVALENTS (104,367) (35,119) of which net increase in cash and cash equivalents from discontinued activities - 9,909 Balance of cash and cash equivalent accounts at the start of the period 282,579 317,698 Cash and amounts due from central banks 288,279 318,581 Due to central banks (3,374) (3,054) On demand deposits with credit institutions 8,352 11,927 On demand loans from credit institutions 4.g (10,770) (12,538) Deduction of receivables and accrued interest on cash and cash equivalents 92 163 Cash and cash equivalent accounts classified as “Assets held for sale” - 2,619 Balance of cash and cash equivalent accounts at the end of the period 178,212 282,579 Cash and amounts due from central banks 182,511 288,279 Due to central banks (3,366) (3,374) On demand deposits with credit institutions 9,482 8,352 On demand loans from credit institutions 4.g (10,608) (10,770) Deduction of receivables and accrued interest on cash and cash equivalents 193 92 NET DECREASE IN CASH AND CASH EQUIVALENTS (104,367) (35,119) As of 2024, disposals of leased assets are reported under “Net decrease related to transactions involving non-financial assets and liabilities”. In 2023, they were reported within the “Other movements” line for EUR 3,612 million. 4.5Statement of changes in shareholders’ equity between 1 January 2023 and 31 December 2024 In millions of euros Capital and retained earnings Changes in assets and liabilities recognised directly in equity that will not be reclassified to profit or loss Changes in assets and liabilities recognised directly in equity that will not be reclassified to profit or loss Changes in assets and liabilities recognised directly in equity that may be reclassified to profit or loss Total shareholders’ equity Minority interests (note 8.b) Total equity Share capital and additional paid-in-capital Undated super subordinated notes Non-distributed reserves Total Financial assets designated as at fair value through equity Own-credit valuation adjustment of debt securities designated as at fair value through profit or loss Remeasurement gains (losses) related to post-employment benefit plans Discontinued activities Total Exchange differences Financial assets at fair value through equity Financial investments and contracts of insurance activities Derivatives used for hedging purposes Discontinued activities Total Balance at 31 December 2022 26,190 11,800 86,866 124,856 585 119 540 (119) 1,125 (3,190) (511) (1,462) 251 168 (4,744) 121,237 4,773 126,010 Appropriation of net income for 2022 (4,744) (4,744) - - (4,744) (179) (4,923) Increases in capital and issues 1,670 (2) 1,668 - - 1,668 316 1,984 Reductions or redemptions of capital (4,983) (17) (5,000) - - (5,000) (5,000) Movements in own equity instruments (5) 2 (218) (221) - - (221) (221) Share-based payment plans (8) (8) - - (8) 1 (7) Remuneration on undated super subordinated notes (654) (654) - - (654) (3) (657) Impact of internal transactions on minority shareholders (note 8.b) (21) (21) - - (21) 21 - Movements in consolidation scope impacting minority shareholders (note 8.b) - - - - (90) (90) Acquisitions of additional interests or partial sales of interests (note 8.b) 1 1 - - 1 (12) (11) Change in commitments to repurchase minority shareholders' interests 9 9 - - 9 (225) (216) Other movements (4) (4) - - (4) (4) Realised gains or losses reclassified to retained earnings (73) (73) (34) (8) (4) 119 73 - - - Changes in assets and liabilities recognised directly in equity - 304 35 (105) 234 (239) 153 490 34 (168) 270 504 92 596 Net income for 2023 10,975 10,975 - - 10,975 431 11,406 Balance at 31 December 2023 21,202 13,472 92,110 126,784 855 146 431 - 1,432 (3,429) (358) (972) 285 - (4,474) 123,742 5,125 128,867 Appropriation of net income for 2023 (5,198) (5,198) - - (5,198) (364) (5,562) Increases in capital and issues - - - - 5 5 Reductions or redemptions of capital (1,051) (1,326) (62) (2,439) - - (2,439) (2,439) Movements in own equity instruments (18) (17) 423 388 - - 388 388 Share-based payment plans (5) (5) - - (5) (5) Remuneration on undated super subordinated notes (743) (743) - - (743) (8) (751) Movements in consolidation scope impacting minority shareholders (note 8.b) - - - - 258 258 Acquisitions of additional interests or partial sales of interests (note 8.b) 4 4 - - 4 192 196 Change in commitments to repurchase minority shareholders’ interests (4) (4) - - (4) 93 89 Other movements (39) (39) - - (39) 2 (37) Realised gains or losses reclassified to retained earnings 209 209 (210) 1 (209) - - - Changes in assets and liabilities recognised directly in equity - 79 (435) 165 (191) 1,218 (494) 365 (155) 934 743 202 945 Net income for 2024 11,688 11,688 - - 11,688 499 12,187 Balance at 31 December 2024 20,133 12,129 98,383 130,645 724 (288) 596 - 1,032 (2,211) (852) (607) 130 - (3,540) 128,137 6,004 134,141 4.6Notes to the financial statements prepared in accordance with IFRS as adopted by the European Union Note 1Summary of material accounting policies applied by the Group 1.aApplicable accounting 1.a.1Applicable accounting standards The consolidated financial statements of the BNP Paribas Group have been prepared in accordance with international accounting standards (International Financial Reporting Standards – IFRS), as adopted for use in the European Union(1). Accordingly, certain provisions of IAS 39 on hedge accounting have been excluded. Information on the nature and extent of risks relating to financial instruments as required by IFRS 7 “Financial Instruments: Disclosures” along with information on regulatory capital required by IAS 1 “Presentation of financial statements” are presented in chapter 5 of the Universal registration document. This information, which is an integral part of the notes to the consolidated financial statements of the BNP Paribas Group at 31 December 2024, is covered by the opinion of the Statutory Auditors on the consolidated financial statements, and is identified by the word “Audited” within this chapter. Section 4 of chapter 5, paragraph Exposures, provisions and cost of risk provides, in particular, IFRS 7 information on credit risk exposures and related impairment broken down according to whether the underlying loans are performing or non-performing, by geographic area and by industry. Further to the Pillar II recommendations of the Organisation for Economic Cooperation and Development (OECD) in relation to the international tax reform, the European Union adopted in December 2022 the 2022/2523 directive instituting a minimum corporate income tax for international groups, effective 1 January 2024. This directive was transposed by the 2024 Finance Act in France in December 2023. To clarify the directive’s potential impacts, on 23 May 2023 the IASB issued a series of amendments to IAS 12 “Income Taxes”, which were adopted by the European Union on 8 November 2023. In accordance with the provisions of these amendments, the Group applies the mandatory and temporary exception not to recognise deferred taxes associated with this additional taxation. The impact of the Pillar II reform is non-material for the Group. Income before tax and corporate income tax by country are presented in chapter 8 of the 2024 Universal registration document (part 8.6 section II Profit and Loss account items and headcount by country). In France, changes resulting from the pension reform enacted on 14 April 2023 constitute a change in post-employment benefits, based on IAS 19 § 104. The non-material impact of this change was recorded in the profit and loss account for the period. The introduction of other standards, amendments and interpretations that are mandatory as from 1 January 2024, in particular the amendment to IFRS 16 on Lease liabilities in a sale and lease back, had no effect on the Group’s financial statements at 31 December 2024. 1.a.2New major accounting standards, published but not yet applicable The Group did not early apply new standards, amendments and interpretations endorsed by the European Union when the application in 2024 was optional. The impact assessment of the new standards and amendments not yet applicable by the Group is presented below: Amendments to IFRS 9 "Financial Instruments” and IFRS 7 "Financial Instruments: Disclosures” relating to the classification and measurement of financial instruments. On 30 May 2024, the IASB published amendments to IFRS 9 and IFRS 7, which will be applicable for annual periods beginning on 1 January 2026. These amendments: clarify the date of recognition and derecognition of certain financial assets and liabilities, with a new exception for certain financial liabilities settled through an electronic payment system; clarify and add indications for assessing whether a financial asset meets the cash flow criterion, e.g. its cash flows are solely payments of principal and interest on the principal outstanding (SPPI); require disclosures in the notes to financial statements for certain instruments with contractual terms that can change the time or amount of cash flows upon the occurrence or non-occurrence of a contingent event (e.g. financial instruments with characteristics linked to the achievement of environmental, social and governance objectives); and update the information requirements for equity instruments designated at fair value through equity. Publication of IFRS 18 “Presentation and disclosure in financial statements” in replacement of IAS 1. IFRS 18 will be mandatory from 1 January 2027, with retrospective application. IFRS 18 includes many of the requirements of IAS 1 without changes and supplements them with new requirements relating to: the presentation of specific categories (operating, investment and financing) and sub-totals in the statement of profit or loss account; information to be disclosed in the notes to the financial statements on management-defined performance measures (MPM); aggregation and disaggregation of information in the statement of profit or loss account. The Bank is currently assessing the detailed implications of applying IFRS 18 to the Group’s consolidated financial statements. 1.bConsolidation 1.b.1Scope of consolidation The consolidated financial statements of BNP Paribas include entities that are controlled by the Group, jointly controlled, and under significant influence, with the exception of those entities whose consolidation is regarded as immaterial to the Group. Companies that hold shares in consolidated companies are also consolidated. Subsidiaries are consolidated from the date on which the Group obtains effective control. Entities under temporary control are included in the consolidated financial statements until the date of disposal. 1.b.2Consolidation methods Exclusive control Controlled enterprises are fully consolidated. The Group controls a subsidiary when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. For entities governed by voting rights, the Group generally controls the entity if it holds, directly or indirectly, the majority of the voting rights (and if there are no contractual provisions that alter the power of these voting rights) or if the power to direct the relevant activities of the entity is conferred on it by contractual agreements. Structured entities are entities established so that they are not governed by voting rights, for instance when those voting rights relate to administrative tasks only, whereas the relevant activities are directed by means of contractual arrangements. They often have the following features or attributes: restricted activities, a narrow and well-defined objective and insufficient equity to permit them to finance their activities without subordinated financial support. For these entities, the analysis of control shall consider the purpose and design of the entity, the risks to which the entity is designed to be exposed and to what extent the Group absorbs the related variability. The assessment of control shall consider all facts and circumstances able to determine the Group’s practical ability to make decisions that could significantly affect its returns, even if such decisions are contingent on uncertain future events or circumstances. In assessing whether it has power, the Group considers only substantive rights which it holds or which are held by third parties. For a right to be substantive, the holder must have the practical ability to exercise that right when decisions about the relevant activities of the entity need to be made. Control is reassessed if facts and circumstances indicate that there are changes to one or more of the elements of control. Where the Group contractually holds the decision-making power, for instance where the Group acts as fund manager, it shall determine whether it is acting as agent or principal. Indeed, when associated with a certain level of exposure to the variability of returns, this decision-making power may indicate that the Group is acting on its own account and that it thus has control over those entities. Minority interests are presented separately in the consolidated profit and loss account and balance sheet within consolidated equity. The calculation of minority interests takes into account the outstanding cumulative preferred shares classified as equity instruments issued by subsidiaries, when such shares are held outside the Group. As regards fully consolidated funds, units held by third-party investors are recognised as debts at fair value through profit or loss, inasmuch as they are redeemable at fair value at the subscriber’s initiative. For transactions resulting in a loss of control, any equity interest retained by the Group is remeasured at its fair value through profit or loss. Joint control Where the Group carries out an activity with one or more partners, sharing control by virtue of a contractual agreement which requires unanimous consent on relevant activities (those that significantly affect the entity’s returns), the Group exercises joint control over the activity. Where the jointly controlled activity is structured through a separate vehicle in which the partners have rights to the net assets, this joint venture is accounted for using the equity method. Where the jointly controlled activity is not structured through a separate vehicle or where the partners have rights to the assets and obligations for the liabilities of the jointly controlled activity, the Group accounts for its share of the assets, liabilities, revenues and expenses in accordance with the applicable IFRS. Significant influence Companies over which the Group exercises significant influence or associates are accounted for by the equity method. Significant influence is the power to participate in the financial and operating policy decisions of a company without exercising control. Significant influence is presumed to exist when the Group holds, directly or indirectly, 20% or more of the voting rights of a company. Interests of less than 20% can be included in the consolidation scope if the Group effectively exercises significant influence. This is the case for example for entities developed in partnership with other associates, where the BNP Paribas Group participates in strategic decisions of the enterprise through representation on the Board of directors or equivalent governing body, or exercises influence over the enterprise’s operational management by supplying management systems or senior managers, or provides technical assistance to support the enterprise’s development. Changes in the net assets of associates (companies accounted for under the equity method) are recognised on the assets side of the balance sheet under “Investments in equity-method entities” and in the relevant component of shareholders’ equity. Goodwill recorded on associates is also included under “Equity-method investments”. Whenever there is an indication of impairment, the carrying amount of the investment consolidated under the equity method (including goodwill) is subjected to an impairment test, by comparing its recoverable value (the higher of value-in-use and market value less costs to sell) to its carrying amount. Where appropriate, impairment is recognised under “Share of earnings of equity-method entities” in the consolidated income statement and can be reversed at a later date. If the Group’s share of losses of an equity-method entity equals or exceeds the carrying amount of its investment in this entity, the Group discontinues including its share of further losses. The investment is reported at nil value. Additional losses of the equity-method entity are provided for only to the extent that the Group has contracted a legal or constructive obligation or has made payments on behalf of this entity. Where the Group holds an interest in an associate, directly or indirectly through an entity that is a venture capital organisation, a mutual fund, an open-ended investment company or similar entity such as an investment-related insurance fund, it may elect to measure that interest at fair value through profit or loss. Realised gains and losses on investments in consolidated undertakings are recognised in the profit and loss account under “Net gain on non-current assets”. The consolidated financial statements are prepared using uniform accounting policies for similar transactions and other events occurring in similar circumstances. 1.b.3Consolidation rules Elimination of intragroup balances and transactions Intragroup balances arising from transactions between consolidated enterprises, and the transactions themselves (including income, expenses and dividends), are eliminated. Profits and losses arising from intragroup sales of assets are eliminated, except where there is an indication that the asset sold is impaired. Unrealised gains and losses included in the value of financial instruments at fair value through equity are maintained in the consolidated financial statements. By way of exception, amendments to IAS 32 and IFRS 9 allow intragroup assets to be retained in the balance sheet if they are held as underlying components of direct participating contracts. These assets are measured at fair value through profit or loss. These are: own shares by amendment to IAS 32; financial liabilities issued by the entity in amendment to IFRS 9. These provisions are applied by the Group’s insurance entities that issue direct participating contracts, the underlying elements of which include securities issued by the Group either directly or through consolidated investment entities. Translation of accounts expressed in foreign currencies The consolidated financial statements of BNP Paribas are prepared in euros. The financial statements of enterprises whose functional currency is not the euro are translated using the closing rate method. Under this method, all assets and liabilities, both monetary and non-monetary, are translated using the spot exchange rate at the balance sheet date. Income and expense items are translated at the average rate for the period. Financial statements of the Group’s subsidiaries located in hyperinflationary economies, previously adjusted for inflation by applying a general price index, are translated using the closing rate. This rate applies to the translation of assets and liabilities as well as income and expenses. Differences arising from the translation of balance sheet items and profit and loss items are recorded in shareholders’ equity under “Exchange differences”, and in “Minority interests” for the portion attributable to outside investors. Under the optional treatment permitted by IFRS 1, the Group has reset to zero all translation differences, by booking all cumulative translation differences attributable to shareholders and to minority interests in the opening balance sheet at 1 January 2004 to retained earnings. On liquidation or disposal of some or all of an interest held in a foreign enterprise located outside the Eurozone, leading to a change in the nature of the investment (loss of control, loss of significant influence or loss of joint control without keeping a significant influence), the cumulative exchange difference at the date of liquidation or sale is recognised in the profit and loss account. Should the percentage of interest change without leading to a modification in the nature of the investment, the exchange difference is reallocated between the portion attributable to shareholders and that attributable to minority interests if the entity is fully consolidated; if the entity is consolidated under the equity method, it is recorded in profit or loss for the portion related to the interest sold. 1.b.4Business combinations and measurement of goodwill Business combinations Business combinations are accounted for using the purchase method. Under this method, the acquiree’s identifiable assets and liabilities assumed are measured at fair value at the acquisition date except for non-current assets classified as assets held for sale which are accounted for at fair value less costs to sell. The acquiree’s contingent liabilities are not recognised in the consolidated balance sheet unless they represent a present obligation on the acquisition date and their fair value can be measured reliably. The cost of a business combination is the fair value, at the date of exchange, of assets given, liabilities incurred or assumed, and equity instruments issued to obtain control of the acquiree. Costs directly attributable to the business combination are treated as a separate transaction and recognised through profit or loss. Any contingent consideration is included in the cost, as soon as control is obtained, at fair value on the date when control was acquired. Subsequent changes in the value of any contingent consideration recognised as a financial liability are recognised through profit or loss. The Group may recognise any adjustments to the provisional accounting within 12 months of the acquisition date. Goodwill represents the difference between the cost of the combination and the acquirer’s interest in the net fair value of the identifiable assets and liabilities of the acquiree at the acquisition date. Positive goodwill is recognised in the acquirer’s balance sheet, while negative goodwill is recognised immediately in profit or loss, on the acquisition date. Minority interests are measured at their share of the fair value of the acquiree’s identifiable assets and liabilities. However, for each business combination, the Group can elect to measure minority interests at fair value, in which case a proportion of goodwill is allocated to them. To date, the Group has never used this latter option. Goodwill is recognised in the functional currency of the acquiree and translated at the closing exchange rate. On the acquisition date, any previously held equity interest in the acquiree is remeasured at its fair value through profit or loss. In the case of a step acquisition, the goodwill is therefore determined by reference to the acquisition-date fair value. Since the revised IFRS 3 has been applied prospectively, business combinations completed prior to 1 January 2010 were not restated for the effects of changes to IFRS 3. As permitted under IFRS 1, business combinations that took place before 1 January 2004 and were recorded in accordance with the previously applicable accounting standards (French GAAP), had not been restated in accordance with the principles of IFRS 3. Specificities relating to insurance contracts acquired through business combinations are set out in note 1.g.2 in the paragraph Recognition and derecognition. Measurement of goodwill The BNP Paribas Group tests goodwill for impairment on a regular basis. Cash-generating units The BNP Paribas Group has split all its activities into cash-generating units(2) representing major business lines. This split is consistent with the Group’s organisational structure and management methods, and reflects the independence of each unit in terms of results and management approach. It is reviewed on a regular basis in order to take account of events likely to affect the composition of cash-generating units, such as acquisitions, disposals and major reorganisations. Testing cash-generating units for impairment Goodwill allocated to cash-generating units is tested for impairment annually and whenever there is an indication that a unit may be impaired, by comparing the carrying amount of the unit with its recoverable amount. If the recoverable amount is less than the carrying amount, an irreversible impairment loss is recognised, and the goodwill is written down by the excess of the carrying amount of the unit over its recoverable amount. Recoverable amount of a cash-generating unit The recoverable amount of a cash-generating unit is the higher of the fair value of the unit less costs to sell, and its value in use. Fair value is the price that would be obtained from selling the unit at the market conditions prevailing at the date of measurement, as determined mainly by reference to actual prices of recent transactions involving similar entities or on the basis of stock market multiples for comparable companies. Value in use is based on an estimate of the future cash flows to be generated by the cash-generating unit, derived from the annual forecasts prepared by the unit’s management and approved by Group Executive Management, and from analyses of changes in the relative positioning of the unit’s activities on their market. These cash flows are discounted at a rate that reflects the return that investors would require from an investment in the business sector and region involved. 1.cTranslation of foreign currency transactions The methods used to account for assets and liabilities relating to foreign currency transactions entered into by the Group, and to measure the foreign exchange risk arising on such transactions, depend on whether the asset or liability in question is classified as a monetary or a non-monetary item. Monetary assets and liabilities(3) expressed in foreign currencies Monetary assets and liabilities expressed in foreign currencies are translated into the functional currency of the relevant Group entity at the closing rate. Foreign exchange differences are recognised in the profit and loss account, except for those arising from financial instruments designated as a cash flow hedge or a net foreign investment hedge, which are recognised in shareholders’ equity. Non-monetary assets and liabilities expressed in foreign currencies Non-monetary assets may be measured either at historical cost or at fair value. Non-monetary assets expressed in foreign currencies are translated using the exchange rate at the date of the transaction (i.e. date of initial recognition of the non-monetary asset) if they are measured at historical cost, and at the closing rate if they are measured at fair value. Foreign exchange differences relating to non-monetary assets denominated in foreign currencies and recognised at fair value (equity instruments) are recognised in profit or loss when the asset is classified in “Financial assets at fair value through profit or loss” and in equity when the asset is classified under “Financial assets at fair value through equity”. 1.dFinancial information in hyperinflationary economies The Group applies IAS 29 to the presentation of the accounts of its consolidated subsidiaries located in countries whose economies are in hyperinflation. IAS 29 presents a number of quantitative and qualitative criteria to assess whether an economy is hyperinflationary, including a cumulative, three-year inflation rate approaching or exceeding 100%. IAS 29 standard requires that the balance sheet and the profit or loss amounts not already expressed in terms of the measuring unit current at the end of the reporting period be restated by applying a general price index. For this purpose: All non-monetary assets and liabilities of subsidiaries in hyperinflationary countries, including equity, are restated on the basis of changes in the Consumer Price Index (CPI) from the date of initial recognition in the balance sheet to the end of the reporting period. Each line of the profit and loss account is restated on the basis of changes in CPI between the dates when the transactions were realised and the end of the reporting period. Assets and liabilities linked by agreement to changes in prices, such as index-linked bonds and loans, are adjusted at the reporting date, in accordance with the agreement. In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. The gain or loss on the net monetary position, which reflects this gain or loss on purchasing power incurred by the Group during the reporting period, may be derived as the difference resulting from the restatement of non‑monetary assets, equity and the profit and loss account and the adjustment of index linked assets and liabilities. This gain or loss is recognised under “Net gain on non-current assets”. Financial statements of these subsidiaries are then translated into euros at the closing rate. In accordance with the provisions of the IFRIC’s decision of March 2020 on classifying the effects of indexation and translation of accounts of subsidiaries in hyperinflationary economies, the Group has opted to present these effects (including the net book value effect at the date of the initial application of IAS 29) within changes in assets and liabilities recognised directly through equity related to exchange differences. Since 1 January 2022, the Group has applied IAS 29 to the presentation of the accounts of its consolidated subsidiaries located in Türkiye. 1.eNet interest income, Income and expenses from commissions and other activities 1.e.1Net interest income Income and expenses relating to debt instruments measured at amortised cost and at fair value through shareholders’ equity are recognised in the income statement using the effective interest rate method. The effective interest rate is the rate that ensures that the discounted estimated future cash flows through the expected life of the financial instrument or, when appropriate, a shorter period, is equal to the carrying amount of the asset or liability in the balance sheet. The effective interest rate measurement takes into account all fees received or paid that are an integral part of the effective interest rate of the contract, transaction costs, and premiums and discounts. Commissions considered as an additional component of interest are included in the effective interest rate and are recognised in the profit and loss account in “Net interest income”. This category includes notably commissions on financing commitments when it is considered that the setting up of a loan is more likely than unlikely. Commissions received in respect of financing commitments are deferred until they are drawn and then included in the effective interest rate calculation and amortised over the life of the loan. Syndication commissions are also included in this category for the portion of the commission equivalent to the remuneration of other syndication participants. 1.e.2Income and expenses from commissions and other activities Commissions received with regards to banking and similar services provided (except for those that are integral part of the effective interest rate), revenues from property development and revenues from services provided in connection with lease contracts fall within the scope of IFRS 15 “Revenue from Contracts with Customers”. This standard defines a single model for recognising revenue based on principles set out in five steps. These five steps enable to identify the distinct performance obligations included in the contracts and allocate the transaction price among them. The income related to those performance obligations is recognised as revenue when the latter are satisfied, namely when the control of the promised goods or services has been transferred. The price of a service may contain a variable component. Variable amounts may be recognised in the income statement only if it is highly probable that the amounts recorded will not result in a significant downward adjustment. Commission The Group records commission income and expense in profit or loss either: over time as the service is rendered when the client receives continuous service. These include, for example, certain commissions on transactions with customers when services are rendered on a continuous basis, commissions on financing commitments that are not included in the interest margin, because the probability that they give rise to the drawing up of a loan is low, commissions on financial collateral, clearing commissions on financial instruments, commissions related to trust and similar activities, securities custody fees, etc. Commissions received under financial guarantee commitments are deemed to represent the initial fair value of the commitment. The resulting liability is subsequently amortised over the term of the commitment, in commission income; or at a point in time when the service is rendered, in other cases. These include, for example, distribution fees received, loan syndication fees remunerating the arrangement service, advisory fees, etc. Income and expenses from other activities Margins on property development as well as income and expenses from services provided in connection with lease contracts are recorded under “Income from other activities” in the profit or loss account. With regard to the revenues and expenses composing the margins of property development transactions, the Group records them in the profit or loss account: over time, when the performance obligation creates or enhances an asset over which the customer obtains control as it is created or enhanced (e.g. work in progress controlled by the client on the land on which the asset is located, etc.), or where the service performed does not create an asset that the entity could otherwise use and gives it an enforceable right to payment for performance completed to date. This is the case for contracts such as VEFA (sale in the future state of completion) in France; at completion in other cases. Provisions and impairment are recognised when the margin above is negative (provisions for onerous contracts and inventories impairment). Regarding income from services provided in connection with lease contracts, the Group records them in profit or loss as the service is rendered, i.e. in proportion to the costs incurred for maintenance contracts. The corresponding expenses are recognised when the service is rendered. At the same time, provisions are recognised to cover risks mainly related to services provided like risk retention and relay-assistance vehicles. 1.fFinancial assets and liabilities Financial assets are classified at amortised cost, at fair value through shareholders’ equity or at fair value through profit or loss depending on the business model and the contractual features of the instruments at initial recognition. Financial liabilities are classified at amortised cost or at fair value through profit or loss at initial recognition. Financial assets and liabilities are recognised in the balance sheet when the Group becomes a party to the contractual provisions of the instrument. Purchases and sales of financial assets made within a period established by the regulations or by a convention in the relevant marketplace are recognised in the balance sheet at the settlement date. 1.f.1Financial assets at amortised cost Financial assets are classified at amortised cost if the following two criteria are met: the business model objective is to hold the instrument in order to collect the contractual cash flows and the cash flows consist solely of payments relating to principal and interest on the principal. Business model criterion Financial assets are managed within a business model whose objective is to hold financial assets in order to collect cash flows through the collection of contractual payments over the life of the instrument. The realisation of disposals close to the maturity of the instrument and for an amount close to the remaining contractual cash flows, or due to an increase in the counterparty’s credit risk is consistent with a business model whose objective is to collect the contractual cash flows (“collect”). Sales imposed by regulatory requirements or to manage the concentration of credit risk (without an increase in the asset’s credit risk) are also consistent with this business model when they are infrequent or insignificant in value. Cash flow criterion The cash flow criterion is satisfied if the contractual terms of the debt instrument give rise, on specified dates, to cash flows that are solely repayments of principal and interest on the principal amount outstanding. The criterion is not met in the event of a contractual characteristic that exposes the holder to risks or to the volatility of contractual cash flows that are inconsistent with those of a non-structured or “basic lending” arrangement. It is also not satisfied in the event of leverage that increases the variability of the contractual cash flows. Interest consists of consideration for the time value of money, for the credit risk, and for the remuneration of other risks (e.g. liquidity risk), costs (e.g. administration fees), and a profit margin consistent with that of a basic lending arrangement. The existence of negative interest does not call into question the cash flow criterion. The time value of money is the component of interest - usually referred to as the “rate” component - which provides consideration for only the passage of time. The relationship between the interest rate and the passage of time must not be modified by specific characteristics that could call into question the respect of the cash flow criterion. Thus, when the variable interest rate of the financial asset is periodically reset at a frequency that does not match the duration for which the interest rate is established, the time value of money may be considered as modified and, depending on the significance of that modification, the cash flow criterion may not be met. Some financial assets held by the Group present a mismatch between the interest rate reset frequency and the maturity of the index, or interest rates indexed to an average of benchmark rate. The Group has developed a consistent methodology for analysing this alteration of the time value of money. Regulated rates meet the cash flow criterion when they provide consideration that is broadly consistent with the passage of time and do not expose to risks or volatility in the contractual cash flows that would be inconsistent with those of a basic lending arrangement (example: loans granted in the context of Livret A savings accounts). Some contractual clauses may change the timing or the amount of cash flows. Early redemption options do not call into question the cash flow criterion if the prepayment amount substantially represents the principal amount outstanding and the interest thereon, which may include reasonable compensation for the early termination of the contract. For example, as regards loans to retail customers, the compensation limited to 6 months of interest or 3% of the capital outstanding is considered reasonable. Actuarial penalties, corresponding to the present value of the difference between the residual contractual cash flows of the loan, and their reinvestment in a loan to a similar counterparty or in the interbank market for a similar residual maturity are also considered as reasonable, even when the compensation can be positive or negative (i.e. “symmetric” compensation). An option that permits the issuer or the holder of a financial instrument to change the interest rate from floating to fixed rate does not breach the cash flow criterion if the fixed rate is determined at origination, or if it represents the time value of money for the residual maturity of the instrument at the date of exercise of the option. Clauses included in financing granted to encourage the sustainable development of companies which adjust the interest margin depending on the achievement of environmental, social or governance (ESG) objectives and disclosed in chapter 7 of the Universal registration document, do not call into question the cash flow criterion when such an adjustment is considered to be minimal. Structured instruments indexed to ESG market indices do not meet the cash flow criterion. In the particular case of financial assets contractually linked to payments received on a portfolio of underlying assets and which include a priority order for payment of cash flows between investors (“tranches”), thereby creating concentrations of credit risk, a specific analysis is carried out. The contractual characteristics of the tranche and those of the underlying financial instrument portfolios must meet the cash flow criterion and the credit risk exposure of the tranche must be equal to or lower than the exposure to credit risk of the underlying pool of financial instruments. Certain loans may be “non-recourse”, either contractually, or in substance when they are granted to a special purpose entity. That is in particular the case of numerous project financing or asset financing loans. The cash flow criterion is met as long as these loans do not represent a direct exposure on the assets acting as collateral. In practice, the sole fact that the financial asset explicitly gives rise to cash flows that are consistent with payments of principal and interest is not sufficient to conclude that the instrument meets the cash flow criterion. In that case, the particular underlying assets to which there is limited recourse shall be analysed using the “look-through” approach. If those assets do not themselves meet the cash flow criterion, the existing credit enhancement is assessed. The following aspects are considered: structuring and sizing of the transaction, own funds level of the structure, expected source of repayment, price volatility of the underlying assets. The “financial assets at amortised cost” category includes, in particular, loans granted by the Group, as well as reverse repurchase agreements and securities held by the Group ALM Treasury in order to collect contractual flows and meeting the cash flow criterion. Recognition On initial recognition, financial assets are recognised at fair value, including transaction costs directly attributable to the transaction as well as commissions related to the origination of the loans. They are subsequently measured at amortised cost, including accrued interest and net of repayments of principal and interest during the past period. These financial assets are also subject from their initial recognition, to the measurement of a loss allowance for expected credit losses (note 1.f.5). Interest is calculated using the effective interest method determined at inception of the contract. 1.f.2Financial assets at fair value through shareholders’ equity Debt instruments Debt instruments are classified at fair value through shareholders’ equity if the following two criteria are met: business model criterion: financial assets are held in a business model whose objective is achieved by both holding the financial assets in order to collect contractual cash flows and selling the financial assets (“collect and sale”). The latter is not incidental but is an integral part of the business model; cash flow criterion: the principles are identical to those applicable to financial assets at amortised cost. The securities held by the Group ALM Treasury in order to collect contractual flows or to be sold and meeting the cash flow criterion are in particular classified in this category. On initial recognition, financial assets are recognised at their fair value, including transaction costs directly attributable to the transaction. They are subsequently measured at fair value and changes in fair value are recognised, under a specific line of shareholders’ equity entitled “Changes in assets and liabilities recognised directly in equity that may be reclassified to profit or loss”. These financial assets are also subject to the measurement of a loss allowance for expected credit losses on the same approach as for debt instruments at amortised cost. The counterparty of the related impact in cost of risk is recognised in the same specific line of shareholders’ equity. On disposal, changes in fair value previously recognised in shareholders’ equity are reclassified to profit or loss. In addition, interest is recognised in the income statement using the effective interest method determined at the inception of the contract. Equity instruments Investments in equity instruments such as shares are classified on option, and on a case-by-case basis, at fair value through shareholders’ equity (under a specific line). On disposal of the shares, changes in fair value previously recognised in equity are not recognised in profit or loss. Only dividends, if they represent remuneration for the investment and not repayment of capital, are recognised in profit or loss. These instruments are not subject to impairment. Investments in mutual funds puttable to the issuer do not meet the definition of equity instruments. They do not meet the cash flow criterion either, and thus are recognised at fair value through profit or loss. 1.f.3Financing and guarantee commitments Financing and financial guarantee commitments that are not recognised at fair value through profit or loss are presented respectively in notes 6.a and 6.b. They are subject to the measurement of a loss allowance for expected credit losses. These loss allowances are presented under “Provisions for contingencies and charges”. The Group may issue performance guarantees in conjunction with integral indemnity agreements that provide the Group the right to claim back any amounts paid out from the party whose non-performance would have led to the guarantee being called. This type of commitment exposes the Group to credit risk and therefore results in the recognition of expected credit losses. 1.f.4Regulated savings and loan contracts Home savings accounts (Comptes Épargne-Logement – “CEL”) and home savings plans (Plans d’Épargne Logement – “PEL”) are government-regulated retail products sold in France. They combine a savings phase and a loan phase which are inseparable, with the loan phase contingent upon the savings phase. These products contain two types of obligations for BNP Paribas: an obligation to pay interest on the savings for an indefinite period, at a rate set by the government at the inception of the contract (in the case of PEL products) or at a rate reset every six months using an indexation formula set by law (in the case of CEL products); and an obligation to lend to the customer (at the customer’s option) an amount contingent upon the rights acquired during the savings phase, at a rate set at the inception of the contract (in the case of PEL products) or at a rate contingent upon the savings phase (in the case of CEL products). The Group’s future obligations with respect to each generation (in the case of PEL products, a generation comprises all products with the same interest rate at inception; in the case of CEL products, all such products constitute a single generation) are measured by discounting potential future earnings from at-risk outstandings for that generation. At-risk outstandings are estimated on the basis of a historical analysis of customer behaviour, and are equivalent to: for the loan phase: statistically probable loans outstanding and actual loans outstanding; for the savings phase: the difference between statistically probable outstandings and minimum expected outstandings, with minimum expected outstandings being deemed equivalent to unconditional term deposits. Earnings for future periods from the savings phase are estimated as the difference between the investment rate and the fixed savings interest rate on at-risk savings outstanding for the period in question. Earnings for future periods from the loan phase are estimated as the difference between the refinancing rate and the fixed loan interest rate on at-risk loans outstanding for the period in question. The investment rate for savings and the refinancing rate for loans are derived from the swap yield curve and from the spreads expected on financial instruments of similar type and maturity. Spreads are determined on the basis of actual spreads on fixed-rate home loans in the case of the loan phase and products offered to individual clients in the case of the savings phase. In order to reflect the uncertainty of future interest rate trends, and the impact of such trends on customer behaviour models and on at-risk outstandings, the obligations are estimated using the Monte-Carlo method. Where the sum of the Group’s estimated future obligations with respect to the savings and loan phases of any generation of contracts indicates a potentially unfavourable situation for the Group, a provision is recognised (with no offset between generations) in the balance sheet in “Provisions for contingencies and charges”. Movements in this provision are recognised as interest income in the profit and loss account. 1.f.5Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity The impairment model for credit risk is based on expected losses. This model applies to loans and debt instruments measured at amortised cost or at fair value through equity, to loan commitments and financial guarantee contracts that are not recognised at fair value, as well as to lease receivables, trade receivables and contract assets. General model The Group identifies three “stages” that each correspond to a specific status with regards to the evolution of counterparty credit risk since the initial recognition of the asset. 12-month expected credit losses (“stage 1”): if at the reporting date, the credit risk of the financial instrument has not increased significantly since its initial recognition, this instrument is impaired at an amount equal to 12-month expected credit losses (resulting from the risk of default within the next 12 months); Lifetime expected credit losses for non-impaired assets (“stage 2”): the loss allowance is measured at an amount equal to the lifetime expected credit losses if the credit risk of the financial instrument has increased significantly since initial recognition, but the financial asset is not considered credit-impaired or doubtful; Lifetime expected credit losses for credit-impaired or doubtful financial assets (“stage 3”): the loss allowance is also measured for an amount equal to the lifetime expected credit losses. This general model is applied to all instruments within the scope of IFRS 9 impairment, except for purchased or originated credit-impaired financial assets and instruments for which a simplified model is used (see below). The IFRS 9 expected credit loss approach is symmetrical, i.e. if lifetime expected credit losses have been recognised in a previous reporting period, and if it is assessed in the current reporting period that there is no longer any significant increase in credit risk since initial recognition, the loss allowance reverts to a 12-months expected credit loss. As regards interest income, under “stages” 1 and 2, it is calculated on the gross carrying amount. Under “stage 3”, interest income is calculated on the amortised cost (i.e. the gross carrying amount adjusted for the loss allowance). Definition of default The definition of default is aligned with the Basel regulatory default definition, with a rebuttable presumption that the default occurs no later than 90 days past due. This definition takes into account the EBA guidelines of 28 September 2016, notably those regarding the thresholds applicable for the counting of past-due and probation periods. The definition of default is used consistently for assessing the increase in credit risk and measuring expected credit losses. Credit-impaired or doubtful financial assets Definition A financial asset is considered credit-impaired or doubtful and classified in “stage 3” when one or more events that have a detrimental impact on the estimated future cash flows of that financial asset have occurred. At an individual level, objective evidence that a financial asset is credit-impaired includes observable data regarding the following events: the existence of accounts that are more than 90 days past due; knowledge or indications that the borrower is experiencing significant financial difficulties, such that a risk can be considered to have arisen regardless of whether the borrower has missed any payments; concessions with respect to the credit terms granted to the borrower that the lender would not have considered had the borrower not been in financial difficulty (see section Restructuring of financial assets for financial difficulties). Specific cases of purchased or originated credit-impaired assets In some cases, financial assets are credit-impaired at initial recognition. For these assets, no loss allowance is recorded on initial recognition. The effective interest rate is calculated taking into account the lifetime expected credit losses in the initial estimated cash flows. Any change in lifetime expected credit losses since initial recognition, positive or negative, is recognised as a loss allowance adjustment in profit or loss. Simplified model The simplified approach consists in accounting for a loss allowance corresponding to lifetime expected credit losses since initial recognition, and at each reporting date. The Group applies this model to trade receivables with a maturity shorter than 12 months. Significant increase in credit risk A significant increase in credit risk may be assessed on an individual basis or on a collective basis (by grouping financial instruments according to common credit risk characteristics), taking into account all reasonable and supportable information and comparing the risk of default of the financial instrument at the reporting date with the risk of default of the financial instrument at the date of initial recognition. Assessment of deterioration is based on the comparison of the probabilities of default derived from the ratings on the date of initial recognition with those existing at the reporting date. There is also, according to the standard, a rebuttable presumption that the credit risk of an instrument has significantly increased since initial recognition when the contractual payments are more than 30 days past due. In the consumer credit specialist business, a significant increase in credit risk is also considered when a past due event has occurred within the last 12 months, even if it has since been regularised. From 2024, this specificity no longer applies to most exposures in the eurozone. The approaches applied to assess the significant increase in credit risk are detailed in note 2.g Cost of risk. Measurement of expected credit losses Expected credit losses are defined as an estimate of credit losses (i.e. the present value of all cash shortfalls) weighted by the probability of occurrence of these losses over the expected life of the financial instruments. They are measured on an individual basis, for all exposures. In practice, for exposures classified in stage 1 and stage 2, expected credit losses are measured as the product of the probability of default (“PD”), Loss Given Default (“LGD”) and Exposure at Default (“EAD”), discounted at the effective interest rate of the exposure (EIR). They result from the risk of default within the next 12 months (stage 1), or from the risk of default over the maturity of the facility (stage 2). In the consumer credit specialist business, because of the specificity of credit exposures, the methodology used is based on the probability of transition to term forfeiture, and on discounted loss rates after term forfeiture. These parameters are measured on a statistical basis for homogeneous populations. From 2024, this specificity no longer applies to most exposures in the Eurozone. For exposures classified in stage 3, expected credit losses are measured as the value, discounted at the effective interest rate, of all cash shortfalls over the life of the financial instrument. Cash shortfalls represent the difference between the cash flows that are due in accordance with the contract, and the cash flows that are expected to be received. Where appropriate, the estimate of expected cash flows takes into account a cash flow scenario arising from the sale of the defaulted loans or groups of loans. Proceeds from the sale are recorded net of costs to sell. The methodology developed is based on existing concepts and methods (in particular the Basel framework) on exposures for which capital requirement for credit risk is measured according to the Internal Ratings-Based Approach (IRBA) methodology. This method is also applied to portfolios for which capital requirement for credit risk is measured according to the standardised approach. Besides, the Basel framework has been adjusted in order to be compliant with IFRS 9 requirements, in particular the use of forward-looking information. Maturity All contractual terms of the financial instrument are taken into account, including prepayment, extension and similar options. In the rare cases where the expected life of the financial instrument cannot be estimated reliably, the residual contractual term is used. The standard specifies that the maximum period to consider when measuring expected credit losses is the maximum contractual period. However, for revolving credit cards and overdrafts, in accordance with the exception provided by IFRS 9 for these products, the maturity considered for measuring expected credit losses is the period over which the entity is exposed to credit risk, which may extend beyond the contractual maturity (notice period). For revolving credits and overdrafts to non-retail counterparties, the contractual maturity can be used, for example if the next review date is the contractual maturity as they are individually managed. Probabilities of Default (PD) Probability of Default is an estimate of the likelihood of default over a given time horizon. The determination of the PD is based on the Group’s internal rating system, which is described in chapter 5 of the Universal registration document (section 5.4 Credit risk – Credit risk management policy). This section describes how Environmental, social and governance (ESG) risks are taken into account in credit and rating policies, notably with the introduction of a new tool: the ESG Assessment. The measurement of expected credit losses requires the estimation of both 1-year probabilities of default and lifetime probabilities of default. 1-year PDs are derived from long term average regulatory “through the cycle” PDs to reflect the current situation and macroeconomic scenarios (“Point in Time” or “PIT”). Lifetime PDs are determined based on the rating migration matrices reflecting the expected changes in the rating of the exposure until maturity, and the associated probabilities of default. Loss Given Default (LGD) Loss Given Default is the difference between contractual cash flows and expected cash-flows, discounted using the effective interest rate (or an approximation thereof) at the default date. LGD is expressed as a percentage of the Exposure at Default (EAD). The estimate of expected cash flows takes into account cash flows resulting from the sale of collateral held or other credit enhancements if they are part of the contractual terms and are not accounted for separately by the entity (for example, a mortgage associated with a residential loan), net of the costs of obtaining and selling the collateral. For guaranteed loans, the guarantee is considered as integral to the loan agreement if it is embedded in the contractual clauses of the loan, or if it was granted concomitantly to the loan, and if the expected reimbursement amount can be attached to a loan in particular (i.e. absence of pooling effect by means of a tranching mechanism, or the existence of a global cap for a whole portfolio). In such case, the guarantee is taken into account when measuring the expected credit losses. Otherwise, it is accounted for as a separate reimbursement asset. The LGD used for IFRS 9 purposes is derived from the Basel LGD parameters. It is adjusted for downturn and conservatism margins (in particular regulatory margins), except for margins for model uncertainties. For corporate clients, this LGD is determined considering macroeconomic scenarios. Exposure at Default (EAD) Exposure at Default (EAD) of an instrument is the anticipated outstanding amount owed by the obligor at the time of default. It is determined by the expected payment profile taking into account, depending on the product type: the contractual repayment schedule, expected early repayments and expected future drawings for revolving facilities. Forward-looking information The amount of expected credit losses is measured on the basis of probability-weighted scenarios, in view of past events, current conditions and reasonable and supportable economic forecasts. From 31 December 2024, forward‑looking information specifically takes into account risks related to climate change transition, in particular through the use of long-term scenarios. The approaches applied to take into account forward-looking information when measuring expected credit losses are detailed in note 2.g Cost of risk. Write-offs A write-off consists in reducing the gross carrying amount of a financial asset when there are no longer reasonable expectations of recovering that financial asset in its entirety or a portion thereof, or when it has been fully or partially forgiven. The write-off is recorded when all other means available to the Bank for recovering the receivables or guarantees have failed, and also generally depends on the context specific to each jurisdiction. If the amount of loss on write-off is greater than the accumulated loss allowance, the difference is recognised as an additional impairment loss in “Cost of risk”. For any recovery once the financial asset (or part thereof) is no longer recognised on the balance sheet, the amount received is recorded as a gain in “Cost of risk”. Recoveries through the repossession of the collateral When a loan is secured by a financial or a non-financial asset serving as a guarantee and the counterparty is in default, the Group may decide to exercise the guarantee and, depending on the jurisdiction, it may then become owner of the asset. In such a situation, the loan is written-off against the asset received as collateral. Once ownership of the asset is effective, it is recognised at fair value and classified according to the intent of use. Restructuring of financial assets for financial difficulties A restructuring due to the borrower’s financial difficulties is defined as a change in the terms and conditions of the initial transaction that the Group is considering only for economic or legal reasons related to the borrower’s financial difficulties. For restructurings not resulting in derecognition of the financial asset, the restructured asset’s gross carrying amount is reduced to the discounted amount, using the original effective interest rate of the asset, of the new expected future flows. The change in the gross carrying amount of the asset is recorded in the income statement in “Cost of risk”. The existence of a significant increase in credit risk for the financial instrument is then assessed by comparing the risk of default after the restructuring (under the revised contractual terms) and the risk of default at the initial recognition date (under the original contractual terms). In order to demonstrate that the criteria for recognising lifetime expected credit losses are no longer met, good payment behaviour will have to be observed over a certain period of time. When the restructuring consists of a partial or total exchange against other substantially different assets (for example, the exchange of a debt instrument against an equity instrument), it results in the extinction of the original asset and the recognition of the assets remitted in exchange, measured at their fair value at the date of exchange. The difference in value is recorded in the income statement in “Cost of risk”. Modifications to financial assets that are not due to a borrower’s financial difficulties, or granted in the context of a moratorium (i.e. commercial renegotiations) are generally analysed as the early repayment of the former loan, which is then derecognised, followed by the set-up of a new loan at market conditions. If there is no significant repayment penalty, they consist in resetting the interest rate of the loan at market conditions, with the client being in a position to change lender and not encountering any financial difficulties. Probation periods The Group applies observation periods to assess the possible return to a better stage. Accordingly, a 3-month probation period is observed for the transition from stage 3 to stage 2 which is extended to 12 months in the event of restructuring due to financial difficulties. For the transition from stage 2 to stage 1, a probation period of two years is observed for loans that have been restructured due to financial difficulties. 1.f.6Cost of risk Cost of risk includes the following items of profit or loss: impairment gains and losses resulting from the accounting of loss allowances for 12-month expected credit losses and lifetime expected credit losses (“stage 1” and “stage 2”) relating to debt instruments measured at amortised cost or at fair value through shareholders’ equity, loan commitments and financial guarantee contracts that are not recognised at fair value as well as lease receivables, contract assets and trade receivables; impairment gains and losses resulting from the accounting of loss allowances relating to financial assets (including those at fair value through profit or loss) for which there is objective evidence of impairment (“stage 3”), write-offs on irrecoverable loans and amounts recovered on loans written-off. It also includes expenses relating to fraud and to disputes inherent to the financing activity. 1.f.7Financial instruments at fair value through profit or loss Trading portfolio and other financial assets measured at fair value through profit or loss The trading portfolio includes instruments held for trading (trading transactions), including derivatives. Other financial assets measured at fair value through profit or loss include debt instruments that do not meet the “collect” or “collect and sale” business model criterion or that do not meet the cash flow criterion, as well as equity instruments for which the fair value through shareholders’ equity option has not been retained. Finally financial assets may be designated as at fair value through profit or loss if this enables the entity to eliminate or significantly reduce a mismatch in the measurement and accounting treatment of assets and liabilities that would otherwise arise if they were to be classified in separate categories. All those financial instruments are measured at fair value at initial recognition, with transaction costs directly posted in profit or loss. At the reporting date, they are measured at fair value, with changes presented in “Net gain/loss on financial instruments at fair value through profit or loss”. Income, dividends, and realised gains and losses on disposal related to held-for-trading transactions are accounted for in the same profit or loss account. Financial liabilities designated as at fair value through profit or loss Financial liabilities are recognised under option in this category in the two following situations: for hybrid financial instruments containing one or more embedded derivatives which otherwise would have been separated and accounted for separately. An embedded derivative is such that its economic characteristics and risks are not closely related to those of the host contract; when using the option enables the entity to eliminate or significantly reduce a mismatch in the measurement and accounting treatment of assets and liabilities that would otherwise arise if they were to be classified in separate categories. Changes in fair value due to the own credit risk are recognised under a specific heading of shareholders’ equity. 1.f.8Financial liabilities and equity instruments A financial instrument issued or its various components are classified as a financial liability or equity instrument, in accordance with the economic substance of the legal contract. Financial instruments issued by the Group are qualified as debt instruments if the entity in the Group issuing the instruments has a contractual obligation to deliver cash or another financial asset to the holder of the instrument. The same applies if the Group is required to exchange financial assets or financial liabilities with another entity under conditions that are potentially unfavourable to the Group, or to deliver a variable number of the Group’s own equity instruments. Equity instruments result from contracts evidencing a residual interest in an entity’s assets after deducting all of its liabilities. Debt securities and subordinated debt Debt securities and subordinated debt are measured at amortised cost unless they are recognised at fair value through profit or loss. Debt securities are initially recognised at the issue value including transaction costs and are subsequently measured at amortised cost using the effective interest method. Issued bonds redeemable or convertible into own equity may contain a debt component and an equity component, determined upon initial recognition of the transaction. In this case, they will be qualified as compound financial instruments. In this respect, the Group has elected to record contingent convertible bonds issued, without maturity, when convertible into a variable number of own shares on the occurrence of a predetermined trigger event (e.g. a decrease in the solvency ratio below a threshold), as compound instruments, to the extent that the coupons on these bonds are paid discretionarily. Equity instruments The term “own equity instruments” refers to shares issued by the parent company (BNP Paribas SA) and by its fully consolidated subsidiaries. External costs that are directly attributable to an issue of new shares are deducted from equity net of all related taxes. Own equity instruments held by the Group, also known as treasury shares, are deducted from consolidated shareholders’ equity irrespective of the purpose for which they are held. Gains and losses arising on such instruments are eliminated from the consolidated profit and loss account. When the Group acquires equity instruments issued by subsidiaries under the exclusive control of BNP Paribas, the difference between the acquisition price and the share of net assets acquired is recorded in retained earnings attributable to BNP Paribas shareholders. Similarly, the liability corresponding to put options granted to minority shareholders in such subsidiaries, and changes in the value of that liability, are offset against minority interests, with any surplus offset against retained earnings attributable to BNP Paribas shareholders. Until these options have been exercised, the portion of net income attributable to minority interests is allocated to minority interests in the profit and loss account. A decrease in the Group’s interest in a fully consolidated subsidiary is recognised in the Group’s accounts as a change in shareholders’ equity. Financial instruments issued by the Group and classified as equity instruments (notably the undated super subordinated notes) are presented in the balance sheet in “Capital and retained earnings”. Distributions from a financial instrument classified as an equity instrument are recognised directly as a deduction from equity. Similarly, the transaction costs of an instrument classified as equity are recognised as a deduction from shareholders’ equity. Own equity instrument derivatives are treated as follows, depending on the method of settlement: as equity instruments if they are settled by physical delivery of a fixed number of own equity instruments for a fixed amount of cash or other financial asset. Such instruments are not revalued; as derivatives if they are settled in cash or by choice by physical delivery of the shares or in cash. Changes in value of such instruments are taken to the profit and loss account. If the contract includes an obligation, whether contingent or not, for the bank to repurchase its own shares, the Bank recognises the debt at its present value with an offsetting entry in shareholders’ equity. 1.f.9Hedge accounting The Group retained the option provided by the standard to maintain the hedge accounting requirements of IAS 39 until the future standard on macro-hedging is entered into force. Furthermore, IFRS 9 does not explicitly address the fair value hedge of the interest rate risk on a portfolio of financial assets or liabilities. The provisions in IAS 39 for these portfolio hedges, as adopted by the European Union, continue to apply. Derivatives contracted as part of a hedging relationship are designated according to the purpose of the hedge. Fair value hedges are particularly used to hedge interest rate risk on fixed-rate assets and liabilities, both for identified financial instruments (securities, debt issues, loans, borrowings) and for portfolios of financial instruments (in particular, demand deposits and fixed-rate loans). Cash flow hedges are particularly used to hedge interest rate risk on floating-rate assets and liabilities, including rollovers, and foreign exchange risks on highly probable forecast foreign currency revenues. At the inception of the hedge, the Group prepares formal documentation which details the hedging relationship, identifying the instrument, or portion of the instrument, or portion of risk that is being hedged, the hedging strategy and the type of risk hedged, the hedging instrument, and the methods used to assess the effectiveness of the hedging relationship. On inception and at least quarterly, the Group assesses, in consistency with the original documentation, the actual (retrospective) and expected (prospective) effectiveness of the hedging relationship. Retrospective effectiveness tests are designed to assess whether the ratio of actual changes in the fair value or cash flows of the hedging instrument to those in the hedged item is within a range of 80% to 125%. Prospective effectiveness tests are designed to ensure that expected changes in the fair value or cash flows of the derivative over the residual life of the hedge adequately offset those of the hedged item. For highly probable forecast transactions, effectiveness is assessed largely on the basis of historical data for similar transactions. Under IAS 39 as adopted by the European Union, which excludes certain provisions on portfolio hedging, interest rate risk hedging relationships based on portfolios of assets or liabilities qualify for fair value hedge accounting as follows: the risk designated as being hedged is the interest rate risk associated with the interbank rate component of interest rates on commercial banking transactions (loans to customers, savings accounts and demand deposits); the instruments designated as being hedged correspond, for each maturity band, to a portion of the interest rate gap associated with the hedged underlying; the hedging instruments used consist exclusively of “plain vanilla” swaps; prospective hedge effectiveness is established by the fact that all derivatives must, on inception, have the effect of reducing interest rate risk in the portfolio of hedged underlying. Retrospectively, a hedge will be disqualified from hedge accounting once a shortfall arises in the underlying specifically associated with that hedge for each maturity band (due to prepayment of loans or withdrawals of deposits). The accounting treatment of derivatives and hedged items depends on the hedging strategy. In a fair value hedging relationship, the derivative instrument is remeasured at fair value in the balance sheet, with changes in fair value recognised in profit or loss in “Net gain/loss on financial instruments at fair value through profit or loss”, symmetrically with the remeasurement of the hedged item to reflect the hedged risk. In the balance sheet, the fair value remeasurement of the hedged component is recognised in accordance with the classification of the hedged item in the case of a hedge of identified assets and liabilities, or under “Remeasurement adjustment on interest rate risk hedged portfolios” in the case of a portfolio hedging relationship. If a hedging relationship ceases or no longer fulfils the effectiveness criteria, the hedging instrument is transferred to the trading book and accounted for using the treatment applied to this category. In the case of identified fixed-income instruments, the remeasurement adjustment recognised in the balance sheet is amortised at the effective interest rate over the remaining life of the instrument. In the case of interest rate risk hedged fixed-income portfolios, the adjustment is amortised on a straight-line basis over the remainder of the original term of the hedge. If the hedged item no longer appears in the balance sheet, in particular due to prepayments, the adjustment is taken to the profit and loss account immediately. In a cash flow hedging relationship, the derivative is measured at fair value in the balance sheet, with changes in fair value taken to shareholders’ equity on a separate line, “Changes in fair value recognised directly in equity”. The amounts taken to shareholders’ equity over the life of the hedge are transferred to the profit and loss account under “Net interest income” as and when the cash flows from the hedged item impact profit or loss. The hedged items continue to be accounted for using the treatment specific to the category to which they belong. If the hedging relationship ceases or no longer fulfils the effectiveness criteria, the cumulative amounts recognised in shareholders’ equity as a result of the remeasurement of the hedging instrument remain in equity until the hedged transaction itself impacts profit or loss, or until it becomes clear that the transaction will not occur, at which point they are transferred to the profit and loss account. If the hedged item ceases to exist, the cumulative amounts recognised in shareholders’ equity are immediately taken to the profit and loss account. Whatever the hedging strategy used, any ineffective portion of the hedge is recognised in the profit and loss account under “Net gain/loss on financial instruments at fair value through profit or loss”. Hedges of net foreign currency investments in subsidiaries and branches are accounted for in the same way as cash flow hedges. Hedging instruments may be foreign exchange derivatives or any other non-derivative financial instrument. 1.f.10Determination of fair value Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the principal market or most advantageous market, at the measurement date. The Group determines the fair value of financial instruments either by using prices obtained directly from external data or by using valuation techniques. These valuation techniques are primarily market and income approaches encompassing generally accepted models (e.g. discounted cash flows, Black-Scholes model, and interpolation techniques). They maximise the use of observable inputs and minimise the use of unobservable inputs. They are calibrated to reflect current market conditions and valuation adjustments are applied as appropriate, when some factors such as model, liquidity and credit risks are not captured by the models or their underlying inputs but are nevertheless considered by market participants when setting the exit price. The unit of measurement is the individual financial asset or financial liability but a portfolio-based measurement can be elected, subject to certain conditions. Accordingly, the Group retains this portfolio-based measurement exception to determine the fair value when some group of financial assets and financial liabilities and other contracts within the scope of the standard relating to financial instruments with substantially similar and offsetting market risks or credit risks is managed on the basis of a net exposure, in accordance with the documented risk management strategy. Assets and liabilities measured or disclosed at fair value are categorised into the three following levels of the fair value hierarchy: Level 1: fair values are determined using directly quoted prices in active markets for identical assets and liabilities. Characteristics of an active market include the existence of a sufficient frequency and volume of activity and of readily available prices; Level 2: fair values are determined based on valuation techniques for which significant inputs are observable market data, either directly or indirectly. These techniques are regularly calibrated and the inputs are corroborated with information from active markets; Level 3: fair values are determined using valuation techniques for which significant inputs are unobservable or cannot be corroborated by market-based observations, due for instance to illiquidity of the instrument and significant model risk. An unobservable input is a parameter for which there are no market data available and that is therefore derived from proprietary assumptions about what other market participants would consider when assessing fair value. The assessment of whether a product is illiquid or subject to significant model risks is a matter of judgment. The level in the fair value hierarchy within which the asset or liability is categorised in its entirety is based upon the lowest level input that is significant to the entire fair value measurement. For financial instruments disclosed in Level 3 of the fair value hierarchy, and marginally some instruments disclosed in Level 2, a difference between the transaction price and the fair value may arise at initial recognition. This “Day One Profit” is deferred and released to the profit and loss account over the period during which the valuation parameters are expected to remain non-observable. When parameters that were originally non-observable become observable, or when the valuation can be substantiated in comparison with recent similar transactions in an active market, the unrecognised portion of the day one profit is released to the profit and loss account. 1.f.11Derecognition of financial assets and financial liabilities Derecognition of financial assets The Group derecognises all or part of a financial asset when the contractual rights to the cash flows of the asset expire, or when the Group transfers the asset – either on the basis of a transfer of the contractual rights to its cash flows, or by retaining the contractual rights to receive the cash flows of the asset while assuming an obligation to pay the cash flows of the asset under an eligible pass-through arrangement – as well as substantially all the risks and rewards of the asset. Where the Group has transferred the cash flows of a financial asset but has neither transferred nor retained substantially all the risks and rewards of ownership of the financial asset and has not in practice retained control of the financial asset, the Group derecognises the financial asset and then records separately, if necessary, an asset or liability representing the rights and obligations created or held as part of the transfer of the asset. If the Group has retained control of the financial asset, it maintains it on its balance sheet to the extent of its continuing involvement in that asset. Upon the derecognition of a financial asset in its entirety, a gain or loss on disposal is recognised in the profit and loss account for an amount equal to the difference between the carrying amount of the asset and the value of the consideration received, adjusted where appropriate for any unrealised gain or loss previously recognised directly in equity. If all these conditions are not met, the Group retains the asset in its balance sheet and recognises a liability for the obligations arising on the transfer of the asset. Derecognition of financial liabilities The Group derecognises all or part of a financial liability when the liability is extinguished, i.e. when the obligation specified in the contract is extinguished, cancelled or expired. A financial liability may also be derecognised in the event of a substantial change in its contractual terms or if exchanged with the lender for an instrument with substantially different contractual terms. Repurchase agreements and securities lending/borrowing Securities temporarily sold under repurchase agreements continue to be recognised in the Group’s balance sheet in the category of securities to which they belong. The corresponding liability is recognised at amortised cost under the appropriate “Financial liabilities at amortised cost” category on the balance sheet, except in the case of repurchase agreements contracted for trading purposes, for which the corresponding liability is recognised in “Financial liabilities at fair value through profit or loss”. Securities temporarily acquired under reverse repurchase agreements are not recognised in the Group’s balance sheet. The corresponding receivable is recognised at amortised cost under the appropriate “Financial assets at amortised cost” category in the balance sheet, except in the case of reverse repurchase agreements contracted for trading purposes, for which the corresponding receivable is recognised in “Financial assets at fair value through profit or loss”. Securities lending transactions do not result in derecognition of the lent securities, and securities borrowing transactions do not result in recognition of the borrowed securities on the balance sheet. In cases where the borrowed securities are subsequently sold by the Group, the obligation to deliver the borrowed securities on maturity is recognised on the balance sheet under “Financial liabilities at fair value through profit or loss”. 1.f.12Offsetting financial assets and financial liabilities A financial asset and a financial liability are offset and the net amount presented in the balance sheet if, and only if, the Group has a legally enforceable right to set off the recognised amounts, and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Repurchase agreements and derivatives that meet the two criteria set out in the accounting standard are offset in the balance sheet. 1.gInsurance activities 1.g.1Investments related to insurance activities IFRS 9 is applied in the same way as to other Group entities (see note 1.f). Investments of insurance activities include investment property which are measured at fair value as underlying assets of direct participating contracts. 1.g.2Insurance contracts The Group applies IFRS 17 to insurance contracts issued, reinsurance contracts issued and held, and discretionary investment contracts issued (if the entity also issues insurance contracts). The main insurance contracts issued by the Group correspond to: contracts covering risks related to persons or property: creditor protection insurance contracts, protection contracts, contracts covering other non-life risks (automobile, multi-risk housing, etc.). These contracts are measured according to the general measurement model (Building Block Approach - BBA) or the premium allocation approach (PAA) for contracts eligible for this method; life or savings contracts: euro-denominated and multiple saving contracts (invested in a general fund and in unit-linked accounts) with or without insurance risk including a discretionary participating component and unit-linked contracts with a floor guarantee in the event of death. These contracts are measured using the variable fee approach (VFA). A reinsurance contract (or treaty) is an insurance contract by which an insurer (ceding company or cedent) transfers part of its risks to a reinsurer. The Group acts as reinsurer by accepting risks related to persons or property from external insurers and as ceding company by transferring such risks to external reinsurers. Contracts may be proportional or non-proportional depending on the nature of the risks and the appetite for the risk accepted or retained. They are measured either according to the general model or according to the premium allocation approach since the standard prohibits the use of the variable fee approach for reinsurance contracts. Investment contracts without discretionary participating features and without insurance risk backed by unit-linked underlying assets are measured at fair value through profit or loss in accordance with IFRS 9. The methods for measuring and recognising these various contracts according to the measurement model adopted are set out below. These contracts are described in note 5.d Assets and liabilities related to insurance contracts. Prior separation of components covered by other standards and not closely related When insurance or investment contracts with discretionary participation include components, which would fall within the scope of another standard if they were separate contracts, an analysis must be carried out to determine whether these components should be accounted for separately. Thus: an embedded derivative is separated from the host insurance contract and accounted for under IFRS 9 when its economic characteristics and risks are not closely related to those of the host contract; an investment component corresponds to the amount that the insurer is required to repay to the insured in all cases whether the insured event occurs or not. It is separated from the host insurance contract and accounted for under IFRS 9 when it is distinct from the host insurance contract and when equivalent contracts could be sold separately in the same market or legal area. It is not separated if it is closely linked to the host contract. Changes in a non-distinct investment component (and in particular related payments) are not recognised in the profit and loss account; a promise to transfer to the policyholder distinct goods or services other than the services of the insurance contract is separated from the host insurance contract and accounted for under IFRS 15. Insurance contracts An insurance contract is a contract under which a party, the issuer, assumes a significant insurance risk for another party, the policyholder, by agreeing to indemnify the policyholder if a specified uncertain future event, the insured event, is detrimental to the policyholder. An insurance risk is significant if, and only if, an insured event can cause the insurer to pay significant additional amounts in any scenario, excluding scenarios that are devoid of commercial substance. A contract transfers a significant insurance risk only if there is a scenario with a commercial substance in which there is a possibility that the issuer will incur a loss based on the present value. The insurance risks covered by Group entities are: either risks related to physical person: mortality (guarantees in the event of death), longevity (guarantees in the event of survival, e.g. life annuities), morbidity (guarantees in the event of disability), permanent disability, health (medical coverage), unemployment of physical persons; or risks of damage to property and civil liability. Life or savings contracts issued by Group entities are qualified as insurance contracts if they include a risk in the event of survival (pension contracts with compulsory annuities) or a risk in the event of death (unit-linked contracts with a floor guarantee in the event of death and savings contracts with a guarantee of an additional amount payable in the event of death). In the absence of such risks, these contracts are investment contracts with or without discretionary participating features. Investment contracts with discretionary participating features Investment contracts do not expose the insurer to significant insurance risk. They are within the scope of IFRS 17 if they are issued by entities that also issue insurance contracts. Discretionary participation is defined as the contractual right to receive, in addition to an amount that is not at the issuer’s discretion, additional amounts that are likely to represent a significant portion of the total benefits provided under the contract. Benefits, for which the timing or amount is contractually left to the issuer’s discretion and that are contractually based on the returns arising from a defined set of contracts or type of contract or on the realised and/or unrealised investment returns from a defined set of assets held by the issuer, or the result of the entity or fund issuing the contract. Savings contracts invested in a euro-denominated fund and multiple saving contracts invested in unit-linked assets and in a euro-denominated fund are considered by the Group as investment contracts with discretionary participating features, measured using the variable fee approach. Accounting and measurement Aggregation of contracts Insurance contracts are accounted and measured by groups of contracts within portfolios of contracts covering similar risks and managed together. Groups of contracts are determined according to their expected profitability at inception: onerous contracts, profitable contracts with a low risk of becoming onerous, and others. A group of contracts may contain only contracts issued no more than one year apart (corresponding to an annual “cohort”), except where the optional exemption provided for in the European regulation applies, which is the case for life-savings contracts, as described below. For creditor protection insurance, personal protection insurance and other non-life risks, the Group uses the following discriminatory criteria when constructing portfolios of homogeneous contracts: legal entity, nature of the risks and partner, distributor. The reinsurance contracts accepted shall follow the same principles. For life and savings contracts, the Group uses the following criteria for portfolios of homogeneous contracts: legal entity, product and underlying assets. Savings and retirement contracts are classified in separate portfolios (including in the period prior to the transition) due to the existence of a risk of longevity in retirement contracts. For reinsurance contracts held, the Group uses the following criteria: legal entity, underlying item and counterparty. A portfolio can sometimes correspond to a single reinsurance treaty. Recognition and derecognition A group of insurance contracts (or reinsurance contracts issued) is recognised from the earliest of the following dates: the beginning of the period of coverage of the group of contracts, the date on which the first payment of a policyholder in the group becomes due (or, in the absence of such a date, when the first payment is received) and, in the case of a group of onerous contracts, the date on which the group becomes onerous. A group of reinsurance contracts held is recognised from the beginning of the period of coverage of the group of reinsurance contracts held or, if the reinsurance was contracted in anticipation of the coverage of an underlying group of onerous insurance contracts, on the first recognition of that onerous group. On initial recognition of portfolios of insurance contracts acquired as part of a business combination or a separate transfer, groups of contracts acquired are treated as if the contracts had been issued at the date of the transaction. The consideration received or paid in exchange for the contracts is treated as an approximation of the premiums received for the purpose of calculating the contractual service margin at initial recognition from this amount. In the case of a business combination within the scope of IFRS 3, the consideration received or paid is the fair value of the contracts at that date. For business combinations that have occurred since the first application of IFRS 17, this fair value has been determined by projecting the liabilities valuation under the Solvency 2 prudential approach which constitutes a market benchmark. For onerous contracts, the excess of the fulfilment cash flows over the consideration paid or received is recognised in the goodwill (or the profit resulting from an acquisition on advantageous terms) if it is a business combination and in a separate transfer, in the profit and loss account. For profitable contracts, the difference is recorded as a contractual service margin. In addition, an asset for cash flows related to acquisition costs must be recognised, for its fair value, for the acquisition costs related to the renewal of existing insurance contracts or for the acquisition costs already paid by the acquired company for future contracts. An insurance contract shall be derecognised when the obligation it covers is extinguished, by payment or maturity, or if the terms of the contract are amended in such a way that the accounting treatment of the contract would have been substantially different if those amendments had originally existed. The derecognition of a contract entails the adjustment of the fulfilment cash flows, the contractual services margin and the coverage units of the group in which it was included. General measurement model (Building Block Approach – BBA) Characteristics The general model for the measurement of insurance contracts is the best estimate of the future cash flows to be paid or received necessary to meet contractual obligations. This estimate should reflect the different possible scenarios and the effect of the options and guarantees included in the contracts within the limit or “contract boundary”. The determination of this contract boundary requires an analysis of the rights and obligations arising from the contract and, in particular, of the insurer’s ability to change its price to reflect the risks. This leads, for example, to the exclusion of tacit renewals if the tariff can be amended or to the inclusion of such renewals if not. Cash flows are discounted to reflect the time value of money. They correspond only to cash flows attributable to insurance contracts either directly or through allocation methods: premiums, acquisition and contract management costs, claims and benefits, indirect costs, taxes and depreciation of tangible and intangible assets. The cash flows estimate is supplemented by an explicit risk adjustment to cover the uncertainty of cash flows for non-financial risk. These two elements constitute the fulfilment cash flows of the contracts. A contractual service margin is added representing the expected gain or loss on future services related to a group of contracts. If the contractual service margin is positive, it is shown on the balance sheet within the insurance contract’s measurement and amortised as the services are rendered; if negative, it is recognised immediately in the income statement. The original loss (or “loss component”) is monitored extra-accounting to allow for the subsequent recognition of the insurance service revenue. Acquisition costs are deducted from the contractual service margin of the group of contracts to which they relate and amortised over the coverage period of contracts. At each reporting date, the carrying amount of a group of insurance contracts is the sum of the liabilities for the remaining coverage which include the fulfilment cash flows related to future services (best estimate and risk adjustment) and the contractual service margin remaining at that date, and of the liabilities for incurred claims which include the best estimate of the cash flows and the risk adjustment, excluding any contractual service margin. The assumptions used to estimate future cash flows and the non-financial risks adjustment are updated, as well as the discount rate, to reflect the situation at the reporting date. The contractual service margin is adjusted for changes in the estimates of non-financial assumptions related to future services, capitalised at the inception rate, and then amortised in the income statement for services rendered over the period in the insurance service revenue. In the case of contracts which become onerous, after consumption of the contractual service margin, the loss is recognised in the reporting period. In the case of onerous contracts that become profitable again as a result of favourable changes in assumptions, the contractual service margin is only reconstitued after offsetting the loss component. The release of expected fulfillment flows (cash flow estimates and risk adjustments) for the period, except for the amount allocated to the loss component, is recorded in insurance service revenue. The change in estimates related to past service (cash flow estimates and risk adjustments) is recognised in “Insurance service expenses”. The Group includes the change in the adjustment for non-financial risk related to past and current services in its entirety in the “Insurance service result”. The Group records in equity the effect of the change in the discount rate on the cash flows. The expense of unwinding the discount is recorded in “Insurance financial income or expenses” based on the initial rate (the inception rate for the liability for remaining coverage, and the rate at claims occurrence date for the liability for incurred claims). The difference between the value of liabilities discounted at the rate fixed at initial date and the value of those same liabilities estimated using current discount rate is recognised in equity. The effect on liabilities of changes in financial variables, in particular the indexation of benefits under the contract, is also recognised in equity. The discount rate is based on the risk-free rate adjusted for the illiquidity of the liabilities. For protection, the liquidity premium is currently valued at zero due to the short settlement period for claims on the main risks covered and non-transferability to policyholders of the illiquidity of liabilities. The risk adjustment is determined using the quantile method. The coverage unit used to amortise the contractual service margin is derived from the risk premium earned during the period. Contracts concerned Contracts covering personal or property risks (creditor protection insurance, protection and other non-life risks) are measured according to the general model when the contract boundary, expected changes in cash flows and the time value effect over the coverage period do not make them eligible under the simplified approach, or by operational choice (a single measurement model for short and long contracts). Measurement model for contracts with direct participation features (Variable Fee Approach – VFA) Characteristics Direct participating contracts are insurance or investment contracts for which: the contractual terms specify that the policyholder is entitled to a share of a clearly defined portfolio of underlying assets; the insurer expects to pay the policyholder a sum corresponding to a substantial portion of the return on the fair value of the underlying assets; the insurer expects that any change in the amounts to be paid to the policyholder is, in a substantial proportion, attributable to the change in the fair value of the underlying assets. Compliance with these conditions is monitored on the underwriting date and is not reviewed later. For these contracts, for which the insurer has to pay the policyholder an amount corresponding to the fair value of clearly identified underlying assets, less a variable compensation, a specific model (called the “Variable Fee Approach”) has been developed by adapting the general model. At each reporting date, liabilities related to these contracts are adjusted for the return earned and changes in the fair value of the underlying assets: the policyholders’ share is recorded in the contract fulfilment cash flows against insurance financial income or expense and the insurer’s share corresponding to the variable fee is included in the contractual service margin. The contractual service margin is also adjusted for the effect of changes in cash flows that do not vary according to the returns on the underlying assets and that relate to future services: estimation of cash flows, risk adjustment, changes in the time value effect of money and changes in the financial risks that do not result from the underlying assets (for example, the effect of financial guarantees). Changes in the fulfillment cash flows that do not change in connection with the yields of underlying assets and that relate to past service events are recognised in the profit and loss account. This is the case for management fees and attributable costs. Acquisition cash flows are deducted from the contractual service margin of the group of contracts to which they relate and amortised over the coverage period of the contracts, as in the general model. Due to the mechanism for allocating the change in the value of the underlying assets between the policyholders and the insurer, the result of these contracts is in principle mainly represented by the release of the fulfilment cash flows and the amortisation of the contractual service margin. When the underlying assets fully support the liabilities and are measured at fair value through profit or loss, the financial result under these contracts should be nil. The Group has chosen the option of reclassifying in shareholders’ equity the change in the liabilities related to the underlying assets that are not measured at fair value through profit or loss. Life and savings contracts meeting the above definition of direct participating contracts are valued using the variable fee approach. When these contracts include a surrender value, it meets the definition of a non-distinct investment component and changes in that investment component (including related payments) are therefore not recognised in the income statement. The Group has chosen to apply the option introduced by the European regulation not to divide the portfolios of participating contracts based on intergenerational mutualisation by annual cohort. As a result of this choice, the assessment of the onerousness is made on the basis of the portfolio and not on the basis of the annual cohorts. The contract boundary includes future payments as long as the applicable pricing is not modifiable (e.g. acquisition or management loadings), as well as the annuity phase in service when contracts provide for a mandatory annuity or optional (in this case, the option is probabilistic). The discount rate is based on the risk-free rate, extrapolated over the duration exceeding the period for which observable data are available and adjusted by a liquidity premium on the basis of the underlying assets to reflect the illiquidity of the liabilities. The risk adjustment is determined by combining the cost of capital method without considering the risk of mass lapses, including future payments and considering only attributable costs, and the quantile method for the free payment component. The coverage unit used to amortise the contractual service margin is the change in savings due to policyholders (determined at present value), adjusted to take into account the impact of the real return on financial or property assets compared with the actuarial neutral risk projection. Contracts concerned Insurance contracts and investment contracts with discretionary participating features backed by pools of underlying assets commonly referred to as “general funds” or “policyholders’ funds” that correspond to pools of assets isolated analytically, contractually or in regulation, as well as unit-linked contracts with a floor guarantee in case of death and multiple saving contracts backed by assets such as a “general fund”, are measured using the variable fee approach. The option provided for in the European regulation related to the annual cohort exemption is applied to insurance contracts and investment contracts with discretionary participation features where the policyholders’ profit-sharing is mutualised between the different generations of policyholders: these are euro-denominated or multiple saving contracts including a euro-denominated fund, in France, Italy and Luxembourg. The liabilities for incurred claims are measured using the variable fee approach if they are sensitive to changes in the value of the underlying assets and the general model if they are not. Simplified measurement model (Premium Allocation Approach – PAA) Characteristics Short-term contracts (less than one year) may be measured using a simplified approach known as the premium allocation approach, also applicable to longer-term contracts if it leads to results similar to those of the general model in terms of liability for the remaining coverage. Contracts with a long contract boundary, where significant changes in cash flows are expected over the coverage period, or where the time value effect over the coverage period is material, are not eligible for the simplified approach. For profitable contracts, the liability for the remaining coverage corresponds to the deferral of premiums collected according to a profile representing the remaining coverage at the reporting date. For onerous contracts, deferred premiums are supplemented by an estimate of the expected loss over the coverage period. Liabilities for incurred claims are valued according to the general model. In this case, the method used to determine the risk adjustment is the same as for the general model. The Group has chosen the option of deferring acquisition costs over the coverage duration and therefore presenting them as a deduction of the deferred premiums, except where the coverage of the contracts coincides with the calendar year or the deferred acquisition costs are not material. Liabilities for incurred claims are discounted if the expected settlement of claims takes place after one year from the date of occurrence. The discount expense is recognised in insurance financial income or expenses as in the general model. In this case, the option to classify the effect of changes in the discount rate into equity is also applicable. The Group has retained this option for the liabilities for incurred claims. At each reporting date, the adjustment of liabilities for remaining coverage and for incurred claims is recognised in profit or loss. Contracts concerned Creditor protection insurance, personal protection insurance and other non-life insurance contracts, are measured using the simplified approach if the conditions are met (unless the general model is chosen for operational reasons). Treatment of the reinsurance Reinsurance contracts issued (reinsurance accepted) Reinsurance accepted shall be treated as insurance contracts issued, either in the general model or in the simplified model, depending on the duration of the reinsurance contracts. The Group accepts mainly risks corresponding to those it covers as a direct insurer under proportional or non-proportional treaties. Reinsurance contracts held (reinsurance ceded) The reinsurance ceded is also treated according to the general or simplified model, but the equivalent of the contractual service margin represents the expected gain or loss on the reinsurance and may be positive or negative. If a reinsurance contract offsets the losses of an underlying group of onerous contracts, the reinsurance gain is recognised immediately in profit or loss. This “loss recovery component” is used to record amounts that are subsequently presented in net income. In addition, contract execution flows include the reinsurer’s risk of non-performance. The Group cedes on reinsurance the risks it wishes to hedge (for example, non-proportional treaties covering peak risk, the risk of accumulation or exceeding the desired retention) or under the risk-sharing framework of proportional treaties for technical or commercial reasons. The reinsurance contracts held are measured by the Group using the simplified approach or the general model. Presentation in the balance sheet and in the profit and loss The Group has chosen to present the investments of insurance activities and their results separately from the financial assets and liabilities of banking activities. Financial income or expenses from issued insurance contracts are presented separately between the profit and loss account and shareholders’ equity for portfolios for which this breakdown has been deemed relevant, as allowed by the standard. For the Protection contracts liabilities measured under the general model and for the liabilities for incurred claims arising from contracts measured under the simplified model, this choice for portfolios classification was made by taking into account both the effects in the profit and loss account of the undiscounting of the liabilities and the accounting treatment of the assets backing them. For contracts measured using the variable fee approach, this choice was made to offset any accounting mismatch that may exist in the profit and loss account between the effect of changes in fair value from insurance or investment liabilities and that from the underlying assets when these are not recognised at fair value through profit or loss. Insurance contracts may be distributed and managed by non-insurance entities of the Group that are remunerated as such by commissions paid by insurance entities. The measurement model for insurance contracts requires projecting in the contract fulfilment cash flows the acquisition and management costs that will be paid in the future and presenting in the profit and loss account, the release of the estimated costs for the period on the one hand, and on the other, the actual costs. For commissions between consolidated companies in the Group, the Group restates the internal margin on the balance sheet and in the profit and loss account (in the breakdown of insurance liabilities and the related results between cash flows and contractual service margin) by presenting as insurance service expenses the portion of the general expenses (excluding internal margins) of the banking entities that can be attributed to the insurance activity. The internal distributors’ margins are determined based on standardised management data for each of the related networks. Effect of accounting estimates in interim financial statements The Group has elected under IFRS 17 to record in its annual financial statements the effects of changes in accounting estimates relating to insurance contracts issued or held, without taking into account estimates previously made in its interim financial statements. 1.hProperty, plant, equipment and intangible assets Property, plant and equipment and intangible assets shown in the consolidated balance sheet are composed of assets used in operations and investment property. Rights-of-use related to leased assets (see note 1.i.2) are presented by the lessee within fixed assets in the same category as similar assets held. Assets used in operations are those used in the provision of services or for administrative purposes, and include non-property assets leased by the Group as lessor under operating leases. Investment property comprises property assets held to generate rental income and capital gains. Investment property is recognised at cost, except for those held as underlying assets under participating direct contracts (as amended by IAS 40), which are measured at fair value through profit or loss and presented in the balance sheet under “Investments related to insurance activities” (see note 1.g.1). Property, plant and equipment and intangible assets are initially recognised at purchase price plus directly attributable costs, together with borrowing costs where a long period of construction or adaptation is required before the asset can be brought into service. By way of exception, property occupied by the holder entity that is an underlying component of direct participating contracts is measured at fair value (by amendment to IAS 16). Software developed internally by the BNP Paribas Group that fulfils the criteria for capitalisation is capitalised at direct development cost, which includes external costs and the labour costs of employees directly attributable to the project. Subsequent to initial recognition, property, plant and equipment and intangible assets are measured at cost less accumulated depreciation or amortisation and any impairment losses. The depreciable amount of property, plant and equipment and intangible assets is calculated after deducting the residual value of the asset. Only assets leased by the Group as the lessor under operating leases are presumed to have a residual value, as the useful life of property, plant and equipment and intangible assets used in operations is generally the same as their economic life. Property, plant and equipment and intangible assets are depreciated or amortised using the straight-line method over the useful life of the asset. Depreciation and amortisation expense is recognised in the profit and loss account under “Depreciation, amortisation and impairment of property, plant and equipment and intangible assets”. Where an asset consists of a number of components which may require replacement at regular intervals, or which have different uses or generate economic benefits at different rates, each component is recognised separately and depreciated using a method appropriate to that component. The BNP Paribas Group has adopted the component-based approach for property used in operations and for investment property. The depreciation periods used for office property are as follows: 80 years or 60 years for the shell (for prime and other property respectively); 30 years for facades; 20 years for general and technical installations; and 10 years for fixtures and fittings. Software is amortised, depending on its type, over periods of no more than 8 years in the case of infrastructure developments and 3 years or 5 years in the case of software developed primarily for the purpose of providing services to customers. Software maintenance costs are expensed as incurred. However, expenditure that is regarded as upgrading the software or extending its useful life is included in the initial acquisition or production cost. Depreciable property, plant and equipment and intangible assets are tested for impairment if there is an indication of potential impairment at the balance sheet date. Non-depreciable assets are tested for impairment at least annually, using the same method as for goodwill allocated to cash-generating units. If there is an indication of impairment, the new recoverable amount of the asset is compared with the carrying amount. If the asset is found to be impaired, an impairment loss is recognised in the profit and loss account. This loss is reversed in the event of a change in the estimated recoverable amount or if there is no longer an indication of impairment. Impairment losses are taken to the profit and loss account in “Depreciation, amortisation and impairment of property, plant and equipment and intangible assets”. Gains and losses on disposals of property, plant and equipment and intangible assets used in operations are recognised in the profit and loss account in “Net gain on non-current assets”. Gains and losses on disposals of investment property are recognised in the profit and loss account in “Income from other activities” or “Expense on other activities”. 1.iLeases Group companies may either be the lessee or the lessor in a lease agreement. 1.i.1Group company as lessor Leases contracted by the Group as lessor are categorised as either finance leases or operating leases. Finance leases In a finance lease, the lessor transfers substantially all the risks and rewards of ownership of an asset to the lessee. It is treated as a loan made to the lessee to finance the purchase of the asset. The present value of the lease payments, plus any residual value, is recognised as a receivable. The net income earned from the lease by the lessor is equal to the amount of interest on the loan and is taken to the profit and loss account under “Interest income”. The lease payments are spread over the lease term and are allocated to reduction of the principal and to interest such that the net income reflects a constant rate of return on the net investment outstanding in the lease. The rate of interest used is the rate implicit in the lease. Impairments of lease receivables are determined using the same principles as applied to financial assets measured at amortised cost. Operating leases An operating lease is a contract under which most of the risks and rewards of ownership of the leased asset are not transferred to the lessee. The leased asset is initially recognised by the lessor as a tangible asset for its acquisition price less residual value and subsequently depreciated on a straight-line basis over its useful life. The asset depreciation charge and lease payments are recognised in profit and loss over the lease term respectively in "Income from other activities” and "Expense on other activities” line items. Vehicles leased by the Group and classified under operating leases are assets with an average lease term of between one and five years. The cost of acquiring these assets includes their purchase price, as well as any directly attributable costs necessary to make the vehicle available to the lessee customers. Residual value is a statistical model estimate of the resale value of the asset and is reestimated at each reporting date, taking into account, in particular, historical data on the sale of vehicles in the second-hand market and the specific context of each geographical area. In the event of a change in the amount of the residual value of the asset relative to its estimated value, a forward-looking adjustment to the depreciation plan is made vehicle by vehicle. 1.i.2Group company as lessee Lease contracts concluded by the Group, with the exception of contracts whose term is shorter than or equal to 12 months and low-value contracts, are recognised in the balance-sheet in the form of a right-of-use on the leased asset presented under fixed assets, along with the recognition of a financial liability for the rent and other payments to be made over the leasing period. The right of use assets is amortised on a straight-line basis and the financial liabilities are amortised on an actuarial basis over the lease period. Dismantling costs corresponding to specific and significant fittings and fixtures are included in the initial right-of-use estimation, in counterparty of a provision liability. The key hypotheses used by the Group for the measurement of rights of use and lease liabilities are the following: the lease term corresponds to the non-cancellable period of the contract, together with periods covered by an extension option if the Group is reasonably certain to exercise this option. In France, the standard commercial lease contract is the so-called “three, six, nine” contract for which the maximum period of use is nine years, with a first non-cancellable period of three years followed by two optional extension periods of three years each; hence, depending on the assessment, the selected lease term can be of three, six or nine years, depending on the reasonably foreseeable economic duration of the contracts. When investments like fittings or fixtures are performed under the contract, the lease term is aligned with their useful lives. For tacitly renewable contracts, with or without an enforceable period, related right of use and lease liabilities are recognised based on an estimate of the reasonably foreseeable economic life of the contracts, minimal occupation period included; the discount rate used to measure the right of use and the lease liability is assessed for each contract as the interest rate implicit in the lease, if that rate can be readily determined, or more generally based on the incremental borrowing rate of the lessee at the date of signature. The incremental borrowing rate is determined considering the average term (duration) of the contract; when the contract is modified, a new assessment of the lease liability is made taking into account the new residual term of the contract, and therefore a new assessment of the right of use and the lease liability is established. 1.jAssets held for sale and discontinued operations Where the Group decides to sell assets or a group of assets and liabilities and it is highly probable that the sale will occur within 12 months, these assets are shown separately in the balance sheet, on the line “Assets held for sale”. Any liabilities associated with these assets are also shown separately in the balance sheet, on the line “Liabilities associated with assets held for sale”. When the Group is committed to a sale plan involving loss of control of a subsidiary and the sale is highly probable within 12 months, all the assets and liabilities of that subsidiary are classified as held for sale. Once classified in this category, assets and the group of assets and liabilities are measured at the lower of carrying amount or fair value less costs to sell. Such assets are no longer depreciated. If an asset or group of assets and liabilities becomes impaired, an impairment loss is recognised in the profit and loss account. Impairment losses may be reversed. Where a group of assets and liabilities held for sale represents a cash generating unit, it is categorised as a “discontinued operation”. Discontinued operations include operations that are held for sale, operations that have been shut down, and subsidiaries acquired exclusively with a view to resell. In this case, gains and losses related to discontinued operations are shown separately in the profit and loss account, on the line “Net income from discontinued activities”. This line includes after tax profits or losses of discontinued operations, after tax gain or loss arising from remeasurement at fair value less costs to sell, and after tax gain or loss on disposal of the operation. 1.kEmployee benefits Employee benefits are classified into four categories: short-term benefits, such as salary, annual leave, incentive plans, profit-sharing and additional payments; long-term benefits, including compensated absences, long-service awards, and other types of cash-based deferred compensation; termination benefits; post-employment benefits, including top-up banking industry pensions and retirement bonuses in France and pension plans in other countries, some of which are operated through pension funds. Short-term benefits The Group recognises an expense when it has used services rendered by employees in exchange for employee benefits. Long-term benefits These are benefits, other than short-term benefits, post-employment benefits and termination benefits. This relates, in particular, to compensation deferred for more than 12 months and not linked to the BNP Paribas share price, which is accrued in the financial statements for the period in which this compensation is earned. The actuarial techniques used are similar to those used for defined-benefit post-employment benefits, except that the revaluation items are recognised in the profit and loss account and not in equity. Termination benefits Termination benefits are employee benefits payable in exchange for the termination of an employee’s contract as a result of either a decision by the Group to terminate a contract of employment before the legal retirement age, or a decision by an employee to accept voluntary redundancy in exchange for these benefits. Termination benefits due more than 12 months after the balance sheet date are discounted. Post-employment benefits In accordance with IFRS, the BNP Paribas Group draws a distinction between defined-contribution plans and defined-benefit plans. Defined-contribution plans do not give rise to an obligation for the Group and do not require a provision. The amount of the employer’s contributions payable during the period is recognised as an expense. Only defined-benefit schemes give rise to an obligation for the Group. This obligation must be measured and recognised as a liability by means of a provision. The classification of plans into these two categories is based on the economic substance of the plan, which is reviewed to determine whether the Group has a legal or constructive obligation to pay the agreed benefits to employees. Post-employment benefit obligations under defined-benefit plans are measured using actuarial techniques that take demographic and financial assumptions into account. The net liability recognised with respect to post-employment benefit plans is the difference between the present value of the defined-benefit obligation and the fair value of plan assets (if any). The present value of the defined-benefit obligation is measured on the basis of the actuarial assumptions applied by the Group, using the projected unit credit method. This method takes into account various parameters, specific to each country or Group entity, such as demographic assumptions, the probability that employees will leave before retirement age, salary inflation, a discount rate, and the general inflation rate. When the value of the plan assets exceeds the amount of the obligation, an asset is recognised if it represents a future economic benefit for the Group in the form of a reduction in future contributions or a future partial refund of amounts paid into the plan. The annual expense recognised in the profit and loss account under “Salaries and employee benefits”, with respect to defined-benefit plans includes the current service cost (the rights vested by each employee during the period in return for service rendered), the net interests linked to the effect of discounting the net defined-benefit liability (asset), the past service cost arising from plan amendments or curtailments, and the effect of any plan settlements. Remeasurements of the net defined-benefit liability (asset) are recognised in shareholders’ equity and are never reclassified to profit or loss. They include actuarial gains and losses, the return on plan assets and any change in the effect of the asset ceiling (excluding amounts included in net interest on the defined-benefit liability or asset). 1.lShare-based payments Share-based payment transactions are payments based on shares issued by the Group, whether the transaction is settled in the form of equity or cash of which the amount is based on trends in the value of BNP Paribas shares. Stock option and share award plans The expense related to stock option and share award plans is recognised over the vesting period, if the benefit is conditional upon the grantee’s continued presence at the vesting date. Stock options and share award expenses are recorded under salary and employee benefits expenses, with a corresponding adjustment to shareholders’ equity. They are calculated on the basis of the overall plan value, determined at the date of grant by the Board of directors. In the absence of any market for these instruments, financial valuation models are used that take into account any performance conditions related to the BNP Paribas share price. The total expense of a plan is determined by multiplying the unit value per option or share awarded by the estimated number of options or shares awarded vested at the end of the vesting period, taking into account the conditions regarding the grantee’s continued employment. The only assumptions revised during the vesting period, and hence resulting in a remeasurement of the expense, are those relating to the probability that employees will leave the Group and those relating to performance conditions that are not linked to the price value of BNP Paribas shares. Share price-linked cash-settled deferred compensation plans The expense related to these plans is recognised in the year during which the employee rendered the corresponding services. If the payment of share-based variable compensation is explicitly subject to an enforceable condition consisting in the employee’s continued presence at the vesting date, the services are presumed to have been rendered during the vesting period and the corresponding compensation expense is recognised on a pro rata basis over that period. The expense is recognised under salary and employee benefits expenses with a corresponding liability in the balance sheet. It is revised to take into account any non-fulfilment of the continued presence or performance conditions and the change in BNP Paribas share price. If there is no continued presence enforceable condition, the expense is not deferred, but recognised immediately with a corresponding liability in the balance sheet. This is then revised on each reporting date until settlement to take into account any performance conditions and the change in the BNP Paribas share price. 1.mProvisions recorded under liabilities Provisions recorded under liabilities (other than those relating to financial instruments, employee benefits and insurance contracts) mainly relate to restructuring, claims and litigation, fines and penalties. A provision is recognised when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation arising from a past event, and a reliable estimate can be made of the amount of the obligation. The amount of such obligations is discounted, where the impact of discounting is material, in order to determine the amount of the provision. 1.nCurrent and deferred tax The current income tax charge is determined on the basis of the tax laws and tax rates in force in each country in which the Group operates during the period in which the income is generated. Deferred taxes are recognised when temporary differences arise between the carrying amount of an asset or liability in the balance sheet and its tax base. Deferred tax liabilities are recognised for all taxable temporary differences other than: taxable temporary differences on initial recognition of goodwill; taxable temporary differences on investments in enterprises under the exclusive or joint control of the Group, where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognised for all deductible temporary differences and unused carryforwards of tax losses only to the extent that it is probable that the entity in question will generate future taxable profits against which these temporary differences and tax losses can be offset. Deferred tax assets and liabilities are measured using the liability method, using the tax rate which is expected to apply to the period when the asset is realised or the liability is settled, based on tax rates and tax laws that have been or will have been enacted by the balance sheet date of that period. They are not discounted. Deferred tax assets and liabilities are offset when they arise within the same tax group, they fall under the jurisdiction of a single tax authority, and there is a legal right to offset. As regards the assessment of uncertainty over income tax treatments, the Group adopts the following approach: the Group assesses whether it is probable that a taxation authority will accept an uncertain tax treatment; any uncertainty shall be reflected when determining the taxable profit (loss) by considering either the most likely amount (having the higher probability of occurrence), or the expected value (sum of the probability-weighted amounts). Current and deferred taxes are recognised as tax income or expenses in the profit and loss account, except for those relating to a transaction or an event directly recognised in shareholders’ equity, which are also recognised in shareholders’ equity. This concerns in particular the tax effect of coupons paid on financial instruments issued by the Group and qualified as equity instruments, such as undated super subordinated notes. When tax credits on revenues from receivables and securities are used to settle corporate income tax payable for the period, the tax credits are recognised on the same line as the income to which they relate. The corresponding tax expense continues to be carried in the profit and loss account under “Corporate income tax”. In accordance with the provisions of IAS 12, the Group applies the mandatory and temporary exception not to recognise deferred taxes associated with the additional tax resulting from the minimum income tax applied by international groups. 1.oCash flow statement The cash and cash equivalents balance is composed of the net balance of cash accounts and accounts with central banks, and the net balance of interbank demand loans and deposits. Changes in cash and cash equivalents related to operating activities reflect cash flows generated by the Group’s operations, including those relating to financial investments of insurance activities and negotiable certificates of deposit. Changes in cash and cash equivalents related to investing activities reflect cash flows resulting from acquisitions and disposals of subsidiaries, associates or joint ventures included in the consolidated Group, as well as acquisitions and disposals of property, plant and equipment excluding investment property and property held under operating leases. Changes in cash and cash equivalents related to financing activities reflect the cash inflows and outflows resulting from transactions with shareholders, cash flows related to bonds and subordinated debt, and debt securities (excluding negotiable certificates of deposit). 1.pUse of estimates in the preparation of the financial statements Preparation of the financial statements requires managers of core businesses and corporate functions to make assumptions and estimates that are reflected in the measurement of income and expense in the profit and loss account and of assets and liabilities in the balance sheet, and in the disclosure of information in the notes to the financial statements. This requires the managers in question to exercise their judgement and to make use of information available at the date of the preparation of the financial statements when making their estimates. The actual future results from operations where managers have made use of estimates may in reality differ significantly from those estimates, mainly according to market conditions. This may have a material effect on the financial statements. This applies in particular to: the analysis of the cash flow criterion for specific financial assets; the measurement of expected credit losses. This applies in particular to the assessment of significant increase in credit risk, the models and assumptions used to measure expected credit losses, including those relating to climate risks, the determination of the different economic scenarios and their weighting; the analysis of renegotiated loans, in order to assess whether they should be maintained on the balance-sheet or derecognised; the assessment of an active market, and the use of internally developed models for the measurement of the fair value of financial instruments not quoted in an active market classified in “Financial assets at fair value through equity”, or in “Financial instruments at fair value through profit or loss”, whether as assets or liabilities, and more generally calculations of the fair value of financial instruments subject to a fair value disclosure requirement; the assumptions applied to assess the sensitivity to each type of market risk of the market value of financial instruments and the sensitivity of these valuations to the main unobservable inputs as disclosed in the notes to the financial statements; the appropriateness of the designation of certain derivative instruments such as cash flow hedges, and the measurement of hedge effectiveness; impairment tests performed on intangible assets; the estimation of residual assets values under simple lease agreements. These values are used as a basis for the determination of depreciation as well as any impairment, notably in relation to the effect of environmental considerations on the evaluation of future prices of second-hand vehicles; the deferred tax assets; the measurement of insurance liabilities and assets, and investment contracts with discretionary participation, by groups of contracts, on the basis of discounted and probability weighted future fulfilment cash flows, based on assumptions that can be derived from market or entity-specific data, and the recognition of the results of such contracts on the basis of the services rendered over the coverage period; the measurement of uncertainty over income tax treatments and other provisions for contingencies and charges. In particular, while investigations and litigations are ongoing, it is difficult to foresee their outcome and potential impact. Provision estimation is established by taking into account all available information at the date of the preparation of the financial statements, in particular the nature of the dispute, the underlying facts, the ongoing legal proceedings and court decisions, including those related to similar cases. The Group may also use the opinion of experts and independent legal advisers to exercise its judgement. Note 2Notes to the profit and loss account for the YEAR ENDED 2024 2.aNet interest income The BNP Paribas Group includes in “Interest income” and “Interest expense” all income and expense calculated using the effective interest method (interest, fees and transaction costs) from financial instruments measured at amortised cost and financial instruments measured at fair value through equity. These items also include the interest income and expense of non-trading financial instruments the characteristics of which do not allow for recognition at amortised cost or at fair value through equity, as well as of financial instruments that the Group has designated as at fair value through profit or loss. The change in fair value on financial instruments at fair value through profit or loss (excluding accrued interest) is recognised under “Net gain on financial instruments at fair value through profit or loss”. Interest income and expense on derivatives accounted for as fair value hedges are included with the revenues generated by the hedged item. Similarly, interest income and expense arising from derivatives used to hedge transactions designated as at fair value through profit or loss is allocated to the same accounts as the interest income and expense relating to the underlying transactions. In the case of a negative interest rates related to loans and receivables or deposits from customers and credit institutions, they are accounted for in interest expense or interest income respectively. In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Income Expense Net Income Expense Net Financial instruments at amortised cost 69,819 (52,364) 17,455 66,886 (48,617) 18,269 Deposits, loans and borrowings 59,598 (39,095) 20,503 59,019 (36,827) 22,192 Repurchase agreements 815 (1,248) (433) 681 (1,295) (614) Finance leases 3,134 (118) 3,016 2,480 (109) 2,371 Debt securities 6,272 6,272 4,706 4,706 Issued debt securities and subordinated debt (11,903) (11,903) (10,386) (10,386) Financial instruments at fair value through equity 2,892 - 2,892 1,856 - 1,856 Financial instruments at fair value through profit or loss (Trading securities excluded) 305 (1,595) (1,290) 243 (1,454) (1,211) Cash flow hedge instruments 3,916 (1,961) 1,955 3,897 (1,741) 2,156 Interest rate portfolio hedge instruments 6,088 (7,497) (1,409) 6,660 (8,600) (1,940) Lease liabilities - (79) (79) - (72) (72) Total interest income/(expense) 83,020 (63,496) 19,524 79,542 (60,484) 19,058 Net interest income notably includes an expense of EUR 36 million for the year ended 2024, compared with EUR 938 million for the year ended 2023, due to the adjustment of economic hedges consecutive to the changes in the TLTRO terms and conditions mentioned below. Net interest income includes funding costs related to Global Markets, whose revenues are mainly accounted for in “Net gain on financial instruments at fair value through profit or loss” (see note 2.c), as well as to Arval, whose income from operating leases is presented in note 2.e. The evolution of the net interest income is therefore to be analysed in conjunction with those observed for these lines. Interest income on individually impaired loans amounted to EUR 338 million for the year ended 2024, compared with EUR 342 million for the year ended 2023. The Group subscribed to the TLTRO III (Targeted Longer-Term Refinancing Operations) programme, as modified by the Governing Council of the European Central Bank in March 2020, in December 2020 and in October 2022 (see note 4.g). The Group achieved the lending performance thresholds that enabled it to benefit from favourable interest rate conditions applicable for each of the reference period, namely: over the two special interest periods (i.e. from June 2020 to June 2022): the average deposit facility rate (“DFR”) -50 basis points, or -1%; over the next period (i.e. from June 2022 to November 2022): the average of the DFR between the TLTRO III initial date of subscription and 22 November 2022, i.e., for the main draws, -0.36% for the June 2020 tranche and -0.29% for the March 2021 tranche; over the last period (since 23 November 2022): the average of the DFR between 23 November 2022 and the redemption date. The average effective interest rate for the latter period was 3.3% (1.64% until 31 December 2022, 3.31% for the year 2023 and 3.89% for the year 2024 until 29 September 2024, the date of repayment of the last tranche of TLTRO III borrowings). This floating interest rate is considered as a market rate since it is applicable to all financial institutions meeting the lending criteria defined by the European Central Bank. The effective interest rate of these financial liabilities is determined for each reference period, its two components (reference rate and margin) being adjustable; it corresponds to the nominal interest rate. The addition of the last interest period in October 2022 is part of the European Central Bank’s monetary policy and is therefore not considered a contractual amendment according to IFRS 9 but a revision of the market rate. 2.bCommission income and expense In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Income Expense Net Income Expense Net Customer transactions 5,466 (1,488) 3,978 4,997 (1,250) 3,747 Securities and derivatives transactions 2,619 (2,004) 615 2,483 (1,965) 518 Financing and guarantee commitments 1,267 (92) 1,175 1,155 (189) 966 Asset management and other services 5,549 (431) 5,118 5,176 (367) 4,809 Others 1,295 (1,480) (185) 1,200 (1,419) (219) Commission income and expense 16,196 (5,495) 10,701 15,011 (5,190) 9,821 of which net commission income related to trust and similar activities through which the Group holds or invests assets on behalf of clients, trusts, pension and personal risk funds or other institutions 3,243 (410) 2,833 3,133 (360) 2,773 of which commission income and expense on financial instruments not measured at fair value through profit or loss 3,421 (311) 3,110 3,133 (453) 2,680 2.cNet gain on financial instruments at fair value through profit or loss Net gain on financial instruments measured at fair value through profit or loss includes all profit and loss items relating to financial instruments held for trading, financial instruments that the Group has designated as at fair value through profit or loss, non-trading equity instruments that the Group did not choose to measure at fair value through equity, as well as debt instruments whose cash flows are not solely repayments of principal and interest on the principal or whose business model is not to collect cash flows nor to collect cash flows and sell the assets. These income items include dividends on these instruments and exclude interest income and expense from financial instruments designated as at fair value through profit or loss and instruments whose cash flows are not only repayments of principal and interest on the principal or whose business model is not to collect cash flows nor to collect cash flows and sell the assets, which are presented in “Net interest income” (see note 2.a). In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Financial instruments held for trading 11,633 13,801 Interest rate and credit instruments (1,406) 8,948 Equity financial instruments 12,794 3,184 Foreign exchange financial instruments 6,269 5,452 Loans and repurchase agreements (6,048) (4,515) Other financial instruments 24 732 Financial instruments designated as at fair value through profit or loss (964) (3,985) Other financial instruments at fair value through profit or loss 797 565 Impact of hedge accounting 103 (35) Fair value hedging derivatives 1,677 (1,247) Hedged items in fair value hedge (1,574) 1,212 Net gain on financial instruments at fair value through profit or loss 11,569 10,346 Gains and losses on financial instruments designated as at fair value through profit or loss are mainly related to instruments for which changes in value may be compensated by changes in the value of economic hedging derivative financial instruments held for trading. Net gain on financial instruments held for trading in 2024 and 2023 includes a non-material amount related to the ineffective portion of cash flow hedges. Potential sources of ineffectiveness can be the differences between hedging instruments and hedged items, notably generated by mismatches in the terms of hedged and hedging instruments, such as the frequency and timing of interest rates resetting, the frequency of payments and the discounting factors, or when hedging derivatives have a non-zero fair value at the inception date of the hedging relationship. Credit valuation adjustments applied to hedging derivatives are also sources of ineffectiveness. Cumulated changes in fair value related to discontinued cash flow hedge relationships, previously recognised in equity and included in 2024 in profit and loss accounts are not material, whether the hedged item ceased to exist or not. 2.dNet gain on financial instruments at fair value through equity In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Net gain on debt instruments 145 (56) Dividend income on equity instruments 64 84 Net gain on financial instruments at fair value through equity 209 28 Interest income from debt instruments is included in note 2.a Net interest income, and impairment losses related to potential issuer default are included in note 2.g Cost of risk. 2.eNet income from other activities In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Income Expense Net Income Expense Net Net income from investment property 53 (24) 29 54 (28) 26 Net income from assets held under operating leases 19,556 (15,729) 3,827 15,787 (12,103) 3,684 Net income from property development activities 308 (277) 31 488 (416) 72 Other net income 2,005 (1,515) 490 2,231 (1,778) 453 Total net income from other activities 21,922 (17,545) 4,377 18,560 (14,325) 4,235 2.fOperating expenses In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Salary and employee benefit expense for banking activities (18,143) (17,775) Other operating expenses for banking activities (9,913) (11,221) of which external services and other operating expenses (8,737) (8,865) of which taxes and contributions(1) (1,176) (2,356) Insurance activities non-attributable costs (note 5.b) (832) (758) Reclassification of expenses incurred by internal distributors attributable to insurance contracts 1,085 1,041 Operating expenses (27,803) (28,713) Contributions to the Single Resolution Fund, including exceptional contributions, amounted to EUR 5 million for the year ended 2024 compared with EUR 1,002 million for the year ended 2023. Taxes and contributions, including those related to insurance activities, amounted to EUR 1,273 million for the year ended 2024 (compared with EUR 2,442 million for the year ended 2023). This is due in particular to the absence of contributions collection for the Single Resolution Fund in 2024. Expenses directly attributable to insurance contracts are presented in “Net income from insurance activities”. These costs consist mainly of distribution commissions paid for the acquisition of the contracts and other costs necessary for handling the contracts. They are included in the fulfilment expenses within the “Insurance service result” (see note 5.a). Expenses attributable to insurance contracts include the operating expenses incurred by the Group banking networks to distribute insurance contracts. Related costs are assessed on the basis of the commissions paid by the insurance entities to the internal distributors less their margin. These costs are excluded from “Operating expenses” to be included in the contracts fulfilment cash flows through the “Reclassification of expenses incurred by internal distributors attributable to insurance contracts”. Operating costs not directly attributable to insurance contracts are included in “Operating expenses”. Reconciliation by type and by function of insurance activities operating expenses is presented in note 5.b. 2.gCost of risk The general model for impairment described in note 1.f.5 used by the Group relies on the following two steps: assessing whether there has been a significant increase in credit risk since initial recognition; and measuring impairment allowance as either 12-month expected credit losses or lifetime expected credit loss (i.e. loss expected at maturity). Both steps rely on forward-looking information. Significant increase in credit risk At 31 December 2022, BNP Paribas revised its criteria for assessing the significant increase in credit risk in line with the recommendations issued by the European Banking Authority and the European Central Bank. Under these criteria, credit risk is assumed to have significantly increased, and the asset is classified in stage 2, if the probability of default to maturity of the instrument has increased at least threefold since its origination. This relative variation criterion is supplemented by an absolute variation criterion of the default probability of 400 basis points. Furthermore, for all portfolios (except for the consumer credit specialist business): the facility is assumed to be in stage 1 when its 1-year “Point in Time” probability of default (PiT PD), including forward-looking information, is below 0.3% at the reporting date, since changes in probability of default due to credit downgrades in this zone are not material, and therefore not considered “significant”; when the 1-year PiT PD is greater than 20% at the reporting date, given the Group’s credit issuance practices, the deterioration is considered significant, and the facility is classified in stage 2 (as long as the facility is not credit-impaired). In the consumer credit specialist business, the existence of a payment incident during the last 12 months, potentially regularised, is considered to be an indication of significant increase in credit risk and the facility is therefore classified in stage 2. From 2024, this specificity no longer applies to most exposures in the Eurozone. Credit risk is assumed to have increased significantly since initial recognition and the asset is classified in stage 2 in the event of late payment of more than 30 days or restructuring due to financial difficulties (as long as the facility is not credit-impaired). Since 31 December 2023, performing corporate clients placed under credit watch are systematically downgraded to stage 2. In 2022, the internal ratings of the Russian counterparties (including the sovereign rating) were systematically downgraded to take into account the geopolitical situation of the country, thus leading to the transfer of their outstandings to stage 2. However, given the Group’s limited level of exposure to this country, this deterioration had no significant effect on the cost of risk. Forward-Looking Information The Group considers forward-looking information both when assessing significant increase in credit risk and when measuring Expected Credit Losses (ECL). Regarding the measurement of expected credit losses, the Group has chosen to use 4 macroeconomic scenarios by geographic area covering a wide range of potential future economic conditions: a baseline scenario, consistent with the scenario used for budgeting and forecasting; a favourable scenario, capturing situations where the economy performs better than anticipated; an adverse scenario, corresponding to the scenario used for the Group’s quarterly stress tests; a severe scenario corresponding to a shock of magnitude greater than that of the adverse scenario. The link between the macroeconomic scenarios and the ECL measurement is mainly achieved through a modelling of the probabilities of default and deformation of migration matrices based on internal rating (or risk parameter). The probabilities of default determined according to these scenarios are used to measure expected credit losses in each of these scenarios. The Group’s setup is broken down by sector to take into account the heterogeneity of sectoral dynamics when assessing the probability of default for corporates. Forward-looking information is also considered when determining the significant deterioration in credit risk. As a matter of fact, the probabilities of default used as the basis for this assessment include forward-looking multi-scenario information in the same way as for the calculation of the expected losses. The weight to be attributed to the expected credit losses calculated in each of the scenarios is defined as follows: the weight of the baseline scenario is 50%; the weight of the three alternative scenarios is defined according to the position in the credit cycle. In this approach, the adverse scenario carries more weight in situations at the upper end of the cycle than those at the lower end of the cycle, in anticipation of a potential downturn in the economy; the weight of the favourable scenario is at least 10% and at most 40%; the total weight of adverse scenarios fluctuates symmetrically with the favourable also within a range of 10% to 40%; with a severe component representing 20% of this weight with a minimum weight of 5%. When appropriate, the ECL measurement can take into account asset sale scenarios. Macroeconomic scenarios The four macroeconomic scenarios are defined over a three-year projection horizon. They correspond to: a baseline scenario, which describes the most likely path of the economy over the projection horizon. This scenario is updated on a quarterly basis and is prepared by the Group Economic Research Department in collaboration with various experts within the Group. Projections are designed for each key market of the Group (France, Italy, Belgium, the United States, and the Eurozone) using key macroeconomic variables (Gross Domestic Product - GDP - and its components, unemployment rate, consumer prices, interest rates, foreign exchange rates, oil prices, real estate prices, etc.) which are key drivers for modelling risk parameters used in the stress test process; an adverse scenario, which describes the impact of the materialisation of some of the risks weighing on the baseline scenario, resulting in a much less favourable economic path than in the baseline scenario. The GDP shock is applied with varying magnitudes, but simultaneously, to the economies under consideration. Generally, these assumptions are broadly consistent with those proposed by the regulators. The calibration of shocks on other variables (e.g. unemployment, consumer prices, interest rates, etc.) is based on models and expert judgment; a severely adverse scenario, which is an aggravated version of the adverse scenario; a favourable scenario, which reflects the impact of the materialisation of some of the upside risks for the economy, resulting in a more favourable economic path. The favourable shock on GDP is deducted from the structural adverse shock on GDP in such a way that the probabilities of the two shocks are equal on average over the cycle. Other variables (e.g. unemployment, inflation, interest rates, etc.) are defined in the same way as in the adverse scenario. The link between the macroeconomic scenarios and the measurement of the ECL is complemented by an approach allowing to take into account anticipation aspects not captured by the models in the generic approach. This is particularly the case when unprecedented events in the historical chronicle taken into account to build the models occur or are anticipated, or when the nature or amplitude of change in macroeconomic parameter calls into question past correlations. Thus, the situation of high inflation and the level of interest rates previously recorded were not observed in the reference history. In this context, the Group has developed an approach to take into account the future economic outlook when assessing the financial strength of counterparties. This approach involves projecting the impact of higher interest rates on customers’ financial ratios, notably considering their level of indebtedness. Credit ratings and associated probabilities of default are revalued based on these simulated financial ratios. This approach is also used to anticipate the effect of lower prices of commercial properties. Starting in 2024, this approach is also used to complete the prospective assessment of the potential consequences of climate change (transition and physical risks) on the credit risk of corporate counterparties and mortgages. At the end of 2024, physical risks are accounted for through a post-model adjustment. Baseline scenario In 2024, global activity grew at a relatively moderate pace. In the Eurozone, activity returned to growth, supported by the positive impact of disinflation on real incomes and consumption, and the gradual easing of monetary conditions. In the United States, the economy remained strong. At 31 December 2024, annual growth forecasts were +0.8% in the Eurozone and +2.7% in the United States (compared to expectations of +0.8% and +0.7% respectively at 31 December 2023). Over the 2025-2027 period, the baseline scenario assumes a gradual continuation of the recovery in the eurozone, which would result from a strengthening of private domestic demand, as public spending is expected to be more constrained. In the United States, a deceleration in growth is assumed, after a few years of strong expansion. Inflation has continued to slow over the course of 2024, moving closer to the targets of major central banks. This has allowed most of them (ECB, Federal Reserve, Bank of England, etc.) to start a rate cut cycle. This monetary policy adjustment is expected to extend in 2025. Then, central bank rates are expected to remain stable over the following years (2026-2027), in the presence of controlled inflation, evolving around 2%. Long-term interest rates in 2023-2024 reached levels not seen in more than a decade and are assumed to remain relatively stable over the projection horizon (with no significant changes in growth and inflation scenarios). The uncertainty surrounding the baseline scenario appears to be relatively high. The current geopolitical context, marked by two major ongoing conflicts (invasion of Ukraine, conflict in the Middle East) and significant tensions in other regions (in Asia in particular), is likely to evolve rapidly. Additionally, the presidential shift in the United States in January 2025 may lead to notable changes in economic policy, particularly concerning customs duties, which could impact the global economy. The graph below presents a comparison of Eurozone GDP projections used in the baseline scenario for the calculation of ECLs on 31 December 2024 and 31 December 2023. ➤EUROZONE GDP: INDEX BASE 100 AT THE FOURTH QUARTER OF 2019 ➤Macroeconomic variables, baseline scenario at 31 December 2024 (annual averages) 2024 2025 2026 2027 GDP growth rate Eurozone 0.8% 1.1% 1.5% 1.6% France 1.2% 0.8% 1.3% 1.6% Italy 0.5% 0.7% 1.3% 1.3% Belgium 1.1% 1.3% 1.5% 1.5% United States 2.7% 1.9% 1.9% 1.7% Unemployment rate Eurozone 6.4% 6.6% 6.4% 6.0% France 7.6% 7.7% 7.4% 6.7% Italy 6.6% 6.7% 6.8% 6.7% Belgium 5.6% 5.8% 5.7% 5.6% United States 4.0% 4.2% 4.0% 4.0% Inflation rate Eurozone 2.4% 1.9% 2.0% 2.1% France 2.3% 1.4% 1.9% 1.9% Italy 1.1% 1.9% 2.0% 2.1% Belgium 4.3% 2.8% 2.2% 2.2% United States 2.9% 2.1% 2.3% 2.3% 10-year sovereign bond yields Germany 2.37% 2.45% 2.50% 2.50% France 2.99% 3.20% 3.25% 3.25% Italy 3.75% 3.75% 3.80% 3.80% Belgium 2.95% 3.05% 3.10% 3.10% United States 4.19% 4.25% 4.25% 4.25% Adverse and severely adverse scenarios The adverse and severely adverse scenarios assume that some downside risks will materialise, resulting in much less favourable economic paths than in the baseline scenario. The following main risks are identified: Geopolitical risks. Geopolitical tensions can weigh on the global economy through various channels, such as shocks on commodity prices, financial markets, business confidence, supply chains and trade. These developments are likely to lead simultaneously to higher inflation and a slowdown in activity, further complicating the task of central banks; Trade and globalisation. Tensions related to trade and globalisation have increased in recent years, leading to some fragmentation of the global economy. While tariff and non-tariff barriers have already increased significantly, additional protectionist measures between main economic areas (e.g. US, China, and the EU) are likely. They are susceptible to lead to higher prices and weigh on activity. Public finances. Numerous governments face a combination of elevated debt levels, higher borrowing costs and moderate growth. This constitutes a challenging environment for public finances at a time when governments face major structural challenges (climate action, defence capabilities, age-related outlays). These developments could give birth in some countries to market tensions (widening sovereign bond spreads) and affect activity through several channels (higher interest rates, higher taxes, reduced government spending). Climate events and policies. Climate change related developments can generate adverse shocks through various channels. First, announced climate policy measures are susceptible to trigger social protests, raise uncertainties, weigh on confidence; these developments can generate turbulences in financial markets and put a brake on some spending categories. Second, extreme weather events may disrupt activity (destructions, supply chain disruptions), weigh on real estate prices and take insurance and financial market premia up. The adverse and severe scenarios assume the materialisation of these identified risks from the first quarter of 2025. While downside risks are shared by these scenarios, the impacts are assumed to be markedly higher in the severely adverse scenario, due to both more pronounced direct shocks notably higher commodity prices, and the development of a negative spiral between key driving factors (activity, public debt, bond yields, equity markets). Among the considered countries, GDP levels in the adverse scenario stand between 7.8% and 11.2% lower than in the baseline scenario at the end of the shock period. In particular, this deviation reaches 8.2% in the Eurozone and 8.4% in the United States. In the severe scenario, GDP levels stand between 11.5% and 16.4% lower than in the baseline scenario at the end of the shock period. This deviation reaches 12.1% in the Eurozone and 12.3% in the United States. Scenario weighting and cost of risk sensitivity At 31 December 2024, the weight of the favourable scenario considered by the Group was 28%, and 17% for the adverse scenario and 5% for the severe scenario. At 31 December 2023, the weight of the favourable scenario was 33%, 12% for the adverse scenario and 5% for the severe scenario. The sensitivity of the amount of expected credit losses for all financial assets at amortised cost or at fair value through equity and credit commitments is assessed by comparing the estimated expected credit losses resulting from the weighting of the above scenarios with that resulting from each of the two main scenarios: an increase in ECL of 21%, or EUR 870 million according to the adverse scenario (23% at 31 December 2023); a decrease in ECL of 14%, or EUR 570 million according to the favourable scenario (12% at 31 December 2023). Post-model adjustments Post-model adjustments are made when system limitations are identified in a particular context, for instance, in the case of insufficient statistical data to reflect the specific situation in the models. Post-model adjustments are also considered to take into account, where applicable, the consequences of climatic events on expected credit losses. Notably, additional adjustments were made in 2022 to take into account the effects of inflation and interest rate hikes when this effect is not directly estimated by the models. For example, within the consumer credit specialist business, adjustments were considered for the categories of customers most sensitive to the gradual decline in the level of their net income. Given the evolution of the macroeconomic context in 2023 and 2024, these adjustments have been reassessed and are gradually reversed or used. All of these adjustments represent 3.7% of the total amount of expected credit losses at 31 December 2024, compared with 4.5% at 31 December 2023. ➤Cost of credit risk for the period In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Net allowances to impairment (2,689) (2,596) Recoveries on loans and receivables previously written off 250 250 Losses on irrecoverable loans (560) (561) Total cost of risk for the period (2,999) (2,907) ➤Cost of risk for the period by accounting category and asset type In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Cash and balances at central banks 4 (5) Financial instruments at fair value through profit or loss (98) (31) Financial assets at fair value through equity (1) 3 Financial assets at amortised cost (3,013) (2,904) Loans and receivables (2,907) (2,912) Debt securities (106) 8 Other assets 1 (2) Financing and guarantee commitments and other items 108 32 Total cost of risk for the period (2,999) (2,907) Cost of risk on unimpaired assets and commitments 765 517 of which stage 1 212 122 of which stage 2 553 395 Cost of risk on impaired assets and commitments – stage 3 (3,764) (3,424) ➤Credit risk impairment Changes in impairment by accounting category and asset type during the period In millions of euros, at 31 December 2023 Net allowance to impairment Impairment provisions used Changes in scope, exchange rates and other items 31 December 2024 Assets impairment Amounts due from central banks 20 (4) (1) 15 Financial instruments at fair value through profit or loss 108 61 (87) 8 90 Financial assets at fair value through equity 121 2 123 Financial assets at amortised cost 17,715 2,769 (3,647) 344 17,181 Loans and receivables 17,611 2,665 (3,619) 336 16,993 Debt securities 104 104 (28) 8 188 Other assets 30 6 (1) 15 50 Total impairment of financial assets 17,994 2,834 (3,735) 366 17,459 of which stage 1 1,966 (122) (3) (28) 1,813 of which stage 2 2,429 (458) (23) 3 1,951 of which stage 3 13,599 3,414 (3,709) 391 13,695 Provisions recognised as liabilities Provisions for commitments 883 (148) (1) (28) 706 Other provisions 387 3 (38) (3) 349 Total provisions recognised for credit commitments 1,270 (145) (39) (31) 1,055 of which stage 1 269 (91) 4 182 of which stage 2 301 (98) 3 206 of which stage 3 700 44 (39) (38) 667 Total impairment and provisions 19,264 2,689 (3,774) 335 18,514 Change in impairment by accounting category and asset type during the previous period In millions of euros, at 31 December 2022 Net allowance to impairment Impairment provisions used Changes in scope, exchange rates and other items 31 December 2023 Assets impairment Amounts due from central banks 21 5 (6) 20 Financial instruments at fair value through profit or loss 108 30 (24) (6) 108 Financial assets at fair value through equity 130 (3) (6) 121 Financial assets at amortised cost 18,511 2,620 (3,273) (143) 17,715 Loans and receivables 18,381 2,627 (3,264) (133) 17,611 Debt securities 130 (7) (9) (10) 104 Other assets 43 (14) 1 30 Total impairment of financial assets 18,813 2,652 (3,311) (160) 17,994 of which stage 1 2,074 (60) (2) (46) 1,966 of which stage 2 2,881 (347) (41) (64) 2,429 of which stage 3 13,858 3,059 (3,268) (50) 13,599 Provisions recognised as liabilities Provisions for commitments 980 (69) (1) (27) 883 Other provisions 450 13 (44) (32) 387 Total provisions recognised for credit commitments 1,430 (56) (45) (59) 1,270 of which stage 1 326 (47) (10) 269 of which stage 2 338 (25) (12) 301 of which stage 3 766 16 (45) (37) 700 Total impairment and provisions 20,243 2,596 (3,356) (219) 19,264 Changes in impairment of financial assets at amortised cost during the period In millions of euros Impairment on assets subject to 12-month Expected Credit Losses (Stage 1) Impairment on assets subject to lifetime Expected Credit Losses (Stage 2) Impairment on doubtful assets (Stage 3) Total At 31 December 2023 1,938 2,416 13,361 17,715 Net allowance to impairment (123) (458) 3,350 2,769 Financial assets purchased or originated during the period 686 188 3 877 Financial assets derecognised during the period(1) (367) (500) (724) (1,591) Transfer to stage 2 (263) 2,005 (320) 1,422 Transfer to stage 3 (72) (908) 2,280 1,300 Transfer to stage 1 206 (914) (47) (755) Other allowances/reversals without stage transfer(2) (313) (329) 2,158 1,516 Impairment provisions used (3) (23) (3,621) (3,647) Changes in exchange rates (1) 4 173 176 Changes in scope of consolidation and other items (26) 194 168 At 31 December 2024 1,785 1,939 13,457 17,181 Including disposals. Including amortisation. In 2024, the volume of financial assets at amortised cost increased compared to previous year and amounted to EUR 1,095 billion (see note 4.e Financial assets at amortised cost) of which EUR 917 billion in loans and advances to customers. Loans and advances to customers classified in stage 1 increased by EUR 44 billion over the year, while stage 2 outstandings decreased by EUR 5 billion. Within each of these stages, net reversals of provisions were observed. The stabilisation of the interest rate and inflation environment has led to the reversal of additional provisions previously set aside to anticipate the impact of rising interest rates on corporate clients’ financial ratios and the effect of inflation on the disposable income of the most vulnerable customer segments within the specialised consumer credit business. In parallel, a review of models and migration matrices applied to probabilities of default has resulted in an overall improvement of counterparties rating and risk parameters. These effects are particularly observed in Table No.52 : Breakdown of financial assets subject to impairment by stage and internal rating in section 5.4 Credit risk of the Universal registration document. Finally, transfers of exposures to Stage 3 were higher than in 2023 and amounted to EUR 9.2 billion, particularly for corporate clients (see note 4.f Impaired financial assets). This led to a net reversal of impairment on Stages 1 and 2 in 2024. Additionally, debt securities classified in Stage 2 amounted to EUR 1.9 billion as of 31 December 2024, compared to EUR 94 million as of 31 December 2023. This evolution, which resulted in an increase in related provisions, is mainly due to a change in the consolidation method applied to the UkrSibbank entity (see note 8.d Business combinations and loss of control or influence). Changes in impairment of financial assets at amortised cost during the previous period In millions of euros Impairment on assets subject to 12-month Expected Credit Losses (Stage 1) Impairment on assets subject to lifetime Expected Credit Losses (Stage 2) Impairmen on doubtful assets (Stage 3) Total At 31 December 2022 2,035 2,860 13,616 18,511 Net allowance to impairment (63) (339) 3,022 2,620 Financial assets purchased or originated during the period 691 294 985 Financial assets derecognised during the period(1) (405) (490) (726) (1,621) Transfer to stage 2 (371) 2,121 (199) 1,551 Transfer to stage 3 (74) (990) 2,258 1,194 Transfer to stage 1 288 (860) (86) (658) Other allowances/reversals without stage transfer(2) (192) (414) 1,775 1,169 Impairment provisions used (2) (41) (3,230) (3,273) Changes in exchange rates (16) (7) (80) (103) Changes in scope of consolidation and other items (16) (57) 33 (40) At 31 December 2023 1,938 2,416 13,361 17,715 Including disposals. Including amortisation. 2.hOther net losses for risk on financial instruments In 2023, the Group modified its accounting policy relating to the risk of loss of cash flows on financial instruments granted that are not linked to the counterparty’s default, such as legal risks calling into question the validity or enforceability of such contracts. The effect on expected cash flows due to these risks is now considered as a change in the contract’s cash flows, in accordance with IFRS 9 B5.4.6, and is recorded as a decrease in the gross value of the asset. It was previously recognised separately in accordance with IAS 37 in “Provisions for risks and charges” (see note 4.n). Expected losses on derecognised financial instruments, as is the case when loans have been repaid, continue to be recognised in accordance with IAS 37. The corresponding expected and realised cash flow losses are now presented under “Other net losses for risk on financial instruments”. In 2024, the expense thus recognised relates to EUR 186 million in mortgage loans in Swiss franc or indexed to the Swiss franc in Poland, and to EUR 16 million in losses under the law on assistance to borrowers in Poland. In 2023, it was mainly composed of EUR 450 million in mortgage loans in Swiss franc or indexed to the Swiss franc in Poland, and EUR 221 million in foreign currency loans issued by BNP Paribas Personal Finance. 2.iNet gain on non-current assets In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Gain or loss on investments in consolidated undertakings (note 8.d) 133 29 Gain or loss on tangible and intangible assets (30) 139 Results from net monetary position (294) (272) Net gain on non-current assets (191) (104) According to IAS 29 in connection with the hyperinflation situation of the economy in Türkiye, the line “Results from net monetary positions” corresponds to the effect of the revaluation of net monetary assets of the evolution of the consumer price index in Türkiye on the valuation of non-monetary assets and liabilities (-EUR 549 million) and on income from the Turkish government bonds portfolio indexed to inflation and held by Turk Ekonomi Bankasi AS (+EUR 255 million, reclassified from interest margin) in 2024 (respectively -EUR 563 million and +EUR 291 million in 2023). 2.jCorporate income tax Reconciliation of the effective tax expense to the theoretical tax expense at standard tax rate in France Year to 31 Dec. 2024 Year to 31 Dec. 2023 in millions of euros tax rate in millions of euros tax rate Corporate income tax expense on pre-tax income at standard tax rate in France(1) (3,938) 25.8% (2,875) 25.8% Impact of differently taxed foreign profits (160) 1.0% (56) 0.5% Impact of dividends and disposals taxed at reduced rate 188 -1.2% 131 -1.2% Impact of the non-deductibility of taxes and bank levies(2) (132) 0.9% (369) 3.3% Impact of previously unrecognised deferred taxes (tax losses and temporary differences) 432 -3.9% Impact of the hyperinflation in Türkiye (98) 0.6% (202) 1.9% Other items 139 -0.9% (327) 2.9% Corporate income tax expense from continuing activities (4,001) 26.2% (3,266) 29.3% Current tax expense(3) (3,013) (3,063) Deferred tax expense (note 4.i) (988) (203) Restated for the share of profits in equity-method entities and goodwill impairment. Contribution to the Single Resolution Fund and other non-deductible banking taxes. Tax expense related to OECD Pillar II Model Rules on global minimum taxation for large multinational enterprises applicable from 1 January 2024 amounted to EUR 8 million for the year ended 2024. Note 3Segment information The Group is composed of three operating divisions: Corporate & Institutional Banking (CIB) which covers Global Banking, Global Markets and Securities Services; Commercial, Personal Banking & Services (CPBS) which covers Commercial & Personal banking in the Eurozone, with Commercial & Personal Banking in France (CPBF), Commercial & Personal Banking in Italy (BNL bc), Commercial & Personal Banking in Belgium (CPBB) and Commercial & Personal Banking in Luxembourg (CPBL); Commercial & Personal banking outside the Eurozone, which is organised around Europe‑Mediterranean, to cover Central and Eastern Europe and Türkiye. Lastly, it also covers specialised businesses, (Arval, BNP Paribas Leasing Solutions, BNP Paribas Personal Finance, BNP Paribas Personal Investors and New Digital Businesses like Nickel, Floa, Lyf); Investment & Protection Services (IPS) which covers Insurance (BNP Paribas Cardif), Wealth and Asset Management (BNP Paribas Asset Management, BNP Paribas Wealth Management and BNP Paribas Real Estate), Management of the BNP Paribas Group’s portfolio of unlisted and listed industrial and commercial investments (BNP Paribas Principal Investments). Other Activities mainly include activities related to the Group’s central treasury function, some costs related to cross-business projects, the residential mortgage lending business of Personal Finance (a significant part of which is managed in run-off), and certain investments. They also include non-recurring items resulting from applying the rules on business combinations. In order to provide consistent and relevant economic information for each core business, the impact of amortising fair value adjustments recognised in the net equity of entities acquired and restructuring costs incurred in respect to the integration of entities, have been allocated to the “Other Activities” segment. The same applies to transformation, adaptation and IT reinforcement costs relating to the Group’s savings programmes. In addition, Other Activities carry the impact, related to the application of IFRS 17, of the reclassification as a deduction from revenues of the operating expenses “attributable to insurance contracts” of the Group’s business lines (other than Insurance) that distribute insurance contracts (i.e., internal distributors), in order not to disrupt the readability of their financial performance. This is also the case for the impact of the volatility on the financial result generated by the recognition at fair value through profit or loss of assets backing insurance entities’ equity or non-participating contracts. In the event of divestment connected to this portfolio, the realised gains or losses are allocated to the revenues of the Insurance business line. Inter-segment transactions are conducted at arm’s length. The segment information presented comprises agreed inter-segment transfer prices. The capital allocation is carried out on the basis of risk exposure, taking into account various conventions relating primarily to the capital requirement of the business as derived from the risk-weighted asset calculations required under capital adequacy rules. Normalised equity income by segment is determined by attributing to each segment the income of its allocated equity. The capital allocation to segments is based on a minimum of 11% of weighted assets. The breakdown of balance sheet by core business follows the same rules as the breakdown of the profit or loss by core business. In order to be comparable with the presentation format used since 1 January 2024, the year ended 31 December 2023 of this note has been restated for the following effects as if they had occurred on 1 January 2023: taking into account the end of the ramp-up of the Single Resolution Fund (SRF) as from 1 January 2024, and the assumption of a similar contribution to local banking taxes at an estimated amount around EUR 200 million per year from 2024. Regarding the 2023 net income, the contribution to the SRF (EUR 1,002 million) was entirely allocated to the divisions and business lines (including Corporate Centre). The restatement entails reallocating approximately EUR 800 million not intended to continue from 2024 to the “Other Activities” segment, and allocating only the EUR 200 million mentioned above to the divisions and business lines; taking into account management rules considered in 2024, for the presentation of assets and liabilities relating to asset management and private banking activities in 2023. ➤Income by business segment In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Revenues Operating expenses Cost of risk(1) Operating income Non- operating items Pre-tax income Revenues Operating expenses Cost of risk(1) Operating income Non- operating items Pre-tax income Corporate & Institutional Banking 17,897 (10,731) 143 7,310 13 7,323 16,509 (10,265) 63 6,307 (5) 6,302 Global Banking 6,236 (2,921) 171 3,486 6 3,492 5,822 (2,802) 74 3,094 6 3,100 Global Markets 8,718 (5,649) (28) 3,041 2 3,043 7,996 (5,402) (13) 2,581 8 2,590 Securities Services 2,943 (2,161) 782 6 788 2,691 (2,061) 1 631 (19) 612 Commercial, Personal Banking & Services 26,027 (16,119) (3,275) 6,633 171 6,804 25,917 (15,824) (2,920) 7,173 156 7,329 Commercial & Personal Banking in the Eurozone 13,162 (9,046) (1,033) 3,083 81 3,164 13,259 (9,064) (986) 3,209 12 3,221 Commercial & Personal Banking in France(2) 6,241 (4,420) (670) 1,151 (2) 1,149 6,251 (4,482) (484) 1,285 1,285 BNL banca commerciale(2) 2,766 (1,745) (338) 682 (4) 678 2,646 (1,712) (410) 524 (3) 520 Commercial & Personal Banking in Belgium(2) 3,545 (2,585) (21) 939 87 1,026 3,784 (2,583) (84) 1,116 10 1,126 Commercial & Personal Banking in Luxembourg(2) 610 (296) (4) 310 310 577 (286) (8) 283 5 289 Commercial & Personal Banking in the rest of the world 3,104 (2,016) (365) 723 50 773 2,631 (1,653) (44) 934 100 1,034 Europe-Mediterranean(2) 3,104 (2,016) (365) 723 50 773 2,631 (1,653) (44) 934 100 1,034 Specialised businesses 9,761 (5,058) (1,877) 2,826 40 2,866 10,027 (5,106) (1,890) 3,031 44 3,074 Personal Finance 5,075 (2,779) (1,573) 724 98 822 5,163 (2,952) (1,600) 611 65 676 Arval & Leasing Solutions 3,627 (1,556) (202) 1,869 (63) 1,807 3,869 (1,477) (167) 2,225 (14) 2,211 New Digital Businesses & Personal Investors(2) 1,059 (724) (102) 233 4 237 995 (677) (123) 195 (8) 187 Investment & Protection Services 5,824 (3,570) (15) 2,239 116 2,355 5,590 (3,552) (13) 2,025 148 2,173 Insurance 2,238 (840) 1,398 172 1,570 2,090 (808) 1,281 113 1,394 Wealth Management 1,688 (1,199) 489 489 1,603 (1,183) (3) 416 4 420 Asset Management(3) 1,898 (1,530) (15) 353 (56) 297 1,897 (1,560) (10) 327 31 358 Other Activities - excl. restatement related to insurance activities 173 (858) (55) (740) 451 (289) (1,060) (2,357) (812) (4,228) 190 (4,039) Other Activities - restatement related to insurance activities (1,090) 1,085 (5) (5) (1,081) 1,041 (40) (40) of which volatility (5) (5) (5) (40) (40) (40) of which attributable costs to internal distributors (1,085) 1,085 (1,041) 1,041 Total continuing activities 48,831 (30,193) (3,201) 15,437 751 16,188 45,874 (30,956) (3,682) 11,236 489 11,725 Including “Other net losses for risk on financial instruments”. Commercial & Personal Banking in France, BNL banca commerciale, Commercial & Personal Banking in Belgium, Commercial & Personal Banking in Luxembourg, Europe-Mediterranean and Personal Investors after the reallocation within Wealth and Asset Management of one-third of the Wealth Management activities in France, Italy, Belgium, Luxembourg, Germany, Türkiye and Poland. Including Real Estate and Principal Investments. ➤Net commission income by business segment In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Corporate & Institutional Banking 2,401 2,214 Global Banking 1,959 1,784 Global Markets (1,008) (975) Securities Services 1,450 1,405 Commercial, Personal Banking & Services 7,216 6,777 Commercial & Personal Banking in the eurozone 5,194 5,019 Commercial & Personal Banking in France(1) 3,006 2,875 BNL banca commerciale(1) 1,077 1,043 Commercial & Personal Banking in Belgium(1) 1,023 1,014 Commercial & Personal Banking in Luxembourg(1) 88 87 Commercial & Personal Banking in the rest of the world 607 442 Europe-Mediterranean(1) 607 442 Specialised businesses 1,415 1,316 Personal Finance 795 776 Arval & Leasing Solutions 56 54 New Digital Businesses & Personal Investors(1) 564 486 Investment & Protection Services 2,018 1,850 Insurance (361) (368) Wealth Management 896 749 Asset Management(2) 1,483 1,469 Other activities - excl. restatement related to insurance activities 151 21 Other activities - restatement related to insurance activities (1,085) (1,041) Total Group 10,701 9,821 Commercial & Personal Banking in France, BNL banca commerciale, Commercial & Personal Banking in Belgium, Commercial & Personal Banking in Luxembourg, Europe-Mediterranean and Personal Investors after the reallocation within Wealth and Asset Management of one-third of the Wealth Management activities in France, Italy, Belgium, Luxembourg, Germany, Türkiye and Poland. Including Real Estate and Principal Investments. ➤Assets and liabilities by business segment In millions of euros, at 31 December 2024 31 December 2023 Asset Liability Asset Liability Corporate & Institutional Banking 1,257,271 1,375,940 1,136,691 1,309,407 Global Banking 195,330 258,037 176,822 241,346 Global Markets 1,016,601 960,504 921,650 917,780 Securities Services 45,340 157,400 38,219 150,281 Commercial, Personal Banking & Services 802,565 701,384 790,637 702,388 Commercial & Personal Banking in the eurozone 547,798 551,464 552,876 559,503 Commercial & Personal Banking in France(1) 236,792 242,000 236,866 244,563 BNL banca commerciale(1) 89,722 78,660 94,164 81,275 Commercial & Personal Banking in Belgium(1) 192,644 197,679 192,423 202,447 Commercial & Personal Banking in Luxembourg(1) 28,640 33,126 29,423 31,218 Commercial & Personal Banking in the rest of the world 71,050 68,419 59,282 55,409 Europe-Mediterranean(1) 71,050 68,419 59,282 55,409 Specialised businesses 183,718 81,500 178,479 87,476 Personal Finance 109,512 27,802 108,791 29,003 Arval & Leasing Solutions 70,283 20,785 65,086 22,245 New Digital Businesses & Personal Investors(1) 3,923 32,913 4,602 36,228 Investment & Protection Services 322,771 355,810 289,722 319,544 Insurance 286,849 274,655 257,133 243,510 Wealth Management 27,373 76,611 24,836 70,859 Asset Management(2) 8,549 4,544 7,753 5,175 Other activities 322,301 271,774 374,449 260,160 Total Group 2,704,908 2,704,908 2,591,499 2,591,499 Commercial & Personal Banking in France, BNL banca commerciale, Commercial & Personal Banking in Belgium, Commercial & Personal Banking in Luxembourg, Europe-Mediterranean and Personal Investors after the reallocation within Wealth and Asset Management of one-third of the Wealth Management activities in France, Italy, Belgium, Luxembourg, Germany, Türkiye and Poland. Including Real Estate and Principal Investments. Information by business segment relating to goodwill is presented in note 4.m Goodwill. Information by geographic area The geographic split of segment results, assets and liabilities is based on the region in which they are recognised for accounting purposes, adjusted as per the managerial origin of the business activity. It does not necessarily reflect the counterparty’s nationality or the location of operational businesses. ➤Revenues from continuing activities by geographic area In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 EMEA 39,688 37,822 Americas (North and South) 4,898 4,286 APAC 4,245 3,766 Total Group 48,831 45,874 ➤Assets and liabilities, in contribution to the consolidated accounts, by geographic area In millions of euros, at 31 December 2024 31 December 2023 EMEA 2,196,747 2,148,461 Americas (North and South) 316,411 255,099 APAC 191,750 187,939 Total Group 2,704,908 2,591,499 Note 4Notes to the balance sheet at 31 December 2024 4.aFinancial instruments at fair value through profit or loss Financial assets and liabilities at fair value through profit or loss Financial assets and financial liabilities at fair value through profit or loss consist of held-for-trading transactions - including derivatives - of certain assets and liabilities designated by the Group as at fair value through profit or loss at the time of issuance and of non-trading instruments whose characteristics prevent their accounting at amortised cost or at fair value through equity. In millions of euros, at 31 December 2024 31 December 2023 Financial instruments held for trading Financial instruments designated as at fair value through profit or loss Other financial assets at fair value through profit or loss Total Financial instruments held for trading Financial instruments designated as at fair value through profit or loss Other financial assets at fair value through profit or loss Total Securities 256,779 15 10,563 267,357 202,225 549 8,860 211,634 Loans and repurchase agreements 221,622 4,077 225,699 224,700 2,475 227,175 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS 478,401 15 14,640 493,056 426,925 549 11,335 438,809 Securities 79,958 79,958 104,910 104,910 Deposits and repurchase agreements 302,488 2,329 304,817 271,486 2,128 273,614 Issued debt securities and subordinated debt (note 4.h) 104,934 104,934 83,763 83,763 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS 382,446 107,263 489,709 376,396 85,891 462,287 Detail of these assets and liabilities is provided in note 4.d. Financial liabilities designated as at fair value through profit or loss Financial liabilities at fair value through profit or loss mainly consist of issued debt securities, originated and structured on behalf of customers, where the risk exposure is managed in combination with the hedging strategy. These types of issued debt securities contain significant embedded derivatives, which changes in value may be compensated by changes in the value of economic hedging derivatives. The redemption value of debt issued and designated as at fair value through profit or loss at 31 December 2024 was EUR 110,823 million (EUR 89,910 million at 31 December 2023). Other financial assets measured at fair value through profit or loss Other financial assets at fair value through profit or loss are financial assets not held for trading: debt instruments that do not meet the criteria defined by IFRS 9 to be classified as financial instruments at “fair value through equity” or at “amortised cost”: their business model is not to “collect contractual cash flows” nor “collect contractual cash flows and sell the instruments”, and/or their cash flows are not solely repayments of principal and interest on the principal amount outstanding; equity instruments that the Group did not choose to classify as at “fair value through equity”. Derivative financial instruments The majority of derivative financial instruments held for trading are related to transactions initiated for trading purposes. They may result from market-making or arbitrage activities. BNP Paribas actively trades in derivatives. Transactions include trades in “ordinary” instruments such as credit default swaps, and structured transactions with complex risk profiles tailored to meet the needs of its customers. The net position is in all cases subject to limits. Some derivative instruments are also contracted to hedge financial assets or financial liabilities for which the Group has not documented a hedging relationship, or which do not qualify for hedge accounting under IFRS. In millions of euros, at 31 December 2024 31 December 2023 Positive market value Negative market value Positive market value Negative market value Interest rate derivatives 121,491 95,045 133,500 105,976 Foreign exchange derivatives 158,085 152,269 119,094 118,126 Credit derivatives 10,767 11,085 8,427 10,320 Equity derivatives 28,065 40,185 24,067 38,027 Other derivatives 4,223 3,369 6,991 6,443 Derivative financial instruments 322,631 301,953 292,079 278,892 The table below shows the total notional amount of trading derivatives. The notional amounts of derivative instruments are merely an indication of the volume of the Group’s activities in financial instruments markets, and do not reflect the market risks associated with such instruments. In millions of euros, at 31 December 2024 31 December 2023 Exchange- traded Over-the- counter, cleared through central clearing houses Over-the- counter Total Exchange- traded Over-the- counter, cleared through central clearing houses Over-the- counter Total Interest rate derivatives 983,378 15,690,701 7,277,395 23,951,474 1,327,902 14,448,396 6,811,394 22,587,692 Foreign exchange derivatives 74,516 194,540 10,769,644 11,038,700 57,625 173,339 8,980,659 9,211,623 Credit derivatives 436,041 463,565 899,606 357,964 465,403 823,367 Equity derivatives 1,356,158 798,676 2,154,834 1,130,554 638,904 1,769,458 Other derivatives 184,941 93,181 278,122 119,024 84,251 203,275 Derivative financial instruments 2,598,993 16,321,282 19,402,461 38,322,736 2,635,105 14,979,699 16,980,611 34,595,415 As part of its Client Clearing activity, the Group guarantees the risk of default of its clients to central counterparties. The corresponding notional amount is EUR 1,271 billion at 31 December 2024 (EUR 1,197 billion at 31 December 2023). 4.bDerivatives used for hedging purposes The table below shows the notional amounts and the fair value of derivatives used for hedging purposes. In millions of euros, at 31 December 2024 31 December 2023 Notional amounts Positive fair value Negative fair value Notional amounts Positive fair value Negative fair value Fair value hedges 1,215,184 19,489 32,610 1,148,308 19,409 33,808 Interest rate derivatives 1,210,173 19,305 32,391 1,139,647 18,516 32,617 Foreign exchange derivatives 5,011 184 219 8,661 893 1,191 Cash flow hedges 267,840 1,297 4,196 241,125 2,233 4,138 Interest rate derivatives 75,830 654 1,583 66,134 896 1,760 Foreign exchange derivatives 191,237 590 2,532 174,426 1,270 2,312 Other derivatives 773 53 81 565 67 66 Net foreign investment hedges 2,885 65 58 2,648 50 65 Foreign exchange derivatives 2,885 65 58 2,648 50 65 Derivatives used for hedging purposes 1,485,909 20,851 36,864 1,392,081 21,692 38,011 Interest rate risk and foreign exchange risk management strategies are described in chapter 5 – Pillar 3 of the Universal registration document (section 5.7 Market risk – Market risk related to banking activities). Quantitative information related to foreign currency borrowings used for net investment hedges is also mentioned in this chapter. The table below presents the detail of fair value hedge relationships for identified financial instruments and portfolios of financial instruments that are continuing at 31 December 2024: In millions of euros, at 31 December 2024 Hedging instruments Hedged instruments Notional amounts Positive fair value Negative fair value Cumulated changes in fair value used as the basis for recognising ineffectiveness Carrying amount – asset Cumulated changes in fair value – asset Carrying amount – liability Cumulated changes in fair value – liability Fair value hedges of identified instruments 467,277 10,935 14,372 (408) 171,514 (4,723) 149,961 (5,075) Interest rate derivatives hedging the interest rate risk related to 462,854 10,786 14,154 (396) 169,146 (4,721) 148,362 (5,061) Loans and receivables 21,678 459 504 (35) 17,111 34 Securities 220,047 9,896 6,286 4,680 152,035 (4,755) Deposits 21,350 134 137 (9) 16,851 (11) Debt securities 199,779 297 7,227 (5,032) 131,511 (5,050) Foreign exchange derivatives hedging the interest rate and foreign exchange risks related to 4,423 149 218 (12) 2,368 (2) 1,599 (14) Loans and receivables 1,403 137 47 3 1,007 (3) Securities 1,435 8 5 1,361 1 Deposits 36 2 2 41 2 Debt securities 1,549 4 164 (17) 1,558 (16) Interest rate risk hedged portfolios 747,907 8,554 18,238 (8,868) 200,215 (1,745) 151,658 (10,592) Interest rate derivatives hedging the interest rate risk related to(1) 747,319 8,519 18,237 (8,865) 199,658 (1,747) 151,658 (10,592) Loans and receivables 319,703 5,461 2,721 1,848 199,658 (1,747) Deposits 427,616 3,058 15,516 (10,713) 151,658 (10,592) Foreign exchange derivatives hedging the interest rate and foreign exchange risks related to 588 35 1 (3) 557 2 - - Loans and receivables 588 35 1 (3) 557 2 Total fair value hedge 1,215,184 19,489 32,610 (9,276) 371,729 (6,468) 301,619 (15,667) Are included in this section the notional amounts of hedging derivatives and of swaps that reverse the interest rate positions, thus reducing the hedge relationship, when the hedged item still exists, for respectively EUR 129,507 million for derivatives hedging loans and receivables and EUR 263,952 million for derivatives hedging deposits. The table below presents the detail of fair value hedge relationships for identified financial instruments and portfolios of financial instruments that are continuing at 31 December 2023: In millions of euros, at 31 December 2023 Hedging instruments Hedged instruments Notional amounts Positive fair value Negative fair value Cumulated changes in fair value used as the basis for recognising ineffectiveness Carrying amount – asset Cumulated changes in fair value – asset Carrying amount – liability Cumulated changes in fair value – liability Fair value hedges of identified instruments 405,307 9,539 13,084 (582) 133,418 (6,571) 154,708 (7,030) Interest rate derivatives hedging the interest rate risk related to 398,328 8,653 11,932 (491) 129,967 (6,575) 151,227 (6,948) Loans and receivables 20,674 487 449 88 20,886 (82) Securities 162,254 7,826 2,383 6,369 109,081 (6,493) Deposits 24,158 123 222 (203) 20,487 (201) Debt securities 191,242 217 8,878 (6,745) 130,740 (6,747) Foreign exchange derivatives hedging the interest rate and foreign exchange risks related to 6,979 886 1,152 (91) 3,451 4 3,481 (82) Loans and receivables 2,069 687 737 (11) 2,055 10 Securities 1,405 184 193 8 1,396 (6) Deposits 833 6 21 4 846 3 Debt securities 2,672 9 201 (92) 2,635 (85) Interest rate risk hedged portfolios 743,001 9,870 20,724 (10,261) 233,224 (3,803) 228,527 (14,009) Interest rate derivatives hedging the interest rate risk related to(1) 741,319 9,862 20,685 (10,263) 231,609 (3,801) 228,527 (14,009) Loans and receivables 339,035 6,302 1,938 3,780 231,609 (3,801) Deposits 402,284 3,560 18,747 (14,043) 228,527 (14,009) Foreign exchange derivatives hedging the interest rate and foreign exchange risks related to 1,682 8 39 2 1,615 (2) - - Loans and receivables 1,682 8 39 2 1,615 (2) Total fair value hedge 1,148,308 19,409 33,808 (10,843) 366,642 (10,374) 383,235 (21,039) Are included in this section the notional amounts of hedging derivatives and of swaps that reverse the interest rate positions, thus reducing the hedge relationship, when the hedged item still exists, for respectively EUR 93,839 million for derivatives hedging loans and receivables and EUR 177,833 million for derivatives hedging deposits. An asset or a liability or set of assets and liabilities, can be hedged over several periods of time with different derivative financial instruments. Besides, some hedges are achieved by the combination of two derivative instruments. In this case, the notional amounts add up and their total amount is higher than the hedged amount. The first situation is observed more particularly for interest rate risk hedged portfolios and the second for hedges of issued debt securities. As regards discontinued fair value hedge relationships where the derivative contract was terminated, the cumulated amount of revaluation remaining to be amortised over the residual life of the hedged instruments amounted to EUR 986 million in assets at 31 December 2024, and to -EUR 104 million in liabilities, for hedges of portfolios of financial instruments. At 31 December 2023, these amounts were EUR 1,143 million in assets and -EUR 166 million in liabilities. Regarding hedges of identified instruments, the cumulated amount of revaluation remaining to be amortised over the residual life of the hedged instruments amounts to EUR 99 million in assets at 31 December 2024. At 31 December 2023, this amount was EUR 105 million in assets. The notional amount of cash flow hedge derivatives is EUR 267,840 million at 31 December 2024. Changes in assets and liabilities recognised directly in equity amount to EUR 48 million. At 31 December 2023, the notional amount of cash flow hedge derivatives was EUR 241,125 million and changes in assets and liabilities recognised directly in equity amounted to EUR 189 million. The tables below present the notional amounts of hedging derivatives by maturity at 31 December 2024 and at 31 December 2023: In millions of euros, at 31 December 2024 Maturity date Less than 1 year Between 1 and 5 years Over 5 years Total Fair value hedges 454,601 456,223 304,360 1,215,184 Interest rate derivatives 452,137 454,004 304,032 1,210,173 Foreign exchange derivatives 2,464 2,219 328 5,011 Cash flow hedges 198,515 55,256 14,069 267,840 Interest rate derivatives 41,299 25,253 9,278 75,830 Foreign exchange derivatives 156,886 29,563 4,788 191,237 Other derivatives 330 440 3 773 Net foreign investment hedges 2,432 453 - 2,885 Foreign exchange derivatives 2,432 453 2,885 In millions of euros, at 31 December 2023 Maturity date Less than 1 year Between 1 and 5 years Over 5 years Total Fair value hedges 328,104 487,495 332,709 1,148,308 Interest rate derivatives 323,853 483,325 332,469 1,139,647 Foreign exchange derivatives 4,251 4,170 240 8,661 Cash flow hedges 176,330 52,161 12,634 241,125 Interest rate derivatives 30,565 28,999 6,570 66,134 Foreign exchange derivatives 145,532 22,832 6,062 174,426 Other derivatives 233 330 2 565 Net foreign investment hedges 2,648 - - 2,648 Foreign exchange derivatives 2,648 2,648 4.cFinancial assets at fair value through equity In millions of euros, at 31 December 2024 31 December 2023 Fair value of which changes in value recognised directly to equity Fair value of which changes in value recognised directly to equity Debt securities 71,430 (1,285) 50,274 (585) Governments 36,128 (545) 23,334 (207) Other public administrations 20,721 (432) 16,188 (117) Credit institutions 11,148 (306) 7,388 (248) Others 3,433 (2) 3,364 (13) Equity securities 1,610 489 2,275 767 Total financial assets at fair value through equity 73,040 (796) 52,549 182 Debt securities at fair value through equity include EUR 106 million classified as stage 3 at 31 December 2024 (EUR 109 million at 31 December 2023). For these securities, the credit impairment recognised in the profit and loss account has been charged to the negative changes in value recognised in equity amounting to EUR 102 million at 31 December 2024 (unchanged compared with 31 December 2023). The option to recognise certain equity instruments at fair value through equity was retained in particular for shares held through strategic partnerships and shares that the Group is required to hold in order to carry out certain activities. During the year ended 31 December 2024, the Group sold several of these investments and a net gain of EUR 207 million was transferred to “retained earnings” (EUR 9 million for the year ended 31 December 2023). 4.dMeasurement of the fair value of financial instruments Valuation process BNP Paribas has retained the fundamental principle that it should have a unique and integrated processing chain for producing and controlling the valuations of financial instruments that are used for the purpose of daily risk management and financial reporting. All these processes are based on a common economic valuation which is a core component of business decisions and risk management strategies. Economic value is composed of mid-market value, to which valuation adjustments are made. Mid-market value is derived from external data or valuation techniques that maximise the use of observable and market-based data. Mid-market value is a theoretical additive value which does not take account of i) the direction of the transaction or its impact on the existing risks in the portfolio, ii) the nature of the counterparties, and iii) the aversion of a market participant to particular risks inherent in the instrument, the market in which it is traded, or the risk management strategy. Valuation adjustments take into account valuation uncertainty and include market and credit risk premiums to reflect costs that could be incurred in case of an exit transaction in the principal market. Fair value generally equals the economic value, subject to limited adjustments, such as own credit adjustments, which are specifically required by IFRS standards. The main valuation adjustments are presented in the section below. Valuation adjustments Valuation adjustments retained by BNP Paribas for determining fair values are as follows: Bid/offer adjustments: the bid/offer range reflects the additional exit cost for a price taker and symmetrically the compensation sought by dealers to bear the risk of holding the position or closing it out by accepting another dealer’s price. BNP Paribas assumes that the best estimate of an exit price is the bid or offer price, unless there is evidence that another point in the bid/offer range would provide a more representative exit price. Input uncertainty adjustments: when the observation of prices or data inputs required by valuation techniques is difficult or irregular, an uncertainty exists on the exit price. There are several ways to gauge the degree of uncertainty on the exit price such as measuring the dispersion of the available price indications or estimating the possible ranges of the inputs to a valuation technique. Model uncertainty adjustments: these relate to situations where valuation uncertainty is due to the valuation technique used, even though observable inputs might be available. This situation arises when the risks inherent in the instruments are different from those available in the observable data, and therefore the valuation technique involves assumptions that cannot be easily corroborated. Future Hedging Costs adjustments (FHC): this adjustment applies to positions that require dynamic hedging throughout their lifetime leading to additional bid/offer costs. Calculation methods capture these expected costs in particular based on the optimal hedging frequency. Credit valuation adjustment (CVA): the CVA adjustment applies to valuations and market quotations whereby the credit worthiness of the counterparty is not reflected. It aims to account for the possibility that the counterparty may default and that BNP Paribas may not receive the full fair value of the transactions. In determining the cost of exiting or transferring counterparty risk exposures, the relevant market is deemed to be an inter-dealer market. However, the determination of CVA remains judgemental due to i) the possible absence or lack of price discovery in the inter-dealer market, ii) the influence of the regulatory landscape relating to counterparty risk on the market participants’ pricing behaviour and iii) the absence of a dominant business model for managing counterparty risk. The CVA model is grounded on the same exposures as those used for regulatory purposes. The model attempts to estimate the cost of an optimal risk management strategy based on i) implicit incentives and constraints inherent in the regulations in force and their evolutions, ii) market perception of the probability of default, and iii) default parameters used for regulatory purposes. Funding valuation adjustment (FVA): when valuation techniques are used for the purpose of deriving fair value, funding assumptions related to the future expected cash flows are an integral part of the mid-market valuation, notably through the use of appropriate discount rates. These assumptions reflect what the Bank anticipates as being the effective funding conditions of the instrument that a market participant would consider. This notably takes into account the existence and terms of any collateral agreement. In particular, for non- or imperfectly collateralised derivative instruments, they include an explicit adjustment to the interbank interest rate. Own-credit valuation adjustment for debts (OCA) and for derivatives (debit valuation adjustment – DVA): OCA and DVA are adjustments reflecting the effect of credit worthiness of BNP Paribas, on respectively the value of debt securities designated as at fair value through profit or loss and derivatives. Both adjustments are based on the expected future liability profiles of such instruments. The own credit worthiness is inferred from the market-based observation of the relevant bond issuance levels. The DVA adjustment is determined after taking into account the Funding Valuation Adjustment (FVA). Thus, the carrying value of debt securities designated as at fair value though profit or loss increased by EUR 388 million at 31 December 2024, compared with a decrease in value of EUR 198 million at 31 December 2023, i.e. a +EUR 586 million variation recognised directly in equity that will not be reclassified to profit or loss. Instrument classes and Classification within the fair value hierarchy for assets and liabilities measured at fair value As explained in the summary of significant accounting policies (note 1.f.10), financial instruments measured at fair value are categorised into a fair value hierarchy consisting of three levels. In millions of euros, at 31 December 2024 Financial instruments held for trading Instruments at fair value through profit or loss not held for trading Financial assets at fair value through equity Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Securities 215,211 40,417 1,151 256,779 640 1,397 8,541 10,578 62,844 9,427 769 73,040 Governments 76,246 18,301 171 94,718 32,137 3,919 72 36,128 Other debt securities 18,922 21,937 781 41,640 24 411 378 813 29,740 5,295 267 35,302 Equities and other equity securities 120,043 179 199 120,421 616 986 8,163 9,765 967 213 430 1,610 Loans and repurchase agreements 221,607 15 221,622 2,874 1,203 4,077 Loans 9,324 9,324 2,874 1,203 4,077 Repurchase agreements 212,283 15 212,298 FINANCIAL ASSETS AT FAIR VALUE 215,211 262,024 1,166 478,401 640 4,271 9,744 14,655 62,844 9,427 769 73,040 Securities 77,891 1,971 96 79,958 Governments 54,020 373 54,393 Other debt securities 8,648 1,576 96 10,320 Equities and other equity securities 15,223 22 15,245 Borrowings and repurchase agreements 301,036 1,452 302,488 2,126 203 2,329 Borrowings 6,113 6,113 2,126 203 2,329 Repurchase agreements 294,923 1,452 296,375 Issued debt securities and subordinated debt (note 4.h) 66,580 38,354 104,934 Issued debt securities 65,764 38,354 104,118 Subordinated debt 816 816 FINANCIAL LIABILITIES AT FAIR VALUE 77,891 303,007 1,548 382,446 - 68,706 38,557 107,263 In millions of euros, at 31 December 2023 Financial instruments held for trading Instruments at fair value through profit or loss not held for trading Financial assets at fair value through equity Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Securities 171,172 30,482 571 202,225 1,205 1,079 7,125 9,409 44,707 7,095 747 52,549 Governments 80,933 14,291 10 95,234 225 225 19,919 3,367 48 23,334 Other debt securities 19,776 15,747 439 35,962 327 363 380 1,070 23,218 3,515 207 26,940 Equities and other equity securities 70,463 444 122 71,029 653 716 6,745 8,114 1,570 213 492 2,275 Loans and repurchase agreements 224,512 188 224,700 913 1,562 2,475 Loans 8,441 8,441 913 1,562 2,475 Repurchase agreements 216,071 188 216,259 FINANCIAL ASSETS AT FAIR VALUE 171,172 254,994 759 426,925 1,205 1,992 8,687 11,884 44,707 7,095 747 52,549 Securities 102,913 1,955 42 104,910 Governments 69,811 398 70,209 Other debt securities 9,670 1,544 41 11,255 Equities and other equity securities 23,432 13 1 23,446 Borrowings and repurchase agreements 270,854 632 271,486 1,973 155 2,128 Borrowings 4,846 4,846 1,973 155 2,128 Repurchase agreements 266,008 632 266,640 Issued debt securities and subordinated debt (note 4.h) 52,080 31,683 83,763 Issued debt securities(1) 51,345 31,683 83,028 Subordinated debt 735 735 FINANCIAL LIABILITIES AT FAIR VALUE 102,913 272,809 674 376,396 - 54,053 31,838 85,891 The hierarchical level breakdown has been adjusted, moving EUR 8.1 billion from level 2 to level 3. This adjustment is not associated with a decreased observability of valuation parameters and does not challenge the fair value measurement of the affected financial instruments. Fair values of derivatives are broken down by dominant risk factor, namely interest rate, foreign exchange, credit and equity. Derivatives used for hedging purposes are mainly interest rate derivatives. In millions of euros, at 31 December 2024 Positive market value Negative market value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives 479 119,383 1,629 121,491 505 92,636 1,904 95,045 Foreign exchange derivatives 57 157,499 529 158,085 53 151,964 252 152,269 Credit derivatives 10,161 606 10,767 10,362 723 11,085 Equity derivatives 9 24,977 3,079 28,065 4 34,165 6,016 40,185 Other derivatives 693 3,400 130 4,223 851 2,466 52 3,369 Derivative financial instruments not used for hedging purposes 1,238 315,420 5,973 322,631 1,413 291,593 8,947 301,953 Derivative financial instruments used for hedging purposes - 20,851 - 20,851 - 36,864 - 36,864 In millions of euros, at 31 December 2023 Positive market value Negative market value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Interest rate derivatives 734 131,382 1,384 133,500 714 103,334 1,928 105,976 Foreign exchange derivatives 18 118,300 776 119,094 16 118,065 45 118,126 Credit derivatives 7,663 764 8,427 8,697 1,623 10,320 Equity derivatives 15 21,177 2,875 24,067 659 31,222 6,146 38,027 Other derivatives 586 6,365 40 6,991 607 5,769 67 6,443 Derivative financial instruments not used for hedging purposes 1,353 284,887 5,839 292,079 1,996 267,087 9,809 278,892 Derivative financial instruments used for hedging purposes - 21,692 - 21,692 - 38,011 - 38,011 Transfers between levels may occur when an instrument fulfils the criteria defined, which are generally market and product dependent. The main factors influencing transfers are changes in the observation capabilities, passage of time, and events during the transaction lifetime. The timing of recognising transfers is determined at the beginning of the reporting period. During the year 2024, transfers between Level 1 and Level 2 were not significant. Description of main instruments in each level The following section provides a description of the instruments in each level in the hierarchy. It describes notably instruments classified in Level 3 and the associated valuation methodologies. For main trading book instruments and derivatives classified in Level 3, further quantitative information is provided about the inputs used to derive fair value. Level 1 This level encompasses all derivatives and securities that are quoted continuously in active markets. Level 1 includes notably equity securities and liquid bonds, shortselling of these instruments, derivative instruments traded on organised markets (futures, options, etc.). It includes shares of funds and UCITS, for which the net asset value is calculated on a daily basis. Level 2 The Level 2 stock of securities is composed of securities which are less liquid than the Level 1 bonds. They are predominantly corporate debt securities, government bonds, mortgage backed securities, fund shares and short-term securities such as certificates of deposit. They are classified in Level 2 notably when external prices for the same security can be regularly observed from a reasonable number of market makers that are active in this security, but these prices do not represent directly tradable prices. This comprises amongst other, consensus pricing services with a reasonable number of contributors that are active market makers as well as indicative runs from active brokers and/or dealers. Other sources, such as primary issuance market, may also be used where relevant. Repurchase agreements are classified predominantly in Level 2. The classification is primarily based on the observability and liquidity of the repo market, depending on the underlying collateral and the maturity of the repo transaction. Debts issued designated as at fair value through profit or loss, are classified in the same level as the one that would apply to the embedded derivative taken individually. The issuance spread is considered observable. Derivatives classified in Level 2 comprise mainly the following instruments: vanilla instruments such as interest rate swaps, caps, floors and swaptions, credit default swaps, equity/foreign exchange (FX)/commodities forwards and options; structured derivatives for which model uncertainty is not significant such as exotic FX options, mono- and multi-underlying equity/funds derivatives, single curve exotic interest rate derivatives and derivatives based on structured rates. The above derivatives are classified in Level 2 when there is a documented stream of evidence supporting one of the following: fair value is predominantly derived from prices or quotations of other Level 1 and Level 2 instruments, through standard market interpolation or stripping techniques whose results are regularly corroborated by real transactions; fair value is derived from other standard techniques such as replication or discounted cash flows that are calibrated to observable prices, that bear limited model risk and enable an effective offset of the risks of the instrument through trading Level 1 or Level 2 instruments; fair value is derived from more sophisticated or proprietary valuation techniques but is directly evidenced through regular back-testing using external market-based data. Determining whether an over-the-counter (OTC) derivative is eligible for Level 2 classification involves judgement. Consideration is given to the origin, transparency and reliability of external data used, and the amount of uncertainty associated with the use of models. It follows that the Level 2 classification criteria involve multiple analysis axis within an “observability zone” whose limits are determined by i) a predetermined list of product categories and ii) the underlying and maturity bands. These criteria are regularly reviewed and updated, together with the applicable valuation adjustments, so that the classification by level remains consistent with the valuation adjustment policy. Level 3 Level 3 securities of the trading book mainly comprise units of funds and unlisted equity shares measured at fair value through profit or loss or through equity. Unlisted private equities are systematically classified as Level 3, with the exception of UCITS with a daily net asset value, which are classified in Level 1 of the fair value hierarchy. Shares and other unlisted variable income securities in Level 3 are valued using one of the following methods: a share of revalued net book value, multiples of comparable companies, future cash flows method, multi-criteria approach. Repurchase agreements, mainly long-term or structured repurchase agreements on corporate bonds and ABS: the valuation of these transactions requires proprietary methodologies given the bespoke nature of the transactions and the lack of activity and price discovery in the long-term repo market. The curves used in the valuation are corroborated using available data such as recent long-term repo trade data and price enquiry data. Valuation adjustments applicable to these exposures are commensurate with the degree of uncertainty inherent in the modelling choices and amount of data available. Debts issued designated as at fair value through profit or loss, are classified in the same level as the one that would apply to the embedded derivative taken individually. The issuance spread is considered observable. Derivatives Vanilla derivatives are classified in Level 3 when the exposure is beyond the observation zone for rate curves or volatility surfaces, or relates to less liquid markets such as tranches on old credit index series or emerging markets interest rates markets. The main instruments are: Interest rate derivatives: exposures mainly comprise swap products in less liquid currencies. Classification is driven by the lower liquidity of some maturities, while observation capabilities through consensus may be available. The valuation technique is standard, and uses external market information and extrapolation techniques. Credit derivatives (CDS): exposures mainly comprise CDSs beyond the maximum observable maturity and, to a much lesser extent, CDSs on illiquid or distressed names and CDSs on loan indices. Classification is driven by the lack of liquidity while observation capabilities may be available notably through consensus. Level 3 exposures also comprise CDS and Total Return Swaps (TRS) positions on securitised assets. These are priced along the same modelling techniques as the underlying bonds, taking into consideration the funding basis and specific risk premium. Equity derivatives: exposures essentially comprise long dated forward or volatility products or exposures where there is a limited market for optional products. The marking of the forward curves and volatility surfaces beyond the maximum observable maturity relies on extrapolation techniques. However, when there is no market for model input, volatility or forward is generally determined on the basis of proxy or historical analysis. Similarly, long-term transactions on equity baskets are also classified in Level 3, based on the absence of equity correlation observability on long maturities. These vanilla derivatives are subject to valuation adjustments linked to uncertainty on liquidity, specialised by nature of underlying and liquidity bands. Structured derivatives classified in Level 3 predominantly comprise hybrid products (FX/Interest Rates hybrids, Equity hybrids), credit correlation products, prepayment-sensitive products, some stock basket optional products and some interest rate optional instruments. The main exposures are described below, with insight into the related valuation techniques and on the source of uncertainty: Structured interest rate options are classified in Level 3 when they involve currencies where there is not sufficient observation or when they include a quanto feature where the pay-off is measured with a forex forward fixed rate (except for the main currencies). Long term structured derivatives are also classified in Level 3. Hybrid FX/Interest rate products essentially comprise a specific product family known as Power Reverse Dual Currency (PRDC) when there is material valuation uncertainty. When valuation of PRDCs requires sophisticated modelling of joint behaviour of FX and interest rate, and is notably sensitive to the unobservable FX/interest rate correlations, such products are classified as Level 3. PRDCs valuations are corroborated with recent trade data and consensus data. Securitisation swaps mainly comprise fixed-rate swaps, cross-currency or basis swaps whose notional is indexed to the prepayment behaviour of some underlying portfolio. The estimation of the maturity profile of securitisation swaps is corroborated by statistical estimates using external historical data. Forward volatility options are generally products whose pay-off is indexed to the future variability of a rate index such as volatility swaps. These products involve material model risk as it is difficult to infer forward volatility information from market-traded instruments. The valuation adjustment framework is calibrated to the uncertainty inherent in the product, and to the range of uncertainty from the existing external consensus data. Inflation derivatives classified in Level 3 mainly comprise swap products on inflation indices that are not associated with a liquid indexed bond market, optional products on inflation indices (such as caps and floors) and other forms of inflation indices involving optionality on the inflation indices or on the inflation annual rate. Valuation techniques used for inflation derivatives are predominantly standard market models. Proxy techniques are used for a few limited exposures. Although the valuations are corroborated through monthly consensus data, these products are classified as Level 3 due to their lack of liquidity and some uncertainties inherent in the calibration. The valuation of bespoke CDO requires correlation of default events when there is material valuation uncertainty. This information is inferred from the active index tranche market through a proprietary projection technique and involves proprietary extrapolation and interpolation techniques. Multi-geography CDO further require an additional correlation assumption. Finally, the bespoke CDO model also involves proprietary assumptions and parameters related to the dynamic of the recovery factor. CDO modelling is calibrated on the observable index tranche markets, and is regularly back-tested against consensus data on standardised pools. The uncertainty arises from the model risk associated with the projection and geography mixing technique, and the uncertainty of associated parameters, together with the recovery modelling. N to Default baskets are other forms of credit correlation products, modelled through standard copula techniques. The main inputs required are the pair-wise correlations between the basket components which can be observed in the consensus and the transactions. Linear baskets are considered observable. Equity and equity-hybrid correlation products are instruments whose pay-off is dependent on the joint behaviour of a basket of equities/indices leading to a sensitivity of the fair value measurement to the correlation amongst the basket components. Hybrid versions of these instruments involve baskets that mix equity and non-equity underlyings such as commodity indices, or foreign exchange rates. Only a subset of the Equity/index correlation matrix is regularly observable and traded, while most cross-asset correlations are not active. Therefore, classification in Level 3 depends on the composition of the basket, the maturity, and the hybrid nature of the product. The correlation input is derived from a proprietary model combining historical estimators, and other adjustment factors, that are corroborated by reference to recent trades or external data. The correlation matrix is essentially available from consensus services, and when a correlation between two underlying instruments is not available, it might be obtained from extrapolation or proxy techniques. These structured derivatives are subject to specific valuation adjustments to cover uncertainties linked to liquidity, parameters and model risk. Valuation adjustments (CVA, DVA and FVA) The valuation adjustment for counterparty credit risk (CVA), own-credit risk for derivatives (DVA) and the explicit funding valuation adjustment (FVA) are deemed to be unobservable components of the valuation framework and therefore classified in Level 3. This does not impact, in general cases, the classification of individual transactions into the fair value hierarchy. However, a specific process allows to identify individual deals for which the marginal contribution of these adjustments and related uncertainty is significant and justifies classifying these transactions in Level 3. The table below provides the range of values of main unobservable inputs for the valuation of Level 3 financial instruments. The ranges displayed correspond to a variety of different underlying instruments and are meaningful only in the context of the valuation technique implemented by BNP Paribas. The weighted averages, where relevant and available, are based on fair values, nominal amounts or sensitivities. The main unobservable parameters used for the valuation of debt issued in Level 3 are equivalent to those of their economic hedge derivative. Information on those derivatives, displayed in the following table, is also applicable to these debts. Risk classes Balance Sheet valuation (in millions of euros) Main product types composing the Level 3 stock within the risk class Valuation technique used for the product types considered Main unobservable inputs for the product types considered Range of unobservable input across Level 3 population considered Weighted average Asset Liability Repurchase agreements 15 1,452 Long-term repo and reverse-repo agreements Proxy techniques, based amongst other on the funding basis of a benchmark bond pool, that is actively traded and representative of the repo underlying Long-term repo spread on private bonds (High Yield, High Grade) and on ABS 0 bp to 107 bp 32 bp (a) Interest rate derivatives 1,629 1,904 Hybrid Forex / Interest rates derivatives Hybrid Forex interest rate option pricing model Correlation between FX rate and interest rates. Main currency pairs are EUR/JPY, USD/JPY, AUD/JPY 3% to 56% 9% (a) Hybrid inflation rates / Interest rates derivatives Hybrid inflation interest rate option pricing model Correlation between interest rates and inflation rates mainly in Europe. 19% to 45% 35% Floors and caps on inflation rate or on the cumulative inflation (such as redemption floors), predominantly on European and French inflation Inflation pricing model Volatility of cumulative inflation 1.3% to 11.6% (b) Volatility of the year-on- year inflation rate 0.3% to 2.6% Forward Volatility products such as volatility swaps, mainly in euros Interest rates option pricing model Forward volatility of interest rates 0.5% to 0.8% (b) Balance-guaranteed fixed rate, basis or cross currency swaps, predominantly indexed on European collateral pools Prepayment modelling Discounted cash flows Constant prepayment rates 0% to 25% 0.2% (a) Credit derivatives 606 723 Collateralised Debt Obligations and index tranches for inactive index series Base correlation projection technique and recovery modelling Base correlation curve for bespoke portfolios 27% to 88% (b) Recovery rate variance for single name underlyings 0% to 25% (b) N-to-default baskets Credit default model Default correlation 50% to 83% 54% (a) Single name Credit Default Swaps (other than CDS on ABs and loans indices) Stripping, extrapolation and interpolation Credit default spreads beyond observation limit (10 years) 19 bp to 20 bp 19 bp Illiquid credit default spread curves (across main tenors) 1 bp to 2,217 bp (1) 102 bp (c) Equity derivatives 3,079 6,016 Simple and complex derivatives on multi-underlying baskets on stocks Various volatility option models Unobservable equity volatility 0% to 184% (2) 24% (d) Unobservable equity correlation 16% to 99% 62% (c) (1) (2) (a) (b) (c) (d) The upper bound of the range relates to building, retail and services sector issuers that represent an insignificant portion of the balance sheet (CDS with illiquid underlying instruments). The underlyings with implied volatility greater than 50% have a very limited exposure. Weights based on relevant risk axis at portfolio level. No weighting, since no explicit sensitivity is attributed to these inputs. Weighting is not based on risks, but on an alternative methodology in relation with the Level 3 instruments (present value or notional). Simple averaging. Table of movements in Level 3 financial instruments For Level 3 financial instruments, the following movements occurred during the year ended 2024: In millions of euros Financial assets Financial liabilities Financial instruments at fair value through profit or loss held for trading Financial instruments at fair value through profit or loss not held for trading Financial assets at fair value through equity TOTAL Financial instruments at fair value through profit or loss held for trading Financial instruments designated as at fair value through profit or loss TOTAL At 31 December 2023 6,598 8,687 747 16,032 (10,483) (31,838) (42,321) Purchases 2,327 1,797 306 4,430 - Issues - (21,959) (21,959) Sales (1,856) (1,383) (281) (3,520) 167 167 Settlements(1) 1,970 (9) (20) 1,941 (1,045) 14,371 13,326 Transfers to Level 3 724 2 145 871 (760) (517) (1,277) Transfers from Level 3 (1,227) (36) (51) (1,314) 659 1,583 2,242 Gains (or losses) recognised in profit or loss with respect to transactions expired or terminated during the period (95) 623 (8) 520 147 55 202 Gains (or losses) recognised in profit or loss with respect to unexpired instruments at the end of the period (1,303) (9) (1,312) 825 (209) 616 Items related to exchange rate movements 1 72 (11) 62 (5) (43) (48) Changes in fair value of assets and liabilities recognised in equity (58) (58) At 31 December 2024 7,139 9,744 769 17,652 (10,495) (38,557) (49,052) For the assets, includes redemptions of principal, interest payments as well as cash inflows and outflows relating to derivatives. For the liabilities, includes principal redemptions, interest payments as well as cash inflows and outflows relating to derivatives the fair value of which is negative. Transfers out of Level 3 of derivatives include mainly the update of the observability tenor of certain yield curves, and of market parameters related to repurchase agreements and credit transactions but also the effect of derivatives becoming only or mainly sensitive to observable inputs due to the shortening of their lifetime. Transfers into Level 3 of instruments at fair value reflect the effect of the regular update of the observability zones. Transfers have been reflected as if they had taken place at the beginning of the reporting period. The Level 3 financial instruments may be hedged by other Level 1 and Level 2 instruments, the gains and losses of which are not shown in this table. Consequently, the gains and losses shown in this table are not representative of the gains and losses arising from management of the net risk on all these instruments. Sensitivity of fair value to reasonably possible changes in level 3 assumptions The following table summarises those financial assets and financial liabilities classified as Level 3 for which alternative assumptions in one or more of the unobservable inputs would change fair value significantly. The amounts disclosed are intended to illustrate the range of possible uncertainty inherent to the judgement applied when estimating Level 3 parameters, or when selecting valuation techniques. These amounts reflect valuation uncertainties that prevail at the measurement date, and even though such uncertainties predominantly derive from the portfolio sensitivities that prevailed at that measurement date, they are not predictive or indicative of future movements in fair value, nor do they represent the effect of market stress on the portfolio value. In estimating sensitivities, BNP Paribas either remeasured the financial instruments using reasonably possible inputs, or applied assumptions based on the valuation adjustment policy. For the sake of simplicity, the sensitivity on cash instruments that are not relating to securitised instruments was based on a uniform 1% shift in the price. More specific shifts were however calibrated for each class of the Level 3 securitised exposures, based on the possible ranges of the unobservable inputs. For derivative exposures, the sensitivity measurement is based on the credit valuation adjustment (CVA), the explicit funding valuation adjustment (FVA) and the parameter and model uncertainty adjustments related to Level 3. Regarding the credit valuation adjustment (CVA) and the explicit funding valuation adjustment (FVA), the uncertainty was calibrated based on prudent valuation adjustments described in the technical standard “Prudent Valuation” published by the European Banking Authority. For other valuation adjustments, two scenarios were considered: a favourable scenario where all or portion of the valuation adjustment is not considered by market participants, and an unfavourable scenario where market participants would require twice the amount of valuation adjustments considered by BNP Paribas for entering into a transaction. In millions of euros, at 31 December 2024 31 December 2023 Potential impact on income Potential impact on equity Potential impact on income Potential impact on equity Debt securities +/- 10 +/- 4 +/- 6 +/- 2 Equities and other equity securities +/- 84 +/- 4 +/- 68 +/- 5 Loans and repurchase agreements +/- 26 +/- 20 Derivative financial instruments +/- 584 +/- 586 Interest rate and foreign exchange derivatives +/- 194 +/- 218 Credit derivatives +/- 79 +/- 94 Equity derivatives +/- 308 +/- 271 Other derivatives +/- 3 +/- 3 Sensitivity of Level 3 financial instruments +/- 704 +/- 8 +/- 680 +/- 7 Deferred margin on financial instruments measured using techniques developed internally and based on inputs partly unobservable in active markets Deferred margin on financial instruments (“Day One Profit”) primarily concerns the scope of financial instruments eligible for Level 3 and to a lesser extent some financial instruments eligible for Level 2 where valuation adjustments for uncertainties regarding parameters or models are not negligible compared with the initial margin. The Day One Profit is calculated after setting aside valuation adjustments for uncertainties as described previously and released to profit or loss over the expected period for which the inputs will be unobservable. The unamortised amount is included under “Financial instruments at fair value through profit or loss” as a reduction in the fair value of the relevant transactions. In millions of euros Deferred margin at 31 December 2023 Deferred margin on transactions during the period Margin taken to the profit and loss account during the period Deferred margin at 31 December 2024 Interest rate and foreign exchange derivatives 167 68 (68) 167 Credit derivatives 225 145 (141) 229 Equity derivatives 381 385 (393) 373 Other instruments 11 29 (28) 12 Financial instruments 784 627 (630) 781 4.eFinancial assets at amortised cost ➤Detail of loans and advances by nature In millions of euros, at 31 December 2024 31 December 2023 Gross value Impairment (note 2.g) Carrying amount Gross value Impairment (note 2.g) Carrying amount Loans and advances to credit institutions 31,232 (85) 31,147 24,434 (99) 24,335 On demand accounts 8,384 (4) 8,380 7,252 (6) 7,246 Loans(1) 14,447 (81) 14,366 12,267 (93) 12,174 Repurchase agreements 8,401 8,401 4,915 4,915 Loans and advances to customers 917,049 (16,908) 900,141 876,712 (17,512) 859,200 On demand accounts 59,558 (2,720) 56,838 46,733 (2,752) 43,981 Loans to customers(2) 804,734 (12,941) 791,793 780,638 (13,593) 767,045 Finance leases 52,268 (1,247) 51,021 48,842 (1,167) 47,675 Repurchase agreements 489 489 499 499 Total loans and advances at amortised cost 948,281 (16,993) 931,288 901,146 (17,611) 883,535 Loans and advances to credit institutions include term deposits made with central banks. Of which EUR 352 million in discounts for mortgage loans in Swiss franc or indexed to the Swiss franc in Poland at 31 December 2024 compared with EUR 480 million at 31 December 2023 and EUR 47 million in provisions for foreign currency loans issued by BNP Paribas Personal Finance at 31 December 2024 compared with EUR 255 million at 31 December 2023. ➤Contractual maturities of finance leases In millions of euros, at 31 December 2024 31 December 2023 Gross investment 57,602 53,562 Receivable within 1 year 17,772 15,771 Receivable after 1 year but within 5 years 34,434 32,539 Receivable beyond 5 years 5,396 5,252 Unearned interest income (5,334) (4,720) Net investment before impairment 52,268 48,842 Receivable within 1 year 15,858 14,057 Receivable after 1 year but within 5 years 31,481 29,999 Receivable beyond 5 years 4,929 4,786 Impairment provisions (1,247) (1,167) Net investment after impairment 51,021 47,675 ➤Detail of debt securities by type of issuer In millions of euros, at 31 December 2024 31 December 2023 Gross value Impairment (note 2.g) Carrying amount Gross value Impairment (note 2.g) Carrying amount Governments 69,172 (31) 69,141 62,659 (11) 62,648 Other public administration 25,709 (2) 25,707 16,288 (2) 16,286 Credit institutions 14,743 (2) 14,741 10,318 (2) 10,316 Others 37,539 (153) 37,386 32,000 (89) 31,911 Total debt securities at amortised cost 147,163 (188) 146,975 121,265 (104) 121,161 ➤Detail of financial assets at amortised cost by stage In millions of euros, at 31 December 2024 31 December 2023 Gross Value Impairment (note 2.g) Carrying amount Gross Value Impairment (note 2.g) Carrying amount Loans and advances to credit institutions 31,232 (85) 31,147 24,434 (99) 24,335 Stage 1 30,998 (8) 30,990 23,673 (19) 23,654 Stage 2 157 (6) 151 679 (13) 666 Stage 3 77 (71) 6 82 (67) 15 Loans and advances to customers 917,049 (16,908) 900,141 876,712 (17,512) 859,200 Stage 1 821,576 (1,762) 819,814 777,190 (1,906) 775,284 Stage 2 69,649 (1,904) 67,745 74,214 (2,399) 71,815 Stage 3 25,824 (13,242) 12,582 25,308 (13,207) 12,101 Debt securities 147,163 (188) 146,975 121,265 (104) 121,161 Stage 1 144,987 (15) 144,972 120,991 (12) 120,979 Stage 2 1,911 (28) 1,883 94 (5) 89 Stage 3 265 (145) 120 180 (87) 93 Total financial assets at amortised cost 1,095,444 (17,181) 1,078,263 1,022,411 (17,715) 1,004,696 4.fImpaired financial assets (stage 3) The following tables present the carrying amounts of impaired financial assets carried at amortised cost and of impaired financing and guarantee commitments, as well as related collateral and other guarantees. The amounts shown for collateral and other guarantees correspond to the lower of the value of the collateral or other guarantee and the value of the secured assets. In millions of euros, at 31 December 2024 Impaired financial assets (Stage 3) Collateral received Gross value Impairment Net Loans and advances to credit institutions (note 4.e) 77 (71) 6 Loans and advances to customers (note 4.e) 25,824 (13,242) 12,582 8,044 Debt securities at amortised cost (note 4.e) 265 (145) 120 Total amortised-cost impaired assets (stage 3) 26,166 (13,458) 12,708 8,044 Financing commitments given 1,384 (95) 1,289 554 Guarantee commitments given 1,054 (223) 831 195 Total off-balance sheet impaired commitments (stage 3) 2,438 (318) 2,120 749 In millions of euros, at 31 December 2023 Impaired financial assets (Stage 3) Collateral received Gross value Impairment Net Loans and advances to credit institutions (note 4.e) 82 (67) 15 Loans and advances to customers (note 4.e) 25,308 (13,207) 12,101 7,720 Debt securities at amortised cost (note 4.e) 180 (87) 93 Total amortised-cost impaired assets (stage 3) 25,570 (13,361) 12,209 7,720 Financing commitments given 889 (96) 793 263 Guarantee commitments given 769 (218) 551 135 Total off-balance sheet impaired commitments (stage 3) 1,658 (314) 1,344 398 The following table presents the changes in gross exposures of stage 3 assets (EU CR2): Gross value In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Impaired exposures (stage 3) at opening balance 25,570 25,517 Transfer to stage 3 9,163 8,632 Transfer to stage 1 or stage 2 (2,041) (2,166) Assets written off (4,101) (3,769) Other changes (2,425) (2,644) Impaired exposures (stage 3) at closing balance 26,166 25,570 4.gFinancial liabilities at amortised cost due to credit institutions and customers In millions of euros, at 31 December 2024 31 December 2023 Deposits from credit institutions 66,872 95,175 On demand accounts 10,608 10,770 Interbank borrowings(1) 33,753 54,825 Repurchase agreements 22,511 29,580 Deposits from customers 1,034,857 988,549 On demand deposits 562,520 542,133 Savings accounts 162,064 152,636 Term accounts and short-term notes 307,335 292,491 Repurchase agreements 2,938 1,289 Interbank borrowings from credit institutions include term borrowings from central banks. At 31 December 2024, no TLTRO III borrowings were recorded on the balance sheet compared with EUR 18 billion at 31 December 2023 (see note 2.a Net Interest Income). 4.hDebt securities and subordinated debt This note covers all issued debt securities and subordinated debt measured at amortised cost and designated as at fair value through profit or loss. ➤Debt securities designated at fair value through profit or loss (note 4.a) Issuer/Issue date In millions of euros, at Currency Original amount in foreign currency (millions) Date of call or interest step-up Interest rate Interest rate reset Conditions precedent for coupon payment(1) 31 December 2024 31 December 2023 ISSUED DEBT SECURITIES AND SUBORDINATED DEBT 104,934 83,763 Debt securities 104,118 83,028 Subordinated debt 816 735 Redeemable subordinated debt (2) 18 18 Perpetual subordinated debt 798 717 BNP Paribas Fortis Dec. 2007(3) EUR 3,000 Dec.-14 3-month Euribor +200 bp A 798 717 Conditions precedent for coupon payment: A Coupon payments are halted should the issuer have insufficient capital or the underwriters become insolvent or when the dividend declared for Ageas shares falls below a certain threshold. After agreement from the banking supervisory authority and at the issuer’s initiative, redeemable subordinated debt issues may contain a call provision authorising the Group to redeem the securities prior to maturity by repurchasing them in the stock market, via public tender offers, or in the case of private placements over the counter. Debt issued by BNP Paribas SA or foreign subsidiaries of the Group via placements in the international markets may be subject to early redemption of the capital and early payment of interest due at maturity at the issuer’s discretion on or after a date stipulated in the issue particulars (call option), or in the event that changes in the applicable tax rules oblige the BNP Paribas Group issuer to compensate debt-holders for the consequences of such changes. Redemption may be subject to a notice period of between 15 and 60 days, and is in all cases subject to approval by the banking supervisory authorities. Convertible And Subordinated Hybrid Equity-linked Securities (CASHES) issued by BNP Paribas Fortis (previously Fortis Banque) in December 2007. The CASHES are perpetual securities but may be exchanged for Ageas (previously Fortis SA/NV) shares at the holder’s sole discretion at a price of EUR 239.40. However, as of 19 December 2014, the CASHES will be automatically exchanged into Ageas shares if their price is equal to or higher than EUR 359.10 for twenty consecutive trading days. The principal amount will never be redeemed in cash. The rights of the CASHES holders are limited to the Ageas shares held by BNP Paribas Fortis and pledged to them. Ageas and BNP Paribas Fortis have entered into a Relative Performance Note (RPN) contract, the value of which varies contractually so as to offset the impact on BNP Paribas Fortis of the relative difference between changes in the value of the CASHES and changes in the value of the Ageas shares. Since 1 January 2022, the liability is no longer eligible to prudential own funds. ➤Debt securities measured at amortised cost Issuer/Issue date In millions euros, at Currency Original amount in foreign currency (millions) Date of call or interest step-up Interest rate Interest rate reset Conditions precedent for coupon payment(1) 31 December 2024 31 December 2023 Debt securities 198,119 191,482 Debt securities in issue with an initial maturity of less than one year 82,327 75,743 Negotiable debt securities 82,327 75,743 Debt securities in issue with an initial maturity of more than one year 115,792 115,739 Negotiable debt securities 31,109 30,592 Bonds 84,683 85,147 Subordinated debt 31,799 24,743 Redeemable subordinated debt (2) 26,073 21,594 Undated subordinated notes 5,460 2,920 Contingent convertible bonds recognised as Tier 1 capital 3,851 1,352 BNP Paribas SA Aug. 23(5) USD 1,500 Aug.-28 8.5% CMT + 4.354% E 1,449 1,352 BNP Paribas SA Feb. 24(5) USD 1,500 Aug.-31 8.000% CMT + 3.727% E 1,449 - BNP Paribas SA Sept. 24(5) USD 1,000 Sept.-34 7.375% CMT +3.535% E 953 - Other perpetual subordinated notes 1,609 1,568 BNP Paribas SA Oct. 85(3) EUR 305 - TMO - 0.25% - B 254 254 BNP Paribas SA Sept. 86 (4) USD 500 - Libor 6 month + 0.075% - C - 248 BNP Paribas Cardif Nov. 14 EUR 1,000 Nov.-25 4.032% Euribor 3 month + 393 bp D 1,000 998 BMCI Feb. 23 MAD 750 Feb.-28 3.9% 2.5%-2.6% F 71 68 TEB Sept. 24 USD 300 sept.-29 9.375% CMT +5.758% G 284 - Perpetual participating notes 225 225 BNP Paribas SA July 84(3)(6) EUR 337 - (7) - 219 219 Others 6 6 Expenses and commission, related debt 41 4 Conditions precedent for coupon payment: B - Payment of the interest is mandatory, unless the Board of directors decides to postpone these payments after the Shareholders’ General Meeting has officially noted that there is no income available for distribution, where this occurs within the 12-month period preceding the due date for payment of the interest. Interest payments are cumulative and are payable in full once dividend payments resume. C - Payment of the interest is mandatory, unless the Board of directors decides to postpone these payments after the Shareholders’ General Meeting has validated the decision not to pay out a dividend, where this occurs within the 12-month period preceding the due date for payment of the interest. Interest payments are cumulative and are payable in full once dividend payments resume. The bank has the option of resuming payment of interest arrears, even where no dividend is paid out. D - Payment of the interest is mandatory, except for cases of regulatory deficiency, in agreement with the regulator, or of suspension of payments. Interest payments are cumulative and are payable in full, once coupon payments resume, or, if these events occur before, when the issuance is redeemed or when the issuer is liquidated. E - Payment of the interest is at full discretion and could be cancelled in whole or in part if the relevant regulator notifies based on its assessment of the financial and solvency situation of the issuer. Interest amounts on the Notes will be non-cumulative, once coupon payments resume. F - Payment of interest is made on a discretionary basis and may be fully or partially cancelled with the prior approval of Bank Al-Maghrib for an indefinite period and on a non-cumulative basis to meet its obligations. Interest amounts on bonds will not be cumulative when coupon payments resume. G - Payment of interest is discretionary and may be fully or partially cancelled at any time and for any reason for an indefinite period. Interest amounts on bonds will not be cumulative when coupon payments resume. See reference relating to “Debt securities at fair value through profit or loss”. These securities are no longer eligible to prudential own funds since 31 December 2023. This instrument has been fully redeemed on 28 March 2024. The instruments issued by BNP Paribas SA in August 2023 and February and September 2024 are contingent convertible securities classified as financial liabilities in accounting and eligible to Additional Tier 1 capital (see note 1.f.8). The distribution from these instruments is recognised directly as a reduction from equity. The participating notes issued by BNP Paribas SA may be repurchased as provided for in the law of 3 January 1983. The number of notes in the market is 1,434,092. Depending on net income subject to a minimum of 85% of the TMO rate and a maximum of 130% of the TMO rate. 4.iCurrent and deferred taxes In millions of euros, at 31 December 2024 31 December 2023 Current taxes 2,836 2,942 Deferred taxes 3,379 3,614 Current and deferred tax assets 6,215 6,556 Current taxes 2,346 2,725 Deferred taxes 1,311 1,096 Current and deferred tax liabilities 3,657 3,821 Change in deferred tax by nature over the period: In millions of euros, at 31 December 2023 Changes recognised in profit or loss Changes recognised in equity that may be reclassified to profit or loss Changes recognised in equity that will not be reclassified to profit or loss Effects of exchange rates, consolidation scope and other movements 31 December 2024 Financial instruments (2,067) (862) 150 159 97 (2,523) Provisions for employee benefit obligations 897 252 (47) 18 1,120 Unrealised finance lease reserve (599) (44) 37 (606) Credit risk impairment 2,352 (301) (32) 2,019 Tax loss carryforwards 732 14 340 1,086 Other items 1,203 (47) (184) 972 Net deferred taxes 2,518 (988) 150 112 276 2,068 Deferred tax assets 3,614 3,379 Deferred tax liabilities (1,096) (1,311) In order to determine the amount of the tax loss carryforwards recognised as assets, the Group conducts every year a specific review for each relevant entity based on the applicable tax regime, notably incorporating any time limit rules, and a realistic projection of their future revenue and charges in line with their business plan. The vast majority of tax losses are carried forward indefinitely. The expected recovery period for the related deferred taxes is 5 years. Unrecognised deferred tax assets totalled EUR 658 million at 31 December 2024 (of which EUR 585 million of tax loss carryforwards) compared with EUR 541 million at 31 December 2023 (of which EUR 491 million of tax loss carryforwards). 4.jAccrued income/expense and other assets/liabilities In millions of euros, at 31 December 2024 31 December 2023 Guarantee deposits and bank guarantees paid 125,090 119,187 Collection accounts 460 773 Accrued income and prepaid expenses 5,686 5,400 Other debtors and miscellaneous assets 42,911 45,398 Total accrued income and other assets 174,147 170,758 Guarantee deposits received 86,113 87,612 Collection accounts 2,959 3,124 Accrued expense and deferred income 8,498 8,265 Lease liabilities 2,848 3,058 Other creditors and miscellaneous liabilities 36,537 41,614 Total accrued expense and other liabilities 136,955 143,673 4.kEquity-method investments Cumulated financial information of associates and joint ventures is presented in the following table: In millions of euros Year to 31 Dec. 2024 31 December 2024 Year to 31 Dec. 2023 31 December 2023 Share of net income Share of changes in assets and liabilities recognised directly in equity Share of net income and changes in assets and liabilities recognised directly in equity Equity- method investments Share of net income Share of changes in assets and liabilities recognised directly in equity Share of net income and changes in assets and liabilities recognised directly in equity Equity- method investments Joint ventures (10) 225 215 1,960 (49) (64) (113) 1,784 Associates(1) 711 308 1,019 5,902 642 16 658 4,967 Total equity-method entities 701 533 1,234 7,862 593 (48) 545 6,751 Including controlled but non-material entities consolidated under the equity method. Financing and guarantee commitments given by the Group to joint ventures are listed in note 8.i Other related parties. The carrying amount of the Group’s investment in the main joint ventures and associates is presented in the following table: In millions of euros, at Country of registration Activity Interest (%) 31 December 2024 31 December 2023 Joint ventures Union de Creditos Inmobiliarios Spain Retail mortgage 50% 233 256 BoB Cardif Life Insurance China Life Insurance 50% 454 240 Genius Auto Finance Co Ltd China Specialised loans 25% 331 290 Pinnacle Pet Holding Ltd United Kingdom Insurance 25% 407 393 Associates BON BNPP Consumer Finance Co Ltd China Specialised loans 32% 256 223 AG Insurance Belgium Insurance 25% 593 462 Bank of Nanjing China Retail Banking 16% 3,661 2,813 Allfunds Group Plc United Kingdom Financial Services 12% 283 312 4.lProperty, plant, equipment and intangible assets used in operations, investment property In millions of euros, at 31 December 2024 31 December 2023 Gross value Accumulated depreciation, amortisation and impairment Carrying amount Gross value Accumulated depreciation, amortisation and impairment Carrying amount Investment property 855 (331) 524 785 (299) 486 Land and buildings 11,049 (4,758) 6,291 11,317 (4,633) 6,684 Equipment, furniture and fixtures 7,067 (5,468) 1,599 7,007 (5,321) 1,686 Plant and equipment leased as lessor under operating leases 51,333 (11,021) 40,312 45,720 (10,567) 35,153 Other property, plant and equipment 2,924 (1,336) 1,588 2,338 (1,125) 1,213 Property, plant and equipment 72,373 (22,583) 49,790 66,382 (21,646) 44,736 Of which right of use 5,786 (3,387) 2,399 5,978 (3,322) 2,656 Property, plant and equipment and investment property 73,228 (22,914) 50,314 67,167 (21,945) 45,222 Purchased software 4,135 (3,407) 728 3,853 (3,145) 708 Internally developed software 6,752 (5,137) 1,615 6,908 (5,398) 1,510 Other intangible assets 2,696 (647) 2,049 2,547 (623) 1,924 Intangible assets 13,583 (9,191) 4,392 13,308 (9,166) 4,142 Investment property Land and buildings leased by the Group as lessor under operating leases are recorded in “Investment property”. The estimated fair value of investment property accounted for at amortised cost at 31 December 2024 is EUR 718 million, compared with EUR 702 million at 31 December 2023. Operating leases Operating leases and investment property transactions are in certain cases subject to agreements providing for the following minimum future payments: In millions of euros, at 31 December 2024 31 December 2023 Future minimum lease payments receivable under non-cancellable leases 12,142 10,718 Payments receivable within 1 year 5,131 4,570 Payments receivable after 1 year but within 5 years 6,987 6,105 Payments receivable beyond 5 years 24 43 Future minimum lease payments receivable under non-cancellable leases are payments that the lessee is required to make during the lease term. At 31 December 2024, commitments to purchase vehicles and equipment intended for operating leasing amounted to EUR 5.2 billion. Intangible assets Other intangible assets include leasehold rights, goodwill and trademarks acquired by the Group. Amortisation and provision Net depreciation and amortisation expense for the year ended 31 December 2024 was EUR 2,356 million, compared with EUR 2,224 million for the year ended 31 December 2023. The net increase in impairment on property, plant, equipment and intangible assets taken to the profit and loss account for the year ended 31 December 2024 amounted to EUR 34 million, compared with EUR 19 million for the year ended 31 December 2023. 4.mGoodwill In millions of euros, at 31 December 2024 31 December 2023 Carrying amount at start of period 5,549 5,294 Acquisitions 130 260 Divestments (157) (7) Impairment recognised during the period Exchange rate adjustments 28 2 Carrying amount at end of period 5,550 5,549 Gross value 8,636 8,639 Accumulated impairment recognised at the end of period (3,086) (3,090) Goodwill by cash-generating unit is as follows: In millions of euros Carrying amount Recognised impairment Acquisitions 31 December 2024 31 December 2023 Year to 31 Dec. 2024 Year to 31 Dec. 2023 31 December 2024 31 December 2023 Corporate & Institutional Banking 1,275 1,275 - - - 67 Global Banking 280 277 Global Markets 534 549 67 Securities Services 461 449 Commercial, Personal Banking & Services 2,954 3,058 - - 30 166 Arval 641 633 23 Leasing Solutions 147 147 Personal Finance(1) 1,360 1,432 30 143 Personal Investors(1) 488 562 New Digital Businesses 253 220 Commercial Bank in Belgium 34 34 Other 31 30 Investment & Protection Services 1,318 1,213 - - 100 27 Asset Management 202 197 9 Insurance 397 299 100 18 Real Estate 407 404 Wealth Management 312 313 Other Activities 3 3 - - - - Total goodwill 5,550 5,549 - - 130 260 Negative goodwill 241 Change in value of goodwill recognised in the profit and loss account 241 - During the year ended 2024, the goodwill relating to Cetelem SA de CV and Sharekhan (-EUR 84 million and -EUR 73 million respectively) was removed following their disposal from the Personal Finance and Personal Investors cash-generating units. The Group carried out a detailed analysis of goodwill to identify whether impairments were necessary in connection with the the current economic situation. This analysis is based in particular on the assumptions of economic scenarios (see note 2.g). The cash-generating units (CGU) to which goodwill is allocated are: Global Banking: Global Banking combines financing solutions to corporates, all transaction banking products, corporate finance advisory services in mergers and acquisitions and primary equity activities. Global Markets: Global Markets provides investment, hedging, financing and research services across asset classes, to corporate and institutional clients – as well as private and retail banking networks. The sustainable, long-term business model of Global Markets connects clients to capital markets throughout EMEA (Europe, Middle East & Africa), Asia Pacific and the Americas, with innovative solutions and digital platforms. Global Markets includes activities of Global Macro (Foreign Exchange, Global Rates, Local Markets, Commodity Derivatives), Global Credit (DCM Bonds, Credit, Securitisation) and Global Equities (Equities, Cash Equities and Prime Services). Securities Services: Securities Services provides integrated solutions for all actors involved in the investment cycle, sell side, buy side and issuers. Arval: specialist in vehicle long-term leasing and mobility, Arval offers corporates (from multinational companies to small and medium companies), employees and individuals tailored solutions that optimise their mobility. Leasing Solutions: BNP Paribas Leasing Solutions uses a multi-channel partnership approach (sales via referrals, partnerships, direct sales and banking networks) to offer corporate and small business clients an array of leasing and rental solutions, ranging from equipment financing to fleet outsourcing. Personal Finance: BNP Paribas Personal Finance is the Group’s consumer credit specialist. Through its brands and partnerships such as Cetelem, Cofinoga, Findomestic, AlphaCredit or Stellantis Financial Services, Personal Finance provides a full range of consumer loans at point of sale (retail stores and car dealerships) or through its customer relation centres and websites and mobile applications. The business line, in some countries outside the domestic markets, is integrated into the BNP Paribas Group’s retail banking. Personal Investors: BNP Paribas Personal Investors is a digital specialist of banking and investment services. Based in Germany, it provides a wide range of banking, savings and long and short-term investment services to individual clients via the internet, and also on the phone and face-to-face. In addition to its activities destined to private clients, Personal Investors offers its services and IT platform to independent financial consultants, asset managers and FinTechs. New Digital Businesses: they include the account management service “Nickel”, 50% of Floa since January 2022 and 50% of Kantox since July 2023. Nickel is open to all, without any conditions regarding income, deposits or personal wealth, and without any overdraft or credit facility. This service, which operates in real time using the latest technology, is available through over 11,500 points of sale in France, Spain, Belgium, Portugal and Germany. Floa offers consumers split payments, mini-loans and bank cards. The company is a partner of major e-retailers, key players in travel and FinTechs, for which it develops tailor-made services. Already leader in France in payment facilities, Floa is present in Spain, Belgium, Italy, Germany, Netherlands and Portugal. Kantox provides currency management automation software, enabling companies to effectively handle the entire currency management stream and unlock growth opportunities. Asset Management: BNP Paribas Asset Management is the dedicated asset management business line of the BNP Paribas Group. It offers services to individual investors (through internal distributors – BNP Paribas private and retail banking – and external distributors), to corporates and to institutional investors (insurance companies, retirement funds, official institutions). Its aim is to offer an added value based on a broad range of expertise throughout its active management of equities and bonds, its activity of private debt, private asset and real asset management and its multi-asset, quantitative and solutions division. Insurance: BNP Paribas Cardif, a world leader in personal insurance, designs, develops and markets savings and protection products and services to protect individuals, their projects and their assets. BNP Paribas Cardif also offers products in damage insurance, health insurance, budget insurance, revenue and means of payment insurance, unexpected event protection (unemployment, accident, death, theft or breakage) or the protection of private digital data to meet the evolution of customers’ needs. Real Estate: BNP Paribas Real Estate serves the needs of its clients, whether institutional investors, corporates, public entities or individuals, at all stages of the life cycle of their property (from the conception of a construction project to its daily management). The Group is involved in property development, investment management as well as property management, brokerage, consulting and valuation services. Wealth Management: Wealth Management encompasses the private banking activities of BNP Paribas and serves a clientele of wealthy individuals, shareholder families and entrepreneurs seeking a one-stop shop for all their wealth management and financial needs. Commercial & Personal Banking In Belgium: Commercial & Personal Banking in Belgium activities comprise banking services to a range of client types, including individual customers, self-employed people and those in the liberal professions, small and medium-sized companies, local businesses, corporate clients and non-profit organisations. Goodwill impairment tests are based on three different methods: observation of transactions related to comparable businesses, share price data for listed companies with comparable businesses, and discounted future cash flows (DCF). If one of the two comparables-based methods indicates the need for impairment, the DCF method is used to validate the results and determine the amount of impairment required. The DCF method is based on a number of assumptions in terms of future revenues, expenses and cost of risk (cash flows) based on medium-term business plans over a period of five years. Cash flow projections beyond the 5-year forecast period are based on a growth rate to perpetuity and are normalised when the short-term environment does not reflect the normal conditions of the economic cycle. The key parameters which are sensitive to the assumptions made are the cost of capital, the cost/income ratio, the cost of risk and the growth rate to perpetuity. Cost of capital is determined on the basis of a risk-free rate, an observed market risk premium weighted by a risk factor based on comparables specific to each cash-generating unit. The values of these parameters are obtained from external information sources. Allocated capital is determined for each cash-generating unit based on the “Common Equity Tier One” regulatory requirements for the main legal entity to which the cash-generating unit belongs, with a minimum of 7%. The infinite growth rate applied is 2%. It is calculated based on data provided by private companies specialised in macroeconomic research and analysis. The following table shows the sensitivity of the valuation of the Personal Finance cash generating unit to changes in the value of parameters used in the DCF calculation: the cost of capital after tax, the cost/income ratio in terminal value, the cost of risk in terminal value and the growth rate to perpetuity. ➤Sensitivity of the main goodwill valuations to a 10-basis point change in the cost of capital, a 100-basis point change in the cost/income ratio in terminal value, a 5% change of the cost of risk in terminal value and a 50-basis point change in the growth rate to perpetuity In millions of euros Personal Finance Cost of capital 9.4% Adverse change (+10 basis points) (192) Positive change (-10 basis points) 198 Cost/income ratio 46.2% Adverse change (+100 basis points) (453) Positive change (-100 basis points) 453 Cost of risk (1,762) Adverse change (+5%) (607) Positive change (-5%) 607 Growth rate to perpetuity 2.0% Adverse change (-50 basis points) (293) Positive change (+50 basis points) 335 Concerning the cash-generating unit Personal Finance, there would be no need to depreciate even by using, for the impairment test, the four most unfavourable variations in the table. 4.nProvisions for contingencies and charges ➤Provisions for contingencies and charges by type In millions of euros, at 31 December 2023 Net additions to provisions Provisions used Changes in value recognised directly in equity Effect of movements in exchange rates and other movements 31 December 2024 Provisions for employee benefits 6,509 1,414 (1,307) (182) 109 6,543 of which post-employment benefits (note 7.b) 3,198 205 (277) (175) 46 2,997 of which post-employment healthcare benefits (note 7.b) 78 7 (3) (7) 75 of which provision for other long-term benefits (note 7.c) 1,571 491 (382) 29 1,709 of which provision for voluntary departure, early retirement plans, and headcount adaptation plan (note 7.d) 482 65 (216) (3) 328 of which provision for share-based payments (note 7.e) 1,180 646 (429) 37 1,434 Provisions for home savings accounts and plans 48 (13) 35 Provisions for credit commitments (note 2.g) 1,270 (145) (39) (31) 1,055 Provisions for litigations(1) 1,005 193 (283) (10) 905 Other provisions for contingencies and charges 1,686 148 (614) 48 1,268 Total provisions for contingencies and charges 10,518 1,597 (2,243) (182) 116 9,806 Of which EUR 366 million in provisions for mortgage loans in Swiss franc or indexed to the Swiss franc in Poland at 31 December 2024, compared with EUR 265 million at 31 December 2023 and EUR 38 million in provisions for foreign currency loans issued by BNP Paribas Personal Finance at 31 December 2024, compared with EUR 180 million at 31 December 2023. In 2023, the Group modified its accounting policy relating to the risk of loss of cash flows on financial instruments granted that are not linked to the counterparty’s default, such as legal risks calling into question the validity or enforceability of such contracts (see note 2.h). The effect on expected cash flows due to these risks is now considered as a change in the contract’s cash flows, in accordance with IFRS 9 B5.4.6, and is recorded as a decrease in the gross value of the asset. It was previously recognised separately in accordance with IAS 37 in “Provisions for risks and charges”. Expected losses on derecognised financial instruments, as is the case when loans have been repaid, continue to be recognised in accordance with IAS 37. ➤Provisions and discount for home savings accounts and plans In millions of euros, at 31 December 2024 31 December 2023 Deposits collected under home savings accounts and plans 12,636 14,606 of which deposits collected under home savings plans 10,504 12,426 Aged more than 10 years 7,131 6,695 Aged between 4 and 10 years 2,610 4,926 Aged less than 4 years 763 805 Outstanding loans granted under home savings accounts and plans 18 9 of which loans granted under home savings plans 14 4 Provisions and discount recognised for home savings accounts and plans 35 48 provisions recognised for home savings plans 24 33 provisions recognised for home savings accounts 11 15 discount recognised for home savings accounts and plans - - 4.oOffsetting of financial assets and liabilities The following tables present the amounts of financial assets and liabilities before and after offsetting. This information, required by IFRS 7, aims to enable the comparability with the accounting treatment applicable in accordance with generally accepted accounting principles in the United States (US GAAP), which are less restrictive than IAS 32 as regards offsetting. “Amounts set off on the balance sheet” have been determined according to IAS 32. Thus, a financial asset and a financial liability are offset and the net amount presented on the balance sheet when, and only when, the Group has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously. Amounts set off derive mainly from repurchase agreements and derivative instruments traded with clearing houses. The “impacts of master netting agreements and similar agreements” are relative to outstanding amounts of transactions within an enforceable agreement, which do not meet the offsetting criteria defined by IAS 32. This is the case of transactions for which offsetting can only be performed in case of default, insolvency or bankruptcy of one of the contracting parties. “Financial instruments given or received as collateral” include guarantee deposits and securities collateral recognised at fair value. These guarantees can only be exercised in case of default, insolvency or bankruptcy of one of the contracting parties. Regarding master netting agreements, the guarantee deposits received or given in compensation for the positive or negative fair values of financial instruments are recognised in the balance sheet in accrued income or expenses and other assets or liabilities. In millions of euros, at 31 December 2024 Gross amounts of financial assets Gross amounts set off on the balance sheet Net amounts presented on the balance sheet Impact of Master Netting Agreements (MNA) and similar agreements Financial instruments received as collateral Net amounts Assets Financial instruments at fair value through profit or loss Securities 267,357 267,357 267,357 Loans and repurchase agreements 429,312 (203,613) 225,699 (28,506) (178,752) 18,441 Derivative financial instruments (including derivatives used for hedging purposes) 986,171 (642,689) 343,482 (245,188) (52,223) 46,071 Financial assets at amortised cost 1,078,804 (541) 1,078,263 (1,194) (7,485) 1,069,584 of which repurchase agreements 9,431 (541) 8,890 (1,194) (7,485) 211 Accrued income and other assets 174,147 174,147 (43,944) 130,203 of which guarantee deposits paid 125,090 125,090 (43,944) 81,146 Other assets not subject to offsetting 615,960 615,960 615,960 TOTAL ASSETS 3,551,751 (846,843) 2,704,908 (274,888) (282,404) 2,147,616 In millions of euros, at 31 December 2024 Gross amounts of financial liabilities Gross amounts set off on the balance sheet Net amounts presented on the balance sheet Impact of Master Netting Agreements (MNA) and similar agreements Financial instruments given as collateral Net amounts Liabilities Financial instruments at fair value through profit or loss Securities 79,958 79,958 79,958 Deposits and repurchase agreements 508,430 (203,613) 304,817 (27,351) (262,872) 14,594 Issued debt securities 104,934 104,934 104,934 Derivative financial instruments (including derivatives used for hedging purposes) 981,506 (642,689) 338,817 (245,188) (46,548) 47,081 Financial liabilities at amortised cost 1,102,270 (541) 1,101,729 (2,349) (22,573) 1,076,807 of which repurchase agreements 25,990 (541) 25,449 (2,349) (22,573) 527 Accrued expense and other liabilities 136,955 136,955 (44,223) 92,732 of which guarantee deposits received 86,113 86,113 (44,223) 41,890 Other liabilities not subject to offsetting 503,557 503,557 503,557 TOTAL LIABILITIES 3,417,610 (846,843) 2,570,767 (274,888) (376,216) 1,919,663 In millions of euros, at 31 December 2023 Gross amounts of financial assets Gross amounts set off on the balance sheet Net amounts presented on the balance sheet Impact of Master Netting Agreements (MNA) and similar agreements Financial instruments received as collateral Net amounts Assets Financial instruments at fair value through profit or loss Securities 211,634 211,634 211,634 Loans and repurchase agreements 462,109 (234,934) 227,175 (28,383) (181,529) 17,263 Derivative financial instruments (including derivatives used for hedging purposes) 890,604 (576,833) 313,771 (213,517) (51,325) 48,929 Financial assets at amortised cost 1,005,096 (400) 1,004,696 (676) (4,325) 999,695 of which repurchase agreements 5,814 (400) 5,414 (676) (4,325) 413 Accrued income and other assets 170,758 170,758 (40,664) 130,094 of which guarantee deposits paid 119,187 119,187 (40,664) 78,523 Other assets not subject to offsetting 663,465 663,465 663,465 TOTAL ASSETS 3,403,666 (812,167) 2,591,499 (242,576) (277,843) 2,071,080 In millions of euros, at 31 December 2023 Gross amounts of financial liabilities Gross amounts set off on the balance sheet Net amounts presented on the balance sheet Impact of Master Netting Agreements (MNA) and similar agreements Financial instruments given as collateral Net amounts Liabilities Financial instruments at fair value through profit or loss Securities 104,910 104,910 104,910 Deposits and repurchase agreements 508,548 (234,934) 273,614 (26,113) (231,737) 15,764 Issued debt securities 83,763 83,763 83,763 Derivative financial instruments (including derivatives used for hedging purposes) 893,736 (576,833) 316,903 (213,517) (41,756) 61,630 Financial liabilities at amortised cost 1,084,124 (400) 1,083,724 (2,946) (26,145) 1,054,633 of which repurchase agreements 31,269 (400) 30,869 (2,946) (26,145) 1,778 Accrued expense and other liabilities 143,673 143,673 (46,631) 97,042 of which guarantee deposits received 87,612 87,612 (46,631) 40,981 Other liabilities not subject to offsetting 456,045 456,045 456,045 TOTAL LIABILITIES 3,274,799 (812,167) 2,462,632 (242,576) (346,269) 1,873,787 4.pTransfers of financial assets Financial assets that have been transferred but not derecognised by the Group are mainly composed of securities sold temporarily under repurchase agreements or securities lending transactions, as well as securitised assets. The liabilities associated to securities temporarily sold under repurchase agreements consist of debts recognised under the “repurchase agreements” heading. The liabilities associated to securitised assets consist of the securitisation notes purchased by third parties. ➤Securities lending, repurchase agreements and other transactions In millions of euros, at 31 December 2024 31 December 2023 Carrying amount of transferred assets Carrying amount of associated liabilities Carrying amount of transferred assets Carrying amount of associated liabilities Securities lending operations Financial instruments at fair value through profit or loss 11,034 7,565 Financial assets at amortised cost 85 474 Financial assets at fair value through equity 39 Repurchase agreements Financial instruments at fair value through profit or loss 59,543 59,543 49,747 49,700 Financial assets at amortised cost 2,009 2,009 5,949 5,949 Financial assets at fair value through equity 1,165 1,165 1,936 1,936 Financial investments of insurance activities 4,163 4,194 8,995 8,316 Total 77,999 66,911 74,705 65,901 ➤Securitisation transactions partially refinanced by external investors, whose recourse is limited to the transferred assets In millions of euros, at 31 December 2024 Carrying amount of transferred assets Carrying amount of associated liabilities Fair value of transferred assets Fair value of associated liabilities Net position Securitisation Financial assets at amortised cost 28,465 26,122 28,517 26,060 2,457 Total 28,465 26,122 28,517 26,060 2,457 In millions of euros, at 31 December 2023 Carrying amount of transferred assets Carrying amount of associated liabilities Fair value of transferred assets Fair value of associated liabilities Net position Securitisation Financial assets at amortised cost 27,995 26,355 28,032 26,278 1,754 Total 27,995 26,355 28,032 26,278 1,754 There have been no significant transfers leading to partial or full derecognition of the financial assets in which the Bank has a continuing involvement. Note 5Notes related to insurance activities 5.aNet income from insurance activities The various income and expenses of insurance contracts are broken down in the “Net income from insurance activities” as follows: “Insurance revenue” includes revenue from insurance activities related to groups of insurance contracts issued. Insurance revenue reflects the provision of services relating to a group of contracts in an amount corresponding to the consideration to which the insurer expects to be entitled in exchange for those services; “Insurance service expenses”: actual charges attributable to insurance contracts incurred over the period, changes related to past and current service, amortisation of acquisition costs, and the loss component for onerous contracts; “Investment return”; “Net finance income or expenses from insurance contracts” includes the change in the carrying amount of insurance contracts resulting from the undiscounting effect, and the financial risk including changes in financial assumptions. In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Insurance revenue 9,711 8,945 Insurance service expenses(1) (7,502) (6,786) Investment return 11,554 10,254 Net finance income or expenses from insurance contracts (11,367) (10,093) Net income from insurance activities 2,396 2,320 Insurance service expenses include attributable expenses which amounted to -EUR 4,125 million for the year ended 2024, compared with -EUR 3,723 million for the year ended 2023 (see note 5.b). Insurance service result “Insurance service result” includes: “Insurance revenue”: for contracts under the variable fee approach and under the building block approach, it represents the release of fulfilment insurance contracts cash flows over the period (excluding changes in investment component and the amount allocated to the loss component), change in the non-financial risk adjustment, amortisation of the contractual service margin for services provided over the period, the amount allocated for the amortisation of acquisition cost, and for the general measurement model specifically, experience adjustments related to premiums. For contracts under the variable fee approach, the amortisation of the margin on contractual services is determined after adjusting the difference between the real-world expected financial return and the risk-neutral projection. The main financial assumptions underlying the calculation of the real-world expected financial return are those adopted by the Group over the horizon of the strategic plan. Beyond this horizon, the interest rate and return assumptions used are determined in line with those underlying the risk-neutral projection. The recovery of insurance acquisition cash flows corresponds to the portion of the premiums that relate to recovering these cash flows and the same amount is recognised as an expense on the line “Amortisation of insurance acquisition cash flows”. For contracts under the simplified measurement model, revenue represents expected cash-flows over the period. “Insurance service expenses” includes incurred and past claims expenses of the period (excluding repayments of investment component) and other expenses that have been incurred related to insurance activities. Other insurance service expenses include the amortisation of insurance acquisition cash flows; changes that relate to past services and changes that relate to future services. This line also includes the operating expenses and depreciation and amortisation attributable to insurance contracts. “Net expenses from reinsurance contracts held” are service expenses from reinsurance net of amounts recovered from reinsurers. In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Contracts not measured under the premium allocation approach 5,551 5,435 Changes in the liability for remaining coverage 2,349 2,221 Change in the risk adjustment 133 122 Contractual service margin 1,908 1,825 Recovery of insurance acquisition cash flows 1,161 1,267 Contracts measured under the premium allocation approach 4,160 3,510 Insurance revenue 9,711 8,945 Incurred claims and expenses (4,077) (3,928) Amortisation of insurance acquisition cash flows (2,876) (2,612) Changes that relate to past service (42) 249 Loss component recognised in profit or loss (54) (62) Net expenses from reinsurance contracts held (453) (433) Insurance service expenses (7,502) (6,786) INSURANCE SERVICE RESULT 2,209 2,159 Financial result “Financial Result” includes “Investment return” and “Net finance income or expenses from insurance contracts.” “Investment return” includes net income from financial instruments and from investment properties. “Changes in fair value of underlying items of direct participation contracts” reflects the changes in value of underlying investments, for the amount which was not recognised directly in equity, and excluding the portion of these changes adjusting the contract service margin. “Other insurance financial expenses” measured under the general model and under the simplified model represent the change in technical liabilities arising from financial risks (discount rates variations, forex rates, time value and financial variations expected in the contracts) for the amount which was not recognised directly in equity. In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Net interest income 2,579 2,376 Net gain on financial instruments at fair value through equity (329) (432) Net gain on debt instruments (413) (445) Dividend income on equity instruments 84 13 Net gain on financial instruments at fair value through profit and loss 9,000 9,040 Cost of risk 3 24 Investment property income 374 (672) Share of earnings of equity-method investments 1 (6) Other expenses (74) (76) Investment return 11,554 10,254 Changes in fair value of underlying items of direct participation contracts (11,197) (9,940) Other insurance financial expenses (170) (153) Net finance income or expenses from insurance contracts (11,367) (10,093) FINANCIAL RESULT 187 161 5.bReconciliation of expenses by type and by function In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Commissions and other expenses (2,949) (2,494) Expenses incurred by internal distributors (see note 2.f) (1,085) (1,041) Salary and employee benefit expense (see note 7.a) (839) (778) Taxes and contributions (97) (86) Depreciation, amortisation and impairment of property, plant and equipment and intangible assets (173) (32) Total expenses by type (5,143) (4,431) Acquisition cash flows incurred over the period 3,062 2,562 Amortisation of acquisition cash flows (2,876) (2,612) Total expenses by type adjusted for acquisition cash flows amortisation effect (4,957) (4,481) Insurance contracts attributable expenses (see note 5.a) (4,125) (3,723) Insurance activities non attributable costs (see note 2.f) (832) (758) Acquisition cash flows over the period are deducted from total expenses and amortised over the coverage period of the contracts. 5.cInvestments, other assets and financial liabilities related to insurance activities ➤Investments and other assets related to insurance activities In millions of euros, at 31 December 2024 31 December 2023 Assets not representative of unit-linked insurance contracts Assets representative of unit-linked accounts Total Assets not representative of unit-linked insurance contracts Assets representative of unit-linked accounts Total Derivative financial instruments 1,731 1,731 1,658 1,658 Derivatives used for hedging purposes 74 74 36 36 Financial assets at fair value through profit or loss 61,465 111,954 173,419 64,492 92,266 156,758 Financial assets at fair value through equity 102,222 102,222 89,139 89,139 Financial assets at amortised cost 1,379 1,379 1,267 1,267 Investment properties 3,868 3,178 7,046 4,008 3,483 7,491 Equity-method investments 82 82 89 89 Assets related to insurance activities (see note 5.d) 896 896 660 660 Investments and other assets related to insurance activities 171,717 115,132 286,849 161,349 95,749 257,098 ➤Financial liabilities related to insurance activities “Financial liabilities related to insurance activities” includes unit-linked investment contracts without discretionary participating features. Those contracts are measured under IFRS 9 at fair value through profit or loss. In millions of euros, at 31 December 2024 31 December 2023 Derivative financial instruments 982 1,138 Derivatives used for hedging purposes 238 152 Deposit at fair value through profit or loss 960 1,063 Debt representative of shares of consolidated funds held by third parties 7,317 5,802 Investment contracts without discretionary participation feature – Unit-linked contracts 8,388 8,427 Other debts 1,922 1,657 Financial liabilities related to insurance activities 19,807 18,239 ➤Measurement of the fair value of financial instruments The criteria for allocating instruments to each level of the fair value hierarchy, the measurement methods, and the principles governing transfers between levels are those presented in note 4.d for the Group’s financial instruments. In millions of euros, at 31 December 2024 31 December 2023 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Financial assets designated as at fair value through profit or loss 110,018 47,346 16,055 173,419 85,585 56,294 14,879 156,758 Equity instruments 102,824 31,996 15,772 150,592 79,269 41,846 14,779 135,894 Debt securities 7,194 14,827 218 22,239 6,316 13,740 41 20,097 Loans 523 65 588 708 59 767 Financial assets at fair value through equity 89,003 13,214 5 102,222 81,018 8,106 15 89,139 Equity instruments 1,729 1,729 646 646 Debt securities 87,274 13,214 5 100,493 80,372 8,106 15 88,493 Derivative financial instruments - 1,772 33 1,805 2 1,678 14 1,694 FINANCIAL ASSETS MEASURED AT FAIR VALUE 199,021 62,332 16,093 277,446 166,605 66,078 14,908 247,591 Financial liabilities designated at fair value through profit or loss 4,666 10,866 1,133 16,665 2,625 12,039 628 15,292 Deposit at fair value through profit or loss 960 960 1,063 1,063 Debt representative of shares of consolidated funds held by third parties 4,666 2,352 299 7,317 2,625 3,177 5,802 Investment contracts without discretionary participation feature - Unit-linked contracts 7,554 834 8,388 7,799 628 8,427 Derivative financial instruments - 1,198 22 1,220 127 977 186 1,290 FINANCIAL LIABILITIES MEASURED AT FAIR VALUE 4,666 12,064 1,155 17,885 2,752 13,016 814 16,582 Level 1: includes notably equity securities and liquid bonds, derivative instruments traded on organised markets (futures, options, etc.), shares of funds and UCITS, for which the net asset value is calculated on a daily basis. Level 2: includes equity securities, government bonds, corporate debt securities, shares of funds and UCITS, and over-the-counter derivatives. Level 3: includes units of funds and unlisted equity shares which are mainly company shares and venture capital. ➤Table of movements in Level 3 financial instruments For Level 3 financial instruments, the following movements occurred during the period: In millions of euros Financial assets Financial liabilities Financial instruments at fair value through profit or loss Financial assets at fair value through equity Total Financial instruments at fair value through profit or loss Total At 31 December 2023 14,893 15 14,908 (814) (814) Purchases 2,209 2,209 Sales (2,325) (2,325) Settlements 40 (3) 37 (110) (110) Transfers to Level 3 463 463 Transfers from Level 3 (141) (8) (149) Gains recognised in profit or loss 187 187 (226) (226) Items related to exchange rate movement and changes in scope of consolidation 762 762 (5) (5) Changes in fair value of assets and liabilities recognised in equity 1 1 At 31 December 2024 16,088 5 16,093 (1,155) (1,155) ➤Financial assets at fair value through equity In millions of euros, at 31 December 2024 31 December 2023 Fair value of which changes in value recognised directly to equity Fair Value of which changes in value recognised directly to equity Debt securities 100,493 (5,341) 88,493 (5,154) Equity securities 1,729 107 646 70 Total financial assets at fair value through equity 102,222 (5,234) 89,139 (5,084) The option to recognise certain equity instruments at fair value through equity was retained in particular for shares held through strategic partnerships and shares that the Group is required to hold in order to carry out certain activities. During the year ended 31 December 2024, the Group sold several of these investments and a net gain of EUR 3 million was transferred to “retained earnings” (EUR 26 million for the year ended 31 December 2023). ➤Fair value of investment properties The fair value of investment properties amounted to EUR 7.0 billion at 31 December 2024, compared with EUR 7.5 billion at 31 December 2023. The value of investment properties classified in Level 3 amounted to EUR 0.5 billion at 31 December 2024. The entire non-listed real estate portfolio is appraised by one or more independent third parties. Experts have professional rules for carrying out these assessments. For buildings that are directly held, experts use three main methods: the method by which similar transactions are compared; the rate of return method (rate applied to a rental basis); the discounted cash flows method. The final value retained by the expert may be a compromise between these three methods. ➤Fair value of financial instruments carried at amortised cost In millions of euros, at 31 December 2024 31 December 2023 Estimated fair value Carrying value Estimated fair value Carrying value Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Loans and receivables 1,326 47 1,373 1,379 1,242 24 1,266 1,267 5.dAssets and liabilities related to insurance contracts The main contracts issued by the Group are (see note 1.g.2): insurance contracts covering risks related to persons or property measured under the general model (building block approach - BBA) or the premium allocation approach (PAA) for contracts eligible under this approach; life or savings contracts measured under the variable fee approach (VFA); reinsurance contracts issued measured under the general model or the premium allocation approach. Reinsurance contracts held are also measured under the general model or the premium allocation approach. Insurance and reinsurance contracts issued and reinsurance contracts held are presented on the assets or liabilities side of the balance sheet according to the overall position of the portfolios to which they belong. They are presented separately according to their valuation model: allocation method or other models (general model and variable fee approach). Reinsurance contracts held are isolated. In millions of euros, at 31 December 2024 31 December 2023 Assets Liabilities Net (Assets) or Liabilities Assets Liabilities Net (Assets) or Liabilities Insurance contracts not measured under the premium allocation approach 34 244,978 244,944 22 215,689 215,667 Insurance contracts measured under the premium allocation approach 153 2,709 2,556 84 2,354 2,270 Reinsurance contracts held 709 12 (697) 554 (554) Assets and liabilities related to insurance contracts 896 247,699 246,803 660 218,043 217,383 Tables below show movements in carrying amounts of insurance contracts and do not include reinsurance contracts held. ➤Movements in carrying amounts of insurance contracts - remaining coverage and incurred claims Insurance contracts issued, excluding reinsurance contracts In millions of euros Remaining coverage Incurred claims(3) Total net liabilities Excluding loss component Loss component NET (ASSETS) OR LIABILITIES AT 31 DECEMBER 2022 205,437 152 3,962 209,551 Insurance service result: (income) or expenses (6,610) 23 3,995 (2,592) of which insurance revenue (8,945) (8,945) of which insurance service expenses 2,335 23 3,995 6,353 Net finance (income) or expenses from insurance contracts(2) 14,617 2 65 14,684 Total changes recognised in profit and loss and in equity 8,007 25 4,060 12,092 Investment component (23,892) - 23,892 - Premiums received for insurance contracts issued 26,128 26,128 Insurance acquisition cash flows (2,285) (2,285) Claims and other service expenses paid (27,454) (27,454) Total cash flows 23,843 - (27,454) (3,611) Changes in scope of consolidation and other items (371) (7) 283 (95) NET (ASSETS) OR LIABILITIES AT 31 DECEMBER 2023(1) 213,024 170 4,743 217,937 Insurance service result: (income) or expenses (7,116) 17 4,437 (2,662) of which insurance revenue (9,711) (9,711) of which insurance service expenses 2,595 17 4,437 7,049 Net finance (income) or expenses from insurance contracts(2) 10,952 3 164 11,119 Total changes recognised in profit and loss and in equity 3,836 20 4,601 8,457 Investment component (19,641) - 19,641 - Premiums received for insurance contracts issued 32,795 32,795 Insurance acquisition cash flows (2,781) (2,781) Claims and other service expenses paid (24,166) (24,166) Total cash flows 30,014 - (24,166) 5,848 Changes in scope of consolidation and other items 15,061 6 191 15,258 NET (ASSETS) OR LIABILITIES AT 31 DECEMBER 2024(1) 242,294 196 5,010 247,500 Including receivables and liabilities attributable to insurance contracts for a net asset of EUR 961 million at 31 December 2024, compared with a net asset of EUR 549 million at 31 December 2023. Including finance income and expenses recognised directly in equity. Including incurred claims for contracts under the premium allocation approach (PAA) for a net liability of EUR 1,956 million at 31 December 2024, of which EUR 1,814 million in respect of the present value of cash flows and EUR 142 million in respect of the non-financial risk adjustment. ➤Movements in carrying amounts of insurance contracts not measured under the premium allocation approach – analysis by measurement component Insurance contracts issued not measured under the premium allocation approach, excluding reinsurance contracts In millions of euros Present value of future cash flows Non-financial risk adjustment Contractual service margin Total NET (ASSETS) OR LIABILITIES AT 31 DECEMBER 2022 189,422 1,048 17,065 207,535 Insurance service result: (income) or expenses (1,674) 550 (839) (1,963) of which changes related to future services - new contracts (1,164) 90 1,107 33 of which changes related to future services - change in estimation (447) 602 (121) 34 of which changes related to current service(2) 32 (103) (1,825) (1,896) of which changes related to past service (95) (39) (134) Net finance (income) or expenses from insurance contracts(3) 14,510 8 51 14,569 Total changes recognised in profit and loss and in equity 12,836 558 (788) 12,606 Premiums received for insurance contracts issued 22,621 22,621 Insurance acquisition cash flows (892) (892) Claims and other service expenses paid (25,994) (25,994) Total cash flows (4,265) - - (4,265) Changes in scope of consolidation and other items (204) (3) (2) (209) NET (ASSETS) OR LIABILITIES AT 31 DECEMBER 2023(1) 197,789 1,603 16,275 215,667 Insurance service result: (income) or expenses (2,919) 154 721 (2,044) of which changes related to future services - new contracts (1,529) 123 1,435 29 of which changes related to future services - change in estimation (1,337) 170 1,194 27 of which changes related to current service(2) (8) (118) (1,908) (2,034) of which changes related to past service (45) (21) (66) Net finance (income) or expenses from insurance contracts(3) 10,867 18 60 10,945 Total changes recognised in profit and loss and in equity 7,948 172 781 8,901 Premiums received for insurance contracts issued 28,552 28,552 Insurance acquisition cash flows (978) (978) Claims and other service expenses paid (22,363) (22,363) Total cash flows 5,211 - - 5,211 Changes in scope of consolidation and other items 14,613 98 454 15,165 NET (ASSETS) OR LIABILITIES AT 31 DECEMBER 2024(1) 225,561 1,873 17,510 244,944 Including receivables and liabilities attributable to insurance contracts for a net asset of EUR 765 million at 31 December 2024, compared with a net asset of EUR 501 million at 31 December 2023. Including an experience adjustment that amounted to -EUR 9 million for the year ended 2024 and to +EUR 38 million for the year ended 2023. Including finance income and expenses recognised directly in equity. ➤Expected amortisation schedule for the contractual service margin The schedule presents the amortisation of the contractual service margin to be recognised over time in profit or loss for protection contracts under the general model and for saving contracts under the variable fee approach. For the latter, it considers the over performance of financial assets compared with a risk-neutral measurement. In millions of euros, at 31 December 2024 31 December 2023 Less than 5 years 7,938 6,734 5 to 10 years 5,347 5,183 More than 10 years 4,225 4,358 TOTAL 17,510 16,275 ➤Discount rates and adjustment for non-financial risk The table below presents the average discount rates used in the measurement of savings and protection contracts for the main horizons of the euro curve. 31 December 2024 31 December 2023 Savings Protection Savings Protection 1 year 3.17% 2.24% 4.00% 3.36% 5 years 3.07% 2.14% 2.96% 2.32% 10 years 3.20% 2.27% 3.03% 2.39% 15 years 3.26% 2.33% 3.10% 2.47% 20 years 3.19% 2.26% 3.04% 2.41% 40 years 3.09% 3.04% Discount rate For the construction of the yield curve, an approach based on the risk-free rate has been adopted, with the following parameters: a risk-free yield curve, by currency, based on an approach similar to that proposed by EIOPA (European Insurance and Occupational Pensions Authority) in the prudential framework, with two components: observable and liquid market component: rates are determined by reference to market financial instruments that comply with liquidity, consistency with liabilities and adjusted to limit the impact of credit risk; the long-term interest rate transition component: this enables the yield curve to be extrapolated for maturities beyond the liquid portion observable on the market. a liquidity premium applicable to specific types of contracts, based on assets held. For savings contracts valued according to the variable fee method, for which the fulfilment cash flows take into account the return on underlying financial assets, the risk-free yield curve is supplemented by a liquidity premium calculated on the basis of the portfolio of assets backing the savings and the retirement contracts. By assumption, bonds (sovereign and corporate) and diversified financial assets benefit from a liquidity premium (or illiquidity premium). The average liquidity premium on all savings portfolios (in France, Italy and Luxembourg) is 0.91% at 31 December 2024, compared with 0.65% at 31 December 2023. For protection contracts measured under the general model and for liabilities for incurred claims under the simplified approach, the discounting rate consists of the risk-free rate adjusted to reflect the illiquidity of liabilities. For protection, the liquidity premium is currently valued at zero due to the short settlement period for claims on the main risks covered. Adjustment for non-financial risks For savings contrats the risk adjustment is determined according to the cost of capital method, without taking into account the risk of massive lapses, including future payments, and considering only attributable expenses. It is measured within a confidence range of 60% and 70%. This one corresponds to a level of confidence of 65% at 31 December 2024 (unchanged compared with 31 December 2023). For protection contracts, the level of confidence used in determining the adjustment for non-financial risks for the main countries is 70% (based on the quantile method). 5.eRisks arising from insurance and investment contracts in the scope of IFRS 17 The BNP Paribas Group conducts its insurance activities mainly through BNP Paribas Cardif and its subsidiaries. Risk management framework Risk management is an integral part of the BNP Paribas Group’s business model. The Group has developed and implemented a risk management framework designed to identify, assess, control and monitor risks related to its various activities. Risk management involves identifying, measuring, monitoring, managing and reporting risks arising from the external environment as well as those inherent to insurance activities. Its objective is to guarantee the solvency, business continuity and development of the BNP Paribas Group’s insurance activities under satisfactory risk and profitability conditions. The general risk management framework for insurance activities is presented in section 5.10 Risks related to insurance activity of the Universal registration document. This framework has been developed to meet the needs of Solvency II prudential regulation. The BNP Paribas Group’s exposure to insurance contracts is disclosed in note 5.d Assets and liabilities related to insurance contracts. Pursuant to IFRS 17, the nature and extent of risks arising from BNP Paribas Group insurance and investment contracts are determined by their contractual characteristics. Underwriting and financial risks are the main risks to which the BNP Paribas Group is exposed as parts of its insurance activities. 5.e.1Underwriting risk Under IFRS 17, underwriting risks include: insurance risk: risks linked to mortality, morbidity, longevity, or the risk of an increase in losses for Protection coverage (including damage to property); risk related to the behaviour of policyholders: in particular, the surrender risk; charge risk: the risk of adverse deviation of contract management fees from tariffed loadings. Through its life insurance and savings activities, the BNP Paribas Group is mainly exposed to: surrender risk: the surrender clause allows policyholders to request the reimbursement of all or part of their accumulated savings. The insurer is therefore at risk of surrender volumes exceeding the forecasts used in asset-liability management models, leading to capital losses, if any, on asset disposals needed to finance excess surrenders; insurance risk: some unit-linked contracts provide that the capital paid in to beneficiaries on the death of the insured may not be less than the sum of the premiums invested in the contract, regardless of the situation on the financial markets at the time of death. The risk is therefore characterised by a statistical component (probability of loss) and a financial component (market value of the assets in representation of the unit-linked liabilities). The risks related to protection relate mainly to the marketing of creditor protection insurance, but also to activities such as personal protection insurance, extended warranty, theft or damage to property, civil liability, life annuity policies in France, and health, with geographical coverage in many countries. Creditor protection insurance mainly covers risks of death, disability, dreaded diseases, incapacity for work, loss of employment and financial losses on revolving loans, consumer loans and real estate loans. This activity is based on a multitude of contracts involving low risk and premium amounts, the profitability of which depends on the size of the portfolio of contracts, the effective mutualisation of risks and the control of operating expenses. The insurer is also exposed to lapse risk in the event of early redemption or transfer of the contract to another insurer where permitted by regulation. Other activities (personal protection insurance, extended warranty, theft, accidental damage to property, life annuity policies in France, civil liability, health) relate to personal risk (death, accidental death, hospitalisation, critical illness, healthcare expenses) or to property and/or liabilities (accidental damage, breakdown or theft of consumer goods or automobiles, civil liability, etc.). These contracts are characterised by individual insured sums which are generally low, whether they are indemnities or lump sums. Lastly, mainly through the Cardif IARD entity in France, insurance for motor vehicles (material damage, civil liability, assistance, etc.) and property risks are also underwritten. Such products are also growing internationally, particularly in Latin American countries. Framework for managing underwriting risk The underwriting risk monitoring and management framework is based on documented governance and processes. Subscription operations for direct and intermediated activities, and for accepted reinsurance are based on similar principles. Within the BNP Paribas Cardif group, risk underwriting complies with specific delegation rules involving several levels, both local and central. The level of delegation depends on the level of assessment of the maximum acceptable loss, the estimated Solvency II capital requirement and the estimated profitability of the contracts concerned. The experience gained from managing geographically diversified portfolios enables the databases used for risk pricing to be updated regularly, taking into account numerous parameters (type of loan for creditor insurance, guarantee, insured population, etc.). Each contract is priced based on the measurement and monitoring of profitability and the return on equity set by the Executive Management of BNP Paribas Cardif. Contractual clauses allow underwriting risk to be managed in accordance with regulatory and commercial frameworks through technical and legal measures, such as tariff revision clauses provided for in the contract in the event of changes in taxation or risk of adverse development in loss experience, and the limitation of the duration of some guarantees. Partners are interested in the quality of the risks of the contracts they bring so as to encourage the compliance with good underwriting practices defined by the Group. Ceded reinsurance is a complementary element of the underwriting risk management framework. It aims to protect BNP Paribas from the main risks to which the Group is exposed. In savings, underwriting risk is managed through monitoring and supervision of the offering, adapted to the market context. The Group thus limits the risk exposure, which is characterised by an insufficient performance of the investments compared with the contractual remuneration obligation. Thus 97% of Cardif Assurance Vie’s outstanding savings and of the retirement contracts in their accumulation phase do not provide for a guaranteed minimum rate or a guaranteed minimum rate of more than one year beyond the capital guarantee. For the French portfolio, the guaranteed average rate is less than 0.1%. In Italy, Cardif Vita offers an average guaranteed minimum rate of less than 0.15% on the main general Capital Vita fund. In Italy, only three segregated funds, in run-off, whose total outstandings represent less than 2% of the subsidiary’s outstandings, have an average guaranteed minimum rate of 2.20%. Besides, the average redemption rates for BNP Paribas Cardif group general funds stood in France at 6.2% (compared with 7.9% in 2023), in Italy at 14.0% (compared with 21.1% in 2023) and in Luxembourg at 10.6% (compared with 23.8% in 2023). Allocation of insurance contract liabilities by geographical area (excluding reinsurance) The table below shows the liabilities related to insurance contracts excluding reinsurance by country of issuance. These liabilities include the present value of future cash flows, the contractual service margin, and the adjustment for non-financial risk. In millions of euros, at 31 December 2024 31 December 2023 France(1) 180,289 158,470 Italy(1) 28,109 23,236 Luxembourg(1) 31,138 28,158 Other Europe(1) 1,547 1,492 Asia(1) 5,714 6,055 Latin America(2) 703 526 TOTAL 247,500 217,937 Savings and Protection. Protection only. Underwriting risk sensitivity analysis The table below shows the impact gross of taxes on income and shareholders’ equity of reasonably possible changes in the main underwriting risk variables at reporting date (i.e. changes in surrenders and mortality for life savings activities and changes in claims for protection activities). Shocks are applied to current-year death claims and surrenders. Sensitivity to non-financial risks is presented excluding the effect of ceded reinsurance contracts and assuming that all other variables remain unchanged. In millions of euros, at 31 December 2024 31 December 2023 Potential impact on income Potential impact on equity Potential impact on income Potential impact on equity Savings Mortality rates (1% increase/decrease) - - - - Lapse rates (5% increase/decrease) -/+ 2 - -/+ 2 - Protection Ultimate loss rate (5% increase/decrease) -/+ 95 - -/+ 94 - 5.e.2Market risk Qualitative information on the valuation of the carrying amount and fair value of financial instruments is provided in the financial instruments section of note 1.f Financial assets and liabilities. Quantitative information on the carrying value of financial instruments is disclosed in note 5.c Investments, other financial assets and liabilities related to insurance activities. IFRS 17 defines market risk as the risk that changes in market prices (e.g. interest rates, currency exchange rates, share prices) affect the fulfilment cash flows of insurance and reinsurance contracts and the fair value or future cash flows of financial instruments. Market risk includes: interest rate risk: the risk that the fair value or future cash flows of a financial instrument and that fulfilment cash flows of an insurance or reinsurance contract will fluctuate due to changes in market interest rates; price risk: the risk that the fair value or future cash flows of a financial instrument, and the fulfilment cash flows of an insurance or reinsurance contract, will fluctuate due to changes in market prices (other than those arising from interest rate risk or currency exchange risk), whether these changes are caused by factors specific to the instrument or contract in question or to its issuer, or by factors affecting all similar financial instruments traded on the market or all similar contracts; currency exchange risk: the risk that the fair value or future cash flows of a financial instrument, as well as fulfilment cash flows of an insurance or reinsurance contract will fluctuate due to changes in foreign exchange rates. Market Risk Management Framework For its insurance activities, the Group has equipped itself with the necessary management tools to calibrate the strategic asset allocation and to measure asset-liability matching risks. Asset-liability studies enable to project expected flows on both the assets and the liabilities of the various general funds. In particular, they allow to adapt the duration of assets according to the profile of the various liabilities. The investment policy dictates the framework for asset management. It defines the principles for aligning the structure of asset portfolios with the commitments made to policyholders, while optimising the expected return on investment relative to the risk limit set. Thus, in particular in the case of BNP Paribas Cardif, the implementation of the investment policy, entrusted to the Asset Management Department, is governed for each portfolio by a management agreement that specifies the investment limits according to asset classes. Market risk can also be managed through the use of financial hedging instruments. Market risk exposure is also monitored through targeted studies such as the review of securities in an unrealised loss position. In addition, foreign currency exchange risk exposure arises from the funding of the foreign branches, equity investments in foreign currency or investment strategy in foreign currency-denominated assets in general funds. Foreign exchange risk may be hedged by forward financial instruments, such as cross-currency swaps, or by foreign currency borrowings. For unit-linked commitments, market risk is mainly transferred to policyholders. Interest rate risk sensitivity analysis The sensitivity on insurance contracts arises from the following effects: For insurance contracts without direct participation features (protection, creditor insurance and property), the fulfilment cash flows are discounted using a discount rate curve that depends on the interest rates at closing date. The risk is therefore mainly related to the degree of matching between the return on investments and insurance financial income or expenses. For insurance contracts with direct participation features (life and savings contracts), the change in the value of insurance contracts reflects the change in the value of the underlying financial assets. Therefore the risk is mainly related to the change in the insurer’s share (the variable fees) in the fair value of the underlying financial assets. The table below shows the impact gross of taxes on income and shareholders’ equity of reasonably possible changes in interest rates at reporting date. Sensitivities are presented on all financial assets, excluding assets representing unit-linked contracts. Sensitivity was determined for the most significant countries, i.e. France, Italy and Luxembourg. In millions of euros, at 31 December 2024 Potential impact on income Potential impact on equity related to investments(1) related to insurance contracts Net impact related to investments related to insurance contracts Net impact +50 bps variation of interest rate risk (190) 178 (12) (4,019) 3,738 (281) -50 bps variation of interest rate risk 249 (237) 12 4,015 (3,738) 277 Excepted financial assets representing unit-linked contracts. In millions of euros, at 31 December 2023 Potential impact on income Potential impact on equity related to investments(1) related to insurance contracts Net impact related to investments related to insurance contracts Net impact +50 bps variation of interest rate risk (225) 206 (19) (3,662) 3,330 (332) -50 bps variation of interest rate risk 239 (220) 19 3,662 (3,330) 332 Excepted financial assets representing unit-linked contracts. Price risk sensitivity analysis The table below shows the impact gross of taxes on income and equity of reasonably possible changes in market and real estate prices at the reporting date. Sensitivities are presented excluding unit-linked contracts. Sensitivity was determined for the most significant countries, i.e. France, Italy and Luxembourg. In millions of euros, at 31 December 2024 Potential impact on income Potential impact on equity related to investments(1) related to insurance contracts Net impact related to investments related to insurance contracts Net impact +10% variation of equity market 1,310 (1,246) 64 175 (3) 172 -10% variation of equity market (1,310) 1,246 (64) (175) 3 (172) +10% variation of real estate market 1,183 (1,153) 30 -10% variation of real estate market (1,183) 1,153 (30) Excepted financial assets representing unit-linked contracts. In millions of euros, at 31 December 2023 Potential impact on income Potential impact on equity related to investments(1) related to insurance contracts Net impact related to investments related to insurance contracts Net impact +10% variation of equity market 1,834 (1,760) 74 61 61 -10% variation of equity market (1,834) 1,760 (74) (61) (61) +10% variation of real estate market 1,062 (1,031) 31 37 37 -10% variation of real estate market (1,062) 1,031 (31) (37) (37) Excepted financial assets representing unit-linked contracts. For savings contracts valued using the variable fees approach, the change in the value of the underlying financial assets is largely offset by the change in the value of the liabilities, provided that the contractual service margin remains positive. Potential effects on income and equity are therefore mainly derived from non-participating contracts and assets representing the shareholders’ equity of insurance entities. 5.e.3Credit risk IFRS 17 defines credit risk as the risk that a party to a financial instrument, an insurance contract issued which is an asset or a reinsurance contract held, fails to meet one of its obligations and thereby causes the other party to suffer a financial loss. The credit risk related to contracts in the scope of IFRS 17 relates mainly to reinsurance contracts held (risk of default by a reinsurer that would no longer allow him to assume a share of the amount due to him) and to receivables on the partners to whom the collection of the premiums have been delegated. Counterparty risk management on reinsurers is achieved through rigorous selection of reinsurers, negotiation of collateral provided and regular monitoring of major exposures. The guarantees required may be real sureties, such as cash deposits and security pledges, or financial guarantees given and letters of guarantee. The counterparty risk of BNP Paribas Cardif’s partners comes under the Partners and Reinsurers credit governance. As with a reinsurer, an exposure to a partner may be subject to real or personal security. Depending on the quality of the counterparty, the following techniques may be used: guarantee of the parent company, first-demand bank guarantee, segregated account of the rest of the assets in the event of bankruptcy, etc. 5.e.4Liquidity risk IFRS 17 defines liquidity risk as the difficulty of honouring commitments related to insurance contracts and financial liabilities that are to be settled through the provision of cash or other financial assets. Tactical asset management is carried out to release the cash needed to settle insurance benefits, in keeping with the fund's current management framework, while minimising impacts on the rate of return on assets. Liquidity risk is managed centrally based on studies carried out at intervals appropriate to the risk exposure. Stress tests are carried out as part of asset-liability management studies. They test the ability to honour its commitments in adverse financial market situations, taking into account the impact of these situations on the behaviour of policyholders. These medium and long-term asset-liability matching analyses are based on a projection of the medium and/or long-term profit and loss account and balance sheet under various economic scenarios. The analysis of the results obtained makes it possible to take, where appropriate, measures to adjust the constraints on asset allocation (strategic allocation, diversification, derivatives, etc.). The table below details the forward schedule of the present value of the future cash flows of all insurance contracts excluding reinsurance. In millions of euros, at 31 December 2024 31 December 2023 1 year 7,770 7,094 1 to 2 years 8,037 6,274 2 to 3 years 6,685 6,179 3 to 4 years 6,923 6,074 4 to 5 years 7,735 5,598 5 to 10 years 33,032 19,511 More than 10 years 157,419 148,819 TOTAL 227,601 199,549 For participating contracts, amounts payable on demand correspond to surrender values of saving contracts. In millions of euros, at 31 December 2024 31 December 2023 Amount payable on demand Carrying amount Amount payable on demand Carrying amount Participating contracts 227,706 241,278 197,551 212,297 Non-participating contracts 57 6,222 70 5,640 TOTAL 227,763 247,500 197,621 217,937 Note 6Financing and guarantee commitments 6.aFinancing commitments given or received In millions of euros, at 31 December 2024 31 December 2023 Financing commitments given to credit institutions 5,345 3,650 to customers 385,321 365,821 Credit facilities 345,840 328,678 Other financing commitments given to customers 39,481 37,143 Total financing commitments given 390,666 369,471 of which stage 1 375,012 353,147 of which stage 2 14,175 14,857 of which stage 3 1,384 889 of which insurance activities 95 578 Financing commitments received from credit institutions 77,655 69,596 from customers 2,731 3,185 Total financing commitments received 80,386 72,781 6.bGuarantee commitments given by signature In millions of euros, at 31 December 2024 31 December 2023 Guarantee commitments given to credit institutions 82,872 63,132 to customers 125,447 127,203 Financial guarantees 70,266 74,710 Other guarantees 55,181 52,493 Total guarantee commitments given 208,319 190,335 of which stage 1 197,003 177,315 of which stage 2 9,562 11,701 of which stage 3 1,054 769 of which insurance activities 700 550 The Group’s annual contribution to the European Union’s Single Resolution Fund may be partly in the form of an irrevocable payment commitment (IPC) guaranteed by a cash deposit of the same amount. In the event of the fund being involved in a resolution action, the Single Resolution Board (SRB) shall call part or all of the irrevocable payment commitments. The IPC is qualified as a contingent liability. A provision is recognised if the probability of a commitment call by the fund exceeds 50%. Based on the risk assessment carried out by the Group, this probability is estimated to be below this threshold. Consequently, no provision was recognised by the Group at 31 December 2024. The ruling of the European Court of Justice on the BNP Paribas Public Sector case is expected in the first half of 2025. The Group continues to monitor legal developments and their potential impacts. IPC amounted to EUR 1,263 million at 31 December 2024 (compared with EUR 1,261 million at 31 December 2023). Cash provided as collateral is remunerated and recognised as a financial asset at amortised cost within the line "Other debtors and miscellaneous assets” (see note 4.j Accrued income/expense and other assets/liabilities) 6.cSecurities commitments In connection with the settlement date accounting for securities, commitments representing securities to be delivered or securities to be received are the following: In millions of euros, at 31 December 2024 31 December 2023 Securities to be delivered 20,929 23,159 Securities to be received 20,915 21,384 6.dOther guarantee commitments ➤Financial instruments given as collateral In millions of euros, at 31 December 2024 31 December 2023 Financial instruments (negotiable securities and private receivables) lodged with central banks and eligible for use at any time as collateral for refinancing transactions after haircut 77,314 87,881 Used as collateral with central banks 1,436 20,560 Available for refinancing transactions 75,878 67,321 Securities sold under repurchase agreements 514,733 519,731 Other financial and similar assets pledged as collateral for transactions with credit institutions, financial customers or subscribers of covered bonds issued by the Group(1) 363,995 323,491 Notably including “Société de Financement de l’Économie Française” and “Caisse de Refinancement de l’Habitat” financing. The fair value of financial instruments given as collateral or transferred under repurchase agreements by the Group that the beneficiary is authorised to sell or reuse as collateral amounted to EUR 747,190 million at 31 December 2024 (EUR 726,703 million at 31 December 2023). ➤Financial instruments received as collateral In millions of euros, at 31 December 2024 31 December 2023 Financial instruments received as collateral (excluding repurchase agreements) 401,812 350,947 of which instruments that the Group is authorised to sell and reuse as collateral 217,745 187,021 Securities received under repurchase agreements 438,010 467,822 The fair value of financial instruments received as collateral or under repurchase agreements that the Group effectively sold or reused as collateral amounted to EUR 370,728 million at 31 December 2024 (compared with EUR 377,078 million at 31 December 2023). Note 7Salaries and employee benefits 7.aSalary and employee benefit expense In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Fixed and variable remuneration, incentive bonuses and profit-sharing 14,066 13,445 Employee benefit expense 3,697 3,856 Payroll taxes 380 474 Total salary and employee benefit expense for banking activities (note 2.f) 18,143 17,775 Salary and employee benefit expense of insurance activities (note 5.b) 839 778 Total salary and employee benefit expense 18,982 18,553 7.bPost-employment benefits IAS 19 distinguishes between two categories of plans, each handled differently depending on the risk incurred by the entity. When the entity is only committed to paying a fixed amount, stated as a percentage of the beneficiary’s annual salary, for example, to an external entity handling payment of the benefits based on the assets available for each plan member, it is described as a defined-contribution plan. Conversely, when the entity’s obligation is to manage the financial assets funded through the collection of contributions from employees and to bear the cost of benefits itself or to guarantee the final amount subject to future events, it is described as a defined-benefit plan. The same applies if the entity entrusts management of the collection of premiums and payment of benefits to a separate entity but retains the risk arising from management of the assets and/or from future changes in the benefits. Main defined-contribution pension plans for Group entities The BNP Paribas Group has implemented over the past few years a wide campaign of converting defined-benefit plans into defined-contribution plans. Thus, in France, the BNP Paribas Group pays contributions to mandatory state and complementary pension schemes. BNP Paribas SA and certain subsidiaries have set up a complementary defined-contribution pension plan under a company-wide agreement. Under this plan, employees will receive an annuity or a lump sum on retirement in addition to the pension paid by mandatory schemes. Since defined-benefit plans have been closed to new employees in most countries outside France, they are offered the benefit of joining defined-contribution pension plans. In Italy, the plan introduced by BNL is funded by employer contributions (4.35% of salaries) and employee contributions (2% of salaries). Employees can also make additional voluntary contributions. In the United Kingdom, the employer contributes 12% of salaries for the majority of employees; employees can make additional voluntary contributions. In the US, the bank matches the voluntary contributions made by employees, within certain limits. The amount paid into defined-contribution retirement plans for the year ended 31 December 2024 was EUR 828 million, compared with EUR 791 million for the year ended 31 December 2023. The breakdown by major contributors is determined as follows: Contribution amount In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 France 383 386 Italy 110 106 UK 74 62 Türkiye 50 39 Luxembourg 31 30 Hong Kong 30 29 USA 29 27 Others 121 112 TOTAL 828 791 Main defined-benefit pension plans for Group entities and indemnities payable on retirement Defined-benefit plans In Belgium, BNP Paribas Fortis funds a defined-benefit plan, based on final salary and number of years of service, for its management and employees who joined the bank before its pension plans were harmonised on 1 January 2002. Actuarial liabilities under this scheme are pre-funded at 95% at 31 December 2024 (compared with 91% at 31 December 2023) through insurance companies. BNP Paribas Fortis senior managers joining before 1 January 2015 are covered by a top-up pension plan, paying a lump sum based on the number of years of service and final salary. This plan is pre-funded at 100% at 31 December 2024 (94% at 31 December 2023) through insurance companies. In Belgium, employees benefit from a defined-contribution scheme with a legal obligation for the employer to guarantee a minimum return on financial assets invested. Thus, a provision was recognised for these schemes, as this guarantee is not entirely covered by the insurance company. In France, BNP Paribas pays a top-up banking industry pension arising from rights acquired to 31 December 1993 by retired employees and active employees in service at that date. At 31 December 2024, the Group’s residual obligations for these employees were recognised on the balance sheet in full. The defined-benefit plans previously granted to some Group senior managers have all been closed to new employees and converted into top-up type schemes. The amounts allocated to residual beneficiaries, subject to their presence within the Group at retirement, were fixed when these schemes were closed. At 31 December 2024, these pension plans were funded at 442% through insurance companies (264% at 31 December 2023). In the United Kingdom, defined-benefit pension plans (pension funds) still exist but are closed to new employees. Under these plans, the defined pension is generally based on final salary and number of years of service. Pension schemes are managed by independent management bodies (Trustees). At 31 December 2024, obligations for all UK entities were 124% covered by financial assets, compared with 118% at 31 December 2023. In Switzerland, liabilities relate to top-up pension plans based on the principle of defined-contribution schemes with guaranteed returns, paying an annuity under pre-defined terms. These schemes are managed by a foundation. At 31 December 2024, obligations were 105% covered by financial assets, compared with 111% at 31 December 2023. In the United States, main defined-benefit pension plans are based on annual vesting rights to a lump sum comprising a pension expressed as a percentage of annual frozen salary and paying interest at a pre-defined rate. These plans are closed to new entrants and do not offer new vesting rights. At 31 December 2024, the obligation was 85% covered by financial assets (87% at 31 December 2023). In Germany, liabilities are mainly related to defined-benefit pension plans, closed to new employees. Under these plans, the defined pension is generally based on the number of years of service and final salary. They offer the payment of an annuity under pre-defined terms. At 31 December 2024, the obligation was 72% covered by financial assets, (66% at 31 December 2023). In Türkiye, the main pension plan replaces the national pension scheme and should eventually be transferred to the Turkish State. This plan offers guarantees exceeding the minimal legal requirements. At the end of 2024, obligations under this plan are fully funded by financial assets held with an external foundation; these financial assets exceeding the related obligations, this surplus is not recognised as an asset by the Group. Other post-employment benefits Group employees also receive various other contractual post-employment benefits, such as indemnities payable on retirement, determined according to minimal legal requirements (Labour Code, collective agreements) or according to specific company-level agreements. In France, the obligations for these benefits are funded through a contract held with a third-party insurer. At 31 December 2024, this obligation was 129% covered by financial assets, compared with 127% at 31 December 2023. In other countries, the obligations of the Group related to other post-employment benefits are mainly concentrated in Italy, where vested rights up to 31 December 2006 were frozen. Obligations under defined-benefit pension plans and indemnities payable on retirement ➤Assets and liabilities recognised on the balance sheet In millions of euros, at 31 December 2024 Defined- benefit obligation arising from wholly or partially funded plans Defined- benefit obligation arising from unfunded plans Present value of defined-benefit obligation Fair value of plan assets Fair value of reimburse- ment rights(1) Effect of asset ceiling Net obligation of which asset recognised in the balance sheet for defined- benefit plans of which net assets of defined- benefit plans of which fair value of reimburse- ment rights of which obligation recognised in the balance sheet for defined- benefit plans Belgium 2,691 15 2,706 (183) (2,456) 67 (2,457) (1) (2,456) 2,524 UK 1,082 1,082 (1,337) (255) (255) (255) Switzerland 1,212 1,212 (1,276) (64) (68) (68) 4 France 811 47 858 (1,114) (256) (355) (355) 99 USA 145 1 146 (124) 22 22 Türkiye 346 32 378 (347) 1 32 32 Italy 139 139 139 139 Germany 130 47 177 (127) 50 (6) (6) 56 Others 314 49 363 (254) (1) 2 110 (11) (10) (1) 121 TOTAL 6,731 330 7,061 (4,762) (2,457) 3 (155) (3,152) (695) (2,457) 2,997 In millions of euros, at 31 December 2023 Defined- benefit obligation arising from wholly or partially funded plans Defined- benefit obligation arising from unfunded plans Present value of defined- benefit obligation Fair value of plan assets Fair value of reimburse- ment rights(1) Effect of asset ceiling Net obligation of which asset recognised in the balance sheet for defined- benefit plans of which net assets of defined- benefit plans of which fair value of reimburse- ment rights of which obligation recognised in the balance sheet for defined- benefit plans Belgium 2,830 2,830 (152) (2,502) 176 (2,502) (2,502) 2,678 UK 1,158 1,158 (1,365) (207) (209) (209) 2 Switzerland 1,123 1,123 (1,251) 130 2 2 France 856 52 908 (1,134) (226) (331) (331) 105 USA 146 1 147 (127) 20 (4) (4) 24 Türkiye 235 43 278 (258) 22 42 42 Italy 164 164 164 164 Germany 129 49 178 (118) 60 60 Others 334 47 381 (269) (1) 1 112 (9) (8) (1) 121 TOTAL 6,811 356 7,167 (4,674) (2,503) 153 143 (3,055) (552) (2,503) 3,198 The reimbursement rights are principally found on the balance sheet of the Group’s insurance subsidiaries and associated companies - notably AG Insurance with respect to BNP Paribas Fortis’ defined-benefit plans - to hedge their commitments to other Group entities that were transferred to them to cover the post-employment benefits of certain employee categories. ➤Change in the present value of the defined-benefit obligation including discontinued activities In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Present value of defined-benefit obligation at start of period 7,167 7,174 Current service cost 193 181 Interest cost 226 236 Past service cost (18) (25) Settlements (7) (15) Actuarial (gains)/losses on change in demographic assumptions (1) (11) Actuarial (gains)/losses on change in financial assumptions (142) 203 Actuarial (gains)/losses on experience gaps 194 330 Actual employee contributions 25 24 Benefits paid directly by the employer (103) (87) Benefits paid from assets/reimbursement rights (483) (453) Exchange rate (gains)/losses on obligation 10 (41) (Gains)/losses on obligation related to changes in the consolidation scope (349) Present value of defined-benefit obligation at end of period 7,061 7,167 ➤Change in the fair value of plan assets and reimbursement rights including discontinued activities In millions of euros Plan assets Reimbursement rights Year to 31 Dec. 2024 Year to 31 Dec. 2023 Year to 31 Dec. 2024 Year to 31 Dec. 2023 Fair value of assets at start of period 4,674 4,964 2,503 2,397 Expected return on assets 148 169 77 84 Settlements (8) (14) Actuarial gains/(losses) on assets 88 10 21 99 Actual employee contributions 14 14 11 10 Employer contributions 54 60 98 131 Benefits paid from assets (226) (234) (257) (219) Exchange rate gains/(losses) on assets 22 (36) Gains/(losses) on assets related to changes in the consolidation scope (4) (259) 4 1 Fair value of assets at end of period 4,762 4,674 2,457 2,503 ➤Components of the cost of defined-benefit plans In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Service costs 176 155 Current service cost 193 181 Past service cost (18) (25) Settlements 1 (1) Net financial expense 7 1 Interest cost 226 236 Interest income on plan asset 6 18 Interest income on reimbursement rights (148) (169) Expected return on asset ceiling (77) (84) Total recognised in “Salary and employee benefit expense” 183 156 ➤Other items recognised directly in equity In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Actuarial (losses)/gains on plan assets or reimbursement rights 109 109 Actuarial (losses)/gains of demographic assumptions on the present value of obligations 1 11 Actuarial (losses)/gains of financial assumptions on the present value of obligations 142 (203) Experience (losses)/gains on obligations (194) (330) Variation of the effect of assets limitation 165 216 Total of other items recognised directly in equity 223 (197) ➤Main actuarial assumptions used to calculate obligations In the Eurozone, United Kingdom and United States, the Group discounts its obligations using the yields of high quality corporate bonds, with a term consistent with the duration of the obligations. The ranges of rates used are as follows: In % 31 December 2024 31 December 2023 Discount rate Compensation increase rate(1) Discount rate Compensation increase rate(1) Belgium 2.60% / 3.60% 3.10% / 3.80% 3.00% / 3.60% 3.30% / 4.10% UK 4.80% / 5.50% 2.00% / 3.60% 4.40% / 5.30% 2.00% / 3.40% France 2.80% / 3.40% 2.00% / 4.10% 3.00% / 3.60% 2.10% / 3.60% Switzerland 0.90% / 1.00% 1.75% / 1.80% 1.40% / 1.60% 1.80% / 2.00% USA 4.90% / 5.20% NA 4.70% / 5.30% 2.50% Italy 2.90% / 3.20% 2.60% / 3.50% 3.00% / 3.60% 3.00% / 3.10% Germany 3.00% / 3.60% 2.00% / 2.70% 3.20% / 3.70% 2.00% / 2.90% Türkiye 30.50% 26.25% 23.10% 18.80% Including price increases (inflation). Average discount rates weighted by obligation amounts are as follows: in the Eurozone: 3.21% at 31 December 2024 for a weighted average duration of 9.2 years (3.16% at 31 December 2023 for a weighted average duration of 9.4 years); in the United Kingdom: 5.44% at 31 December 2024 for a weighted average duration of 13.6 years (4.51% at 31 December 2023 for a weighted average duration of 14.1 years); in Switzerland: 1% at 31 December 2024 for a weighted average duration of 12.9 years (1.40% at 31 December 2023 for a weighted average duration of 12.3 years). The impact of a 100bps change in discount rates on the present value of post-employment benefit obligations is as follows: Change in the present value of obligations In millions of euros, at 31 December 2024 31 December 2023 Discount rate -100 bps Discount rate +100 bps Discount rate -100 bps Discount rate +100 bps Belgium 243 (181) 231 (168) UK 156 (126) 170 (137) France 94 (80) 88 (75) Switzerland 175 (139) 148 (119) USA 16 (13) 15 (13) Italy 9 (8) 10 (9) Germany 28 (22) 27 (21) Türkiye 15 (12) 11 (9) Inflation assumptions used for the valuations of the Group obligations are determined locally depending on the monetary area, except for the Eurozone for which the assumption is determined centrally. Average discount rates weighted by obligation amounts are as follows: in the Eurozone: 2.06% at 31 December 2024 (2.27% at 31 December 2023); in the United Kingdom: 3.08% at 31 December 2024 (2.94% at 31 December 2023); in Switzerland: 1.10% at 31 December 2024 (1.25% at 31 December 2023). The impact of a +100-bps increase in inflation rates on the present value of post-employment benefit obligations is as follows: Change in the present value of obligations In millions of euros, at 31 December 2024 31 December 2023 Inflation rate +100 bps Inflation rate +100 bps Belgium 121 133 UK 94 100 France 106 88 Switzerland 10 8 Italy 6 7 Germany 18 16 Türkiye 15 11 Variation effects of discount and inflation rates presented above are not cumulative. ➤Actual rate of return on plan assets and reimbursement rights over the period In % Year to 31 Dec. 2024 Year to 31 Dec. 2023 Range of value (reflecting the existence of several plans in the same country) Weighted average rates Range of value (reflecting the existence of several plans in the same country) Weighted average rates Belgium -9.80% / 18.60% 3.40% -0.20% / 13.20% 6.45% UK -6.40% / 8.90% -3.40% -10.50% / 5.40% 0.50% France 2.80% 2.80% 2.60% 2.60% Switzerland 2.10% / 9.30% 6.55% 1.70% / 2.50% 2.50% USA 2.45% 2.45% 1.65% / 5.45% 5.25% Germany 1.85% / 15.90% 11.15% -2.85% / 11.50% 9.30% Türkiye 35.95% 35.95% 44.90% 44.90% ➤Breakdown of plan assets In % 31 December 2024 31 December 2023 Shares Governmental bonds Non- Governmental bonds Real- estate Deposit account Others Shares Governmental bonds Non- Governmental bonds Real- estate Deposit account Others Belgium 8% 46% 20% 1% 0% 25% 8% 46% 19% 1% 2% 24% UK 7% 58% 27% 0% 1% 7% 12% 62% 16% 0% 2% 8% France(1) 12% 64% 13% 9% 2% 0% 8% 59% 18% 13% 2% 0% Switzerland 30% 0% 26% 20% 3% 21% 29% 0% 26% 25% 4% 16% USA 20% 26% 49% 0% 5% 0% 17% 24% 45% 0% 13% 1% Germany 18% 54% 0% 0% 1% 27% 22% 52% 0% 0% 0% 26% Türkiye 0% 73% 0% 18% 8% 1% 0% 68% 0% 6% 21% 5% Others 11% 24% 13% 2% 2% 48% 9% 22% 12% 1% 2% 54% GROUP 12% 43% 20% 6% 2% 17% 12% 43% 19% 7% 3% 16% In France, the breakdown of plan assets reflects the breakdown of the general fund of the insurance company through which the Group’s obligations are funded. The Group introduced an asset management governance for assets backing defined-benefit pension plan commitments, the main objectives of which are the management and control of the risks in terms of investment. It sets out investment principles, in particular, by defining an investment strategy for plan assets, based on financial objectives and risk management, to specify the way in which plan assets have to be managed, via financial management servicing contracts. The investment strategy is based on an assets and liabilities management analysis that should be realised at least every three years for plans with assets in excess of EUR 100 million. Post-employment healthcare benefits The Group offers some healthcare benefit plans for retired employees, mainly in Belgium. The present value of post-employment healthcare benefit obligations stood at EUR 75 million at 31 December 2024, compared with EUR 78 million at 31 December 2023. 7.cOther long-term benefits BNP Paribas offers its employees various long-term benefits, mainly long-service awards, the ability to save up paid annual leave in time savings accounts, and certain guarantees protecting them in the event they become incapacitated. The net provision amounted to EUR 465 million at 31 December 2024 (EUR 462 million at 31 December 2023). As part of the Group’s variable compensation policy, annual deferred compensation plans are set up for certain high-performing employees or pursuant to special regulatory frameworks. Under these plans, payment is deferred over time and is subject to the performance achieved by the business lines, divisions and Group. Since 2013, BNP Paribas has introduced a Group loyalty scheme with a cash payment, at the end of a three-year to four-year vesting period, which fluctuates according to the Group’s intrinsic performance. The aim of this loyalty scheme is to make different categories of managerial staff partners in the Group’s development and profitability objectives. These personnels are representative of the Group’s talent and the breadth of its managerial framework i.e. senior managers, managers in key positions, line managers and experts, high-potential managers, high-performing young executives with good career development prospects and key contributors to the Group’s results. The amounts allocated under this plan are linked to changes in the Group’s operational performance over the duration of the plan (for 80%) and to the achievement of the Group’s Corporate Social Responsibility (CSR) targets (for 20%). These ten targets are in line with the four pillars on which the Group’s CSR policy is based. In addition, the final payment is subject to continuous service within the Group between the grant date and the payment date, provided that the Group’s operating income and pre-tax income for the year prior to payment are strictly positive. For employees subject to special regulatory frameworks, this loyalty scheme is adjusted in accordance with the CRD European Directive. The net obligation related to deferred compensation plans and loyalty schemes amounts to EUR 1,152 million at 31 December 2024 (EUR 1,033 million at 31 December 2023). In millions of euros, at 31 December 2024 31 December 2023 Net provisions for other long-term benefits 1,617 1,495 Asset recognised in the balance sheet under the other long-term benefits (92) (76) Obligation recognised in the balance sheet under the other long-term benefits 1,709 1,571 7.dTermination benefits BNP Paribas has implemented a number of voluntary redundancy plans and headcount adaptation plans for employees who meet certain eligibility criteria. The obligations to eligible active employees under such plans are provided for as soon as a bilateral agreement or a bilateral agreement proposal for a particular plan is made. In millions of euros, at 31 December 2024 31 December 2023 Provision for voluntary departure, early retirement plans, and headcount adaptation plans 328 482 7.eShare-based payments As part of the Group’s variable remuneration policy, deferred annual compensation plans offered to certain high-performing employees or set up pursuant to special regulatory frameworks may entitle beneficiaries to variable compensation settled in cash but linked to the share price, payable over several years. Variable compensation for employees, subject to special regulatory frameworks Since the publication of the Decree by the French Ministry of Finance on 13 December 2010, and following the provisions of the European Directive CRD 4 of 26 July 2013, modified by the CRD 5 Directive of 20 May 2019, transposed into the French law in the Monetary and Financial Code by the Ordinance of 20 February 2014, and the Ordinance of 21 December 2020, as well as the Decrees and Orders of 3 November 2014 and 22 December 2020 and the Delegated European Regulation of 25 March 2021, the variable compensation plans apply to Group employees performing activities that may have a material impact on the Group’s risk profile. Under these plans, payment is deferred over time and is contingent on the performance achieved by the business lines, core businesses and Group. Sums will mostly be paid in cash linked to the increase or decrease in the BNP Paribas share price. Deferred variable compensation for other Group employees Sums due under the annual deferred compensation plans for high-performing employees are partly paid in cash linked to the increase or decrease in the BNP Paribas share price. ➤Expense of share-based payments Expense/(revenue) In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Prior deferred compensation plans 46 48 Deferred compensation plans for the year 600 541 Total 646 589 Note 8Additional information 8.aChanges in share capital and earnings per share At 31 December 2024, the share capital of BNP Paribas SA amounted to EUR 2,261,621,342 and was divided into 1,130,810,671 shares (compared with 1,147,477,409 at 31 December 2023). The nominal value of each share is EUR 2. Ordinary shares issued by BNP Paribas and held by the Group Proprietary transactions Trading transactions(1) Total Number of shares Carrying amount (In millions of euros) Number of shares Carrying amount (In millions of euros) Number of shares Carrying amount (In millions of euros) Shares held at 31 December 2022 721,971 38 159,670 8 881,641 46 Acquisitions 86,854,237 5,000 86,854,237 5,000 Capital decrease (86,854,237) (5,000) (86,854,237) (5,000) Net movements 64,888 5 64,888 5 Shares held at 31 December 2023 721,971 38 224,558 13 946,529 51 Acquisitions 16,666,738 1,055 16,666,738 1,055 Capital decrease (16,666,738) (1,055) (16,666,738) (1,055) Net movements 309,669 18 309,669 18 Shares held at 31 December 2024 721,971 38 534,227 31 1,256,198 69 Transactions realised in the framework of an activity of trading and arbitrage transactions on equity indices. Throughout the year 2024, BNP Paribas SA bought back on the market then cancelled 16,666,738 of its own shares in accordance with the Board of directors’ decision of 31 January 2024 to proceed to the share buyback of EUR 1,055 million. At 31 December 2024, the Group holds 1,256,198 BNP Paribas shares representing an amount of EUR 69 million, which were deducted from equity. Undated super subordinated notes eligible as Tier 1 regulatory capital BNP Paribas SA has issued undated super subordinated notes which pay a fixed, fixed adjustable or floating-rate coupon and are redeemable at the end of a fixed period and thereafter at each coupon date or every five years. On 11 January 2023, BNP Paribas SA issued undated super subordinated notes for an amount of EUR 1,250 million which pay a 7.375% fixed-rate coupon. These notes could be redeemed at the end of a period of 7 years. If the notes are not redeemed in 2030, a mid-swap rate EUR 5-year coupon will be paid half-yearly. This issue is eligible to Additional Tier 1 capital. On 28 February 2023, BNP Paribas SA issued undated super subordinated notes for an amount of SGD 600 million which pay a 5.9% fixed-rate coupon. These notes could be redeemed at the end of a period of 5 years. If the notes are not redeemed in 2028, a SGD SORA 5-year rate coupon will be paid half-yearly. This issue is eligible to Additional Tier 1 capital. On 25 March 2024, BNP Paribas SA redeemed the March 2019 issue, for an amount of USD 1,500 million, at the first call date. These notes paid a 6.625% fixed-rate coupon. On 10 January 2025, BNP Paribas SA redeemed the July 2019 issue, for an amount of AUD 300 million. These notes are not eligible to Additional Tier 1 capital at 31 December 2024. The following table summarises the characteristics of these various issues: Date of issue Currency Amount (in millions of currency units) Coupon payment date Rate and term before 1st call date Rate after 1st call date August 2015 USD 1,500 semi-annual 7.375% 10 years USD 5-year swap +5.150% November 2017 USD 750 semi-annual 5.125% 10 years USD 5-year swap +2.838% August 2018 USD 750 semi-annual 7.000% 10 years USD 5-year swap +3.980% July 2019 AUD 300 semi-annual 4.500% 5.5 years AUD 5-year swap +3.372% February 2020 USD 1,750 semi-annual 4.500% 10 years US 5-year CMT +2.944% February 2021 USD 1,250 semi-annual 4.625% 10 years US 5-year CMT +3.340% January 2022 USD 1,250 semi-annual 4.625% 5 years US 5-year CMT +3.196% August 2022 USD 2,000 semi-annual 7.750% 7 years US 5-year CMT +4.899% September 2022 EUR 1,000 semi-annual 6.875% 7.25 years EUR 5-year Mid-swap +4.645% November 2022 USD 1,000 semi-annual 9.250% 5 years US 5-year CMT +4.969% January 2023 EUR 1,250 semi-annual 7.375% 7 years EUR 5-year Mid-swap +4.631% February 2023 SGD 600 semi-annual 5.900% 5 years SGD SORA 5-year +2.674% Total euro-equivalent historical value at 31 December 2024 12 129 (1) Net of shares held in treasury by Group entities. BNP Paribas has the option of not paying interest due on these undated super subordinated notes. Unpaid interest is not carried forward. For notes issued before 2015, the absence of coupon payment is conditional on the absence of dividend payment on BNP Paribas SA ordinary shares or on undated super subordinated note equivalents during the previous year. Interest due is payable once dividend payment on BNP Paribas SA ordinary shares resumes. The contracts relating to these undated super subordinated notes contain a loss absorption clause. Under the terms of this clause, in the event of insufficient regulatory capital, the nominal value of the notes may be reduced in order to serve as a new basis for the calculation of the related coupons until the capital deficiency is made up and the nominal value of the notes is increased to its original amount. The proceeds from these issues are recorded in equity under “Capital and retained earnings”. In accordance with IAS 21, issues denominated in foreign currencies are recognised at their historical value based on their translation into euros at the issue date. Interest on the instruments is deducted from shareholders' equity. At 31 December 2024, the BNP Paribas Group held EUR 29 million of its own undated super subordinated notes which were deducted from shareholders’ equity. Earnings per share Basic earnings per share are calculated by dividing the net income for the period attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the period. The net income attributable to ordinary shareholders is determined by deducting the net income attributable to holders of preferred shares. Diluted earnings per share correspond to the net income for the period attributable to holders of ordinary shares, divided by the weighted average number of shares outstanding as adjusted for the maximum effect of the conversion of dilutive equity instruments into ordinary shares. In-the-money stock subscription options are taken into account in the diluted earnings per share calculation, as are performance shares granted under the Global Share-based Incentive Plan. Conversion of these instruments would have no effect on the net income figure used in this calculation. All stock option and performance share plans are expired. Year to 31 Dec. 2024 Year to 31 Dec. 2023 Net profit used to calculate basic and diluted earnings per ordinary share (In millions of euros)(1) 10,843 10,298 Weighted average number of ordinary shares outstanding during the year 1,133,302,357 1,200,367,337 Effect of potentially dilutive ordinary shares - - Weighted average number of ordinary shares used to calculate diluted earnings per share 1,133,302,357 1,200,367,337 Basic earnings per share (in euros) 9.57 8.58 of which continuing activities (in euros) 9.57 6.12 of which discontinued activities (in euros) - 2.46 Diluted earnings per share (in euros) 9.57 8.58 of which continuing activities (in euros) 9.57 6.12 of which discontinued activities (in euros) - 2.46 The net profit used to calculate basic and diluted earnings per share is the net profit attributable to equity shareholders, adjusted for the remuneration on the undated super subordinated notes issued by BNP Paribas SA treated as preferred share equivalents and on the convertible contingent bonds deducted from shareholders' equity, as well as the related foreign exchange gain or loss impact recognised directly in shareholders’ equity in case of repurchase. The Board of directors will propose to the Annual General Meeting on 13 May 2025, a dividend per share of EUR 4.79 out of the 2024 net income (compared with EUR 4.60 out of the 2023 net income). The proposed distribution amounts to EUR 5,411 million, compared with EUR 5,198 million paid in 2024. This distribution is raised to 60% of the 2024 net income with a share buyback programme of EUR 1,084 million, after receiving the autorisation from the European Central Bank. 8.bMinority interests In millions of euros Capital and retained earnings Changes in assets and liabilities recognised directly in equity that will not be reclassified to profit or loss Changes in assets and liabilities recognised directly in equity that may be reclassified to profit or loss Minority interests Balance at 31 December 2022 4,714 21 38 4,773 Appropriation of net income for 2022 (179) (179) Increases in capital and issues 316 316 Share-based payment plans 1 1 Remuneration on undated super subordinated notes (3) (3) Impact of internal transactions on minority shareholders 21 21 Movements in consolidation scope impacting minority shareholders (90) (90) Acquisitions of additional interests or partial sales of interests (12) (12) Change in commitments to repurchase minority shareholders’ interests (225) (225) Other movements - Changes in assets and liabilities recognised directly in equity (5) 97 92 Net income for 2023 431 431 Balance at 31 December 2023 4,974 16 135 5,125 Appropriation of net income for 2023 (364) (364) Increases in capital and issues 5 5 Share-based payment plans - Remuneration on undated super subordinated notes (8) (8) Impact of internal transactions on minority shareholders - Movements in consolidation scope impacting minority shareholders 258 258 Acquisitions of additional interests or partial sales of interests 192 192 Change in commitments to repurchase minority shareholders’ interests 93 93 Other movements 2 2 Changes in assets and liabilities recognised directly in equity 7 195 202 Net income for 2024 499 499 Balance at 31 December 2024 5,651 23 330 6,004 ➤Main minority interests The assessment of the material nature of minority interests is based on the contribution of the relevant subsidiaries to the Group balance sheet (before elimination of intra-group balances and transactions) and to the Group profit and loss account. In millions of euros 31 December 2024 Year to 31 Dec. 2024 Total assets before elimination of intra-group transactions Revenues Net income Net income and changes in assets and liabilities recognised directly in equity Minority shareholders’ interest (%) Net income attributable to minority interests Net income and changes in assets and liabilities recognised directly in equity - attributable to minority interests Dividends paid to minority shareholders Contribution of the entities belonging to the BGL BNP Paribas Group 100,365 2,019 670 697 34% 243 247 185 Other minority interests 256 454 187 TOTAL 499 701 372 In millions of euros 31 December 2023 Year to 31 Dec. 2023 Total assets before elimination of intra-group transactions Revenues Net income Net income and changes in assets and liabilities recognised directly in equity Minority shareholders’ interest (%) Net income attributable to minority interests Net income and changes in assets and liabilities recognised directly in equity - attributable to minority interests Dividends paid to minority shareholders Contribution of the entities belonging to the BGL BNP Paribas Group 97,504 1,922 674 766 34% 230 260 137 Other minority interests 201 263 45 TOTAL 431 523 182 There are no particular contractual restrictions on the assets of BGL BNP Paribas related to the presence of the minority shareholder. ➤Internal restructuring that led to a change in minority shareholders’ interest in the equity of subsidiaries In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Attributable to shareholders Minority interests Attributable to shareholders Minority interests TEB Finansman Internal sale from BNPP Personal Finance to TEB Holding, raising the Group interest rate to 72.5%. (22) 22 Others - - 1 (1) Total - - (21) 21 ➤Acquisitions of additional interests and partial sales of interests leading to changes in minority interests in the equity of subsidiaries In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Attributable to shareholders Minority interests Attributable to shareholders Minority interests BNP Paribas Bank Polska Partial disposal of 6% of the total share, decreasing the Group’s share to 81.26% 7 196 Artigiancassa SpA Additional acquisition of 26.14% of the total share, increasing the Group's share to 100% 5 (9) Dynamic Credit Group Additional acquisition of 25% of the total share, increasing the Group's share to 73.65% (3) (4) Other (3) (4) (1) 1 Total 4 192 1 (12) Commitments to repurchase minority shareholders’ interests In connection with the acquisition of certain entities, the Group granted minority shareholders put options on their holdings. The total value of these commitments, which are recorded as a reduction in shareholders’ equity, amounted to EUR 369 million at 31 December 2024, compared with EUR 510 million at 31 December 2023. 8.cLegal proceedings and arbitration BNP Paribas (the “Bank”) is party as a defendant in various claims, disputes and legal proceedings (including investigations by judicial or supervisory authorities) in a number of jurisdictions arising in the ordinary course of its business, including inter alia in connection with its activities as market counterparty, lender, employer, investor and taxpayer. The related risks have been assessed by the Bank and are subject, where appropriate, to provisions disclosed in notes 4.n Provisions for contingencies and charges and 4.e Financial assets at amortised cost; a provision is recognised when it is probable that an outflow of resources embodying economic benefits will be required to settle an obligation arising from a past event and a reliable estimate can be made of the amount of the obligation. The main contingent liabilities related to pending legal, governmental, or arbitral proceedings as of 31 December 2024 are described below. The Bank currently considers that none of these proceedings is likely to have a material adverse effect on its financial position or profitability; however, the outcome of legal or governmental proceedings is by definition unpredictable. The Bank and certain of its subsidiaries are defendants in several actions pending before the United States Bankruptcy Court for the Southern District of New York brought by the Trustee appointed for the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”). These actions, known generally as “clawback claims”, are similar to those brought by the BLMIS Trustee under the US Bankruptcy Code and New York state law against numerous institutions, and seek recovery of amounts allegedly received by BNP Paribas entities from BLMIS or indirectly through BLMIS-related “feeder funds” in which BNP Paribas entities held interests. As a result of certain decisions of the Bankruptcy Court and the United States District Court between 2016 and 2018, the majority of the BLMIS Trustee’s actions were either dismissed or substantially narrowed. However, those decisions were either reversed or effectively overruled by subsequent decisions of the United States Court of Appeals for the Second Circuit issued on 25 February 2019 and 30 August 2021. As a result, the BLMIS Trustee refiled certain of these actions and, as of end May 2023, had asserted claims amounting in the aggregate to approximately USD 1.2 billion. As of the end of December 2024, following the dismissal of certain of the BLMIS Trustee’s actions or claims, the aggregate amount of the claims stood at approximately USD 1.1 billion. BNP Paribas has substantial and credible defences to these actions and is defending against them vigorously. Litigation was brought in Belgium by minority shareholders of the previous Fortis Group against the Société Fédérale de Participations et d’Investissement, Ageas and BNP Paribas seeking (amongst other things) damages from BNP Paribas as restitution for part of the BNP Paribas Fortis shares that were contributed to BNP Paribas in 2009, on the ground that the transfer of these shares was null and void. On 29 April 2016, the Brussels Commercial court decided to stay the proceedings until the resolution of the pending Fortis criminal proceeding in Belgium. The criminal proceeding, in which the Public Prosecutor had requested a dismissal, is definitively closed, as the Council Chamber of the Brussels Court of first instance issued on 4 September 2020 a ruling (which since became final) that the charges were time-barred. Certain minority shareholders are continuing the civil proceedings against BNP Paribas and the Société Fédérale de Participations et d’Investissement before the Brussels Commercial court; BNP Paribas continues to defend itself vigorously against the allegations of these shareholders. Hearings on the matter took place in September and October 2024 before the Brussels Commercial court; a judgment is expected to be rendered in the coming months. On 26 February 2020, the Paris Criminal Court found BNP Paribas Personal Finance guilty of misleading commercial practice and concealment of this practice. BNP Paribas Personal Finance was ordered to pay a fine of EUR 187,500 and damages and legal fees to the civil plaintiffs. On 28 November 2023, the Paris Court of Appeals upheld the Paris Criminal Court’s decision relating to misleading commercial practice and the concealment of those practices. As for the damages owed to the civil plaintiffs, though the Paris Court of Appeals adjusted the calculation methodology, the majority of the damages had already been paid by provisional enforcement of the Paris Criminal Court’s judgment. An agreement was also entered into with the Consommation Logement Cadre de Vie association to settle the case with customers wishing to do so. The Bank and one of its US subsidiaries are defendants in a civil class action and related individual actions seeking money damages pending before the United States District Court for the Southern District of New York brought by former Sudanese citizens, now US citizens and legal residents, claiming they were injured by the government of Sudan between 1997 and 2011. Plaintiffs base their claims on the historical facts set forth in the Bank’s 30 June 2014 settlement agreements with US authorities concerning the processing of financial transactions for entities in certain countries subject to US economic sanctions. In early 2024, both the Board of Governors of the Federal Reserve in the United States and the Secrétariat Général of the Autorité de Contrôle Prudentiel et de Résolution in France announced the end of BNP Paribas’s probationary period and the termination of the Cease-and-Desist Order entered into in 2014, marking the completion of BNP Paribas Group’s US sanctions remediation as set forth under this Cease-and-Desist Order. Plaintiffs allege that the transactions processed by the Bank, predominately through its Swiss-based subsidiary, with Sudanese entities subject to US sanctions make the Bank and its US subsidiary liable for injuries perpetrated to plaintiffs by the government of Sudan. On 9 May 2024, the District Court granted plaintiffs’ motion to proceed as a class of all refugees or asylees admitted by the United States who formerly lived in Sudan or South Sudan between November 1997 and December 2011, and ruled that the case would proceed to trial scheduled for 8 September 2025. BNP Paribas has substantial and credible defences to these actions and is defending against them vigorously. BNP Paribas Bank Polska holds mortgage loan portfolios in Swiss franc or indexed to the Swiss franc. The Swiss franc loan agreements, a majority of which were concluded in 2006-2008, were entered into in accordance with industry practices at the time of entry. Like many other financial institutions in Poland, BNP Paribas Bank Polska is a defendant in civil proceedings with retail customers who took out these Swiss franc mortgage loans. BNP Paribas Bank Polska is not a party to any class action proceeding in relation to such mortgage loan agreements. As at 31 December 2024, BNP Paribas Bank Polska was a defendant in 6,596 individual pending court proceedings, in which plaintiffs are demanding either a declaration of invalidity or a declaration of non-enforceability of the mortgage loan agreement and the reimbursement of the payments made thereunder to date. The significant number of claims against banks in relation to these mortgage loans is believed to have been impacted by changes in exchange rates since 2009, and developments in EU and Polish court rulings since 2019. In particular, Polish courts to date have, in the vast majority of cases, ruled that such mortgage loan agreements were invalid or non-enforceable. Since December 2021, BNP Paribas Bank Polska has been conducting individual negotiations with clients with whom it remains in dispute or with whom there is a reasonable risk of entering into a dispute. Like many other financial institutions in the banking, investment, mutual funds and brokerage sectors, the Bank has received or may receive requests for information from, or be subject to investigations by supervisory, governmental or self-regulatory agencies. The Bank responds to such requests, and cooperates with the relevant authorities and regulators and seeks to address and remedy any issues that may arise. In 2023, BNP Paribas premises (along with those of other financial institutions) were searched by the French financial prosecutor’s office; BNP Paribas was informed that the office had opened a preliminary investigation relating to French securities transactions. There are no other legal, governmental or arbitral proceedings (including any such proceedings which are pending or threatened) that could have, or during the last twelve months have had, significant effects on the Bank’s financial condition or profitability. 8.dBusiness combinations and loss of control or significant influence Operations of 2024 UkrSibbank The easing of a number of restrictions previously imposed by the National Bank of Ukraine made it possible to re-establish the conditions for exercising control as defined by IFRS 10, which had the effect of changing the consolidation method from equity method to full consolidation method. This change of consolidation method was reflected in the increase in the Group’s balance sheet of EUR 3 billion, in particular in financial assets at amortised cost and led to the recognition of badwill of EUR 226 million. Cetelem SA de CV On 27 March 2024, BNP Paribas Personal Finance sold 80% of its stake of its Mexican subsidiary Cetelem SA de CV. The Group BNP Paribas lost exclusive control of this entity but kept a significant influence. This partial disposal is accompanied by an agreement for the future disposal of the residual interest, thereby depriving the Group of the return on the shares held, and leading to the recognition of a debt of EUR 125 million. The loss of control led to the recognition of a net gain on disposal of EUR 119 million and to a decrease of the Group’s balance sheet by EUR 3 billion, in particular in financial assets at amortised cost. BCC Vita SpA On 15 May 2024, BNP Paribas Cardif SA acquired 51% of the capital of BCC Vita SpA, together with a purchase agreement of 19% additional holding. BNP Paribas Group acquired exclusive control of this entity to the extent of 70% and the entity was consolidated using the full consolidation method. This transaction resulted in the increase of the Group’s balance sheet at the acquisition date by EUR 4 billion, in particular in investments in insurance activities. The goodwill related to this operation was EUR 100 million. Neuflize Vie On 31 October 2024, BNP Paribas Cardif SA acquired 100% of the capital of Neuflize Vie. BNP Paribas Group acquired exclusive control of this entity and consolidated it using the full consolidation method. This transaction resulted in the increase of the Group’s balance sheet by EUR 12 billion at the acquisition date, in particular in investments in insurance activities. The badwill related to this operation was EUR 15 million. Operation of 2023 Partnership with Stellantis On 3 April 2023, BNP Paribas Personal Finance became the exclusive partner of Stellantis, a captive company in its financing activities across three strategic markets: Germany, Austria and the United Kingdom. This operation involved the purchase of three entities in these three countries, in conjunction with the sale of activities to various Stellantis joint ventures in France, Italy and Spain. This restructuring increased the Group’s balance sheet by EUR 8 billion, in particular in financial assets at amortised cost, and led to the recognition of a net gain on disposal of EUR 54 million and of a goodwill of EUR 173 million. 8.eDiscontinued activities On 18 December 2021, BNP Paribas concluded an agreement with BMO Financial Group for the sale of 100% of its retail and commercial banking activities in the United States, operated by the BancWest cash-generating unit, for a total consideration of USD 16.3 billion in cash. The transaction was closed on 1 February 2023 following receipt of all regulatory approvals by BMO Financial Group. The net capital gain on the disposal amounted to EUR 2.9 billion, recognised in net income from discontinued activities in 2023. 8.fSignificant restrictions in subsidiaries, joint ventures and associates Significant restrictions related to the ability of entities to transfer cash to the Group The ability of entities to pay dividends or to repay loans and advances depends, inter alia, on local regulatory requirements for capitalisation and legal reserves, as well as the entities’ financial and operating performance. During 2024, none of the BNP Paribas Group entities were subject to significant restrictions other than those related to regulatory requirements. Significant restrictions relative to the Group’s ability to use the assets lodged in consolidated structured entities Access to the assets of consolidated structured entities in which third-party investors have invested is limited inasmuch as these entities’ assets are reserved for the holders of units or securities. These assets total EUR 48 billion at 31 December 2024 (EUR 42 billion at 31 December 2023). Significant restrictions related to the Group’s ability to use assets pledged as collateral or under repurchase agreements The financial instruments pledged by the BNP Paribas Group as collateral or under repurchase agreements are presented in notes 4.p and 6.d. Significant restrictions related to liquidity reserves Significant restrictions related to liquidity reserves correspond to the mandatory deposits placed with central banks presented in chapter 5 of the Universal registration document under Liquidity risk. Assets representative of unit-linked insurance contracts Assets representative of unit-linked insurance contracts designated as at fair value through profit or loss, which amount to EUR 115.1 billion at 31 December 2024 (compared with EUR 95.8 billion at 31 December 2023), are held for the benefit of the holders of these contracts. 8.gStructured entities The BNP Paribas Group is engaged in transactions with sponsored structured entities mainly through its activities of securitisation of financial assets - as either originator or sponsor, fund management and specialised asset financing. In addition, the BNP Paribas Group is also engaged in transactions with structured entities that it has not sponsored, notably in the form of investments in funds or securitisation vehicles. The method for assessing control for structured entities is detailed in note 1.b.2. Consolidation methods. Consolidated structured entities The main categories of consolidated structured entities are: ABCP (Asset-Backed Commercial Paper) conduits: the ABCP securitisation conduits Starbird and Matchpoint fund securitisation transactions managed by the BNP Paribas Group on behalf of its customers. Details on how these are financed and the Group’s risk exposure are presented in chapter 5 of the Universal registration document under Securitisation as sponsor on behalf of clients/Short-term refinancing. Proprietary securitisation: proprietary securitisation positions originated and held by the BNP Paribas Group are detailed in chapter 5 of the Universal registration document under Proprietary securitisation activities (originator). Funds managed by the Group: the BNP Paribas Group structures different types of funds for which it may act as fund manager, investor, custodian or guarantor. These funds are consolidated when the Group is both the manager and a significant investor and is therefore exposed to variable returns. Unconsolidated structured entities The BNP Paribas Group has entered into relations with unconsolidated structured entities in the course of its business activities to meet the needs of its customers. Information relative to interests in sponsored structured entities The main categories of unconsolidated sponsored structured entities are as follows: Securitisation: the BNP Paribas Group structures securitisation vehicles for the purposes of offering customers financing solutions for their assets, either directly or through consolidated ABCP conduits. Each vehicle finances the purchase of customers’ assets (receivables, bonds, etc.) primarily by issuing bonds backed by these assets and whose redemption is linked to their performance. Funds: the Group structures and manages funds to offer investment opportunities to its customers. Dedicated or public funds are offered to institutional and individual customers and are distributed and commercially monitored by the BNP Paribas Group. The entities of the BNP Paribas Group responsible for managing these funds may receive management fees and performance commission. The BNP Paribas Group may hold units in these funds, as well as units in funds dedicated to the insurance activity not managed by the BNP Paribas Group. Asset financing: the BNP Paribas Group establishes and finances structured entities that acquire assets (aircraft, ships, etc.) intended for lease, and the lease payments received by the structured entity are used to repay the financing, which is guaranteed by the asset held by the structured entity. Other: on behalf of its customers, the Group may also structure entities which invest in assets or are involved in debt restructuring. An interest in an unconsolidated structured entity is a contractual or non-contractual link that exposes the BNP Paribas Group to variable returns from the performance of the entity. The Group’s assets and liabilities related to the interests held in sponsored structured entities are as follows: In millions of euros, at 31 December 2024 Securitisation Funds Asset Financing Others Total INTERESTS ON THE GROUP BALANCE SHEET ASSETS Financial instruments at fair value through profit or loss 2 1,198 1 125 1,326 Derivatives used for hedging purposes 5 1,367 6 58 1,436 Financial instruments at fair value through equity 69 69 Financial assets at amortised cost 27,785 184 2,166 7 30,142 Other assets 105 3 108 Investments and other assets related to insurance activities 37,026 37,026 TOTAL ASSETS 27,861 39,880 2,173 193 70,107 LIABILITIES Financial instruments at fair value through profit or loss 2,952 64 108 3,124 Derivatives used for hedging purposes 4 4 Financial liabilities at amortised cost 90 13,313 240 210 13,853 Other liabilities 2 326 7 335 TOTAL LIABILITIES 92 16,591 311 322 17,316 MAXIMUM EXPOSURE TO LOSS 39,265 41,022 2,173 816 83,276 SIZE OF STRUCTURED ENTITIES(1) 91,098 367,479 7,677 4,580 470,834 In millions of euros, at 31 December 2023 Securitisation Funds Asset Financing Others Total INTERESTS ON THE GROUP BALANCE SHEET ASSETS Financial instruments at fair value through profit or loss 1 1,374 1 480 1,856 Derivatives used for hedging purposes 7 1,005 9 16 1,037 Financial instruments at fair value through equity 105 105 Financial assets at amortised cost 23,623 262 1,992 37 25,914 Other assets 84 1 85 Investments and other assets related to insurance activities 41,406 41,406 TOTAL ASSETS 23,736 44,131 2,002 534 70,403 LIABILITIES Financial instruments at fair value through profit or loss 528 41 438 1,007 Derivatives used for hedging purposes - Financial liabilities at amortised cost 116 13,223 242 299 13,880 Other liabilities 2 251 57 310 TOTAL LIABILITIES 118 14,002 340 737 15,197 MAXIMUM EXPOSURE TO LOSS 34,922 44,657 3,097 1,517 84,193 SIZE OF STRUCTURED ENTITIES(1) 199,055 344,598 6,611 4,362 554 626 The size of sponsored structured entities equals the total assets of the structured entity for securitisation vehicles, the net asset value for funds (excluding management mandates) and the structured entity’s total assets or the amount of the BNP Paribas Group’s commitment for asset financing and other structures. The BNP Paribas Group’s maximum exposure to losses on sponsored structured entities is the carrying amount of the assets, excluding, for financial assets at fair value through equity, changes in value taken directly to equity, as well as the nominal amount of the financing commitments and guarantee commitments given and the notional amount of credit default swaps (CDS) sold. Information relative to interests in non-sponsored structured entities The main interests held by the BNP Paribas Group when it acts solely as an investor in non-sponsored structured entities are detailed below: Units in funds that are not managed by the Group, which are held by the Insurance business line: as part of the asset allocation strategy corresponding to investments related to the premiums for unit-linked contracts or for the general fund, the Insurance business line subscribes to units of structured entities. These short- or medium-term investments are held for their financial performance and meet the risk diversification criteria inherent to the business. They amounted to EUR 26 billion at 31 December 2024 (EUR 28 billion at 31 December 2023). Changes in value and the majority of the risks associated with these investments are borne by policyholders in the case of assets representative of unit-linked contracts, and by the insurer in the case of assets representative of the general fund; Other investments in funds not managed by the Group: as part of its trading business, the BNP Paribas Group invests in structured entities without any involvement in either managing or structuring these entities (investments in mutual funds, securities funds or alternative funds), particularly as economic hedge for structured products sold to customers. The Group also invests in minority holdings in investment funds, in support of companies, as part of its venture capital business. These investments amounted to EUR 23 billion at 31 December 2024 (12 billion at 31 December 2023); Investments in securitisation vehicles: the breakdown of the Group’s exposure and the nature of the securities held are presented in chapter 5 of the Universal registration document in the section Securitisation as investor. Besides, in the framework of its asset financing activity, the BNP Paribas Group provides financing to structured entities that are established by and for its clients and whose purpose is to acquire assets (aircraft, ships, etc.) intended for lease to those same clients. These financings amount to EUR 3 billion at 31 December 2024 (EUR 6 billion at 31 December 2023). 8.hCompensation and benefits awarded to the Group’s corporate officers The Group’s corporate officers, their spouse and their dependent children are considered related parties. The remuneration and benefits policy relating to the Group’s corporate officers, as well as the detailed information on an individual basis, are presented in chapter 2 Corporate governance of the Universal registration document. ➤Remuneration and benefits awarded to the Group’s corporate officers and to directors representing the employees In euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Gross remuneration Gross remuneration paid during the year including benefits in kind 11,064,899 9,319,675 Remuneration linked to the term of directorship (paid to the trade unions) 519,062 428,648 Welfare benefits: premiums paid by BNP Paribas during the year 28,179 26,788 Post-employment benefits 1,207,702 1,141,635 Share-based payments: conditional long-term incentive plan (LTIP) - fair value at grant date(1) 1,185,001 1,404,857 Valuation according to the method described in note 8.e. At 31 December 2024, no corporate officer is eligible for a contingent collective defined-benefit top-up pension plan. Remuneration linked to the term of directorship paid to members of the Board of directors Remuneration linked to the term of directorship paid to all members of the Board of directors in 2024 amounts to EUR 1,850,000. This amount was 1,540,000 in 2023. The amount paid in 2024 to members other than corporate officers was EUR 1,696,445 compared with EUR 1,410,484 in 2023 Loans, advances and guarantees granted to the Group’s corporate officers At 31 December 2024, the total outstanding loans granted directly or indirectly to the Group’s corporate officers and their spouse and dependent children amounted to EUR 4,628,369 (EUR 5,770,986 at 31 December 2023). These loans representing normal transactions were carried out on an arm’s length basis. 8.iOther related parties Other related parties of the BNP Paribas Group comprise consolidated companies (including entities consolidated under the equity method) and entities managing post-employment benefit plans offered to Group employees (except for multi-employer and multi-industry schemes). Transactions between the BNP Paribas Group and related parties are carried out on an arm’s length basis. Relations between consolidated companies A list of companies consolidated by the BNP Paribas Group is provided in note 8.k Scope of consolidation. Transactions and outstanding balances between fully-consolidated entities are eliminated. The tables below show transactions with entities accounted for under the equity method. ➤Outstanding balances of related-party transactions In millions of euros, at 31 December 2024 31 December 2023 Joint ventures Associates Joint ventures Associates ASSETS On demand accounts 2 5 Loans 3,343 705 3,510 88 Securities 167 111 356 Other assets 74 49 1 52 Investments and other assets related to insurance activities 1 3 TOTAL ASSETS 3,585 867 3,867 148 LIABILITIES On demand accounts 29 750 337 1,118 Other borrowings 7 470 46 588 Other liabilities 46 32 4 18 Liabilities related to insurance contracts 195 TOTAL LIABILITIES 82 1,252 387 1,919 FINANCING COMMITMENTS AND GUARANTEE COMMITMENTS Financing commitments given 248 19 538 Guarantee commitments given 152 7 111 TOTAL FINANCING COMMITMENTS AND GUARANTEE COMMITMENTS - 400 26 649 The Group also carries out trading transactions with related parties involving derivatives (swaps, options and forwards, etc.) and financial instruments purchased or underwritten and issued by them (equities, bonds, etc.). ➤Related-party profit and loss items In millions of euros Year to 31 Dec. 2024 Year to 31 Dec. 2023 Joint ventures Associates Joint ventures Associates Interest income 170 13 155 9 Interest expense (7) (38) (13) (75) Commission income 5 286 1 284 Commission expense (1) (107) (1) (78) Services provided 2 Services received 1 Lease income Net income from insurance activities 6 8 Total 168 160 142 150 Group entities involved in certain post-employment benefit plans offered to Group employees In Belgium, BNP Paribas Fortis funds a number of pension schemes managed by AG Insurance in which the BNP Paribas Group has a 25% equity interest. In other countries, post-employment benefit plans are generally managed by independent fund managers or independent insurance companies, and occasionally by Group companies, in particular BNP Paribas Asset Management. At 31 December 2024, the value of plan assets managed by Group companies or by companies over which the Group exercises significant influence was EUR 3,858 million (EUR 3,864 million at 31 December 2023). Amounts received by Group companies in the year to 31 December 2024 totalled EUR 6 million and were mainly composed of management and custody fees (EUR 5 million at 31 December 2023). 8.jFair value of financial instruments carried at amortised cost The information supplied in this note must be used and interpreted with the greatest caution for the following reasons: these fair values are an estimate of the value of the relevant instruments at 31 December 2024. They are liable to fluctuate from day to day as a result of changes in various parameters, such as interest rates and credit quality of the counterparty. In particular, they may differ significantly from the amounts actually received or paid on maturity of the instrument. In most cases, the fair value is not intended to be realised immediately, and in practice might not be realised immediately. Consequently, this fair value does not reflect the actual value of the instrument to BNP Paribas as a going concern; most of these fair values are not meaningful, and hence are not taken into account in the management of the commercial banking activities which use these instruments; estimating a fair value for financial instruments carried at historical cost often requires the use of modelling techniques, hypotheses and assumptions that may vary from bank to bank. This means that comparisons between the fair values of financial instruments carried at historical cost as disclosed by different banks may not be meaningful; the fair values shown below do not include the fair values of finance lease transactions, non-financial instruments such as property, plant and equipment, goodwill and other intangible assets such as the value attributed to demand deposit portfolios or customer relationships. Consequently, these fair values should not be regarded as the actual contribution of the instruments concerned to the overall valuation of the BNP Paribas Group. In millions of euros, at 31 December 2024 Estimated fair value Carrying value Level 1 Level 2 Level 3 Total FINANCIAL ASSETS Loans and advances to credit institutions and customers(1) 114,149 753,614 867,763 880,267 Debt securities at amortised cost (note 4.e) 103,780 39,122 1,423 144,325 146,975 FINANCIAL LIABILITIES Deposits from credit institutions and customers 1,101,596 1,101,596 1,101,729 Debt securities (note 4.h) 80,401 119,429 199,830 198,119 Subordinated debt (note 4.h) 23,087 8,743 31,830 31,799 Finance leases excluded. In millions of euros, at 31 December 2023 Estimated fair value Carrying value Level 1 Level 2 Level 3 Total FINANCIAL ASSETS Loans and advances to credit institutions and customers(1) 91,565 719,554 811,119 835,860 Debt securities at amortised cost (note 4.e) 88,984 29,720 989 119,693 121,161 FINANCIAL LIABILITIES Deposits from credit institutions and customers 1,083,782 1,083,782 1,083,724 Debt securities (note 4.h) 77,165 115,102 192,267 191,482 Subordinated debt (note 4.h) 17,128 7,588 24,716 24,743 Finance leases excluded. The valuation techniques and assumptions used by BNP Paribas ensure that the fair value of financial assets and liabilities carried at amortised cost is measured on a consistent basis throughout the Group. Fair value is based on prices quoted in an active market when these are available. In other cases, fair value is determined using valuation techniques such as discounting of estimated future cash flows for loans, liabilities and debt securities at amortised cost, or specific valuation models for other financial instruments as described in note 1, Summary of material accounting policies applied by the BNP Paribas Group. The description of the fair value hierarchy levels is also presented in the accounting principles (see note 1.f.10). In the case of loans, liabilities and debt securities at amortised cost that have an initial maturity of less than one year (including demand deposits) or of most regulated savings products, fair value equates to carrying amount. These instruments have been classified in Level 2, except for loans to customers, which are classified in Level 3. 8.kScope of consolidation BNP Paribas, a société anonyme (Public Limited Company), registered in France, is the Group’s lead company, which holds key positions in its three operating divisions: Corporate & Institutional Banking (CIB), Commercial, Personal Banking & Services (CPBS) and Investment & Protection Services (IPS). During the year, the parent company did not change its name. BNP Paribas has its principal place of business in France and its head office is located at 16 boulevard des Italiens 75009 Paris, France. Business Name Country 31 December 2024 31 December 2023 Method Voting (%) Interest (%) Ref. Method Voting (%) Interest (%) Ref. BNP Paribas SA France (1) (1) BNPP SA (Argentina branch) Argentina Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Australia branch) Australia Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Austria branch) Austria Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Bahrain branch) Bahrain Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Belgium branch) Belgium Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Bulgaria branch) Bulgaria Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Canada branch) Canada Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Czech Republic branch) Czech Rep. Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Denmark branch) Denmark Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Finland branch) Finland Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Germany branch) Germany Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Greece branch) Greece Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Guernsey branch) Guernsey Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Hong Kong branch) Hong Kong Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Hungary branch) Hungary Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (India branch) India Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Ireland branch) Ireland Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Italy branch) Italy Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Japan branch) Japan Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Jersey branch) Jersey Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Kuwait branch) Kuwait Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Luxembourg branch) Luxembourg Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Malaysia branch) Malaysia Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Monaco branch) Monaco Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Netherlands branch) Netherlands Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Norway branch) Norway Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Philippines branch) Philippines Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Poland branch) Poland Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Portugal branch) Portugal Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Qatar branch) Qatar Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Republic of Korea branch) Rep. of Korea Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Romania branch) Romania Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Saudi Arabia branch) Saudi Arabia Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Singapore branch) Singapore Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (South Africa branch) South Africa Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Spain branch) Spain Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Sweden branch) Sweden Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Switzerland branch) Switzerland Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Taiwan branch) Taiwan Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Thailand branch) Thailand Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (United Arab Emirates branch) United Arab Emirates Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (United Kingdom branch) UK Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (United States branch) USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP SA (Viet Nam branch) Viet Nam Full 100.0% 100.0% Full 100.0% 100.0% CORPORATE & INSTITUTIONAL BANKING EMEA (Europe, Middle East, Africa) France Austin Finance (s) France S4 BNPP Financial Markets France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Eurotitrisation France Equity 22.0% 22.0% Equity 22.0% 22.0% V4 Exane France S4 Exane (Germany branch) Germany S4 Exane (Italy branch) Italy S4 Exane (Spain branch) Spain S4 Exane (Sweden branch) Sweden S4 Exane (Switzerland branch) Switzerland S4 Exane (United Kingdom branch) UK S4 Exane Asset Management France Equity 35.0% 35.0% Equity 35.0% 35.0% V2 Exane Derivatives France S4 Exane Derivatives (Switzerland branch) Switzerland S4 Exane Derivatives (United Kingdom branch) UK S4 Exane Derivatives Gerance France S4 Exane Finance France Full 100.0% 100.0% Full 100.0% 100.0% FCT Juice (t) France Full - - Full - - Financière des Italiens (s) France S4 Financière du Marché Saint Honoré France Full 100.0% 100.0% Full 100.0% 100.0% Optichamps (s) France S4 Parilease France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Participations Opéra (s) France S4 Services Logiciels d’Intégration Boursière France Equity (3) 66.6% 66.6% Equity (3) 66.6% 66.6% Services Logiciels d’Intégration Boursière (Portugal branch) Portugal Equity (3) 66.6% 66.6% Equity (3) 66.6% 66.6% E2 SNC Taitbout Participation 3 France Full 100.0% 100.0% Full 100.0% 100.0% Société Orbaisienne de Participations France Full 100.0% 100.0% Full 100.0% 100.0% Uptevia SA France Equity (3) 50.0% 50.0% Equity (3) 50.0% 50.0% E3 Other European countries Allfunds Group PLC UK Equity 12.5% 12.4% V4 Equity 12.1% 12.0% Aries Capital DAC Ireland Full 100.0% 0.0% Full 100.0% 0.0% AssetMetrix Germany Equity 23.1% 23.1% V4 Equity 22.3% 22.3% V4 BNP PUK Holding Ltd UK Full 100.0% 100.0% Full 100.0% 100.0% BNPP Bank JSC Russia Full 100.0% 100.0% Full 100.0% 100.0% BNPP Emissions Und Handels GmbH Germany Full 100.0% 100.0% Full 100.0% 100.0% BNPP Fund Administration Services Ireland Ltd Ireland Full 100.0% 100.0% Full 100.0% 100.0% BNPP Ireland Unlimited Co Ireland Full 100.0% 100.0% Full 100.0% 100.0% BNPP Islamic Issuance BV Netherlands Full 100.0% 100.0% Full 100.0% 100.0% BNPP Issuance BV Netherlands Full 100.0% 100.0% Full 100.0% 100.0% BNPP Net Ltd UK S3 Full 100.0% 100.0% BNPP Prime Brokerage International Ltd Ireland Full 100.0% 100.0% Full 100.0% 100.0% BNPP Suisse SA Switzerland Full 100.0% 100.0% Full 100.0% 100.0% BNPP Suisse SA (Guernsey branch) Guernsey Full 100.0% 100.0% Full 100.0% 100.0% BNPP Technology LLC Russia S1 Full 100.0% 100.0% BNPP Trust Corp UK Ltd UK Full 100.0% 100.0% Full 100.0% 100.0% BNPP Vartry Reinsurance DAC Ireland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Diamante Re SRL Italy Full 100.0% 100.0% Full 100.0% 100.0% Ejesur SA Spain S1 Exane Solutions Luxembourg SA Luxembourg Full 100.0% 100.0% Full 100.0% 100.0% Expo Atlantico EAII Investimentos Imobiliarios SA (s) Portugal Full - - Full - - Expo Indico EIII Investimentos Imobiliarios SA (s) Portugal Full - - Full - - FScholen Belgium Equity (3) 50.0% 50.0% Equity (3) 50.0% 50.0% Greenstars BNPP Luxembourg Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Kantox European Union SL Spain Full 100.0% 100.0% Full 100.0% 100.0% V1/D3 Kantox Holding Ltd UK Full 100.0% 100.0% Full 100.0% 100.0% V1/D3 Kantox Ltd UK Full 100.0% 100.0% Full 100.0% 100.0% V1/D3 Madison Arbor Ltd (t) Ireland Full - - Full - - Matchpoint Finance PLC (t) Ireland Full - - Full - - Ribera Del Loira Arbitrage Spain Full 100.0% 100.0% Full 100.0% 100.0% Securasset SA Luxembourg Full 100.0% 0.0% Full 100.0% 0.0% Single Platform Investment Repackaging Entity SA Luxembourg Full 100.0% 100.0% Full 100.0% 100.0% Utexam Logistics Ltd Ireland S3 Utexam Solutions Ltd Ireland S3 Volantis SARL (s) Luxembourg Full - - E1 Middle East BNPP Investment Co KSA Saudi Arabia Full 100.0% 100.0% Full 100.0% 100.0% AMERICAS Banco BNPP Brasil SA Brazil Full 100.0% 100.0% Full 100.0% 100.0% BNPP Capital Services Inc USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP Colombia Corporacion Financiera SA Colombia Full 100.0% 100.0% Full 100.0% 100.0% BNPP EQD Brazil Fund Fundo de Investmento Multimercado (s) Brazil Full - - Full - - BNPP Financial Services LLC USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP FS LLC USA S1 Full 100.0% 100.0% BNPP IT Solutions Canada Inc Canada Full 100.0% 100.0% Full 100.0% 100.0% BNPP Mexico Holding Mexico Full 100.0% 100.0% Full 100.0% 100.0% BNPP Mexico SA Institucion de Banca Multiple Mexico Full 100.0% 100.0% Full 100.0% 100.0% BNPP Proprietario Fundo de Investimento Multimercado (s) Brazil Full - - Full - - BNPP RCC Inc USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP Securities Corp USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP US Investments Inc USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP US Wholesale Holdings Corp USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP USA Inc USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP VPG Brookline Cre LLC (s) USA Full - - Full - - BNPP VPG EDMC Holdings LLC (s) USA Full - - Full - - BNPP VPG Express LLC (s) USA Full - - Full - - BNPP VPG I LLC (s) USA Full - - Full - - BNPP VPG II LLC (s) USA Full - - Full - - BNPP VPG III LLC (s) USA Full - - Full - - BNPP VPG IV LLC (s) USA Full - - Full - - E2 BNPP VPG Master LLC (s) USA Full - - Full - - Corporation BNPP Canada (Ex- BNPP Canada Corp) Canada Full 100.0% 100.0% Full 100.0% 100.0% Dale Bakken Partners 2012 LLC USA S2 Decart Re Ltd Bermuda Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% FSI Holdings Inc USA Full 100.0% 100.0% Full 100.0% 100.0% Starbird Funding Corp (t) USA Full - - Full - - PACIFIC ASIA Andalan Multi Guna PT Indonesia Full 100.0% 100.0% Full 100.0% 100.0% Bank BNPP Indonesia PT Indonesia Full 100.0% 100.0% Full 100.0% 100.0% BNPP Arbitrage Hong Kong Ltd Hong Kong Full 100.0% 100.0% Full 100.0% 100.0% BNPP China Ltd China Full 100.0% 100.0% Full 100.0% 100.0% BNPP Finance Hong Kong Ltd Hong Kong Full 100.0% 100.0% Full 100.0% 100.0% BNPP Fund Services Australasia Pty Ltd Australia Full 100.0% 100.0% Full 100.0% 100.0% BNPP Fund Services Australasia Pty Ltd (New Zealand branch) New Zealand Full 100.0% 100.0% Full 100.0% 100.0% BNPP Global Securities Operations Private Ltd India S4 BNPP India Holding Private Ltd India Full 100.0% 100.0% Full 100.0% 100.0% BNPP India Solutions Private Ltd India Full 100.0% 100.0% Full 100.0% 100.0% BNPP Malaysia Berhad Malaysia Full 100.0% 100.0% Full 100.0% 100.0% BNPP Securities Asia Ltd Hong Kong Full 100.0% 100.0% Full 100.0% 100.0% BNPP Securities China Ltd China Full 100.0% 100.0% E2 BNPP Securities India Private Ltd India Full 100.0% 100.0% Full 100.0% 100.0% BNPP Securities Japan Ltd Japan Full 100.0% 100.0% Full 100.0% 100.0% BNPP Securities Korea Co Ltd Rep. of Korea Full 100.0% 100.0% Full 100.0% 100.0% BNPP Securities Taiwan Co Ltd Taiwan Full 100.0% 100.0% Full 100.0% 100.0% BNPP Sekuritas Indonesia PT Indonesia Full 100.0% 100.0% Full 100.0% 100.0% BPP Holdings Pte Ltd Singapore Full 100.0% 100.0% Full 100.0% 100.0% COMMERCIAL, PERSONAL BANKING & SERVICES COMMERCIAL & PERSONAL BANKING IN THE EUROZONE Commercial & Personal Banking in France 2SF - Société des Services Fiduciaires France Equity (3) 33.3% 33.3% Equity (3) 33.3% 33.3% Banque de Wallis et Futuna France Full (1) 51.0% 51.0% Full (1) 51.0% 51.0% BNPP Antilles Guyane France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% BNPP Développement France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Développement Oblig France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Factor France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% BNPP Factor (Portugal branch) Portugal Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% E2 BNPP Factor (Spain branch) Spain Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% BNPP Factor Sociedade Financeira de Credito SA Portugal S4 BNPP Nouvelle Calédonie France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% BNPP Réunion France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Compagnie pour le Financement des Loisirs France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Copartis France Full 100.0% 100.0% Full 100.0% 100.0% Euro Securities Partners France S2 GIE Ocean France Full 100.0% 100.0% Full 100.0% 100.0% Jivago Holding France Full 100.0% 100.0% Full 100.0% 100.0% Partecis France Equity (3) 50.0% 50.0% Equity (3) 50.0% 50.0% Paylib Services France Equity 14.3% 14.3% Equity 14.3% 14.3% Portzamparc France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% BNL banca commerciale Banca Agevolarti SPA (Ex- Artigiancassa SPA) Italy Full 100.0% 100.0% Full 100.0% 100.0% V1 Banca Nazionale Del Lavoro SPA Italy Full 100.0% 100.0% Full 100.0% 100.0% BNPP BNL Equity Investment SPA Italy Full 100.0% 100.0% E1 EMF IT 2008 1 SRL (t) Italy Full - - Full - - Era Uno SRL (t) Italy Full - - Full - - Eutimm SRL Italy Full 100.0% 100.0% Full 100.0% 100.0% Financit SPA Italy Full 60.0% 60.0% Full 60.0% 60.0% Immera SRL (t) Italy Full - - Full - - International Factors Italia SPA Italy Full 99.9% 99.9% V1 Full 99.7% 99.7% Permicro SPA Italy Equity 21.9% 21.9% Equity 21.9% 21.9% Servizio Italia SPA Italy Full 100.0% 100.0% Full 100.0% 100.0% Sviluppo HQ Tiburtina SRL Italy Full 100.0% 100.0% Full 100.0% 100.0% Tierre Securitisation SRL (t) Italy Full - - Full - - Vela OBG SRL (t) Italy Full - - Full - - Vela RMBS SRL (t) Italy S3 Worldline Merchant Services Italia SPA Italy Equity 20.0% 20.0% Equity 20.0% 20.0% Commercial & Personal Banking in Belgium Axepta BNPP Benelux Belgium Full 100.0% 99.9% Full 100.0% 99.9% Bancontact Paytoniq Company Belgium Equity 22.5% 22.5% Equity 22.5% 22.5% BASS Master Issuer NV (t) Belgium Full - - Full - - Batopin Belgium Equity 25.0% 25.0% Equity 25.0% 25.0% Belgian Mobile ID Belgium Equity 12.2% 12.2% Equity 12.2% 12.2% BNPP Commercial Finance Ltd UK Full 100.0% 99.9% Full 100.0% 99.9% BNPP Factor AS Denmark Full 100.0% 99.9% Full 100.0% 99.9% BNPP Factor GmbH Germany Full 100.0% 100.0% V4 Full 100.0% 99.9% BNPP Factoring Support Netherlands Full 100.0% 99.9% Full 100.0% 99.9% BNPP Fortis Belgium Full 99.9% 99.9% Full 99.9% 99.9% BNPP Fortis (Spain branch) Spain S1 Full 99.9% 99.9% BNPP Fortis (United States branch) USA Full 99.9% 99.9% Full 99.9% 99.9% BNPP Fortis Factor NV Belgium Full 100.0% 99.9% Full 100.0% 99.9% BNPP Fortis Film Finance Belgium Full 100.0% 99.9% Full 100.0% 99.9% BNPP Fortis Funding SA Luxembourg Full 100.0% 99.9% Full 100.0% 99.9% BNPP FPE Belgium Belgium Full 100.0% 99.9% Full 100.0% 99.9% BNPP FPE Expansion Belgium S3 Full 100.0% 99.9% BNPP FPE Management Belgium Full 100.0% 99.9% Full 100.0% 99.9% BNPPF Credit Brokers (Ex-Demetris NV) Belgium Full 100.0% 99.9% Full 100.0% 99.9% Bpost Banque Belgium S4 Full 100.0% 99.9% Credissimo Belgium Full 100.0% 99.9% Full 100.0% 99.9% Credissimo Hainaut SA Belgium Full 99.7% 99.7% Full 99.7% 99.7% Crédit pour Habitations Sociales Belgium Full 81.7% 81.6% Full 81.7% 81.6% Epimede (s) Belgium Equity - - Equity - - Esmee Master Issuer (t) Belgium Full - - Full - - Immobilière Sauveniere SA Belgium Full 100.0% 99.9% Full 100.0% 99.9% Isabel SA NV Belgium Equity 25.3% 25.3% Equity 25.3% 25.3% Microstart Belgium Full 43.9% 77.5% V4 Full 42.3% 76.8% Private Equity Investments (a) BE/FR/LU FV - - FV - - Sagip Belgium Full 100.0% 100.0% Full 100.0% 100.0% Sowo Invest SA NV Belgium Full 87.5% 87.5% Full 87.5% 87.5% Commercial & Personal Banking in Luxembourg BGL BNPP Luxembourg Full 66.0% 65.9% Full 66.0% 65.9% BGL BNPP (Germany branch) Germany Full 66.0% 65.9% Full 66.0% 65.9% BNPP Lease Group Luxembourg SA Luxembourg Full 100.0% 65.9% Full 100.0% 65.9% BNPP SB Re Luxembourg Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cofhylux SA Luxembourg S4 Compagnie Financière Ottomane SA Luxembourg Full 97.4% 97.4% V4 Full 97.3% 97.3% Le Sphinx Assurances Luxembourg SA Luxembourg Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Luxhub SA Luxembourg Equity 28.0% 18.5% Equity 28.0% 18.5% Visalux Luxembourg Equity 25.2% 16.6% Equity 25.2% 16.6% V3 COMMERCIAL & PERSONAL BANKING OUTSIDE THE EUROZONE Europe-Mediterranean Bank of Nanjing China Equity 16.2% 16.2% V1/V3 Equity 13.8% 13.8% V3 Banque Internationale pour le Commerce et l’Industrie de la Côte d’Ivoire Ivory Coast S2 Banque Internationale pour le Commerce et l’Industrie du Sénégal Senegal S2 Banque Marocaine pour le Commerce et l’Industrie Morocco Full 67.0% 67.0% Full 67.0% 67.0% Banque Marocaine pour le Commerce et l’Industrie Banque Offshore Morocco Full 100.0% 67.0% Full 100.0% 67.0% Bantas Nakit AS Türkiye Equity (3) 33.3% 16.7% Equity (3) 33.3% 16.7% BDSI Morocco Full 100.0% 96.4% Full 100.0% 96.4% BGZ Poland ABS1 DAC (t) Ireland Full - - Full - - BICI Bourse Ivory Coast S2 BMCI Leasing Morocco Full 86.9% 58.2% Full 86.9% 58.2% BNPP Bank Polska SA Poland Full 81.3% 81.3% V2 Full 87.3% 87.3% V3 BNPP El Djazair Algeria Full 100.0% 100.0% Full 100.0% 100.0% BNPP Faktoring Spolka ZOO Poland Full 100.0% 100.0% Full 100.0% 100.0% BNPP Fortis Yatirimlar Holding AS Türkiye Full 100.0% 99.9% Full 100.0% 99.9% BNPP Group Service Center SA Poland Full 100.0% 81.3% V3 Full 100.0% 87.3% V3 BNPP IRB Participations France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Yatirimlar Holding AS Türkiye Full 100.0% 100.0% Full 100.0% 100.0% Dreams Sustainable AB Sweden S2 Full 57.5% 57.5% Joint Stock Company Ukrsibbank Ukraine Full 60.0% 60.0% D1 Equity 60.0% 60.0% TEB ARF Teknoloji Anonim Sirketi Türkiye Full 100.0% 72.5% Full 100.0% 72.5% TEB Faktoring AS Türkiye Full 100.0% 72.5% Full 100.0% 72.5% TEB Finansman AS Türkiye Full 100.0% 72.5% Full 100.0% 72.5% V3 TEB Holding AS Türkiye Full 50.0% 50.0% Full 50.0% 50.0% TEB SH A Kosovo Full 100.0% 50.0% Full 100.0% 50.0% TEB Yatirim Menkul Degerler AS Türkiye Full 100.0% 72.5% Full 100.0% 72.5% Turk Ekonomi Bankasi AS Türkiye Full 100.0% 72.5% Full 100.0% 72.5% BancWest BancWest Holding Inc USA S2 BancWest Holding Inc Grantor Trust ERC Subaccount (s) USA S2 BancWest Holding Inc Umbrella Trust (s) USA S2 BancWest Investment Services Inc USA S2 Bank of the West USA S2 Bank of the West Auto Trust 2019-1 (t) USA S2 Bank of the West Auto Trust 2019-2 (t) USA S2 BNPP Leasing Solutions Canada Inc Canada S2 BOW Auto Receivables LLC (t) USA S2 BWC Opportunity Fund 2 Inc (t) USA S2 BWC Opportunity Fund Inc (t) USA S2 CFB Community Development Corp USA S2 Claas Financial Services LLC USA S2 Commercial Federal Affordable Housing Inc USA S2 First Santa Clara Corp (s) USA S2 United California Bank Deferred Compensation Plan Trust (s) USA S2 Ursus Real Estate Inc USA S2 SPECIALISED BUSINESSES Personal Finance Alpha Crédit SA Belgium Full 100.0% 99.9% Full 100.0% 99.9% Auto ABS UK Loans PLC (t) UK S3 Full - - E3 AutoFlorence 1 SRL (t) Italy Full - - Full - - AutoFlorence 2 SRL (t) Italy Full - - Full - - AutoFlorence 3 SRL (t) Italy Full - - Full - - E2 Autonoria 2019 (t) France S1 Full - - Autonoria DE 2023 (t) France Full - - Full - - E2 Autonoria Spain 2019 (t) Spain Full - - Full - - Autonoria Spain 2021 FT (t) Spain Full - - Full - - Autonoria Spain 2022 FT (t) Spain Full - - Full - - Autonoria Spain 2023 FT (t) Spain Full - - Full - - E2 Axa Banque Financement France Equity 35.0% 35.0% Equity 35.0% 35.0% Banco Cetelem SA Brazil S4 Banco Cetelem SA Spain Full 100.0% 100.0% Full 100.0% 100.0% BGN Mercantil E Servicos Ltda Brazil S4 Full 100.0% 100.0% BNPP Personal Finance France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance (Austria branch) Austria Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance (Bulgaria branch) Bulgaria S1 BNPP Personal Finance (Czech Republic branch) Czech Rep. Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance (Portugal branch) Portugal Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance (Romania branch) Romania Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance (Slovakia branch) Slovakia Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance BV Netherlands Full 100.0% 100.0% Full 100.0% 100.0% BNPP Personal Finance South Africa Ltd South Africa Full 100.0% 100.0% Full 100.0% 100.0% BON BNPP Consumer Finance Co Ltd China Equity 31.7% 31.7% V3 Equity 33.1% 33.1% V1/V4 Cafineo France Full (1) 51.0% 50.8% Full (1) 51.0% 50.8% Carrefour Banque France Equity 40.0% 40.0% Equity 40.0% 40.0% Central Europe Technologies SRL Romania Full 100.0% 100.0% Full 100.0% 100.0% Cetelem America Ltda Brazil S4 Full 100.0% 100.0% Cetelem Business Consulting Shanghai Co Ltd China Full 100.0% 100.0% Full 100.0% 100.0% Cetelem Gestion AIE Spain Full 100.0% 96.0% Full 100.0% 96.0% Cetelem SA de CV Mexico Equity 20.0% 0.0 % S2 Full 100.0% 100.0% Cetelem Servicios Informaticos AIE Spain Full 100.0% 81.0% Full 100.0% 81.0% Cetelem Servicos Ltda Brazil Full 100.0% 100.0% Full 100.0% 100.0% Cofica Bail France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Cofiplan France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Creation Consumer Finance Ltd UK Full 100.0% 99.9% Full 100.0% 99.9% V3 Creation Financial Services Ltd UK Full 100.0% 99.9% Full 100.0% 99.9% V3 Crédit Moderne Antilles Guyane France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Crédit Moderne Océan Indien France Full (1) 97.8% 97.8% Full (1) 97.8% 97.8% Domofinance France Full (1) 55.0% 55.0% Full (1) 55.0% 55.0% E Carat 10 (t) France S1 E Carat 11 PLC (t) UK S3 E Carat 12 PLC (t) UK S3 Full - - Ecarat De SA (t) Luxembourg Full - - E2 Ekspres Bank AS Denmark Full 100.0% 100.0% Full 100.0% 100.0% Ekspres Bank AS (Norway branch) Norway Full 100.0% 100.0% Full 100.0% 100.0% Ekspres Bank AS (Sweden branch) Sweden Full 100.0% 100.0% Full 100.0% 100.0% Eos Aremas Belgium SA NV Belgium Equity 50.0% 49.9% Equity 50.0% 49.9% Evollis France Equity 49.2% 49.2% Equity 49.2% 49.2% V4 Findomestic Banca SPA Italy Full 100.0% 100.0% Full 100.0% 100.0% Florence Real Estate Developments SPA Italy Full 100.0% 100.0% Full 100.0% 100.0% Florence SPV SRL (t) Italy Full - - Full - - GCC Consumo Establecimiento Financiero de Credito SA Spain Full 51.0% 51.0% Full 51.0% 51.0% Genius Auto Finance Co Ltd China Equity (3) 25.0% 25.0% Equity (3) 25.0% 25.0% V1 International Development Resources AS Services SA Spain Full 100.0% 100.0% Full 100.0% 100.0% Iqera Services France S2 Loisirs Finance France Full (1) 51.0% 51.0% Full (1) 51.0% 51.0% Magyar Cetelem Bank ZRT Hungary S2 Full 100.0% 100.0% Neuilly Contentieux France Full 95.9% 95.6% Full 95.9% 95.6% Noria 2018-1 (t) France S1 Noria 2020 (t) France S1 Noria 2021 (t) France Full - - Full - - Noria 2023 (t) France Full - - Full - - E2 Noria De 2024 (t) France Full - - E2 Noria Spain 2020 FT (t) Spain Full - - Full - - Opel Finance NV Netherlands S3 Opel Finance SA Switzerland S3 Full 100.0% 50.0% PBD Germany Auto Lease Master SA (t) Luxembourg Full - - Full - - E3 Personal Finance Location France Full 100.0% 100.0% Full 100.0% 100.0% PF Services GmbH Germany Full 100.0% 100.0% Full 100.0% 100.0% Phedina Hypotheken 2010 BV (t) Netherlands Full - - Full - - RCS Botswana Pty Ltd Botswana Full 100.0% 100.0% Full 100.0% 100.0% RCS Cards Pty Ltd South Africa Full 100.0% 100.0% Full 100.0% 100.0% RCS Investment Holdings Namibia Pty Ltd Namibia Full 100.0% 100.0% Full 100.0% 100.0% Securitisation funds Genius (d) (t) China Equity (3) - - Equity (3) - - E3 Securitisation funds UCI and RMBS Prado (b) (t) Spain Equity (3) - - Equity (3) - - Securitisation funds Wisdom (e) (t) China Equity (3) - - Equity (3) - - E3 Servicios Financieros Carrefour EFC SA Spain Equity 37.3% 40.0% Equity 37.3% 40.0% Stellantis Bank SA France Full 50.0% 50.0% Full 50.0% 50.0% Stellantis Bank SA (Austria branch) Austria Full 50.0% 50.0% Full 50.0% 50.0% Stellantis Bank SA (Germany branch) Germany Full 50.0% 50.0% Full 50.0% 50.0% Stellantis Bank SA (Italy branch) Italy S1 Stellantis Bank SA (Spain branch) Spain S1 Stellantis Financial Services UK Ltd UK Full 100.0% 50.0% Full 100.0% 50.0% E3 Union de Creditos Inmobiliarios SA Spain Equity (3) 50.0% 50.0% Equity (3) 50.0% 50.0% United Partnership France Equity (3) 50.0% 50.0% Equity (3) 50.0% 50.0% Vauxhall Finance Ltd UK S3 Full 100.0% 50.0% XFERA Consumer Finance EFC SA Spain Full 51.0% 51.0% Full 51.0% 51.0% Zhejiang Wisdom Puhua Financial Leasing Co Ltd China Equity (3) 25.0% 25.0% Equity (3) 25.0% 25.0% V1 Arval Artel France S4 Full (2) 100.0% 99.9% Arval AB Sweden Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval AS Denmark Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval AS Norway Norway Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Austria GmbH Austria Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Belgium NV SA Belgium Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Brasil Ltda Brazil Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval BV Netherlands Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval CZ SRO Czech Rep. Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Deutschland GmbH Germany Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Fleet Services France Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Fleet Services (succ. Monaco) Monaco Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Hellas Car Rental SA Greece Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval LLC Russia Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Luxembourg SA Luxembourg Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Magyarorszag KFT Hungary Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Maroc SA Morocco Full 100.0% 89.0% Full (2) 100.0% 89.0% Arval OY Finland Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Relsa Colombia SAS Colombia Full 100.0% 99.9% Full (2) 100.0% 99.9% V1/D2 Arval Relsa SPA Chile Full 100.0% 99.9% Full (2) 100.0% 99.9% V1/D2 Arval Schweiz AG Switzerland Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Service Lease France Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Service Lease Aluger Operational Automoveis SA Portugal Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Service Lease Italia SPA Italy Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Service Lease Polska SP ZOO Poland Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Service Lease Romania SRL Romania Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Service Lease SA Spain Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Slovakia SRO Slovakia Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval Trading France Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval UK Group Ltd UK Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval UK Leasing Services Ltd UK Full 100.0% 99.9% Full (2) 100.0% 99.9% Arval UK Ltd UK Full 100.0% 99.9% Full (2) 100.0% 99.9% BNPP Fleet Holdings Ltd UK Full 100.0% 99.9% Full (2) 100.0% 99.9% Cent ASL France Full 100.0% 99.9% Full (2) 100.0% 99.9% Cofiparc France Full 100.0% 99.9% Full (2) 100.0% 99.9% Comercializadora de Vehiculos SA Chile Full 100.0% 99.9% Full (2) 100.0% 99.9% V1/D2 FCT Pulse France 2022 (t) France Full - - Full (2) - - Greenval Insurance DAC Ireland Full (2) 100.0% 99.9% Full (2) 100.0% 99.9% Locadif Belgium Full 100.0% 99.9% Full (2) 100.0% 99.9% Louveo France Full 100.0% 99.9% Full (2) 100.0% 99.9% Personal Car Lease BV Netherlands S4 Public Location Longue Durée France Full 100.0% 99.9% Full (2) 100.0% 99.9% Pulse UK 2024 PLC (s) UK Full - - E2 Rentaequipos Leasing Peru SA Peru Full 100.0% 99.9% Full (2) 100.0% 99.9% V1/D2 Rentaequipos Leasing SA Chile Full 100.0% 99.9% Full (2) 100.0% 99.9% V1/D2 TEB Arval Arac Filo Kiralama AS Türkiye Full 100.0% 75.0% Full (2) 100.0% 75.0% Terberg Busines Lease Group BV Netherlands S4 Terberg Leasing Justlease Belgium BV Belgium Full 100.0% 99.9% Full (2) 100.0% 99.9% Leasing Solutions Aprolis Finance France Full 51.0% 42.3% Full 51.0% 42.3% Artegy France Full 100.0% 83.0% Full 100.0% 83.0% BNL Leasing SPA Italy Full 100.0% 95.5% Full 100.0% 95.5% BNPP 3 Step IT France Full 51.0% 42.3% Full 51.0% 42.3% BNPP 3 Step IT (Belgium branch) Belgium Full 51.0% 42.3% Full 51.0% 42.3% BNPP 3 Step IT (Germany branch) Germany Full 51.0% 42.3% Full 51.0% 42.3% BNPP 3 Step IT (Italy branch) Italy Full 51.0% 42.3% Full 51.0% 42.3% BNPP 3 Step IT (Netherlands branch) Netherlands Full 51.0% 42.3% Full 51.0% 42.3% BNPP 3 Step IT (Spain branch) Spain Full 51.0% 42.3% Full 51.0% 42.3% E2 BNPP 3 Step IT (United Kingdom branch) UK Full 51.0% 42.3% Full 51.0% 42.3% BNPP Finansal Kiralama AS Türkiye Full 100.0% 82.5% Full 100.0% 82.5% BNPP Lease Group France Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% BNPP Lease Group (Germany branch) Germany Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% BNPP Lease Group (Italy branch) Italy Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% BNPP Lease Group (Portugal branch) Portugal Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% BNPP Lease Group (Spain branch) Spain Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% BNPP Lease Group Belgium Belgium Full 100.0% 83.0% Full 100.0% 83.0% BNPP Lease Group Leasing Solutions SPA Italy Full 100.0% 95.5% Full 100.0% 95.5% BNPP Lease Group Ltd (Ex-BNPP Lease Group PLC) UK Full 100.0% 83.0% Full 100.0% 83.0% BNPP Lease Group SP ZOO Poland Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Services Poland Full 100.0% 81.3% V3 Full 100.0% 87.3% V3 BNPP Leasing Solution AS Norway Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions Luxembourg Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions AB Sweden Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions AS Denmark Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions GmbH Austria Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions IFN SA Romania Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions Ltd UK Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions NV Netherlands Full 100.0% 83.0% Full 100.0% 83.0% BNPP Leasing Solutions Suisse SA Switzerland Full 100.0% 83.0% Full 100.0% 83.0% BNPP Rental Solutions Ltd UK S3 BNPP Rental Solutions SPA Italy Full 100.0% 83.0% Full 100.0% 83.0% Claas Financial Services France Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% Claas Financial Services (Germany branch) Germany Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% Claas Financial Services (Italy branch) Italy Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% Claas Financial Services (Poland branch) Poland Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% Claas Financial Services (Spain branch) Spain Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% Claas Financial Services Ltd UK Full 51.0% 42.3% Full 51.0% 42.3% CNH Industrial Capital Europe France Full (1) 50.1% 41.6% Full (1) 50.1% 41.6% CNH Industrial Capital Europe (Belgium branch) Belgium Full (1) 50.1% 41.6% Full (1) 50.1% 41.6% CNH Industrial Capital Europe (Germany branch) Germany Full (1) 50.1% 41.6% Full (1) 50.1% 41.6% CNH Industrial Capital Europe (Italy branch) Italy Full (1) 50.1% 41.6% Full (1) 50.1% 41.6% CNH Industrial Capital Europe (Poland branch) Poland Full (1) 50.1% 41.6% Full (1) 50.1% 41.6% CNH Industrial Capital Europe (Spain branch) Spain Full (1) 50.1% 41.6% Full (1) 50.1% 41.6% CNH Industrial Capital Europe BV Netherlands Full 100.0% 41.6% Full 100.0% 41.6% CNH Industrial Capital Europe GmbH Austria Full 100.0% 41.6% Full 100.0% 41.6% CNH Industrial Capital Europe Ltd UK Full 100.0% 41.6% Full 100.0% 41.6% ES Finance Belgium Full 100.0% 99.9% Full 100.0% 99.9% FL Zeebrugge (s) Belgium Full - - Full - - Fortis Lease France Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% Fortis Lease Belgium Belgium Full 100.0% 83.0% Full 100.0% 83.0% Fortis Lease Deutschland GmbH Germany S3 Fortis Lease Iberia SA Spain S1 Fortis Lease Portugal Portugal S1 Fortis Lease UK Ltd UK Full 100.0% 83.0% Full 100.0% 83.0% Fortis Vastgoedlease BV Netherlands S3 Full 100.0% 83.0% Heffiq Heftruck Verhuur BV Netherlands Full 50.1% 41.5% Full 50.1% 41.5% JCB Finance France Full (1) 100.0% 41.6% Full (1) 100.0% 41.6% JCB Finance (Germany branch) Germany Full (1) 100.0% 41.6% Full (1) 100.0% 41.6% JCB Finance (Italy branch) Italy Full (1) 100.0% 41.6% Full (1) 100.0% 41.6% JCB Finance Holdings Ltd UK Full 50.1% 41.6% Full 50.1% 41.6% JFL BNPP Agriculture And Technology Financial Leasing Co Ltd Chine Equity 45.0% 37.3% E2 Manitou Finance Ltd UK Full 51.0% 42.3% Full 51.0% 42.3% MGF France Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% MGF (Germany branch) Germany Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% MGF (Italy branch) Italy Full (1) 51.0% 42.3% Full (1) 51.0% 42.3% Natio Energie 2 France Full 100.0% 100.0% Full 100.0% 100.0% Natiocredibail France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Pixel 2021 (t) France Full - - Full - - Same Deutz Fahr Finance France Full (1) 100.0% 83.0% Full (1) 100.0% 83.0% SNC Natiocredimurs France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% New Digital Businesses Financière des Paiements Electroniques France Full 95.0% 95.0% Full 95.0% 95.0% Financière des Paiements Electroniques (Belgium branch) Belgium Full 95.0% 95.0% Full 95.0% 95.0% Financière des Paiements Electroniques (Germany branch) Germany Full 95.0% 95.0% Full 95.0% 95.0% Financière des Paiements Electroniques (Portugal branch) Portugal Full 95.0% 95.0% Full 95.0% 95.0% Financière des Paiements Electroniques (Spain branch) Spain Full 95.0% 95.0% Full 95.0% 95.0% Floa France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% Lyf SA France Equity (3) 44.8% 44.8% V1 Equity (3) 43.8% 43.8% Lyf SAS France Equity (3) 50.0% 50.0% Equity (3) 50.0% 50.0% V4 Personal Investors Espresso Financial Services Private Ltd India S2 Full 100.0% 100.0% Geojit Technologies Private Ltd India Equity 35.0% 35.0% Equity 35.0% 35.0% Human Value Developers Private Ltd India S2 Full 100.0% 100.0% Sharekhan BNPP Financial Services Ltd India S2 Full 100.0% 100.0% Sharekhan Ltd India S2 Full 100.0% 100.0% INVESTMENT & PROTECTION SERVICES Insurance AEW Immocommercial (s) France FV - 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Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Cardif Seguros de Vida SA Chile Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Cardif Seguros Generales SA Chile Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Cardif Services SRO Czech Rep. Full (2) 100.0% 100.0% D1 Equity 100.0% 100.0% BNPP Cardif Servicios y Asistencia Ltda Chile Full (2) 100.0% 100.0% D1 Equity 100.0% 100.0% BNPP Cardif Sigorta AS Türkiye Equity 100.0% 100.0% Equity 100.0% 100.0% BNPP Cardif TCB Life Insurance Co Ltd Taiwan Equity 49.0% 49.0% Equity 49.0% 49.0% BNPP Cardif Vita Compagnia di Assicurazione E Riassicurazione SPA Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Convictions (s) France Full (4) - - Full (4) - - BNPP CP Cardif Private Debt (s) France S3 Full (4) - - BNPP Deep Value (s) France S3 BNPP Développement Humain (s) France Full (4) - - Full (4) - - BNPP Diversiflex (s) France S1 Full (4) - - BNPP Diversipierre (s) France Full (2) - - Full (2) - - BNPP Euro Climate Aligned (s) France Full (4) - - E1 BNPP France Crédit (s) France Full (4) - - Full (4) - - BNPP Global Senior Corporate Loans (s) France Full (4) - - Full (4) - - BNPP Indice Amerique du Nord (s) France Full (4) - - Full (4) - - BNPP Indice France ESG (s) France Full (4) - - E1 BNPP Infrastructure Investments Fund (s) France Full (4) - - Full (4) - - BNPP Moderate Focus Italia (s) France S3 BNPP Monétaire Assurance (s) France S1 BNPP Multistratégies Protection 80 (s) France S3 Full (4) - - BNPP Next Tech (s) France S3 BNPP Obliselect Euro Dec 2028 (s) France Full (4) - - E1 BNPP Protection Monde (s) France S3 BNPP Select (s) France Full (4) - - E1 BNPP Sélection Dynamique Monde (s) France Full (4) - - Full (4) - - BNPP Selection Patrimoine Responsable (s) France Full (4) - - E1 BNPP Smallcap Euroland ISR (s) France Full (4) - - Full (4) - - BNPP Social Business France (s) France Full (4) - - Full (4) - - BOB Cardif Life Insurance Co Ltd China Equity 50.0% 50.0% Equity 50.0% 50.0% C Santé (s) France Full (2) - - D1 FV - - Camgestion Obliflexible (s) France S1 Capital France Hotel France Full (2) 98.5% 98.5% Full (2) 98.5% 98.5% Cardif Alternatives Part I (s) France Full (2) - - Full (2) - - Cardif Assurance Vie France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Austria branch) Austria Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Belgium branch) Belgium Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Bulgaria branch) Bulgaria Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Germany branch) Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Italy branch) Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Netherlands branch) Netherlands Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Portugal branch) Portugal Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Romania branch) Romania Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Spain branch) Spain Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Switzerland branch) Switzerland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurance Vie (Taiwan branch) Taiwan Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Austria branch) Austria Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Belgium branch) Belgium Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Bulgaria branch) Bulgaria Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Germany branch) Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Italy branch) Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Netherlands branch) Netherlands Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Poland branch) Poland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Portugal branch) Portugal Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Romania branch) Romania Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Spain branch) Spain Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Switzerland branch) Switzerland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Assurances Risques Divers (Taiwan branch) Taiwan Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Biztosito Magyarorszag ZRT Hungary S3 Equity 100.0% 100.0% Cardif BNPP AM Emerging Bond (s) France Full (4) - - Full (4) - - Cardif BNPP AM Euro Paris Climate Aligned (s) France Full (4) - - D1 FV - - Cardif BNPP AM Global Environmental Equity (s) France Full (4) - - Full (4) - - Cardif BNPP AM Global Senior Corporate Loans (s) France S3 Cardif BNPP AM Sustainable Euro Equity (s) France Full (4) - - D1 FV - - Cardif BNPP AM Sustainable Europe Equity (s) France Full (4) - - D1 FV - - Cardif BNPP IP Signatures (s) France Full (4) - - Full (4) - - Cardif BNPP IP Smid Cap Euro (s) France S3 Full (2) - - Cardif Colombia Seguros Generales SA Colombia Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif CPR Global Return (s) France Full (2) - - Full (2) - - Cardif do Brasil Seguros e Garantias SA Brazil Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif do Brasil Vida e Previdencia SA Brazil Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Edrim Signatures (s) France Full (2) - - Full (2) - - Cardif El Djazair Algeria Equity 85.0% 85.0% V2 Equity 100.0% 100.0% Cardif Forsakring AB Sweden Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Forsakring AB (Denmark branch) Denmark Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Forsakring AB (Norway branch) Norway Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif IARD France Full (2) 66.0% 66.0% Full (2) 66.0% 66.0% Cardif Insurance Co LLC Russia S2 Cardif Insurance Holdings PLC UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Life Insurance Co Ltd Rep. of Korea Full (2) 85.0% 85.0% Full (2) 85.0% 85.0% Cardif Life Insurance Japan Japan Full (2) 75.0% 75.0% Full (2) 75.0% 75.0% Cardif Ltda Brazil Full (2) 100.0% 100.0% D1 Equity 100.0% 100.0% Cardif Lux Vie Luxembourg Full (2) 100.0% 88.6% Full (2) 100.0% 88.6% Cardif Mexico Seguros de Vida SA de CV Mexico Full (2) 100.0% 100.0% D1 Equity 100.0% 100.0% Cardif Mexico Seguros Generales SA de CV Mexico Full (2) 100.0% 100.0% D1 Equity 100.0% 100.0% Cardif Non Life Insurance Japan Japan Full (2) 100.0% 75.0% Full (2) 100.0% 75.0% Cardif Nordic AB Sweden Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Polska Towarzystwo Ubezpieczen Na Zycie SA Poland S3 Equity 100.0% 100.0% Cardif Retraite France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cardif Seguros SA Argentina S2 Cardif Services AEIE Portugal S1 Full (2) 100.0% 100.0% Cardif Servicios de Colombia SAS Colombia Full (2) 100.0% 100.0% E1 Cardif Servicios SAC Peru S3 Equity 100.0% 100.0% Cardif Support Unipessoal Lda Portugal Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% E1 Cardif Vita Convex Fund Eur (s) France S1 Cardimmo France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Carma Grand Horizon SARL France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cedrus Carbon Initiative Trends (s) France Full (2) - - Full (2) - - Centre Commercial Francilia France FV 21.7% 21.7% FV 21.7% 21.7% CFH Alexanderplatz Hotel SARL Luxembourg Full (2) 100.0% 93.5% Full (2) 100.0% 93.5% E2 CFH Algonquin Management Partners France Italia Italy Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Bercy France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Bercy Hotel France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Bercy Intermédiaire France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Berlin GP GmbH Germany Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% E2 CFH Berlin Holdco SARL Luxembourg Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Boulogne France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Cap d’Ail France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Hostel Berlin SARL Luxembourg Full (2) 100.0% 93.5% Full (2) 100.0% 93.5% E2 CFH Hotel Project SARL Luxembourg Full (2) 100.0% 93.5% Full (2) 100.0% 93.5% E2 CFH Milan Holdco SRL Italy Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Montmartre France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% CFH Montparnasse France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% Corosa France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Darnell DAC Ireland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Défense CB3 SAS France FV 25.0% 25.0% FV 25.0% 25.0% Diversipierre DVP 1 France Full (2) 100.0% 94.6% V4 Full (2) 100.0% 93.4% V4 Diversipierre Germany GmbH Germany Full (2) 100.0% 94.6% D1/V4 Equity 100.0% 93.4% V4 DVP European Channel France Full (2) 100.0% 94.6% D1/V4 Equity 100.0% 93.4% V4 DVP Green Clover France Full (2) 100.0% 94.6% D1/V4 Equity 100.0% 93.4% V4 DVP Haussmann France Full (2) 100.0% 94.6% D1/V4 Equity 100.0% 93.4% V4 DVP Heron France Full (2) 100.0% 94.6% D1/V4 Equity 100.0% 93.4% V4 Eclair (s) France S3 EP L (s) France Full (2) - - Full (2) - - EP1 Grands Moulins (s) France Full (2) - - D1 Equity - - Fleur SAS France S1 FV 33.3% 33.3% Foncière Partenaires (s) France FV - - FV - - Fondev (Ex- FDI Poncelet) France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Fondo BNPP Aqua Protetto (s) France Full (4) - - E1 Fonds d’Investissements Immobiliers pour le Commerce et la Distribution France FV 25.0% 25.0% FV 25.0% 25.0% FP Cardif Convex Fund USD (s) France Full (2) - - Full (2) - - Fundamenta (s) Italy Full (2) - - Full (2) - - G C Thematic Opportunities II (s) Ireland S1 GIE BNPP Cardif France Full (2) 99.7% 99.7% Full (2) 99.7% 99.7% V2 GPinvest 10 France FV 50.0% 50.0% FV 50.0% 50.0% Harewood Helena 2 Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Harmony Prime (s) France Full (4) - - Full (4) - - Hemisphere Holding France Equity 20.0% 20.0% Equity 20.0% 20.0% Hibernia France France Full (2) 100.0% 98.5% Full (2) 100.0% 98.5% Horizon Development GmbH Germany FV 66.7% 64.9% V4 FV 66.7% 62.9% Icare France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Icare Assurance France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% ID Cologne A1 GmbH Germany Full (2) 89.2% 86.8% D1/V4 Equity 89.2% 86.2% V1 ID Cologne A2 GmbH Germany Full (2) 89.2% 86.8% D1/V4 Equity 89.2% 86.2% V1 Karapass Courtage France S3 Equity 100.0% 100.0% Korian et Partenaires Immobilier 1 France FV 24.5% 24.5% FV 24.5% 24.5% Korian et Partenaires Immobilier 2 France FV 24.5% 24.5% FV 24.5% 24.5% Luizaseg Seguros SA Brazil Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% V1/D4 Natio Assurance France S4 Full (2) 100.0% 100.0% Natio Fonds Ampère 1 (s) France Full (4) - - Full (4) - - NCVP Participacoes Societarias SA Brazil Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Neuflize Vie France Full (2) 100.0% 100.0% E3 New Alpha Cardif Incubator Fund (s) France Full (2) - - Full (2) - - OC Health Real Estate GmbH Germany FV 35.0% 31.0% FV 35.0% 31.0% Opéra Rendement (s) France Full (2) - - Full (2) - - Paris Management Consultant Co Ltd Taiwan S3 Equity 100.0% 100.0% Permal Cardif Co Investment Fund (s) France Full (2) - - Full (2) - - Pinnacle Pet Holdings Ltd UK Equity 24.7% 24.7% Equity 24.7% 24.7% V3 Poistovna Cardif Slovakia AS Slovakia S3 Equity 100.0% 100.0% Preim Healthcare SAS (s) France FV - - FV - - PWH France FV 47.5% 47.5% FV 47.5% 47.5% Reumal Investissements France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Rubin SARL Luxembourg FV 50.0% 50.0% FV 50.0% 50.0% Rueil Ariane France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SAS HVP France S4 Full (2) 100.0% 98.5% Schroder European Operating Hotels Fund 1 (s) Luxembourg FV - - FV - - SCI 68/70 rue de Lagny Montreuil France Full (2) 99.9% 99.9% Full (2) 99.9% 99.9% SCI Alpha Park France S2 FV 50.0% 50.0% SCI Batipart Chadesrent France FV 20.0% 20.0% FV 20.0% 20.0% SCI Biv Malakoff France FV 23.3% 23.3% FV 23.3% 23.3% SCI BNPP Pierre I France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI BNPP Pierre II France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Bobigny Jean Rostand France S4 Full (2) 100.0% 100.0% SCI Bouleragny France FV 50.0% 50.0% FV 50.0% 50.0% SCI Cardif Logement France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Citylight Boulogne France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Clichy Nuovo France FV 50.0% 50.0% FV 50.0% 50.0% SCI Défense Etoile France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Défense Vendôme France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Etoile du Nord France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Fontenay Plaisance France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Imefa Velizy France FV 21.8% 21.8% FV 21.8% 21.8% SCI Le Mans Gare France S4 Full (2) 100.0% 100.0% SCI Nanterre Guilleraies France S4 Full (2) 100.0% 100.0% SCI Nantes Carnot France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Odyssée France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Pantin Les Moulins France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Paris Batignolles France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Paris Cours de Vincennes France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Paris Grande Armée France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Paris Turenne France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Portes de Claye France Equity 45.0% 45.0% Equity 45.0% 45.0% SCI Rue Moussorgski France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Rueil Caudron France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Saint Denis Landy France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Saint Denis Mitterrand France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI Saint-Denis Jade France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% SCI SCOO France FV 46.4% 46.4% FV 46.4% 46.4% SCI Vendôme Athènes France FV 50.0% 50.0% FV 50.0% 50.0% SCI Villeurbanne Stalingrad France S4 Full (2) 100.0% 100.0% Secar France FV 55.1% 55.1% FV 55.1% 55.1% Seniorenzentren Deutschland Holding SARL Luxembourg FV 20.0% 17.7% FV 20.0% 17.7% Seniorenzentren Reinbeck Oberursel München Objekt GmbH Germany FV 35.0% 31.0% FV 35.0% 31.0% Seniorenzentrum Butzbach Objekt GmbH Germany FV 35.0% 31.0% FV 35.0% 31.0% Seniorenzentrum Heilbronn Objekt GmbH Germany FV 35.0% 31.0% FV 35.0% 31.0% Seniorenzentrum Kassel Objekt GmbH Germany FV 35.0% 31.0% FV 35.0% 31.0% Seniorenzentrum Wolfratshausen Objekt GmbH Germany FV 35.0% 31.0% FV 35.0% 31.0% Services Epargne Entreprise France Equity 36.8% 36.8% V1 Equity 35.6% 35.6% SNC Batipart Mermoz France FV 25.0% 25.0% FV 25.0% 25.0% SNC Batipart Poncelet France FV 25.0% 25.0% FV 25.0% 25.0% Société Francaise d’Assurances sur la Vie France Equity 50.0% 50.0% Equity 50.0% 50.0% Société Immobilière du Royal Building SA Luxembourg Full (2) 100.0% 88.6% Full (2) 100.0% 88.6% Theam Quant Europe Climate Carbon Offset Plan (s) France S3 Full (4) - - Tikehau Cardif Loan Europe (s) France Full (2) - - Full (2) - - Valeur Pierre Epargne France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Valtitres FCP (s) France Full (4) - - D1 FV (4) - - Velizy Holding France FV 33.3% 33.3% FV 33.3% 33.3% Wealth Management BNPP Wealth Management Monaco Monaco S4 Full (1) 100.0% 100.0% Asset Management Alfred Berg Kapitalforvaltning AS Norway Full 100.0% 73.7% Full 100.0% 73.7% V2 Alfred Berg Kapitalforvaltning AS (Sweden branch) Sweden Full 100.0% 73.7% Full 100.0% 73.7% V3 Bancoestado Administradora General de Fondos SA Chile Equity 50.0% 49.1% Equity 50.0% 49.1% Baroda BNPP AMC Private Ltd India Equity (3) 49.9% 49.1% V4 Equity (3) 49.9% 49.0% BNPP ABC Wealth Management Co Ltd China Equity (3) 51.0% 50.1% Equity (3) 51.0% 50.1% E2 BNPP Agility Capital France S4 BNPP Agility Fund Equity SLP (s) France Full (4) - - Full (4) - - BNPP Agility Fund Private Debt SLP (s) France Full (4) - - Full (4) - - BNPP AM International Hedged Strategies (s) France Full (4) - - Full (4) - - BNPP Asset Management Asia Ltd Hong Kong Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Be Holding Belgium Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Brasil Ltda Brazil Full 100.0% 99.6% V4 Full 100.0% 99.5% BNPP Asset Management Europe (Austria branch) (Ex- BNPP Asset Management France (Austria branch)) Austria Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Europe (Belgium branch) (Ex- BNPP Asset Management France (Belgium branch)) Belgium Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Europe (Ex-BNPP Asset Management France) France Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Europe (Germany branch) (Ex-BNPP Asset Management France (Germany branch)) Germany Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Europe (Italy branch) (Ex-BNPP Asset Management France (Italy branch)) Italy Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Europe (Netherlands branch) (Ex-BNPP Asset Management France (Netherlands branch)) Netherlands Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Europe (Poland branch) Poland Full 100.0% 98.3% E2 BNPP Asset Management Holding France Full 100.0% 98.3% V1 Full 99.9% 98.2% BNPP Asset Management Japan Ltd Japan Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Luxembourg Luxembourg Full 99.7% 98.0% V4 Full 99.7% 97.9% BNPP Asset Management NL Holding NV Netherlands S1 BNPP Asset Management PT Indonesia Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management Services Grouping France S1 BNPP Asset Management Taiwan Co Ltd Taiwan Full 100.0% 98.3% V4 Full 100.0% 98.2% E1 BNPP Asset Management UK Ltd UK Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Asset Management USA Holdings Inc USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP Asset Management USA Inc USA Full 100.0% 100.0% Full 100.0% 100.0% BNPP B Institutional II (s) Belgium Full (4) - - Full (4) - - BNPP Dealing Services France Full 100.0% 98.3% V4 Full 100.0% 98.2% BNPP Easy (s) Luxembourg Full (4) - - Full (4) - - BNPP Flexi I (s) Luxembourg Full (4) - - Full (4) - - BNPP Funds (s) Luxembourg Full (4) - - Full (4) - - Drypnir AS Norway Full 100.0% 0.0% Full 100.0% 0.0% Dynamic Credit Group BV Netherlands Full 75.0% 73.7% V4 Full 75.0% 73.6% E3 Gambit Financial Solutions Belgium Full 100.0% 98.3% V4 Full 100.0% 98.2% Haitong Fortis Private Equity Fund Management Co Ltd China Equity 33.0% 32.4% Equity 33.0% 32.4% Harewood Helena 1 Ltd UK Full 100.0% 100.0% Full 100.0% 100.0% HFT Investment Management Co Ltd China Equity 49.0% 48.2% V4 Equity 49.0% 48.1% Impax Asset Management Group PLC UK Equity 13.8% 13.5% Equity 13.8% 13.5% SME Alternative Financing DAC (s) Ireland Full - - Full - - Theam Quant (s) Luxembourg Full (4) - - Full (4) - - Real Estate Auguste Thouard Expertise France S4 Full (2) 100.0% 100.0% BNPP Immobilier Promotion France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Immobilier Résidences Services France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate (United Arab Emirates branch) United Arab Emirates Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Advisory & Property Management Luxembourg SA Luxembourg Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Advisory & Property Management UK Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Advisory and Property Management Ireland Ltd Ireland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Advisory Italy SPA Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Advisory Netherlands BV Netherlands Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Belgium SA Belgium Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Conseil Habitation & Hospitality France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Consult France France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Consult GmbH Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Facilities Management Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Financial Partner France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate GmbH Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Holding GmbH Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Investment Management Belgium Belgium S4 Full (2) 100.0% 100.0% BNPP Real Estate Investment Management France France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Real Estate Investment Management Germany GmbH Germany Full 94.9% 94.9% Full 94.9% 94.9% BNPP Real Estate Investment Management Germany GmbH (Italy branch) Italy Full 94.9% 94.9% Full 94.9% 94.9% BNPP Real Estate Investment Management Germany GmbH (Portugal branch) Portugal Full 94.9% 94.9% Full 94.9% 94.9% BNPP Real Estate Investment Management Germany GmbH (Spain branch) Spain Full 94.9% 94.9% Full 94.9% 94.9% BNPP Real Estate Investment Management Italy SPA Italy Full 100.0% 100.0% Full 100.0% 100.0% BNPP Real Estate Investment Management Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Investment Management Luxembourg SA Luxembourg Full 100.0% 100.0% Full 100.0% 100.0% BNPP Real Estate Investment Management Luxembourg SA (Italy branch) Italy Full 100.0% 100.0% Full 100.0% 100.0% E2 BNPP Real Estate Investment Management Spain SA Spain Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Investment Management UK Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Poland SP ZOO Poland Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Portugal Unipersonal LDA Portugal Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Property Development & Services GmbH Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Property Development UK Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Property Management France SAS France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Property Management GmbH Germany Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Property Management Italy SRL Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Singapore Pte Ltd Singapore Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Spain SA Spain Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% BNPP Real Estate Transaction France France Full (2) 97.4% 97.4% V1 Full (2) 97.2% 97.2% V1 BNPP Real Estate Valuation France France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Cariboo Development SL Spain Equity 65.0% 65.0% Equity 65.0% 65.0% Construction-Sale Companies (c) France Full / Equity (2) - - Full / Equity (2) - - Exeo Aura & Echo Offices Lda Portugal Equity 31.9% 31.9% Equity 31.9% 31.9% GIE BNPP Real Estate France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Horti Milano SRL Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Nanterre Arboretum France Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Parker Tower Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Partner’s & Services France S4 Full (2) 100.0% 100.0% REPD Parker Ltd UK Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Sviluppo Residenziale Italia SRL Italy Full (2) 100.0% 100.0% Full (2) 100.0% 100.0% Wapiti Development SL Spain Equity 65.0% 65.0% Equity 65.0% 65.0% OTHER BUSINESS UNITS Property Companies (Property Used In Operations) and Others Antin Participation 5 France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Home Loan SFH France Full (1) 100.0% 100.0% Full (1) 100.0% 100.0% BNPP Partners for Innovation France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Partners for Innovation Belgium Belgium Full 100.0% 100.0% Full 100.0% 100.0% BNPP Partners For Innovation Global Connect France Full 100.0% 100.0% E1 BNPP Partners for Innovation Italia SRL Italy S3 Full 100.0% 100.0% BNPP Procurement Tech France Full 100.0% 100.0% Full 100.0% 100.0% BNPP Public Sector SA France Full 100.0% 100.0% Full 100.0% 100.0% FCT Lafayette 2021 (t) France Full - - Full - - FCT Laffitte 2021 (t) France Full - - Full - - FCT Opéra 2014 (t) France S1 FCT Opera 2023 (t) France Full - - Full - - E2 FCT Pyramides 2022 (t) France Full - - Full - - GIE Groupement Auxiliaire de Moyens France Full 100.0% 100.0% Full 100.0% 100.0% GIE Groupement d’Etudes et de Prestations France Full 100.0% 100.0% Full 100.0% 100.0% Transvalor France S2 At 31 December 2024, 13 Private Equity investment entities versus 14 Private Equity investment entities at 31 December 2023. At 31 December 2024, the securitisation funds UCI and RMBS Prado included 13 funds (FCC UCI 11, 12, 14 to 17, RMBS Prado VII to XI, Green Belem I et RMBS Belem No 2) unchanged from 31 December 2023. At 31 December 2024, 102 Construction-sale companies (71 Full and 31 Equity) versus 117 Construction-sale companies (82 Full and 35 Equity) at 31 December 2023. At 31 December 2024, the securitisation funds Genius include 8 funds (Generation 2024-1-4 Retail Auto Mortgage Loan Securitisation, Generation 2023-2 to 5 Retail Auto Mortgage Loan Securitisation) versus 11 funds (Generation 2021-4 Retail Auto Mortgage Loan Securitisation, Generation 2022-1 to 5 Retail Auto Mortgage Loan Securitisation, Generation 2023-1 to 5 Retail Auto Mortgage Loan Securitisation) at 31 December 2023. At 31 december 2024, 10 funds (Wisdom Puhua Leasing 2022-2 to 3 Asset-Backed Securities, Wisdom Puhua Leasing 2023-2 Asset-Backed Notes, Wisdom Puhua Leasing 2023-1 & 2 Asset-Backed Securities, Wisdom Puhua Leasing Xinghe 2023-1 Asset-Backed Securities, Wisdom Puhua Leasing Xinghe 2024-1 to 4 Asset-Backed Securities) versus 13 funds (Wisdom Puhua Leasing 2021-2 & 3 Asset-Backed Securities, Wisdom Puhua Leasing 2022-1 Asset-Backed Notes, Wisdom Puhua Leasing 2022-1 to 3 Asset-Backed Securities, Wisdom Puhua Leasing 2023-1 & 2 Asset-Backed Notes, Wisdom Puhua Leasing 2023-1 & 2 Asset-Backed securities, Wisdom Puhua Leasing Zhixing 2023-1 & 2 Asset-Backed Notes, Wisdom Puhua Leasing Xinghe 2023-1 Asset-Backed Securities) at 31 December 2023. As requested by the ANC 2016 regulation, the list of entities that are controlled by the Group, jointly controlled or under significant influence, but excluded from the scope of consolidation since their contribution to the consolidated financial statements would be immaterial to the Group, and the list of equity investments, are available on the “Regulated Information” page of the https://invest.bnpparibas.com website. Changes in the scope of consolidation New entries (E) in the scope of consolidation E1 Passing above consolidation thresholds E2 Incorporation E3 Purchase, gain of control or significant influence Removals (S) from the scope of consolidation S1 Cessation of activity (dissolution, liquidation, etc.) S2 Disposal, loss of control or loss of significant influence S3 Passing below consolidation thresholds S4 Merger, Universal transfer of assets and liabilities Variance (V) in voting or ownership interest V1 Additional purchase V2 Partial disposal V3 Dilution V4 Increase in % Miscellaneous D1 Consolidation method change not related to fluctuation in voting or ownership interest D2 Following the additional purchase of interest by the Group, Arval Relsa and its subsidiaries were fully consolidated since the fourth quarter 2023 D3 Following the additional purchase of interest by the Group, the whole entities Kantox and its subsidiaries were fully consolidated since the fourth quarter 2023. D4 Following the additional purchase of interest by the Group, Luizaseg Seguros SA was fully consolidated since the fourth quarter 2023 Equity Controlled but non material entities consolidated under the equity method as associates FV Joint control or investment in associates measured at fair value through profit or loss (s) Structured entities (t) Securitisation funds Prudential scope of consolidation (1) French subsidiaries for which supervision of prudential requirements is complied with through the supervision on a consolidated basis of BNP Paribas SA, in accordance with article 7.1 of Regulation n°575/2013 of the European Parliament and of the Council (2) Entities consolidated under the equity method in the prudential scope (3) Jointly controlled entities under proportional consolidation in the prudential scope (4) Collective investment undertaking excluded from the prudential scope 8.lFees paid to the Statutory Auditors Year to 31 Dec. 2024 Excluding tax, in thousands of euros Deloitte EY TOTAL Total % Total % Total % Certification of statutory audit 34,381 82% 34,531 82% 68,912 82% Issuer 10,771 20,927 31,698 Consolidated subsidiaries 23,610 13,604 37,214 Certification of sustainability reporting 547 1% 640 2% 1,187 1% Issuer 436 448 884 Consolidated subsidiaries 111 192 303 Services other than those required for the certification of statutory audit and sustainability reporting 7,024 17% 6,599 16% 13,623 17% Issuer 2,970 4,362 7,332 Consolidated subsidiaries 4,054 2,237 6,291 TOTAL 41,952 100% 41,770 100% 83,722 100% of which fees paid to External Auditors in France for the certification of statutory audit 16,353 18,784 35,137 of which fees paid to Statutory Auditors in France for the certification of sustainability reporting 436 576 1,012 of which fees paid to External Auditors and their network in France for services other than those required for the certification of statutory audit and sustainability reporting The amount of the External Auditors’ fees for services other than those required for the certification of statutory audit and sustainability reporting was, as of 31 December 2024, EUR 1,337 thousand for Deloitte & Associés and EUR 92 thousand for Ernst & Young et Autres 1,802 2,123 3,925 Year to 31 Dec. 2023 Excluding tax, in thousands of euros Deloitte PricewaterhouseCoopers Mazars TOTAL Total % Total % Total % Total % Certification of statutory audit 20,696 75% 17,142 62% 10,994 87% 48,832 72% Issuer 5,505 5,627 3,083 14,215 Consolidated subsidiaries 15,191 11,515 7,911 34,617 Services other than those required for the certification of statutory audit 6,731 25% 10,703 38% 1,629 13% 19,063 28% Issuer 3,385 6,815 736 10,936 Consolidated subsidiaries 3,346 3,888 893 8,127 TOTAL 27,427 100% 27,845 100% 12,623 100% 67,895 100% of which fees paid to Statutory Auditors in France for the statutory audit and contractual audit 7,551 6,080 4,406 18,037 of which fees paid to External Auditors and their network in France for services other than those required for the certification of statutory audit and sustainability reporting 2,014 4,179 1,130 7,323 Audit fees paid to external auditors who are not part of the network of the external auditors certifying the individual and consolidated financial statements of BNP Paribas SA, as mentioned in the above table, amount to EUR 8,176 thousand for the year 2024 (EUR 3,990 thousand in 2023). Variation is mainly explained by the work performed by the PWC and Mazars firms (EUR 4,511 thousand), mostly on the review of the 2024 first quarter financial information and on the audit of several entities. This year, services other than the ones required for the statutory audit mainly refer to issuance of attestation of accounting and financial information, review of the quality of the internal control as per the international standards (such as ISAE 3402) within the framework of services provided to customers, especially in the Securities and the Asset Management Business Lines, expertise on the Bank’s transformation projects, technical consultations on specific issues and assessment of the compliance of the entity’s framework with Law/Regulation. 4.7 Statutory Auditors’ report on the consolidated financial statements Year ended December 31, 2024 This is a translation into English of the statutory auditors’ report on the consolidated financial statements of the Company issued in French and it is provided solely for the convenience of English-speaking users. This statutory auditors’ report includes information required by European regulations and French law, such as information about the appointment of the statutory auditors or verification of the information concerning the Group presented in the management report and other documents provided to shareholders. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France. To the Annual General Meeting of BNP Paribas, Opinion In compliance with the engagement entrusted to us by your Annual General Meeting, we have audited the accompanying consolidated financial statements of BNP Paribas for the year ended December 31, 2024. In our opinion, the consolidated financial statements give a true and fair view of the assets and liabilities and of the financial position of the Group at December 31, 2024 and of the results of its operations for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union. The audit opinion expressed above is consistent with our report to the Financial Statements Committee. Basis for opinion Audit framework We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under those standards are further described in the Statutory Auditors’ Responsibilities for the audit of the consolidated financial statements section of our report. Independence We conducted our audit engagement in compliance with the independence requirements of the French Commercial Code (Code de commerce) and the French Code of Ethics for Statutory Auditors (Code de déontologie de la profession de commissaire aux comptes) for the period from January 1, 2024 to the date of our report and specifically, we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No. 537/2014 Justification of assessments – Key audit matters In accordance with the requirements of Articles L. 821-53 and R. 821-180 of the French Commercial Code (Code de commerce) relating to the justification of our assessments, we inform you of the key audit matters relating to the risks of material misstatement that, in our professional judgement, were of most significant in our audit of the consolidated financial statements of the current period, as well as how we addressed those risks. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the consolidated financial statements. Assessment of credit risk and measurement of impairment losses (stages 1, 2 and 3) on customer loan portfolios (See Notes 1.f.5, 1.f.6, 1.p, 2.g, 4.e, 4.f et 4.n to the consolidated financial statements) Risk identified Our response BNP Paribas records impairments to cover credit risks inherent to its activities. As of December 31, 2024, customer loans exposed to credit risk amount to 917.0 billion euros, and impairments amount to 16.9 billion euros. In an environment of persistent uncertainties marked by geopolitical and economic tensions, the assessment of expected credit losses on customer loan portfolios requires increased judgment and the use of assumptions from BNP Paribas management, particularly to: Assess the significant increase in credit risk to classify exposures into stage 1, stage 2, or stage 3, especially based on criteria involving expert judgment such as the watch list process and the identification of doubtful exposures; Develop macroeconomic forecasts that are integrated into both deterioration criteria and the measurement of expected losses; Estimate expected losses for stages 1 and 2. In particular, these expected losses include, as specified in note 2.g to the consolidated financial statements, anticipation aspects not captured by models in the generic approach; For corporate exposures, estimate expected losses on stage 3 receivables, for which the recovery estimates may rely on the weighting of different scenarios. We consider that the assessment of credit risk and the measurement of related impairment constitute a key audit matter, as these items involve management’s judgment and estimates in an environment marked by above-mentioned uncertainties. We examined BNP Paribas’ internal control system, particularly its adaptation to the environment of uncertainties, and tested manual orautomated controls related to the credit risk assessment and the measurement of expected losses. Our work particularly focused on the following processes: Classification of exposures by stage: we assessed how the changes in risks were considered in estimating criteria applicable to various business lines to measure significant increase in credit risk and identify doubtful exposures. Evaluation of expected losses (stages 1, 2, and 3): With the support of our credit risk specialists, we assessed the methodologies and macroeconomic forecasts assumptions used by BNP Paribas and their appropriate implementation in information systems; We assessed the key models and parameters used for calculating expected losses on exposures classified as stages 1 and 2, the relevance of results obtained, and the existing control system. We tested the effectiveness of data quality controls. Additionally, we paid particular attention to additional provisions booked to account for above-mentioned uncertainties; In addition, for impairment on corporate exposures classified as stage 3, we examined the periodic review process of credit risk for watch list counterparties and assessed, on a sample of counterparties, the assumptions and data used by management to estimate impairment. We also reviewed credit risk disclosures in the notes to the consolidated financial statements, espacially information required by IFRS 9 and IFRS 7. Valuation of financial instruments classified as levels 2 and 3 in the fair value hierarchy (see Notes 1.f.7, 1.f.10, 1.p, 2.c, 4.a et 4.d to the consolidated financial statements) Risk identified Our response As part of its market activities, BNP Paribas holds financial instruments measured at market value in the balance sheet. Market value is determined through different approaches, depending on the type of instrument and its complexity: (i) using directly observable quoted prices (instruments classified as level 1 in the fair value hierarchy), (ii) using valuation models whose main inputs are observable (instruments classified as level 2), and (iii) using valuation models whose main inputs are unobservable (instruments classified as level 3). These financial instruments amount to 566.1 billion euros (of which 275.7 billion euros as level 2 and 11.7 billion euros as level 3) on the asset side and 489.7 billion euros (of which 371.7 billion euros as level 2 and 40.1 billion euros as level 3) on the liability side of the group’s consolidated balance sheet as of December 31, 2024. Market values may include valuation adjustments to account for specific market, liquidity, or counterparty risks. For instruments classified as level 3, valuation techniques used by management may involve significant judgment and estimation regarding the choice of valuation models and the parameters used, some of which are not observable in the market. This may lead to deferred recognition of margins on related operations, as specified in note 4.d to the consolidated financial statements. Given the materiality of exposures, the complexity of modeling in determining market value, the multiplicity of models used, and the reliance on management’s judgment in determining market values, we consider the valuation of financial instruments classified as levels 2 and 3 in the fair value hierarchy to be a key audit matter. We examined BNP Paribas’ internal control system related to the valuation of financial instruments and performed tests, on a sample basis, on a selection of financial instruments classified as levels 2 and 3 in the fair value hierarchy. With the support of our financial instrument valuation specialists, our work particularly consisted in: Studying the governance implemented by the group to oversee the financial instrument valuation system, specifically the approval process and regular review by risk department of valuation models and the independent verification of valuation parameters; Examining the system implemented by the group for determining valuation adjustments and setting the parameter observability rules. On a sample basis, we also: Analyzed the relevance of assumptions and parameters used for valuation; Reviewed the results and methodologies of the group’s market parameters independent review; Performed independent revaluations using our own models, where necessary; Assessed the appropriateness of deferred margin recognition. We also analyzed, on a sample basis, any differences between valuations and collateral calls with counterparties. We reviewed the information related to the valuation of financial instruments disclosed in the consolidated financial statements, especially those required by IFRS 13. IT General Controls Risk identified Our response The various activities carried out by your group entail a high level of complexity due to the volume of transactions and the use of numerous interfaced information systems. The reliability of the information system management processes and their security are key elements for the financial information preparation process. The risk of a material misstatement occurring on the accounts due to an incident in the IT chains may result from: Inappropriate changes to the configuration of IT applications or of the underlying data; A processing failure within an IT application or within one of the interfaces; A service interruption or an operational incident. The existence of a set of controls for managing access rights to IT systems involved in the financial information preparation process, as well as an appropriate incident identification and treatment process are key controls to mitigate this risk, the assessment of which is a key audit matter. We identified the key systems, processes, and controls underpinning the preparation of financial information. With the support of our IT specialized teams, e tested the design and operating effectiveness of IT General ontrols for the applications we considered key for the preparation of financial information. For these key IT applications, our work particularly focused on the following aspects:Understanding IT systems, processes, and controls that underpin accounting and financial information; Reviewing the controls implemented by your group related to access rights to IT applications and data, with special attention to privileged access; Analyzing of change management applied to these IT applications during the year ended December 31, 2024; Reviewing IT operations management; Reviewing authorization controls for manual journal entries; Performing, where applicable, additional audit procedures. We also tested IT application controls related to automated interfaces between key systems to assess the completeness and integrity of information transfers, as well as certain sensitive or complex automated application configurations. Valuation of insurance contract liabilities in the "Retirement savings" businesses (See Notes 1.g, 1.p and 5 to the consolidated financial statements) Risk identified Our response As of December 31, 2024, the group booked insurance liabilities related to "savings and retirement" insurance contracts as disclosed in Note 5 to the consolidated financial statements. Participating contracts amount to 241.3 billion euros, as specified in Note 5.e.4 to the consolidated financial statements. As described in note 5 to the consolidated financial statements, the group has assessed the eligibility of insurance contract groups for accounting valuation models defined by IFRS 17. Therefore the group considered that liabilities related to "savings and retirement" insurance contracts correspond to direct participating insurance contracts and are specifically evaluated according to the "variable fee" accounting model. The valuation of insurance liabilities under this accounting model involves determining the best estimate of the present value of cash flows to be paid or received necessary to fulfill contractual obligations to policyholders, a non-financial risk adjustment based on a confidence level chosen by the group, and a contractual service margin representing the unearned profit to be recognized as services are rendered. The valuation of these insurance liabilities using the variable fee methodology relies on complex actuarial models, drawing on data and assumptions related to future periods, such as the determination of the discount rate, policyholder behavior laws, future management decisions, and the definition of real-world assumptions for financial asset returns, used for the release of the contractual service margin into income. The evolution and updates of the selected parameters are likely to significantly affect the amount of insurance liabilities in the Life/Savings perimeter. Given the long-term horizon of commitments related to "savings and retirement" insurance contracts, their significant sensitivity to the economic and financial environment that can impact policyholder behavior, and the significant judgment from management in selecting data and assumptions, as well as the use of complex modeling techniques to reflect the most probable estimated future situation, we considered the valuation of insurance contracts liabilities in the “savings and retirement” businesses to be a key audit matter. With the support of our actuarial modeling specialists and our IT specialized teams, we performed the following audit procedures: Assessed the eligibility of "savings and retirement" insurance contracts for the "variable fee" accounting valuation model and evaluated the correct application by management of these valuation methods to "savings and retirement" insurance contracts in compliance with IFRS 17 provisions; Obtained an understanding of the processes and methodologies defined by the group’s management for determining, according to IFRS 17 principles, the best estimate of the present value of future cash flows necessary to fulfill the contractual obligations to policyholders of "savings and retirement" insurance contracts; Performed audit procedures on the internal control environment of information systems involved in data processing, in setting estimates, and in actuarial calculations regarding the valuation of commitments related to "savings and retirement" insurance contracts; Assessed and tested key controls implemented by management. In this context, we particularly evaluated the control systems related to methodologies, judgments, and key assumptions made by management, as well as those related to governance and controls over processes and validation of actuarial models for projecting discounted future cash flows applied to "savings and retirement" insurance contract commitments. We evaluated any changes in assumptions, parameters, or modeling of actuarial processes impacting the estimation of future cash flows and their correct implementation into actuarial tools; Sample tested the main methodologies, key assumptions, and actuarial parameters used in determining the estimates of discounted future cash flows, non-financial risk adjustment, and contractual service margin. We assessed the reasonableness of these estimates on a sample basis; Sample tested the reliability of underlying data used in projection models and calculations of the best estimate of discounted future cash flows; Performed an independent calculation of the best estimate of cash flows on a sample basis for savings and retirement insurance liabilities; Performed analytical procedures on changes to identify any significant inconsistent or unexpected variations; Evaluated the appropriateness of related disclosures in the notes to the consolidated financial statements. Specific verifications We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations of the information relating to the Group given in the Board of Directors’ management report. We have no matters to report as to its fair presentation and its consistency with the consolidated financial statements. Report on other legal and regulatory requirements Format of preparation of the consolidated financial statements included in the annual financial report We have also verified, n accordance with the professional standard applicable in France relating to the procedures performed by statutory auditors regarding the annual and consolidated financial statements prepared in the European single electronic format, that the preparation of the consolidated financial statements included in the annual financial report mentioned in Article L. 451-1-2, I of the French Monetary and Financial Code (Code monétaire et financier), prepared under the Chief Executive Officer’s responsibility, complies with the single electronic format defined in Commission Delegated Regulation (EU) No. 2019/815 of 17 December 2018. Regarding consolidated financial statements, our work includes verifying that the tagging thereof complies with the format defined in the above-mentioned regulation. On the basis of our work, we conclude that the preparation of the consolidated financial statements included in the annual financial report complies, in all material respects, with the European single electronic format. Appointment of the Statutory Auditors We were appointed as statutory auditors of BNP Paribas by the annual general meeting held on May 23, 2006 for Deloitte & Associés and on May 14, 2024 for ERNST & YOUNG et Autres. As of December 31, 2024, Deloitte & Associés was in the nineteenth year of total uninterrupted engagement, and ERNST & YOUNG et Autres was in the first year, respectively. Responsibilities of Management and those charged with governance for the consolidated financial statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and for such internal control as Management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.In preparing the consolidated financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern, and using the going concern basis of accounting, unless it expects to liquidate the Company or to cease operations. The Financial Statements Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risk management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures. The consolidated financial statements were approved by the Board of Directors. Statutory Auditors’ responsibilities for the audit of the consolidated financial statements Objectives and audit approach Our role is to issue a report on the consolidated financial statements. Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions taken by users on the basis of these consolidated financial statements. As specified in Article L. 821-55 of the French Commercial Code (Code de commerce), our statutory audit does not include assurance on the viability of the Company or the quality of management of the affairs of the Company. As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises professional judgement throughout the audit and furthermore: identifies and assesses the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, designs and performs audit procedures in response to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; obtains an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control; evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management in the consolidated financial statements; assesses the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of the audit report. However, future events or conditions may cause the Company to cease to continue as a going concern. If the Statutory Auditors conclude that a material uncertainty exists, they are required to draw attention in the audit report to the related disclosures in the consolidated financial statements or, if such disclosures are not provided or are inadequate, to modify the opinion expressed therein; evaluates the overall presentation of the consolidated financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation; obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. The Statutory Auditors are responsible for the management, supervision and performance of the audit of the consolidated financial statements and for the opinion expressed on these consolidated financial statements. Report to the Financial Statements Committee We submit to the Financial Statements Committee a report which includes, in particular a description of the scope of the audit and the audit program implemented, as well as the results of our audit. We also report significant deficiencies, if any, in internal control regarding the accounting and financial reporting procedures that we have identified. Our report to the Financial Statements Committee includes the risks of material misstatement that, in our professional judgement, were of most significance in the audit of the consolidated financial statements of the current period and which are therefore the key audit matters, that we are required to describe in this report. We also provide the Financial Statements Committee with the declaration provided for in Article 6 of Regulation (EU) No. 537/2014, confirming our independence within the meaning of the rules applicable in France as set out in particular in Articles L. 821-27 to L. 821-34 of the French Commercial Code (Code de commerce) and in the French Code of Ethics for Statutory Auditors (Code de déontologie de la profession de commissaire aux comptes). Where appropriate, we discuss with the Financial Statements Committee the risks that may reasonably be thought to bear on our independence, and the related safeguards. Paris-La Défense, March 20, 2025 The Statutory Auditors French original signed by Deloitte & Associés Damien Leurent Jean-Vincent Coustel ERNST & YOUNG et Autres Olivier Drion (1) The full set of standards adopted for use in the European Union can be found on the website of the European Commission at: https://ec.europa.eu/info/business-economy-euro/company-reporting-and-auditing/company-reporting_en (2) As defined by IAS 36. (3) Monetary assets and liabilities are assets and liabilities to be received or paid in fixed or determinable amounts of cash. Risk and capital adequacy - Pillar 3 5.1Annual risk survey Key figures Risk factors Top and emerging risks 5.2Capital management and capital adequacy Scope of application Regulatory capital Capital requirement and risk-weighted assets Capital adequacy and capital planning Capital management [Audited] 5.3Risk management [Audited] Governance Risk management organisation Risk culture Risk Appetite Stress testing 5.4Credit risk Exposure to credit risk Credit risk management policy Credit risk diversification Risk-weighted assets Credit risk: Internal Ratings-Based Approach (IRBA) Credit risk: standardised approach Credit risk: equities under the simple weighting method Exposures, provisions and cost of risk [Audited] Restructured loans [Audited] Credit risk mitigation techniques 5.5Securitisation in the banking book BNP Paribas securitisation activities Accounting methods [Audited] Securitisation risk management Securitisation positions Risk-weighted assets 5.6Counterparty credit risk Counterparty credit risk valuation Exposure to counterparty credit risk Bilateral counterparty credit risk Counterparty credit risk for exposures to central counterparties associated with clearing activities CVA risk Counterparty credit risk management Credit derivative exposures Capital requirement and risk-weighted assets 5.7Market risk Capital requirements and risk-weighted assets Market risk related to trading activities Market risk related to banking activities 5.8Liquidity risk Liquidity risk management policy [Audited] Liquidity risk management and supervision Encumbrance of group assets and assets received by the Group 5.9Operational risk Regulatory framework Organisation and oversight mechanism Specific components linked to operational risk Operational risk exposure Capital requirement calculation 5.10Insurance risks [Audited] BNP Paribas Cardif Group Risk Management system Market risk LIquidity risk CREDIT RISK Insurance underwriting risk 5.11Environmental, social and governance risk Business strategy and processes Governance Environmental, social and governance risk management framework Appendix 1: Sovereign exposures Appendix 2: Regulatory capital – Detail Appendix 3: Countercyclical capital buffer and G-SIB buffer Countercyclical capital buffer G-SIB buffer Appendix 4: Capital requirements of significant subsidiaries BNP Paribas Fortis Group BNL Group BNP Paribas Personal Finance Group BGL BNP Paribas Group Appendix 5: Environmental, social and governance risk ESG Assessment (ESG-A) Risk Identification & assessment process (“Risk ID”) Appendix 6: List of tables and figures Appendix 7: Acronyms The purpose of Pillar 3 relative to market discipline is to complement the minimum capital requirements (Pillar 1) and the supervisory review process (Pillar 2) with a set of disclosures completing the usual financial disclosures. Chapter 5 presents the information relative to the BNP Paribas Group’s risks and in this respect meets: the requirements of the eighth part of Regulation (EU) No. 2019/876 of 20 May 2019 on prudential requirements(1) for credit institutions and investment firms. This regulation is set out in the various technical standards published by the European Commission and European Banking Authority aimed at improving the comparability of information published by the institutions. The format and references of the Pillar 3 tables are in line with the entry into application on 28 June 2021 of Implementing Regulation (EU) No. 2021/637; the accounting standards requirements relating to the nature and the extent of the risks. Some information required by accounting standards IFRS 7, IFRS 4 and IAS 1 is included in this chapter and covered by the opinion of the Statutory Auditors on the consolidated financial statements. This information is identified by the mention “[Audited]” and should be read as being part of the notes to the consolidated financial statements; the transparency and disclosure requirements for prudential information on the management of ESG risks and, in particular, the physical and transition risks related to climate change, in accordance with article 449a of Regulation (EU) No. 2019/876 (CRR 2) and in accordance with the content provided by the European Banking Authority (EBA) in the technical implementation standard (ITS) adopted on 28 November 2022. The Basel current measures (known as Basel 3), approved in November 2010, strengthen the ability of banks to withstand economic and financial shocks of all kinds by introducing a series of regulatory provisions. The content of this reform was transposed into European law in Directive 2013/36/EU (CRD 4) and Regulation (EU) No. 575/2013 of 26 June 2013 (CRR), supplemented in June 2019 by Directive (EU) No. 2019/878 (CRD 5) and Regulation (EU) No. 2019/876 (CRR 2). The regulatory framework of Basel 3 had the following main impacts: strengthened solvency: The Basel 3 rules lead to harmonise the definition of capital and strengthen the ability of financial institutions to absorb losses. A detailed description of the composition of regulatory capital is given under Regulatory capital in section 5.2 Capital management and capital adequacy. Rules on calculating risk-weighted assets were also revised to strengthen related capital requirements. These calculation rules are detailed by risk type in the corresponding sections. Strengthened solvency is implemented through the Single Supervisory Mechanism (SSM) overseen by the ECB and the application of the European Banking Authority (EBA) Supervisory Review and Evaluation Process (SREP) guidelines. The BNP Paribas Group, identified as a “financial conglomerate”, is subject to additional supervision. As a financial conglomerate, the Group’s own funds cover the capital requirements for banking activities as well as insurance activities (see Capital adequacy and capital planning in section 5.2 Capital management and capital adequacy); monitoring of a leverage ratio: The main purpose of the leverage ratio is to act as a supplementary measure to the risk-based capital requirements (backstop principle). The minimum requirement is applicable since 1 January 2024 and was proceeded by intermediate requirements applicable since 28 June 2021 and 1 January 2023. The minimum requirement applicable and the Group’s leverage ratio are presented under Capital management and capital planning in section 5.2 Capital management and capital adequacy; liquidity management: The implementation of liquidity requirements with the introduction of a short-term liquidity ratio (Liquidity Coverage Ratio – LCR) and a long-term liquidity ratio (Net Stable Funding Ratio – NSFR) is presented in section 5.8 Liquidity risk. The minimum liquidity coverage ratio has been set at 100% of total net cash outflows during the 30-day stress period; monitoring of the bank resolution scheme: The monitoring of bank resolution scheme introduced on 1 January 2016 has been accompanied, since 27 June 2019, by a TLAC (Total Loss Absorbing Capacity) minimum ratio applicable to global systemically important banks (G-SIBs). This requirement is supplemented in Europe by the introduction of an MREL (Minimum Requirement for own funds and Eligible Liabilities) ratio applicable since 1 January 2024, preceded an intermediate requirement applicable since 1 January 2022 (see Capital adequacy and capital planning in section 5.2 Capital management and capital adequacy). Furthermore, on 7 December 2017, the Group of Governors and Heads of Supervision (GHOS) approved the reforms finalising the Basel 3 regulatory framework. They consist of a revision of the framework for credit risk, credit valuation adjustment (CVA – Credit Value Adjustment) risk, and operational risk, as well as the introduction of a floor for the calculation of risk-weighted assets when an internal method is used. These proposals were supplemented by the fundamental review of the trading book (FRTB) in January 2019 and the CVA risk in July 2020. Transposition of Basel 3 finalisation into European law, Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024 amending Regulation (EU) No 575/2013 was published in the Official Journal of European Union on 19 June 2024. This regulation entered into force on 9 July 2024 and is applicable from 1 January 2025. On 24 July 2024, the European Commission adopted a delegated act (2024/2795) that postpones by one year (i.e. until 1 January 2026) the date of application of the Basel 3 fundamental review of the trading book (FRTB) standards in the EU for the banks’ calculation of their own funds requirements for market risk. In chapter 5, the figures shown may not appear to add up in certain columns and rows due to rounding. Certification and governance I, the undersigned, Lars Machenil, Chief Financial Officer (CFO) of the BNP Paribas Group, hereby confirm that the information contained in chapter 5 Risks and capital adequacy – Pillar 3 is, to the best of my knowledge, compliant with the requirements of the eighth part of Regulation (EU) No. 2019/876 (CRR 2). Paris, 20 March 2025. The BNP Paribas Group operates all of its activities within the framework of a robust internal control system. Control plans and procedures are in place within the Group to ensure the proper compliance of the information contained in the management report. A committee, chaired by the Deputy Chief Financial Officer, has examined chapter 5 and verified that the controls have been carried out and that the regulatory requirements in terms of publication have been complied with, including the provisions of article 432 of Regulation (EU) No. 2019/876 (CRR 2) relating to non-material, sensitive and confidential information. Since 1 January 2023, the Group’s insurance entities have applied IFRS 17 “Insurance Contracts” and IFRS 9, deferred for these entities until IFRS 17 comes into force. In the first half of 2024, the Group carried out the 2024 share buyback programme in full for a total amount of EUR 1.055 billion. Since 1 July 2024, the entities of the Arval business under exclusive control are fully consolidated within the prudential scope. As at 30 September 2024, this evolution had an impact of -30 basis points on the Group's Common Equity Tier 1 (CET1) ratio linked to the EUR 20.2 billion increase in these entities’ risk-weighted assets, mainly on credit risk. 5.1Annual risk survey Key figures Regulatory ratios Change in Group solvency The Group has a solid financial structure. The CET1 ratio stands at 12,9%(2) as at 31 December 2024, increasing by 30 basis points compared to 31 December 2023. This is explained by: the impact of the full consolidation within the prudential scope since 1 July 2024 of the entities of the Arval business under exclusive control (-30 bps) linked to the EUR 20 billion increase in these entities’ risk-weighted assets, mainly on credit risk; the 2024 results after taking a 60% payout ratio into account, net of the risk-weighted assets' intrinsic growth (+30 bps); optimising risk-weighted assets linked to the implementation of securitisation and credit insurance programmes (+10 bps); the impact of updating of models and regulations (-25 bps); the redeployment of the proceeds from the sale of Bank of the West capital (-15 bps). The Group’s CET1 ratio was significantly higher than requirements at 31 December 2024 at 10.33%. The capital structure is solid in line with the CET1 ratio target of 12.3% at 31 December 2025 and 31 December 2026 before the fundamental review of the trading book (FRTB) standards. The leverage ratio stood at 4.6% at 31 December 2024, stable compared 31 December 2023. It was well above the 3.85% leverage requirement in force at 31 December 2024. As at 31 December 2024, the Group TLAC ratio was above the minimum level of requirement (see part TLAC of section 5.2 Capital management and capital adequacy). As at 31 December 2024, the Group MREL ratios is above the minimum requirements (see part MREL of section 5.2 Capital management and capital adequacy). The evolution of these ratios illustrates the Group’s ability to continuously adapt and the strength of its balance sheet. Key regulatory ratios The capital ratio data below take into account the transitional provisions relating to the introduction of IFRS 9 (article 473a of Regulation (EU) No. 2017/2395 and Regulation (EU) No. 2020/873). The impact of these transitional measures on regulatory capital and regulatory ratios is presented under Regulatory capital in section 5.2 Capital management and capital adequacy (see Table 16 IFRS 9-FL). ➤TABLE 1: KEY INDICATORS (EU KM1) a b c d e In millions of euros 31 December 2024 30 September 2024 30 June 2024 31 March 2024 31 December 2023 Available own funds 1 Common Equity Tier 1 (CET1) capital 98,128 96,255 95,506 94,383 92,857 2 Tier 1 capital 113,768 111,853 110,303 109,146 107,501 3 Total capital 130,581 126,867 124,075 123,246 121,744 Risk-weighted assets 4 Total risk-weighted assets 762,247 759,445 732,758 722,349 703,694 Capital ratios (as a percentage of risk-weighted assets) 5 Common Equity Tier 1 ratio 12.87% 12.67% 13.03% 13.07% 13.20% 6 Tier 1 ratio 14.93% 14.73% 15.05% 15.11% 15.28% 7 Total capital ratio 17.13% 16.71% 16.93% 17.06% 17.30% Additional own funds requirements in relation to on SREP (Pillar 2 requirement as a percentage of risk-weighted assets) EU 7a Total Pillar 2 requirements 1.77% 1.77% 1.77% 1.77% 1.57% EU 7b Of which Additional CET1 SREP requirements 1.11% 1.11% 1.11% 1.11% 0.88% EU 7c Of which Additional AT1 SREP requirements 1.40% 1.40% 1.40% 1.40% 1.18% EU 7d Total SREP own funds requirements 9.77% 9.77% 9.77% 9.77% 9.57% Combined buffer requirement (as a percentage of risk-weighted assets) 8 Capital conservation buffer 2.50% 2.50% 2.50% 2.50% 2.50% EU 8a Conservation buffer due to macro-prudential or systemic risk identified at the level of a Member State (%) 9 Countercyclical capital buffer 0.67% 0.65% 0.65% 0.59% 0.40% EU 9a Systemic risk buffer(1) 0.04% 0.00% 0.00% 0.00% 0.00% 10 Global Systemically Important Institution buffer (G-SIB) 1.50% 1.50% 1.50% 1.50% 1.50% EU 10a Other Systemically Important Institution buffer (D-SIB) 1.50% 1.50% 1.50% 1.50% 1.50% 11 Combined buffer requirement(2) 4.72% 4.65% 4.65% 4.59% 4.40% EU 11a Total overall capital requirements(3) 14.49% 14.42% 14.42% 14.36% 13.97% 12 CET1 available after meeting the total SREP own funds requirements 7.26% 6.94% 7.16% 7.29% 7.73% Leverage ratio 13 Leverage ratio total exposure measure 2,464,334 2,532,529 2,478,954 2,471,247 2,346,500 14 Leverage ratio 4.62% 4.42% 4.45% 4.42% 4.58% Additional own funds requirements to address risks of excessive leverage (as a percentage of leverage ratio total exposure measure) EU 14a Additional requirements to address risk of excessive leverage 0.10% 0.10% 0.10% 0.10% 0.00% EU 14b Of which Additional AT1 leverage ratio requirements (%) 0.00% 0.00% 0.00% 0.00% 0.00% EU 14c Total SREP leverage ratio requirements 3.10% 3.10% 3.10% 3.10% 3.00% Buffer and total leverage ratio requirement (as a percentage of leverage ratio total exposure measure) EU 14d Applicable leverage buffer 0.75% 0.75% 0.75% 0.75% 0.75% EU 14e Overall leverage ratio requirements 3.85% 3.85% 3.85% 3.85% 3.75% Liquidity Coverage Ratio 15 Total high-quality liquid assets (HQLA) (Weighted value – average) 380,615 382,064 385,811 397,582 408,476 EU 16a Cash outflows – Total weighted value 544,168 528,616 520,995 516,104 519,311 EU 16b Cash inflows – Total weighted value 253,015 241,052 234,735 225,538 219,452 16 Total net cash outflows (adjusted value) 291,153 287,565 286,260 290,566 299,859 17 Liquidity coverage ratio 130.80% 132.96% 134.85% 136.92% 136.47% Net Stable Funding Ratio 18 Total available stable funding 1,041,153 1,023,548 1,007,767 1,004,717 984,120 19 Total required stable funding 931,639 920,796 892,980 887,452 848,977 20 Net Stable Funding Ratio 111.75% 111.16% 112.85% 113.21% 115.92% Systemic risk buffer in Italy since 31 December 2024 equivalent to 0.5% of credit and counterparty RWA in Italy (reciprocity measure taken by HCSF on 17 October 2024). The buffer requirements take into account the highest buffer between G-SIB and D-SIB. Excluding non-public Pillar 2 guidance (P2G). The minimum requirement for LCR and NSFR ratios is 100%. ➤Table 2: MREL & TLAC ratios (EU KM2) a b c d e f In millions of euros MREL TLAC 31 December 2024 31 December 2024 30 September 2024 30 June 2024 31 March 2024 31 December 2023 Own funds and eligible liabilities, ratios and components 1 Total capital and other eligible liabilities 231,690 208,042 203,377 202,111 201,935 198,082 EU-1a Of which own funds and subordinated liabilities 208,042 2 Risk-weighted assets 762,247 762,247 759,445 732,758 722,349 703,694 3 Own funds and eligible liabilities ratio (in percentage of risk-weighted assets) 30.40% 27.29% 26.78% 27.58% 27.96% 28.15% EU-3a Of which own funds and subordinated liabilities 27.29% 4 Leverage ratio total exposure measure 2,464,334 2,464,334 2,532,529 2,478,954 2,471,247 2,346,500 5 Own funds and eligible liabilities ratio (in percentage of leverage ratio total exposure measure) 9.40% 8.44% 8.03% 8.15% 8.17% 8.44% EU-5a Of which own funds and subordinated liabilities 8.44% 6a Application of the exemption provided by article 72b(4) of EU Regulation 2019/876(1) Not applicable Not applicable Not applicable Not applicable Not applicable 6b In case of application of article 72b, paragraph 3 of Regulation (UE) No. 2019/876: total amount of preferred senior debt eligible to TLAC ratio(1) Not applied Not applied Not applied Not applied Not applied 6c In case of application of article 72b, paragraph 3 of Regulation (UE) No. 2019/876: proportion of preferred senior debt used in the calculation of the TLAC ratio(1) Not applied Not applied Not applied Not applied Not applied Requirement of own funds and eligible liabilities EU-7 Requirement (in percentage of risk-weighted assets) 22.64% 18.00% 18.00% 18.00% 18.00% 18.00% EU-8 Of which to be met with own funds or subordinated liabilities 14.52% Requirement, including combined buffer requirement (in percentage of risk-weighted assets) 27.36% 22.72% 22.65% 22.65% 22.59% 22.40% Of which to be met with own funds or subordinated liabilities 19.24% EU-9 Requirement (in percentage of leverage ratio total exposure measure) 5.91% 6.75% 6.75% 6.75% 6.75% 6.75% EU-10 Of which to be met with own funds or subordinated liabilities 5.86% In accordance with article 72b paragraphs 3 and 4 of Regulation (EU) No. 575/2013 as amended by Regulation (EU) No. 2019/876, some preferred senior debt instruments (amounting to EUR 23,648 million as at 31 December 2024) were eligible within the limit of 3.5% of risk-weighted assets. The Group did not use this option at 31 December 2024. Tables providing details of instruments recognised as capital (CET1, AT1 and Tier 2), as well as debt instruments eligible for TLAC ratio (senior non-preferred debt) are available in the BNP Paribas Debt section of the Investor Relations website: https://invest.bnpparibas/en/search/debt/documents/documentation-on-programs-and-issuances. Risk-weighted assets by risk type and by business line ➤Figure 1: Risk-weighted assets by risk type(1) (1) Breakdown at 31 December 2024. Most of the Group’s exposures are subject to credit risk. Market risk is limited to 4% of the Group’s risk-weighted assets as at 31 December 2024. ➤Figure 2: Risk-weighted assets by business line(1) (1) Breakdown at 31 December 2024. As at 31 December 2024, the Group’s risks were well spread and no single business made up more than 20% of the Group’s risk-weighted assets. Commercial, Personal Banking & Services account for 54% of risk-weighted assets. Other key figures ➤Figure 3: Credit risk Exposure breakdown by geographic region(1) (1) Breakdown at 31 December 2024. As at 31 December 2024, the Group’s exposure was mainly concentrated in Europe (74%). See the section Credit risk diversification in section 5.4 Credit risk for more details about the diversification of the Group’s exposures. ➤Figure 4: Credit risk exposure breakdown by asset class(1) (1) Breakdown at 31 December 2024. Exposure to central governments and central banks, credit institutions, other financial corporations and non-financial corporations represented 80% of total exposure as at 31 December 2024, versus 80% as at 31 December 2023. ➤TABLE 3: DOUBTFUL LOANS ON GROSS OUTSTANDINGS RATIO 31 December 2024 31 December 2023 DOUBTFUL LOANS(1)/LOANS(2) 1.6% 1.7% Impaired loans (stage 3) to customers and credit institutions, not netted of guarantees, on-balance sheet and off-balance sheet and including debt securities measured at amortised cost or at fair value through shareholders’ equity (excluding insurance). Gross outstanding loans to customers and credit institutions, on-balance sheet and off-balance sheet and including debt securities measured at amortised cost or at fair value through shareholders’ equity (excluding insurance). ➤TABLE 4: STAGE 3 COVERAGE RATIO In billions of euros 31 December 2024 31 December 2023 Stage 3 provisions 13.9 13.8 Doubtful loans(1) 19.9 19.2 STAGE 3 COVERAGE RATIO 69.7% 71.7% Impaired loans (stage 3) to customers and credit institutions, on-balance sheet and off-balance sheet, netted of guarantees received, including debt securities measured at amortised cost or at fair value through shareholders’ equity (excluding insurance). ➤TABLE 5: COST OF RISK ON OUTSTANDINGS In annualised basis points 31 December 2024 31 December 2023 COST OF RISK/CUSTOMER LOANS(1) 33 32 Cost of risk divided by customer loans at the beginning of the period (see chapter 3 section 3.9 Alternative performance measures (APM) – article 223-1 of the AMF’s General Regulation). ➤TABLE 6: IMMEDIATELY AVAILABLE LIQUIDITY RESERVE In billions of euros 31 December 2024 31 December 2023 IMMEDIATELY AVAILABLE LIQUIDITY RESERVE(1) 480 474 Liquid market assets or eligible to central banks (“counterbalancing capacity”) taking into account prudential standards, notably US standards, minus intra-day payment systems needs. Risk factors The main categories of risks inherent to the BNP Paribas Group’s business are presented below and defined in the sections of chapter 5. They can be measured through risk-weighted assets or other quantitative or qualitative indicators, to the extent risk-weighted assets are not relevant (for example, for liquidity and funding risk). In billions of euros RWAs 31 December 2024 31 December 2023 Credit risk 580 535 Counterparty credit risk 48 45 Securitisation risk in the banking book 21 17 Operational risk 65 59 Market risk 28 29 Amounts below the thresholds for deduction (subject to 250% risk weight) 21 19 TOTAL 762 704 More generally, the risks to which the BNP Paribas Group is exposed may arise from a number of factors related, among others, to changes in its macroeconomic or regulatory environment or factors related to the implementation of its strategy and its business. The material risks specific to the BNP Paribas Group’s business, determined based on the circumstances known to the management as of the date of this document, are thus presented below under seven principal categories, in accordance with article 16 of Regulation (EU) No. 2017/1129 of 14 June 2017, as amended from time to time: credit risk, counterparty risk and securitisation risk in the banking book; operational risk; market risk; liquidity and funding risk; risks related to the macroeconomic and market environment; regulatory risks; and risks related to the BNP Paribas Group’s growth in its current environment. The risk management policies have been taken into account in assessing the materiality of these risks; in particular, risk-weighted assets factor in risk mitigation elements to the extent eligible in accordance with applicable banking regulations. 1.CREDIT RISK, COUNTERPARTY RISK AND SECURITISATION RISK IN THE BANKING BOOK 1.1A substantial increase in new provisions or a shortfall in the level of previously recorded provisions exposed to credit risk and counterparty risk could adversely affect the BNP Paribas Group’s results of operations and financial condition. Credit risk and counterparty risk impact the BNP Paribas Group’s consolidated financial statements when a customer or counterparty is unable to honour its obligations and when the book value of these obligations in the BNP Paribas Group’s records is positive. The customer or counterparty may be a bank, a financial institution, an industrial or commercial enterprise, a government or a government entity, an investment fund, or a natural person. At 31 December 2024, the BNP Paribas Group’s credit risk exposure broke down as follows: corporates (44%), central governments and central banks (22%), retail customers (24%), credit institutions and investment firms (4%), other risk assets (4%) and equities (1%). At 31 December 2024, 28% of the Bank’s credit exposure was comprised of exposures in France, 16% in Belgium and Luxembourg, 10% in Italy, 23% in other European countries, 11% in North America, 7% in Asia and 5% in the rest of the world. The BNP Paribas Group’s risk-weighted assets subject to this type of risk amounted to EUR 580 billion at 31 December 2024, or 76% of the total risk-weighted assets of the BNP Paribas Group, as compared to EUR 535 billion at 31 December 2023, representing 77% of the total risk-weighted assets of the BNP Paribas Group. At 31 December 2024, BNP Paribas Group’s exposure to counterparty risk was: 36% to the corporate sector, 11% to central governments and central banks, 18% to credit institutions and investment firms, and 34% to clearing houses. By product, BNP Paribas Group’s exposure at 31 December 2024, excluding CVA (“Credit Valuation Adjustment”) risk, is comprised of: 43% in OTC derivatives, 34% in repurchase transactions and securities lending/borrowing, 9% in listed derivatives and 14% in contributions to the clearing houses’ default funds. The level of this counterparty risk varies over time, depending on fluctuations in market parameters affecting the potential future value of the covered transactions. In addition, CVA risk measures the risk of losses related to CVA volatility resulting from fluctuations in credit spreads associated with the counterparties to which the Group is subject to risk. The risk-weighted assets subject to counterparty credit risk amounted to EUR 48 billion at 31 December 2024, or 6% of the total risk-weighted assets of the BNP Paribas Group, as compared to EUR 45 billion at 31 December 2023, or 6% of the total risk-weighted assets of the BNP Paribas Group. The BNP Paribas Group is also exposed to credit and counterparty risk through securitisation in its banking book, either because it has not fully transferred its own credit exposure as the originator of a securitisation or because it has invested in a securitisation transaction with third-party assets (whether as an investor or as a sponsor that has structured the transaction for a client and retained a position). Of the exposures to securitisation positions originated, held or acquired by the BNP Paribas Group as at 31 December 2024, the Bank was originator of 39%, was sponsor of 31% and was investor of 30%. The risk-weighted assets subject to this type of risk amounted to EUR 21 billion at 31 December 2024, or 3% of the total risk-weighted assets for the BNP Paribas Group, compared to EUR 17 billion at 31 December 2023, or 2% of the total risk-weighted assets for the BNP Paribas Group. If the default rate of customers or counterparties increases, the BNP Paribas Group may have to record increased charges or provisions in respect of irrecoverable or doubtful loans (Stage 3) or performing loans (Stages 1 and 2), in response to a deterioration in economic conditions or other factors, which may affect its profitability. As a result, in connection with its lending activities, the BNP Paribas Group regularly establishes provisions, which are recorded on its income statement in the line item Cost of Risk. In 2024, the cost of risk amounted to EUR 2,999 million compared to EUR 2,907 million in 2023. This amount reflects write-backs of provisions on performing loans in an amount of EUR 765 million in 2024, and provisions on doubtful loans of EUR 3,764 million. At 31 December 2024, the cost of risk does not include other net charges for risk on financial instruments (i.e. charges relating to risks that call into question the validity or enforceability of financial instruments). These charges amount to EUR 202 million as at 31 December 2024, and in 2024 they included provisions relating to mortgage loans denominated in Swiss francs or indexed to the Swiss franc in the amount of EUR 186 million and losses in connection with the act on assistance to borrowers in Poland in the amount of EUR 16 million. The BNP Paribas Group’s overall level of provisions is based on its assessment of prior loss experience, the volume and type of lending being conducted, industry standards, past due loans, economic conditions and other factors related to the recoverability of various loans or statistical analysis based on scenarios applicable to asset classes. The BNP Paribas Group seeks to establish an appropriate level of provisions. Although the BNP Paribas Group seeks to establish an appropriate level of provisions, its lending businesses may have to substantially increase their provisions for loan losses or sound receivables in the future as a result of deteriorating economic conditions or other causes. For example, provisions increased in 2020 primarily due to the early ex-ante recognition of potential losses related to the effects of the health crisis (Stages 1 and 2 provisions on performing loans in accordance with IFRS 9). These provisions could also increase if the rise in corporate defaults observed in 2024 persists and/or if defaults stabilise at a high level compared with previous years. Any significant increase in provisions for loan losses or a significant change in the BNP Paribas Group’s estimate of the risk of loss inherent in its portfolio of non-impaired loans, as well as the occurrence of loan losses in excess of the related provisions, could have a material adverse effect on the BNP Paribas Group’s results of operations and financial condition. For reference, at 31 December 2024, the ratio of doubtful loans to total loans outstanding was 1.6% and the coverage ratio of these doubtful commitments (net of guarantees received) by provisions was 69.7%, against 1.7% and 71.7%, respectively, as at 31 December 2023. While the BNP Paribas Group seeks to reduce its exposure to credit risk and counterparty risk by using risk mitigation techniques such as collateralisation, obtaining guarantees, entering into credit derivatives and entering into netting agreements, it cannot be certain that these techniques will be effective to offset losses resulting from counterparty defaults that are covered by these techniques. Moreover, the BNP Paribas Group is also exposed to the risk of default by the party providing the credit risk coverage (such as a counterparty in a derivative or a loan insurance contract) or to the risk of loss of value of any collateral. In addition, only a portion of the BNP Paribas Group’s overall credit risk and counterparty risk is covered by these techniques. Accordingly, the BNP Paribas Group has significant exposure to these risks. 1.2The soundness and conduct of other financial institutions and market participants could adversely affect the BNP Paribas Group. The BNP Paribas Group’s ability to engage in financing, investment and derivative transactions could be adversely affected by the soundness of other financial institutions or market participants. Financial institutions are interrelated as a result of trading, clearing, counterparty, funding or other relationships. As a result, defaults by one or more States or financial institutions, or even rumours or questions about one or more financial institutions, or the financial services industry generally, may lead to market-wide liquidity problems and could lead to further losses or defaults. The BNP Paribas Group has exposure to many counterparties in the financial industry, directly and indirectly, including clearing houses, brokers and dealers, commercial banks, investment banks, mutual and alternative investment funds, and other institutional clients with which it regularly executes transactions. The BNP Paribas Group may also be exposed to risks related to the increasing involvement in the financial sector of players and the introduction of new types of transactions subject to little or no regulation (e.g. unregulated funds, trading venues or crowdfunding platforms). Credit and counterparty risks could be exacerbated if the collateral held by the BNP Paribas Group cannot be realised, it decreases in value or it is liquidated at prices not sufficient to recover the full amount of the loan or derivative exposure due to the BNP Paribas Group or in the event of the failure of a significant financial market participant such as a central counterparty. For reference, counterparty risk exposure related to credit institutions and investment firms was EUR 44 billion at 31 December 2024, or 18% of the BNP Paribas Group’s total counterparty risk exposure, and counterparty risk exposure related to clearing houses was EUR 82 billion, or 34% of the BNP Paribas Group’s total counterparty risk exposure, compared with rates of 23% and 28%, respectively, as at 31 December 2023. In addition, fraud or misconduct by financial market participants can have a material adverse effect on financial institutions due in particular to the interrelated nature of the financial markets. An example is the fraud perpetrated by Bernard L. Madoff Investment Securities LLC that came to light in 2008, as a result of which numerous financial institutions, including the BNP Paribas Group, announced losses or exposure to losses in substantial amounts. The BNP Paribas Group remains the subject of various claims in connection with this matter; see note 8.c Legal proceedings and arbitration to its audited consolidated financial statements for the year ended 31 December 2024. Losses resulting from the risks summarised above could materially and adversely affect the BNP Paribas Group’s results of operations. 2.OPERATIONAL RISK The BNP Paribas Group’s risk-weighted assets subject to operational risk amounted to EUR 65 billion at 31 December 2024, or 8% of the total risk-weighted assets of the BNP Paribas Group, and EUR 59 billion at 31 December 2023, or 8% of the total risk-weighted assets of the BNP Paribas Group. The breakdown of losses by type of operational risk for the 2016-2024 period is balanced on the whole. The main type of operational risk incidents remains the “Clients, products and business practices” category (35%), followed by process failures, including errors in executing or processing transactions (30%), and then external fraud (25%). Between 2016 and 2024, other types of risk in operational risk consisted of business disruption and systems failure (4%), employment practices and workplace safety (3%), damage to physical assets (2%) and internal fraud (1%). 2.1The BNP Paribas Group’s risk management policies, procedures and methods may leave it exposed to unidentified or unanticipated risks, which could lead to material losses. The BNP Paribas Group devotes significant resources to developing its risk management policies, procedures and assessment methods and intends to continue to do so in the future. Nonetheless, the BNP Paribas Group’s risk management techniques and strategies may not be fully effective in mitigating its risk exposure in all economic and market environments within which the BNP Paribas Group operates. These techniques and strategies could also prove to be ineffective against all types of risk, particularly risks that the BNP Paribas Group may have failed to identify or anticipate. The BNP Paribas Group’s ability to assess the creditworthiness of its customers, or risk parameters, such as the value of its assets and the effectiveness of its hedges, or to measure risks adequately if, as a result of market turmoil or in certain market environments such as those experienced in recent years, the models and approaches it uses become less predictive of future behaviour, valuations, assumptions or estimates. Some of the BNP Paribas Group’s qualitative tools and metrics for managing risk are based on its use of observed historical market behaviour. The BNP Paribas Group applies statistical and other tools to these observations to arrive at quantifications of its risk exposures. The process the BNP Paribas Group uses to estimate losses inherent in its credit exposure or estimate the value of certain assets requires difficult, subjective, and complex judgments, including forecasts of economic conditions and how these economic predictions might impair the ability of its borrowers to repay their loans or impact the value of assets, which may, during periods of market disruption or substantial uncertainty, be incapable of accurate estimation and, in turn, impact the reliability of the process. These tools and metrics may fail to predict future risk exposures, including, for example, if the BNP Paribas Group does not anticipate or correctly evaluate certain factors in its statistical models, or upon the occurrence of an event deemed extremely unlikely by the tools and metrics. This would limit the BNP Paribas Group’s ability to manage its risks. The BNP Paribas Group’s losses could therefore be significantly greater than the historical measures indicate. In addition, the BNP Paribas Group’s quantified modelling does not take all risks into account. Its more qualitative approach to managing certain risks could prove insufficient, exposing it to material unanticipated losses. 2.2An interruption in or a breach of the BNP Paribas Group’s information systems, or of those of its third-party service providers, may cause substantial losses of client or customer information, damage to the BNP Paribas Group’s reputation and result in financial losses. As with most other banks, the BNP Paribas Group relies heavily on communications and information systems to conduct its business. This dependency has increased with the spread of mobile and online banking and payment services, the development of cloud computing, and more generally the use of new technologies. These technologies are mainly developed internally but some are provided by third parties. Any failure or interruption or breach in security of these systems could result in failures or interruptions in the BNP Paribas Group’s customer relationship management, general ledger, deposit, servicing and/or loan organisation systems or could cause the BNP Paribas Group to incur significant costs in recovering and verifying lost data. The BNP Paribas Group cannot provide assurances that such failures or interruptions will not occur or, if they do occur, that they will be adequately addressed by it or by its third-party service providers. In addition, the BNP Paribas Group is subject to cybersecurity risk, or risk caused by a malicious and/or fraudulent act, committed virtually, with the intention of manipulating information (confidential, banking/insurance, technical or strategic data), processes and users, in order to cause material losses to the BNP Paribas Group’s subsidiaries, employees, partners and clients, for the purpose of extortion (ransomware) and/or for political or ideological purposes. An increasing number of companies (including financial institutions) have in recent years experienced intrusion attempts or even breaches of their information technology security, some of which have involved highly sophisticated and targeted attacks on their computer networks. Because the techniques used to obtain unauthorised access, disable or degrade service, steal confidential data or sabotage information systems have become more sophisticated, change frequently and often are not recognised until launched against a target, the BNP Paribas Group and its third-party service providers may be unable to anticipate these techniques or to implement in a timely manner effective and efficient countermeasures. Any failures of or interruptions in the BNP Paribas Group’s information systems or those of its providers and any subsequent disclosure of confidential information related to any client, counterpart or employee of the BNP Paribas Group (or any other person) or any intrusion or attack against its communication system, or the communication systems of its third-party service providers, could cause significant losses and have an adverse effect on the BNP Paribas Group’s reputation, financial condition and results of operations. Regulatory authorities now consider cybercriminality to be a growing systemic risk for the financial sector. They have stressed the need for financial institutions to improve their resilience to cyber-attacks by strengthening internal IT monitoring and control procedures. A successful cyber-attack could therefore expose the Group to a regulatory fine, especially should any personal customer data be lost. Moreover, the BNP Paribas Group is exposed to the risk of operational failure or interruption of a clearing agent, foreign markets, clearing houses, custodian banks or any other financial intermediary or external service provider used by the BNP Paribas Group to execute or facilitate financial transactions. Due to its increased interaction with clients, the BNP Paribas Group is also exposed to the risk of operational malfunction of the latter’s information systems. The BNP Paribas Group’s communications and data systems and those of its clients, service providers and counterparties may also be subject to malfunctions or interruptions as a result of cyber-crime or cyber-terrorism. The BNP Paribas Group cannot guarantee that these malfunctions or interruptions in its own systems or those of other parties will not occur or that in the event of a cyber-attack, these malfunctions or interruptions will be adequately resolved. 2.3Reputational risk could weigh on the BNP Paribas Group’s financial strength and diminish the confidence of clients and counterparties in it. Considering the highly competitive environment in the financial services industry, a reputation for financial strength and integrity is critical to the BNP Paribas Group’s ability to attract and retain customers. The BNP Paribas Group’s reputation could be harmed if the means it uses to market and promote its products and services were to be deemed inconsistent with client interests. The BNP Paribas Group’s reputation could also be damaged if, as it increases its client base and the scale of its businesses, its overall procedures and controls dealing with conflicts of interest fail, or appear to fail, to address them properly. Moreover, the BNP Paribas Group’s reputation could be damaged by employee misconduct or labour strikes or other disputes, fraud or misconduct by financial industry participants to which the BNP Paribas Group is exposed, a restatement of, a decline in, or corrections to its results, as well as any adverse legal or regulatory action, such as the settlement the BNP Paribas Group entered into with the US authorities in 2014 for violations of US laws and regulations regarding economic sanctions. The loss of business that could result from damage to the BNP Paribas Group’s reputation could have an adverse effect on its results of operations and financial position. 3.MARKET RISK 3.1The BNP Paribas Group may incur significant losses on its trading and investment activities due to market fluctuations and volatility. The risk-weighted assets of the BNP Paribas Group subject to market risk amounted to EUR 28 billion at 31 December 2024, or almost 4% of the BNP Paribas Group’s total risk-weighted assets, compared to EUR 29 billion at 31 December 2023, or 4% of the total risk-weighted assets of the BNP Paribas Group. BNP Paribas Group is exposed to market risk mainly through trading activities carried out by the business lines of its Corporate & Institutional Banking (CIB) operating division, in particular in Global Markets, which represented 18% of the BNP Paribas Group’s revenue in 2024. The BNP Paribas Group maintains trading and investment positions in the debt, currency, commodity and equity markets, and in unlisted securities, real estate and other asset classes, including through derivative contracts. BNP Paribas Group’s trading activities are directly linked to economic relations with clients of these business lines, or indirectly as part of its market making activity. These positions could be adversely affected by extreme volatility in these markets, i.e. the degree to which prices fluctuate over a particular period in a particular market, regardless of market levels. Moreover, volatility trends that prove substantially different from the BNP Paribas Group’s expectations may lead to losses relating to a broad range of other products that the BNP Paribas Group uses, including swaps, forward and future contracts, options and structured products. To the extent that the BNP Paribas Group owns assets, or has net long positions, in any of those markets, a market downturn could result in losses from a decline in the value of its positions. Conversely, to the extent that the BNP Paribas Group has sold assets that it does not own, or has net short positions in any of those markets, a market upturn could, in spite of the existing limitation of risks and control systems, expose the BNP Paribas Group to potentially substantial losses as it attempts to cover its net short positions by acquiring assets in a rising market. The BNP Paribas Group may from time to time hold a long position in one asset and a short position in another, in order to hedge transactions with clients and/or in view of benefitting from changes in the relative value of the two assets. If, however, the relative value of the two assets changes in a direction or manner that the BNP Paribas Group did not anticipate or against which its positions are not hedged, it might realise a loss on those paired positions. Such losses, if significant, could adversely affect the BNP Paribas Group’s results and financial condition. In addition, the BNP Paribas Group’s hedging strategies may not be suitable for certain market conditions. If any of the variety of instruments and strategies that the BNP Paribas Group uses to hedge its exposure to various types of risk in its businesses is not effective, the BNP Paribas Group may incur losses that could adversely affect its operating results and financial position. Many of its strategies are based on historical trading patterns and correlations. For example, if the BNP Paribas Group holds a long position in an asset, it may hedge that position by taking a short position in another asset where the short position has historically moved in a direction that would offset a change in the value of the long position. However, the hedge may only be partial, or the strategies used may not protect against all future risks or may not be fully effective in mitigating the BNP Paribas Group’s risk exposure in all market environments or against all types of risk in the future. Unexpected market developments may also reduce the effectiveness of the BNP Paribas Group’s hedging strategies. In addition, the manner in which gains and losses resulting from certain ineffective hedges are recorded may result in additional volatility in the BNP Paribas Group’s reported earnings. In addition, market risk relating to the BNP Paribas Group’s banking activities includes its interest rate and foreign exchange rate risks in connection with its activities as a banking intermediary. The “operating” foreign exchange risk exposure relates to net earnings generated by activities conducted in currencies other than the functional currency of the entity concerned. The “structural” foreign exchange risk position of an entity relates to investments in currencies other than the functional currency. The BNP Paribas Group uses the concepts of standard rate risk and structural rate risk in measuring interest rate risk. Standard rate risk corresponds to the general case for a given transaction. Structural rate risk is the interest rate risk relating to own funds and non-interest-bearing current accounts. The BNP Paribas Group uses a “Value at Risk” (VaR) model and various other market indicators (stressed VaR, Incremental Risk Charge, Comprehensive Risk Measure for the credit correlation portfolio) to quantify its exposure to potential losses from market risks, and also performs stress testing and sensitivity analysis compared with market limits with a view to quantifying its potential exposure in extreme scenarios (see Market Risk Stress Testing Framework in section 5.7 Market risk of BNP Paribas’ Universal registration document at 31 December 2024). However, these techniques rely on statistical methodologies based on historical observations, which may turn out to be unreliable predictors of future market conditions. Accordingly, the BNP Paribas Group’s exposure to market risk in extreme scenarios could be greater than the exposures predicted by its quantification techniques. More generally, the volatility of financial markets resulting from disruptions or deteriorations in macroeconomic conditions could adversely affect the BNP Paribas Group’s trading and investment positions in the debt, currency, commodity and equity markets, as well as its positions in other investments such as commercial real estate. For reference, and as indicated below, the revenues of Global Markets, the main business line of the Corporate & Institutional Banking (CIB) division, which handles the BNP Paribas Group’s trading activities, accounted for 18% of the BNP Paribas Group’s revenues in 2024. Severe market disruptions and extreme market volatility have occurred often in recent years (including in 2024 in response to the political instability in France since the dissolution of the Assemblée nationale on 9 June 2024) and may persist or resurface, which could result in significant losses for the BNP Paribas Group. Such losses may extend to a broad range of trading and hedging products, including swaps, forward and future contracts, options and structured products. The volatility of financial markets makes it difficult to predict trends and implement effective trading strategies. It also weighs on the primary equity and bond markets, affecting the activity of Corporate & Institutional Banking. 3.2The BNP Paribas Group may generate lower revenues from commission and fee-based businesses during market downturns and declines in activity. Commissions received by the BNP Paribas Group represented 22% of its revenues in 2024. Financial and economic conditions affect the number and size of transactions for which the BNP Paribas Group provides securities underwriting, financial advisory and other investment banking services. These revenues, which include fees from these services, are directly related to the number and size of the transactions in which the BNP Paribas Group participates and can thus be significantly affected by economic or financial changes that are unfavourable to its investment banking business and clients. In addition, because the fees that the BNP Paribas Group charges for managing its clients’ portfolios are in many cases based on the value or performance of those portfolios, a market downturn that reduces the value of its clients’ portfolios or increases the amount of withdrawals would reduce the revenues it receives from its asset management, equity derivatives and private banking businesses. Independently of market changes, the development of index portfolios or the below-market performance by the BNP Paribas Group’s mutual funds may lead to reduced revenues from the BNP Paribas Group’s asset management business, and increased withdrawals and reduced inflows for these vehicles. A reduced level of net banking income from the abovementioned commission and fee-based businesses may have a material adverse impact on the BNP Paribas Group’s financial results. 3.3Adjustments to the carrying value of the BNP Paribas Group’s securities and derivatives portfolios and the BNP Paribas Group’s own debt could have an adverse effect on its net income and shareholders’ equity. The carrying value of the BNP Paribas Group’s securities and derivatives portfolios and certain other assets, as well as its own debt, in its balance sheet, is adjusted as of each financial statement date. As at 31 December 2024, on the assets side of the BNP Paribas Group’s balance sheet, financial instruments at fair value through profit or loss, derivative financial instruments used for hedging purposes and financial assets at fair value through shareholders’ equity amounted to EUR 816 billion, EUR 21 billion and EUR 73 billion respectively. In the liabilities column, financial instruments at fair value through profit or loss and derivative financial instruments used for hedging purposes amounted to EUR 792 billion and EUR 37 billion, respectively, at 31 December 2024. Most of the adjustments are made on the basis of changes in fair value of the BNP Paribas Group’s assets or debt during an accounting period, with the changes recorded either in the income statement or directly in shareholders’ equity. Changes that are recorded in the income statement, to the extent not offset by opposite changes in the value of other assets, affect the BNP Paribas Group’s consolidated revenues and, as a result, its net income. A downward adjustment of the fair value of the BNP Paribas Group’s securities and derivatives portfolios may lead to reduced shareholders’ equity and, to the extent not offset by opposite changes in the value of the BNP Paribas Group’s liabilities, the BNP Paribas Group’s capital adequacy ratios may also be lowered. The fact that fair value adjustments are recorded in one accounting period does not mean that further adjustments will not be needed in subsequent periods. 4.LIQUIDITY AND FUNDING RISK 4.1The BNP Paribas Group’s access to and cost of funding could be adversely affected by a resurgence of financial crises, worsening economic conditions, rating downgrades, increases in sovereign credit spreads or other factors. The financial crisis, the Eurozone sovereign debt crisis as well as the general macroeconomic environment, at times during a period around fifteen years ago adversely affected the availability and cost of funding for European banks. This was due to several factors, including a sharp increase in the perception of bank credit risk due to exposure to sovereign debt in particular, credit rating downgrades of sovereigns and of banks, and debt market speculation. Many European banks, including the BNP Paribas Group, at various points during these periods experienced restricted access to wholesale debt markets for institutional investors and to the interbank market, as well as a general increase in their cost of funding. Such adverse credit market conditions may reappear in the event of a change in monetary policy (as seen, for example, with respect to worsening inflation in 2022 and 2023), a recession, prolonged stagnation of growth, deflation, “stagflation” (sluggish growth accompanied by inflation), or another sovereign debt crisis, in particular in France should it fail to reduce its level of indebtedness (due to political or institutional deadlock or for any other reason). Such conditions could also reemerge following a sovereign borrower ratings downgrade in the Group’s key markets, in particular due to excessive political instability (such as has occurred in France since the dissolution of the Assemblée nationale on 9 June 2024 and which has led to renewed volatility on financial markets and the widening of the credit spread of the French Obligation Assimilable du Trésor (OAT) against, in particular, the German Bund (German sovereign bond), followed by the downgrading of France's credit rating by Moody's in December 2024 and the subsequent downgrading of several French banking institutions), new forms of financial crisis and factors relating to the financial industry or the economy in general (including the economic consequences of the war in Ukraine or the conflicts in the Middle East) or to the BNP Paribas Group in particular. In such a case, the effect on the liquidity, balance sheet strength and cost of funding of European financial institutions in general or the BNP Paribas Group in particular could be materially adverse and have a negative impact on the BNP Paribas Group’s results of operations and financial condition. 4.2Protracted market declines can reduce the BNP Paribas Group’s liquidity, making it harder to sell assets and possibly leading to material losses. Accordingly, the BNP Paribas Group must ensure that its assets and liabilities properly match in order to avoid exposure to losses. In some of the BNP Paribas Group’s businesses, particularly Global Markets (which represented 18% of the BNP Paribas Group’s revenue in 2024) and Asset/Liability Management, protracted market movements, such as asset price declines, can reduce the level of activity in the market or reduce market liquidity. These developments can lead to material losses if the BNP Paribas Group cannot close out deteriorating positions in a timely way. This is particularly true for assets that are intrinsically illiquid. Assets that are not traded on stock exchanges or other public trading markets, such as certain derivative contracts between financial institutions, may have values that the BNP Paribas Group calculates using models rather than publicly-quoted prices. Monitoring the deterioration of prices of assets like these is difficult and could lead to significant unanticipated losses (see section 5.8 Liquidity risk, paragraph Stress tests and liquidity reserve of BNP Paribas’ Universal registration document at 31 December 2024). The liquidity risk of the BNP Paribas Group can be assessed through its short-term liquidity ratio (the Liquidity Coverage Ratio, “LCR”) which analyses the coverage of net cash outflows at 30 days in a stress scenario. The BNP Paribas Group’s period end LCR was 137% as at 31 December 2024. The liquidity reserve was EUR 480 billion as at 31 December 2024. The BNP Paribas Group is exposed to the risk that the maturity, interest rate or currencies of its assets might not precisely match those of its liabilities. The timing of payments on certain of the BNP Paribas Group’s assets is uncertain and, if the BNP Paribas Group receives lower revenues than expected at a given time, it might require additional market funding in order to meet its obligations on its liabilities. While the BNP Paribas Group imposes strict limits on the gaps between its assets and its liabilities as part of its risk management procedures, it cannot be certain that these limits will be fully effective to eliminate potential negative effects arising from asset and liability mismatches. 4.3Any downgrade of the BNP Paribas Group’s credit ratings could weigh heavily on the profitability of the BNP Paribas Group. Credit ratings have a significant impact on the BNP Paribas Group’s liquidity and cost of funding. The BNP Paribas Group is rated by four ratings agencies: Standard & Poor’s, Moody’s, Fitch and DRBS. On 24 April 2023, Standard & Poor’s confirmed the long-term rating of BNP Paribas SA’s deposits and senior preferred debt rating as A+, and its short- term rating as A-1 with a stable outlook. On 16 October 2024, Fitch maintained its long-term deposits and senior preferred debt rating for BNP Paribas SA at AA- and its short term deposits and senior preferred debt rating for BNP Paribas SA at F1+, with a stable outlook. On 17 December 2024, Moody’s downgraded its long-term deposits and senior preferred debt rating to A1, and maintained its short-term rating as P-1, with a stable outlook. On 20 June 2024, DBRS confirmed BNP Paribas SA’s senior preferred debt rating as AA(low), and its short-term rating as R-1(middle), with a stable outlook. A downgrade in the BNP Paribas Group’s credit rating could affect the liquidity and competitive position of the Group. A downgrade could also increase the BNP Paribas Group’s borrowing costs, limit access to the capital markets or trigger additional obligations under its covered bonds or under certain bilateral provisions in some trading, derivative or collateralised financing contacts. Moreover, a downgrade in the sovereign credit rating of France, the Group’s principal country market, could indirectly affect BNP Paribas’ credit rating and cost of funding due to a potential resulting increase in the risk premium of French financial institutions. For example, Moody’s downgraded France’s credit rating in December 2024, and subsequently downgraded several French banking institutions, in response to the political instability in France since June 2024 and the country’s rising debt levels. In addition, the BNP Paribas Group’s cost of obtaining long-term unsecured funding from market investors is also directly related to its credit spreads, which in turn depend to a certain extent on its credit ratings. Increases in credit spreads can significantly increase the BNP Paribas Group’s cost of funding. Changes in credit spreads are continuous, market-driven, and subject at times to unpredictable and highly volatile movements. Credit spreads are also influenced by market perceptions of the BNP Paribas Group’s creditworthiness. Furthermore, credit spreads may be influenced by movements in the cost to purchasers of credit default swaps referenced to the Group’s debt obligations, which are influenced both by the credit quality of those obligations, and by a number of market factors that are beyond the control of the BNP Paribas Group. 5.RISKS RELATED TO THE MACROECONOMIC AND MARKET ENVIRONMENT 5.1Adverse economic and financial conditions have in the past and may in the future significantly affect the BNP Paribas Group and the markets in which it operates. The BNP Paribas Group’s business is affected by changes in the financial markets and more generally by trends in economic conditions in France (26% of the Group’s revenues at 31 December 2024), other countries in Europe (51% of the Group’s revenues at 31 December 2024) and the rest of the world (23% of the Group’s revenues at 31 December 2024). Fluctuations, deterioration or turbulence in the markets and/or the economic or political environment in the countries where the BNP Paribas Group operates has in the past had, and could again in the future have, various impacts including the following: adverse economic conditions affecting the business and operations of the BNP Paribas Group’s customers, reducing credit demand and trading volume and resulting in an increased rate of default on loans and other client receivables, in part as a result of the deterioration of the financial capacity of companies and households, as shown by the rise in corporate defaults observed in 2024. Since the beginning of 2024, this risk has materialised in the form of slow or weak growth in various regions of the world and a risk of recession in certain regions (including the Eurozone) as a result, in particular, of the 2022 and 2023 interest rate increases as well as specific effects (e.g. the real estate crisis in China and the commercial real estate crisis in the United States). Finally, in 2025, as in 2024 and 2023, the global and Eurozone economies are expected to be particularly sensitive to trends in inflation, monetary policies and, consequently, to interest rates, as well as to the impacts of various geopolitical events, in line with the central scenario drawn up by the BNP Paribas Group’s Economic Research unit (29 January 2024), which assumes Eurozone and US GDP growth of 0.8% and 2.8%, respectively, in 2024, compared to growth of 1% and 2.4%, respectively, in 2025. Moreover, the end of a favourable economic environment in relation to a particular business sector, or for the economy in general, may also have a negative impact on the BNP Paribas Group’s results. For instance, it is expected that the normalisation of used vehicle prices will have a negative net impact of EUR400 million on Arval and Leasing Solutions’ revenues for the 2025 fiscal year, compared to 2024; a decline in market prices (or an increase in volatility) of bonds, equities and commodities affecting the businesses of the BNP Paribas Group, including in particular trading, investment banking and asset management revenues. Indeed, high volatility over a long period can lead to financial asset market corrections (particularly the riskiest assets) and thus generate losses for the BNP Paribas Group. In addition, a sudden change in the level and structure of volatility, or the rapid alternation of periods of strong market rises and falls over a shorter period, may make it difficult or more costly to hedge certain structured products, thereby increasing the risk of loss for the BNP Paribas Group; macroeconomic or monetary policies adopted in response to actual or anticipated economic conditions could have consequences, anticipated or not, on market parameters such as interest rates and foreign exchange rates, which in turn can affect the BNP Paribas Group’s businesses that are most exposed to market risk. This risk, which was particularly pronounced in 2023 and 2024 due to the significant and rapid monetary tightening carried out by the European Central Bank (the “ECB”) and the US Federal Reserve (the “Fed”) in 2022 and 2023, remains relevant in 2025, although the key interest rates’ trajectory is difficult to predict due to the various economic indicators that influence it (inflation, GDP and labour market trends); the favourable perception of economic conditions, whether globally or in specific sectors, can lead to the formation of speculative asset bubbles, and corrections when conditions change. This risk persists in 2025 after the recent monetary tightening, particularly in specific sectors such as commercial real estate and leveraged finance (see section 5.2, A significant increase or decrease in interest rates could adversely affect the BNP Paribas Group’s income, profitability and financial condition). For example, falling valuations and fewer transactions in the commercial real estate sector have been tightening financing conditions and increasing investor uncertainty in this market, which may affect the financial strength of market participants and hence asset quality. The BNP Paribas Group’s gross on- and off-balance sheet exposure to commercial real estate represented 3.7% of its total on- and off-balance sheet exposure as at 31 December 2024; and significant one-off economic disruptions related to, or adverse economic consequences resulting from, various specific adverse political or geopolitical events (such as the global financial crisis of 2008, the European sovereign debt crisis of 2011, the recession caused, in 2020 and 2021, by the Covid-19 pandemic, or high inflation and rising interest rates as well as geopolitical shocks; for example, the invasion of Ukraine in 2022, the conflicts in the Middle East in 2023 and 2024 and political instability in France from June 2024) having a substantial impact on all of the BNP Paribas Group’s businesses, in particular by increasing the volatility and costs of funding sources, deteriorating asset quality and financial market corrections (which may be exacerbated by a reduction in market liquidity and hence the ability to sell certain categories of assets at fair market value or at all). These disruptions could also entail, in particular, a decline in transaction commissions and consumer loans by the effect, whether temporary or permanent, of geopolitical events on the economic conditions in which the BNP Paribas Group operates. While by definition the occurrence of such adverse geopolitical events is difficult to predict, in 2025 they could include the worsening of the consequences or the extension of the war in Ukraine or of the conflicts in the Middle East, commercial and geopolitical tensions among China, Taiwan and the United States, which could extend to and implicate the European Union and other countries, and changes to trade or other policies, including the imposition of tariffs and retaliatory tariffs, any of which could lead to inflationary pressures and affect the energy market and/or supply chains, contribute to the occurrence of a sovereign debt crisis (high level of public debt, rapid increase in (re)financing costs, aggravating exchange rate effects, particularly for borrowers exposed to the US dollar), negatively affect economic growth and lead to the materialisation of various political risks. Moreover, political instability or fragmentation, or even changes in priorities or policies such as those stemming from shifts in the balance of power between political parties or new administrations, may have similar negative effects, such as market volatility and reductions in consumption, investment (including foreign investment) and overall economic performance. As an illustration, the snap legislative elections following the dissolution of the French Assemblée nationale on 9 June 2024, and the motion of censure of the French government voted on 4 December 2024, have created market volatility, particularly in the financial sector. Continuing political fragmentation is also affecting France’s ability to deliver measures to address elevated levels of public debt and may affect France’s ability to achieve economic growth and result in a deterioration of French asset quality. Any such events may have a material adverse effect on the BNP Paribas Group’s business, results of operations and financial condition. 5.2A significant increase or decrease in interest rates could adversely affect the BNP Paribas Group’s income, profitability and financial condition. Interest rates rose significantly in 2022 and 2023, after many years of low interest rates, and then began to fall in the second half of 2024. In this context, the results of the BNP Paribas Group have been and could continue to be significantly affected in several ways. Net interest income amounted to 19,524 million euros in 2024 and 19,058 million euros in 2023, respectively (see note 2.a Interest margin to the audited consolidated financial statements for the year ended 31 December 2024). The interest margin of Eurozone commercial banks increased over the year 2024 despite the impact of headwinds (inflation hedges, reserve requirement and Belgian government bonds representing a base effect of EUR -352 million in 2024 compared to 2023) and the shortfall of around EUR300 million due to the high short-term rates underpinning the stronger-than-expected shift from demand deposits to interest-bearing accounts (price signal) between 2022 and 2024. At Group level, the interest margin rose by +2.4% in 2024 compared with 2023. High interest rates increase the cost of funding for the Group through higher interest rates on liabilities such as short-term deposits, commercial paper and bonds, as well as the risk of arbitrage by customers between non-interest-bearing deposits and interest-bearing deposits (compounded in France by policy decisions to increase rates on regulated savings, including to levels above the return received by banks on the same deposits). This increase in the cost of funding could create an imbalance and a reduction in net interest margin as a result of the Group holding a significant portfolio of loans originated in a low interest rate environment. The Group may also have difficulty (in particular due to the usury rate in France) promptly reflecting higher interest rates in new mortgage or other fixed-rate consumer or corporate loans, while the cost of customer deposits and hedging costs would increase more rapidly. Moreover, a portfolio comprising significant amounts of lower-interest loans and fixed-income assets as a result of an extended period of low interest rates may (in a rapidly rising market interest-rate environment) decline in value. If the Group’s hedging strategies are ineffective or provide only a partial hedge against such a change in value, the Group could incur significant losses. Higher interest rates also increase financial expense for borrowers and may strain their ability to meet their debt obligations, which could test the resilience of the BNP Paribas Group’s loan and bond portfolios and could, in turn, lead to an increase in doubtful loans and defaults. More generally, the end of accommodating monetary policies, in particular by the ECB and the Fed, has led, and could continue to lead, to sharp corrections in certain markets or assets. For example, in early 2024, the commercial real estate crisis affected the share prices of many US regional banks, as well as the financial condition of some major real estate developers. More generally, such corrections could potentially be contagious to financial markets generally, including by the effect of substantially increased volatility and heightened investor mistrust, generally or in relation to certain sectors, including the banking sector due to its exposure to the commercial real estate market, leveraged financing or other sectors particularly affected by rising interest rates. The BNP Paribas Group’s operations could as a result be significantly disrupted with a consequential material adverse effect on its business, results of operations and financial condition. Conversely, if a low interest rates environment were to re-emerge, due in particular to monetary easing decided by central banks, weak growth or other economic factors, the BNP Paribas Group’s profitability could also be negatively impacted. During periods of low interest rates, interest rate spreads tend to tighten, and the BNP Paribas Group may be unable to lower interest rates on deposits sufficiently to offset reduced income from lending at lower interest rates. In addition, the BNP Paribas Group may face an increase in early repayment and refinancing of mortgages and other fixed-rate consumer and corporate loans as clients take advantage of lower borrowing costs. This, along with the issuance of new loans at the low prevailing market interest rates, may result in a decrease in the average interest rate of the BNP Paribas Group’s portfolio of loans, thereby causing a decline in its net interest income from lending activities. Low interest rates may also affect the profitability and even the solvency of the insurance activities of BNP Paribas Group, particularly due to the prevalence in the market of life insurance contracts backed by euro-denominated funds, which may not be able to generate sufficient returns to be competitive with other investment products. Low interest rates may also adversely affect commissions charged by the BNP Paribas Group’s asset management subsidiaries on money market and other fixed income products. A reduction in credit spreads and decline in retail banking income resulting from lower portfolio interest rates may adversely affect the profitability of the BNP Paribas Group’s retail banking operations. 5.3Given the global scope of its activities, the BNP Paribas Group is exposed to country risk and to changes in the political, macroeconomic or financial contexts of a region or country. The BNP Paribas Group monitors country risk and takes it into account in the fair value adjustments and cost of risk recorded in its consolidated financial statements. However, a significant change in political or macroeconomic environments may require it to record additional charges or to incur losses beyond the amounts previously written down in its consolidated financial statements. In addition, factors specific to a country or region in which the BNP Paribas Group operates could make it difficult for it to carry out its business and lead to losses or impairment of assets. At 31 December 2024, the BNP Paribas Group’s loan portfolio consisted of receivables from borrowers located in France (28%), Belgium and Luxembourg (16%), Italy (10%), other European countries (23%), North America, (11%), Asia (7%) and the rest of the world (5%). Adverse economic, political or regulatory conditions that affect these countries and regions would have a significant impact on the BNP Paribas Group. For example, at 31 December 2024, the BNP Paribas Group, operating in Poland through BNP Paribas Bank Polska, recorded a charge of EUR 202 million under other net charges for risk on financial instruments relating to mortgage loans in Poland denominated in Swiss francs or indexed to the Swiss franc in the amount of EUR 186 million as well as losses related to the act on assistance to borrowers in Poland in the amount of EUR 16 million. As another example, hyperinflation in Türkiye and the application of the IAS 29 accounting standard negatively affected the 2023 and 2024 results of the BNP Paribas Group. Moreover, the BNP Paribas Group has significant exposures in countries outside the OECD, which are subject to risks that include political instability, unpredictable regulation and taxation, expropriation and other risks that are less present in more developed economies. In addition, the BNP Paribas Group is present in Ukraine, through its subsidiary UkrSibbank, in which it holds a 60% stake alongside the European Bank for Reconstruction and Development (40%). Certain restrictions previously imposed by the National Bank of Ukraine were lifted, thereby allowing the BNP Paribas Group to satisfy once more the conditions required for establishing control, as defined under IFRS 10, from 1 January 2024. This had the effect of changing the consolidation method for UkrSibbank from the equity method, which had been applied as from 1 March 2022, to the full consolidation method. With regard to Russia, which is subject to extensive economic sanctions imposed in particular by the European Union, the United States and the United Kingdom, gross on- and off- balance sheet credit risk exposures of the BNP Paribas Group to this country represented 0.02% of the BNP Paribas Group’s gross exposures on- and off- balance sheet at 31 December 2024. In March 2022, the BNP Paribas Group decided to stop all new financing as well as all new operations in Russia. The Group is diligently monitoring developments in the situation in conjunction with the authorities concerned and, in particular, the reactions of the international community with regard to economic sanctions. 6.REGULATORY RISKS 6.1Laws and regulations in force, as well as current and future legislative and regulatory developments, may significantly impact the BNP Paribas Group and the financial and economic environment in which it operates. Laws and regulations in force in the jurisdictions in which the BNP Paribas Group operates (in particular in France, Europe and the United States) have substantially changed, and in the future could potentially continue to substantially change, the environment in which financial institutions, such as the BNP Paribas Group, operate. These measures include in particular: the continuing increase in “prudential” (i.e. capital solvency, liquidity) requirements provided for in particular by the Regulation of the European Parliament and Council dated 26 June 2013 (as amended from time to time, the “CRR”), as well as changes to the risk-weighting methodologies and methods of using internal models that have led and could continue to lead to increases in capital requirements for financial institutions and, in particular, global systemically important banks, such as the BNP Paribas Group; the introduction of risk factors relating to environmental, social and governance (“ESG”) issues in the CRR, which provides for the integration of these risk factors into the supervisory review and assessment process (SREP) as well as the extension of supervisory powers in the Directive of the European Parliament and of the Council of 26 June 2013 (as amended, the “CRD”) in relation to such matters, could also lead to higher capital requirements for financial institutions in the future; in respect of minimum capital requirements in particular, the European Commission adopted in October 2021 a legislative package to finalise the implementation within the European Union of the Basel III agreement adopted by the Group of Central Governors and Heads of Supervision (GHOS); in the impact assessment accompanying this legislative package, the European Commission estimated, on the basis of an EBA impact study dated December 2020 and of additional European Commission estimates for some specific adjustments in the European Union, that the implementation of the final Basel III standards may result in an average increase in total minimum capital requirements ranging between 6.4% and 8.4% after full implementation of the reform; upon completion of the legislative process, were adopted (i) a regulation amending the CRR, applicable as from 1 January 2025, with a phase-in period during which the requirements will be gradually increased through 2030 (and 2032 for certain requirements) and (ii) a directive amending the 26 June 2013 Capital Requirements Directive of the European Parliament and Council which shall be applied by Member States from 11 January 2026 (subject to certain exceptions). These new texts entered into force in July 2024; the BNP Paribas Group estimates that the finalisation of Basel IV on 1 January 2025 will result in a 50 basis point decrease in its CET1 ratio (excluding the effect from application of the Basel III fundamental review of the trading book (FRTB) standards for EU banks’ calculation of their own funds requirements for market risk, which was postponed until 1 January 2026). This estimate is subject to change depending on potential changes in the Group and the macroeconomic context; the strengthening of the powers of existing supervisory bodies and the creation of new supervisory authorities, for example under the Single Resolution Mechanism (the “SRM”) placing the BNP Paribas Group under the direct supervision of the ECB with which, in particular, a recovery plan for the BNP Paribas Group is filed each year in accordance with the applicable regulations; the enhancement of recovery and resolution regimes, in particular the adoption of the Bank Recovery and Resolution Directive of 15 May 2014, as amended from time to time (the “BRRD”), in order to ensure that losses are borne primarily by creditors and shareholders of banks and to thus minimise losses borne by taxpayers; restrictions on certain types of activities by commercial banks (in particular proprietary trading), thus giving rise to internal reorganisations, structural changes or disposals, that are considered speculative and are thus either prohibited or required to be ring-fenced in subsidiaries, and subject to specific capital and funding requirements which may reduce the BNP Paribas Group’s ability to freely allocate its capital and financing resources; prohibitions or restrictions on fees for certain types of financial products or activities, which could affect the ability of the BNP Paribas Group to offer such products or engage in such activities; the establishment of national deposit guarantee schemes and a proposed European deposit guarantee scheme or deposit insurance which will gradually cover all or part of the guarantee schemes of participating countries, which could increase the cost or reduce the demand for the products and services offered by the BNP Paribas Group; the implementation of regulatory stress tests (including in relation to climate change risk) which could lead to additional regulatory capital requirements (see Market Risk Stress Testing Framework in section 5.7 Market risk of BNP Paribas’ Universal registration document at 31 December 2024); the increase in internal control and risk management requirements, in particular with the entry into force on 17 January 2025 of European Regulation 2022/2554 of 14 December 2022 on digital operational resilience for the financial sector (“DORA”), and in reporting requirements with respect to certain activities as well as greater powers granted to the relevant authorities to combat money laundering and terrorism financing, in particular through the creation of a new European authority for countering money laundering and financing of terrorism which will start its operations in mid-2025 and which will likely increase compliance costs for the BNP Paribas Group; more stringent governance and conduct of business rules and restrictions and increased taxes on employee compensation over specified levels as well as the introduction of a general duty of care provided for by the Corporate Sustainability Due Diligence Directive (the “CS3D”), progressively applicable between 2027 and 2029 according to decreasing thresholds of employees and sales, which could affect the ability of the BNP Paribas Group to attract or retain talent and increase compliance costs for the BNP Paribas Group; changes in securities regulation, in particular of financial instruments (including shares and other securities issued by entities of the BNP Paribas Group); measures to improve the transparency, efficiency and integrity of financial markets and in particular the regulation of high frequency trading, more extensive market abuse regulations, increased regulation of certain types of financial products including mandatory reporting of derivative and securities financing transactions, requirements either to mandatorily clear, or otherwise mitigate risks in relation to, over-the-counter derivative transactions (including through posting of collateral in respect of non-centrally cleared derivatives); regulations of market infrastructures such as trading platforms, clearing houses, central depositories and securities delivery and settlement systems, which could affect the execution of the BNP Paribas Group’s operations or facilitate the entry of new players in the financial services sector; the introduction of enhanced disclosure requirements, including through the introduction of new disclosure requirements (i) on how banking groups providing asset management services such as the BNP Paribas Group integrate sustainability risks or negative impacts, sustainable investment objectives or the promotion of environmental or social attributes when making investment decisions, (ii) on how and to what extent banking groups themselves finance or develop economic activities that can be considered environmentally sustainable as defined in the European Taxonomy and (iii) in terms of sustainability, certified by an independent third party, making it possible to analyse the impact of the BNP Paribas Group’s business on CSR issues and the manner in which these issues affect its business, its results of operations and its financial condition, in accordance with the texts transposing the Corporate Sustainability Reporting Directive (the “CSRD”), applicable progressively since 1 January 2024, which could increase compliance costs for the BNP Paribas Group and affect the demand for certain of the products it offers to its customers; strengthened transparency and disclosure requirements on CSR risk management, including physical and transitional risks related to climate change, and the introduction of new requirements for the integration of climate risk into the risk measurement and management systems of banking groups, including through the publication of proposals for banks to manage and disclose climate risk; the multiplication of measures that are not specific to financial institutions, such as measures relating to the investment fund sector or those promoting technological innovation such as “open data” access; the development of the regulation of payment services, crowdfunding and fintechs, which could affect the BNP Paribas Group’s ability to carry out certain activities; and the tightening of tax and accounting legislation in the jurisdictions where the Bank operates, such as the institution of the exceptional contribution on the profits of large companies in France decided by the French legislator in law no. 2025-127 of 14 February 2025 on finance for 2025, which could have a negative impact on the results of the BNP Paribas Group. Existing measures, as well as those (by definition unpredictable) which could be adopted in the future, could in particular reduce the BNP Paribas Group’s ability to allocate and apply its capital and financing resources, limit its ability to diversify its risks, reduce the availability of certain financing and liquidity resources, increase the cost of financing, increase the cost of compliance, increase the cost or reduce the demand for its products and services, require it to effect internal reorganisations, structural changes or reallocations, affect its ability to conduct certain activities or to attract and/or retain talent, facilitate the entry of new players in the financial services sector or affect the business model of the BNP Paribas Group and, more generally, affect its competitiveness (including with other international banking groups that may not be subject to the same level of regulation) and profitability, which could have a significant impact on its business, financial condition and results of operations. 6.2The BNP Paribas Group may incur substantial fines and other administrative and criminal penalties for non-compliance with applicable laws and regulations, and may also incur losses in related (or unrelated) litigation with private parties. The BNP Paribas Group is subject to regulatory compliance risk. This risk is exacerbated by the adoption by different countries of multiple and occasionally diverging and even conflicting legal or regulatory requirements. Besides damage to the Group’s reputation and private rights of action (including class actions), non-compliance could lead to material legal proceedings, fines and expenses (including fines and expenses in excess of recorded provisions), public reprimand, enforced suspension of operations or, in extreme cases, withdrawal by the authorities of operating licences. This risk is further exacerbated by continuously increasing regulatory scrutiny of financial institutions as well as substantial increases in the quantum of applicable fines and penalties. Moreover, litigation by private parties against financial institutions has substantially increased in recent years. Accordingly, the BNP Paribas Group faces significant legal risk in its operations. The volume and amount of damages claimed in litigation, regulatory proceedings and other adversarial proceedings against financial services firms have substantially increased in recent years and may increase further. The BNP Paribas Group may record provisions in this respect as indicated in note 4.n Provisions for contingencies and charges to its audited consolidated financial statements for the year ended 31 December 2024. Regarding the Cease and Desist Order issued jointly by the French Autorité de contrôle prudentiel et de résolution and the Fed’s Board of Governors on 30 June 2014, related to violations by the bank of US laws and regulations on economic sanctions (which resulted among other things in a fine of USD 8.9 billion), the Secrétariat Général de l’Autorité de contrôle prudentiel et de résolution informed BNP Paribas on 19 January 2024 of its conclusion that the Group had fully complied with the provisions of the Cease and Desist Order and that it would no longer monitor the Group’s compliance. On 6 February 2024, the Fed’s Board of Governors also announced the termination of the Cease and Desist Order and a related enforcement action. The BNP Paribas Group is also currently involved in various litigations and investigations as summarised in note 8.c Legal proceedings and arbitration to its audited consolidated financial statements for the year ended 31 December 2024. It may become involved in other litigation or investigations at any time. No assurance can be given that an adverse outcome in one or more of such matters would not have a material adverse effect on the BNP Paribas Group’s operating results for any particular period. 6.3The BNP Paribas Group could experience an unfavourable change in circumstances, causing it to become subject to a resolution proceeding or a restructuring independently of and/or before resolution: BNP Paribas Group security holders could suffer losses as a result. The BRRD, the Ordinances of 20 August 2015 and 21 December 2020 transposing it, and the Regulation of the European Parliament and Council of the European Union of 15 July 2014, each as amended from time to time, confer upon the ACPR or the Single Resolution Board the power to commence resolution proceedings for a banking institution, such as the BNP Paribas Group, with a view to ensure the continuity of critical functions, to avoid the risks of contagion and to recapitalise or restore the viability of the institution. These powers must be implemented so as to ensure that losses, subject to certain exceptions, are borne first by shareholders, then by holders of additional capital instruments qualifying as Tier 1 (such as super subordinated bonds) and Tier 2 (such as subordinated bonds), then by the holders of senior non-preferred debt and finally by the holders of senior preferred debt, all in accordance with the insolvency ranking in normal insolvency proceedings. For reference, the BNP Paribas Group’s medium‑ to long-term wholesale financing at 31 December 2024 consisted of the following: EUR 15.9 billion in hybrid Tier 1 debt, EUR 25.4 billion in Tier 2 subordinated debt, EUR 2.5 billion in subordinated debt not included in own funds, EUR 73.2 billion in senior unsecured non-preferred debt, EUR 115.7 billion in senior unsecured preferred debt (including EUR 23.6 billion in MREL-eligible senior unsecured preferred debt) and EUR 13.6 billion in senior secured debt. Resolution authorities have broad powers to implement resolution measures with respect to institutions and groups subject to resolution proceedings, which may include : the total or partial sale of the institution’s business to a third party or a bridge institution, the separation of assets, the replacement or substitution of the institution as obligor in respect of debt instruments, the full or partial write-down of capital instruments and/or debt instruments, the conversion into common equity tier 1 instruments of additional tier 1 instruments, tier 2 instruments and/or debt instruments, the dilution of capital instruments through the issuance of new equity, modifications to the terms of debt instruments (including altering the maturity and/or the amount of interest payable and/or imposing a temporary suspension on payments), discontinuing the listing and admission to trading of financial instruments, the dismissal of managers or the appointment of a special manager (administrateur spécial). In addition, the resolution authorities must exercise the full or partial write-down of capital instruments or the conversion into equity of additional capital instruments qualifying as tier 1 (such as super-subordinated bonds) and tier 2 (such as subordinated bonds) before the opening of a resolution proceeding if the conditions for initiating it are met. Moreover, certain powers, including the full or partial write-down of capital instruments, the dilution of capital instruments through the issuance of new equity or the conversion into equity of additional capital instruments qualifying as Tier 1 (such as super-subordinated bonds) and Tier 2 (such as subordinated bonds), can also be exercised before resolution proceedings and/or independently thereof, such as pursuant to the European Commission’s State Aid framework if the institution requires exceptional public financial support. The implementation of these tools and powers with respect to the BNP Paribas Group may result in significant structural changes to the BNP Paribas Group (including as a result of asset or business sales or the creation of bridge institutions) and in a partial or total write-down, modification or variation of claims of shareholders and creditors. Such powers may also result, after any transfer of all or part of the BNP Paribas Group’s business or separation of any of its assets, in the holders of securities (even in the absence of any such write-down or conversion) being left as the creditors of the BNP Paribas Group whose remaining business or assets are insufficient to support the claims of all or any of its creditors. 7.RISKS RELATED TO THE BNP Paribas Group’S GROWTH IN ITS CURRENT ENVIRONMENT 7.1Should the BNP Paribas Group fail to implement its strategic objectives or to achieve its published financial objectives, or should its results not follow stated expected trends, the trading price of its securities could be adversely affected. In connection with the publication of its results for the year ended 31 December 2024, the BNP Paribas Group detailed the 2025-2026 trajectory of its strategic plan at the level of the Group and within each division. The BNP Paribas Group’s actual results could vary significantly from these trends for a number of reasons, including the materialisation of one or more of the risks described in this section. If the BNP Paribas Group’s results do not follow these trends, its financial condition and the price of its securities, as well as its financing costs, could be affected. Additionally, the Group is pursuing an ambitious corporate social responsibility (CSR) policy and is committed to making a positive impact on society with concrete commitments and targets. If the Group fails to meet these commitments and targets, which depend in part on factors beyond its control, its reputation could be affected. 7.2The BNP Paribas Group may experience difficulties integrating businesses following acquisition transactions and may be unable to realise the benefits expected from such transactions. The BNP Paribas Group regularly undertakes merger and acquisition transactions. It has in particular announced its intention to allocate part of the proceeds from the sale of Bank of the West to acquisitions. The BNP Paribas Group’s most recent major such transactions were the integration of Deutsche Bank’s Prime Brokerage & Electronic Execution platform in 2019, the closing of the acquisition of 100% of the capital of Exane, previously 50% owned by BNP Paribas, in 2021, the acquisition of 100% of Floa in 2022, the acquisition of Kantox in 2023 and the acquisitions of BCC Vita SpA and Neuflize Vie in 2024 as well as the signing of the purchase agreement for the acquisition of 100% of AXA Investment Managers, which is expected in mid-2025. Successful integration and the realisation of synergies require, among other things, proper coordination of business development and marketing efforts, retention of key members of management, policies for effective recruitment and training as well as the ability to adapt information and computer systems. Any difficulties encountered in combining operations could result in higher integration costs and lower savings or revenues than expected. There will accordingly be uncertainty as to the extent to which anticipated synergies will be achieved and the timing of their realisation. Moreover, the integration of the BNP Paribas Group’s existing operations with those of the acquired operations could interfere with its respective businesses and divert management’s attention from other aspects of the BNP Paribas Group’s business, which could have a negative impact on the Group’s business and results. In some cases, moreover, disputes relating to acquisitions may have an adverse impact on the integration process or have other adverse consequences, including financial ones. Moreover, the acquisition of certain companies may have the effect of increasing the BNP Paribas Group’s capital requirements. Although the BNP Paribas Group undertakes an in-depth analysis of the companies it plans to acquire, such analyses often cannot be complete or exhaustive. In the event that the Group is unable to conduct comprehensive due diligence prior to an acquisition, it may acquire doubtful or troubled assets or businesses that may be unprofitable or have certain potential risks that only materialise after the acquisition, The acquisition of an unprofitable business or a business with materialised risks may have a significant adverse effect on the BNP Paribas Group’s overall profitability and may increase its liabilities. 7.3The BNP Paribas Group’s current environment may be affected by the intense competition amongst banking and non-banking operators, which could adversely affect the Group’s revenues and profitability. Competition is intense in all of the BNP Paribas Group’s primary business areas in France and the other countries in which it conducts a substantial portion of its business, including other European countries and the United States. Competition in the banking industry could intensify as a result of consolidation in the financial services area, the increased appeal of certain banking products or securities, such as Belgian government bonds since 2023, the presence of new players in the payment and the financing services area or the development of crowdfunding platforms, as well as the continuing evolution of consumer habits in the banking sector. While the BNP Paribas Group has launched initiatives in these areas, such as the debut of Hello bank! and its acquisitions of Nickel and Floa, competitors subject to less extensive regulatory requirements or to less strict capital requirements (e.g. debt funds, shadow banks), or benefiting from economies of scale, data synergies, technological innovation (e.g. Internet and mobile operators, digital platforms, fintechs), or free access to customer financial data could be more competitive by offering lower prices and more innovative services to address the new needs of consumers. New technologies that facilitate or transform transaction processes and payment systems, such as blockchain technologies and related services, or that could significantly impact the fundamental mechanisms of the banking system, such as central bank digital currencies, have been developed in recent years or could be developed in the near future. While it is difficult to predict the effects of these developments and the regulations that apply to them, the use of such technology could nevertheless reduce the market share of banks, including the BNP Paribas Group, secure investments that otherwise would have used technology used by more established financial institutions, such as BNP Paribas or, more broadly, lead to the emergence of a different monetary system in which the attractiveness of using established financial institutions such as BNP Paribas would be affected. If such developments continue to gain momentum, particularly with the support of governments and central banks, if the BNP Paribas Group is unable to respond to the competitive environment in France or in its other major markets by offering more attractive, innovative and profitable product and service solutions than those offered by current competitors or new entrants or if some of these activities were to be carried out by institutions other than banks, it may lose market share in key areas of its business or incur losses on some or all of its activities. In addition, downturns in the economies of its principal markets could add to the competitive pressure, through, for example, increased price pressure and lower business volumes for the BNP Paribas Group and its competitors. It is also possible that the imposition of more stringent requirements (particularly capital requirements and business restrictions) on large or systemically significant financial institutions that new players may not be subject to could lead to distortions in competition in a manner adverse to large private-sector institutions such as the BNP Paribas Group. 7.4The BNP Paribas Group could experience business disruption and losses due to risks related to environmental, social and governance (“ESG”) issues, particularly relating to climate change, such as transition risks, physical risks or liability risks. ESG-related risks are not considered to be a stand-alone risk category. Instead, they are factors that may affect various risk categories, such as credit risks, market risks, operational risks or liquidity risks, and which may increase pressure on the Group's financial performance. Accordingly, the BNP Paribas Group is progressively integrating the assessment of these risks into its existing risk management systems and processes. Twenty ESG risk factors were integrated in 2024, covering in particular climate change risks, nature-related risks, social risks and governance-related risks. In addition, in order to improve risk identification processes, the Group has implemented specific actions as detailed in section 5.11 Environmental, social and governance risk of the BNP Paribas Universal Registration Document at 31 December 2024 and in sustainability-related sections, including section 7.1.2 Climate change, section 7.1.4 Own workforce, section 7.1.5 Consumers and end-users and section 7.1.6 Business conduct. In addition, the development of ESG-related regulatory requirements could lead to an increase in litigation faced by financial institutions. Policy and regulatory initiatives and frameworks, including at the European and international levels, concerning climate change and sustainability, as well as voluntary and joint commitments through industry alliances, create increasing legal, regulatory and reputational risks. The ESG regulatory framework is constantly changing and instituting, among other things, requirements in terms of disclosure and the integration of climate risks into risk measurement and management systems. These initiatives and frameworks overlap in some respects and are not always consistent in their objectives, resulting in regulatory complexity and, in some cases, a lack of clarity and difficulty in interpretation. Notwithstanding its efforts to combat climate change and monitor the related risks, the physical, transitional or liability risks related to climate change, or any delay or failure to implement ESG risk management, could have a material adverse effect on the Group’s business, financial condition or reputation. 7.5Changes in certain holdings in credit or financial institutions could have an impact on the BNP Paribas Group’s financial position. Certain classes of assets may carry a high risk-weight of 250%. They include credit or financial institutions consolidated under the equity method within the prudential scope (excluding insurance); significant financial interest in credit or financial institutions in which the BNP Paribas Group holds a stake of more than 10%; and deferred tax assets that rely on future profitability and arise from temporary differences. The risk-weighted assets carrying a risk-weight of 250% amounted to EUR 21 billion at 31 December 2024, or 3% of the total risk-weighted assets of the BNP Paribas Group. They amounted to EUR 19 billion at 31 December 2023, or 3% of the total risk-weighted assets of the BNP Paribas Group. If the BNP Paribas Group increases the amount of high risk-weighted assets (either by increasing the proportion of such high risk-weighted assets in its overall asset portfolio or due to an increase of the regulatory risk‑weighting applicable to these assets), its capital adequacy ratios may be lowered. Top and emerging risks The identification and monitoring of top and emerging risks are central to BNP Paribas’ approach to risk management. These risks are identified, analysed and managed thanks to different work and analyses carried out by the RISK Function, the divisions and the businesses, and through several committees. They notably give rise to: a close follow-up of macroeconomic and financial conditions with the objective of organising them into a hierarchy with regard to the consequences for Group portfolio and designing adverse scenarios. This close monitoring is delivered quarterly to the General Management as well as to the Internal Control, Risk Management and Compliance Committee (CCIRC) through a dashboard presented by RISK; a close monitoring of the risk profile in accordance with the directives and thresholds approved by the Board of directors; cross-functional policies on concentration or corporate social responsibility among others; market and liquidity risk decisions made by Group ALM Treasury Committee (or Group ALCo, see Governance in section 5.3 Risk management) and the Financial Markets Risk Committee (FMRC); key decisions made by committees with respect to specific transactions at the highest level; proposals for new activities or new products; portfolio and businesses reviews by Risk & Development Policy Committees (RDPC), on topics selected by the Group’s Executive Management for the upcoming year; proactive and forward-looking discussions on emerging risks and their impacts on the Bank’s risk profile in the Risk Anticipation Committee; an analysis and a monitoring of changes to the regulatory framework and their consequences on the Bank’s capital and liquidity management as well as on its activities; the Group’s sustainable finance strategy and commitments validated by the Sustainable Finance Strategic Committee (SFSC). This committee also decides on the main lines of sustainable finance’s commercial policy and monitors their operational implementation. Where necessary, it also validates cross-functional infrastructure choices ensuring the expertise and consistency of the implementation of regulatory requirements and the commitments made by the Group in methods, analyses, risk management, data, tools, standards and reporting related to sustainable finance. Top risks A top risk is defined as having: the potential to have a material impact, across a business area or geographical area, on the financial results, reputation or sustainability of the Group; the potential to occur in the near future. The top risks to which the Group is exposed are described below. Macroeconomic environment Given the nature of the Bank’s business, the Bank and its results are particularly sensitive to macroeconomic and market conditions in Europe. In 2024, global activity continued to grow at a maderate pace. According to the latest IMF estimates of January 2025, World GDP grew by 3.2% (compared to 3.3% the previous year). In the Eurozone, activity picked up in 2024, with growth estimated to reach 0.8% (compared to 0.4% the previous year). The recovery should continue at a moderate pace in 2025, due in particular to the positive impact of disinflation on real incomes and consumption and the gradual easing of monetary conditions. However, its size will remain limited by the expected tightening of budgetary policies. Inflation continued to slow down in the course of 2024, getting closer to main central banks targets. The latter started their rate reduction cycle during the year. This monetary policy adjustment is expected to continue in the first part of 2025. Long-term interest rates reached levels in 2023-2024 not seen for more than a decade and are expected to remain relatively high for some time. Risks related to high inflation, supply chain disruptions and tensions on commodity markets After reaching very high levels following the health crisis and in the context of the war in Ukraine, inflation has dropped significantly in most economies in 2023-2024. Nevertheless, potential upside risks remain: geopolitical risks can trigger spikes in energy, food and transportation prices. They can also cause tensions on supply chains, for example through export restrictions, disruptions to shipping or sanctions, which are likely to have effects on both prices (upwards) and the level of production (downwards); trade tarrifs could be raised significantly, in the light of recent and political debates; weather-related events can lead to higher food prices ans also cause disruptions to production, transport or supply chains. On top of these exogenous risks, labour market tensions, when high, are susceptible to generate second-round effects and disseminate these price increases to other areas. Beyond these short-term risks, the energy transition is likely to exert upward pressure on prices in the medium term, in particular due to the carbon tax or price increases for some raw materials necessary for the transition (metals). Risks linked to the impact of higher interest rates The high levels of interest rates generate risks for the economy and the financial system and are susceptible to trigger unfavourable market reactions (equity market, foreign exchange, capital flows). Sectors that are sensitive to interest rates, such as residential and commercial real estate, are more exposed than others. Businesses and households with high debt levels may find it more difficult to repay or refinance their debt. The moderate growth environment aggravates these risks. The combination of moderate growth in activity and high interest rates is also increasing pressures on public finances, especially given the high public debt levels reached in recent years. High financing costs and persistent fiscal deficits are limiting governments' policy space, leading them to adopt less growth-friendly fiscal policies than in recent years. In addition, risks related to fiscal imbalances are susceptible to generate additional pressures (e.g., higher sovereign spreads), particularly in the euro area. The vulnerability of some emerging economies to these risks could lead to a deterioration in the rating of these countries by agencies, which can be followed by an increase in risk premiums and debt servicing. The Group’s exposure in emerging countries is limited. Geopolitical and geoeconomic fragmentation risks Geopolitical risks have increased significantly in recent years. While the war in Ukraine and the conflict in the Middle East are clearly susceptible to generate significant risks for the global economy, other tensions are also worth monitoring, notably in Asia. Geopolitical tensions can weigh on the global economy through various channels, including shocks on commodity prices, financial markets, business confidence, supply chains and trade. Such developments are susceptible to lead to higher inflation developments and weaker activity developments at the same time, complicating the task of central banks. The growing use of international sanctions also increases the magnitude of potential consequences of such events. Geopolitical tensions are contributing to some fragmentation of the global economy. Businesses and governments tend to reduce dependencies on some countries, whereas protectionist measures are more common than a few years ago. These developments look overall susceptible to weigh on growth and support inflation, notably by generating additional costs and a less efficient diffusion of technologies. Laws and regulations applicable to financial institutions Recent and future changes in the laws and regulations applicable to financial institutions may have a significant impact on the Bank. Measures recently adopted or of which implementing measures are still under elaboration, that have or are likely to have an impact on the Bank notably include prudential regulations with the finalisation of Basel 3 published by the Basel Committee in December 2017, supplemented by the Fundamental Review of the Trading Book (FRTB) in January 2019 and of CVA risk (Credit Value Adjustment) in July 2020, which introduces a revision of the credit risk, operational risk, market risk and CVA risk measurement in the calculation of risk-weighted assets. The new Basel framework also provides for the gradual introduction of an overall floor which will be based on standardised approaches. These measures enter into force on 1 January 2025 in the European Union with the exception of the FRTB, whose binding application has been pushed back by one year to 1 January 2026, following the publication of a European Commission Delegated Act. This text also provides for the issuance by the EBA of a number of regulatory or implementing technical standards as well as guidelines. For a more detailed description, see risk factor 6.1 Laws and regulations adopted in force, as well as current and future legislative and regulatory developments, may significantly impact the BNP Paribas Group and the financial and economic environment in which it operates. Moreover, in this strengthened regulatory context, the risk of non‑compliance with existing laws and regulations, in particular those relating to the protection of the interests of customers and personal data, is a significant risk for the banking industry, potentially resulting in significant losses and fines(3). In addition to its compliance system, which specifically covers this type of risk, the Group places the interest of its customers, and more broadly that of its stakeholders, at the heart of its mechanism. Thus, the Code of conduct adopted by the Group in 2016, updated in 2021, sets out detailed values and rules of conduct in this area. Environmental risks The BNP Paribas Group is exposed to risks related to climate change, either directly through its own operations or for certain of its assets or indirectly through its financing and investment activities. The two main risk factors related to climate change are as follows: transition risk factors resulting from a change in the behaviour of economic and financial agents in response to the implementation of energy policies, change in regulation, technological innovations or changes in consumer preferences; physical risk factors resulting from the direct impact of climate change on people, corporates and assets due to extreme weather events ("acute") or long-term shifts ("Chronic") in climate patterns such as rising sea levels or rising temperatures. The Group assesses the impacts of climate change by identifying all risk drivers linked to these two main risks factors. The way these risk factors or drivers are impacting the Group are called transmission channels and this allows for a precise assessment of all material risks for the Group (for a more detailed description, see chapter 5.11 Risk ID). In line with international regulators and the Network of Supervisors and Central Banks for Greening the Financial System (NGFS), the Group considers the risks associated with the emergence of legal proceedings related to climate change for companies and investors, including liability risks, as a subset of physical and transition risks. Indeed, reputational or litigation risks may also arise due to potential negative impacts that the Group may have, either directly or indirectly, on the climate, or if its public commitments or disclosures are not perceived as accurate by some of its stakeholders. The Group may face in this case potential disputes, claims for compensation, legal proceedings and therefore held liable by any stakeholder or citizen who has suffered from climate change. The Group has set up a monitoring on the potential impact of these risk factors in the conduct of its business, in that of its counterparties or in its investments on its own behalf or on behalf of third parties. The Group thus integrates these risk factors into its risk management process and gradually strengthens their assessment, as the methodologies for measuring and analysing these factors and their impact on traditional risks, in particular, those relating to credit quality, are developed. For more details, please see risk factor 7.4 The BNP Paribas Group could experience business disruption and losses due to risks related to environmental, social and governance (“ESG”) issues, particularly relating to climate change, such as transition risks, physical risks or liability risks as well as the measures taken and commitments made by the Group in this area in section 7.1 Sustainability statements of chapter 7. Cyber security and technology risk BNP Paribas’ ability to do business is intrinsically tied to the fluidity of electronic transactions as well as the protection and security of information and technology assets. The technological change is accelerating with the digital transformation and the resulting increase in the number of communications circuits, dependency on systemic technological infrastructure, proliferation in data sources, growing process automation, and greater use of electronic banking transactions. The progress and acceleration of the technological changes needed to respond to customer requirements are giving cybercriminals new options for altering, stealing and disclosing data. Attacks are more frequent, with a bigger reach and sophistication across all sectors, including financial services. Besides, in the current context of geopolitical tensions and development of hybrid war, cyber threat is heightened. The outsourcing of a number of processes is also likely to expose the Group to structural cybersecurity and technology risks which can lead to the appearance of potential attack vectors that cybercriminals can exploit. In this context, the Group has reinforced its lines of defence dedicated to managing technological and cybersecurity risks (see the paragraph Cybersecurity and technology in section 5.9 Operational Risk) and operational standards are regularly adapted to support the Bank’s digital evolution and innovation while managing existing and emerging threats (such as cyber-crime, espionage, etc.). Emerging risks An emerging risk is defined as a new or evolving risk which potential impact could be material in the future but is currently not fully known or is difficult to quantify. The Group identified emerging risks related to insurance and reinsurance markets technological innovations, the evolving regulatory environment, as well as certain health, demographic and societal risks. Evolutions in insurance and reinsurance markets Insurance and reinsurance are crucial, notably, for managing disaster-related financial risks. They facilitate risk sharing, cover damage and loss expenses, and aid in economic recovery after disasters by providing necessary funds for rebuilding efforts. Countries with well-developed insurance markets tend to recover more swiftly and efficiently from disasters. With the increasing frequency and severity of extreme weather events due to climate change (such as floods, wildfires and storms), there is a potential risk in the coming years that: insurance premiums rise significantly; exceptions in insurance contracts flourish; the insurability of certain risks in specific regions is challenged, potentially leading to the termination of some risk covers and the emergence of insurance deserts; reinsurance capacity decline, making it harder for insurers to transfer excess risk. Therefore, banks should critically evaluate the long-term effectiveness of insurance protections as mitigants for potential direct or indirect losses, all the more that the capacity of states to compensate for lack of insurance protection scheme is jeopardised by deteriorated public finance situations. Beyond climate-related risks, insurers must also manage a variety of emerging risks, including: Evolving threats from terrorism and cyber-attacks; Vulnerabilities related to high interest rates and economic downturns impacting insurance profitability; Exposure to geopolitical turmoil and social unrest; Technology-related risks, which require insurers to invest in IT security and understand the implications of artificial intelligence on their operations and business models; Keeping up with regulatory changes and ensuring compliance is essential to avoid unexpected losses and maintain market stability. The fundamental trend of the evolution of insurance and reinsurance markets conditions the ability of economic agents to transfer and mutualise risks. It has to be considered together with the capacity of States to replace insurers and reinsurers or to structure guarantee schemes that will ensure a continuation of the protections. Technological innovations The surge in data collection tools and the application of data-centric technologies, including increasingly complex algorithms and artificial intelligence, paired with the extraordinary growth in computing capabilities – exemplified by the advent of quantum computing – are reshaping decision-making processes. These developments introduce new kinds of risks, altering how people perceive information and truth (evidenced by the rise of the "post-truth" concept), reality, and standardised behaviours, which can rapidly influence certain markets. The anticipated advancements in quantum computing present substantial risks to data security and existing encryption methods, making the shift to post-quantum cryptography essential. Artificial intelligence’s influence extends to the job market, where it can displace workers and exacerbate inequality, as well as lead to the deterioration of professional skills. The pace of artificial intelligence innovation often exceeds the development of regulatory frameworks, resulting in governance gaps and the potential geopolitical friction. Moreover, the considerable energy demands of artificial intelligence and its carbon footprint are increasing sustainability concerns. The financial sector is also witnessing transformative shifts due to the rise of decentralised finance, digital assets based on blockchain technology, and the creation of digital currencies by central banks, all of which could structurally alter the banking industry. In light of these trends, the Group's competitive landscape is being transformed. The emergence of fintechs, significant companies investing in the financial space like GAFAM & BigTechs (Google, Apple, Facebook, Amazon, Microsoft), and other technological breakthroughs are disrupting traditional business models. These forces are shifting the focus towards enhancing customer experiences and employing new technologies to lower costs in less valuable operations. To remain relevant in this dynamic environment of changing value chains and heightened security needs for information systems and data, the Group is implementing a proactive strategy. This includes fostering industrial collaborations with fintech entities. Evolving regulatory environments In addition to the regulatory measures recently adopted or pending adoption, and already cited as top risks, the trend towards increasing complexity of the banking regulatory environment and associated supervision, as well as regional divergences, induces relative uncertainty about future developments, compliance costs, and the risk of proper execution of various measures. The Group has established an active monitoring system for its regulatory environment, enabling it to minimise these risks. Possible future divergence by type of regulated entity, for example, depending on their degree of innovation, may introduce risk of a competitive nature. Health risks The threats posed by climate change and environmental degradation are substantial, endangering vital ecosystem services that are fundamental to health and healthcare infrastructure. The anticipated impacts on health stemming from climate change and the destruction of natural habitats are set to escalate, including a rise in air pollution and greater occurrence of heatwaves. The threat of compromised access to safe water and sanitation, along with an uptick in waterborne diseases due to flooding, are additional worries. Moreover: it is anticipated that climate change will exacerbate malnutrition as it leads to greater food scarcity; urban expansion, alterations in land usage, and the diminishing of natural environments are factors that drive the appearance and resurgence of pathogens, including invasive fungal diseases. The warming climate also prolongs the transmission season for established illnesses such as malaria and dengue; increased atmospheric carbon dioxide levels may lead to nutritional deficits in crops and hasten the absorption of heavy metals, which have associations with a variety of pathologies; mental health could be further compromised by escalating stress factors such as environmental anxiety, aggression, poverty, and isolation. Furthermore, the emergence of antimicrobial resistance and diseases that transmit from animals to humans (zoonotic diseases) introduces additional complexity to prospective health challenges. The risk of new germs or re-emerging pathogens—bacteria, viruses, parasites, or fungi—that could lead to epidemics of infectious diseases difficult to control with high mortality rates and economic disruptions is amplified by the resistance that bacteria have developed to antibiotics, viruses to antiviral drugs, and fungi to antifungal treatments. The evolution of lifestyles, the aging of populations, and the decline in birth rates in certain regions will impact healthcare systems and economic production. Healthcare systems are also facing financial deficits and the migration of medical personnel to more profitable and/or less demanding sectors or regions. In this context, the increasing frequency and extent of infectious disease outbreaks, combined with chronic illnesses, could negatively impact already overburdened healthcare systems over the next decade. Despite the lessons learned from the health crisis associated with Covid-19, a similar outbreak could result in novel breakdowns in infrastructure and supply chains, leading to significant repercussions for all involved parties. Demographic issues Demographic transition (decrease in fertility rate, increase in life expectancy) is a major underlying development in many countries. In the years and decades to come, it will have a significant impact on economic growth, but also on health and retirement budgets, and on savings and consumption behaviour. Misinformation and disinformation The spread of manipulated information, especially through synthetic content and artificial intelligence technologies, is rapidly evolving and constitutes a risk. It can significantly impact society by influencing individual opinions and contributing to societal divisions and polarisation. Key concerns include: the potential for misinformation to disrupt democratic processes and provoke civil unrest; increasing distrust in media and government, which fuels societal polarisation, affecting social cohesion and mental health; the risk that government measures against misinformation could lead to repression and loss of freedoms, while inaction can also be detrimental, harming international relations and affecting global markets; artificial intelligence advancements making it easier to generate and disseminate false information; governmental regulatory efforts struggling to keep pace with the rapid technological advancements; the broad societal impacts of misinformation, including individual manipulation, economic damage, societal fractures, and the emergence of new types of crimes; the use of misinformation by governments to control public discourse, suppress dissent, and restrict press freedoms. Additionally, the interaction between digitalisation, social media, and artificial intelligence has intangible consequences, as deepfakes and disinformation-for-hire services increase mistrust between societies, businesses, and governments. Social media amplifies the spread of negative news, with false information proven to disseminate faster and wider than true information. Such risks also affect financial institutions, blurring the relationship with truth and evidence, and posing multiple risks to banks that can impact their operations and reputation. Overall, misinformation and disinformation represent significant challenges across various levels of society and industry, with profound implications for global stability, trust, and economic health. Societal issues The widening wealth gap, societal polarisation, and social unrest highlight a complex interplay of economic, social, political and geopolitical issues that can lead to economic downturns and fewer business opportunities. Inequalities have intensified over the past years, with inflation eroding purchase powers, exacerbating job losses consequences and economic strain, particularly affecting the less affluent and fuelling populist movements. Disinformation is a key driver of societal polarisation, which risks triggering economic and political instability, as trust in government and media declines. This fragmentation and loss of social cohesion threaten social stability and economic productivity, driven by factors such as debt crises, state instability, cost-of-living issues, unemployment, climate migration, digital divides, and algorithmic biases. The increasing divide between rich and poor poses significant political challenges and can ignite social unrest, disrupting infrastructure and services. Coupled with other risk factors—technological, economic, and environmental—this increase in inequalities fosters the development of illicit activities and the growth of organised crime, further destabilising societies. State fragility, fuelled by climate change, conflicts, and economic hardship, creates a governance gap where transnational organised crime can flourish. Corruption exacerbates this issue, allowing criminal networks to control transportation hubs, law enforcement, and parts of the public sector, thereby undermining the rule of law and weakening economic growth. Environmental crimes, such as illegal logging and fishing, drive forced labour and human rights abuses, while socioeconomic vulnerabilities heighten exposure to criminal networks. Polarisation on various issues has marked recent political events, leading to economic slowdowns, civil unrest, and deeper political divisions, which threaten democratic stability. It highlights social discontent over inequality and perceived policy failures. Financial institutions and companies must be mindful of societal expectations. Beyond responses designed to meet its customers’ changing needs, the Group is, on a more general basis, adapting its responses to the expectations of the society in which it operates in terms of how it conducts its business, respect for human rights and environmental protection. The BNP Paribas Group Code of conduct defines standards of conduct in line with the values and missions determined by the Bank. 5.2Capital management and capital adequacy Scope of application The prudential scope of application defined in Regulation (EU) No. 575/2013 on capital requirements is not the same as the accounting scope of consolidation whose composition concerns the application of IFRS as adopted by the European Union. The notes to the consolidated financial statements cover the accounting consolidation scope. The consolidation principles and the scope of consolidation in accordance with the accounting consolidation method used are described respectively in notes 1.b Consolidation and 8.k Scope of consolidation to the consolidated financial statements. PRUDENTIAL SCOPE In accordance with banking regulation, BNP Paribas Group has defined a prudential scope to monitor capital ratios calculated on a consolidated basis. Its specificities are as follows: insurance companies (primarily BNP Paribas Cardif and its subsidiaries) that are fully consolidated within the accounting scope are consolidated under the equity method in the prudential scope; unregulated entities of the real estate services (BNP Paribas Real Estate) and businesses that are fully consolidated within the accounting scope are consolidated under the equity method within the prudential scope; jointly controlled entities are consolidated under the equity method in the accounting scope and under the proportional consolidation method in the prudential scope. As a reminder, since 1 July 2024, the entities of the Arval business under exclusive control are fully consolidated within the prudential scope. The differences between the accounting and prudential scopes of consolidation are summarised in the table below. ➤TABLE 7: DIFFERENCES BETWEEN THE ACCOUNTING AND PRUDENTIAL SCOPES (EU LI3) Name of the entity 31 December 2024 Method of accounting consolidation Method of regulatory consolidation Neither consolidated nor deducted from own funds Description of the entity Full consolidation Proportional consolidation Equity method BNP Paribas Cardif and its subsidiaries(1) Full consolidation x Insurance BNPP SB Re Full consolidation x Insurance BNPP Vartry Reinsurance DAC Full consolidation x Insurance Darnell DAC Full consolidation x Insurance Decart Re Ltd Full consolidation x Insurance Greenstars BNPP Full consolidation x Insurance Greenval Insurance DAC Full consolidation x Insurance Le Sphinx Assurances Luxembourg SA Full consolidation x Insurance BNP Paribas Real Estate and its non-regulated subsidiaries(1) Full consolidation x Real Estate services Collective investment funds(2) Full consolidation x Asset management 2SF – Société des Services Fiduciaires Equity method x Retail Banking Bantas Nakit AS Equity method x Retail Banking Partecis Equity method x Retail Banking Baroda BNPP AMC Private Ltd Equity method x Asset Management BNPP ABC Wealth Management Co Ltd Equity method x Asset Management FScholen Equity method x Corporate & Institutional Banking Uptevia SA Equity method x Corporate & Institutional Banking Lyf SA Equity method x Internet financial services Lyf SAS Equity method x Internet financial services Services Logiciels d’Intégration Boursière Equity method x Securities custody Securitisation funds UCI and RMBS Prado Equity method x Specialised loans Securitisation funds Genius Equity method x Specialised loans Securitisation funds Wisdom Equity method x Specialised loans Genius Auto Finance Co Ltd Equity method x Specialised loans Union de Creditos Inmobiliarios SA Equity method x Specialised loans United Partnership Equity method x Specialised loans Zhejiang Wisdom Puhua Financial Leasing Co Ltd Equity method x Specialised loans BNP Paribas Cardif and BNP Paribas Real Estate subsidiaries are identified in the note 8.k Scope of consolidation to the consolidated financial statements (footnote (2)). Collective investment funds are identified in the note 8.k Scope of consolidation to the consolidated financial statements (footnote (4)). The table below shows the restatements between the accounting and prudential scopes of consolidation for each balance sheet item. ➤TABLE 8: CONSOLIDATED BALANCE SHEET TO PRUDENTIAL BALANCE SHEET RECONCILIATION (EU LI1/EU CC2) In millions of euros 31 December 2024 Accounting scope Adjustment of insurance companies Other adjustments related to consolidation methods() Prudential scope Reference to capital table (see Appendix 2) ASSETS Cash and amounts due from central banks 182,496 (4) 12 182,504 Financial instruments at fair value through profit or loss Securities 267,357 591 (29) 267,919 of which own funds instruments in credit or financial institutions more than 10%-owned 390 590 980 1 of which own funds instruments in credit or financial institutions less than 10%-owned 6,461 1 6,462 2 Loans and repurchase agreements 225,699 1,365 (293) 226,771 Derivative financial instruments 322,631 723 (23) 323,331 Derivatives used for hedging purposes 20,851 (13) 92 20,930 Financial assets at fair value through equity Debt securities 71,430 3,445 74,875 of which own funds instruments in credit or financial institutions more than 10%-owned 3,443 3,443 1 of which own funds instruments in credit or financial institutions less than 10%-owned 2 Equity securities 1,610 1,610 of which own funds instruments in credit or financial institutions more than 10%-owned 668 668 1 of which own funds instruments in credit or financial institutions less than 10%-owned 294 294 2 Financial assets at amortised cost Loans and advances to credit institutions 31,147 246 31,393 of which own funds instruments in credit or financial institutions more than 10%-owned 177 177 1 of which own funds instruments in credit or financial institutions less than 10%-owned 2 Loans and advances to customers 900,141 6,987 4,361 911,489 of which own funds instruments in credit or financial institutions more than 10%-owned 141 25 (141) 25 1 of which own funds instruments in credit or financial institutions less than 10%-owned 1 1 2 Debt securities 146,975 (144) 146,831 of which own funds instruments in credit or financial institutions more than 10%-owned 1 of which own funds instruments in credit or financial institutions less than 10%-owned 2 Remeasurement adjustment on interest-rate risk hedged portfolios (758) (758) Investments and other assets of insurance activities 286,849 (286,849) Current and deferred tax assets 6,215 (612) (37) 5,566 Accrued income and other assets 174,147 (2,874) (1,417) 169,856 Equity-method investments 7,862 4,422 (4) 12,280 of which investments in credit or financial institutions 7,096 4,387 (727) 10,756 1 of which goodwill 519 32 98 649 3 Property, plant and equipment and investment property 50,314 (535) (172) 49,607 Intangible assets 4,392 (687) (23) 3,682 of which intangible assets excluding mortgage servicing rights 4,392 (687) (23) 3,682 3 Goodwill 5,550 (323) (290) 4,937 3 TOTAL ASSETS 2,704,908 (274,364) 2,279 2,432,823 In millions of euros 31 December 2024 Accounting scope Adjustment of insurance companies Other adjustments related to consolidation methods() Prudential scope Reference to capital table (see Appendix 2) LIABILITIES Deposits from central banks 3,366 3,366 Financial instruments at fair value through profit or loss Securities 79,958 79,958 Deposits and repurchase agreements 304,817 128 (67) 304,878 Issued debt securities 104,934 27 (369) 104,592 of which liabilities qualifying for additional Tier 1 capital 4 of which liabilities qualifying for additional Tier 2 capital 18 18 5 Derivative financial instruments 301,953 308 (17) 302,244 Derivatives used for hedging purposes 36,864 (58) 17 36,823 Financial liabilities at amortised cost Deposit from credit institutions 66,872 (4,790) 985 63,067 Deposit from customers 1,034,857 1,177 632 1,036,666 Debt securities 198,119 17 2,083 200,219 Subordinated debt 31,799 (1,062) 30,737 of which liabilities qualifying for additional Tier 1 capital(2) 3,851 3,851 4 of which liabilities qualifying additional for Tier 2 capital(3) 26,640 26,640 5 Remeasurement adjustment on interest-rate risk hedged portfolios (10,696) (10,696) Current and deferred tax liabilities 3,657 (64) 5 3,598 Accrued expenses and other liabilities 136,955 (1,951) (923) 134,081 Liabilities related to insurance contracts 267,506 (267,506) Financial liabilities related to insurance activities Provisions for contingencies and charges 9,806 (345) (66) 9,395 TOTAL LIABILITIES 2,570,767 (274,119) 2,280 2,298,928 EQUITY Share capital, additional paid-in capital and retained earnings 118,957 (1) 3 118,959 6 Net income Group share for the period 11,688 11,688 7 Total capital, retained earnings and net income Group share for the period 130,645 (1) 3 130,647 Changes in assets and liabilities recognised directly in equity (2,508) 2 (2,506) Shareholders’ equity 128,137 1 3 128,141 Minority interests 6,004 (246) (4) 5,754 8 TOTAL CONSOLIDATED EQUITY 134,141 (245) (1) 133,895 TOTAL LIABILITIES AND EQUITY 2,704,908 (274,364) 2,279 2,432,823 Adjustment of jointly controlled entities under proportional consolidation for the prudential scope, which are consolidated using the equity method within the accounting scope, and of the unregulated entities of BNP Paribas Real Estate and consolidated using the equity method within the prudential scope, which are fully consolidated within the accounting scope. Debt eligible as additional Tier 1 capital includes undated super subordinated notes and contingent convertible notes recognised respectively in equity and debt. Debt eligible as additional Tier 2 capital is presented at its notional value (excluding accrued interest and revaluation of the hedged component). In millions of euros 31 December 2023 Accounting scope Adjustment of insurance companies Other adjustments related to consolidation methods(1) Prudential scope Reference to capital table (see Appendix 2) ASSETS Cash and amounts due from central banks 288,259 11 288,270 Financial instruments at fair value through profit or loss Securities 211,634 598 (105) 212,127 of which own funds instruments in credit or financial institutions more than 10%-owned 344 590 934 1 of which own funds instruments in credit or financial institutions less than 10%-owned 3,606 1 3,606 2 Loans and repurchase agreements 227,175 188 (325) 227,038 Derivative financial instruments 292,079 764 (89) 292,754 Derivatives used for hedging purposes 21,692 (49) 171 21,814 Financial assets at fair value through equity Debt securities 50,274 2,693 52,967 of which own funds instruments in credit or financial institutions more than 10%-owned 2,690 2,690 1 of which own funds instruments in credit or financial institutions less than 10%-owned 2 Equity securities 2,275 2,275 of which own funds instruments in credit or financial institutions more than 10%-owned 766 766 1 of which own funds instruments in credit or financial institutions less than 10%-owned 894 894 2 Financial assets at amortised cost Loans and advances to credit institutions 24,335 (80) 24,255 of which own funds instruments in credit or financial institutions more than 10%-owned 177 177 1 of which own funds instruments in credit or financial institutions less than 10%-owned 2 Loans and advances to customers 859,200 5,050 27,556 891,806 of which own funds instruments in credit or financial institutions more than 10%-owned 150 25 (150) 25 1 of which own funds instruments in credit or financial institutions less than 10%-owned 1 1 2 Debt securities 121,161 (179) 120,982 of which own funds instruments in credit or financial institutions more than 10%-owned 100 100 1 of which own funds instruments in credit or financial institutions less than 10%-owned 2 Remeasurement adjustment on interest-rate risk hedged portfolios (2,661) (2,661) Financial investments and other assets of insurance activities 257,098 (257,098) Current and deferred tax assets 6,556 (104) (128) 6,324 Accrued income and other assets 170,758 (1,998) (4,460) 164,300 Equity-method investments 6,751 3,789 3,811 14,351 of which investments in credit or financial institutions 6,076 3,563 (798) 8,841 1 of which goodwill 512 226 923 1,661 3 Property, plant and equipment and investment property 45,222 (581) (34,937) 9,704 Intangible assets 4,142 (462) (164) 3,516 of which intangible assets excluding mortgage servicing rights 4,142 (462) (164) 3,516 3 Goodwill 5,549 (225) (922) 4,402 3 TOTAL ASSETS 2,591,499 (247,435) (9,840) 2,334,224 In millions of euros 31 December 2023 Accounting scope Adjustment of insurance companies Other adjustments related to consolidation methods(1) Prudential scope Reference to capital table (see Appendix 2) LIABILITIES Deposits from central banks 3,374 3,374 Financial instruments at fair value through profit or loss Securities 104,910 104,910 Deposits and repurchase agreements 273,614 260 273,874 Issued debt securities 83,763 21 (441) 83,343 of which liabilities qualifying for additional Tier 1 capital 4 of which liabilities qualifying for additional Tier 2 capital 18 18 5 Derivative financial instruments 278,892 638 (84) 279,446 Derivatives used for hedging purposes 38,011 (65) (35) 37,911 Financial liabilities at amortised cost Deposit from credit institutions 95,175 (8,510) (1,075) 85,590 Deposit from customers 988,549 1,193 4,133 993,875 Debt securities 191,482 12 (6,822) 184,672 Subordinated debt 24,743 (1,780) 2 22,965 of which liabilities qualifying for additional Tier 1 capital(2) 1,352 1,352 4 of which liabilities qualifying for additional Tier 2 capital(3) 22,433 22,433 5 Remeasurement adjustment on interest-rate risk hedged portfolios (14,175) (14,175) Current and deferred tax liabilities 3,821 533 (751) 3,603 Accrued expenses and other liabilities 143,673 (2,965) (3,818) 136,890 Liabilities related to insurance contracts 218,043 (218,043) Financial liabilities related to insurance activities 18,239 (18,239) Provisions for contingencies and charges 10,518 (348) (949) 9,221 TOTAL LIABILITIES 2,462,632 (247,293) (9,840) 2,205,499 EQUITY Share capital, additional paid-in capital and retained earnings 115,809 5 115,814 6 Net income Group share for the period 10,975 10,975 7 Total capital, retained earnings and net income Group share for the period 126,784 - 5 126,789 Changes in assets and liabilities recognised directly in equity (3,042) 1 (3,041) Shareholders’ equity 123,742 - 6 123,748 Minority interests 5,125 (142) (6) 4,977 8 TOTAL CONSOLIDATED EQUITY 128,867 (142) - 128,725 TOTAL LIABILITIES AND EQUITY 2,591,499 (247,435) (9,840) 2,334,224 Adjustment of jointly controlled entities under proportional consolidation for the prudential scope, which are consolidated using the equity method within the accounting scope, and of the unregulated entities of BNP Paribas Real Estate consolidated using the equity method within the prudential scope, which are fully consolidated within the accounting scope. Debt eligible as additional Tier 1 capital includes undated super subordinated notes and contingent convertible notes recognised respectively in equity and debt. Debt eligible as additional Tier 2 capital is presented at its notional value (excluding accrued interest and revaluation of the hedged component). The following table shows the breakdown of the different categories of assets and liabilities recognised on the Bank’s prudential balance sheet by regulatory risk type. The sum of the amounts thus broken down is not necessarily equal to the net carrying values of the prudential scope, because some items may be subject to capital requirements for several types of risk. ➤TABLE 9: PRUDENTIAL BALANCE SHEET BY RISK TYPE (EU LI1-B) In millions of euros 31 December 2024 Net carrying values: prudential scope Items subject to: Not subject to capital requirements or deducted from capital Credit risk framework Counterparty credit risk framework Securitisation framework Market risk framework ASSETS Cash and amounts due from central banks 182,504 182,504 Financial instruments at fair value through profit or loss Securities 267,919 11,809 11,034 53 255,516 576 Loans and repurchase agreements 226,771 3,846 213,629 222,924 Derivative financial instruments 323,331 323,331 322,091 Derivatives used for hedging purposes 20,930 20,930 Financial assets at fair value through equity 76,485 72,703 339 3,443 Financial assets at amortised cost Loans and advances to credit institutions 31,393 22,775 8,663 (44) Loans and advances to customers 911,489 799,694 41,755 68,895 1,145 Debt securities 146,831 127,824 85 22,976 (3,970) Remeasurement adjustment on interest-rate risk hedged portfolios (758) (758) Current and deferred tax assets 5,566 5,772 (206) Accrued income and other assets 169,856 34,659 125,438 8,226 3,163 Equity-method investments 12,280 11,632 649 Property, plant and equipment and investment property 49,607 49,235 372 Intangible assets 3,682 1,390 2,292 Goodwill 4,937 4,937 TOTAL ASSETS 2,432,823 1,323,843 744,865 92,263 808,757 11,599 In millions of euros 31 December 2024 Net carrying values: prudential scope Items subject to: Not subject to capital requirements or deducted from capital Credit risk framework Counterparty credit risk framework Securitisation framework Market risk framework LIABILITIES Deposits from central banks 3,366 3,366 Financial instruments at fair value through profit or loss Securities 79,958 79,958 Deposits and repurchase agreements 304,878 296,393 296,393 8,485 Issued debt securities 104,592 104,592 Derivative financial instruments 302,244 302,244 300,466 Derivatives used for hedging purposes 36,823 36,823 Financial liabilities at amortised cost Deposit from credit institutions 63,067 18,396 44,670 Deposit from customers 1,036,666 2,938 1,033,728 Debt securities 200,219 200,219 Subordinated debt 30,737 30,737 Remeasurement adjustment on interest-rate risk hedged portfolios (10,696) (10,696) Current and deferred tax liabilities 3,598 3,598 Accrued expenses and other liabilities 134,081 88,047 357 46,577 Provisions for contingencies and charges 9,395 706 8,690 TOTAL LIABILITIES 2,298,928 706 744,841 - 677,174 1,473,966 TOTAL CONSOLIDATED EQUITY 133,895 - - - - 133,895 TOTAL LIABILITIES AND EQUITY 2,432,823 706 744,841 - 677,174 1,607,861 In millions of euros 31 December 2023 Net carrying values: prudential scope Items subject to: Not subject to capital requirements or deducted from capital Credit risk framework Counterparty credit risk framework Securitisation framework Market risk framework ASSETS Cash and amounts due from central banks 288,270 288,270 Financial instruments at fair value through profit or loss Securities 212,127 9,467 7,565 73 202,064 537 Loans and repurchase agreements 227,038 2,296 216,332 224,716 Derivative financial instruments 292,754 292,754 291,603 Derivatives used for hedging purposes 21,814 21,814 Financial assets at fair value through equity 55,242 52,028 39 435 2,779 Financial assets at amortised cost Loans and advances to credit institutions 24,255 19,081 4,997 177 Loans and advances to customers 891,806 807,137 27,480 55,716 1,473 Debt securities 120,982 106,771 474 20,125 (5,645) Remeasurement adjustment on interest-rate risk hedged portfolios (2,661) (2,661) Current and deferred tax assets 6,324 6,302 22 Accrued income and other assets 164,300 30,775 120,337 11,818 3,078 Equity-method investments 14,351 12,690 1,661 Property, plant and equipment and investment property 9,704 9,349 355 Intangible assets 3,516 1,284 2,232 Goodwill 4,402 4,402 TOTAL ASSETS 2,334,224 1,345,450 691,792 76,349 730,201 8,410 In millions of euros 31 December 2023 Net carrying values: prudential scope Items subject to: Not subject to capital requirements or deducted from capital Credit risk framework Counterparty credit risk framework Securitisation framework Market risk framework LIABILITIES Deposits from central banks 3,374 3,374 Financial instruments at fair value through profit or loss Securities 104,910 104,910 Deposits and repurchase agreements 273,874 266,720 266,720 7,153 Issued debt securities 83,343 83,343 Derivative financial instruments 279,446 279,446 277,708 Derivatives used for hedging purposes 37,911 37,911 Financial liabilities at amortised cost Deposit from credit institutions 85,590 21,567 64,023 Deposit from customers 993,875 1,289 992,586 Debt securities 184,672 184,672 Subordinated debt 22,965 22,965 Remeasurement adjustment on interest-rate risk hedged portfolios (14,175) (14,175) Current and deferred tax liabilities 3,603 3,603 Accrued expenses and other liabilities 136,890 91,406 2,289 43,617 Provisions for contingencies and charges 9,221 884 8,338 TOTAL LIABILITIES 2,205,499 884 698,339 - 651,627 1,399,499 TOTAL CONSOLIDATED EQUITY 128,725 - - - - 128,725 TOTAL LIABILITIES AND EQUITY 2,334,224 884 698,339 - 651,627 1,528,224 The following table shows the main differences between the amounts of accounting exposure on the prudential balance sheet (see previous table) and the amounts of exposure used for regulatory purposes, based on the different types of risk, except market risk. Indeed, for the latter, the main regulatory measure used by the Group is Value at Risk (VaR), which reflects the sensitivity of the Bank’s trading book to the different market parameters (see Market risk exposure section 5.7 Market risk). Therefore the VaR amount does not relate directly to the net carrying value of the assets and liabilities subject to market risk. ➤TABLE 10: RECONCILIATION BETWEEN NET CARRYING VALUES UNDER THE PRUDENTIAL SCOPE AND THE EXPOSURE AMOUNTS CONSIDERED FOR REGULATORY PURPOSES (EU LI2) In millions of euros 31 December 2024 Credit risk framework Counterparty credit risk framework Securitisation framework Market risk framework ASSETS NET CARRYING VALUE 1,323,832 744,865 92,263 808,757 Liabilities net carrying value (744,841) Off-balance sheet amounts net of depreciation 482,214 27,590 Credit risk depreciation amounts 17,664 62 Amounts below the thresholds for deduction (subject to 250% risk-weight)(1) (8,290) Differences in valuations due to the use of internal models(2) 237,847 Other adjustments 13,006 EXPOSURE AMOUNTS CONSIDERED FOR REGULATORY PURPOSES 1,828,426 237,871 119,915 Includes deferred tax assets depending on future profits and significant participations in financial sector entities, subject to 250% risk-weight. The main regulatory measure used by the Group for counterparty risk is the EEPE (Effective Expected Positive Exposure). The features of the valuation model are described in the paragraph Counterparty risk measurement in section 5.6 Counterparty risk. In millions of euros 31 December 2023 Credit risk framework Counterparty credit risk framework Securitisation framework Market risk framework ASSETS NET CARRYING VALUE 1,345,450 691,792 76,349 730,201 Liabilities net carrying value (698,339) Off-balance sheet amounts net of depreciation 466,318 24,642 Credit risk depreciation amounts 18,167 35 Amounts below the thresholds for deduction (subject to 250% risk-weight)(1) (7,701) Differences in valuations due to the use of internal models(2) 205,836 Other adjustments 6,960 EXPOSURE AMOUNTS CONSIDERED FOR REGULATORY PURPOSES 1,829,194 199,289 101,026 Includes deferred tax assets depending on future profits and significant participations in financial sector entities, subject to 250% risk-weight. The main regulatory measure used by the Group for counterparty risk is the EEPE (Effective Expected Positive Exposure). The features of the valuation model are described in the paragraph Counterparty risk measurement in section 5.6 Counterparty risk. The exposure amounts used for regulatory purposes are presented: in section 5.4 for credit risk; in section 5.5 for securitisation positions in the banking book; in section 5.6 for counterparty credit risk; in section 5.7 for market risk. Significant subsidiaries Aggregate information on the risk-weighted assets of BNP Paribas’ significant subgroups and subsidiaries are given as Group contribution in Appendix 4 to this chapter. The following subgroups are considered significant, based on the criterion that their risk-weighted assets amounted to more than 3% of the Group’s total risk-weighted assets (excluding entities consolidated under the equity method) at 31 December 2024: BNP Paribas Fortis; Banca Nazionale del Lavoro (BNL); BNP Paribas Personal Finance; BGL BNP Paribas. The risk-weighted assets reported correspond to the sub-consolidation scope of the four subgroups. Thus, BGL BNP Paribas subgroup is also included in BNP Paribas Fortis subgroups. The significant restrictions relating to the Group’s ability to transfer cash within the entities are described in note 8.f Significant restrictions in subsidiaries, joint ventures and associates to the consolidated financial statements. Subsidiaries whose prudential requirements are supervised as part of the consolidated supervision of BNP Paribas SA, in accordance with article 7.1 of Regulation (EU) No. 575/2013, are identified in the scope of consolidation in note 8.k Scope of consolidation to the consolidated financial statements, under reference (1). Compliance with capital requirements at the individual level of each entity that does not have an exemption is verified at the level of their respective division or business line. As at 31 December 2024, the Group’s entities had a capital level that complied with regulatory requirements. Regulatory capital The BNP Paribas Group is required to comply with the French regulation that transposes European Directives on “Access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms” and “Financial conglomerates”. In the various countries in which the Group operates, BNP Paribas also complies with specific regulatory ratios in line with procedures controlled by the relevant supervisory authorities. These ratios mainly address the issues of capital adequacy, risk concentration, liquidity and asset/liability mismatches. As at 1 January 2014, Regulation (EU) No. 575/2013, establishing the methods for calculating the solvency ratio, defines it as the ratio between the regulatory capital and the sum of: the amount of risk-weighted assets for credit and counterparty risks, calculated using the standardised approach or the Internal Ratings-Based Approach (IRBA) depending on the particular entity or the activity of the Group concerned; capital requirements for market risk, for credit valuation adjustment risk and for operational risk, multiplied by a factor of 12.5. Breakdown of regulatory capital Regulatory capital is divided into three categories (Common Equity Tier 1 capital, Additional Tier 1 capital and Tier 2 capital), which consist of equity and debt instruments, to which regulatory adjustments have been made. Common Equity Tier 1 capital Common Equity Tier 1 capital instruments mainly comprise: the consolidated equity attributable to shareholders restated for the anticipated distribution of results and undated super subordinated notes, which are ineligible for this category; minority interest reserves of regulated entities, adjusted for their capitalisation surplus. The main regulatory adjustments are as follows: gains and losses generated by cash flow hedges; adjustments to the value of instruments measured at fair value required by prudent valuation; goodwill and other intangible assets, net of deferred tax liabilities. Since 31 December 2020, in accordance with Regulation (EU) No. 2020/2176, certain software products have benefited from a specific prudential amortisation allowing the application of a preferential weighting instead of a deduction from CET1 capital; net deferred tax assets that rely on future profitability and arising from tax loss carry-forwards; expected losses on equity exposures; share of expected losses on outstanding loans measured using the Internal Ratings-Based Approach (IRBA) which is not covered by provisions and other value adjustments; negative difference between the amount of the provision recognised for each non-performing exposure and the minimum provisioning level as defined in article 47a of Regulation (EU) No. 2019/630; securitisation tranches for which the Group has opted for the own funds deduction instead of a 1,250% weighting. Treasury shares held or granted a buy-back authorisation are deducted from this category. ➤TABLE 11: TRANSITION FROM CONSOLIDATED EQUITY TO COMMON EQUITY TIER 1 (CET1) CAPITAL In millions of euros 31 December 2024 31 December 2023 Consolidated equity(1) 133,895 128,725 Undated super subordinated notes ineligible in CET1 (12,207) (13,549) Proposed distribution(2) (6,495) (6,329) Ineligible minority interests (3,228) (2,852) Changes in the fair value of hedging instruments recognised directly in equity (112) (293) Additional value adjustments linked to prudent valuation requirements (1,941) (1,817) Goodwill and other intangible assets (7,649) (8,055) Net deferred tax assets arising from tax loss carry-forwards (181) (311) Negative amounts resulting from the calculation of expected losses (1,786) (837) Other prudential adjustments (2,169) (1,824) COMMON EQUITY TIER 1 (CET1) CAPITAL 98,128 92,857 In 2024, the Group carried out a share buyback programme for a total amount of EUR 1,055 million. In 2023, the Group carried out a share buyback programme for a total amount of EUR 5 billion, including EUR 4 billion to offset the effect of the dilution of net earnings per share related to the sale of 100% of its commercial banking activities in the United States by Bank of the West The planned ordinary distribution at 31 December 2024 takes into account –EUR 1,084 million in respect of the distribution in the form of a share buyback programme. The ordinary distribution as at 31 December 2023 included –EUR 1,055 million under a share buyback programme carried out in 2024. The table below shows the calculation of value adjustments applied to instruments measured at fair value, related to the prudent valuation requirements subject to a deduction from Common Equity Tier 1 capital. ➤TABLE 12: VALUE ADJUSTMENTS RELATED TO PRUDENT VALUATION (PVA) (EU PV1) a b c d e EU e1 EU e2 f g h In millions of euros 31 December 2024 Risk category Category level AVA – Valuation uncertainty Total category level post-diversification Equity Interest rates Foreign exchange Credit Commodities Unearned credit spreads AVA Investment and funding costs AVA Of which: Total core approach in the trading book Of which: Total core approach in the banking book 1 Market price uncertainty 1,225 196 21 234 13 25 35 759 232 527 3 Close-out cost 468 218 23 195 21 435 415 20 4 Concentrated positions 217 150 14 26 12 419 284 135 5 Early termination 9 1 1 11 10 1 6 Model risk 95 72 6 41 107 93 93 7 Operational risk 10 Future administrative costs 107 17 34 35 192 192 12 Total Additional Valuation Adjustments (AVAs) 1,941 1,227 714 a b c d e EU e1 EU e2 f g h In millions of euros 31 December 2023 Risk category Category level AVA – Valuation uncertainty Total category level post-diversification Equity Interest rates Foreign exchange Credit Commodities Unearned credit spreads AVA Investment and funding costs AVA Of which: Total core approach in the trading book Of which: Total core approach in the banking book 1 Market price uncertainty 1,138 176 16 181 22 35 30 645 172 473 3 Close-out cost 386 295 32 210 27 438 391 47 4 Concentrated positions 238 135 12 44 7 436 328 107 5 Early termination 6 1 1 9 8 1 6 Model risk 105 107 8 77 130 130 130 7 Operational risk 10 Future administrative costs 82 6 33 37 159 159 12 Total Additional Valuation Adjustments (AVAs) 1,817 1,188 629 Additional Tier 1 capital Additional Tier 1 capital is mainly composed of subordinated debt instruments with the following characteristics: they are perpetual and include no redemption incentive; they are not held by the Bank, its subsidiaries or any company in which the Group holds 20% or more of the capital; they have a capacity to absorb losses; they may include a buy back option, five years after the issue date at the earliest, exercisable at the issuer’s discretion (subject to authorisation by the supervisor); they have remuneration arising from distributable elements that may be cancelled, with no requirements for the Bank. This category is also composed of non-eligible minority reserves in common equity within their limit of eligibility. Authorisations to redeem Additional Tier 1 own capital instruments are deducted from this category. Tier 2 capital Tier 2 capital is composed of subordinated debt with no buy back incentive, as well as non-eligible minority reserves in Tier 1 capital within their limit of eligibility. A prudential discount is applied to the subordinated debt with less than five years of residual maturity. Prudential deductions from Tier 2 capital primarily concern: Tier 2 capital components in significant financial entities; Tier 2 own capital instrument buy back authorisations. Composition and evolution of regulatory capital The detail of regulatory capital and regulatory adjustments is presented in Appendix 2 Regulatory capital – Detail. The table presenting the details of the debt instruments recognised as capital, as well as their characteristics, in accordance with the template (EU CCA) required by implementing Regulation No. 2021/637, is available in the BNP Paribas Debt section of the Investor Relations website: https://invest.bnpparibas/en/search/debt/ documents/documentation-on-programs-and-issuances. ➤TABLE 13: REGULATORY CAPITAL In millions of euros 31 December 2024 31 December 2023 Common Equity Tier 1 (CET1) capital: instruments and reserves(1) Capital instruments and the related share premium accounts 20,202 21,253 of which ordinary shares 20,202 21,253 Retained earnings(2) 87,453 82,257 Accumulated other comprehensive income (and other reserves, to include unrealised gains and losses under the applicable accounting standards) (2,277) (2,809) Minority interests (amount allowed in consolidated CET1) 2,448 2,048 Independently reviewed interim profits net of any foreseeable charge or distribution(3) 4,406 3,970 COMMON EQUITY TIER 1 (CET1) CAPITAL BEFORE REGULATORY ADJUSTMENTS 112,231 106,719 Common Equity Tier 1 (CET1) capital: regulatory adjustments (14,103) (13,862) COMMON EQUITY TIER 1 (CET1) CAPITAL 98,128 92,857 Additional Tier 1 (AT1) capital: instruments 16,124 15,150 Additional Tier 1 (AT1) capital: regulatory adjustments (484) (506) ADDITIONAL TIER 1 (AT1) CAPITAL 15,640 14,644 TIER 1 CAPITAL (T1 = CET1 + AT1) 113,768 107,501 Tier 2 (T2) capital: instruments and provisions(4) 20,683 17,476 Tier 2 (T2) capital: regulatory adjustments (3,870) (3,233) Tier 2 (T2) CAPITAL 16,813 14,243 TOTAL CAPITAL (TC = T1 + T2) 130,581 121,744 Including as at 31 December 2024, -EUR 1,055 million in capital reduction related to the cancellation at 6 May 2024 of shares acquired in connection with the implementation of the 2024 share buyback programme carried out in full in 2024. Including as at 31 December 2023, -EUR 5 billion in capital reduction related to the cancellation in 2023 of shares acquired in connection with the implementation of the 2023 share buyback programme carried out in full in 2023. Taking into account, as at 31 December 2023, an anticipated distribution of 60% (of which -EUR 1,055 million in the form of share buybacks) in respect of distributable income after taking into account the compensation cost of undated super subordinated notes. Taking into account, as at 31 December 2024, a 60% proposed distribution of results (of which -EUR 1,084 million in the form of share buybacks) in respect of distributable income after taking into account the compensation cost of undated super subordinated notes subject to usual conditions. In accordance with the applicable eligibility rules for grandfathered debt in Tier 2 capital. ➤TABLE 14: CHANGE IN REGULATORY CAPITAL In millions of euros 31 December 2024 COMMON EQUITY TIER 1 (CET1) CAPITAL 31 December 2023 92,857 Common Equity Tier 1 capital: instruments and reserves 5,512 Capital instruments and the related share premium accounts (1,052) of which ordinary shares (1,052) Retained earnings 5,195 Accumulated other comprehensive income 532 Minority interests (amounts allowed in consolidated CET1) 400 Independently reviewed interim profits net of any foreseeable charge or distribution(1) 436 Common Equity Tier 1 (CET1) capital: regulatory adjustments (241) of which additional value adjustments (124) of which intangible assets 406 of which net deferred tax assets depending on future profits excluding these arising from temporary differences 130 of which fair value reserves related to gains or losses on cash flow hedges 181 of which negative amounts resulting from the calculation of expected loss amounts (799) of which gains or losses on liabilities valued at fair value resulting from changes in own credit standing 434 of which securitisation positions deducted from own funds (154) of which other adjustments (317) 31 December 2024 98,128 ADDITIONAL TIER 1 CAPITAL(2) 31 December 2023 14,644 Additional Tier 1 (AT1) capital: instruments(2) 974 Additional Tier 1 (AT1) capital: regulatory adjustments 22 Loans to credit or financial institutions more than 10%-owned Others 22 31 December 2024 15,640 TIER 2 CAPITAL(2) 31 December 2023 14,243 Tier 2 (T2) capital: instruments and provisions(2) 3,207 Tier 2 (T2) capital: regulatory adjustments (637) Loans to credit or financial institutions more than 10%-owned (653) Others 17 31 December 2024 16,813 Taking into account a 60% proposed distribution of result (including -EUR 1,084 million in the form of share buybacks) in respect of distributable income after taking into account the interest expense of undated super subordinated notes subject to usual conditions. In accordance with the eligibility rules for grandfathered debt in additional Tier 1 and Tier 2 capital applicable. ➤TABLE 15: CHANGE IN ELIGIBLE DEBT FOR THE CONSTITUTION OF EQUITY In millions of euros Tier 1 Tier 2 31 December 2023 14,901 17,286 New issues 2,288 4,974 Redemptions (1,511) (324) Prudential discount (1,824) Others 193 323 31 December 2024 15,872 20,435 Transitional arrangements relating to regulatory capital Under Regulation (EU) No. 575/2013 (CRR), the calculation methods introduced by Basel 3 were implemented gradually until 1 January 2022. Since 2019, the items still subject to these transitional arrangements were subordinated debt issued prior to 31 December 2011, eligible under prior regulations but not eligible under CRR after the end of the transition period, to which a declining eligibility threshold applied. These transitional arrangements expired on 1 January 2022, and the instruments concerned were all called, with the exception of one Tier 1 instrument and five Tier 2 instruments, all of which had no prudential value as at 31 December 2024. Regulation (EU) No. 2019/876 (CRR 2), which came into force on 27 June 2019, introduces additional eligibility criteria for Tier 1 and 2 regulatory capital which supplement those provided for by Regulation (EU) No. 575/2013. Instruments that were previously eligible under CRR, although not fulfilling these additional requirements may, eventually, be recognised in a less subordinated category, for a transitional period that may extend up to 28 June 2025. A Tier 2 capital instrument of EUR 31 million lost its eligibility on 1 January 2022, as issued by an ad hoc entity (article 63(a) CRR). In addition, at 31 December 2024, there were no longer any Tier 1 capital instruments eligible for the transitional arrangements in force until 28 June 2025, because they were issued under the law of countries outside the European Union without a bail-in clause (articles 52(1)(p) and 63(n) CRR); the stock of Tier 2 capital instruments eligible for the same provisions amounted to EUR 1.2 billion. The details of the instruments concerned by these transitional provisions, describing their eligibility period and the main characteristics in relation to the CRR/CRR 2 Regulations and the EBA’s opinion published on 21 October 2020, on the appropriate treatment of instruments ineligible at the end of 2021 in relation to the CRR criteria, are available on the Group’s investor relations website: https://invest.bnpparibas/en/search/debt/documents/documentation-on-programs-and-issuances. Regulation (EU) No. 2017/2395 and Regulation (EU) No. 2020/873 define the transitional measures relating to the introduction of IFRS 9. These measures mitigate the impact of the increase in expected credit losses related to the application of new standard on CET1 capital until 2024. The Group has been applying these transitional measures since 31 March 2020 in accordance with the ECB recommendation. The Bank has opted for the arrangements relating to the calculation of the exposure value calculated under the standardised approach, defined in paragraph 4 and paragraph 7 point b) in article 473a. ➤TABLE 16: EFFECT OF THE APPLICATION OF TRANSITIONAL ARRANGEMENTS FOR IFRS 9 ACCOUNTING STANDARD (EU IFRS9-FL) In millions of euros 31 December 2024 31 December 2023 Available capital 1 Common Equity Tier 1 (CET1) capital 98,128 92,857 2 Common Equity Tier 1 (CET1) capital as if IFRS 9 transitional arrangements had not been applied 98,128 92,857 3 Tier 1 capital 113,768 107,501 4 Tier 1 capital as if IFRS 9 transitional arrangements had not been applied 113,768 107,501 5 Total capital 130,581 121,744 6 Total capital as if IFRS 9 transitional arrangements had not been applied 130,581 121,744 Risk-weighted assets 7 Risk-weighted assets 762,247 703,694 8 Risk-weighted assets as if IFRS 9 transitional arrangements had not been applied 762,247 703,694 Capital ratios 9 Common Equity Tier 1 (CET1) capital 12.87% 13.20% 10 Common Equity Tier 1 (CET1) capital as if IFRS 9 transitional arrangements had not been applied 12.87% 13.20% 11 Tier 1 capital 14.93% 15.28% 12 Tier 1 capital as if IFRS 9 transitional arrangements had not been applied 14.93% 15.28% 13 Total capital 17.13% 17.30% 14 Total capital as if IFRS 9 transitional arrangements had not been applied 17.13% 17.30% Leverage ratios 15 Leverage ratio total exposure measure 2,464,334 2,346,500 16 Leverage ratio 4.62% 4.58% 17 Leverage ratio as if IFRS 9 transitional arrangements had not been applied 4.62% 4.58% The Group did not apply the provisions pursuant to article 468 of Regulation (EU) No. 575/2013 as amended by the Regulation (EU) No. 2020/873 and Regulation (EU) No. 2024/1623 relating to the temporary treatment of unrealised gains or losses on financial instruments at fair value through equity issued by central, regional or local governments. Capital requirement and risk-weighted assets The table below shows risk-weighted assets and capital requirement by risk type. Capital requirements make up 8% of risk-weighted assets. ➤TABLE 17: OVERVIEW OF RISK-WEIGHTED EXPOSURE AMOUNTS (EU OV1) a b c In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 31 December 2024 1 Credit risk 579,602 535,141 46,368 Details in section 5.4 2 of which standardised approach 227,092 188,191 18,167 3 of which foundation IRB (FIRB) approach 4 of which slotting approach EU 4a of which equities under the simple weighting approach 38,949 45,941 3,116 5 of which advanced IRB (A-IRB) approach 311,061 287,009 24,885 of which other risk exposure 2,500 14,000 200 6 Counterparty credit risk 48,097 45,025 3,848 Details in section 5.6 7 of which SACCR (Derivatives) 3,158 3,287 253 8 of which internal model method (IMM) 31,554 28,904 2,524 EU 8a of which exposures to CCP related to clearing activities 8,827 7,193 706 EU 8b of which CVA 4,084 5,189 327 9 of which other 474 452 38 15 Settlement risk 40 8 3 16 Securitisation exposures in the banking book 20,697 16,589 1,656 Details in section 5.5 17 of which internal ratings-based approach (SEC-IRBA) 11,308 8,829 905 18 of which external ratings-based approach (SEC-ERBA) 1,565 1,258 125 19 of which standardised approach (SEC-SA) 7,824 6,502 626 EU 19a of which exposures weighted at 1,250% (or deducted from own funds)(1) 20 Market risk 28,123 28,783 2,250 Details in section 5.7 21 of which standardised approach 7,968 9,768 637 22 of which internal model approach (IMA) 20,155 19,015 1,612 23 Operational risk 64,964 58,897 5,197 Details in section 5.9 EU 23a of which basic indicator approach 9,137 3,911 731 EU 23b of which standardised approach 11,094 10,215 887 EU 23c of which advanced measurement approach (AMA) 44,733 44,771 3,579 24 Amounts below the thresholds for deduction (subject to 250% risk weight) 20,724 19,252 1,658 29 TOTAL 762,247 703,694 60,980 The Group opted for the deductive approach rather than a weighting of 1,250%. The amount of securitisation exposures in the banking book deducted from own funds stood at EUR 402 million at 31 December 2024 (EUR 270 million at 31 December 2023). The Group’s total risk-weighted assets amounted to EUR 762.2 billion at 31 December 2024 compared with EUR 703.7 billion at 31 December 2023. At 31 December 2024, risk-weighted assets calculated using the internal model represented 56% of the Group’s risk-weighted assets. The breakdown of risk-weighted assets by risk type is presented in the various appropriate sections. Amounts below the thresholds for prudential capital deduction are assets weighted at 250% pursuant to article 48 of Regulation (EU) No. 575/2013. These mainly include: credit or financial institutions consolidated under the equity method, except for insurance entities consolidated under the equity method in the prudential scope, which are weighted using the simple weighting method; significant financial interests in credit or financial institutions in which the Group holds a stake of more than 10%; deferred tax assets that rely on future profitability and arise from temporary differences. Settlement risk is defined in article 378 of Regulation (EU) No. 575/2013 as the risk of loss of value related to a delay in the settlement of securities transactions. As at 31 December 2024, the risk-weighted assets with respect to this risk were not significant for the Group at EUR 40 million. Risk-weighted assets movements in 2024 The change in risk-weighted assets can be broken down into the following effects: asset size effect: impact stemming from the variation in exposures (EAD) and impact related to the efficient securitisation programmes and credit insurance initiated by the Group; asset quality effect: impact stemming from the change in risk parameters (Probability of Default, Loss Given Default for the internal ratings-based approach, and risk weighting for the standardised approach, etc.); model update effect: impact stemming from changes in the use of internal models (introduction of a new model, deployment on a new exposure scope, annual recalibration or review of risk parameters, application of add-ons, etc.); methodology and policy effect: impact stemming from changes in methodology and the establishment of new regulatory requirements having an impact on the calculation of risk-weighted assets; acquisition and disposal effect: impact stemming from changes in the scope of consolidation; currency effect: impact stemming from fluctuations in foreign exchange rates on exposures. ➤TABLE 18: RISK-WEIGHTED ASSETS MOVEMENTS BY KEY DRIVER RWAs In millions of euros 31 December 2023 Key driver Total variation 31 December 2024 Asset size Asset quality Model updates Methodology and policy Acquisitions and disposals Currency Other Credit risk 535,141 9,044 (1,194) 12,960 1,414 13,632 6,191 2,412 44,461 579,602 Counterparty credit risk 45,025 564 1,509 1,762 48 (810) 3,072 48,097 Settlement risk 8 33 33 40 Banking book securitisation positions 16,589 2,265 390 566 888 4,108 20,697 Market risk 28,783 1,603 (353) (144) (1,766) (660) 28,123 Operational risk 58,897 2,240 (114) (37) 3,993 (15) 6,067 64,964 Amounts below the thresholds for deduction (subject to 250% risk weight) 19,252 854 1 1,014 (398) 1,472 20,724 TOTAL 703,694 16,571 239 14,686 1,414 18,496 6,804 343 58,553 762,247 The main reasons explaining the +EUR 59 billion increase in risk-weighted assets in 2024 are: an +EUR 18 billion increase in perimeter effects, mainly linked to the impact of risk-weighted assets related to the full consolidation within the prudential scope since 1 July 2024 of the entities of the Arval business under exclusive control; a +EUR 17 billion increase in line with business activity net of the impact of the efficient securitisation transactions initiated by the Group; a +EUR 16 billion increase linked to the updating of models and regulations; a +EUR 7 billion increase due to currency effects, linked to the appreciation of the US dollar. Comments on the main changes in 2024 for each type of risk are detailed in the various appropriate sections. Breakdown of risk-weighted assets by business line ➤TABLE 19: RISK-WEIGHTED ASSETS BY RISK TYPE AND BUSINESS RWAs In millions of euros 31 December 2024 Corporate & Institutional Banking Commercial, Personal Banking & Services Investment & Protection Services Corporate center Total Global Banking Global Markets Securities Services Commercial & Personal Banking Specialised Businesses Credit risk 122,171 13,670 4,302 230,906 125,959 42,536 40,057 579,602 of which standardised approach 6,450 3,237 488 85,978 113,857 13,760 3,321 227,092 of which advanced IRB approach 114,061 8,751 3,691 138,139 10,509 6,306 29,604 311,061 of which equity positions under the simple weighting method 1,659 1,682 124 6,789 1,593 22,469 4,632 38,949 of which other risk exposure 2,500 2,500 Counterparty credit risk 783 41,016 2,386 2,080 130 338 1,363 48,097 of which SACCR (Derivatives) 3 2,270 538 56 286 6 3,158 of which internal model method (IMM) 199 27,117 1,631 1,472 1,134 31,554 of which exposures to CCP related to clearing activities 522 7,359 744 202 8,827 of which CVA 14 3,845 9 70 74 51 21 4,084 of which other 45 426 3 474 Settlement risk - 40 - - - - - 40 Securitisation exposures in the banking book 9,929 6,803 - 3,185 355 84 340 20,697 of which internal ratings-based approach (SEC-IRBA) 6,003 2,177 3,098 31 11,308 of which standardised approach (SEC-SA) 3,573 3,976 87 164 23 7,824 of which external ratings-based approach (SEC-ERBA) 353 649 161 84 317 1,565 Market risk 2,781 20,516 359 3,670 398 175 224 28,123 of which standardised approach 2,774 1,962 53 2,414 398 143 224 7,968 of which internal model approach (IMA) 7 18,554 306 1,256 33 20,155 Operational risk 10,373 14,163 4,197 18,137 14,472 3,663 (41) 64,964 of which basic indicator approach 461 481 276 2,004 5,588 401 (73) 9,137 of which standardised approach 1,748 1,710 406 3,540 3,172 375 142 11,094 of which advanced measurement approach (AMA) 8,164 11,973 3,514 12,593 5,713 2,887 (110) 44,733 Amounts below the thresholds for deduction (subject to 250% risk weight) 13 114 280 10,204 2,778 940 6,394 20,724 TOTAL 146,050 96,323 11,524 268,183 144,093 47,736 48,338 762,247 RWAs In millions of euros 31 December 2023 Corporate & Institutional Banking Commercial, Personal Banking & Services Investment & Protection Services Corporate center Total Global Banking Global Markets Securities Services Commercial & Personal Banking Specialised Businesses Credit risk 117,212 11,521 4,291 223,157 108,619 35,962 34,378 535,141 of which standardised approach 9,858 2,712 826 78,162 80,327 12,360 3,946 188,191 of which advanced IRB approach 106,062 7,584 3,347 139,300 15,399 4,637 10,681 287,009 of which equity positions under the simple weighting method 1,292 1,226 119 5,696 12,893 18,965 5,751 45,941 of which other risk exposure 14,000 14,000 Counterparty credit risk 1,022 39,817 1,743 2,038 143 285 (22) 45,025 of which SACCR (Derivatives) 5 2,242 701 89 242 7 3,287 of which internal model method (IMM) 432 26,228 1,117 1,253 (126) 28,904 of which exposures to CCP related to clearing activities 469 6,044 607 73 7,193 of which CVA 83 4,886 16 84 53 42 24 5,189 of which other 33 416 3 452 Settlement risk - 8 - - - - - 8 Securitisation exposures in the banking book 7,713 5,411 - 2,836 241 100 289 16,589 of which internal ratings-based approach (SEC-IRBA) 4,474 1,568 2,742 45 8,829 of which standardised approach (SEC-SA) 3,082 3,316 93 10 6,502 of which external ratings-based approach (SEC-ERBA) 157 526 196 100 279 1,258 Market risk 4,668 19,279 140 2,936 219 199 1,343 28,783 of which standardised approach 4,592 1,654 5 1,791 219 163 1,343 9,768 of which internal model approach (IMA) 76 17,624 135 1,145 36 19,015 Operational risk 10,113 13,956 4,081 16,981 10,090 3,659 18 58,897 of which basic indicator approach 343 419 233 1,725 902 315 (25) 3,911 of which standardised approach 1,470 1,502 363 2,928 3,318 426 209 10,215 of which advanced measurement approach (AMA) 8,299 12,035 3,485 12,328 5,870 2,918 (166) 44,771 Amounts below the thresholds for deduction (subject to 250% risk weight) 4 98 331 8,034 2,855 903 7,027 19,252 TOTAL 140,732 90,088 10,586 255,983 122,167 41,107 43,032 703,694 The breakdown of risk-weighted assets by domain reflects the Group’s diversified business mix, with 54% devoted to Commercial, Personal Banking & Services (Including 35% for Commercial & Personal Banking and 19% for Specialised Businesses), 34% to Corporate & Institutional Banking, 6% to Investment & Protection Services and 6% to Corporate Center. The increase in the Group’s risk-weighted assets was EUR 58.6 billion over 2024, with: a EUR 21.9 billion increase in Specialised Businesses, driven by Arval, linked to the impact of the full consolidation within prudential scope since 1 July 2024 of the entities of the Arval busoness under exclusive control; a EUR 12.5 billion increase in Corporate & Institutional Banking, including EUR 6.2 billion in Global Markets and EUR 5.3 billion in Global Banking; a EUR 12.2 billion increase in Commercial & Personal Banking, mainly driven by Europe-Mediterranean; a EUR 6.6 billion increase in Investment & Protection Services mainly driven by Insurance. Transitional arrangements relating to risk-weighted assets Since 31 March 2020, the Group applies the provisions of Regulation (EU) No. 2017/2395 on transitional measures relating to the introduction of IFRS 9 for the calculation of risk-weighted assets for credit risk. Since 30 June 2020, the Group has also applied the provisions of Regulation (EU) No. 2020/875 supplementing these transitional measures (see Table 16: Effect of the application of the transitional arrangements for IFRS 9 accounting standard). Capital adequacy and capital planning Capital adequacy The BNP Paribas Group is required to comply with a range of regulations: European banking regulations under the CRR and CRD, which also cover banking supervision; regulations relating to financial conglomerates in respect of additional supervision of its banking and insurance activities. BNP Paribas’ insurance business is governed by Solvency II insurance regulations. Within the context of the Single Supervisory Mechanism, the ECB thus became the direct supervisor of BNP Paribas as of 4 November 2014. The ECB draws on the competent national supervisory authorities in fulfilling this role. Requirements under banking regulations and supervision With respect to Pillar 1, the Group is required to meet: a minimum Common Equity Tier 1 (CET1) capital ratio of 4.5%; a minimum Tier 1 capital ratio of 6%; a minimum Total capital ratio of 8%. Additional requirements known as buffers In addition to the minimum capital requirements regarding Pillar 1, BNP Paribas has to maintain additional CET1 capital buffers: the capital conservation buffer is equal to 2.5% of the risk-weighted assets. The aim of this buffer is to absorb losses in a situation of intense economic stress; the following two buffers were defined to limit systemic institution failure risk. Only the highest of these two buffers is applicable: the buffer for Global Systemically Important Banks (G-SIBs) consists of a surcharge of CET1 capital defined by the Financial Stability Board, based on the methodology developed by the Basel Committee, which corresponds to the global systemic importance of banks. Global systemic importance is measured in terms of the impact a bank’s failure can have on the global financial system and the wider economy. The measurement approach of the global systemic importance is indicator-based. The selected indicators reflect the size of banks, their interconnectedness, the use of banking information systems for the services they provide, their global cross-jurisdictional activity and their complexity. The methodology is described in the document published in July 2013 by the Basel Committee, entitled Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement (BCBS 255). The values of G-SIBs indicators at 31 December 2023 are presented in GSIB1 format in Appendix 3 Countercyclical capital buffers and G-SIB buffer. The Group received notification from the Autorité de contrôle prudentiel et de résolution (ACPR), dated 27 November 2024, that it was on the 2024 list of global systemically important financial institutions in sub-category 2, corresponding to its score in the database at end 2023. As a result, the G-SIB buffer requirement for the Group applying from 1 January 2024 remains unchanged compared to the previous requirement, at 1.5% of the total amount of risk exposures. The next update of the Group’s G-SIBs at 31 December 2024 will be published in April 2025 and in the 1st update to the Universal registration document, the buffer for Domestic Systemically Important Banks (D-SIBs) aims to strengthen the capital requirements for institutions whose failure would have an impact on their national economy. The D-SIB buffer for BNP Paribas is set at 1.5% until to 2025; the systemic risk buffer aims to limit systemic or macro prudential non-cyclical risks in the long term. This is not significant for the Group; the countercyclical capital buffer is defined as a surcharge of CET1 capital, whose purpose is to adjust over time to increase the capital requirements in periods when credit growth is accelerating and reduce them in slower periods. A rate may be activated in each country by a discretionary decision from the appointed national authority. In view of the notified rates by country, the BNP Paribas countercyclical capital buffer was 0.67% at 31 December 2024 compared with 0.40% at 31 December 2023 (see Appendix 3 Countercyclical Capital Buffer and G-SIB Buffer). Pillar 2 requirement With respect to supervision, the second Pillar of the Basel Agreement provides that the supervisor shall determine whether the policies, strategies, procedures and arrangements implemented by the Group, on the one hand, and the capital held, on the other hand, are adequate for risk management and risk coverage purposes. This evaluation exercise by the supervisors to determine the adequacy of mechanisms and capital with respect to bank risk levels is designated in the regulations under the term SREP (Supervisory Review and Evaluation Process). ICAAP (Internal Capital Adequacy Assessment Process) is the process by which institutions assess the adequacy of their own funds with their internal measurements of the capital needed to cover the risks generated by their usual activities. ICAAP is used for the annual SREP. Within the BNP Paribas Group, the ICAAP is based on two key principles, as articulated in the European Central Bank’s Guide on ICAAP: the assessment of the Group’s adequate level of available capital to cover the capital needed in the internal perspective, and the forward-looking capital planning. In the ICAAP, the adequacy of available capital to the risks borne by the Group is assessed in the internal perspective, using a comprehensive quantification of the capital needs generated by the Pillar 1 risks specified by Basel regulations, as well as by the Pillar 2 risks identified as material within the framework of the Group’s risk identification system. In this perspective, capital needs to cover Pillar 1 and Pillar 2 risks are assessed using internal quantitative approaches, supplemented, as necessary, by qualitative approaches and dedicated monitoring frameworks. Capital planning is based on the most recent actual and estimated financial data available at the time. This data is used to project future capital resources and requirements, in particular by taking into account regulatory requirements, factoring in the Group’s goal of maintaining a first-class credit rating to protect its origination capability, its business development targets and anticipated regulatory changes. Capital planning consists in comparing regulatory requirements and the capital ratio targets defined by the Group with future projected capital requirements, then testing their robustness in different scenarios, including stressed macroeconomic environments. Notification of SREP results The results of the SREP process are notified annually to BNP Paribas Executive Management by the ECB. The requirements applying for the year 2024 were notified on 1 December 2024. The SREP decision comprises two items: a requirement known as the “Pillar 2 requirement” (“P2R”), and a non-public guidance called “Pillar 2 guidance” (“P2G”). Following the SREP assessment conducted by the ECB in 2024, the requirements that the Group must meet under Pillar 2 since 1 January 2025 are the following: 1.14% for CET1 capital; 1.44% for Tier 1 capital; 1.84% for total capital. The leverage ratio requirement that the Group must comply with on a consolidated basis since 1 January 2024 is 3.85% (excluding Pillar 2 guidance) including a P2R of 0.10%. Capital requirements The Group’s CET1 ratio, Tier 1 ratio and total capital ratio must at all times satisfy the following requirements corresponding to the limits of applicable distribution restrictions (Maximum Distributable Amount – MDA): the minimum CET1 ratio, Tier 1 ratio and total capital ratio, respectively, in accordance with article 92 (1) points a), b) and c) of the CRR; the Pillar 2 requirement; the combined buffer requirement defined in article 128 (6) of CRD 5, as transposed into the respective national law. ➤TABLE 20: OVERALL CAPITAL REQUIREMENTS 31 December 2024 31 December 2025 CET1: Minimum requirements (Pillar 1) 4.50% 4.50% CET1: Pillar 2 requirement(1) 1.11% 1.14% Combined Buffer Requirement 4.72% 4.81% of which capital conservation buffer 2.50% 2.50% of which G-SIB buffer 1.50% 1.50% of which countercyclical capital buffer(2) 0.67% 0.72% of which systemic capital buffer(3) 0.04% 0.09% OVERALL CET1 CAPITAL REQUIREMENT 10.33% 10.45% Tier 1 (CET1 + AT1): Minimum requirement (Pillar 1) 6.00% 6.00% Tier 1: Pillar 2 requirement(1) 1.40% 1.44% Combined Buffer Requirement 4.72% 4.81% OVERALL TIER 1 CAPITAL REQUIREMENT 12.11% 12.25% Total capital: Tier 1 (CET1 + AT1): Minimum requirement (Pillar 1) 8.00% 8.00% Total capital: Pillar 2 requirement(1) 1.77% 1.84% Combined Buffer Requirement 4.72% 4.81% OVERALL TOTAL CAPITAL REQUIREMENT 14.49% 14.65% Only the Pillar 2 requirement is made public. Since 2020, the P2R has taken into account the application of article 104a of Directive (EU) No 2019/878. Countercyclical capital buffers as at 31 December 2024 and anticipated as at 31 December 2025 take into account the applicable rate increases applicable in 2025 (see Appendix 3: Countercyclical capital buffer and G-SIB buffer. Implementation of a systemic risk buffer in Italy since 31 December 2024 equivalent to 0.5% of credit and counterparty RWA in Italy and 1% from 30 June 2025 (reciprocity measure taken by HCSF on 17 October 2024). The CET1 capital requirement was 10.33% at 31 December 2024 (excluding Pillar 2 guidance), in view of the capital conservation buffer at 2.5%, a G-SIB buffer at 1.5%, a Pillar 2 requirement at 1.11%, the countercyclical buffer at 0.67% and a systemic risk buffer at 0.04%. At 31 December 2024, BNP Paribas’ CET1 ratio stood at 12.87%(4), well above the minimum requirement level applicable in 2024 notified by the European Central Bank. Compared to 31 December 2023, the CET1 ratio had decreased by around 30 basis points as at 31 December 2024, which is mainly explained by: the effect of the full consolidation within the prudential scope sine 1 July 2024 of the entities of Arval business under exclusive control (30 bps); the 2024 results after taking a 60% payout ratio into account, net of the risk-weighted assets intrinsic growth (+30 bps); the optimising of risk-weighted assets linked to the implementation of securitisation and credit insurance programmes (+10 bps); the impact of updating of models and regulations (-25 bps); the redeployment of the proceeds from the sale of Bank of the West (-15 bps). ➤FIGURE 5: MDA RESTRICTION THRESHOLD As a reminder, since 1 January 2022, the Group is subject to a restriction threshold applicable to distributions on the basis of the MREL requirement (M-MDA, see paragraph MREL). This constraint is non-biding because it is higher than the distance to the distribution restriction thresholds. Since 1 January 2023, the Group is subject to a restriction threshold applicable to distributions on the basis of the leverage ratio requirement (L-MDA, see paragraph Leverage ratio). The capital surplus over the thresholds for distribution restriction is the lesser of the four amounts calculated respectively in relation to CET1, Tier 1, total capital and leverage ratio requirements based on exposure. At 31 December 2024, the excess of total capital over the restriction thresholds applicable to distributions was EUR 18.9 billion. BNP Paribas ratios are monitored and managed centrally, on a consolidated basis. Where a French or international entity is required to comply with banking regulations at its own level, its ratios are also monitored and managed directly by the entity (see paragraph Capital management at local level). Requirements applicable to the Insurance business BNP Paribas’ insurance business is governed by Solvency II, the standard for calculating the solvency coverage ratio (Directive 2009/138/EC as transposed into French law). The objective of Solvency II is to: integrate the concepts of risks and risk appetite; harmonise the insurance regulatory regimes across Europe; give more power to supervisory authorities. Solvency II is based on three pillars that aim to: Pillar 1: assess solvency using what is known as an economic capital-based approach; Pillar 2: implement qualitative requirements, i.e. governance and risk management rules that include a forward-looking approach to risk assessment. This assessment is called ORSA (Own Risk & Solvency Assessment); Pillar 3: improve the transparency of the insurance business by making solvency the cornerstone of disclosures to the public and the supervisory authority. The BNP Paribas Cardif group complies with this regulation both in terms of risk management and governance, as well as calculation and reporting. Solvency II-related data as at 31 December 2022 are available in the Solvency and Financial Condition Report (SFCR) for the BNP Paribas Cardif group, published on the institutional website https://www.bnpparibascardif.com/en/financial-informations. Insurance risks are introduced in section 5.10 Insurance risks. Solvency II sets out two capital requirements: the Solvency Capital Requirement (SCR); the Minimum Capital Required (MCR) or, for groups, the SCR Group Minimum. The SCR (Solvency Capital Requirement) is the level of own funds required to absorb a full series of impacts after accounting for the correlation between risks. It is calibrated to cover such an event with a return period of 200 years within a one-year timescale (Value at Risk at 99.5%). The BNP Paribas Cardif SCR is evaluated by means of the standard formula laid down by the regulation. The capital management policy of BNP Paribas Cardif aims notably to ensure that the prudential solvency requirements are met, to cover at least 100% of the SCR defined within the scope of the ORSA assessment and to structure own funds so that the best balance can be found between the share capital, subordinated debt and other own funds elements, complying with the limits and levels laid down by regulations. At 31 December 2023, own funds eligible for the Solvency Capital Requirement stood at EUR 14,900 million. The amount of SCR was EUR 8,122 million and the SCR coverage ratio was 183%. Eligible own funds for the SCR Group Minimum amounted to EUR 10,971 million. The amount of SCR Group Minimum was EUR 3,491 million, and the SCR Group Minimum coverage ratio was 314%. The Solvency report at 31 December 2024 will be published on 20 May 2025. Compliance with the regulation on the additional supervision of financial conglomerates As a bancassurer, the BNP Paribas Group is also subject to additional supervision as a financial conglomerate, pursuant to European Directive 2002/87/EU, supplemented by Delegated Regulation 342/2014 of the European Commission and implemented into French law by the Order of 3 November 2014. The financial conglomerates directive has established additional prudential supervision, added to the rules existing in the banking and insurance sectors, because it has introduced additional constraints on capital adequacy, the monitoring of large exposures, and intragroup transactions. A financial conglomerate is required to meet additional capital adequacy requirements on a consolidated basis. The purpose is to require sufficient capital to cover both banking sector and insurance sector risks, while eliminating multiple gearing. The capital surplus or shortfall results from the difference between the financial conglomerate’s equity capital and the solvency requirements applicable to the banking and insurance industries: the financial conglomerate’s capital is determined based on the sector’s solvency rules (CRR for the banking sector and Solvency II for the insurance sector); the requirements for the financial conglomerate are determined on the basis of banking sector requirements, calculated according to the CRR 2 and CRD 5 rules, including all capital buffers as well as the requirement resulting from the SREP 2023 applicable in 2024, and on the basis of the solvency capital requirement (SCR) for the insurance sector, calculated in accordance with the Solvency II regulation. In calculating the financial conglomerate’s capital adequacy, the requirements and deductions of insurance entities are treated in compliance with Solvency II rules in replacement of the rules defined in the CRR. The latter consist primarily of a 370% weighting of investments in equities treated according to the simple weighting method (see Equities under the simple weighting method in section 5.4 Credit risk). Governance for the prudential supervision of financial conglomerates falls to the Capital Committee, which meets quarterly under the Chairmanship of the Chief Financial Officer. As at 31 December 2024, BNP Paribas Group, as a financial conglomerate, had capital of EUR 142.1 billion compared to a total requirement of EUR 117.3 billion, which represents a capital surplus of EUR 24.8 billion. ➤TABLE 21: FINANCIAL CONGLOMERATES – OWN FUNDS AND CAPITAL ADEQUACY RATIO (EU INS2) a a In millions of euros 31 December 2024 31 December 2023 1 Supplementary own fund requirements of the financial conglomerate (amount) 24,754 29,177 2 Capital adequacy ratio of the financial conglomerate (%) 121.10% 127.80% Recovery and resolution Following the 2008/2009 financial crisis, international banking regulatory bodies adopted a series of regulations and directives based on the recommendations of the Financial Stability Board to facilitate the authorities’ management of crises involving financial institutions and limit the impact of a potential collapse on the economy and public finances. They provide for: powers and instruments for the supervisory authorities to allow for better anticipation and oversight of the recovery of banks in difficulty, particularly by means of recovery plans; powers and instruments for the resolution authorities in order to implement orderly resolution of a bank that would not have been able to recover by itself and would be placed in resolution. This is based among other things on the resolution documents and detailed reports required from banks to enable authorities to prepare resolution plans; the addition of further regulatory requirements for institutions. These requirements, which overlap quite widely, aim to ensure a sufficient quantity of liabilities able to absorb losses or be converted into equity. In particular, they consist of: a TLAC (Total Loss Absorbing Capacity) ratio for Global Systemically Important Banks (G-SIBs), a MREL (Minimum Requirement for own funds and Eligible Liabilities) ratio applicable to all European institutions; bail-in rules for banks, with a review of the ranking of creditors including an additional category of TLAC and MREL eligible debt (non-preferred senior), plus the creation of the Single Resolution Fund, at European level, financed by the banks, with the aim of avoiding any recourse to public assistance. The recommendations of the Financial Stability Board were transposed into French banking law in July 2013, introducing in particular the obligation to create recovery and resolution plans, and giving resolution powers for the ACPR (Autorité de contrôle prudentiel et de résolution). On a European level, Directive 2014/59/EU (BRRD – Bank Recovery and Resolution Directive) was passed in 2014 and has been transposed into the law of all European Union Member States. This directive, as well as Regulation (EU) No. 806/2014 (SRM Regulation – Single Resolution Mechanism Regulation) of 2014 and various additional delegated regulations, form the current regulations governing the recovery and resolution of European financial institutions. Following the European Commission proposal of November 2016, the amendments contained in the BRRD2 and the SRMR2 were approved and published in the Official Journal on 7 June 2019. In France, the transposition of the BRRD2 directives was finalised on 21 December 2020. Recovery Plan The recovery plan, prepared at Group level, describes the possible recovery options if the Group were to find itself in a distressed situation. It contains information needed by the authorities to understand the Group’s operations, resilience and capacity to absorb losses. BNP Paribas submitted its updated Recovery Plan to its supervisor, the ECB, early October 2024. The Single Resolution Board (SRB) and other authorities can obtain the Recovery Plan from the ECB. Prepared in accordance with the Financial Stability Board’s recommendations and the provisions of the French Monetary and Financial Code, this Recovery Plan was submitted to the Board of director’s Internal Control, Risk Management and Compliance Committee (CCIRC) for review and then to the Board of directors for approval (see chapter 2 Corporate governance and internal control). The new version of the Plan includes updated figures and takes account of changes in the Group’s organisation and activities. It is accompanied by a detailed description of tested recovery scenarios and of the identified recovery options. It also takes account the comments of the ECB and the Recovery College’s participating authorities, which met in March 2024, as well as developments in European regulations. It also incorporates lessons learned from dry runs conducted regularly by BNP Paribas on certain aspects of the plan with the participation of the Executive Management and the ECB. This Recovery College, organised under the auspices of the ECB, brings together the authorities of the member countries of the European Union in which BNP Paribas has a presence, as well as the European Banking Authority and the Single Resolution Board. Resolution documentation In 2024, the Group submitted a set of documents to the Autorité de contrôle prudentiel et de résolution (ACPR) to be forwarded to the Single Resolution Board (SRB). These documents contain information needed by the authorities to prepare the plan for the potential resolution of BNP Paribas. Since 2016, the Group provides a series of documents annually. These include an analytical declaration of BNP Paribas SA and its subsidiaries’ liabilities (Liability Data report), required by the SRB to carry out its analyses of the future requirements for liabilities eligible for bail-in, as well as various financial analyses, a presentation on the Group’s organisational structure and analyses of its critical functions and operational continuity in resolution. These statements are in line with the requirements formalised by the EBA (on behalf of the Commission). In 2024, BNP Paribas also took part in a series of working meetings of the SRB, the ACPR and other EU bank resolution authorities, under the auspices of the SRB. The purpose of these meetings is to deepen the SRB’s analyses of the Group’s capacity to deal with a potential resolution. The Crisis Management Group (CMG) and the Resolution College met in January 2025 in view to approve the resolution plan drafted by the SRB. The resolution strategy privileged by the SRB for major institutions such as the Group includes “bail-in” which, in contrast to “bail-out”, involves the absorption of losses through BNP Paribas SA’s internal resources. This implies the cancellation or reduction in the nominal value of a debt and/or its complete or partial conversion into equity. For major centralised banking institutions such as the Group, this resolution strategy is applied at a Single Point of Entry (SPE), i.e. BNP Paribas SA, regardless of where the losses occur within the Group. With regard to the US authorities, the Group presented a resolution plan for its activities in the United States, pursuant to Rule 165(d) of the Dodd-Frank Act in December 2021. The next version of the resolution plan will be submitted by 1 October 2025. TLAC In accordance with Regulation (EU) No. 2019/876, Global Systemically Important Banks (G-SIBs) have been subject to a two-fold TLAC requirement since 27 June 2019. This requirement includes, on the one hand, a minimum ratio expressed as a percentage of the risk‑weighted assets, and, on the other hand, a minimum ratio expressed as a percentage of the leverage ratio exposure. At 31 December 2024, the minimum TLAC requirement for the Group stood at 22.72% of the risk-weighted assets, taking into account: an 18% TLAC minimum requirement; a 4.72% combined buffer requirement, in view of the capital conservation buffer at 2.5%, the G-SIB buffer at 1.5%, the countercyclical capital buffer at 0.67% and a systemic risk buffer at 0.04%. From 1 January 2022, the Group’s minimum TLAC requirement amounts to 6.75% of leverage exposure. ➤TABLE 22: COMPOSITION OF TLAC and MREL RATIOs (EU TLAC1) In millions of euros 31 December 2024 31 December 2023 MREL TLAC Amounts eligible for the purposes of MREL, but not of TLAC TLAC Regulatory capital 1 Common Equity Tier 1 capital (CET1) 98,128 98,128 92,857 2 Additional Tier 1 capital (AT1) 15,640 15,640 14,644 6 Tier 2 capital (Tier 2) 16,813 16,813 14,243 11 Total TLAC eligible capital 130,581 130,581 121,744 Other eligible liabilities 12 Non-preferred senior debt issued directly by the resolution entity (not grandfathered)(1) 74,252 74,252 72,301 EU-12a Non-preferred senior debt issued by other entities within the resolution group (not grandfathered) EU-12b Non-preferred senior debt issued prior to 27 June 2019 (grandfathered) EU-12c Amortised portion of Tier 2 instruments with remaining maturity over one year 3,655 3,655 4,399 13 Preferred senior debt (not grandfathered before application of 3.5% RWA limit) 20,050 Option not applied 20,050 Option not applied EU-13a Preferred senior debt issued prior to 27 June 2019 (grandfathered before application of 3.5% RWA limit) 3,598 Option not applied 3,598 Option not applied 14 Preferred senior debt (after application of the 3.5% RWA limit) 23,648 Option not applied 23,648 Option non applied 17 Eligible liabilities items before adjustments 101,555 77,907 23,648 76,700 EU-17a of which subordinated liabilities items 77,907 77,907 - 76,700 Own funds and eligible liabilities: Adjustments to non-regulatory capital elements 18 Total capital and other eligible liabilities before regulatory adjustments 232,137 208,489 23,648 198,444 19 Deduction of exposures between MPE resolution groups 20 Deduction of investments in other eligible liabilities instruments(2) (447) (447) (363) 22 Total capital and other eligible liabilities after regulatory adjustments 231,690 208,042 23,648 198,082 EU-22a of which own funds and subordinated liabilities 208,042 Risk-weighted assets and leverage ratio total exposure measure 23 Risk-weighted assets (RWAs) 762,247 762,247 703,694 24 Leverage ratio total exposure measure 2,464,334 2,464,334 2,346,500 Own funds and eligible liabilities ratio 25 Own funds and eligible liabilities ratio (percentage of risk-weighted assets) 30.40% 27.29% 3.10% 28.15% EU-25a of which own funds and subordinated liabilities 27.29% 26 Own funds and eligible liabilities RATIO (as a percentage of leverage ratio total exposure measure) 9.40% 8.44% 0.96% 8.44% EU-26a of which own funds or subordinated liabilities 8.44% 27 CET1 (as a percentage of RWAs) available after meeting the resolution group’s requirements 7.26% 7.26% 7.73% 28 Combined buffer requirement 4.71% 4.40% 29 of which capital conservation buffer 2.50% 2.50% 30 of which countercyclical buffer 0.67% 0.40% 31 of which systemic risk buffer 0.04% 0.00% EU-31a of which G-SIB or D-SIB buffers 1.50% 1.50% Memorandum items EU-32 Total amount of excluded liabilities referred to in article 72a(2) of Regulation (EU) No. 575/2013 1,709,452 1,685,403 Outstanding principal amount. This line includes the deduction of the unused portion of the general prior permission to reduce the eligible liabilities. At 31 December 2024, the Group’s TLAC ratio broadly exceeded the applicable minimum level of requirement. This ratio stood at 27.29% of risk-weighted assets, without using senior preferred debt, which are eligible up to a limit of 3.5% of risk-weighted assets. It amounted to 8.44% of total (leverage) exposure measure. The debt issuance targets aiming at satisfying these requirements and their nature are described in the section Wholesale funding trends based on regulatory changes in section 5.8 Liquidity risk. ➤TABLE 23: CREDITOR RANKING OF THE RESOLUTION ENTITY BNP PARIBAS SA(1) (EU TLAC3) In millions of euros 31 December 2024 Insolvency ranking(2) 1 2 12(3) 3 5 6 TOTAL 1 Description of insolvency ranking CET1 capital(4) AT1 capital(4) Participating notes T2 capital – subordinated debt(4) Non-preferred senior debt Preferred senior debt(6) 2 Regulatory capital instruments and liabilities(5) 120,534 15,980 229 27,025 79,680 784,465 1,027,912 3 of which excluded liabilities(5) 689,868 689,868 4 Non-excluded regulatory capital instruments and liabilities(5) 120,534 15,980 229 27,025 79,680 94,597 338,043 5 of which instruments eligible for the TLAC ratio 120,534 15,794 23,928 74,252 23,648 258,157 6 of which residual maturity ≥ 1 year and < 2 years 2,982 6,943 1,899 11,823 7 of which residual maturity ≥ 2 years and < 5 years 2,968 33,560 10,270 46,797 8 of which residual maturity ≥ 5 years and < 10 years 11,927 24,288 8,941 45,156 9 of which residual maturity ≥ 10 years (excluding perpetual) 6,052 9,462 2,539 18,052 10 of which perpetual instruments 120,534 15,794 136,328 The data presented correspond to the scope of the resolution entity, BNP Paribas SA. The Appendix on insolvency ranking in the jurisdictions of the Banking Union published by the Single Resolution Board was updated on 27 August 2024 for France, implying a ranking change of non-preferred senior debt from 7 to 5 and prefered senior debt from 8 to 6. According to the Appendix on insolvency ranking, participating notes are classified in ranking 4. The ranking clauses of BNP Paribas SA's deeply subordinated notes (AT1) indicate these notes are immediatly subordinated to participating notes. In accordance with the specific instructions of the ACPR, these participating notes are presented between the ranks 2 and 3, at rank 12. Amounts before regulatory adjustments. For debt instruments, principal amount and accrued interest. With the implementation of the MREL requirement, prefered senior debt are included in this table as from 1 January 2024. In millions of euros 31 December 2023 Insolvency ranking 1 2 4(2) 3 7 8 TOTAL 1 Description of insolvency ranking CET1 capital(3) AT1 capital(3) Participating notes T2 capital – subordinated debt(3) Non-preferred senior debt 2 Regulatory capital instruments and debt instruments(4) 116,227 14,823 228 22,936 80,969 235,184 3 of which excluded instruments(4) 4 Non-excluded regulatory capital instruments and debt instruments(4) 116,227 14,823 228 22,936 80,969 235,184 5 of which instruments eligible for the TLAC ratio 116,227 14,823 21,392 72,301 224,743 6 of which residual maturity ≥ 1 year and < 2 years 2,850 7,510 10,361 7 of which residual maturity ≥ 2 years and < 5 years 5,565 30,558 36,123 8 of which residual maturity ≥ 5 years and < 10 years 9,420 26,259 35,679 9 of which residual maturity ≥ 10 years (excluding perpetual) 3,557 7,973 11,530 10 of which perpetual instruments 116,227 14,823 131,050 The data presented correspond to the scope of the resolution entity, BNP Paribas SA. According to the Appendix on the insolvency ranking in the jurisdictions of the Banking Union published by the Single Resolution Board, participating notes are classified in rank 4. However, the ranking clauses of BNP Paribas SA’s deeply subordinated notes (AT1) indicate that these notes are immediatly subordinated to participating notes. The participating notes are thus presented between ranks 2 and 3. Amounts before regulatory adjustments. For debt instruments, principal amount and accrued interest. MREL The total Minimum Requirement for own funds and Eligible Liabilities (MREL) applies to all European Union credit institutions and investment firms from 1 January 2024. At 31 December 2024, the Group exceeded the MREL requirement and the distance above the minimum requirement (“M-MDA”) was greater than the distance applicable to the distribution restriction thresholds (“MDA”) calculated in relation to the capital requirements (see paragraph Overall capital requirements). At 31 December 2024 : the Group’s MREL ratio stood at 30.40% of risk-weighted assets. The Group was thus above the minimum requirement level of 27.36%; the Group’s MREL ratio stood at 9.40% of leverage exposures. This ratio is to be compared to a minimum requirement of 5.91%; the Group’s subordinated MREL ratio stood at 27.29% of risk-weighted assets, compared to a minimum requirement of 19.24%; the Group’s MREL ratio stood at 8.44% of leverage exposures, compared to a minimum requirement of 5.86%. Changes in regulations BNP Paribas closely tracks the regulatory developments relating to banks recovery and resolution. Further to the Eurogroup statement of June 2022(5) that required a targeted review of the Crisis Management and Deposit Insurance (CMDI) framework (BRRD, SRMR and DGSD), the Commission published a proposal on 18 April 2023. The European Parliament defined its position in April 2024 and the Council in June 2024. The trilogue started in December 2024. At this stage, the legislative process is expected to be completed in 2025 or 2026. BNP Paribas is closely following this process. Leverage ratio The leverage ratio’s main objective is to serve as a complementary measure to the risk-based capital requirements (back-stop principle). It is calculated as the ratio between Tier 1 capital and an exposure measure calculated using on- and off-balance sheet commitments valued using a prudential approach. In particular, derivatives and repurchase agreements are also adjusted. At European level, the leverage ratio requirement is applied gradually in accordance with the provisions contained in the CRR: up to 28 June 2021, the leverage ratio was the subject of a statement submitted to the ECB and a disclosure requirement under Pillar 3; from 29 June 2021 to 31 December 2022, institutions were subject to a minimum leverage ratio requirement of 3%; From 1 January to 31 December 2023, the leverage ratio requirement stood at 3.75%. Global Systemically Important Banks (G-SIBs) are subject to an additional leverage requirement of 50% of the institution’s G-SIB buffer (see paragraph Capital adequacy) and a new distribution threshold applying to the leverage ratio. The distance applicable to the distribution restriction thresholds (“L-MDA”) is calculated in relation to the capital requirements (see paragraph Overall capital requirements). Since 1 January 2024, the leverage ratio requirement stood at 3.85%, including a P2R of 0.10%. Processes used to manage the risk of excessive leverage Monitoring of the leverage ratio is one of the responsibilities of the Capital Committee (as described in the section Capital management hereafter). Factors that had an impact on the leverage ratio during the period to which the disclosed leverage ratio refers The leverage ratio stood at 4.6% at 31 December 2024, stable compared to 4.58% at 31 December 2023. It was well above the 3.85% leverage requirement applicable since 1 January 2024. ➤TABLE 24: LEVERAGE RATIO – ITEMISED ➤Summary reconciliation of accounting assets and leverage ratio exposures (EU LR1) a In millions of euros 31 December 2024 31 December 2023 1 Total assets as per published financial statements 2,704,908 2,591,499 2 Adjustment for entities which are consolidated for accounting purposes but are outside the scope of regulatory consolidation (272,085) (257,275) 3 (Adjustment for securitised exposures that meet the operational requirements for the recognition of risk transference) (3,477) (4,003) 4 (Adjustment for temporary exemption of exposures to central bank (if applicable)) 5 (Adjustment for fiduciary assets recognised on the balance sheet pursuant to the applicable accounting framework but excluded from the leverage ratio total exposure measure in accordance with point (i) of article 429a(1) CRR) 6 Adjustment for regular-way purchases and sales of financial assets subject to trade date accounting 7 Adjustment for eligible cash pooling transactions 8 Adjustments for derivative financial instruments (94,524) (100,967) 9 Adjustment for securities financing transactions (SFTs)(1) 23,513 21,586 10 Adjustment for off-balance sheet items (i.e. conversion to credit equivalent amounts of off-balance sheet exposures) 223,239 207,680 11 (Adjustment for prudent valuation adjustments and specific and general provisions which have reduced Tier 1 capital) (2,464) (2,472) 11a (Adjustment for exposures excluded from the leverage ratio total exposure measure in accordance with point (c) of article 429a(1) CRR) 11b (Adjustment for exposures excluded from the leverage ratio total exposure measure in accordance with point (j) of article 429a(1) CRR) (18,187) (16,703) 12 Other adjustments (96,587) (92,846) 13 LEVERAGE RATIO TOTAL EXPOSURE MEASURE 2,464,334 2,346,500 Securities Financing Transactions: repurchase agreements and securities borrowing/lending. ➤Leverage ratio common disclosure (EU LR2) a b In millions of euros 31 December 2024 31 December 2023 On-balance sheet exposures (excluding derivatives and SFTs(1)) 1 On-balance sheet items (excluding derivatives, SFTs(1), but including collateral) 1,833,082 1,763,655 2 Gross-up for derivatives collateral provided where deducted from the balance sheet assets pursuant to the applicable accounting framework 3 (Deductions of receivables assets for cash variation margin provided in derivatives transactions) (44,233) (40,530) 4 (Adjustment for securities received under securities financing transactions that are recognised as an asset) 5 (General credit risk adjustments to on-balance sheet items) 6 (Asset amounts deducted in determining Tier 1 capital) (14,587) (14,368) 7 Total on-balance sheet exposures (excluding derivatives and SFTs(1)) 1,774,262 1,708,757 Derivative exposures 8 Replacement cost associated with SA-CCR derivatives transactions (i.e. net of eligible cash variation margin) 66,126 58,593 8a Derogation for derivatives: replacement costs contribution under the simplified standardised approach 9 Add-on amounts for potential future exposure associated with SA-CCR derivatives transactions 156,722 133,250 9a Derogation for derivatives: Potential future exposure contribution under the simplified standardised approach 9b Exposure determined under Original Exposure Method 10 (Exempted CCP leg of client-cleared trade exposures) (SA-CCR) (1,721) (1,309) 10a (Exempted CCP leg of client-cleared trade exposures) (simplified standardised approach) 10b (Exempted CCP leg of client-cleared trade exposures) (original exposure method) 11 Adjusted effective notional amount of written credit derivatives 451,280 404,326 12 (Adjusted effective notional offsets and add-on deductions for written credit derivatives) (422,670) (381,259) 13 Total derivatives exposures 249,737 213,601 Securities financing transaction (SFT) exposures(1) 14 Gross SFT(1) assets (with no recognition of netting), after adjustment for sales accounting transactions 426,748 457,137 15 (Netted amounts of cash payables and cash receivables of gross SFT(1) assets) (204,170) (235,392) 16 Counterparty credit risk exposure for SFT(1) assets 23,261 21,505 16a Derogation for SFTs(1): Counterparty credit risk exposure in accordance with articles 429e(5) and 222 CRR 17 Agent transaction exposures 251 81 17a (Exempted CCP leg of client-cleared SFT exposure) 18 Total securities financing transaction exposures 246,090 243,331 Other off-balance sheet exposures 19 Off-balance sheet exposures at gross notional amount 527,051 498,249 20 (Adjustments for conversion to credit equivalent amounts) (303,812) (290,569) 21 (General provisions deducted in determining Tier 1 capital and specific provisions associated with off-balance sheet exposures) (524) (655) 22 Off-balance sheet exposures 222,715 207,026 Excluded exposures 22a (Exposures excluded from the leverage ratio total exposure measure in accordance with point (c) of article 429a(1) CRR) 22b (Exposures exempted in accordance with point (j) of article 429a(1) CRR (on and off-balance sheet)) (18,187) (16,703) 22c (Excluded exposures of public development banks – Public sector investments) 22d (Excluded exposures of public development banks (or units) – Promotional Loans) 22e (Excluded passing-through promotional loan exposures by non-public development banks (or units)) 22f (Excluded guaranteed parts of exposures arising from export credits) (10,282) (9,512) 22g (Excluded excess collateral deposited at triparty agents) 22h (Excluded CSD related services of CSD/institutions in accordance with point (o) of article 429a(1) CRR) 22i (Excluded CSD related services of designated institutions in accordance with point (p) of article 429a(1) CRR) 22j (Reduction of the exposure value of pre-financing or intermediate loans) 22k (Total exempted exposures) (28,469) (26,215) Capital and total exposure measure 23 Tier 1 capital 113,768 107,501 24 Leverage ratio total exposure measure 2,464,334 2,346,500 25 LEVERAGE RATIO 4.62% 4.58% EU-25 Leverage ratio (without the adjustment due to excluded exposures of public development banks – Public sector investments) (%) 4.62% 4.58% 25a Leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves) (%) 4.62% 4.58% Leverage requirement 26 Regulatory minimum leverage ratio requirement (%) 3.00% 3.00% 26a Additional leverage ratio requirements (%) 0.10% 0.00% 26b of which: to be made up of CET1 capital 0.00% 0.00% 27 Leverage ratio buffer requirement (%) 0.75% 0.75% 27a Overall leverage ratio requirement (%) 3.85% 3.75% Choice on transitional arrangements and relevant exposures EU-27b Choice on transitional arrangements for the definition of the capital measure Transitional Transitional Disclosure of mean values 28 Mean of daily values of gross SFT(1) assets, after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivable 291,830 294,819 29 Quarter-end value of gross SFT(1) assets, after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables 222,577 221,745 30 Total exposure measure (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT(1) assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 2,533,587 2,419,574 30a Total exposure measure (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT(1) assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 2,533,587 2,419,574 31 Leverage ratio (including the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT(1) assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 4.49% 4.44% 31a Leverage ratio (excluding the impact of any applicable temporary exemption of central bank reserves) incorporating mean values from row 28 of gross SFT(1) assets (after adjustment for sale accounting transactions and netted of amounts of associated cash payables and cash receivables) 4.49% 4.44% Securities Financing Transactions: repurchase agreements and securities lending/borrowing operations. ➤Split of on-balance sheet exposures (excluding derivatives, SFTs(1) and exempted exposures) (EU LR3) a In millions of euros 31 December 2024 31 December 2023 EU-1 Total on-balance sheet exposures (excluding derivatives, SFTs(1), and exempted exposures), of which: 1,760,379 1,696,910 EU-2 Trading book exposures 264,827 211,023 EU-3 Banking book exposures, of which: 1,495,552 1,485,887 EU-4 Covered bonds EU-5 Exposures treated as sovereigns 369,409 442,944 EU-6 Exposures to regional governments, MDB, international organisations and PSE not treated as sovereigns 46,161 37,386 EU-7 Institutions 33,602 27,376 EU-8 Secured by mortgages of immovable properties 188,102 184,067 EU-9 Retail exposures 230,845 228,618 EU-10 Corporate 360,462 355,974 EU-11 Exposures in default 13,333 13,369 EU-12 Other exposures (e.g. equity, securitisations, and other non-credit obligation assets) 253,638 196,154 Securities Financing Transactions: repurchase agreements and securities borrowing/lending Pursuant to article R.511-16-1 of French Monetary and Financial Code, BNP Paribas’ asset yield (i.e. net accounting income divided by the total balance sheet on a consolidated basis) was 0.43% in 2024 compared to 0.42% in 2023. Capital management [Audited] To ensure the Group’s sustainability, the Bank must maintain an adequate level of capital with respect to the risks to which it is exposed in the course of its activities and strategy. Capital is a rare and strategic resource, which requires stringent, clearly defined, rigorous management according to an approach, which takes account of the needs and demands of stakeholders, including shareholders, supervisors, creditors and depositors. Objectives BNP Paribas’ capital management: is governed by policies and procedures which make it possible to understand, document and supervise capital management practices throughout the Bank; takes risk measurement into account to determine the use of the capital; considers capital requirements and resources under normal operating conditions, as well as under situations of severe, but plausible stress; presents a forward-looking vision of the Bank’s capital adequacy to the Executive Management; allocates the capital constraint to the business lines in keeping with their strategic objectives; complies with the Internal Capital Adequacy Assessment Process (ICAAP) and is consistent with the Risk Appetite Framework; is monitored by an appropriate governance. Capital management at central level BNP Paribas’ capital management aims to ensure and verify that the Group has adequate capital to comply with the regulatory capital ratios, as well as specific requirements, for instance to operate as a Global Systemically Important Bank. To ensure its capital adequacy, the Group abides by the following principles: maintaining the capital at an appropriate level in view of BNP Paribas’ activities, risk appetite, growth and strategic initiatives; maintaining BNP Paribas’ capital at a level which complies with regulatory requirements; keeping a balance between capital adequacy and return on capital; meeting its obligations to creditors and counterparties, at each due date; continuing to operate as a financial intermediary. Governance The governance of the development, approval and update of the capital planning process is handled by two committees: the Risk-Weighted Assets Committee: it is jointly chaired by the Chief Financial Officer and the Chief Risk Officer, and comprises the operational divisions’ Chief Financial Officers and Chief Risk Officers. The committee meets quarterly to examine forecasts of the Group’s risk-weighted assets in the context of the budget cycle and updating of its estimates. The Risk-Weighted Assets Committee is tasked with: monitoring and discussing the forecasts of the Group’s risk-weighted assets for each business line, identifying the main assumptions underlying these forecasts and checking their accuracy, identifying any evolution factors and quantifying their impacts, proposing adjustments if required; the Capital Committee: it meets at least quarterly and is chaired by the Group Chief Financial Officer. The committee’s mission is to validate the Group’s targets in terms of solvency ratios and loss absorbing capacity requirements in case of resolution (TLAC and MREL) as well as the trajectory to achieve these targets; monitor compliance with this trajectory; and, where necessary, propose corrective measures, consistent with the Group’s Risk Appetite Statement. The committee ensures, in this respect, internal capital adequacy is taken into account in the ICAAP as well as in the results of the global stress tests processes. The Capital Committee is tasked with: monitoring, validating and anticipating changes in the business lines’ risk-weighted assets as well as changes in the Group’s prudential ratios, in central scenario and adverse scenario, and monitoring these indicators relative to the Group’s Risk Appetite, which is stated in the Risk Appetite Statement. This includes solvency ratios, leverage ratio, TLAC/MREL ratios, capital adequacy of the financial conglomerate, etc., identifying any evolution factors and quantifying their impacts, defining trends in short and medium terms capital consumption (at least 3 years) and proposing or reporting the ensuing arbitrages to the Group’s Executive Committee, monitoring internal capital adequacy as part of the ICAAP, monitoring potential regulatory changes, monitoring the sensitivity of the CET1 ratio to changes in exchange rates, validating management buffers applicable to the aforementioned ratios, monitoring the impacts of global stress test results, monitoring the implementation of the supervisor’s decisions that have an impact on the Group’s solvency ratio or the amount of its risk-weighted assets. The Capital Committee is also the Group’s competent Executive Management authority for all issues related to the internal credit and operational risk model and the methodologies used in the ICAAP. Monitoring indicators Capital management at the consolidated level rests on the following indicators: the solvency ratios: BNP Paribas uses the CET1 ratio as its main internal capital management indicator; risk-weighted assets: The risk-weighted assets are calculated per business line and per type of risk. The change in risk-weighted assets is analysed per type of effect (in particular: volume effect, parameters effect, perimeter effect, currency effect and method effect); the leverage ratio: It reports the amount of Tier 1 capital to a measure of both on- and off-balance sheet exposures using a prudential approach. In particular, derivatives and repurchase agreements are adjusted; notional equity: The capital allocation transfers the capital constraints to all Group divisions and thus represents a major constraint concerning the Group’s development and management. The evaluation of the business lines’ performance includes the analysis of their pre-tax Return On Notional Equity (RONE) indicators. The equity component of this ratio is the notional equity, which corresponds to the business lines’ consumption of capital. This management rests on two major processes which are closely linked: a detailed quarterly analysis of actual capital consumption by divisions/business lines and of the Group’s solvency ratios, as well as quarterly forecasts of these indicators throughout the year; the yearly budget process, which plays a central role in the strategic planning process. Capital management at local level The Group has to allocate available capital among its different entities. To ensure a free and efficient flow of capital throughout the Group, the capital allocation process within the Group is centralised at head office level. It is mainly based on two principles: compliance with local regulatory requirements and analysis of the local business needs of the entity and growth prospects. In line with these two principles, the aim is to minimise capital dispersion. Local Chief Financial Officers are responsible for the daily management and reporting of their subsidiaries’ capital requirements. When a capital need arises, it is analysed on a case-by-case basis by dedicated teams at Group level, taking into consideration the subsidiary’s present position, its future strategy as well as the Group’s one in the relevant country, the entity’s growth prospects and the macroeconomic environment. Furthermore, each year, the Group manages the subsidiaries’ earnings repatriation process. The Group general policy stipulates that the entire distributable profit of every entity, including retained earnings, must be paid out. This policy ensures that the capital remains centralised at the BNP Paribas SA level and also contributes to reducing the foreign exchange risk. Exceptions are considered on a case-by-case basis. Local Chief Executive Officers are responsible for ensuring the subsidiary’s ongoing financial viability and competitiveness in terms of capital, where relevant. However, any capital action requested by a subsidiary is assessed by and subject to authorisation from head office. In addition, every year the Group examines the branches’ capital allocations in order to maintain an adequate level of capital in light of the different regulations. 5.3Risk management [Audited] Governance The specialised committees of the Board of directors (see part 2.1.2, Corporate governance of BNP Paribas of chapter 2 Corporate governance and internal control), which examine the risks taken and the risk policies on a Group scale, are: the Internal control, risk management and compliance Committee (CCIRC); the Joint Committee that combines the CCIRC and the Financial Statements Committee; the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN). In line with the Group’s Risk Appetite Statement, Executive Management provides broad guidelines for risk management through Group-level governance bodies of which the main ones are shown in the diagram below: ➤Figure 6: Overview of Group level governing bodies covering risk-related topics Main Group-level governance bodies have the following roles: Capital Committee, described under Capital management in section 5.2 Capital management and capital adequacy, validates the Group’s objectives in terms of solvency ratios and Total Loss Absorbing Capacity (TLAC and MREL) requirements in case of resolution as well as the trajectory to achieve these targets, monitors the compliance with this trajectory and, when relevant, proposes corrective actions to achieve target solvency ratios. As the Group’s competent Executive Management authority for all issues related to the internal credit and operational risks model, the Capital Committee is informed of decisions made in the MARCo Committees (Model Approval and Review Committee); Group ALM Treasury Committee (Group ALCo) is responsible for the management of the liquidity risk, interest rate risk in the banking book and structural foreign exchange risk over the whole Group; Group Supervision and Control Committee (GSCC) brings together the Group’s control functions at Executive Management level and takes a Group-wide approach to tackling all aspects of risk exposure; Acquisitions Committee decides on acquisitions, disposals and external partnerships for operations under its jurisdiction as part of the Group’s general investment approval procedure. The Acquisitions Committee reviews the strategic relevance of the proposed projects from the Group’s point of view, as well as the various components of the business plans, including synergies and execution risks. In particular, it ensures the intrinsic profitability of projects (measured by Return on Investment), as well as the impact on the Group’s solvency, liquidity and profitability, and their adequacy with the Group’s Risk Appetite Statement; the Sustainable Finance Strategic Committee (SFSC) aims to validate the Group’s sustainable finance strategy and commitments in this area. It approves the overall strategy in terms of sustainable finance, decides the main focuses of sustainable finance commercial policies and monitors their operational implementation. Where necessary, it also validates cross-functional infrastructure choices ensuring expertise and consistency in the implementation of regulatory requirements and the Group’s commitments in methods, analyses, risk management, data, tools, standards and reporting related to sustainable finance; the General Management Credit Committee (CCDG) is the Group’s highest authority concerning credit and counterparty risks. This committee decides primarily on credit requests exceeding the amount of individual delegations attributed to divisions and business lines or relating to transactions of a specific nature or which would deviate from the principles of the General Credit Policy. A Compliance representative may attend CCDG meetings when an opinion on financial security is needed; the General Management Doubtful Committee (CDDG) is the Group’s highest level decision-making committee in terms of specific provisioning and recognitions of losses relative to the Group’s customer exposures; the Financial Markets Risk Committee (FMRC) is the body which governs the Group’s risk profile of the capital markets activities; its tasks include, among others, analysing market and counterparty risks and setting limits for capital markets activities; the Risk & Development Policy Committees (RDPC) have the dual objective of defining an appropriate risk policy for any given subject which may be a business activity, a product, a geographic area (region or country), a customer segment or economic sector, and of investigating development opportunities in relation to the subject in question; the Country Strategic RDPCs define the Group’s risk appetite by setting country envelopes for medium-to-high-risk countries considering country risk, market conditions, business strategies as well as other topics such as those related to compliance or climate risk; the Group IT Risk Committee (GITRC) defines and oversees the Group’s IT risk profile. This is the highest authority in terms of technological and cybersecurity risk management. Risk management organisation Position of the control functions Risk management is central to the banking business and is one of the cornerstones of operations for the BNP Paribas Group. BNP Paribas has an internal control system covering all types of risks to which the Group may be exposed, organised around three lines of defence (see section 2.4 Internal Control in chapter 2 Corporate governance and internal control): as the first line of defence, internal control is the business of every employee, and the heads of the operational activities are responsible for establishing and running a system for identifying, assessing and managing risks according to the standards defined by the functions exercising an independent control in respect of the second line of defence; the main control functions within BNP Paribas ensuring the second line of defence are the Compliance, RISK and LEGAL Functions. Their Heads report directly to Chief Executive Officer and account for the performance of their missions to the Board of directors via its specialised committees; General Inspection provides a third line of defence. It is responsible for periodic control. General responsibilities of the Risk and Compliance Functions Responsibility for managing risks primarily lies with the divisions and business lines that are at the origin of the underlying transactions. RISK continuously performs a second-line control over credit and counterparty risks, market risk, interest rate and foreign exchange rate risks on the banking book, liquidity risks, insurance risks, and operational risk, including technological and cybersecurity risks, over data protection risks, modelling risks and environmental and social risk factors, as well as the associated governance risks. As part of this role, it must ascertain the soundness and sustainability of the business commercial developments and their overall alignment with the risk appetite target set by the Group. RISK’s remit includes formulating recommendations on risk policies, analysing the risk portfolio on a forward-looking basis, approving customers loans and trading limits, guaranteeing the quality and effectiveness of monitoring procedures, controlling the maturity of the processes and underlying operational risks and defining or validating risk measurement methods. RISK is also responsible for ensuring that all the risk implications of new businesses or products have been adequately assessed. Compliance deals identically with risks related to financial security (money laundering, terrorist financing, corruption and influence peddling), market integrity, protection of clients, professional ethics, tax regulations applicable to customers and laws governing banking activities. Its mission is to provide, through its opinions and decisions, as well as through its supervision and second level-controls, a reasonable assurance as to the effectiveness and consistency of the compliance system over operations and the protection of its reputation. Organisation of the Risk and Compliance Functions Approach The RISK organisation fully complies with the principles of independence, vertical integration, and decentralisation issued by the Group’s Management for the Group’s main control functions (Compliance, RISK, LEGAL, and a third line of defence, General Inspection). Hence within RISK: all the teams in charge of risks, including those in operating entities have been integrated in the function with reporting lines to the Chief Risk Officers of these entities; the Chief Risk Officers of the entities report to RISK. This organisation enables the governance of risk management activities to be strengthened, especially regarding model risk management, through RISK Independent Review and Control (RISK IRC) team, reporting directly to the Chief Risk Officer (CRO) which groups together the teams in charge of the independent review of the risk methodologies and models. This team is also in charge of the independent review of operational risk of RISK Function, with the organisation described in section 5.9 Operational risk. In accordance with international standards and French regulations, Compliance manages the system for monitoring compliance and reputation risks for all of the Group’s businesses in France and abroad. The system for monitoring non-compliance and reputation risks is described in section 5.9. Independent and hierarchically integrated on a global basis, Compliance brings together all employees reporting to the function. Its organisation is based on its guiding principles (independence, integration, decentralisation and subsidiarity of the function, dialogue with the business lines) through local teams (operating divisions, CPBS, IPS and CIB), areas of expertise, and departments in charge of transverse missions. Role of the Chief Risk Officer In order to fulfil its missions and in compliance with regulations as well as with the banking industry best practices, RISK is an independent, hierarchically integrated and decentralised function. The Group CRO is appointed by the “Dirigeant Effectif” in charge of the consistency and efficiency of the permanent control of BNP Paribas, who notifies the Board of directors accordingly. This “Dirigeant Effectif” can also remove the Group CRO, after the prior approval of the Board, to which the latter has direct access. The Group CRO receives his/her authority from this “Dirigeant Effectif” and reports to him/her directly. He/she is a member of the Group Executive Committee. Where necessary, the Group CRO also has direct and independent access to the Board of directors of BNP Paribas (notably to the relevant specialised committees). In particular, the CCIRC holds hearings of the Group CRO on a periodic basis, without the presence of the “Dirigeants Effectifs”. This positioning serves the following purposes: ensuring the objectivity of risk control, by removing any involvement in commercial relationships; making sure senior management is warned of any material deterioration in risk and is rapidly provided with objective and comprehensive information on the status of risks; enabling the dissemination, throughout the Bank, of high and uniform risk management standards and practices; ensuring the quality of risk assessment methods and procedures by calling on professional risk managers in charge of evaluating and enhancing these methods and procedures in light of the best practices implemented by international competitors. Role of the Chief Compliance Officer The Chief Compliance Officer reports to the Chief Executive Officer and is a member of the BNP Paribas Executive Committee. She has direct and independent access to the Board of directors and in particular to its specialised committee, the Internal Control, Risk Management and Compliance Committee (CCIRC), and can thus inform it of any event likely to have a significant impact on the Group. Lastly, the CCIRC periodically interviews her, without the executive officers being present. The Chief Compliance Officer has no operational activity outside of the non-compliance and reputation risk management framework and no commercial activity, which guarantees her independence of action. She exercises hierarchical supervision over all the Compliance teams within the various business units, geographical areas and functions. Risk culture One of the Group’s core founding principles A strong and comprehensive risk and compliance culture is deeply rooted in BNP Paribas Group’s core values and operational principles. Executive Management has chosen to include the risk culture in three of its key corporate culture documents: Code of conduct: The Group adopted a new Code of conduct in 2016. It applies to all employees and defines the rules for our conduct in line with the core values of our corporate culture. For example, employees are reminded in the Code of conduct that the Group’s interests are protected by responsible risk-taking in a strict control environment. The Code of conduct, updated in 2021, also includes rules for protecting customers’ interests, financial security, market integrity, professional ethics and anti-bribery and corruption, which all play an important role in mitigating non-compliance and reputation risks; Responsibility Charter: Executive Management drew up a formal Responsibility Charter, inspired by the Group’s core values (the “BNP Paribas Way”), management principles and Code of conduct. One of the four commitments is “Being prepared to take risks, while ensuring close risk control”. The Group sees rigorous risk control as part of its responsibility, both to clients and to the financial system as a whole. The Bank’s decisions on the commitments it makes are reached after a rigorous and concerted process, based on a strong, shared risk culture which pervades all levels of the Group. This is true both for risks linked to lending activities, where loans are granted only after in-depth analysis of the borrower’s situation and the project to be financed, and for market risks arising from transactions with clients – these are assessed on a daily basis, tested against stress scenarios, and subject to limits. As a strongly diversified Group, both in terms of geography and businesses, BNP Paribas is able to balance risks and their consequences as they materialise. The Group is organised and managed in such a way that any difficulties arising in one business area will not jeopardise another in the Bank; the Group’s mission and commitments: The mission of BNP Paribas is to finance the economy and advise its clients, by supporting them with their projects, their investments, and the management of their savings, guided by strong ethical principles. Through these activities, BNP Paribas wants to have a positive impact on stakeholders and on society, and be one of the most trustworthy players in the sector. BNP Paribas’ 12 commitments as a Responsible Bank include in particular the commitment to apply the highest ethical standards and rigorously manage environmental, social, and governance risks (see section 7.2 Economic Responsibility: financing the economy in an ethical manner). Spreading the risk culture A culture of robust risk management and control has always been one of BNP Paribas’ top priorities and is an integral part of the Bank’s principles. In addition to the various training programmes in support of this ambition, numerous awareness and acculturation initiatives are conducted at global and local level within different entities. These include some programmes aimed at sharing risk management advancements with a broad audience of employees presented directly by Group experts, for example: cyber risks, operational risks, credit and counterparty risks, ESG-related risks, legal risks. Also, Risk Culture, a Group-wide initiative, aims to reinforce the dissemination of the best practices in risk management by giving it a transversal dimension that addresses all the Group’s employees. Sponsored by four functions: Compliance, LEGAL, Human Resources (HR), and RISK, Risk Culture is designed for the benefit of all staff and intervenes on all types of risks to which the Group may be exposed (credit, market, liquidity, operational, non-compliance, regulatory, environmental and social risks, etc.). Taking an adaptive and participatory approach, this initiative supports the business lines and functions in their risk awareness promotion efforts, for example in transformation projects or when onboarding new employees. By leveraging the information already shared by the entities, Risk Culture aims to make essential concepts accessible to as many employees as possible and pays close attention to ensure that conduct and behaviour requirements are well integrated into this exercise of knowledge transmission. It provides teams with contents that they can use for their information and acculturation endeavours to enhance employees’ skills in all aspects of the risk culture. In conjunction with operating entities, Risk Culture actions mainly consist of: ensuring the dissemination of information and professional development in the area of risk management, by means of conferences and the publication of educational articles or videos; facilitating the sharing of knowledge between the various players in the Bank, in particular changes in the Bank’s business lines, news on regulatory requirements and new ways of working. The experts of the Group are invited to expand documentary resources which can be accessed by employees through various communication channels available within the Group; relaying, if necessary by adapting from one entity to another, actions to raise awareness of good risk practices carried out on the initiative of other entities. In all its initiatives, Risk Culture promotes the six fundamental risk management practices that are key to developing a robust risk culture. They serve as a reminder to staff about the importance of clearly understanding and anticipating risks with a long-term perspective, being disciplined with risks taken and reporting swiftly and transparently on risk management. Lastly, the risk culture is also spread throughout the Group by linking compensation to performance and risk (see chapter 7, section 7.3 A competitive compensation policy), under a system that was strengthened in this area since 2015 for those employees whose decisions entail a significant risk component. Risk Appetite Definition and objectives The Group does not have a specific risk appetite target, but some risks are inherent to its business and therefore to the achievement of its strategic objectives. It has prepared a Risk Appetite Statement and Risk Appetite Framework, which should be seen as the Group’s formal statement of its tolerance to the risks to which it is exposed as it implements its strategy. The Risk Appetite Statement is approved on a yearly basis, or more frequently if necessary, by the Board of directors on the proposal of Executive Management. Consistent with the Group’s strategy and in light of the environment in which it operates, this document sets out the qualitative risk principles it intends to follow in its business activities, as well as a quantitative mechanism for supervising the Group’s risk profile indicators through quantitative metrics and thresholds. This system covers both the quantifiable and non-quantifiable risks to which it is exposed. The Group’s risk appetite is determined by Executive Management, during various committees it chairs (CCDG, FMRC, Group ALCo, Capital Committee), which are tasked with managing the Group’s different types of risk exposure. The Group’s strategic processes, such as budget, capital and liquidity management, are in line with the Risk Appetite Statement. Certain Risk Appetite Statement indicators are included in the budget exercise and their expected values in the budget are cross-checked against the thresholds in the Risk Appetite Statement. The Group’s Risk Appetite Statement reflects the core values of its risk culture. It states that the Group’s risk culture and its commitments as a responsible bank are at the heart of its strategy. The statement reaffirms the Group’s mission: to finance the economy, advise its clients and help to finance their projects, guided by strong ethical principles. The Group’s strategy underpinning its risk appetite is founded on the core principles that have guided its development: a balance between business activities to deliver profitability and stability, a customer-focused business model and an integrated banking model to optimise services to the latter. This strategy also factors developments in the banking industry, including the trend towards a digital model, and a macroeconomic situation marked by still high interest rates, in a context of particularly critical geopolitical risk, while certain sectors of the economy show higher levels of risk. Risk principles The risk principles aim to define the types of risk the Group is prepared to accept in support of its business strategy. They include the following in particular: diversification and risk-adjusted profitability: The Group seeks to generate sustainable, client-driven, risk adjusted profits. Sustainable profitability will be achieved based on selectivity and controlled evolution of BNP Paribas assets, and the pursuit of a diversified business model. Whilst the Group accepts some level of earnings volatility, it remains attentive to contain, at all times, the level of maximum potential losses in an adverse scenario; solvency and profitability: BNP Paribas has sufficient capital to cope with stress scenarios and to meet regulatory capitalisation standards in force. In the course of serving its clients, BNP Paribas accepts exposure to risks when it earns a proper return over an acceptable time frame, and when its potential impacts seem acceptable; funding and liquidity: the Group ensures that the diversification of and balance between its resources and uses of funds correspond to a conservative funding strategy, allowing it to withstand adverse liquidity scenarios. The Group makes sure that it complies with the regulatory liquidity ratios in force; credit risk: The Group only accepts exposure on customers it knows well, based on comprehensive information, and pays close attention to the structure of the financing it grants. The Group builds and maintains a diversified risk portfolio, avoiding large concentrations (especially on single names, industries and countries) and ensures that it complies with the concentration policies in force; market risk: The Group manages market risks (interest rates, equities, currencies, commodities) within the following framework: for activities in the capital markets that are customer-focused, BNP Paribas intends to keep its market risk profile in line with this customer-focused business mode, interest rate risk associated with its banking book with the aim of stabilising its results on an ongoing basis to within acceptable limits; operational risk: The Group aims to protect its customers, employees and shareholders from operational risk. To do so it has developed a risk management infrastructure based on identifying potential risks, strategies to mitigate risk, and actions to raise awareness of these risks. Some specific risks have resulted in the definition of dedicated principles, in particular: non-compliance risk: The Group is committed to compliance with all applicable laws and regulations. It undertakes to implement a system to manage the risk of non-compliance, including through special programmes dedicated to the most important regulations for its business, information, communication and technology risk: The Group endeavours to reduce the risks related to the security of its information through various awareness actions, enhanced supervision of outsourced activities, heightened protection of terminals, incident monitoring, and a technology watch over IT vulnerabilities and attacks; insurance activities: BNP Paribas Cardif is exposed mainly to credit, underwriting and market risks. The entity closely monitors its exposures and profitability, taking into account its risks and the adequacy of its capital with regard to solvency rules. It endeavours to contain potential losses in adverse scenarios at acceptable levels; risk associated with social and environmental responsibility: The Group is particularly sensitive to its customers’ performance in terms of social and environmental responsibility, believing that this could have a material impact on its customers’ risk profile and, consequently, their solvency, in addition to being a major reputational risk. BNP Paribas takes social and environmental risks into consideration when assessing customer-related risks. The Group also tracks these risks as part of the conduct of its own business, the conduct of its counterparties’ business and of its investments on its own behalf or on behalf of third parties. Supervision of risk profile indicators The Risk Appetite Statement sets out the indicators that measure the Group’s risk profile for its risk exposure categories. Risk level thresholds are assigned to each metric. When these thresholds are reached, they trigger an established process to inform Executive Management and the Board of directors, and if need be, to implement action plans. These indicators are monitored quarterly in the risk dashboards presented to the CCIRC. For example, the following ratios (described in the Key figures of section 5.1 Annual Risk survey) are included in the Risk Appetite statement indicators: the solvency ratios (CET1, Tier 1, total own funds, TLAC, MREL and leverage ratio); the balance of the breakdown of risk-weighted assets by business line; the cost of risk on loans outstandings (in annualised basis points) and doubtful loans on gross outstandings ratio; the liquidity ratios (LCR and NSFR). Stress testing To ensure dynamic risk supervision and management, the Group has implemented a comprehensive stress testing framework. Stress testing framework The stress testing framework forms an integral part of the risk management and financial monitoring system and is used with a threefold objective of forward-looking risk management, planning of regulatory resources and liquidity requirements, and optimisation of the deployment of these resources within the Group, mainly through the Group’s and its main entities’ ICAAP and ILAAP processes. Different types of stress tests There are two types of stress tests: regulatory stress tests: These involve primarily the stress tests requested by the European Banking Authority, the European Central Banks, or any other supervisory authority. In 2024, BNP Paribas participated in the One-off Fit-for-55 climate risk scenario analysis organised by the European Banking Authority under the mandate it received jointly with EIOPA and ESMA from the European Commission to assess the ability of the European financial sector to participate in the financing of energy transition, and more specifically the level of investment required for the European Union to meet its commitment of reducing greenhouse gas emissions by 55% by 2030. The participation of BNP Paribas in the exercise, like that of the other 110 banks involved in the exercise, consisted in providing information on selected credit risk and market risk exposures as well as on revenues pertaining to climate risk (greenhouse gas emissions of corporate clients, energy performance certificates and asset location of financed assets for selected residential and commercial real estate portfolios). BNP Paribas did not participate in projection work, which was performed by the European Banking Authority and the European Central Bank for the banking sector and whose results were made public by the European Banking Authority, the EIOPA, the ESMA and the European Central Bank on 19 November 2024. In 2024, BNP Paribas also took part in the cyber resilience stress test exercise organised by the European Central Bank. In 2023, BNP Paribas took part in the EU-wide stress test organised by the European Banking Authority and the European Central Bank. The exercise was conducted across a panel of 70 banks representing 75% of total assets of the banking system in the European Union. As in previous years, macroeconomic scenarios and a certain number of methodological assumptions were applied to all banks for comparison purposes. A macroeconomic stress scenario was used to test the impact on exposure to credit, market and operational risks, and revenue (net interest income and commissions) and applied to the P&L account, risk weighted assets and capital aggregates. In 2025, BNP Paribas will participate in the EU-wide stress test organised every other year by the European Banking Authority. BNP Paribas entities also take part in stress test exercises organised by local supervisors. In 2024, as in previous years, BNP Paribas’ Singapore Branch took part in the stress test exercise organised by the Monetary Authority of Singapore. In 2024, BNP Paribas’ Hong Kong Branch also took part on a voluntary basis in a climate stress test exercise organised by the Hong Kong Monetary Authority. internal stress tests: stress tests dedicated to risk anticipation: they contribute to the forward-looking risk management, in particular of credit, market, counterparty, interest rates in the banking book, operational, activity and liquidity risks. The results of the transverse stress tests are used, among other purposes, to formulate the Bank’s risk appetite and periodically measure its risk profile. They are periodically submitted to Group Executive Management as well as the Board of directors’ Internal Control, Risk Management and Compliance Committee (CCIRC) through the quarterly Group risk dashboard. Moreover, ad hoc stress testing is performed, when appropriate, within Risk & Development Policy Committees, portfolio reviews or Country Strategic Committees to identify and assess areas of vulnerability within the Group’s portfolios, stress tests for the budget process: they contribute to three-year capital planning. Stress tests are carried out annually as part of the budget process and are included in the ICAAP and the ILAAP. They are reviewed at divisional and business line level before being consolidated at Group level to provide a comprehensive view of the impact on the Bank’s capital, liquidity and earnings. The calculated final output is a comprehensive range of projected Group’s solvency ratios, as well as possible adjustment measures. The scenarios used, the outcomes of the stress tests and the proposed possible adjustment measures (such as reducing exposures to a sub-segment, cost reduction initiatives, or changes in funding or liquidity policies, etc.) are included in the budget synthesis report presented to the Group Executive Management and to the Board of directors at the end of the budget process. In addition, in the Group’s ICAAP, its solvency can be analysed in adverse scenarios other than an adverse budget scenario, defined by risk topics occasionally identified by the Group, reverse stress tests: they are conducted as part of the Bank’s recovery and resolution plan and ICAAP. Reverse stress tests consist of identifying scenarios likely to result in a drop in the Bank’s solvency ratios to levels set in advance in line with the methods of use in question. These exercises enable any areas where the Bank is fragile in terms of changes in certain risk factors to be detected and facilitate in-depth analyses of the remedial actions that could be implemented by business lines or Group-wide. Governance and implementation This stress testing framework is based on a well-defined governance, with responsibilities shared between the Group and operating entities in order to encourage operational integration and relevance and, in particular, to develop internal stress test practices required for proper risk management and Group resource planning. The Finance, RISK and ALM Treasury Functions have created a shared team, Stress Testing and Financial Simulations (“STFS”), responsible for developing stress testing, ICAAP, internal capital and financial simulations capabilities planning across the Group’s entities and activities. The STFS team is responsible in particular for: the definition and the implementation of the Group’s target structure in terms of stress testing and ICAAP while covering the associated organisational issues, modelisation, IT systems and governance; the performance of all of the Group’s stress testing exercises, relying in particular on existing teams within the RISK and Finance Functions; the support of the stress test and ICAAP initiatives of the Group’s business lines and legal entities in order to ensure overall consistency and streamline procedures; the coordination of the Group’s financial simulation system and its adaptation to the challenges of SREP; the Group’s risk identification process; the production of the Group’s ICAAP report and, for certain risks, the quantification of internal capital. Stress test methodologies are tailored to the main categories of risk and subject to independent review. Stress tests may be run at Group, business line or portfolio level, dedicated to one or more risk types and on a more or less large number of variables depending on the pursued objective. Where appropriate, the results of quantitative models may be adjusted on the basis of expert judgement. Since its creation, the Group’s stress testing framework has evolved continuously in order to integrate the most recent developments in stress tests, whether in terms of methodologies or improved operational integration in the Group’s management processes. The stress test framework by type of risks is detailed in sections 5.4 Credit risk, 5.6 Counterparty credit risk and 5.7 Market risk. In this context, the Group is engaged in the development of a climate stress testing infrastructure, covering scenarios (see below), data and models and methodologies, as well as encompassing both transition and physical risks, which are the two main risk types into which climate risk materialises. Internal stress test scenario definition In stress testing exercises, it is common practice to distinguish the baseline scenario from one or several alternative scenarios. A macroeconomic scenario is typically a set of macroeconomic and financial variables (GDP and its components, inflation, employment and unemployment, interest and exchange rates, stock prices, commodity prices, etc.) projected over a given future period. Macroeconomic stress tests Baseline scenario The baseline scenario is considered as the most likely scenario over the projection horizon. The baseline scenario is designed by Group Economic Research in collaboration with various functions and business lines possessing a specific expertise, in particular: Group ALM Treasury for interest rates; Wealth Management for equity indices; BNP Paribas Real Estate regarding commercial real estate; Local economists (BNP Paribas Fortis, BNL, TEB, BNP Paribas Polska) when regional expertise is required; Stress Testing & Financial Simulations (STFS) for coordination and overall consistency of the scenario. The global scenario is made up of regional and national scenarios (Eurozone, France, Italy, Belgium, Spain, Germany, United Kingdom, Poland, Türkiye, United States, Japan, China, India, Russia, etc.) consistent with each other. Alternative scenarios Depending on the exercise, one or more alternative scenarios may be used for stress tests. STFS produces three types of alternative scenarios on a regular basis, in collaboration with the same functions and business lines as those requested in the central scenario: an adverse scenario, a severe scenario and a favourable scenario. The adverse scenario describes one or several potential shocks to the economic and financial environment – i.e. the materialisation of one or several risks to the baseline scenario – over the projection horizon. An adverse scenario is thus always designed in relation to a baseline scenario. The shocks associated with the adverse scenario are translated in the set of macroeconomic and financial variables listed above in the form of deviations from their value in the baseline scenario. The severe scenario is an aggravated version of the adverse scenario. The favourable scenario reflects the impact of the materialisation of risks with a positive effect on the economy. Construction of scenarios The baseline, adverse, severe and favourable scenarios are revised quarterly to monitor the Bank’s risk appetite metrics and credit provision calculations within the framework of IFRS 9. They are validated during committee involving the Group Executive Management for scenarios used in the Group’s budget process (second and third quarters of the year). For the other two quarterly exercises, scenarios are validated jointly by the Group Chief Risk Officer and the Group Chief Financial Officer. The scenarios are then used to calculate expected losses (or profit and loss impact in the case of market risks) over the year for all Group portfolios: For portfolios exposed to credit or counterparty risk and for the equity portfolio of the banking book: this calculation measures the impact of the scenario on the cost of risk and risk-weighted assets due to the deterioration of the portfolio quality resulting from the macroeconomic scenario, or adverse moves in equity prices. Credit risk stress tests are performed on the Bank’s entire portfolio for all regions and all prudential portfolios, namely Retail, Corporates and Institutions; For market portfolios: the changes in value and their profit and loss impact are calculated by simulating a one-time shock, which is consistent with the overall scenario. The above calculations and related methodologies for stress tests on credit and market risks are coordinated centrally at Group level by STFS team. They also involve various teams of experts at Group and territory’s levels in their implementation and design. Lastly, in an adverse budget scenario, risks appertaining to the Group and its business activities and not forming part of the adverse macroeconomic scenario are added. They are identified and quantified either by the Group’s businesses or centrally for those likely to impact the Group as a whole. Climate stress tests Beyond macroeconomic stress tests, the field of climate stress tests is developing rapidly. In this context, the Group is engaged in the analysis, adaptation and creation of transition and physical risk scenarios. With regard to transition risk, the analysis and adaptation works are based at this stage on the work of the NGFS (Network for Greening the Financial System), pioneer in this field. For the Group’s internal requirements in terms of climate stress tests, NGFS scenarios can be adjusted and adapted, so that they are more in touch with most recent developments (e.g. at the macroeconomic level) or that they are more specifically adapted to the Group’s portfolios. In addition, in collaboration with other companies and institutions, the Group is taking part in the initiative to define transition scenarios with more precise sectoral aspects that are relevant to assess transition risk. The physical risk scenarios used by the Group at this stage focus on geographies with significant Retail Banking activities in Europe. 5.4Credit risk Credit risk is the consequence resulting from the likelihood that a borrower or counterparty will fail to meet its obligations in accordance with agreed terms. The probability of default and the expected recovery on the loan or receivable in the event of default are key components of the credit quality assessment. Exposure to credit risk The following table shows the gross exposure of all of the BNP Paribas Group’s assets exposed to credit risk. The banking book securitisation positions as well as derivatives and repurchase agreements exposed to counterparty risk are excluded from this section and presented respectively in section 5.5 and 5.6. In accordance with Implementing Regulation (EU) No. 2021/637, equity exposures under the standardised approach and using the simple weighting method are included in this section. The main differences between the carrying amounts of the prudential balance sheet and the risk exposure amounts used for regulatory purposes are presented in Table 10 in the Scope of Application section of section 5.2 Capital management and capital adequacy. These gross exposure amounts do not take into account guarantee and collateral received by the Group in its normal credit risk management operations (see section Credit risk mitigation techniques). ➤TABLE 25: CREDIT RISK EXPOSURE BY ASSET CLASS AND APPROACH Exposure In millions of euros 31 December 2024 31 December 2023 Variation IRB approach Standardised approach(1) Simple weighting method Total IRB approach Standardised approach(1) Simple weighting method Total Total Total – excluding foreign exchange effect Central governments and central banks 364,667 38,535 403,202 432,341 33,179 465,520 (62,318) (68,063) Corporates 681,194 125,301 806,495 671,642 118,053 789,694 16,800 9,410 Institutions(2) 57,643 21,860 79,504 45,783 23,879 69,662 9,841 9,168 Retail 281,579 165,647 447,226 281,501 164,781 446,282 944 (1,174) Equity 266 11,669 11,936 540 13,593 14,133 (2,197) (2,241) Units or shares in collective investment undertakings 8,716 8,716 5,626 5,626 3,089 3,087 Other items(3) 951 70,397 71,348 1,327 36,948 38,276 33,072 32,837 TOTAL 1,386,035 430,722 11,669 1,828,426 1,432,594 383,007 13,593 1,829,194 (768) (16,975) In the following paragraphs, standardised credit risk exposures are reported according to the regulatory standardised classification. Institutions asset class comprises credit institutions and investment firms, including those recognised in other countries. It also includes some exposures to regional and local authorities, public sector agencies and multilateral development banks that are not treated as central government authorities. Other non-credit obligation assets include tangible assets, accrued income and residual values. Exposure related to loan acquisitions on the secondary market in 2024 only accounts for a marginal amount. Trends in credit risk exposure The decrease of credit risk exposure, excluding the foreign exchange effect, was -EUR 17 billion in 2024. The foreign exchange effect of +EUR 16 billion is mainly explained by the appreciation of the US dollar. Including those effects, the main changes by exposure class are the following: the -EUR 62.3 billion decrease in central governments and central banks arising from a reduction of liquidity placed in the European Central Banks; the +EUR 33.1 billion increase in Other items following the full consolidation in the prudential scope since 1 July 2024 of the entities of the Arval business under exclusive control; the +EUR 16.8 billion increase in corporate activity driven by CIB, notably in North America, offset by CPBS, mainly in France; the +EUR 9.8 billion increase in Institutions, mainly in Europe. Approaches used to calculate capital requirements BNP Paribas has opted for the most advanced approaches allowed under Basel 3. In accordance with the European Directive and its transposition into French law, in 2007 the supervisor authorised the Group to use internal models to calculate capital requirements starting on 1 January 2008. For credit risk, the share of gross exposures under the IRBA approach was 75% at 31 December 2024, down slightly compared to 31 December 2023. This significant scope includes in particular Corporate & Institutional Banking (CIB), Commercial & Personal Banking in France (CPBF). Commercial & Personal Banking in Belgium (CPBB), BNL bc, Personal Finance and Commercial & Personal Banking in Luxembourg (CPBL). The IRBA scope nevertheless excludes certain entities such as those subsidiaries in the Europe-Mediterranean business lines. Within the scope of equity exposures, the Group has mainly opted for the simple weighting method. ➤Figure 7: Gross credit risk exposure by approach At 31 December 2024 The amounts and percentages below are presented net of provisions for credit risk. ➤TABLE 26: SCOPE OF THE USE OF IRB AND SA APPROACHES (EU CR6-A) a b c d e In millions of euros 31 December 2024 Exposure value for exposures subject to IRB approach(1) Exposure for purposes of leverage ratio(2) Total exposure value for exposures subject to the Standardised approach and to the IRB approach Percentage of total exposure value subject to the permanent partial use of the SA (%) Percentage of total exposure value subject to a roll-out plan (%) Percentage of total exposure value subject to IRB Approach (%) 1 Central governments or central banks 364,093 404,609 0.83% 0.62% 98.55% 1.1 of which Regional governments or local authorities 3,389 59.43% 40.57% 1.2 of which Public sector entities 2,474 54.31% 45.69% 2 Institutions 45,122 73,955 0.01% 22.33% 77.67% 3 Corporates 480,935 785,952 0.46% 13.68% 85.85% 3.1 of which Specialised lending, IRB approach 80,322 100.00% 4 Retail 278,077 402,857 3.29% 10.45% 86.26% 4.1 of which secured by real estate SMEs 10,959 11,301 100.00% 4.2 of which secured by real estate non-SMEs 185,517 184,896 100.00% 4.3 of which qualifying revolving 9,881 11,406 100.00% 4.4 of which SMEs 29,746 29,608 100.00% 4.5 of which Other retail 41,975 40,607 100.00% 5 Equity 11,660 17,672 33.97% 66.03% 6 Other non-credit obligation assets 951 951 100.00% 7 Total 1,180,838 1,685,997 1.20% 10.36% 88.44% EAD value used in the risk-weighted assets calculation for the purpose of solvency ratio, pursuant to article 166 of Regulation (EU) No. 575/2013. Exposure value used as a measure of exposure for the purpose of leverage ratio, pursuant to article 249 of Regulation (EU) No. 2019/876. a b c d e In millions of euros 31 December 2023 Exposure value for exposures subject to IRB approach(1) Exposure for purposes of leverage ratio(2) Total exposure value for exposures subject to the Standardised approach and to the IRB approach Percentage of total exposure value subject to the permanent partial use of the SA (%) Percentage of total exposure value subject to a roll-out plan (%) Percentage of total exposure value subject to IRB Approach (%) 1 Central governments or central banks 431,674 473,358 1.35% 7.32% 91.33% 1.1 of which Regional governments or local authorities 5,790 12.96% 87.04% 1.2 of which Public sector entities 3,194 2.50% 97.50% 2 Institutions 37,244 61,342 0.16% 25.62% 74.21% 3 Corporates 482,551 771,380 0.64% 13.14% 86.22% 3.1 of which Specialised lending, IRB approach 79,066 100.00% 4 Retail 278,276 400,428 2.80% 27.85% 69.35% 4.1 of which secured by real estate SMEs 10,675 11,014 100.00% 4.2 of which secured by real estate non-SMEs 185,085 184,492 100.00% 4.3 of which qualifying revolving 10,051 11,533 100.00% 4.4 of which SMEs 30,819 30,745 100.00% 4.5 of which Other retail 41,644 39,918 100.00% 5 Equity 13,581 19,028 0.00% 28.57% 71.43% 6 Other non-credit obligation assets 1,327 1,327 100.00% 7 Total 1,244,653 1,726,864 1.31% 15.56% 83.13% EAD value used in the risk-weighted assets calculation for the purpose of solvency ratio, pursuant to article 166 of Regulation (EU) No. 575/2013. Exposure value used as a measure of exposure for the purpose of leverage ratio, pursuant to article 249 of Regulation (EU) No. 2019/876. Credit risk management policy Credit policies [Audited] The Bank’s lending activities are governed by the Global Credit Policy. It applies to all Group activities that generate credit or counterparty risk. The Global Credit Policy provides general principles (including the risk assessment and decision-making process, adherence to the highest standards of compliance and ethics) applicable to all credit risk, as well as specific principles applicable to country risk, sector risks, clients selection and the transaction structures. It is supplemented by specific policies tailored to certain type of business or counterparty. These credit policies are regularly updated in line with developments in the credit environment in which the Group operates. BNP Paribas takes ESG criteria into account in its credit decision-making processes. For more details, see chapter 5.11 Environmental, social and governance risk. Individual decision- making procedures [Audited] A system of discretionary credit delegations has been established, under which all lending decisions must be approved by managers or representatives of the business teams, with the concurrence of a formally designated RISK representative. Approvals are systematically evidenced in writing, possibly electronically either by means of a signed approval form or in the minutes of formal Credit Committee meetings. Discretionary credit delegations correspond to aggregate commitments by business group and vary according to internal credit ratings and the specific nature of the business concerned. All transactions proposed are subject to a detailed review of the borrower’s current and future position. The review, conducted when granting the transaction and updated at least on an annual basis, is designed to ensure the Group has a comprehensive understanding of the borrower and can monitor any potential changes in its situation. Certain types of lending commitments, such as loans to financial institutions, sovereign loans and loans to customers operating in certain industries that are exposed to cyclical risks or to a rapid pace of change, are subject to specific authorisation procedures and require the sign-off of an industry expert or designated specialist. In Retail Banking, simplified procedures are applied, based on statistical decision-making aids. Credit applications must comply with the Bank’s Global Credit Policy and any relevant specific policies. Material exceptions undergo a special approval process. Before making any commitments, BNP Paribas carries out an in-depth review of any known development plans of the borrower, and ensures that it has thorough knowledge of all the structural aspects of the borrower’s operations and that adequate monitoring will be possible. The General Management Credit Committee (CCDG) is the highest level Group committee for all decisions related to credit and counterparty risk. It has in particular ultimate decision-making authority for all credit applications notably for amounts in excess of individual discretionary credit delegations or applications that would not comply with the Global Credit Policy. Monitoring and portfolio management procedures [Audited] Monitoring exposures A comprehensive risk monitoring system is organised around control units, which are responsible for ensuring that lending commitments comply with the credit decision, that credit risk reporting data are reliable and that risks are effectively monitored. Daily irregular exception reports are produced and various early warning tools are used to identify early the deterioration of credit risks. The various monitoring levels are carried out under the supervision of RISK. Non-performing loans or those placed under credit watch (see Exposures, provisions and cost of risk) are overseen more closely via dedicated quarterly committee meetings (see the Governance part of section 5.3 Risk management). To supplement this mechanism, the Doubtful Committee meets on a monthly basis to validate the proposed changes in individual provisions for doubtful loans for which an adjustment is necessary based on expected financial flows. The responsibilities of the control teams include the monitoring of exposures against approved authorisations, covenants, and guarantees. This allows the identification of any signs of deterioration against the risk profile approved by the Credit Committee. Control teams flag up (to the RISK teams and business units) any cases that fail to comply with Credit Committee decisions and oversee their resolution. In some cases, a specific alert is sent to the senior management of RISK and of the relevant business unit. These are mainly where exceptions remain unresolved and/or where there are serious indications of deterioration in the risk profile compared with that approved by the Credit Committee. Furthermore, since 2018 the General Credit Policy has included specific checks to be conducted for loans granted to clients presenting high leverage ratios, in accordance with European Central Bank guidelines. Overall portfolio management and monitoring The selection and careful evaluation of individual risks taken are supported by a monitoring and risk control system based on more aggregated portfolio levels in terms of division/business line, regions, industry, business/product. The overall portfolio management policy, including concentration of risk by single name, industry and country, is based on this monitoring system and Group Risk Committees review all reports and analyses produced: risk concentration by country is managed through country risk limits that are set at the appropriate level of delegated authority for each country. The Group, which is naturally present in most economically active areas endeavours to avoid excessive concentrations of risk in countries with a high geopolitical risk or unstable political structures or which economic position has been undermined. Country envelope limits are reviewed at least once a year, and quarterly reports are drawn up on their use; the Group closely monitors individual concentrations, in particular on business groups, corporates, banks or sovereign debts. These concentrations are reported in the quarterly risk report to CCIRC. Related policies implemented by the Group are described under Credit risk diversification of this section; regular reviews by the Group are carried out of portfolios in certain industries, either because of the magnitude of the Group’s exposure to the sector or because of sector-specific risks, such as the cyclical nature of the industry or rapid technological developments. In these reviews, special focus is placed on ESG issues in potentially sensitive sectors. The Group draws on the expertise of the relevant business lines and independent industry specialists working in RISK (Industry and Sector Studies). These reviews provide Executive Management, and if appropriate the CCIRC, with an overview of the Group’s exposure to the sector under consideration, and assist it to decide on strategic guidelines. As an illustration, in 2023, an internal portfolio review was undertaken on Petrol & Gas, Electricity generation, Commercial real estate, Metals & Mining, and Automotive; Stress tests assess portfolio vulnerabilities by measuring the impact of various adverse scenarios. They are conducted on a quarterly basis on the entire portfolio and on an ad hoc basis on sub-portfolios to identify any concentrations. They help to ensure that the Bank’s credit risk exposure is in line with its risk appetite. Lastly, BNP Paribas may use credit risk transfer instruments, such as securitisation programmes, credit derivatives or credit insurance, to mitigate individual risks, reduce portfolio concentration or cap potential losses arising from crisis scenarios. Impairment valuation procedures [Audited] The Group applies the impairment procedures described below for all loans subject to impairment (see note 1.f.5 Impairment of financial assets at amortised cost and of debt instruments at market value through shareholders’ equity to the consolidated financial statements): impairment valuation procedure for performing loans: A loss allowance for loans in stage 1 or stage 2 is constituted by each operating division based on an estimation of expected credit losses. This is validated on a quarterly basis during a committee meeting attended by the Chief Financial Officer and Chief Risk Officer of each operating division. Estimations of expected credit losses result from the default risk in the coming twelve months for financial instruments whose credit risk has not significantly increased since initial recognition (stage 1) or upon maturity for unimpaired loans whose credit risk has significantly increased since initial recognition (stage 2). A tool used by most of the Group’s business lines enables calculations to be performed based on the parameters of the rating system described below and integrating the potential impact of macroeconomic and sectoral dynamics; impairment valuation procedure for defaulted exposures: Monthly, RISK reviews corporate, bank and sovereign loans requiring a review of their impairment, to determine the amount of any decrease in value to be recognised, either by reducing the carrying amount or by recording a provision for impairment, in accordance with applicable accounting standards (see note 1.f.5 Impairment of financial assets measured at amortised cos and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements). The Group uses various methodologies (expert opinions, statistical calculations) for defaulted exposures to retail customers. These impairments are referred to as stage 3. The amount of this impairment loss is based on the present value of probable recovered net cash flows under various scenarios and including from the possible realisation of the collateral held. Estimated expected cash flows also includes a cash flow scenario from the possible sale of non-performing loans or all loans. Proceeds from the sale is net of costs associated to the sale. Rating system [Audited] Each counterparty is rated internally by the Group using uniform principles, regardless of the approach used to calculate regulatory capital requirements. The Bank has a comprehensive internal rating system compliant with regulatory requirements regarding capital adequacy. A periodic assessment and control process has been deployed within the Bank to ensure that the system is appropriate and correctly implemented. The system was formally validated by the supervisor in December 2007 and is inspected on a regular basis. For loans to institutions, corporates, sovereigns and specialised lendings, the system is based on three parameters: the counterparty’s probability of default (PD) expressed via a rating, the Global Recovery Rate (GRR) or its complement, Loss Given Default (LGD), which depends on the structure of the transaction, and the Credit Conversion Factor (CCF), which estimates the off-balance sheet exposure at risk. There are twelve counterparty ratings. Ten cover performing clients with credit assessments ranging from “excellent” to “very concerning”, and two relate to clients classified as in default, as per the definition by the banking supervisor. Confirmation or amendments to the probability of default parameters and GRR applicable to each transaction are reviewed at least once a year as part of the loan approval process or annual credit review. These are based on the combined expertise of business line staff and, as a second look, the RISK representatives (who have the final say in case of disagreement). It uses appropriate tools including analysis aids and credit scoring systems. The decision to use these tools and the choice of technique depends on the nature of the risk. For retail counterparties, the system is also based on three parameters: Probability of Default (PD), the Global Recovery Rate (GRR) and the Credit Conversion Factor (CCF). On the other hand, rating methods are applied automatically to determine the loan parameters. Internal estimates of risk parameters are used in the Bank’s day-to-day management in line with regulation recommendations. Thus, apart from calculating capital requirements, they are used for example when setting delegated limits, granting new loans or reviewing existing loans to measure profitability, determine impairments and for book analyses. ➤TABLE 27: INDICATIVE MAPPING OF INTERNAL COUNTERPARTY RATING WITH AGENCY RATING SCALE AND AVERAGE EXPECTED PD Internal rating BNP Paribas LT Issuer/Unsecured issuer’s ratings S&P/Fitch Average expected PD Investment Grade 1+ AAA 0.01% 1 AA+ 0.01% 1- AA 0.01% 2+ AA- 0.02% 2 A+/A 0.03% 2- A- 0.04% 3+/3/3- BBB+ 0.06% to 0.10% 4+/4/4- BBB 0.13 to 0.21% 5+/5/5- BBB- 0.26% to 0.48% Non-Investment Grade 6+ BB+ 0.69% 6/6- BB 1.00% to 1.46% 7+/7 BB- 2.11% to 3.07% 7- B+ 4.01% 8+/8/8- B 5.23% to 8.06% 9+/9/9- B- 9.53% to 13.32% 10+ CCC 15.75% 10 CC 18.62% 10- C 21.81% Default 11 D 100% 12 D 100% The Group has developed an indicative equivalence between the Bank’s internal ratings and the long-term issuer ratings assigned by the major rating agencies. Nevertheless, the Bank has a much broader clientele than just those counterparties rated by an external rating agency. An indicative equivalence is not relevant in Retail Banking. It is used when the internal ratings are assigned or reviewed in order to identify any differences between the Bank’s assessment of a borrower’s probability of default and that of one or more of the rating agencies. However, the internal ratings do not aim to reproduce or even approximate the external ratings. There are significant variances in both directions within the portfolio. Some counterparties rated 6 or 7 by BNP Paribas could be considered Investment Grade by the rating agencies. For further details, see the sections Internal rating system – sovereign, financial institution, corporate and specialised financing portfolios and Internal rating system specific to retail customers. Credit risk stress testing Quantitative models have been developed and are used to connect credit risk and rating migration parameters with macroeconomic and financial variables projected in stress testing scenarios (see section 5.3 Stress testing), for historical data as well as the relevant forecast period. The quality of the methods used is guaranteed by: strict governance in terms of the separation of duties and responsibilities; a review of existing systems (models, methodologies, tools) by an independent entity; periodic evaluation of the effectiveness and pertinence of the system as a whole. This governance is based on internal policies and procedures, the supervision of the Credit Risk Stress Testing Committees by business line and the integration of the stress tests within the risk management system. The central stress testing framework is consistent with the structure defined in the EBA guidelines for European stress tests: it is based on the parameters used to calculate capital requirements (regulatory EAD, PD and LGD); the expected loss conditional to the macroeconomy is used as a measure of the cost of risk resulting from new defaults; the stressed cost of risk is supplemented with impacts on stage 1 and 2 provisions and provisions on the outstanding non-performing loans; the regulatory capital stress testing is performed on the basis of rating migrations, default events, and the stressed regulatory PD used in calculating regulatory capital requirements. Stress testing of credit risk is used in the evaluation of the Group’s risk appetite, and more specifically during portfolio reviews. They are based on models integrated into the risk management and financial planning processes, shared with the provisions calculation system and the internal economic measurement of capital requirements. The system was strengthened and adapted to the evolution of the risk environment: it integrates consideration of the heterogeneity of sectoral trajectories according to scenarios, in particular in high inflation and energy transition contexts; the Forward Looking Adjustment of Internal Rating (FLAIR) approach makes it possible to include in the projections developments that are unparalleled in the recent historical period or likely to lead to rapid changes in the relationships observed historically between variables. This system is used to take into account the impact of the rise in recent interest rates and contributes to the assessment of climate change risks. The Bank has developed a partnership with the Centre de Mathématiques appliquées de l’École Polytechnique en France (CMAP) to ensure access to the most advanced scientific knowledge in the measurement of climate change risks, cyber risks, uncertainty and extreme events more generally. Credit risk diversification The Group’s gross exposure to credit risk stood at EUR 1,817 billion at 31 December 2024, stable compared to 31 December 2023 with EUR 1,815 billion. This portfolio, which is analysed below in terms of its diversification, comprises all exposures to credit risk shown in Table 25, excluding equity exposures under the simple weighting method, shown in the section Credit risk: equities under the simple weighting method. These exposure amounts are based on the gross carrying value of the financial assets. They do not include collateral taken by the Group in its normal credit risk management operations (see section Credit risk mitigation techniques). No single counterparty gives rise to an excessive concentration of credit risk, due to the size of the business and the high level of industrial and geographical diversification of the client base. The breakdown of credit risks by industry and by region is presented in the tables hereafter. This risk is mainly assessed through the monitoring of the indicators shown below. Single name concentration The single name concentration risk of the portfolio is subject to regular monitoring. It is assessed on the basis of the total commitments at client or business group level and is based on two types of monitoring: Monitoring of large exposures Article 395 of Regulation (EU) No. 575/2013 of 26 June 2013 establishes a limit of 25% of the Bank’s capital for exposure by business group (after exemptions and taking credit risk mitigation techniques into account). BNP Paribas is well below the concentration thresholds set by this regulation. The exposure (as defined above) of a client or a group of connected clients never exceeds 10% of the Bank’s eligible capital. Monitoring through individual “single name” concentration policies The single name concentration risks are part of the Group’s concentration policies. They are meant to identify and closely monitor any single business group with an excessive concentration of risk to proactively manage individual concentrations relative to the Group’s Risk Appetite Statement. Breakdown by regulatory asset class ➤TABLE 28: CREDIT RISK EXPOSURE BY ASSET CLASS AND APPROaCH TYPE Exposure In millions of euros 31 December 2024 31 December 2023 Central governments or central banks 364,667 432,341 Institutions 57,643 45,783 Corporates 681,194 671,642 Corporates – Specialised financing 81,299 80,020 Corporates – SME 40,129 49,095 Other corporates 559,766 542,527 Retail 281,579 281,501 Retail – Secured by real estate property 185,506 185,070 Retail – Secured by commercial property 11,391 11,106 Retail – Revolving exposures 11,813 11,901 Retail – SME 30,851 31,932 Retail – Other 42,018 41,492 Other risk assets 951 1,327 TOTAL IRB APPROACH 1,386,035 1,432,594 Central governments or central banks 31,604 29,288 Regional governments or local authorities 3,394 5,793 Public sector entities 2,476 3,196 Multilateral development banks 4,661 1,637 International organisations 1,325 1,279 Institutions 16,528 15,828 Corporates 111,485 106,662 Retail 126,466 124,421 Exposures secured by mortgages on immovable property 42,326 41,726 Exposures in default 10,669 10,062 Items associated with particular high risk(1) 232 Exposures in the form of units or shares in collective investment undertakings 8,716 5,626 Equity 266 540 Other items 70,575 36,948 TOTAL STANDARDISED APPROACH 430,722 383,007 TOTAL 1,816,757 1,815,602 Immovable property financing exposures whose risk profile may be affected by market conditions. Geographic diversification Country risk is the sum of the risks on all exposures to obligors in the country concerned. It is not the same as sovereign risk, which is the sum of all exposures to the central government and its various branches. Country risk reflects the Bank’s exposure to a given economic and political environment, which are taken into consideration when assessing counterparty quality. The geographic breakdown shown below is based on the counterparty’s country of residence. The geographic breakdown of the portfolios is balanced. In 2024, the Group was particularly attentive to geopolitical risks and the economic performance of emerging countries. ➤TABLE 29: CREDIT RISK EXPOSURE BY GEOGRAPHIC REGION Exposure In millions of euros 31 December 2024 Europe(1) North America Asia Pacific Rest of the World TOTAL Total Europe France Belgium Luxembourg Italy United Kingdom Germany Netherlands Other European countries Total Asia Pacific Japan North Asia South-East Asia (ASEAN) Indian peninsula & Pacific Total Rest of the World Türkiye Mediterranean basin Gulf States & Africa Latin America Other countries Central governments or central banks 251,486 128,238 36,654 21,581 19,061 7,650 16,804 192 21,305 55,400 50,524 27,109 6,002 10,016 7,398 7,258 359 259 1,556 2,764 2,321 364,667 Institutions 33,609 10,045 9,453 659 2,983 1,488 2,079 1,597 5,304 6,335 8,297 1,818 4,136 726 1,617 9,402 1,178 207 2,483 4,578 956 57,643 Corporates 463,410 138,168 70,104 28,553 54,197 49,615 31,697 28,306 62,770 126,677 54,971 8,489 17,929 12,527 16,026 36,136 1,383 419 4,699 13,387 16,248 681,194 Retail 279,920 149,010 84,296 8,987 35,343 586 356 307 1,035 612 410 19 158 191 43 637 17 78 356 68 118 281,579 Other items 951 951 951 TOTAL IRB APPROACH 1,029,376 426,413 200,507 59,781 111,584 59,339 50,936 30,402 90,414 189,024 114,202 37,434 28,225 23,459 25,084 53,433 2,936 963 9,094 20,798 19,643 1,386,035 Central governments or central banks 20,896 4,274 111 119 3,943 376 850 131 11,093 854 178 72 39 9 58 9,676 5,857 1,780 9 135 1,896 31,604 Regional governments or local authorities 3,152 570 30 318 1,579 22 69 5 558 4 - 237 236 1 3,394 Public sector entities 2,329 609 31 12 1,510 32 56 7 73 14 14 133 133 2,476 Multilateral development banks 4,038 4,002 37 82 540 492 49 4,661 International organisations 1,324 1,036 135 100 51 3 - - - 1,325 Institutions 13,033 4,412 470 301 2,378 451 911 195 3,916 770 1,052 131 586 186 150 1,672 1,254 129 121 32 136 16,528 Corporates 88,386 20,241 6,128 1,879 13,902 10,621 9,866 2,857 22,894 953 7,730 101 3,705 1,937 1,987 14,416 6,355 5,852 654 362 1,193 111,485 Retail 112,662 11,873 3,888 226 31,104 16,890 19,332 1,642 27,706 232 2,262 8 2,168 9 77 11,311 7,624 1,669 1,142 36 840 126,466 Exposures secured by mortgages on immovable property 38,528 7,640 8,140 136 1,052 1,374 1,381 5,348 13,458 22 478 1 283 148 46 3,297 1,977 1,111 87 10 112 42,326 Exposures in default 9,613 2,779 455 23 2,104 579 1,049 70 2,554 2 4 1 3 1,051 212 564 199 12 63 10,669 Items associated with particular high risk(2) 1 1 - - 231 231 232 Exposures in the form of units or shares in collective investment undertakings 8,430 4,453 957 1,832 569 122 129 126 242 199 37 17 10 2 7 49 44 5 8,716 Equity 197 76 3 98 5 6 5 3 1 58 4 4 8 6 1 266 Other items 64,717 20,035 5,087 913 8,849 9,436 8,510 1,524 10,363 994 2,262 444 1,596 93 130 2,603 1,096 475 83 714 235 70,575 TOTAL STANDARDISED APPROACH 367,305 77,998 25,436 9,959 67,045 39,946 42,156 11,907 92,859 4,170 14,562 775 8,894 2,433 2,461 44,684 24,654 11,945 2,295 1,308 4,482 430,722 TOTAL 1,396,681 504,411 225,943 69,739 178,628 99,284 93,092 42,309 183,274 193,194 128,764 38,209 37,119 25,892 27,545 98,117 27,590 12,908 11,389 22,106 24,125 1,816,757 Within the scope of the European Union, the European Free Trade Association (EFTA) and the United Kingdom. Immovable property financing exposures whose risk profile may be affected by market conditions. Exposure In millions of euros 31 December 2023 Europe(1) North America Asia Pacific Rest of the World TOTAL Total Europe France Belgium Luxembourg Italy United Kingdom Germany Netherlands Other European countries Total Asia Pacific Japan North Asia South-East Asia (ASEAN) Indian peninsula & Pacific Total Rest of the World Türkiye Mediterranean basin Gulf States & Africa Latin America Other countries Central governments or central banks 331,619 207,395 37,758 26,423 21,375 5,385 12,086 171 21,026 46,000 47,310 25,137 6,921 9,171 6,081 7,412 404 277 2,121 2,648 1,962 432,341 Institutions 26,044 7,569 8,715 424 1,968 878 1,702 1,799 2,991 5,670 7,382 1,454 4,194 705 1,029 6,687 1,059 181 3,105 1,951 390 45,783 Corporates 476,070 147,757 69,813 29,276 60,486 51,736 32,731 25,756 58,516 108,216 49,882 7,721 17,085 10,813 14,264 37,474 1,200 425 8,603 14,863 12,382 671,642 Retail 279,905 149,927 82,558 9,100 36,145 570 373 265 969 560 418 20 163 191 45 619 17 72 318 78 134 281,501 Other items 1,327 1,327 - - - 1,327 TOTAL IRB APPROACH 1,114,966 513,975 198,843 65,222 119,973 58,568 46,891 27,990 83,503 160,445 104,992 34,332 28,363 20,879 21,419 52,191 2,680 955 14,147 19,540 14,868 1,432,594 Central governments or central banks 22,107 5,821 1,626 328 4,954 122 531 3 8,722 366 237 53 14 1 168 6,578 4,683 1,672 133 90 29,288 Regional governments or local authorities 5,454 531 1,142 86 2,961 37 46 15 636 196 5 5 137 137 1 5,793 Public sector entities 3,085 583 77 12 1,943 41 37 6 385 1 16 16 94 94 3,196 Multilateral development banks 1,637 1,603 34 - - - 1,637 International organisations 1,279 1,030 175 20 51 3 - - - 1,279 Institutions 12,460 6,825 268 216 574 780 398 94 3,306 299 1,681 12 410 221 1,038 1,388 506 83 265 332 201 15,828 Corporates 87,079 21,905 5,546 1,603 9,518 8,541 8,472 1,492 30,002 1,000 6,131 51 3,011 1,534 1,535 12,453 4,825 5,136 521 638 1,333 106,662 Retail 111,342 15,373 4,631 287 29,786 15,613 17,516 1,448 26,689 114 2,460 4 2,107 7 342 10,505 4,864 1,367 1,103 2,475 696 124,421 Exposures secured by mortgages on immovable property 39,057 7,298 7,223 85 949 1,229 2,054 5,666 14,554 20 315 1 110 155 48 2,334 1,144 1,076 62 9 44 41,726 Exposures in default 8,850 2,159 342 18 2,020 577 896 70 2,769 8 4 1 1 3 1,200 138 797 200 36 29 10,062 Items associated with particular high risk(2) - - - - - Exposures in the form of units or shares in collective investment undertakings 5,482 3,167 397 1,135 458 97 35 65 128 112 26 12 7 2 5 6 4 1 5,626 Equity 467 210 - 196 1 27 2 15 16 58 6 6 9 8 1 540 Other items 34,866 20,369 2,365 441 4,074 2,354 3,752 166 1,344 292 972 73 815 8 76 818 390 293 24 86 25 36,948 TOTAL STANDARDISED APPROACH 333,166 85,270 23,792 6,031 57,288 29,452 33,739 9,040 88,553 2,467 11,852 206 6,491 1,929 3,226 35,522 16,690 10,518 2,176 3,718 2,420 383,007 TOTAL 1,448,132 599,245 222,635 71,254 177,261 88,020 80,630 37,030 172,056 162,912 116,845 34,537 34,854 22,808 24,645 87,713 19,370 11,473 16,323 23,258 17,288 1,815,601 Within the scope of the European Union and the European Free Trade Association (EFTA). Immovable property financing exposures whose risk profile may be affected by market conditions. Industry diversification The sectoral breakdown of the exposure class of non-financial corporations by industry is available in Table 51 Breakdown of loans and advances and provisions to non-financial corporations by industry (EU CQ5). Risk-weighted assets ➤TABLE 30: CREDIT RISK-WEIGHTED ASSETS RWAs In millions of euros 31 December 2024 31 December 2023 Variation IRB approach 311,061 287,009 24,052 Central governments or central banks 3,877 4,360 (482) Institutions 11,043 7,963 3,080 Corporates 237,974 218,425 19,548 Corporates – Specialised financing 29,818 22,918 6,900 Corporates – SME 19,799 21,967 (2,169) Other corporates 188,357 173,540 14,817 Retail 57,947 55,989 1,958 Retail – Secured by real estate property 27,360 23,174 4,186 Retail – Secured by commercial property 2,798 2,880 (82) Retail – Revolving exposures 2,800 3,366 (566) Retail – SME 9,336 9,469 (134) Retail – Other 15,654 17,100 (1,446) Other risk assets 220 272 (52) Standardised approach 227,092 188,191 38,901 Central governments or central banks 7,463 4,842 2,621 Regional governments or local authorities 569 709 (139) Public sector entities 965 1,110 (145) Multilateral development banks International organisations Institutions 4,746 5,562 (816) Corporates 71,688 60,937 10,751 Retail 64,540 62,749 1,791 Exposures secured by mortgages on immovable property 16,855 16,012 843 Exposures in default 5,488 4,957 531 Items associated with particular high risk(1) 324 Exposures in the form of units or shares in collective investment undertakings 10,961 7,838 3,123 Equity 1,704 2,265 (561) Other items 41,788 21,211 20,578 Equity positions under the simple weighting method 38,949 45,941 (6,992) Private equity exposures in diversified portfolios 3,836 3,480 357 Listed equity exposures 2,028 3,706 (1,679) Other equity exposures 33,085 38,755 (5,670) Other risk exposures 2,500 14,000 (11,500) CREDIT RISK 579,602 535,141 44,461 Immovable property financing exposures whose risk profile may be affected by market conditions. ➤TABLE 31: CREDIT RISK-WEIGHTED ASSETS MOVEMENTS BY KEY DRIVER (EU CR8) ➤4th quarter 2024 a In millions of euros RWAs Capital requirements Total of which IRB approach Total of which IRB approach 1 30 September 2024 583,396 323,408 46,672 25,873 2 Asset size (5,193) (10,742) (415) (859) 3 Asset quality (1,419) (735) (114) (59) 4 Model update (4,680) (4,957) (374) (397) 5 Methodology and policy 6 Acquisitions and disposals (784) 34 (63) 3 7 Currency 7,621 5,505 610 440 8 Others 661 (1,452) 53 (116) 9 31 December 2024 579,602 311,061 46,368 24,885 ➤Year to 31 December 2024 a In millions of euros RWAs Capital requirements Total of which IRB approach Total of which IRB approach 1 31 December 2023 535,141 287,009 42,811 22,961 2 Asset size 9,044 887 724 71 3 Asset quality (1,194) (1,250) (95) (100) 4 Model update 12,960 27,883 1,037 2,231 5 Methodology and policy 1,414 7 113 1 6 Acquisitions and disposals(1) 13,632 (5,832) 1,091 (467) 7 Currency 6,191 4,748 495 380 8 Others 2,412 (2,391) 193 (191) 9 31 December 2024 579,602 311,061 46,368 24,885 Including risk-weighted assets relating to entities under exclusive control of the Arval business, fully consolidated within the prudential scope since 1 July 2024. Credit risk-weighted assets increased by +EUR 44 billion in 2024, primarily as a result of the following: a +EUR 14 billion increase related to perimeter effects, mainly linked to the full consolidation in the prudential scope since 1 July 2024 of the entities of the Arval business under exclusive control; a +EUR 13 billion increase in line with updating of models; a +EUR 9 billion increase in line with business activity (net of the impact of the efficient securitisation transactions initiated by the Group) mainly at Commercial, Personal Banking & Services; a +EUR 6 billion increase due to currency effects, linked to the depreciation of the US dollar. Credit risk: Internal Ratings-Based Approach (IRBA) The internal rating system developed by the Group covers the entire Bank. The IRBA framework, validated in December 2007, covers the portfolio described in Approaches used to calculate capital requirements in the section entitled Exposure to credit risk. The Group has developed specific internal models adapted for the most common categories of exposure and clients in its loan portfolio. BNP Paribas bases these developments on internal data gathered over long periods. Each of these models is developed and maintained by a specialist team, in conjunction with relevant RISK and business line experts. Moreover, verification is performed to ensure compliance with the floors set by the regulation on these models. The Bank does not use models developed by external suppliers. IRBA credit models are developed and used within a control system comprising three lines of defence: models producing internal estimates of the risk parameters are developed and maintained by specialised RISK teams, which also perform annual backtesting of each model in production; another RISK team, which reports directly to the Group Chief Risk Officer, conducts independent reviews of the models. Three types of review are carried out: systematic before a model is implemented, annual when reviewing backtesting carried out by the first line, and finally periodic, covering all the IRBA models used in the Bank according to an auditing plan that takes into account a risk-based approach; finally, each year, the General Inspectorate conducts an overall assessment of the models and their governance, and conducts a detailed review of an identified risk area. In addition, the first and second line of defence RISK teams regularly report the most important information to Bank management and senior management, through: the Capital Committee, which is the competent Executive Management authority for issues relating to internal credit models, and which, as such, is informed of the main decisions taken concerning these models, annually reviews the results of backtesting and receives a summary of the results of the independent review of the models; and the Internal Control, Risk Management and Compliance Committee (CCIRC), a body appointed by the Board of directors, which receives a quarterly qualitative dashboard detailing the major risk-related events over the quarter and a metric based on the recommendations of the independent review team. Counterparty rating (or the Probability of Default) and the Loss Given Default are determined either using purely statistical models for portfolios with the highest degree of granularity (loans to individuals or to very small enterprises) or a combination of models and expert judgement based on indicative values. Loss Given Default is defined as the loss that the Bank would suffer in the event of the counterparty’s default in times of economic downturn, as required by regulations. For each transaction, it is measured using the recovery rate for a senior unsecured exposure to the counterparty, adjusted for any risk mitigation techniques (collateral or guarantees). Amounts recoverable against these mitigants are estimated each year using conservative assumptions as well as haircuts calibrated to reflect economic downturn conditions. The Bank models its own conversion factors on financing commitments by using internal default data. Conversion factors are used to measure the off-balance sheet exposure at risk in the event of a default. This parameter is assigned automatically depending on the transaction type for all portfolios and therefore is not determined by the Credit Committees. Internal estimates of risk parameters are used in the Bank’s day-to-day management in line with regulation recommendations. Thus, apart from calculating capital requirements, they are used, for example, when setting delegated limits, granting new loans or reviewing existing loans to measure profitability, determining stage 1 and stage 2 impairment and for book analyses. ➤TABLE 32: MAIN MODELS: PD, LGD AND CCF/EAD Modelled parameter Portfolio Number of models Model and methodology Number of years – Default/loss data Main asset class PD Sovereigns 1 Qualitative > 10 years Central governments and central banks Financial Institutions 4 Quantitative + expert opinion > 10 years Institutions Central governments and central banks Corporate – other Insurance 1 Quantitative + expert opinion > 10 years Corporate – other Large corporates 1 Quantitative + expert opinion Qualitative > 10 years Corporate – other Real Estate non-retail in France 1 Qualitative > 10 years Corporate – other Specialised Lending 2 Qualitative Quantitative + expert opinion > 10 years Corporate – specialised lending General Non Retail Rating Policy 1 Qualitative > 10 years Corporate – other CPBF – Mid-Corporates 1 Quantitative + expert opinion > 10 years Corporate – SME CPBF – Retail Professionnals & Entrepreneurs 1 Quantitative > 10 years Retail – other SME CPBF – Retail Individuals 1 Quantitative > 10 years Retail – other non-SME/qualifying Revolving/secured by real estate non-SME Consumer Finance 2 Quantitative > 10 years Retail – other non-SME BNPP FORTIS – Mid-Corporates 3 Quantitative + expert opinion > 10 years Retail – other/secured by real estate SME BNPP FORTIS – Professionals 1 Quantitative > 10 years Retail – other SME/secured by real estate SME BNPP FORTIS – Individuals 1 Quantitative > 10 years Retail – Secured by real estate non-SME BNPP FORTIS – Public entities 1 Quantitative + expert opinion 9 years Institutions BNL bc – Mid-Corporates 1 Quantitative – logistic regression > 10 years Corporate – SME BNL bc – Retail Individuals 1 Quantitative – logistic regression > 10 years Retail – other non-SME BNL bc – Professionals & Retail Mid-Corporates 1 Quantitative – logistic regression > 10 years Retail – other SME BGL – Retail 1 Quantitative > 10 years Retail non-SME/secured by real estate SME BGL – Mid-Corporates 3 Quantitative > 10 years Corporate - SME LGD Sovereigns 1 Qualitative > 10 years Central governments and central banks Banks 4 Quantitative + expert opinion > 10 years Institutions Central governments and central banks Corporate – other Insurance 1 Qualitative > 10 years Corporate – other Large corporates 1 Quantitative – calibrated on internal data Quantitative + expert opinion Quantitative > 10 years Corporate – other Specialised lending 2 Quantitative – calibrated on internal data Qualitative > 10 years Corporate – specialised lending General Non Retail Rating Policy 1 Qualitative > 10 years Corporate – other CPBF – Mid-Corporates 1 Quantitative – calibrated on internal data > 10 years Corporate – SME CPBF – Professionals 1 Quantitative – calibrated on internal data > 10 years Retail – other SME CPBF – Individuals 1 Quantitative – calibrated on internal data > 10 years Retail - non SME Consumer Finance 2 Quantitative – calibrated on internal data > 10 years Retail – other non-SME BNPP FORTIS - Professionnals & Mid-Corporates 1 Quantitative – calibrated on internal data > 10 years Retail – other non-SME/qualifying Revolving/secured by real estate non-SME BNPP FORTIS – Individuals 1 Quantitative – calibrated on internal data > 10 years Retail – other SME/secured by real estate non-SME BNPP FORTIS – Public entities 1 Quantitative – calibrated on internal data > 10 years Institutions BNL bc – Mid-Corporates 1 Quantitative – calibrated on internal data > 10 years Corporate – SME BNL bc – Retail Individuals 1 Quantitative – calibrated on internal data > 10 years Retail – other non-SME BNL bc – Professionals & Mid-Corporates 1 Quantitative – calibrated on internal data > 10 years Retail – other non-SME BGL – Retail 1 Quantitative > 10 years Retail – other non-SME BGL – Mid-Corporate 1 Quantitative > 10 years Corporate -SME CCF/EAD CCF for corporates, banks and sovereigns 1 Quantitative – calibrated on internal data > 10 years Central governments and central banks CPBF – Retail 1 Quantitative – calibrated on internal data > 10 years Retail Consumer Finance 2 Quantitative – calibrated on internal data > 10 years Retail BNPP FORTIS – Professionals & SME 1 Quantitative – calibrated on internal data > 10 years Retail BNPP FORTIS – Individuals 1 Quantitative – calibrated on internal data > 10 years Retail BNPP FORTIS – Public entities 1 Quantitative + expert opinion > 10 years Institutions BNL bc – Retail 2 Fix value - Retail BNL bc – Mid-Corporates 1 Fix value - Corporates – SME BGL – Retail 1 Quantitative > 10 years Retail BGL - Mid-Corporate 1 Quantitative > 10 years Corporate - SME Backtesting Each one of the three credit risk parameters (PD, LGD, CCF/EAD) is backtested annually in order to check the performance and conservatism of every model and business segment of the Bank. Backtesting of an internal Probability of Default model primarily aims at ensuring that the ratings attributed internally by the PD model are more conservative than the default rates observed during the year for the population under the scope of this model. When external ratings are available, for clients covered by a low default portfolio model, they are also used to challenge the conservatism of our internal ratings. Backtesting of a Loss Given Default model is only based on exposures that are on default and includes both closed and open files. The Long Run Average LGD is compared with the corresponding LGD estimated from the model applied to the relevant application scope. The Time-to-Workout is defined as the period during which the institution realises the vast majority of the recoveries and it is used as the largest period for which recoveries are expected. When a recovery process is operationally closed, or reaches the Time-to-Workout (i.e. pseudo-closed), the observed LGD is calculated using all observed cashflows (recoveries, cost of recoveries and additional drawings) discounted back to the default date and compared with the outstanding at default (which may include additional drawings when relevant). When the recovery process is open or incomplete, future recoveries are estimated until Time-to-Workout by extrapolating historical recoveries, as well as any additional drawings, observed for the underlying population. For both PD and LGD backtesting, additional tests are performed to assess and track over years the data representativeness, the stability, the risk differentiation as well as the correct calibration and conservatism of the model. In case any of these dimensions has deteriorated, or if any major alert is threatening the model’s relevancy, a recalibration can be proposed or even, in more extreme cases, a redevelopment of the model. All this work is reviewed annually in the Capital Committee (see section 5.2 under Capital management). The results from the backtesting are also certified internally by an independent team and the results sent to the supervisor. Any change is submitted to the supervisor for approval, in line with the regulation. The following tables present an overview of the performance of the models for regulatory risk parameters PD and LGD within the context of the Group’s IRBA scope For constructing the PD tables (see Tables 33, 34, 35 and 36 hereafter), each obligor is assigned to its correspondent class of [Portfolio x PD Scale] and then the indicators of each class are computed as follows: Observed average default rate: The number of obligors falling in default during the observed year divided by the number of performing obligors at the end of the previous year; Average PD weighted by the number of debtors: average of the 1-year probability of default attributed to each performing obligor by PD internal models; Exposure weighted average PD: average (weighted by the exposure of each obligor) of the 1-year probability of default attributed to each performing obligor by PD internal models; Average historical annual default rates: average (weighted by the number of historical years observed) of the yearly observed average default rates (defined above). For constructing the LGD tables (see Table 37 hereafter), each facility is assigned to one of the six pre-defined types of Portfolios and then the indicators are computed as follows: Arithmetical average of the estimated LGD: average (weighted by the number of facilities) of the rates of loss in the event of default attributed by internal LGD models to each performing facility; Arithmetical average of the historic LGD observed: average (weighted by the number of facilities) of the rates of loss in the event of default historically observed for each facility having been in default. ➤TABLE 33: BACKTESTING OF PD ON CENTRAL GOVERNMENT, CENTRAL BANK AND INSTITUTION PORFOLIO (EU CR9) a b c d e f g h Portfolio PD scale 2023 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Central governments and central banks 0.00 to <0.15% 530 1 0.19% 0.01% 0.06% 0.01% 0.00 to <0.10% 382 0.01% 0.04% 0.10 to <0.15% 148 1 0.68% 0.10% 0.12% 0.05% 0.15 to <0.25% 67 0.20% 0.23% 0.25 to <0.50% 3 0.29% 0.32% 0.50 to <0.75% 65 1 1.54% 0.69% 0.65% 0.41% 0.75 to <2.50% 60 1 1.67% 1.03% 1.18% 2.27% 0.75 to <1.75% 53 1 1.89% 1.03% 1.06% 2.39% 1.75 to <2.50% 7 1.85% 2.03% 2.50 to <10.00% 5 7.20% 3.60% 0.21% 2.50 to <5.00% 3 3.56% 2.78% 0.83% 5.00 to <10.00% 2 8.35% 5.24% 10.00 to <100.00% 19 1 5.26% 20.77% 10.21% 2.07% 10.00 to <20.00% 19 1 5.26% 16.70% 10.21% 1.21% 20.00 to <30.00% 30.00 to <100.00% 100% (Default) 100.00% 100.00% Institutions 0.00 to <0.15% 619 0.04% 0.07% 0.04% 0.00 to <0.10% 460 0.04% 0.05% 0.04% 0.10 to <0.15% 159 0.12% 0.12% 0.07% 0.15 to <0.25% 258 0.17% 0.19% 0.21% 0.25 to <0.50% 181 0.38% 0.35% 0.13% 0.50 to <0.75% 83 0.61% 0.59% 0.06% 0.75 to <2.50% 227 1.08% 1.29% 0.47% 0.75 to <1.75% 205 1.04% 1.21% 0.50% 1.75 to <2.50% 22 2.04% 2.04% 2.50 to <10.00% 119 3.57% 4.53% 0.77% 2.50 to <5.00% 83 3.15% 3.41% 0.53% 5.00 to <10.00% 36 8.41% 7.09% 0.73% 10.00 to <100.00% 29 17.04% 19.71% 2.63% 10.00 to <20.00% 17 11.65% 14.53% 2.02% 20.00 to <30.00% 11 22.87% 25.43% 3.81% 30.00 to <100.00% 1 44.91% 100% (Default) 12 100.00% 100.00% a b c d e f g h Portfolio PD scale 2022 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Central governments and central banks 0.00 to <0.15% 750 0.01% 0.04% 0.00 to <0.10% 664 0.01% 0.03% 0.10 to <0.15% 86 0.13% 0.12% 0.15 to <0.25% 61 0.19% 0.22% 0.37% 0.25 to <0.50% 29 0.29% 0.32% 0.50 to <0.75% 58 0.69% 0.65% 0.33% 0.75 to <2.50% 93 1.30% 1.30% 2.28% 0.75 to <1.75% 75 1.29% 1.12% 2.38% 1.75 to <2.50% 18 1.88% 2.05% 0.00% 2.50 to <10.00% 19 8.33% 5.49% 0.44% 2.50 to <5.00% 10 3.07% 3.26% 0.64% 5.00 to <10.00% 9 8.36% 7.97% 0.40% 10.00 to <100.00% 38 4 10.53% 19.48% 11.92% 3.61% 10.00 to <20.00% 34 1 2.94% 14.76% 10.75% 1.99% 20.00 to <30.00% 4 3 75.00% 21.81% 21.81% 12.86% 30.00 to <100.00% 100% (Default) 14 100.00% 100.00% Institutions 0.00 to <0.15% 710 0.04% 0.07% 0.04% 0.00 to <0.10% 491 0.04% 0.05% 0.05% 0.10 to <0.15% 219 0.12% 0.13% 0.05% 0.15 to <0.25% 202 0.18% 0.20% 0.25% 0.25 to <0.50% 185 0.32% 0.34% 0.13% 0.50 to <0.75% 85 0.64% 0.58% 0.06% 0.75 to <2.50% 259 1.42% 1.32% 0.54% 0.75 to <1.75% 219 1.06% 1.16% 0.53% 1.75 to <2.50% 40 1.87% 2.20% 0.52% 2.50 to <10.00% 123 5.29% 5.29% 0.85% 2.50 to <5.00% 66 3.34% 3.79% 0.49% 5.00 to <10.00% 57 8.71% 7.02% 0.84% 10.00 to <100.00% 33 17.74% 17.77% 2.80% 10.00 to <20.00% 18 12.44% 13.06% 2.11% 20.00 to <30.00% 15 23.83% 23.42% 4.17% 30.00 to <100.00% 100% (Default) 18 100.00% 100.00% ➤TABLE 34: BACKTESTING OF PD ON CORPORATE PORTFOLIO (EU CR9) a b c D e f g h Portfolio PD scale 2023 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Corporates – Specialised Lending 0.00 to <0.15% 142 0.05% 0.09% 0.00 to <0.10% 55 0.04% 0.05% 0.10 to <0.15% 87 0.12% 0.12% 0.15 to <0.25% 87 0.21% 0.18% 0.02% 0.25 to <0.50% 361 0.39% 0.35% 0.13% 0.50 to <0.75% 264 1 0.38% 0.68% 0.68% 0.57% 0.75 to <2.50% 680 1 0.15% 1.31% 1.25% 0.44% 0.75 to <1.75% 576 1.21% 1.11% 0.30% 1.75 to <2.50% 104 1 0.96% 2.03% 2.05% 1.02% 2.50 to <10.00% 381 4 1.05% 4.34% 4.25% 1.38% 2.50 to <5.00% 271 3.37% 3.17% 1.19% 5.00 to <10.00% 110 4 3.64% 6.98% 6.90% 1.88% 10.00 to <100.00% 51 9 17.65% 16.21% 17.75% 13.61% 10.00 to <20.00% 36 4 11.11% 14.08% 15.82% 10.69% 20.00 to <30.00% 15 5 33.33% 22.27% 22.39% 24.24% 30.00 to <100.00% 100% (Default) 75 100.00% 100.00% Corporates – SME 0.00 to <0.15% 1,339 3 0.22% 0.07% 0.12% 0.17% 0.00 to <0.10% 136 0.05% 0.07% 0.13% 0.10 to <0.15% 1,203 3 0.25% 0.12% 0.12% 0.20% 0.15 to <0.25% 14,589 37 0.25% 0.21% 0.22% 0.21% 0.25 to <0.50% 2,633 4 0.15% 0.30% 0.40% 0.30% 0.50 to <0.75% 2,031 11 0.54% 0.66% 0.63% 0.56% 0.75 to <2.50% 15,403 211 1.37% 1.36% 1.21% 1.26% 0.75 to <1.75% 13,213 170 1.29% 1.03% 1.06% 1.11% 1.75 to <2.50% 2,190 41 1.87% 2.03% 2.10% 1.93% 2.50 to <10.00% 5,720 272 4.76% 4.36% 4.81% 4.08% 2.50 to <5.00% 3,511 107 3.05% 3.36% 3.59% 3.09% 5.00 to <10.00% 2,209 165 7.47% 6.97% 6.74% 6.38% 10.00 to <100.00% 1,711 192 11.22% 17.12% 16.25% 13.13% 10.00 to <20.00% 1,097 76 6.93% 12.72% 11.34% 9.81% 20.00 to <30.00% 513 84 16.37% 23.53% 21.72% 16.97% 30.00 to <100.00% 101 32 31.68% 43.17% 41.76% 29.52% 100% (Default) 1,495 100.00% 100.00% Corporates – Other 0.00 to <0.15% 5,016 2 0.04% 0.05% 0.09% 0.22% 0.00 to <0.10% 2,465 1 0.04% 0.03% 0.05% 0.05% 0.10 to <0.15% 2,551 1 0.04% 0.12% 0.12% 0.18% 0.15 to <0.25% 15,884 24 0.15% 0.21% 0.22% 0.16% 0.25 to <0.50% 5,836 5 0.09% 0.37% 0.36% 0.19% 0.50 to <0.75% 3,399 14 0.41% 0.66% 0.64% 0.55% 0.75 to <2.50% 16,648 113 0.68% 1.37% 1.26% 0.71% 0.75 to <1.75% 14,112 103 0.73% 1.03% 1.12% 0.61% 1.75 to <2.50% 2,536 10 0.39% 1.98% 2.08% 1.20% 2.50 to <10.00% 7,477 127 1.70% 4.55% 4.53% 2.52% 2.50 to <5.00% 5,004 73 1.46% 3.43% 3.44% 1.92% 5.00 to <10.00% 2,473 54 2.18% 7.00% 6.74% 3.86% 10.00 to <100.00% 1,493 111 7.43% 18.04% 16.01% 9.61% 10.00 to <20.00% 1,055 51 4.83% 15.27% 12.70% 7.46% 20.00 to <30.00% 393 51 12.98% 22.58% 22.13% 13.40% 30.00 to <100.00% 45 9 20.00% 34.09% 40.06% 21.91% 100% (Default) 2,254 100.00% 100.00% a b c d e f g h Portfolio PD scale 2022 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Corporates – Specialised Lending 0.00 to <0.15% 164 0.08% 0.09% 0.00 to <0.10% 65 0.05% 0.06% 0.10 to <0.15% 99 0.12% 0.12% 0.15 to <0.25% 154 0.18% 0.18% 0.02% 0.25 to <0.50% 529 1 0.19% 0.34% 0.35% 0.14% 0.50 to <0.75% 375 1 0.27% 0.69% 0.68% 0.53% 0.75 to <2.50% 954 1.35% 1.26% 0.46% 0.75 to <1.75% 780 1.18% 1.09% 0.33% 1.75 to <2.50% 174 2.09% 2.00% 1.01% 2.50 to <10.00% 423 4 0.95% 4.95% 4.20% 1.33% 2.50 to <5.00% 300 1 0.33% 3.40% 3.14% 1.13% 5.00 to <10.00% 123 3 2.44% 6.76% 6.77% 1.81% 10.00 to <100.00% 58 9 15.52% 17.17% 16.94% 13.41% 10.00 to <20.00% 40 4 10.00% 15.31% 14.75% 10.73% 20.00 to< 30.00% 18 5 27.78% 22.97% 21.81% 23.78% 30.00 to <100.00% 100% (Default) 97 100.00% 100.00% Corporates – SME 0.00 to <0.15% 1,637 4 0.24% 0.07% 0.12% 0.17% 0.00 to <0.10% 160 0.05% 0.06% 0.14% 0.10 to <0.15% 1,477 4 0.27% 0.12% 0.13% 0.20% 0.15 to <0.25% 9,418 12 0.13% 0.17% 0.23% 0.22% 0.25 to <0.50% 4,776 3 0.06% 0.31% 0.35% 0.31% 0.50 to <0.75% 3,095 12 0.39% 0.64% 0.65% 0.58% 0.75 to <2.50% 14,738 90 0.61% 1.48% 1.24% 1.28% 0.75 to <1.75% 12,940 75 0.58% 1.03% 1.12% 1.12% 1.75 to <2.50% 1,798 15 0.83% 2.04% 2.10% 2.01% 2.50 to <10.00% 9,712 193 1.99% 4.16% 4.54% 3.95% 2.50 to <5.00% 6,718 100 1.49% 3.27% 3.43% 3.08% 5.00 to <10.00% 2,994 93 3.11% 6.76% 7.03% 6.22% 10.00 to <100.00% 1,943 135 6.95% 17.50% 15.51% 13.66% 10.00 to <20.00% 1,257 71 5.65% 13.47% 11.75% 10.37% 20.00 to <30.00% 658 63 9.57% 22.59% 21.55% 17.34% 30.00 to <100.00% 28 1 3.57% 40.42% 41.82% 30.90% 100% (Default) 3,000 100.00% 100.00% Corporates – Other 0.00 to <0.15% 5,636 2 0.04% 0.08% 0.09% 0.26% 0.00 to <0.10% 2,611 1 0.04% 0.05% 0.05% 0.07% 0.10 to <0.15% 3,025 1 0.03% 0.12% 0.12% 0.19% 0.15 to <0.25% 11,588 7 0.06% 0.18% 0.22% 0.16% 0.25 to <0.50% 6,331 4 0.06% 0.34% 0.35% 0.20% 0.50 to <0.75% 3,738 10 0.27% 0.67% 0.65% 0.55% 0.75 to <2.50% 16,433 56 0.34% 1.39% 1.28% 0.71% 0.75 to <1.75% 14,071 44 0.31% 1.15% 1.14% 0.60% 1.75 to <2.50% 2,362 12 0.51% 2.02% 2.07% 1.28% 2.50 to <10.00% 9,363 113 1.21% 4.68% 4.58% 2.54% 2.50 to <5.00% 6,349 64 1.01% 3.48% 3.47% 1.91% 5.00 to <10.00% 3,014 49 1.63% 6.80% 6.93% 3.96% 10.00 to <100.00% 1,708 103 6.03% 16.94% 16.18% 9.80% 10.00 to <20.00% 1,178 61 5.18% 14.68% 13.05% 7.70% 20.00 to <30.00% 500 33 6.60% 22.71% 22.21% 13.47% 30.00 to <100.00% 30 9 30.00% 34.27% 38.95% 21.74% 100% (Default) 2,867 100.00% 100.00% ➤TABLE 35: BACKTESTING OF PD ON RETAIL SECURED BY PROPERTY PORTFOLIO (EU CR9) a b c d e f g h Portfolio PD scale 2023 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Retail – Secured by immovable property non-SME 0.00 to <0.15% 499,383 422 0.08% 0.05% 0.08% 0.06% 0.00 to <0.10% 219,410 51 0.02% 0.04% 0.05% 0.09% 0.10 to <0.15% 279,973 371 0.13% 0.12% 0.11% 0.11% 0.15 to <0.25% 81,348 94 0.12% 0.18% 0.19% 0.13% 0.25 to <0.50% 300,847 1,019 0.34% 0.38% 0.36% 0.31% 0.50 to <0.75% 204,964 981 0.48% 0.67% 0.59% 0.35% 0.75 to <2.50% 115,715 1,040 0.90% 1.51% 1.46% 0.96% 0.75 to <1.75% 86,217 643 0.75% 1.25% 1.29% 0.83% 1.75 to <2.50% 29,498 397 1.35% 2.10% 1.96% 1.42% 2.50 to <10.00% 50,184 1,213 2.42% 4.86% 4.47% 3.49% 2.50 to <5.00% 34,226 940 2.75% 3.41% 3.45% 2.45% 5.00 to <10.00% 15,958 273 1.71% 6.54% 6.64% 5.73% 10.00 to <100.00% 17,373 2,543 14.64% 23.63% 21.22% 20.25% 10.00 to <20.00% 11,696 1,136 9.71% 13.52% 13.88% 13.09% 20.00 to <30.00% 3,022 564 18.66% 25.72% 24.32% 24.96% 30.00 to <100.00% 2,655 843 31.75% 37.10% 49.99% 40.22% 100% (Default) 26,684 100.00% 100.00% Retail – Secured by immovable property SME 0.00 to <0.15% 2,495 3 0.12% 0.06% 0.08% 0.12% 0.00 to <0.10% 1,720 0.05% 0.06% 0.07% 0.10 to <0.15% 775 3 0.39% 0.12% 0.13% 0.19% 0.15 to <0.25% 4,806 18 0.37% 0.20% 0.22% 0.23% 0.25 to <0.50% 8,764 30 0.34% 0.34% 0.36% 0.31% 0.50 to <0.75% 10,785 75 0.70% 0.68% 0.57% 0.41% 0.75 to <2.50% 11,223 73 0.65% 1.44% 1.41% 0.73% 0.75 to <1.75% 8,823 45 0.51% 1.22% 1.22% 0.62% 1.75 to <2.50% 2,400 28 1.17% 2.06% 2.10% 1.06% 2.50 to <10.00% 9,383 180 1.92% 4.51% 4.68% 1.98% 2.50 to <5.00% 6,004 85 1.42% 3.40% 3.73% 1.43% 5.00 to <10.00% 3,379 95 2.81% 6.40% 6.36% 2.90% 10.00 to <100.00% 2,142 223 10.41% 18.73% 18.46% 13.23% 10.00 to <20.00% 1,382 95 6.87% 14.08% 13.25% 8.33% 20.00 to <30.00% 546 79 14.47% 24.95% 23.33% 17.34% 30.00 to <100.00% 214 49 22.90% 38.87% 39.63% 28.37% 100% (Default) 2,515 100.00% 100.00% a b c d e f g h Portfolio PD scale 2022 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: which defaulted during the year Retail – Secured by immovable property non-SME 0.00 to <0.15% 503,520 430 0.09% 0.10% 0.08% 0.06% 0.00 to <0.10% 218,757 60 0.03% 0.06% 0.05% 0.06% 0.10 to <0.15% 284,763 370 0.13% 0.11% 0.11% 0.11% 0.15 to <0.25% 83,030 106 0.13% 0.18% 0.19% 0.13% 0.25 to <0.50% 295,890 686 0.23% 0.37% 0.36% 0.30% 0.50 to <0.75% 195,767 889 0.45% 0.59% 0.59% 0.33% 0.75 to <2.50% 110,626 837 0.76% 1.48% 1.46% 0.96% 0.75 to <1.75% 81,291 475 0.58% 1.28% 1.27% 0.84% 1.75 to <2.50% 29,335 362 1.23% 2.00% 1.96% 1.44% 2.50 to <10.00% 48,747 977 2.00% 4.20% 4.50% 3.60% 2.50 to <5.00% 33,125 710 2.14% 3.46% 3.46% 2.44% 5.00 to <10.00% 15,622 267 1.71% 6.52% 6.72% 6.16% 10.00 to <100.00% 20,529 2,275 11.08% 21.94% 19.99% 20.88% 10.00 to <20.00% 14,993 1,064 7.10% 13.13% 13.84% 13.41% 20.00 to <30.00% 2,976 410 13.78% 26.01% 24.18% 25.73% 30.00 to <100.00% 2,560 801 31.29% 44.99% 51.15% 40.97% 100% (Default) 30,727 100.00% 100.00% Retail – Secured by immovable property SME 0.00 to <0.15% 2,670 1 0.04% 0.09% 0.08% 0.13% 0.00 to <0.10% 1,834 0.07% 0.06% 0.09% 0.10 to <0.15% 836 1 0.12% 0.12% 0.13% 0.20% 0.15 to <0.25% 5,642 13 0.23% 0.18% 0.22% 0.23% 0.25 to <0.50% 8,226 20 0.24% 0.36% 0.36% 0.39% 0.50 to <0.75% 11,657 76 0.65% 0.59% 0.57% 0.45% 0.75 to <2.50% 11,400 70 0.61% 1.41% 1.43% 0.77% 0.75 to <1.75% 8,763 44 0.50% 1.21% 1.22% 0.68% 1.75 to <2.50% 2,637 26 0.99% 2.05% 2.11% 1.02% 2.50 to <10.00% 9,642 142 1.47% 4.61% 4.66% 2.04% 2.50 to <5.00% 6,279 73 1.16% 3.47% 3.75% 1.46% 5.00 to <10.00% 3,363 69 2.05% 6.33% 6.36% 3.00% 10.00 to <100.00% 2,141 189 8.83% 18.21% 18.24% 14.49% 10.00 to <20.00% 1,378 77 5.59% 13.35% 13.18% 9.17% 20.00 to <30.00% 577 65 11.27% 23.99% 23.18% 18.73% 30.00 to <100.00% 186 47 25.27% 38.88% 40.44% 31.76% 100% (Default) 3,050 100.00% 100.00% ➤TABLE 36: BACKTESTING OF PD ON OTHER RETAIL PORTFOLIO (EU CR9) a b c d e f g h Portfolio PD scale 2023 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Retail – Qualifying revolving 0.00 to <0.15% 1,806,307 3,321 0.18% 0.05% 0.08% 0.10% 0.00 to <0.10% 853,282 503 0.06% 0.04% 0.03% 0.06% 0.10 to <0.15% 953,025 2,818 0.30% 0.12% 0.13% 0.18% 0.15 to <0.25% 44,292 146 0.33% 0.17% 0.18% 0.26% 0.25 to <0.50% 301,943 2,046 0.68% 0.40% 0.34% 0.49% 0.50 to <0.75% 334,293 2,411 0.72% 0.65% 0.61% 0.64% 0.75 to <2.50% 300,253 7,941 2.64% 1.39% 1.24% 1.61% 0.75 to <1.75% 287,548 7,533 2.62% 1.24% 1.21% 1.55% 1.75 to <2.50% 12,705 408 3.21% 2.17% 2.04% 2.17% 2.50 to <10.00% 197,019 17,305 8.78% 5.00% 5.06% 5.53% 2.50 to <5.00% 105,837 6,072 5.74% 3.49% 3.36% 3.64% 5.00 to <10.00% 91,182 11,233 12.32% 7.15% 7.02% 7.46% 10.00 to <100.00% 59,480 11,242 18.90% 21.51% 19.31% 21.78% 10.00 to <20.00% 41,852 4,035 9.64% 12.75% 12.48% 12.08% 20.00 to <30.00% 7,799 2,345 30.07% 27.01% 28.33% 26.08% 30.00 to <100.00% 9,829 4,862 49.47% 39.83% 41.23% 41.23% 100% (Default) 163,426 100.00% 100.00% Retail – Other SME 0.00 to <0.15% 110,071 470 0.43% 0.07% 0.10% 0.17% 0.00 to <0.10% 45,539 97 0.21% 0.05% 0.07% 0.09% 0.10 to <0.15% 64,532 373 0.58% 0.13% 0.12% 0.22% 0.15 to <0.25% 88,152 405 0.46% 0.22% 0.21% 0.26% 0.25 to <0.50% 72,387 584 0.81% 0.32% 0.35% 0.46% 0.50 to <0.75% 119,906 1,688 1.41% 0.67% 0.60% 0.74% 0.75 to <2.50% 200,419 5,852 2.92% 1.59% 1.54% 2.31% 0.75 to <1.75% 150,213 3,763 2.51% 1.20% 1.35% 1.41% 1.75 to <2.50% 50,206 2,089 4.16% 2.08% 2.11% 4.91% 2.50 to <10.00% 131,857 8,788 6.66% 4.78% 4.94% 5.58% 2.50 to <5.00% 78,592 4,414 5.62% 3.63% 3.82% 4.59% 5.00 to <10.00% 53,265 4,374 8.21% 6.33% 6.58% 7.08% 10.00 to <100.00% 46,778 9,464 20.23% 18.10% 14.78% 17.00% 10.00 to <20.00% 38,697 6,911 17.86% 13.09% 11.66% 12.50% 20.00 to <30.00% 4,996 1,176 23.54% 26.71% 23.42% 25.72% 30.00 to <100.00% 3,085 1,377 44.64% 34.57% 39.83% 41.77% 100% (Default) 99,946 100.00% 100.00% Retail – Other non-SME 0.00 to <0.15% 566,584 369 0.07% 0.06% 0.06% 0.06% 0.00 to <0.10% 428,443 109 0.03% 0.05% 0.04% 0.05% 0.10 to <0.15% 138,141 260 0.19% 0.12% 0.12% 0.16% 0.15 to <0.25% 140,599 485 0.34% 0.19% 0.20% 0.33% 0.25 to <0.50% 360,781 2,141 0.59% 0.39% 0.37% 0.50% 0.50 to <0.75% 134,477 909 0.68% 0.58% 0.64% 0.55% 0.75 to <2.50% 441,969 5,611 1.27% 1.39% 1.30% 1.33% 0.75 to <1.75% 393,960 4,201 1.07% 1.14% 1.23% 1.23% 1.75 to <2.50% 48,009 1,410 2.94% 2.11% 1.89% 3.32% 2.50 to <10.00% 116,131 7,201 6.20% 4.46% 5.07% 6.00% 2.50 to <5.00% 61,355 2,718 4.43% 3.49% 3.65% 3.91% 5.00 to <10.00% 54,776 4,483 8.18% 7.05% 6.65% 8.90% 10.00 to <100.00% 34,398 6,259 18.20% 22.77% 19.90% 20.13% 10.00 to <20.00% 22,795 3,009 13.20% 13.36% 14.04% 15.11% 20.00 to <30.00% 7,743 1,379 17.81% 26.60% 24.70% 21.47% 30.00 to <100.00% 3,860 1,871 48.47% 36.09% 44.91% 40.48% 100% (Default) 152,881 100.00% 100.00% a b c d e f g h Portfolio PD scale 2022 Number of obligors at the end of the year Observed average default rate (%) Exposures weighted average PD (%) Average PD weighted by the number of debtors (%) Average historical annual default rate (%) of which: number of obligors which defaulted during the year Retail – Qualifying revolving 0.00 to <0.15% 1,787,470 3,292 0.18% 0.09% 0.08% 0.09% 0.00 to <0.10% 849,072 515 0.06% 0.03% 0.03% 0.06% 0.10 to <0.15% 938,398 2,777 0.30% 0.12% 0.13% 0.17% 0.15 to <0.25% 57,094 142 0.25% 0.17% 0.18% 0.25% 0.25 to <0.50% 296,988 1,926 0.65% 0.38% 0.34% 0.47% 0.50 to <0.75% 295,878 2,285 0.77% 0.61% 0.60% 0.63% 0.75 to <2.50% 316,764 7,285 2.30% 1.35% 1.24% 1.51% 0.75 to <1.75% 301,731 6,888 2.28% 1.29% 1.20% 1.46% 1.75 to <2.50% 15,033 397 2.64% 1.94% 2.05% 2.08% 2.50 to <10.00% 195,573 16,194 8.28% 4.97% 5.01% 5.23% 2.50 to <5.00% 106,856 5,664 5.30% 3.47% 3.36% 3.45% 5.00 to <10.00% 88,717 10,530 11.87% 7.20% 7.01% 7.01% 10.00 to <100.00% 56,430 10,144 17.98% 22.05% 18.93% 22.03% 10.00 to <20.00% 39,979 3,869 9.68% 12.92% 12.34% 12.29% 20.00 to <30.00% 8,016 2,298 28.67% 24.12% 28.33% 25.72% 30.00 to <100.00% 8,435 3,977 47.15% 48.44% 41.22% 40.48% 100% (Default) 162,034 100.00% 100.00% Retail – Other SME 0.00 to <0.15% 110,444 421 0.38% 0.09% 0.10% 0.15% 0.00 to <0.10% 45,341 72 0.16% 0.07% 0.07% 0.08% 0.10 to <0.15% 65,103 349 0.54% 0.12% 0.12% 0.18% 0.15 to <0.25% 92,257 404 0.44% 0.18% 0.21% 0.25% 0.25 to <0.50% 74,393 489 0.66% 0.33% 0.35% 0.43% 0.50 to <0.75% 122,861 1,550 1.26% 0.60% 0.60% 0.69% 0.75 to <2.50% 208,002 5,354 2.57% 1.50% 1.57% 2.29% 0.75 to <1.75% 150,885 3,305 2.19% 1.14% 1.36% 1.32% 1.75 to <2.50% 57,117 2,049 3.59% 2.07% 2.11% 5.08% 2.50 to <10.00% 124,230 7,117 5.73% 4.92% 4.97% 5.49% 2.50 to <5.00% 74,171 3,985 5.37% 3.68% 3.86% 4.58% 5.00 to <10.00% 50,059 3,132 6.26% 5.83% 6.61% 6.86% 10.00 to <100.00% 45,251 7,851 17.35% 17.44% 14.23% 16.82% 10.00 to <20.00% 38,262 5,846 15.28% 12.60% 11.47% 12.06% 20.00 to <30.00% 4,423 885 20.01% 24.24% 23.68% 25.83% 30.00 to <100.00% 2,566 1,120 43.65% 41.73% 39.14% 41.33% 100% (Default) 102,019 100.00% 100.00% Retail – Other non-SME 0.00 to <0.15% 572,651 357 0.06% 0.10% 0.06% 0.06% 0.00 to <0.10% 433,424 133 0.03% 0.05% 0.04% 0.05% 0.10 to <0.15% 139,227 224 0.16% 0.12% 0.12% 0.16% 0.15 to <0.25% 144,330 393 0.27% 0.19% 0.20% 0.33% 0.25 to <0.50% 365,100 1,653 0.45% 0.38% 0.37% 0.50% 0.50 to <0.75% 136,848 764 0.56% 0.61% 0.64% 0.54% 0.75 to <2.50% 443,439 4,418 1.00% 1.39% 1.30% 1.35% 0.75 to <1.75% 398,325 3,328 0.84% 1.20% 1.23% 1.25% 1.75 to <2.50% 45,114 1,090 2.42% 2.00% 1.89% 3.28% 2.50 to <10.00% 115,346 5,805 5.03% 4.49% 4.97% 6.01% 2.50 to <5.00% 63,102 2,263 3.59% 3.52% 3.67% 3.88% 5.00 to <10.00% 52,244 3,542 6.78% 7.34% 6.55% 9.00% 10.00 to <100.00% 36,149 5,563 15.39% 23.12% 18.94% 20.40% 10.00 to <20.00% 25,797 2,923 11.33% 13.71% 13.54% 15.21% 20.00 to <30.00% 6,573 1,013 15.41% 24.37% 25.01% 22.09% 30.00 to <100.00% 3,779 1,627 43.05% 45.64% 45.24% 39.93% 100% (Default) 188,753 100.00% 100.00% ➤TABLE 37: BACKTESTING OF LGD Portfolio 2023 Arithmetical average of the estimated LGD Historic arithmetic average of the observed LGD Sovereigns and public sector entities 24% 18% Institutions(1) 34% 32% Large corporates(2) 39% 25% Individuals 58% 37% Professionals and SME retail 47% 35% SME corporate 50% 41% Including the Banks, Insurance and Regulated funds & Agency arrangements portfolios. Including the Large corporates, Project financing and Energy and commodity financing portfolios. Portfolio 2022 Arithmetical average of the estimated LGD Historic arithmetic average of the observed LGD Sovereigns and public sector entities 31% 18% Institutions(1) 32% 31% Large corporates(2) 39% 22% Individuals 58% 37% Professionals and SME retail 48% 34% SME corporate 51% 42% Including the Banks, Insurance and Regulated funds & Agency arrangements portfolios. Including the Large corporates, Project financing and Energy and commodity financing portfolios. Internal rating system – sovereign, financial institution, corporate and specialised financing portfolios The IRBA for sovereigns, financial institutions, corporates and specialised financing portfolios is based on a consistent rating procedure in which RISK has the final say regarding the rating assigned to the counterparty and the Global Recovery Rate (GRR) assigned to transactions. Credit Conversion Factors (CCF) of off-balance sheet transactions are automatically assigned according to counterparty and transaction type. The generic process for assigning a rating to each segment is as follows: for large corporates and specialised financing, an analysis is carried out by the unit proposing a rating and a Global Recovery Rate to the Credit Committee, using the rating models and tools developed by RISK. The rating and Global Recovery Rate are validated or revised by the RISK representative during the Credit Committee meeting. The committee decides whether or not to grant or renew a loan and, if applicable, reviews the counterparty rating at least once a year; for financial institutions, the analysis is carried out by analysts in the RISK Function. Counterparty ratings and Global Recovery Rates are determined during review committees by geographical area to ensure comparability between similar banks; for sovereigns, the ratings are proposed by the Economic Research Department and approved at Country Ratings Committee meetings, which take place generally three times per year. The committee comprises members of Executive Management, representatives of Economic Studies and the RISK function; for small and medium-sized companies (other than retail customers), a score is assigned by the RISK analysts. For each of these sub-portfolios, the risk parameters are measured using a model certified and validated by the RISK teams, based mainly on an analysis of the Bank’s historical data. The model is supported as far as possible by tools shared Group-wide to ensure consistent use. The method is supplemented by expert judgement provided it can be justified. However, the expert judgement remains irreplaceable, with each of the scores and each of the GTRs relying on the judgement, which may deviate, subject to justification, from the strict application of the models. The method for assessing risk parameters is based on a set of common principles, and particularly the “two pairs of eyes” principle which requires at least two people, at least one of whom has no commercial involvement, to give their opinion on each counterparty rating and each transaction Global Recovery Rate. The same definition of default is used consistently throughout the Group for each asset class, in accordance with regulations. The chart hereafter presents a breakdown by PD range of non-defaulted loans and commitments for the asset classes Central governments and central institutions and Corporates for all the Group’s business lines, measured using the internal ratings-based approach (see Table 27: Indicative mapping of internal counterparty rating with agency rating scale and average expected PD). This exposure represented EUR 1.091 billion at 31 December 2024 compared with EUR 1,139 billion at 31 December 2023. The majority of commitments are towards borrowers rated as good or excellent quality, reflecting the heavy weighting of large multinational groups and financial institutions in the Bank’s client base. A significant proportion of commitments to non-Investment Grade borrowers are highly structured or secured by high quality guarantees implying a high recovery rate in the event of default. They include export financing covered by export credit insurance written by international agencies, project finance, structured finance and transaction financing. ➤Figure 8: IRBA exposure by PD range – Sovereign, financial institution, corporate and specialised financing portfolios Sovereign, financial institution, corporate and specialised financing portfolios The following table presents the breakdown by PD range of loans and commitments for the asset classes: Central governments and central banks, Institutions and Corporates for all the Group’s business lines using the advanced IRB Approach. This exposure represented EUR 1.104 billion at 31 December 2024, including EUR 1.091 billion of non-defaulted loans and EUR 12 billion of defaulted loans, compared with EUR 1,150 billion at 31 December 2023, including EUR 1,139 billion of non-defaulted loans and EUR 11 billion of defaulted loans. The table also gives the average rates of the main risk parameters in the Basel framework: average probability of default weighted by exposure at default: average PD(6); weighted average Credit Conversion Factor (CCF) for off-balance sheet items: average CCF(7); average Loss Given Default weighted by exposure at default: average LGD(8); average residual maturity (in years) weighted by the exposure at default: average maturity. The average risk weight (average RW) is defined as the ratio between risk-weighted assets and the exposure at default (EAD), resulting from the parameters defined above. The column “Estimated loss amount” presents the expected loss at a one-year horizon. ➤TABLE 38: IRBA EXPOSURE BY PD SCALE AND ASSET CLASS – CENTRAL BANK, CENTRAL GOVERNMENT AND INSTITUTION PORTFOLIO (EU CR6) a b c d e f g h i j k l m In millions of euros PD range 31 December 2024 Balance sheet exposure Off-balance sheet exposure before CCF Weighted average CCF EAD Weighted average PD Number of obligors Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of expected losses(2) Value adjustments and provisions(2) Central governments and central banks 0.00 to < 0.15% 353,653 593 30% 354,570 0.01% 100 to 1,000 2% 2 1,350 0% 2 0.00 to < 0.10% 353,068 593 30% 353,984 0.01% 100 to 1,000 2% 2 1,316 0% 1 0.10 to < 0.15% 585 71% 585 0.10% 0 to 100 10% 2 34 6% 0.15 to < 0.25% 1,573 151 55% 1,656 0.20% 0 to 100 13% 2 184 11% 0.25 to < 0.50% 3,640 710 55% 4,031 0.29% 0 to 100 21% 3 1,007 25% 2 0.50 to < 0.75% 1,271 759 55% 1,688 0.69% 0 to 100 19% 2 546 32% 2 0.75 to < 2.50% 856 206 64% 989 1.03% 0 to 100 14% 4 268 27% 1 0.75 to < 1.75% 852 205 64% 984 1.03% 0 to 100 14% 4 263 27% 1 1.75 to < 2.5% 4 1 61% 4 1.85% 0 to 100 46% 1 5 109% 2.50 to < 10% 523 211 55% 639 7.20% 0 to 100 6% 4 188 29% 3 2.5 to < 5% 58 174 55% 153 3.56% 0 to 100 4% 5 23 15% 5 to < 10% 465 37 55% 486 8.35% 0 to 100 7% 4 165 34% 3 10 to < 100% 456 3 54% 458 20.77% 0 to 100 13% 2 315 69% 13 10 to < 20% 93 55% 93 16.70% 0 to 100 3% 5 11 12% 20 to < 30% 363 3 54% 365 21.81% 0 to 100 15% 1 304 83% 12 30 to < 100% 100% (Default) 62 55% 63 100.00% 0 to 100 25% 4 19 29% 16 SUB-TOTAL 362,034 2,633 50% 364,093 0.08% 3% 2 3,877 1% 40 (32) Institutions 0.00 to < 0.15% 26,729 17,122 42% 33,933 0.04% 1,000 to 10,000 26% 3 6,944 20% 4 0.00 to < 0.10% 25,254 15,400 41% 31,662 0.04% 1,000 to 10,000 26% 3 6,382 20% 3 0.10 to < 0.15% 1,475 1,722 46% 2,271 0.12% 100 to 1,000 29% 1 562 25% 1 0.15 to < 0.25% 1,430 1,045 41% 1,864 0.17% 100 to 1,000 57% 2 765 41% 2 0.25 to < 0.50% 3,500 658 32% 3,714 0.38% 100 to 1,000 14% 1 769 21% 2 0.50 to < 0.75% 410 134 39% 467 0.61% 100 to 1,000 35% 3 283 61% 1 0.75 to < 2.50% 1,818 2,243 79% 3,601 1.08% 100 to 1,000 16% 2 1,216 34% 6 0.75 to < 1.75% 1,680 2,156 81% 3,431 1.04% 100 to 1,000 15% 2 1,109 32% 6 1.75 to < 2.5% 137 87 37% 170 2.04% 100 to 1,000 23% 1 107 63% 1 2.50 to < 10% 508 1,416 35% 994 3.57% 100 to 1,000 35% 2 649 65% 12 2.5 to < 5% 435 1,367 35% 915 3.15% 100 to 1,000 36% 2 544 59% 10 5 to < 10% 73 49 29% 80 8.41% 100 to 1,000 30% 3 106 133% 2 10 to < 100% 254 193 54% 366 17.04% 100 to 1,000 23% 4 407 111% 18 10 to < 20% 160 49 43% 190 11.65% 100 to 1,000 8% 4 98 52% 2 20 to < 30% 93 144 57% 176 22.87% 100 to 1,000 39% 3 309 176% 16 30 to < 100% 100% (Default) 184 38% 184 100.00% 0 to 100 97% 2 10 5% 177 SUB-TOTAL 34,833 22,810 45% 45,122 0.79% 26% 2 11,043 24% 222 (206) TOTAL 396,867 25,444 409,215 14,920 4% 263 (237) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024). a b c d e f g h i j k l m In millions of euros PD range 31 December 2023 Balance sheet exposure Off-balance sheet exposure before CCF Weighted average CCF EAD Weighted average PD Number of obligors Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of expected losses(2) Value adjustments and provisions(2) Central governments and central banks 0.00 to < 0.15% 422,378 875 36% 423,540 0.01% 100 to 1,000 2% 2 1,774 0% 2 0.00 to < 0.10% 418,230 875 36% 419,392 0.01% 100 to 1,000 1% 2 850 0% 1 0.10 to < 0.15% 4,148 0% 4,148 0.13% 0 to 100 19% 3 924 22% 1 0.15 to < 0.25% 1,304 3% 1,304 0.19% 0 to 100 11% 2 177 14% 0.25 to < 0.50% 2,921 614 55% 3,259 0.29% 0 to 100 21% 2 913 28% 2 0.50 to < 0.75% 1,127 757 55% 1,544 0.69% 0 to 100 17% 2 579 38% 2 0.75 to < 2.50% 512 361 55% 710 1.30% 0 to 100 11% 3 200 28% 1 0.75 to < 1.75% 501 361 55% 699 1.29% 0 to 100 11% 3 191 27% 1 1.75 to < 2.5% 11 23% 11 1.88% 0 to 100 33% 1 9 79% 2.50 to < 10% 456 263 55% 601 8.33% 0 to 100 7% 4 252 42% 4 2.5 to < 5% 3 2 55% 4 3.07% 0 to 100 2% 2 8% 5 to < 10% 453 261 55% 597 8.36% 0 to 100 7% 4 252 42% 4 10 to < 100% 556 83 55% 604 19.48% 0 to 100 12% 2 433 72% 15 10 to < 20% 152 83 55% 199 14.76% 0 to 100 3% 5 31 16% 1 20 to < 30% 405 57% 405 21.81% 0 to 100 16% 1 402 99% 14 30 to < 100% 100% (Default) 86 47 55% 113 100.00% 0 to 100 14% 5 32 28% 15 SUB-TOTAL 429,341 3,001 50% 431,674 0.09% 2% 2 4,360 1% 40 (29) Institutions 0.00 to < 0.15% 23,355 12,145 44% 28,926 0.04% 1,000 to 10,000 25% 3 4,589 16% 3 0.00 to < 0.10% 22,421 11,021 44% 27,453 0.04% 1,000 to 10,000 25% 3 4,197 15% 3 0.10 to < 0.15% 934 1,124 46% 1,472 0.12% 100 to 1,000 32% 2 392 27% 1 0.15 to < 0.25% 1,430 1,171 45% 1,961 0.18% 100 to 1,000 39% 2 647 33% 1 0.25 to < 0.50% 1,803 1,747 68% 2,989 0.32% 100 to 1,000 18% 2 639 21% 2 0.50 to < 0.75% 361 184 36% 432 0.64% 100 to 1,000 19% 3 148 34% 1 0.75 to < 2.50% 1,789 578 34% 1,993 1.42% 100 to 1,000 28% 2 1,165 58% 8 0.75 to < 1.75% 989 240 42% 1,090 1.06% 100 to 1,000 27% 2 502 46% 3 1.75 to < 2.5% 800 338 29% 904 1.87% 100 to 1,000 29% 2 663 73% 5 2.50 to < 10% 489 363 43% 644 5.29% 100 to 1,000 36% 2 460 71% 9 2.5 to < 5% 318 239 38% 409 3.34% 100 to 1,000 44% 2 377 92% 6 5 to < 10% 171 124 53% 235 8.71% 100 to 1,000 22% 4 83 35% 4 10 to < 100% 44 144 51% 117 17.74% 100 to 1,000 47% 2 313 267% 10 10 to < 20% 14 93 53% 63 12.44% 100 to 1,000 40% 3 133 212% 3 20 to < 30% 30 51 48% 55 23.83% 100 to 1,000 54% 1 180 331% 7 30 to < 100% 100% (Default) 181 20% 181 100% 0 to 100 97% 3 2 1% 168 SUB-TOTAL 29,452 16,331 47% 37,244 0.79% 25% 3 7,963 21% 203 (258) TOTAL 458,792 19,332 468,918 12,323 3% 243 (287) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024). ➤TABLE 39: IRBA EXPOSURE BY PD SCALE AND ASSET CLASS CORPORATE PORTOFOLIOS (EU CR6) a b c d e f g h i j k l m In millions of euros PD range 31 December 2024 Balance sheet exposure Off-balance sheet exposure before CCF Weighted average CCF EAD Weighted average PD Number of obligors Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of anticipated losses(2) Value adjustments and provisions(2) Corporates – Specialised financing 0.00 to < 0.15% 9,319 3,903 53% 11,374 0.05% 100 to 1,000 31% 3 1,860 16% 1 0.00 to < 0.10% 8,440 2,957 52% 9,989 0.04% 100 to 1,000 32% 3 1,557 16% 1 0.10 to < 0.15% 879 946 53% 1,385 0.12% 0 to 100 19% 4 303 22% 0.15 to < 0.25% 10,493 3,231 59% 12,378 0.21% 100 to 1,000 25% 4 4,233 34% 7 0.25 to < 0.50% 14,117 5,054 58% 17,029 0.39% 100 to 1,000 23% 3 7,558 44% 16 0.50 to < 0.75% 3,803 2,196 56% 5,062 0.68% 100 to 1,000 22% 4 2,874 57% 8 0.75 to < 2.50% 12,149 5,266 55% 15,054 1.31% 1,000 to 10,000 24% 4 7,736 51% 7 0.75 to < 1.75% 10,794 4,440 56% 13,275 1.21% 1,000 to 10,000 23% 4 6,300 47% 6 1.75 to < 2.5% 1,355 826 51% 1,779 2.03% 100 to 1,000 28% 3 1,437 81% 1 2.50 to < 10% 6,251 1,825 59% 7,330 4.34% 100 to 1,000 28% 3 3,743 51% 44 2.5 to < 5% 4,605 1,347 55% 5,355 3.37% 100 to 1,000 29% 3 3,096 58% 23 5 to < 10% 1,646 478 69% 1,976 6.98% 100 to 1,000 26% 3 646 33% 21 10 to < 100% 1,405 464 55% 1,660 16.21% 100 to 1,000 23% 3 657 40% 31 10 to < 20% 1,056 346 55% 1,247 14.08% 0 to 100 26% 3 246 20% 19 20 to < 30% 337 117 56% 401 22.27% 0 to 100 13% 5 403 100% 12 30 to < 100% 12 12 35.36% 0 to 100 12% 1 8 68% 1 100% (Default) 1,743 81 35% 1,792 100.00% 100 to 1,000 51% 2 1,156 64% 911 SUB-TOTAL 59,281 22,019 56% 71,680 3.78% 25% 3 29,818 42% 1,024 (978) SME corporates 0.00 to < 0.15% 1,853 755 54% 2,269 0.07% 100 to 1,000 31% 4 620 27% 1 0.00 to < 0.10% 1,265 399 58% 1,503 0.05% 100 to 1,000 29% 3 260 17% 0.10 to < 0.15% 588 355 49% 765 0.12% 100 to 1,000 34% 4 360 47% 0.15 to < 0.25% 2,361 833 34% 2,733 0.21% 1,000 to 10,000 30% 2 716 26% 2 0.25 to < 0.50% 6,173 1,267 41% 6,711 0.30% 20,000 to 30,000 29% 3 2,373 35% 6 0.50 to < 0.75% 1,480 313 34% 1,650 0.66% 1,000 to 10,000 24% 4 728 44% 3 0.75 to < 2.50% 10,594 2,408 48% 11,824 1.36% 20,000 to 30,000 31% 3 7,942 67% 52 0.75 to < 1.75% 7,022 1,691 49% 7,875 1.03% 10 000 à 20 000 28% 3 4,112 52% 22 1.75 to < 2.5% 3,572 717 47% 3,949 2.03% 1,000 to 10,000 38% 3 3,830 97% 30 2.50 to < 10% 4,129 4,735 36% 5,869 4.36% 10,000 to 20,000 32% 3 4,128 70% 80 2.5 to < 5% 2,631 4,416 36% 4,238 3.36% 1,000 to 10,000 33% 3 2,666 63% 47 5 to < 10% 1,498 319 40% 1,631 6.97% 1,000 to 10,000 29% 3 1,462 90% 32 10 to < 100% 1,306 130 52% 1,384 17.12% 1,000 to 10,000 31% 3 1,877 136% 70 10 to < 20% 844 78 58% 898 12.72% 1,000 to 10,000 33% 4 1,296 144% 38 20 to < 30% 419 51 43% 443 23.53% 1,000 to 10,000 27% 2 531 120% 28 30 to < 100% 42 1 77% 43 43.17% 100 to 1,000 25% 4 50 116% 5 100% (Default) 1,640 151 42% 1,705 100.00% 1,000 to 10,000 47% 2 1,415 83% 822 SUB-TOTAL 29,536 10,593 41% 34,145 7.02% 30% 3 19,799 58% 1,035 (986) Other corporates 0.00 to < 0.15% 82,647 207,032 46% 178,897 0.05% 10,000 to 20,000 41% 2 40,908 23% 39 0.00 to < 0.10% 57,625 168,997 46% 135,442 0.03% 10 000 à 20 000 42% 2 25,844 19% 19 0.10 to < 0.15% 25,022 38,035 48% 43,455 0.12% 1,000 to 10,000 39% 2 15,063 35% 20 0.15 to < 0.25% 31,356 40,997 42% 48,748 0.21% 10 000 à 20 000 38% 2 21,079 43% 39 0.25 to < 0.50% 28,767 27,445 39% 39,791 0.37% 20,000 to 30,000 33% 3 20,534 52% 50 0.50 to < 0.75% 8,276 7,122 41% 11,354 0.66% 10,000 to 20,000 30% 3 7,005 62% 23 0.75 to < 2.50% 43,505 32,946 44% 58,382 1.37% 40,000 to 50,000 30% 3 52,134 89% 346 0.75 to < 1.75% 28,008 22,072 42% 37,634 1.03% 20,000 to 30,000 30% 3 25,704 68% 111 1.75 to < 2.5% 15,497 10,874 47% 20,748 1.98% 10,000 to 20,000 31% 2 26,430 127% 235 2.50 to < 10% 16,635 16,200 41% 23,468 4.55% 10,000 to 20,000 30% 3 31,951 136% 256 2.5 to < 5% 10,985 11,975 42% 16,098 3.43% 10,000 to 20,000 30% 3 23,375 145% 162 5 to < 10% 5,650 4,226 40% 7,370 7.00% 1,000 to 10,000 29% 3 8,576 116% 94 10 to < 100% 5,849 2,821 52% 7,330 18.04% 1,000 to 10,000 26% 2 9,734 133% 327 10 to < 20% 3,609 2,034 53% 4,704 15.27% 1,000 to 10,000 31% 3 7,537 160% 223 20 to < 30% 2,145 779 49% 2,528 22.58% 1,000 to 10,000 18% 1 2,141 85% 100 30 to < 100% 95 8 38% 98 34.09% 100 to 1,000 10% 2 56 58% 3 100% (Default) 6,374 1,793 41% 7,139 100.00% 1,000 to 10,000 50% 2 5,012 70% 3,772 SUB-TOTAL 223,409 336,356 45% 375,110 2.87% 37% 2 188,357 50% 4,851 (4,455) TOTAL 312,226 368,968 480,935 237,974 49% 6,910 (6,419) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024). a b c d e f g h i j k l m In millions of euros PD range 31 December 2023 Balance sheet exposure Off-balance sheet exposure before CCF Weighted average CCF EAD Weighted average PD Number of obligors Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of anticipated losses(2) Value adjustments and provisions(2) Corporates – Specialised financing 0.00 to < 0.15% 5,732 3,944 50% 7,777 0.08% 100 to 1,000 12% 4 814 10% 1 0.00 to < 0.10% 3,276 2,534 49% 4,606 0.05% 100 to 1,000 13% 4 516 11% 0.10 to < 0.15% 2,456 1,411 51% 3,171 0.12% 100 to 1,000 9% 4 299 9% 0.15 to < 0.25% 6,366 1,535 52% 7,163 0.18% 100 to 1,000 12% 4 1,230 17% 2 0.25 to < 0.50% 14,129 5,235 53% 16,941 0.34% 1,000 to 10,000 15% 4 4,330 26% 9 0.50 to < 0.75% 5,950 2,453 63% 7,508 0.69% 100 to 1,000 17% 3 3,217 43% 9 0.75 to < 2.50% 13,006 6,035 57% 16,438 1.35% 1,000 to 10,000 14% 3 7,234 44% 30 0.75 to < 1.75% 10,365 5,241 57% 13,339 1.18% 1,000 to 10,000 14% 3 5,880 44% 21 1.75 to < 2.5% 2,642 793 57% 3,100 2.09% 100 to 1,000 13% 3 1,354 44% 9 2.50 to < 10% 5,874 2,818 54% 7,405 4.95% 1,000 to 10,000 12% 3 3,404 46% 40 2.5 to < 5% 3,219 1,432 52% 3,971 3.40% 100 to 1,000 13% 3 1,834 46% 17 5 to < 10% 2,655 1,386 56% 3,434 6.76% 100 to 1,000 10% 4 1,571 46% 22 10 to < 100% 2,740 2,399 54% 4,036 17.17% 100 to 1,000 8% 4 1,537 38% 60 10 to < 20% 1,843 2,234 54% 3,052 15.31% 100 to 1,000 5% 4 949 31% 25 20 to < 30% 896 165 53% 984 22.97% 0 to 100 15% 2 588 60% 35 30 to < 100% 100% (default) 1,622 182 67% 1,769 100.00% 100 à 1 000 46% 3 1,151 65% 823 SUB-TOTAL 55,418 24,601 55% 69,038 4.61% 13% 3 22,918 33% 972 (954) SME corporates 0.00 to < 0.15% 1,608 2,276 48% 2,703 0.07% 1,000 to 10,000 37% 3 867 32% 1 0.00 to < 0.10% 915 1,863 48% 1,818 0.05% 100 to 1,000 38% 3 515 28% 0.10 to < 0.15% 693 413 46% 885 0.12% 100 to 1,000 35% 3 352 40% 0.15 to < 0.25% 1,515 786 35% 1,807 0.17% 1,000 to 10,000 25% 2 445 25% 1 0.25 to < 0.50% 6,616 1,879 38% 7,362 0.31% 20,000 to 30,000 26% 3 2,444 33% 6 0.50 to < 0.75% 2,020 477 43% 2,233 0.64% 1,000 to 10,000 22% 4 964 43% 3 0.75 to < 2.50% 13,157 2,333 45% 14,236 1.48% 30,000 to 40,000 27% 3 9,463 66% 55 0.75 to < 1.75% 7,069 1,757 44% 7,864 1.03% 10,000 to 20,000 29% 3 4,307 55% 23 1.75 to < 2.5% 6,088 575 48% 6,371 2.04% 10,000 to 20,000 25% 2 5,156 81% 32 2.50 to < 10% 4,538 8,283 37% 7,607 4.16% 10,000 to 20,000 32% 3 5,106 67% 101 2.5 to < 5% 2,885 7,726 36% 5,671 3.27% 1,000 to 10,000 34% 3 3,360 59% 64 5 to < 10% 1,654 557 48% 1,936 6.76% 1,000 to 10,000 27% 3 1,745 90% 37 10 to < 100% 1,375 131 45% 1,445 17.50% 1,000 to 10,000 27% 3 1,685 117% 66 10 to < 20% 861 66 45% 894 13.47% 1,000 to 10,000 28% 3 1,056 118% 32 20 to < 30% 470 63 45% 505 22.59% 1,000 to 10,000 25% 2 569 113% 29 30 to < 100% 44 1 82% 45 40.42% 100 to 1,000 26% 4 60 132% 5 100% (Default) 1,986 117 38% 2,033 100.00% 1,000 to 10,000 50% 2 995 49% 977 SUB-TOTAL 32,815 16,280 40% 39,427 7.24% 28% 3 21,967 56% 1,209 (1,176) Other corporates 0.00 to < 0.15% 92,209 188,099 47% 181,047 0.08% 10,000 to 20,000 33% 2 41,916 23% 46 0.00 to < 0.10% 45,780 149,087 48% 117,093 0.05% 1,000 to 10,000 32% 2 23,109 20% 20 0.10 to < 0.15% 46,429 39,012 45% 63,954 0.12% 1,000 to 10,000 34% 2 18,807 29% 25 0.15 to < 0.25% 26,881 33,494 43% 41,366 0.18% 10,000 to 20,000 35% 2 16,388 40% 27 0.25 to < 0.50% 38,033 36,937 41% 53,582 0.34% 30,000 to 40,000 34% 2 27,272 51% 61 0.50 to < 0.75% 10,323 9,030 40% 14,099 0.67% 1,000 to 10,000 28% 3 8,423 60% 26 0.75 to < 2.50% 32,864 23,352 42% 43,235 1.39% 30,000 to 40,000 27% 2 29,105 67% 160 0.75 to < 1.75% 23,249 17,809 43% 31,306 1.15% 20,000 to 30,000 27% 2 19,410 62% 97 1.75 to < 2.5% 9,615 5,543 39% 11,929 2.02% 1,000 to 10,000 26% 2 9,695 81% 64 2.50 to < 10% 20,748 14,362 45% 27,024 4.68% 20,000 to 30,000 30% 3 36,320 134% 213 2.5 to < 5% 13,623 8,943 42% 17,248 3.48% 10,000 to 20,000 30% 2 25,124 146% 185 5 to < 10% 7,125 5,419 48% 9,777 6.80% 1,000 to 10,000 30% 3 11,196 115% 28 10 to < 100% 5,194 3,761 49% 7,055 16.94% 1,000 to 10,000 27% 3 9,946 141% 322 10 to < 20% 3,758 2,889 48% 5,172 14.68% 1,000 to 10,000 25% 3 6,788 131% 189 20 to < 30% 1,373 866 51% 1,815 22.71% 1,000 to 10,000 31% 3 3,060 169% 128 30 to < 100% 63 5 59% 68 34.27% 0 to 100 22% 3 98 144% 5 100% (Default) 6,272 966 40% 6,677 100.00% 1,000 to 10,000 45% 2 4,170 62% 3,391 SUB-TOTAL 232,524 310,003 45% 374,086 2.73% 32% 2 173,540 46% 4,246 (4,449) TOTAL 320,758 350,884 482,551 218,425 45% 6,428 (6,579) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024). Most of the Group’s central government and central bank counterparties are of very high credit quality and based in developed countries, meaning that they have very good internal ratings and very low average Loss Given Default. The majority of the Group’s corporate commitments concerns counterparties of excellent or good quality, reflecting the large part of multinationals in BNP Paribas’ customer base. Other commitments are mainly structured transactions or transactions secured by high-quality assets, reflected in their average LGD levels. On average, the probability of default excluding counterparty default stands at 0.64%. It is 1.11% for Corporates. ➤TABLE 40: AVERAGE PD AND LGD OF THE CORPORATE ASSET CLASS BY GEOGRAPHIC REGION In millions of euros 31 December 2024 Non-defaulted exposure Average PD Average LGD Europe(1) 444,887 1.23% 33% of which France 131,741 1.18% 36% of which Belgium 68,961 2.12% 20% of which Luxembourg 22,263 1.26% 29% of which Italy 51,171 1.05% 39% North America 135,962 0.92% 38% Asia Pacific 57,830 0.65% 40% Rest of the World 30,733 1.10% 29% TOTAL 669,412 1.11% 35% Within the European Union and the European Free Trade Association (EFTA). In millions of euros 31 December 2023 Non-defaulted exposure Average PD Average LGD Europe(1) 460,921 1.28% 28% of which France 144,717 1.21% 30% of which Belgium 69,107 1.89% 20% of which Luxembourg 24,002 1.07% 29% of which Italy 56,657 0.99% 34% North America 114,632 1.16% 29% Asia Pacific 52,751 0.98% 34% Rest of the World 32,192 1.05% 30% TOTAL 660,497 1.23% 29% Within the European Union and the European Free Trade Association (EFTA). Internal rating system specific to retail customers Retail customers are characterised by a high degree of granularity, small unit volumes and a standard risk profile. The majority of retail borrowers are assigned a behavioural score which serves as a basis to determine the probability of default and, for each transaction, the Global Recovery Rate (GRR) and exposure at default (EAD). These parameters are calculated every month on the basis of the most up-to-date information. They are supplemented by different scores that are made available to the commercial function. The latter has no involvement in determining risk parameters. These methods are used consistently for all retail customers. The general principles of the rating system are set out in the Rating System paragraph in the section Credit Risk Management Policy. Scoring techniques are used to assign retail customers to risk groups presenting the same default risk characteristics. This also applies to the other credit risk parameters: EAD and LGD. The chart below shows a breakdown by PD range of non-defaulted loans and commitments in the retail book for all the Group’s business lines, measured using the internal ratings-based approach (see Table 27: Indicative mapping of internal counterparty rating with agency rating scale and average PD). These exposures represented EUR 275 billion at 31 December 2024, stable compared with 31 December 2023. ➤Figure 9: IRBA exposure by PD range – Retail portfolio Retail portfolio The following table gives the breakdown by PD range of the retail loans and commitments for all of the Group’s business lines using the advanced IRB Approach. Total exposure represented EUR 282 billion as at 31 December 2024 compared with EUR 282 billion as at 31 December 2023. ➤TABLE 41: IRBA EXPOSURE BY PD SCALE AND ASSET CLASS – RETAIL GUARANTEED BY REAL PROPERTY PORTFOLIO (EU CR6) a b c d e f h i j k l m In millions of euros PD range 31 December 2024 Balance sheet exposure Off-balance sheet exposure Weighted average CCF EAD Weighted average PD Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of anticipated losses(2) Value adjustments and provisions(2) Retail – Secured by residential property 0.00 to < 0.15% 87,313 1,357 100% 88,672 0.05% 15% 5 2,095 2% 7 0.00 to < 0.10% 77,557 1,202 100% 78,759 0.04% 15% 5 1,639 2% 5 0.10 to < 0.15% 9,757 154 101% 9,913 0.12% 15% 5 456 5% 2 0.15 to < 0.25% 24,539 534 101% 25,079 0.18% 17% 5 1,820 7% 8 0.25 to < 0.50% 32,459 483 100% 32,943 0.38% 15% 5 3,305 10% 18 0.50 to < 0.75% 4,914 140 101% 5,056 0.67% 17% 5 851 17% 6 0.75 to < 2.50% 21,859 546 100% 22,405 1.51% 24% 5 9,324 42% 80 0.75 to < 1.75% 15,006 459 100% 15,466 1.25% 26% 5 6,428 42% 53 1.75 to < 2.5% 6,852 87 100% 6,939 2.10% 18% 5 2,896 42% 26 2.50 to < 10% 7,219 85 100% 7,305 4.86% 21% 5 5,348 73% 71 2.5 to < 5% 3,848 59 100% 3,908 3.41% 22% 5 2,571 66% 29 5 to < 10% 3,371 26 100% 3,397 6.54% 19% 5 2,777 82% 43 10 to < 100% 2,599 32 100% 2,632 23.63% 23% 5 3,379 128% 140 10 to < 20% 1,455 22 100% 1,478 13.52% 23% 5 1,831 124% 46 20 to < 30% 53 1 100% 54 25.72% 20% 5 70 129% 3 30 to < 100% 1,091 9 100% 1,100 37.10% 22% 5 1,478 134% 91 100% (default) 1,421 5 96% 1,426 100.00% 19% 4 1,237 87% 427 SUB-TOTAL 182,323 3,183 100% 185,517 1.61% 17% 5 27,360 15% 756 (610) Retail – Secured by commercial property 0.00 to < 0.15% 1,037 23 53% 1,053 0.06% 23% 4 30 3% 0.00 to < 0.10% 961 15 62% 973 0.05% 23% 5 26 3% 0.10 to < 0.15% 77 8 34% 80 0.12% 18% 4 4 4% 0.15 to < 0.25% 440 78 28% 476 0.20% 20% 4 34 7% 0.25 to < 0.50% 2,797 256 35% 2,921 0.34% 20% 4 286 10% 2 0.50 to < 0.75% 1,160 95 38% 1,206 0.68% 20% 4 201 17% 2 0.75 to < 2.50% 2,495 226 39% 2,603 1.44% 17% 4 624 24% 7 0.75 to < 1.75% 1,836 179 41% 1,925 1.22% 17% 4 409 21% 4 1.75 to < 2.5% 659 47 32% 679 2.06% 18% 4 215 32% 3 2.50 to < 10% 1,924 150 38% 1,991 4.51% 18% 4 931 47% 16 2.5 to < 5% 1,211 91 42% 1,255 3.40% 18% 4 526 42% 8 5 to < 10% 713 59 31% 735 6.40% 17% 4 405 55% 8 10 to < 100% 442 21 46% 454 18.73% 22% 4 446 98% 19 10 to < 20% 315 18 47% 325 14.08% 22% 4 319 98% 10 20 to < 30% 77 3 32% 78 24.95% 16% 4 63 81% 3 30 to < 100% 50 1 81% 51 38.87% 26% 4 63 124% 5 100% (default) 244 3 37% 254 100.00% 36% 3 247 97% 84 SUB-TOTAL 10,539 852 37% 10,959 4.44% 19% 4 2,798 26% 130 (90) TOTAL 192,862 4,035 196,476 30,158 15% 886 (700) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024). a b c d e f h i j k l m In millions of euros PD range 31 December 2023 Balance sheet exposure Off-balance sheet exposure Weighted average CCF EAD Weighted average PD Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of anticipated losses(2) Value adjustments and provisions(2) Retail – Secured by residential property 0.00 to < 0.15% 67 217 1 488 100 % 68 707 0,10 % 10 % 5 2 107 3 % 7 0.00 to < 0.10% 15 183 292 100 % 15 475 0,06 % 13 % 5 392 3 % 1 0.10 to < 0.15% 52 034 1 197 100 % 53 232 0,11 % 9 % 5 1 715 3 % 5 0.15 to < 0.25% 16 986 427 102 % 17 420 0,18 % 16 % 5 1 156 7 % 5 0.25 to < 0.50% 43 548 672 100 % 44 220 0,37 % 13 % 5 4 478 10 % 22 0.50 to < 0.75% 24 280 433 101 % 24 715 0,59 % 13 % 5 3 389 14 % 19 0.75 to < 2.50% 17 269 243 100 % 17 511 1,48 % 14 % 5 4 765 27 % 36 0.75 to < 1.75% 12 406 139 99 % 12 544 1,28 % 14 % 5 3 230 26 % 23 1.75 to < 2.5% 4 863 103 100 % 4 967 2,00 % 13 % 5 1 535 31 % 13 2.50 to < 10% 7 747 232 101 % 7 980 4,20 % 14 % 5 3 930 49 % 48 2.5 to < 5% 5 842 212 101 % 6 056 3,46 % 13 % 5 2 747 45 % 28 5 to < 10% 1 905 19 100 % 1 924 6,52 % 16 % 5 1 183 61 % 19 10 to < 100% 2 877 35 100 % 2 913 21,94 % 14 % 5 2 486 85 % 89 10 to < 20% 1 839 22 100 % 1 862 13,13 % 14 % 5 1 535 82 % 33 20 to < 30% 409 4 100 % 413 26,01 % 13 % 5 401 97 % 14 30 to < 100% 628 10 100 % 638 44,99 % 15 % 5 550 86 % 42 100% (default) 1 610 7 95 % 1 617 100,00 % 24 % 4 862 53 % 457 SUB-TOTAL 181 533 3 537 100 % 185 085 1,76 % 12 % 5 23 174 13 % 682 (578) Retail – Secured by commercial property 0.00 to < 0.15% 186 22 35 % 198 0,09 % 22 % 4 8 4 % 0.00 to < 0.10% 96 10 32 % 102 0,07 % 25 % 4 4 4 % 0.10 to < 0.15% 90 11 39 % 97 0,12 % 18 % 4 4 4 % 0.15 to < 0.25% 366 75 32 % 403 0,18 % 18 % 4 26 6 % 0.25 to < 0.50% 2 586 248 35 % 2 708 0,36 % 21 % 4 308 11 % 2 0.50 to < 0.75% 2 329 106 48 % 2 390 0,59 % 25 % 5 465 19 % 3 0.75 to < 2.50% 2 442 242 37 % 2 552 1,41 % 17 % 4 606 24 % 6 0.75 to < 1.75% 1 850 192 36 % 1 935 1,21 % 16 % 4 386 20 % 4 1.75 to < 2.5% 592 50 42 % 617 2,05 % 21 % 4 220 36 % 3 2.50 to < 10% 1 624 135 33 % 1 681 4,61 % 17 % 4 801 48 % 14 2.5 to < 5% 977 89 33 % 1 012 3,47 % 18 % 4 438 43 % 6 5 to < 10% 647 46 34 % 669 6,33 % 17 % 4 363 54 % 7 10 to < 100% 468 18 59 % 480 18,21 % 24 % 4 526 110 % 21 10 to < 20% 337 14 60 % 347 13,35 % 25 % 4 378 109 % 11 20 to < 30% 70 4 48 % 72 23,99 % 17 % 4 62 87 % 3 30 to < 100% 61 91 % 62 38,88 % 28 % 5 86 139 % 7 100% (default) 252 6 42 % 263 100,00 % 36 % 3 140 53 % 92 SUB-TOTAL 10 254 853 37 % 10 675 4,58 % 21 % 4 2 880 27 % 138 (93) TOTAL 191 787 4 390 195 760 26 054 13 % 820 (671) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024). ➤TABLE 42: IRBA EXPOSURE BY PD SCALE AND ASSET CLASS – OTHER RETAIL PORTFOLIOS (EU CR6) a b c d e f h i j k l m In millions of euros PD range 31 December 2024 Balance sheet exposure Off-balance sheet exposure Weighted average CCF EAD Weighted average PD Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of anticipated losses(2) Value adjustments and provisions(2) Retail – Revolving exposures 0.00 to < 0.15% 33 1,775 73% 1,843 0.05% 33% 1 24 1% 0.00 to < 0.10% 28 1,655 73% 1,706 0.04% 33% 1 20 1% 0.10 to < 0.15% 4 120 72% 137 0.12% 39% 1 4 3% 0.15 to < 0.25% 98 3,619 72% 2,876 0.17% 29% 1 92 3% 1 0.25 to < 0.50% 245 1,334 44% 898 0.40% 34% 1 67 7% 1 0.50 to < 0.75% 4 372 65% 248 0.65% 25% 1 20 8% 0.75 to < 2.50% 421 718 50% 894 1.39% 41% 1 205 23% 5 0.75 to < 1.75% 361 636 48% 748 1.24% 41% 1 159 21% 4 1.75 to < 2.5% 61 82 67% 147 2.17% 40% 1 46 32% 1 2.50 to < 10% 1,498 442 43% 1,805 5.00% 46% 1 1,140 63% 42 2.5 to < 5% 858 363 41% 1,063 3.49% 43% 1 503 47% 16 5 to < 10% 640 79 49% 742 7.15% 49% 1 637 86% 26 10 to < 100% 612 66 41% 701 21.51% 50% 1 932 133% 74 10 to < 20% 406 45 47% 473 12.75% 51% 1 588 124% 31 20 to < 30% - 18 19% 4 27.01% 46% 1 5 147% 30 to < 100% 205 3 82% 225 39.83% 47% 1 339 151% 42 100% (default) 548 28 76% 616 100.00% 61% 1 320 52% 344 SUB-TOTAL 3,460 8,353 64% 9,881 8.91% 36% 1 2,800 28% 469 (407) Retail – SME 0.00 to < 0.15% 2,093 468 56% 2,416 0.07% 25% 4 96 4% 0.00 to < 0.10% 1,709 281 66% 1,935 0.05% 24% 4 60 3% 0.10 to < 0.15% 384 187 41% 481 0.13% 28% 3 36 8% 0.15 to < 0.25% 1,838 759 72% 2,442 0.22% 35% 2 313 13% 2 0.25 to < 0.50% 4,536 1,663 69% 5,811 0.32% 31% 3 873 15% 6 0.50 to < 0.75% 2,247 455 59% 2,563 0.67% 34% 3 632 25% 6 0.75 to < 2.50% 7,217 1,647 78% 8,624 1.59% 35% 2 3,228 37% 47 0.75 to < 1.75% 3,761 1,183 79% 4,766 1.20% 35% 2 1,595 33% 20 1.75 to < 2.5% 3,456 464 77% 3,858 2.08% 34% 2 1,633 42% 27 2.50 to < 10% 3,209 704 68% 3,780 4.78% 32% 2 1,572 42% 58 2.5 to < 5% 1,793 445 72% 2,169 3.63% 33% 2 887 41% 26 5 to < 10% 1,416 259 60% 1,611 6.33% 30% 2 686 43% 31 10 to < 100% 1,639 197 80% 1,869 18.10% 40% 3 1,314 70% 133 10 to < 20% 1,216 154 79% 1,379 13.09% 41% 3 915 66% 72 20 to < 30% 117 25 79% 148 26.71% 34% 2 109 74% 14 30 to < 100% 307 17 88% 342 34.57% 39% 2 290 85% 47 100% (default) 2,104 75 86% 2,240 100.00% 46% 1 1,307 58% 1,060 SUB-TOTAL 24,883 5,969 70% 29,746 9.88% 33% 3 9,336 31% 1,311 (1,243) Retail – Other 0.00 to < 0.15% 5,155 1,785 81% 6,680 0.06% 30% 3 416 6% 1 0.00 to < 0.10% 4,116 1,338 77% 5,213 0.05% 28% 3 251 5% 1 0.10 to < 0.15% 1,039 447 92% 1,467 0.12% 34% 3 165 11% 1 0.15 to < 0.25% 4,166 579 87% 4,720 0.19% 41% 3 883 19% 4 0.25 to < 0.50% 6,642 1,615 93% 8,281 0.39% 33% 3 1,899 23% 10 0.50 to < 0.75% 2,489 277 96% 2,801 0.58% 36% 2 890 32% 6 0.75 to < 2.50% 9,159 1,318 95% 10,602 1.39% 38% 2 5,218 49% 57 0.75 to < 1.75% 6,577 1,131 97% 7,795 1.14% 38% 2 3,548 46% 33 1.75 to < 2.5% 2,582 187 84% 2,807 2.11% 39% 2 1,671 60% 23 2.50 to < 10% 4,741 574 94% 5,360 4.46% 40% 2 3,608 67% 100 2.5 to < 5% 3,477 386 92% 3,900 3.49% 39% 2 2,444 63% 53 5 to < 10% 1,264 188 97% 1,460 7.05% 45% 2 1,164 80% 47 10 to < 100% 1,418 80 97% 1,512 22.77% 45% 2 1,650 109% 152 10 to < 20% 809 62 97% 879 13.36% 47% 2 884 101% 55 20 to < 30% 14 2 88% 16 26.60% 38% 3 16 106% 2 30 to < 100% 596 17 98% 617 36.09% 43% 2 749 122% 95 100% (default) 2,005 14 81% 2,019 100.00% 62% 2 1,089 54% 1,279 SUB-TOTAL 35,776 6,242 90% 41,975 6.70% 36% 3 15,654 37% 1,608 (1,411) TOTAL 64,118 20,564 81,601 27,789 34% 3,388 (3,061) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of assets at amortised cost and debt instruments at fair value through equity to the consolidated financial statements at 31 December 2024). a b c d e f h i j k l m In millions of euros PD range 31 December 2023 Balance sheet exposure Off-balance sheet exposure Weighted average CCF EAD Weighted average PD Weighted average LGD Weighted average maturity Risk-weighted assets(1) Average weight Amount of anticipated losses(2) Value adjustments and provisions(2) Retail – Revolving exposures 0.00 to < 0.15% 60 1 773 76 % 1 914 0,09 % 81 % 1 115 6 % 1 0.00 to < 0.10% 9 673 76 % 699 0,03 % 80 % 1 17 2 % 0.10 to < 0.15% 51 1 100 77 % 1 215 0,12 % 82 % 1 98 8 % 1 0.15 to < 0.25% 59 3 383 74 % 2 584 0,17 % 29 % 1 82 3 % 1 0.25 to < 0.50% 262 1 513 49 % 1 088 0,38 % 49 % 1 121 11 % 2 0.50 to < 0.75% 48 590 71 % 548 0,61 % 57 % 1 108 20 % 2 0.75 to < 2.50% 380 644 52 % 763 1,35 % 56 % 1 267 35 % 6 0.75 to < 1.75% 358 597 50 % 694 1,29 % 54 % 1 219 32 % 5 1.75 to < 2.5% 23 47 78 % 68 1,94 % 80 % 1 48 70 % 1 2.50 to < 10% 1 474 475 70 % 1 840 4,97 % 49 % 1 1 292 70 % 46 2.5 to < 5% 841 400 59 % 1 098 3,47 % 47 % 1 587 53 % 18 5 to < 10% 633 76 128 % 741 7,20 % 52 % 1 705 95 % 28 10 to < 100% 658 63 124 % 760 22,05 % 52 % 1 1 126 148 % 87 10 to < 20% 428 44 133 % 498 12,92 % 53 % 1 663 133 % 34 20 to < 30% 83 13 76 % 98 24,12 % 52 % 1 176 179 % 13 30 to < 100% 147 7 157 % 164 48,44 % 50 % 1 287 175 % 40 100% (Default) 492 26 65 % 555 100,00 % 61 % 1 255 46 % 311 SUB-TOTAL 3 433 8 468 68 % 10 051 8,33 % 52 % 1 3 366 33 % 456 (368) Retail – SME 0.00 to < 0.15% 1 022 362 65 % 1 304 0,09 % 33 % 2 92 7 % 0.00 to < 0.10% 565 211 62 % 720 0,07 % 32 % 2 39 5 % 0.10 to < 0.15% 457 150 69 % 583 0,12 % 34 % 3 53 9 % 0.15 to < 0.25% 782 941 55 % 1 352 0,18 % 31 % 2 138 10 % 1 0.25 to < 0.50% 5 118 1 688 69 % 6 425 0,33 % 32 % 3 1 004 16 % 7 0.50 to < 0.75% 4 103 571 73 % 4 567 0,60 % 31 % 4 1 014 22 % 8 0.75 to < 2.50% 6 805 1 848 79 % 8 384 1,50 % 34 % 2 2 933 35 % 44 0.75 to < 1.75% 3 952 1 339 79 % 5 084 1,14 % 32 % 2 1 536 30 % 18 1.75 to < 2.5% 2 853 509 80 % 3 300 2,07 % 38 % 3 1 397 42 % 25 2.50 to < 10% 3 905 587 70 % 4 407 4,92 % 30 % 2 1 890 43 % 66 2.5 to < 5% 1 564 353 74 % 1 863 3,68 % 32 % 2 768 41 % 22 5 to < 10% 2 342 235 64 % 2 544 5,83 % 29 % 2 1 122 44 % 44 10 to < 100% 1 784 196 92 % 2 035 17,44 % 38 % 3 1 307 64 % 128 10 to < 20% 1 345 153 92 % 1 524 12,60 % 39 % 3 944 62 % 73 20 to < 30% 242 33 84 % 288 24,24 % 32 % 2 185 64 % 22 30 to < 100% 197 9 122 % 223 41,73 % 35 % 3 178 80 % 33 100% (Default) 2 143 74 98 % 2 346 100,00 % 46 % 1 1 090 46 % 981 SUB-TOTAL 25 664 6 268 71 % 30 819 10,04 % 33 % 3 9 469 31 % 1 235 (1 187) Retail – Other 0.00 to < 0.15% 7 769 1 832 88 % 9 463 0,10 % 43 % 3 1 274 13 % 4 0.00 to < 0.10% 2 334 1 016 73 % 3 095 0,05 % 41 % 3 204 7 % 1 0.10 to < 0.15% 5 435 816 107 % 6 368 0,12 % 44 % 3 1 071 17 % 3 0.15 to < 0.25% 1 637 541 88 % 2 141 0,19 % 36 % 3 359 17 % 1 0.25 to < 0.50% 7 171 1 712 94 % 8 854 0,38 % 38 % 3 2 590 29 % 13 0.50 to < 0.75% 3 395 365 98 % 3 972 0,61 % 41 % 3 1 665 42 % 10 0.75 to < 2.50% 7 511 1 059 98 % 8 650 1,39 % 40 % 2 4 864 56 % 47 0.75 to < 1.75% 5 587 977 99 % 6 637 1,20 % 39 % 2 3 555 54 % 31 1.75 to < 2.5% 1 924 81 93 % 2 012 2,00 % 41 % 2 1 308 65 % 16 2.50 to < 10% 4 884 249 111 % 5 175 4,49 % 42 % 2 3 882 75 % 100 2.5 to < 5% 3 666 154 120 % 3 860 3,52 % 41 % 2 2 722 71 % 56 5 to < 10% 1 218 95 96 % 1 315 7,34 % 46 % 2 1 160 88 % 44 10 to < 100% 1 254 77 97 % 1 347 23,12 % 43 % 2 1 502 112 % 130 10 to < 20% 715 55 99 % 785 13,71 % 44 % 2 806 103 % 47 20 to < 30% 242 5 89 % 247 24,37 % 42 % 2 303 123 % 25 30 to < 100% 297 16 90 % 314 45,64 % 40 % 2 392 125 % 58 100% (Default) 2 020 18 85 % 2 043 100,00 % 63 % 2 964 47 % 1 410 SUB-TOTAL 35 641 5 851 93 % 41 644 6,67 % 40 % 2 17 100 41 % 1 715 (1 574) TOTAL 64 738 20 587 82 515 29 935 36 % 3 406 (3 129) Add-on included. The expected losses and provisions are not directly comparable data: the expected one-year losses are statistical estimates through the cycle (TTC) whilst the provisions for credit risk are calculated according to the IFRS 9 standard (see note 1.f.5 Impairment of assets at amortised cost and debt instruments at fair value through equity to the consolidated financial statements at 31 December 2024). Most of the mortgage exposures concern Commercial & Personal Banking in France, Commercial & Personal Banking in Belgium and Commercial & Personal Banking in Luxembourg. Mortgages are issued according to strict and well-defined procedures. Average probability of default on retail clients’ non-defaulted loans is 1.31%. The low average Loss Given Default level reflects the guarantees put in place when the mortgages were granted. Most of the Revolving exposures and Other exposures relate to consumer loans subsidiaries that have a wider range of customers in terms of credit quality and a lower level of guarantees. ➤TABLE 43: AVERAGE PD AND LGD OF THE RETAIL PORTFOLIO BY GEOGRAPHIC REGION In millions of euros 31 December 2024 Non-defaulted exposure Average PD Average LGD Europe(1) 273,495 1.31% 22% of which France 144,555 1.40% 24% of which Belgium 83,319 1.11% 18% of which Luxembourg 8,845 1.02% 21% of which Italy 34,534 1.47% 23% North America 605 n.s. n.s. Asia Pacific 407 n.s. n.s. Rest of the World 624 n.s. n.s. TOTAL 275,131 1.31% 22% Within the European Union and the European Free Trade Association (EFTA). In millions of euros 31 December 2023 Non-defaulted exposure Average PD Average LGD Europe(1) 273,289 1.34% 20% of which France 145,826 1.48% 21% of which Belgium 81,663 1.15% 18% of which Luxembourg 8,983 0.91% 21% of which Italy 34,683 1.27% 21% North America 548 n.s. n.s. Asia Pacific 414 n.s. n.s. Rest of the World 603 n.s. n.s. TOTAL 274,854 1.34% 20% Within the European Union and the European Free Trade Association (EFTA). Credit risk: standardised approach For exposures under the standardised approach, BNP Paribas uses the external ratings from External Credit Assessment Institutions (ECAIs) recognised by the supervisor: Standard & Poor’s, Moody’s, Fitch Ratings, Cerved and Banque de France. The Group uses the correspondence tables published by the EBA and the ACPR to compare the external ratings and weighting rates used to calculate risk-weighted assets specific to each exposure class: The ratings supplied by Standard & Poor’s, Moody’s and Fitch Ratings are mainly used for exposures to Central governments and central banks, Regional and local authorities, Public sector entities and Multilateral development banks, Institutions and Corporates. The ratings supplied by the Banque de France are mainly used for corporate exposures and exposures secured by a mortgage on a real estate asset. The ratings supplied by Cerved are mainly used for Corporate exposures. When there is no directly applicable external rating, the issuer’s senior unsecured rating may, if available, be obtained from external databases and used for risk-weighting purposes in some cases. As at 31 December 2024, standardised approach exposure represented 24% of the BNP Paribas Group’s total gross exposures to credit risk. This breakdown is slightly up compared to 31 December 2023. The following table shows a summary of standardised risk-weighted exposures broken down by regulatory asset class. The equity exposures weighted using the standardised approach consist primarily of asset value guarantees given to fund unit holders. ➤TABLE 44: STANDARDISED CREDIT RISK EXPOSURE BY STANDARD EXPOSURE CLASS (EU CR4) a b c d e f In millions of euros 31 December 2024 Gross exposure Exposure net of provisions EAD RWAs RWA density Balance sheet Off-balance sheet Balance sheet Off-balance sheet Balance sheet Off-balance sheet 1 Central governments or central banks 31,582 22 31,536 22 35,988 5 7,463 21% 2 Regional governments or local authorities 2,286 1,108 2,281 1,108 1,973 314 569 25% 3 Public sector entities 1,335 1,141 1,333 1,140 1,321 385 965 57% 4 Multilateral development banks 4,657 3 4,657 3 4,918 2 0% 5 International organisations 1,322 2 1,322 2 1,322 1 0% 6 Institutions 13,709 2,819 13,702 2,816 13,747 1,194 4,746 32% 7 Corporates 93,488 17,997 93,229 17,948 86,265 6,945 71,688 77% 8 Retail 96,104 30,362 94,723 30,315 91,974 2,164 64,540 69% 9 Exposures secured by mortgages on immovable property 40,122 2,205 39,856 2,194 35,488 991 16,855 46% 10 Exposures in default 10,365 304 5,113 262 4,870 73 5,488 111% 11 Exposures associated with particularly high risk(1) 217 15 214 15 214 6 324 147% 12 Covered bonds 13 Institutions and corporates with a short-term credit assessment 14 Collective investment undertakings 5,303 3,413 5,302 3,413 5,302 1,475 10,961 162% 15 Equity 82 185 82 185 82 92 1,704 979% 16 Other items 66,315 4,260 66,315 4,260 66,315 4,158 41,788 59% 17 TOTAL 366,886 63,836 359,665 63,684 349,779 17,804 227,092 62% Exposures in the property development sector for which risk profile may be influenced by market conditions. a b c d e f In millions of euros 31 December 2023 Gross exposure Exposure net of provisions EAD RWAs RWA density Balance sheet Off-balance sheet Balance sheet Off-balance sheet Balance sheet Off-balance sheet 1 Central governments or central banks 29 003 285 28 972 285 33 629 134 4 842 14 % 2 Regional governments or local authorities 3 668 2 125 3 666 2 124 3 290 442 709 19 % 3 Public sector entities 1 779 1 417 1 778 1 417 1 737 351 1 110 53 % 4 Multilateral development banks 1 635 2 1 635 2 1 796 1 0 % 5 International organisations 1 278 1 1 278 1 1 278 0 % 6 Institutions 12 999 2 829 12 996 2 821 13 597 1 281 5 562 37 % 7 Corporates 77 899 28 763 77 615 28 703 71 297 9 259 60 937 76 % 8 Retail 94 497 29 923 92 854 29 872 89 681 2 081 62 749 68 % 9 Exposures secured by mortgages on immovable property 39 750 1 976 39 422 1 966 35 040 867 16 012 45 % 10 Exposures in default 9 777 285 4 661 251 4 469 66 4 957 109 % 11 Exposures associated with particularly high risk(1) 12 Covered bonds 13 Institutions and corporates with a short-term credit assessment 14 Collective investment undertakings 3 470 2 156 3 459 2 156 3 459 846 7 838 182 % 15 Equity 96 444 96 444 96 222 2 265 712 % 16 Other items 35 286 1 662 35 286 1 662 35 286 1 556 21 211 58 % 17 TOTAL 311 139 71 868 303 718 71 704 294 657 17 107 188 191 60 % Exposures in the property development sector for which risk profile may be influenced by market conditions. Outstanding loans under the standardised approach excluding other items increased in 2024, mainly driven by an increase in CPBS (+EUR 21.9 billion) partially offset by CIB (-EUR 7.1 billion), mainly on Corporate clients in Europe. The following table gives the breakdown by standard asset class, the distribution by risk weight of the loans and commitments in the book for all the Group’s business lines using the standardised approach. Exposure at default was EUR 368 billion at 31 December 2024 compared to EUR 312 billion at 31 December 2023. ➤TABLE 45: STANDARDISED CREDIT EXPOSURE AT DEFAULT (EU CR5) a e f g i j k m n o p q Risk weight In millions of euros 31 December 2024 EAD (on-balance and off-balance) 0% 20% 35% 50% 75% 100% 150% 370% 1,250% Other Total of which unrated(1) 1 Central governments or central banks 28,896 249 613 4,491 1,744 35,993 9,999 2 Regional governments or local authorities 352 1,701 5 228 2,287 1,116 3 Public sector entities 496 237 94 863 17 1,706 367 4 Multilateral development banks 4,920 4,920 261 5 International organisations 1,323 1,323 6 Institutions 11,459 2,053 1,417 10 14,940 499 7 Corporates 20,211 6 7,729 64,102 1,161 93,209 58,767 8 Retail 3,945 90,192 94,138 94,138 9 Exposures secured by mortgages on immovable property 23,223 6,013 3,211 3,718 212 102 36,479 27,092 10 Exposures in default 3,854 1,089 4,943 4,811 11 Exposures associated with particularly high risk(2) 220 220 220 12 Covered bonds - 13 Institutions and corporates with a short-term credit assessment - 14 Unit or shares in collective investment undertakings 589 128 261 1,185 10 4,603 6,777 6,160 15 Equity 54 120 174 174 16 Other items 7,812 319 1,688 15,194 45,461 70,473 61,286 17 TOTAL 44,388 34,304 27,174 18,456 93,404 95,052 4,446 54 120 50,184 367,583 264,890 Exposures to counterparties without a credit rating from external rating agencies. Exposures in the property development sector for which risk profile may be influenced by market conditions. a e f g i j k m n o p q Risk weight In millions of euros 31 December 2023 EAD (on-balance and off-balance) 0% 20% 35% 50% 75% 100% 150% 370% 1,250% Other Total of which unrated(1) 1 Central governments or central banks 28 305 630 225 4 602 1 33 764 8 934 2 Regional governments or local authorities 682 2 922 4 124 3 732 1 650 3 Public sector entities 633 251 287 916 2 088 583 4 Multilateral development banks 1 797 1 797 161 5 International organisations 1 278 1 278 82 6 Institutions 10 229 2 232 2 356 62 14 878 520 7 Corporates 621 15 334 632 9 093 54 240 636 80 556 48 834 8 Retail 4 030 87 733 91 762 91 762 9 Exposures secured by mortgages on immovable property 24 637 5 221 2 293 3 560 197 35 907 28 231 10 Exposures in default 3 694 842 4 536 4 438 11 Exposures associated with particularly high risk(2) - 12 Covered bonds - 13 Institutions and corporates with a short-term credit assessment - 14 Unit or shares in collective investment undertakings 7 101 109 809 7 3 272 4 305 4 034 15 Equity 194 124 318 318 16 Other items 7 805 566 139 14 280 14 052 36 843 28 466 17 TOTAL 41 129 30 032 29 298 17 311 90 025 84 581 1 745 194 124 17 324 311 764 218 013 Exposures to counterparties without a credit rating from external rating agencies. Exposures in the property development sector for which risk profile may be influenced by market conditions. The following chart shows the breakdown by risk weight of EAD outstandings relating to credit risk for all the Group’s business lines, measured using the standardised approach. ➤Figure 10: Standardised Exposure At default by risk weight Credit risk: equities under the simple weighting method Exposure Exposures under the simple weighting method at 31 December 2024 amounted to EUR 11.7 billion, versus EUR 13.6 billion at 31 December 2023. Scope The equities held by the Group outside trading portfolios are securities “conferring residual and subordinated rights on issuer’s assets or income, or securities representing a similar economic nature”. They encompass: listed and unlisted equities, including shares in investment funds; embedded options of convertible bonds, redeemable or exchangeable for equities; equity options; super subordinated notes; private funds on given commitments; equity holdings hedge; shares of consolidated entities using the equity method. The scope of exposures processed according to the simple weighting method does not include the following items: stakes higher than 10% in credit or financial institutions, mainly consolidated by the equity method or held as financial assets at fair value through equity, are exempt from the equity deduction, being weighted at a flat rate of 250% (exposure of EUR 5.7 billion at 31 December 2024 compared with EUR 4.9 billion at 31 December 2023); exposures in the form of units or shares of undertakings for collective investment (UCI) treated according to the transparency approach in accordance with the provisions of articles 132 to 132c of Regulation (EU) No. 2019/876 (exposure of EUR 8.7 billion at 31 December 2024 compared with EUR 5.6 billion at 31 December 2023). Accounting principles and valuation methods Accounting principles and valuation methods are set out in note 1.f to the consolidated financial statements – Financial assets and liabilities. Total gains and losses Total unrealised gains and losses recorded in shareholders’ equity are set out in note 4.c to the consolidated financial statements – Financial assets at fair value through equity. Risk-weighted assets The simple weighting method gives the following risk weights for the calculation of risk-weighted assets: 190% for investments held for medium/long-term valuation purposes within the activity of the Principal Investments business, as well as private equity exposures in diversified portfolios in line with the Bank’s business line activities; 290% for exposures in the form of listed securities, including primarily investments related to the Bank’s business line activities. In addition, some exposures relating to Principal Investments are also included in this category; 370% for all other exposures in the form of equities, primarily including entities consolidated using the equity method (including the Group’s insurance entities in the prudential scope that are included in Table 47: Insurance undertakings (EU INS1)). Furthermore, this risk weight is also applied to unlisted investments in non-diversified portfolios. ➤TABLE 46: EQUITY POSITIONS UNDER THE SIMPLE WEIGHTING METHOD (EU CR10) a b c d e f In millions of euros 31 December 2024 On-balance sheet gross exposure Off-balance sheet gross exposure Risk weight Exposure value Risk weighted exposure amount Expected loss amount Private equity exposures 2,010 19 190% 2,019 3,836 16 Exchange-traded equity exposures 699 290% 699 2,028 6 Other equity exposures 8,942 370% 8,942 33,085 215 Total 11,651 19 11,660 38,949 236 a b c d e f In millions of euros 31 December 2023 On-balance sheet gross exposure Off-balance sheet gross exposure Risk weight Exposure value Risk weighted exposure amount Expected loss amount Private equity exposures 1,820 23 190% 1,831 3,480 15 Exchange-traded equity exposures 1,278 290% 1,278 3,706 10 Other equity exposures 10,474 370% 10,474 38,755 251 Total 13,572 23 13,584 45,941 276 The decrease of -EUR 7 billion in risk-weighted assets in 2024 is mainly linked to market effects for the entire portfolio. The Group does not use the simple weighting method for specialised lending portfolios. ➤TABLE 47: INSURANCE UNDERTAKINGS (EU INS1) a b In millions of euros 31 December 2024 31 December 2023 1 Holdings in insurance companies(1)(before 370% risk weight) 6,001 4,824 TOTAL RISK-WEIGHTED ASSETS 22,204 17,847 Significant financial holdings in insurance companies consolidated by the equity method within the prudential scope, benefiting from the provisions of article 49 of Regulation (EU) No. 575/2013 on exemptions from deduction from regulatory capital of holdings in an insurance company. Under the provisions of article 48 of Regulation (EU) No. 575/2013, a potential deduction from regulatory capital would have a limited impact with a decrease of less than 2 basis points in the CET1 ratio. Exposures, provisions and cost of risk [Audited] Impaired exposures (stage 3) related to assets at amortised cost and financing and guarantee commitments given, as well as the guarantees received as collateral, are presented in note 4.f Impaired financial assets (stage 3). The definition of impaired loans (stage 3) is presented in note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity, Definition of default paragraph. The following table shows the carrying amount of performing and non-performing(9) financial assets included in the prudential consolidation scope. An exposure is deemed to be non-performing when it falls into one of the following categories: exposures in default; 90 days past-due exposures that are not in default; restructured loans (see the Restructured loans section) during the one-year minimal period required before returning to performing status. In this part, in accordance with the Implementing Regulation (EU) No. 2021/637, the scope of the tables in this section includes the following items: current accounts with central banks (cash accounts are not considered); loans and receivables and debt securities at amortised cost; loans and receivables and debt securities at fair value through equity; loans and receivables and debt securities at fair value through profit or loss excluding the trading portfolio; financing and guarantee commitments outside the trading portfolio. Exposures in default include impaired loans and receivables (stage 3) and doubtful loans and receivables and debt securities at fair value through profit or loss outside the trading book. The classifications used for exposures shown are taken from financial reports intended for the supervisory authority(10) and so differ from the exposure classes usually used within the context of Pillar 3. The classification includes: central banks; public administrations including mainly central governments, regional or local authorities and international organisations; credit institutions including credit institutions and multilateral development banks; other financial corporations including institutions (notably supervised investment companies and clearing houses) and corporations (mainly investment funds, pension funds and insurance companies); non-financial corporations including mainly corporations and small and medium enterprises (SME); households: mainly non-SME retail portfolio. ➤TABLE 48: PERFORMING AND NON-PERFORMING EXPOSURES AND RELATED PROVISIONS (EU CR1) [Audited] a b c d e f g h i j k l n o In millions of euros 31 December 2024 Gross carrying amount Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions Collateral and financial guarantees received Performing exposures Non-performing exposures Performing exposures Non-performing exposures On performing exposures On non-performing exposures of which stage 1 of which stage 2 of which stage 1 & 2 of which defaulted of which stage 1 of which stage 2 of which stage 1 & 2 of which defaulted 005 Current accounts at central banks and other demand deposits 188,522 187,857 665 1 - 1 (19) (15) (4) - - - 759 - 010 Loans and advances 928,317 858,701 69,616 26,998 498 26,501 (3,720) (1,810) (1,909) (13,439) (8) (13,431) 524,030 8,646 020 Central banks 10,646 10,646 4,270 030 General governments 35,523 33,951 1,573 261 89 171 (17) (8) (9) (64) (3) (61) 8,954 79 040 Credit institutions 12,242 12,143 98 77 1 76 (10) (6) (4) (71) (71) 6,411 1 050 Other financial corporations 114,808 111,624 3,184 1,053 3 1,050 (92) (42) (51) (854) (854) 18,314 139 060 Non-financial corporations 422,317 375,443 46,874 14,912 394 14,518 (1,406) (635) (771) (7,219) (4) (7,214) 251,579 5,683 070 of which SMEs 126,007 110,597 15,411 6,162 107 6,056 (629) (314) (315) (2,537) (2) (2,535) 86,554 2,731 080 Households 332,782 314,895 17,888 10,696 11 10,685 (2,195) (1,120) (1,075) (5,232) (1) (5,231) 234,503 2,744 090 Debt securities 223,009 220,815 2,194 422 - 422 (64) (25) (39) (288) - (288) 3,925 - 100 Central banks 6,056 4,847 1,209 110 General governments 151,791 151,100 691 (39) (14) (26) 350 120 Credit institutions 25,990 25,900 90 101 101 (9) (7) (2) (101) (101) 3,575 130 Other financial corporations 32,275 32,105 171 259 259 (12) (1) (11) (133) (133) 140 Non-financial corporations 6,896 6,863 33 62 62 (3) (3) (54) (54) 150 Off-balance sheet exposures 596,936 573,146 23,790 2,441 2 2,439 (387) (181) (206) (318) - (318) 154,322 749 160 Central banks 65,839 65,839 65,474 170 General governments 9,201 8,000 1,201 1 1 (2) (1) (1) 866 180 Credit institutions 22,379 21,950 429 (11) (4) (7) 4,744 190 Other financial corporations 78,195 77,516 680 22 22 (18) (13) (5) (4) (4) 11,636 2 200 Non-financial corporations 370,308 350,169 20,139 2,281 2,281 (286) (121) (166) (309) (309) 67,365 729 210 Households 51,014 49,672 1,342 138 2 136 (70) (42) (28) (5) (5) 4,237 18 220 TOTAL 1,936,784 1,840,519 96,265 29,862 500 29,362 (4,191) (2,032) (2,159) (14,045) (8) (14,037) 683,036 9,395 a b c d e f g h i j k l n o In millions of euros 31 December 2023 Gross carrying amount Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions Collateral and financial guarantees received Performing exposures Non-performing exposures Performing exposures Non-performing exposures On performing exposures On non-performing exposures of which stage 1 of which stage 2 of which stage 1 & 2 of which defaulted of which stage 1 of which stage 2 of which stage 1 & 2 of which defaulted 005 Cash balances at central banks and other demand deposits 292,738 292,359 379 2 - 2 (26) (21) (5) - - - 973 - 010 Loans and advances 902,012 828,757 73,255 26,775 465 26,310 (4,338) (1,960) (2,378) (13,261) (13) (13,248) 538,230 8,551 020 Central banks 9,731 9,731 3,313 030 General governments 33,971 31,954 2,017 256 93 163 (16) (6) (10) (39) (1) (38) 8,826 167 040 Credit institutions 7,457 6,839 618 80 80 (27) (18) (9) (67) (67) 3,580 050 Other financial corporations 90,811 87,537 3,274 1,412 1,412 (153) (70) (83) (856) (856) 21,110 502 060 Non-financial corporations 430,758 380,019 50,739 14,155 344 13,811 (1,807) (726) (1,081) (6,978) (3) (6,975) 272,354 5,011 070 of which SMEs 127,144 108,650 18,494 5,597 90 5,507 (770) (319) (451) (2,363) (2) (2,361) 92,600 2,532 080 Households 329,284 312,677 16,607 10,872 28 10,844 (2,335) (1,140) (1,195) (5,321) (9) (5,312) 229,047 2,871 090 Debt securities 175,677 175,342 335 349 - 349 (36) (19) (17) (226) - (226) 4,017 - 100 Central banks 4,705 4,705 110 General governments 118,856 118,785 71 (17) (14) (3) 450 120 Credit institutions 18,004 18,004 101 101 (101) (101) 3,262 130 Other financial corporations 27,747 27,552 195 152 152 (13) (1) (12) (56) (56) 305 140 Non-financial corporations 6,365 6,296 69 96 96 (6) (4) (2) (69) (69) 150 Off-balance sheet exposures 560,116 533,559 26,557 1,661 3 1,658 (570) (269) (301) (313) - (313) 142,400 398 160 Central banks 51,627 51,627 49,622 170 General governments 11,292 9,915 1,377 48 48 (5) (2) (3) 742 42 180 Credit institutions 15,155 13,611 1,544 (27) (7) (20) 654 190 Other financial corporations 77,005 76,019 986 87 87 (32) (24) (8) (11) (11) 17,614 12 200 Non-financial corporations 357,031 335,568 21,463 1,390 4 1,386 (421) (182) (239) (298) (298) 69,078 331 210 Households 48,006 46,819 1,187 136 (1) 137 (85) (54) (31) (4) (4) 4,690 13 220 TOTAL 1,930,543 1,830,017 100,526 28,787 468 28,319 (4,970) (2,269) (2,701) (13,800) (13) (13,787) 685,620 8,949 Changes in the stock of non-performing loans and advances (EU CR2) are presented in note 4.f Impaired financial assets (stage 3) to the consolidated financial statements as at 31 December 2024. ➤TABLE 49: PERFORMING AND NON-PERFORMING EXPOSURES BY PAST DUE DAYS (EU CQ3) [Audited] a b c d e f g h i j k l In millions of euros 31 December 2024 Performing exposures Non-performing exposures Not past due or ≤ 30 days > 30 days ≤ 90 days Unlikely to pay that are not past due or are past due ≤ 90 days > 90 days ≤ 180 days > 180 days ≤ 1 year > 1 year ≤ 2 years > 2 years ≤ 5 years > 5 years ≤ 7 years > 7 years of which defaulted 005 Cash balances at central banks and other demand deposits 188,522 188,522 - 1 1 - - - - - - 1 010 Loans and advances 928,317 923,500 4,818 26,998 9,307 1,910 2,574 3,032 4,925 1,697 3,553 26,501 020 Central banks 10,646 10,646 030 General governments 35,523 35,458 66 261 67 34 28 10 76 26 21 171 040 Credit institutions 12,242 12,239 2 77 2 2 72 76 050 Other financial corporations 114,808 114,759 48 1,053 523 13 23 17 88 175 215 1,050 060 Non-financial corporations 422,317 418,949 3,368 14,912 5,864 864 1,350 1,507 2,062 990 2,275 14,518 070 of which SMEs 126,007 125,278 729 6,162 2,050 474 693 929 1,068 413 534 6,056 080 Households 332,782 331,449 1,333 10,696 2,852 999 1,173 1,496 2,699 506 971 10,685 090 Debt securities 223,009 223,009 - 422 309 - - - 5 - 108 422 100 Central banks 6,056 6,056 110 General governments 151,791 151,791 120 Credit institutions 25,990 25,990 101 2 99 101 130 Other financial corporations 32,275 32,275 259 250 8 259 140 Non-financial corporations 6,896 6,896 62 57 5 62 150 Off-balance sheet exposures 596,936 2,441 2,439 160 Central banks 65,839 170 General governments 9,201 1 1 180 Credit institutions 22,379 190 Other financial corporations 78,195 22 22 200 Non-financial corporations 370,308 2,281 2,281 210 Households 51,014 138 136 220 TOTAL 1,936,784 1,335,030 4,818 29,862 9,617 1,910 2,574 3,032 4,930 1,697 3,661 29,362 a b c d e f g h i j k l In millions of euros 31 December 2023 Performing exposures Non-performing exposures Not past due or ≤ 30 days > 30 days ≤ 90 days Unlikely to pay that are not past due or are past due ≤ 90 days > 90 days ≤ 180 days > 180 days ≤ 1 year > 1 year ≤ 2 years > 2 years ≤ 5 years > 1 year ≤ 2 years > 5 years of which defaulted 005 Cash balances at central banks and other demand deposits 292,738 292,738 - 2 - - - - - - 2 2 010 Loans and advances 902,012 897,206 4,806 26,775 9,475 2,051 2,110 2,728 4,780 1,374 4,257 26,310 020 Central banks 9,731 9,731 030 General governments 33,971 33,935 36 256 36 12 6 69 99 28 6 163 040 Credit institutions 7,457 7,454 3 80 3 2 75 79 050 Other financial corporations 90,811 90,687 124 1,412 638 30 5 309 230 8 192 1,412 060 Non-financial corporations 430,758 427,102 3,656 14,155 5,847 995 848 1,049 1,767 869 2,780 13,812 070 of which SMEs 127,144 126,363 781 5,597 2,082 378 544 707 838 314 734 5,506 080 Households 329,284 328,297 987 10,872 2,951 1,014 1,251 1,299 2,684 469 1,204 10,844 090 Debt securities 175,677 175,677 - 349 236 - - - 5 101 7 349 100 Central banks 4,705 4,705 110 General governments 118,856 118,856 120 Credit institutions 18,004 18,004 101 2 99 101 130 Other financial corporations 27,747 27,747 152 144 2 6 152 140 Non-financial corporations 6,365 6,365 96 90 5 1 96 150 Off-balance sheet exposures 560,116 1,661 1,658 160 Central banks 51,627 170 General governments 11,292 48 48 180 Credit institutions 15,155 190 Other financial corporations 77,005 87 87 200 Non-financial corporations 357,031 1,390 1,386 210 Households 48,006 136 137 220 TOTAL 1,930,543 1,365,621 4,806 28,787 9,711 2,051 2,110 2,728 4,785 1,475 4,266 28,319 Table 50 (EU CQ4) below shows the on- and off-balance sheet exposures. These exposures contribute to all Group risks, mainly credit risk. ➤TABLE 50: EXPOSURES AND PROVISIONS BY GEOGRAPHIC BREAKDOWN (EU CQ4) [Audited] a b c d e f g In millions of euros 31 December 2024 Gross carrying amount/Nominal amount Accumulated impairment Provisions on off-balance sheet commitments and financial guarantees given Accumulated negative due to credit risk on non-performing exposures changes in fair value Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (stage 2) Of which non-performing Of which loans and advances subject to impairment Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) Of which defaulted Of which defaulted 010 On balance sheet exposures 1,367,269 72,927 27,421 26,923 1,362,026 (17,478) (1,956) (13,667) (52) Europe(1) 1,010,510 58,127 23,040 22,792 1,006,345 (14,298) (1,684) (10,982) (52) France 402,055 22,190 9,441 9,278 400,100 (5,707) (736) (4,452) (15) Belgium 171,333 8,076 3,100 3,098 171,297 (1,512) (130) (1,246) Luxembourg 43,921 2,266 581 572 43,705 (167) (33) (114) (2) Italy 126,360 7,329 3,929 3,926 126,250 (3,032) (304) (2,353) (30) United Kingdom 62,681 3,423 1,221 1,215 62,262 (828) (75) (642) (3) Germany 58,412 5,613 1,641 1,622 57,329 (1,059) (118) (805) Netherlands 22,577 1,125 144 144 22,571 (78) (11) (54) Other European countries 123,172 8,105 2,984 2,937 122,830 (1,915) (277) (1,314) (3) North America 139,856 4,894 858 658 139,194 (204) (60) (126) - Asia Pacific 102,374 2,127 372 369 102,312 (232) (16) (156) - Japan 34,252 380 11 11 34,222 (11) (9) 0 North Asia 28,533 893 216 214 28,533 (79) (2) (31) South-East Asia (ASEAN) 19,730 558 121 121 19,713 (129) (3) (117) Indian peninsula & Pacific 19,858 296 24 22 19,843 (13) (2) (7) 070 Rest of the World 114,529 7,780 3,151 3,104 114,176 (2,744) (196) (2,403) - Türkiye 18,381 981 167 167 18,381 (220) (48) (114) Mediterranean 9,909 2,018 973 969 9,909 (796) (52) (706) Gulf States & Africa 9,996 396 1,431 1,431 9,996 (1,255) (40) (1,188) Latin America 13,689 477 168 167 13,335 (131) (4) (120) Other countries 62,554 3,908 412 371 62,554 (342) (52) (275) 080 Off-balance sheet exposures 599,377 23,792 2,441 2,439 599,377 (706) (206) (318) (706) - Europe(1) 361,142 12,951 1,940 1,938 361,142 (492) (116) (240) (492) - France 104,375 4,124 735 735 104,375 (166) (52) (62) (166) Belgium 40,899 2,195 263 263 40,899 (87) (10) (61) (87) Luxembourg 17,157 424 134 134 17,157 (22) (4) (14) (22) Italy 36,610 1,459 401 401 36,610 (96) (13) (65) (96) United Kingdom 40,702 1,635 113 113 40,702 (22) (6) 0 (22) Germany 34,894 896 164 164 34,894 (40) (5) (26) (40) Netherlands 18,561 295 20 20 18,561 (4) (1) 0 (4) Other European countries 67,944 1,923 111 109 67,944 (55) (24) (13) (55) North America 123,998 7,625 280 280 123,998 (85) (55) (14) (85) - Asia Pacific 33,997 366 43 43 33,997 (6) (2) (1) (6) - Japan 2,836 4 0 0 2,836 0 0 0 0 North Asia 18,584 146 30 30 18,584 (3) (1) 0 (3) South-East Asia (ASEAN) 6,063 108 0 0 6,063 (1) 0 0 (1) Indian peninsula & Pacific 6,514 110 13 13 6,514 (2) (1) (1) (2) 140 Rest of the World 80,240 2,849 179 179 80,240 (122) (33) (63) (122) - Türkiye 6,897 328 27 27 6,897 (31) (10) (10) (31) Mediterranean 2,524 670 94 94 2,524 (59) (10) (41) (59) Gulf States & Africa 54,749 120 54 54 54,749 (20) (4) (12) (20) Latin America 5,356 408 3 3 5,356 (8) (7) 0 (8) Other countries 10,714 1,323 1 1 10,714 (4) (2) 0 (4) 150 TOTAL 1,966,646 96,719 29,862 29,362 1,961,403 (18,183) (2,162) (13,985) (706) (52) Within the European Union, the European Free Trade Association (EFTA) and the United Kingdom. a b c d e f g In millions of euros 31 December 2023 Gross carrying amount/Nominal amount Accumulated impairment Provisions on off-balance sheet commitments and financial guarantees given Accumulated negative due to credit risk on non-performing exposures changes in fair value Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (stage 2) Of which non-performing Of which loans and advances subject to impairment Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage 2) Of which defaulted Of which defaulted 010 On balance sheet exposures 1,397,553 74,371 27,126 26,661 1,393,402 (17,817) (2,404) (13,404) - (70) Europe(1) 1,100,051 62,345 22,566 22,352 1,097,563 (14,349) (2,050) (10,559) - (43) France 490,339 21,068 9,042 8,897 488,938 (5,286) (759) (3,949) (8) Belgium 174,544 9,073 2,531 2,521 174,517 (1,423) (190) (1,087) Luxembourg 51,238 2,419 362 357 51,042 (189) (46) (113) (3) Italy 133,525 8,179 4,631 4,629 133,453 (3,657) (487) (2,784) (23) United Kingdom 57,788 4,811 977 966 57,545 (743) (99) (533) (7) Germany 52,738 5,913 1,330 1,308 52,529 (987) (151) (689) Netherlands 21,181 2,190 160 157 21,165 (92) (20) (52) Other European countries 118,699 8,693 3,532 3,517 118,374 (1,972) (298) (1,353) (3) North America 111,548 4,431 767 614 110,240 (225) (87) (113) - (27) Asia Pacific 95,147 2,294 323 320 94,981 (290) (48) (160) - - Japan 31,455 276 12 12 31,424 (2) (1) North Asia 26,472 855 149 148 26,466 (103) (11) (31) South-East Asia (ASEAN) 18,706 488 131 130 18,697 (165) (32) (121) Indian peninsula & Pacific 18,514 675 31 30 18,394 (20) (4) (8) 070 Rest of the World 90,807 5,301 3,471 3,375 90,617 (2,954) (218) (2,571) - - Türkiye 14,086 1,201 140 140 14,066 (213) (83) (81) Mediterranean 9,387 1,450 798 791 9,387 (723) (54) (630) Gulf States & Africa 10,606 267 1,726 1,726 10,606 (1,509) (43) (1,439) Latin America 17,683 592 318 316 17,513 (264) (16) (214) Other countries 39,045 1,791 489 402 39,045 (245) (22) (207) 080 Off-balance sheet exposures 561,777 26,559 1,661 1,658 561,777 (883) (301) (313) (883) - Europe(1) 350,726 14,572 1,230 1,228 350,726 (560) (172) (178) (560) - France 102,178 3,597 286 286 102,178 (159) (52) (37) (159) Belgium 41,563 2,157 190 190 41,563 (106) (16) (64) (106) Luxembourg 16,864 492 51 51 16,864 (19) (7) (3) (19) Italy 40,105 1,604 367 367 40,105 (90) (25) (40) (90) United Kingdom 39,555 2,538 114 114 39,555 (55) (32) (2) (55) Germany 32,110 1,726 57 57 32,110 (52) (14) (21) (52) Netherlands 17,431 406 47 47 17,431 (12) (2) (3) (12) Other European countries 60,920 2,052 119 116 60,920 (66) (24) (8) (66) North America 111,492 7,479 177 177 111,492 (135) (74) (38) (135) - Asia Pacific 33,458 863 30 30 33,458 (14) (3) - (14) Japan 2,669 2,669 (1) (1) North Asia 18,854 151 27 27 18,854 (7) (1) (7) South-East Asia (ASEAN) 4,896 429 3 3 4,896 (3) (1) (3) Indian peninsula & Pacific 7,038 283 7,038 (4) (1) (4) 140 Rest of the World 66,101 3,645 223 223 66,101 (174) (53) (97) (174) - Türkiye 4,633 388 8 8 4,633 (31) (21) (4) (31) Mediterranean 2,240 521 86 86 2,240 (58) (14) (39) (58) Gulf States & Africa 44,285 316 49 49 44,285 (65) (5) (54) (65) Latin America 5,910 812 33 33 5,910 (11) (9) (11) Other countries 9,033 1,608 48 48 9,033 (9) (4) (9) 150 TOTAL 1,959,330 100,930 28,787 28,319 1,955,179 (18,700) (2,705) (13,717) (883) (70) Within the European Union, the European Free Trade Association (EFTA) and the United Kingdom. In accordance with Implementing Regulation (EU) No. 2021/637, the table below (EU CQ5) shows the breakdown of loans and receivables with the scope of non-financial corporations. It does not take into account all exposures to central governments and central banks, credit institutions, financial companies and households. These on-balance sheet and off-balance sheet exposures contribute to all Group risks, mainly credit risk. The breakdown by sector – as defined by European Regulation No. 1893/2006 establishing the statistical classification of economic activities NACE rev. 2 – is based on the borrower’s declaration. These same balance sheet exposures of continuing activities, broken down by sector, are included in Table 107: Credit quality of exposures by sector and residual maturities of section 5.11 Environmental, social and governance risks of this chapter. In the latter, exposures include, however, debt securities and equity instruments not held for trading. ➤TABLE 51: BREAKDOWN OF LOANS AND ADVANCES AND PROVISIONS TO NON-FINANCIAL CORPORATIONS BY INDUSTRY (EU CQ5) [Audited] a b c d e f In millions of euros 31 December 2024 Gross carrying amount/Nominal amount Accumulated impairment Accumulated negative changes in fair value due to credit risk on non-performing exposures Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (stage 2) Of which non-performing Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage2) Of which defaulted Of which defaulted Of which loans and advances subject to impairment On balance sheet exposures 437,229 47,227 14,912 14,518 433,809 (8,613) (775) (7,203) (11) 010 Agriculture, forestry and fishing 11,331 810 396 395 11,226 (224) (35) (139) 020 Mining and quarrying 5,073 277 70 70 4,787 (67) (4) (60) 030 Manufacturing 93,308 11,654 3,326 3,286 93,170 (2,189) (120) (1,959) 040 Electricity, gas, steam and air conditioning supply 19,562 1,689 259 258 18,582 (133) (34) (85) 050 Water supply 3,397 368 138 136 3,397 (118) (4) (109) 060 Construction 25,065 2,815 1,889 1,882 24,937 (985) (48) (888) (11) 070 Wholesale and retail trade 76,759 8,354 2,798 2,743 75,999 (1,768) (116) (1,535) 080 Transport and storage 26,790 2,912 614 577 26,734 (377) (36) (310) 090 Accommodation and food service activities 7,630 1,250 571 551 7,626 (276) (16) (247) 100 Information and communication 18,396 2,090 634 631 18,269 (206) (45) (144) 110 Financial and insurance activities 24,350 1,517 450 448 24,292 (293) (38) (223) 120 Real estate activities 60,216 6,995 1,890 1,889 60,216 (929) (126) (708) 130 Professional, scientific and technical activities 24,330 1,551 708 691 23,561 (428) (34) (348) 140 Administrative and support service activities 25,461 2,158 383 379 25,453 (293) (68) (194) 150 Public administration and defence, compulsory social security 205 64 12 11 205 (6) (1) (5) 160 Education 966 145 35 35 966 (20) (1) (17) 170 Human health services and social work activities 5,409 639 128 127 5,409 (80) (13) (54) 180 Arts, entertainment and recreation 2,099 641 136 136 2,099 (70) (7) (60) 190 Other services 6,883 1,297 474 274 6,882 (151) (26) (117) 200 Off-balance sheet exposures 372,589 20,139 2,281 2,281 372,589 (595) (166) (309) - Agriculture, forestry and fishing 988 48 3 3 988 (2) (1) Mining and quarrying 10,038 116 6 6 10,038 (2) (1) Manufacturing 117,538 5,630 420 420 117,538 (164) (53) (77) Electricity, gas, steam and air conditioning supply 34,247 1,525 60 60 34,247 (21) (13) (1) Water supply 3,418 108 81 81 3,418 (1) Construction 28,290 2,526 555 555 28,290 (125) (19) (91) Wholesale and retail trade 35,525 1,928 603 603 35,525 (123) (16) (87) Transport and storage 20,471 1,876 26 26 20,471 (12) (3) (5) Accommodation and food service activities 2,839 276 9 9 2,839 (6) (3) (2) Information and communication 26,357 1,222 247 247 26,357 (21) (12) (4) Financial and insurance activities 18,958 759 40 40 18,958 (23) (6) (9) Real estate activities 16,492 660 143 143 16,492 (40) (13) (19) Professional, scientific and technical activities 32,359 1,384 43 43 32,359 (20) (12) (1) Administrative and support service activities 16,220 1,206 22 22 16,220 (20) (10) (5) Public administration and defense, compulsory social security 125 1 1 125 Education 188 29 1 1 188 (1) Human health services and social work activities 1,474 67 1 1 1,474 (1) (1) Arts, entertainment and recreation 1,638 288 5 5 1,638 (2) (2) Other services 5,423 491 14 14 5,423 (10) (2) (6) TOTAL 809,818 67,366 17,193 16,799 806,398 (9,208) (941) (7,512) (11) a b c d e f In millions of euros 31 December 2023 Gross carrying amount\Nominal amount Accumulated impairment Accumulated negative changes in fair value due to credit risk on non-performing exposures Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (stage2) Of which non-performing Of which Instruments with significant increase in credit risk since initial recognition but not credit-impaired (Stage2) Of which Defaulted Of which Defaulted Of which loans and advances subject to impairment On balance sheet exposures 444,913 51,031 14,155 13,810 443,073 (8,753) (1,084) (6,942) (33) 010 Agriculture, forestry and fishing 12,989 969 460 457 12,841 (341) (40) (261) 020 Mining and quarrying 7,622 544 192 192 7,622 (124) (5) (108) 030 Manufacturing 91,434 9,444 2,603 2,439 90,492 (2,035) (235) (1,663) 040 Electricity, gas, steam and air conditioning supply 18,367 1,537 312 310 18,366 (138) (17) (102) 050 Water supply 2,507 276 108 106 2,507 (72) (4) (62) 060 Construction 25,544 2,919 2,110 2,099 25,523 (1,494) (49) (1,389) (6) 070 Wholesale and retail trade 69,557 10,492 2,120 2,084 69,546 (1,323) (172) (1,033) 080 Transport and storage 28,600 3,837 593 591 28,529 (423) (51) (335) 090 Accommodation and food service activities 7,545 1,761 653 652 7,517 (347) (69) (262) 100 Information and communication 16,133 2,147 620 606 15,758 (178) (46) (111) (27) 110 Financial and insurance activities 21,192 1,650 788 711 20,964 (502) (58) (408) 120 Real estate activities 61,270 7,111 1,494 1,494 61,256 (730) (181) (438) 130 Professional, scientific and technical activities 19,413 2,087 604 592 19,413 (333) (41) (257) 140 Administrative and support service activities 45,092 2,462 624 618 45,091 (334) (49) (252) 150 Public administration and defence, compulsory social security 724 55 59 59 724 (41) (4) (35) 160 Education 1,072 165 34 34 1,072 (29) (5) (16) 170 Human health services and social work activities 6,348 965 485 480 6,348 (139) (27) (96) 180 Arts, entertainment and recreation 1,974 511 141 141 1,974 (83) (19) (51) 190 Other services 7,531 2,098 155 146 7,530 (86) (12) (63) 200 Off-balance sheet exposures 358,419 21,465 1,389 1,386 358,419 (717) (239) (296) - Agriculture, forestry and fishing 1,511 91 3 3 1,511 (3) (2) Mining and quarrying 8,305 292 35 35 8,305 (6) (1) Manufacturing 112,756 4,542 352 352 112,756 (190) (63) (69) Electricity, gas, steam and air conditioning supply 31,873 750 60 60 31,873 (26) (6) (10) Water supply 3,317 90 19 19 3,317 (3) (2) Construction 32,639 2,205 356 356 32,639 (113) (29) (64) Wholesale and retail trade 37,411 2,657 170 170 37,411 (91) (24) (45) Transport and storage 20,851 3,981 33 33 20,851 (40) (31) (3) Accommodation and food service activities 2,595 247 30 30 2,595 (10) (6) (2) Information and communication 23,863 2,254 76 76 23,863 (50) (21) (21) Financial and insurance activities 20,121 904 37 37 20,121 (69) (13) (48) Real estate activities 15,335 732 55 55 15,335 (26) (9) (7) Professional, scientific and technical activities 22,323 877 29 26 22,323 (19) (7) (2) Administrative and support service activities 19,863 911 91 91 19,863 (27) (12) (5) Public administration and defence, compulsory social security 364 110 364 Education 279 30 1 1 279 (1) Human health services and social work activities 1,393 82 32 32 1,393 (3) (1) Arts, entertainment and recreation 1,030 259 5 5 1,030 (10) (6) Other services 2,589 452 5 5 2,589 (29) (7) (18) TOTAL 803,332 72,496 15,544 15,196 801,492 (9,470) (1,323) (7,238) (33) Industry risks are monitored in terms of gross exposure(11) and risk-weighted assets. Certain sectors, defined in line with the principles of the Group’s Risk Appetite Statement, are subject to enhanced monitoring and specific reviews. Their monitoring is carried out on a wider scope, taking into account all the exposures of the Business Groups and entities relating to these sectors as defined by the monitoring and the internal risk management nomenclature. The leveraged finance sector: as at 31 December 2024, the Group’s exposure to Leverage Buy-Out transactions with financial sponsors (“LBO”) amounted to EUR 13 billion, or 0.7% of the Group’s gross on-balance sheet and off-balance sheet commitments, compared with EUR 12.7 billion, or 0.7% as at 31 December 2023. This stability is observed in a more dynamic market in 2024 than in 2023, but dominated by refinancing operations rather than the recovery of the M&A market. These exposures are very granular with an average amount of EUR 13 million per loan (EUR 25 million taking into account all exposures related to the business groups). This portfolio has proven resilient in the current economic environment, despite an increase at the end of the year in defaulted assets. Doubtful outstanding represented 9.1% of the leveraged finance sector at 31 December 2024 (compared to 0.6% at 31 December 2023), and stage 3 provisions amountedto EUR 211 million (compared to EUR 156 million at end 2023). The shipping sector: the shipping sector covers a set of segments with very different dynamics: bulk, oil and gas tankers, container carriers, oil services and cruises. In 2024, these different segments were affected in very heterogeneous ways by the evolution of the macro-economic environment, but without an impact being major for any of the sub sectors. The cruise segment benefitted from a progressive recovery of demand but remains affected by the increase by the increase in construction costs, banking debt and export finance repayments that were delayed during the pandemic. The slowdown in maritime container transport continued in 2024 with a normalisation of freight rates in a context of overcapacity, this segment is still doing very well. The dry bulk and tanker segments remain subject to high market volatility linked to the consequences of the invasion of Ukraine and the Middle East conflict. Lastly, the tanker segment benefited from the volatility of oil flows due to geopolitical sanctions in a context of strong demand. LNG and Floating Storage and Regasification Units (FRSUs) benefited from the collapse of Russian natural gas exports to Europe via pipeline and the lasting change in the geopolitical context. The shipping industry has to face new environmental constraints (International Maritime Organisation (IMO) standards) involving investment efforts. A growing number of new orders concern hybrid LNG (Liquefied Natural Gas) propulsion or other technologies with a reduced impact on the environment. At 31 December 2024, gross exposure of the shipping finance sector was EUR 20.0 billion, i.e. 1.1% of the Group’s gross on-balance sheet and off-balance sheet credit exposures, compared to EUR 19.6 billion or 1.1% at 31 December 2023. Most of this exposure is borne by Corporate & Institutional Banking (more than 90%, stable compraed to 2023), with good geographical diversification of the client base. Doubtful loans accounted for 0.8% of the Group’s exposure to the shipping finance segment (compared to 2.4% of doubtful loans at 31 December 2023) and stage 3 provisions were EUR 117 million (compared to EUR 175 million in provisions at 31 December 2023). The aviation sector: business activity in this sector is split between airlines and aircraft leasing companies whose share is increasing. The gross exposure is EUR 15.8 billion at 31 December 2024, i.e. 0.9% of the Group’s total gross on- and off-balance sheet commitments, versus EUR 14.5 billion, i.e. 0.8% of the Group’s total gross commitments at 31 December 2023. Origination continues to be concentrated on leading airlines and lessors as well as the latest technology narrow bodies aircrafts with lower environmental impact and greater economic efficiency. The direct and indirect consequences of the current geopolitical context have not a visible impact on the cost of risk of this impproving portfolio even if some airlines are affected by the danger of certain air routes. Thus, the amount of doubtful loans remains low and strongly decreased at 31 December 2024 representing 0.7% of the sector’s outstandings (versus 2.0% in 2023). Stage 3 provisions are very limited and represented EUR 8 million at 31 December 2024, compared to EUR 58 million at 31 December 2023. The commercial real estate sector: the commercial real estate sector covers a set of segments with very different dynamics: logistics, office real estate, residential, hotels, shopping centres; all segments are affected by rising rates that are driving down valuations. The Group expects values to stabilise from 2024 onwards, but they will only gradually return to their 2022 level with different dynamic depending on sector, location and vacancy rates. More specifically, the office sector is undergoing a change in use following the widespread adoption of work-from-home and some assets may experience a high vacancy rate. At 31 December 2024, the gross exposure to the commercial real estate sector was EUR 67.3 billion, (EUR 71.7 billion at 31 December 2023), i.e. 3.7% of the Group’s total gross on- and off-balance sheet commitments (3.9% of total commitments in 2023). This exposure is mainly located in Europe and highly diversified between the various market segments, countries and entities of the Group. Defaulted assets represented 3.6% of the sector’s total gross exposure (compared to 2.4% in 2023). On commercial real estate, stage 3 provisions amounted to EUR 730 million as at 31 December 2024 (EUR 583 million as at 31 December 2023). The provisions for stages 1 and 2 amounted to EUR 201 million at 31 December 2024, i.e. an exposure coverage rate of 0.4%. The Power sector: the activity of this sector includes the generation, transportation, and distribution of electricity. A strong demand for electricity is expected in the coming years due to the need for electrification of many economic sectors, particularly as part of the decarbonisation of the economy. To meet the future demand for electricity and the gradual phase-out of fossil fuels, the “Renewables” segment will continue to expand, but certain adjustments have been made necessary regarding the economic parameters of new investments, in a context of inflation and increased costs related to the development of these assets. As at 31 December 2024, gross exposure to the electricity sector amounted to EUR 59.5 billion (or 3.3% of the Group’s total on- and off-balance sheet gross exposure), compared with EUR 55.2 billion as at 31 December 2023 (3.0% of gross exposure in 2023). 79% of counterparties have good credit quality (investment grade rating), and the amount of outstandings on doubtful customers was low, representing 0.5% of the sector as at 31 December 2024 (compared to 0.7% in 2023). Stage 3 provisions amounted to EUR 44 million as at 31 December 2024 (compared to EUR 87 million last year). The telecommunications sector: The activity of this sector includes telephone operators, Internet service providers and telecommunications operators. The telecoms sector is a mature market where penetration rates are only increasing at the margin. Revenue growth is still driven by the spread of 5G and especially fiber due to the sharp increase in data demand. Major investment programs to deploy 5G are coming to an end; The deployment of fiber is progressing differently depending on the country, which should allow operators' cash generation to progress. Mergers have been authorised by the regulators, leaving some hope of streamlining in order to restore the profitability of the players. Nevertheless, competition remains extremely strong and, in the absence of strong market growth, tariff offers have gone down, which weakens indebted operators, except the former national monopolies, which are traditionally less indebted. As at 31 December 2024, gross exposure to the telecommunications sector amounted to EUR 31.1 billion (or 1.7% of the Group's total gross on- and off-balance sheet commitments) compared to EUR 29.0 billion as at 31 December 2023 (1.6% of gross commitments in 2023). Approximately 2/3 of counterparties have good credit quality (investment grade rating), and the amount of outstanding loans on doubtful clients represents 1.9% of the sector as at 31 December 2024 (compared to 2.9% in 2023). Stage 3 provisions amounted to EUR 20 million as at 31 December 2024 (compared to EUR 89 million last year). The Group remains diversified, with no sector accounting for more than 10% of corporate lending exposure and more than 4.0% of total credit exposure as at 31 December 2023. At 31 December 2024, doubtful loans increased resulting from an increase in CPBS corporate and retail portfolios, especially in CPB France, CPB Belgium and ARVAL, offset by the disposal of non performing retail portfolios in Italy. The main effects explaining changes in the amount of doubtful outstandings in 2024 (EU CR2-B) are presented in note 4.f Impaired financial assets (stage 3) to the consolidated financial statments. The cost of risk and the change in impairment in respect of credit risk are presented in note 1.f.6 Cost of risk to the consolidated financial statements. The following table shows the carrying amounts of the financial assets and commitments at amortised cost and fair value through equity subject to impairment provisions for credit risk (i.e. excluding instruments at fair value through profit and loss) broken down by stage of impairment and by BNP Paribas internal rating in the prudential scope. Financial assets subject to impairment are recognised in the following accounting categories: amounts due from central banks (excluding cash); debt securities at fair value through equity or at amortised cost; loans and advances at amortised cost; financing and guarantee commitments given (off-balance sheet). ➤TABLE 52: BREAKDOWN OF FINANCIAL ASSETS SUBJECT TO IMPAIRMENT BY STAGE AND internal RATING [Audited] In millions of euros 31 December 2024 Gross carrying value Impairments Net carrying value BNP Paribas rating or equivalent TOTAL 1 to 3 4 to 5 6 to 8 9 to 10 Defaulted Central Banks 174,299 1,294 3,786 597 - 179,975 (15) 179,961 Stage 1 174,299 1,293 3,780 179,371 (14) 179,357 Stage 2 1 6 597 604 (1) 603 Stage 3 Debt securities at fair value through equity 69,567 3,071 2,251 1 106 74,997 (123) 74,874 Stage 1 69,567 2,956 2,084 1 74,608 (10) 74,598 Stage 2 116 167 283 (11) 272 Stage 3 106 106 (102) 4 Loans and advances at amortised cost 295,916 247,221 369,980 20,438 26,479 960,034 (17,152) 942,882 Stage 1 294,095 241,379 322,731 5,221 863,426 (1,812) 861,614 Stage 2 1,821 5,842 47,250 15,217 70,129 (1,920) 68,209 Stage 3 26,479 26,479 (13,420) 13,059 Debt securities at amortised cost 127,268 12,838 5,118 1,529 265 147,019 (188) 146,830 Stage 1 127,268 12,508 5,068 144,843 (16) 144,827 Stage 2 330 50 1,529 1,911 (28) 1,883 Stage 3 265 265 (145) 120 Financing and guarantee commitments 337,114 131,476 124,485 3,863 2,439 599,377 (496) 598,881 Stage 1 335,261 128,219 109,042 623 573,146 (163) 572,983 Stage 2 1,853 3,257 15,443 3,240 23,792 (173) 23,619 Stage 3 2,439 2,439 (160) 2,279 TOTAL 1,004,164 395,900 505,620 26,429 29,290 1,961,403 (17,974) 1,943,429 Financial assets subject to impairement are up by EUR 6 billion compared to 31 December 2023. The increase observed in loans and receivables, debt securities and financing and guarantee commitments is compensated by a decrease in central banks deposits. This annual variation relates mainly to financial assets and commitments rated 1 to 3 (+EUR 71 billion), while financial assets and commitments rated 4 to 5 decreased by EUR 63 billion, as a result of internal credit risk models review leading to an overall improvement in the ratings of counterparties concerned. Loans and receivables at amortised cost classified in stage 1 increased by EUR 29 billion, while outstandings classified in stage 2 decreased by EUR 4 billion. Debt securities at amortised cost classified in stage 2 amounted to EUR 1.9 billion compared to EUR 94 million in 31 December 2023, following the change in consolidation method for UkrSibbank entity (See section 8.d in financial statements Business combinations and loss of control or significant influence). In millions of euros 31 December 2023 Gross carrying value Impairments Net carrying value BNP Paribas rating or equivalent TOTAL 1 to 3 4 to 5 6 to 8 9 to 10 Defaulted Central Banks 280,710 1,085 3,489 312 - 285,596 (20) 285,576 Stage 1 280,710 1,085 3,484 285,279 (20) 285,259 Stage 2 5 312 317 317 Stage 3 Debt securities at fair value through equity 49,857 1,996 1,126 - 109 53,088 (121) 52,967 Stage 1 49,857 1,833 1,048 52,738 (7) 52,731 Stage 2 163 78 241 (12) 229 Stage 3 109 109 (102) 7 Loans and advances at amortised cost 222,805 283,937 380,766 20,237 25,887 933,632 (17,572) 916,060 Stage 1 220,797 276,147 331,317 5,766 834,027 (1,970) 832,057 Stage 2 2,008 7,790 49,449 14,471 73,718 (2,387) 71,331 Stage 3 25,887 25,887 (13,215) 12,672 Debt securities at amortised cost 105,170 12,653 3,016 67 180 121,086 (104) 120,982 Stage 1 105,170 12,632 2,960 50 120,812 (12) 120,800 Stage 2 21 56 17 94 (5) 89 Stage 3 180 180 (87) 93 Financing and guarantee commitments 274,772 159,280 118,897 7,169 1,658 561,776 (883) 560,893 Stage 1 272,732 155,360 104,403 1,064 533,559 (269) 533,290 Stage 2 2,040 3,920 14,494 6,105 26,559 (301) 26,258 Stage 3 1,658 1,658 (313) 1,345 TOTAL 933,314 458,951 507,294 27,785 27,834 1,955,178 (18,700) 1,936,478 Restructured loans [Audited] When a borrower is bordering on or is in financial difficulties, he may receive a concession from the Bank that would otherwise not have been granted if the borrower had not met with financial difficulties. The concession may be: a change to the contract terms and conditions; partial or total refinancing of the debt. The loan is then said to be “restructured”. It must retain the status of “restructured” during a period of observation, known as a probation period, for at least two years. The concept of restructuring is described in the accounting principles (note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements as at 31 December 2024) and is aligned with article 47 of Regulation 575/2013. According to the principles for identifying the restructured exposure amounts for the Group as a whole, for the non-retail business, exposures are identified individually during the loan process, notably during committees. As for restructured exposures for retail customers, they are usually identified via a systematic process requiring the use of algorithms whose parameters are validated by the RISK and Finance & Strategy Functions. Information on restructured loans is reported to the supervisory authority on a quarterly basis. The following table shows the gross value and impairment amounts of performing and non-performing loans that have been restructured. ➤TABLE 53: CREDIT QUALITY OF RESTRUCTURED LOANS (EU CQ1) [Audited] a b c e f g h In millions of euros 31 December 2024 Gross carrying amount Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions Collaterals received and financial guarantees received Performing exposures Non-performing exposures On performing exposures On non-performing exposures Of which Collateral and financial guarantees received on non-performing exposures Of which defaulted 010 Loans and advances 8,328 7,985 7,984 (289) (3,260) 8,500 2,850 030 General governments 14 3 3 (2) 040 Credit institutions 5 5 (5) 050 Other financial corporations 111 386 386 (2) (258) 162 114 060 Non-financial corporations 6,281 4,255 4,253 (145) (1,725) 6,766 2,006 070 Households 1,923 3,336 3,336 (141) (1,270) 1,572 730 080 Debt securities - 22 22 - (22) - - 090 Loan commitments given 2,209 433 431 (11) (34) 1,323 245 100 Total 10,537 8,440 8,437 (300) (3,316) 9,823 3,095 a b c e f g h In millions of euros 31 December 2023 Gross carrying amount Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions Collaterals received and financial guarantees received Performing exposures Non-performing exposures On performing exposures On non-performing exposures Of which Collateral and financial guarantees received on non-performing exposures Of which defaulted 010 Loans and advances 6,713 7,738 7,714 (312) (3,179) 6,977 2,695 030 General governments 15 5 5 (4) 040 Credit institutions 5 5 (5) 050 Other financial corporations 377 421 421 (11) (244) 252 169 060 Non-financial corporations 4,547 3,915 3,898 (140) (1,639) 4,981 1,660 070 Households 1,775 3,392 3,385 (162) (1,287) 1,744 866 080 Debt securities - 25 25 - (13) - - Assets held for sale 090 Loan commitments given 2,290 309 307 (18) (40) 1,465 64 100 Total 9,002 8,073 8,046 (331) (3,232) 8,442 2,758 Credit risk mitigation techniques Credit risk mitigation techniques are divided into two main categories: funded credit protection (collateral) pledged to the Bank is used to secure timely performance of a borrower’s financial obligations; unfunded credit protection (personal guarantee) is the commitment by a third party to replace the primary obligor in the event of default. Thus, public guarantee mechanisms are considered as personal guarantees. By extension, credit insurance and credit derivatives (purchased protection) fall into this category. The amount of personal guarantees and collateral recognised on loans and receivables and debt securities in the prudential reporting scope amounted to EUR 537 billion at 31 December 2024. ➤TABLE 54: CREDIT RISK MITIGATION TECHNIQUES (EU CR3) [Audited] a b c d e In millions of euros 31 December 2024 Gross carrying amount Unsecured net carrying amount Secured net carrying amount Secured by physical collateral Secured by personal guarantees Secured by credit derivatives 1 Loans and advances 1,143,839 593,984 532,676 320,793 211,883 2 Debt securities 223,430 219,153 3,925 2,035 1,890 3 Total 1,367,269 813,137 536,601 322,828 213,773 - 4 of which non-performing exposures 27,421 5,048 8,646 5,435 3,211 EU-5 of which defaulted 26,923 4,785 8,506 5,420 3,086 a b c d e In millions of euros 31 December 2023 Gross carrying amount Unsecured net carrying amount Secured net carrying amount Secured by physical collateral Secured by personal guarantees Secured by credit derivatives 1 Loans and advances 1,221,527 656,149 547,754 315,544 232,210 2 Debt securities 176,026 171,747 4,017 1,795 2,222 3 Total 1,397,553 827,895 551,771 317,339 234,432 - 4 of which non-performing exposures 27,126 5,089 8,551 5,847 2,704 EU-5 of which defaulted 26,661 4,981 8,343 5,826 2,517 Credit Risk Mitigants (CRM) are taken into account in accordance with the regulation. In particular, their effect is assessed under conditions characteristic of an economic downturn. For the scope under the IRB approach, personal guarantees and collateral are taken into account, provided they are eligible, by decreasing the Loss Given Default (LGD) parameter corresponding to an increase in the Global Recovery Rate (GRR) that applies to the transactions of the banking book. The value taken into consideration takes account, where relevant, of currency and maturity mismatches and, for funded credit protection, of a haircut applied to the market value of the pledged asset based on a default scenario during an economic downturn. The amount of unfunded credit protection to which a haircut is applied depends on the enforceable nature of the commitment and the risk of simultaneous default by the borrower and guarantor. For the scope under the standardised approach, unfunded credit protection is taken into account provided it is eligible, by applying the more favourable risk weight of the guarantor to a portion of the secured exposure adjusted for currency and maturity mismatches. Funded credit protection is taken into account as a decrease in the exposure, after adjustment for any currency and maturity mismatches and a discount to take account of volatility in market value for financial security collateral. The assessment of the credit risk mitigating effect follows a methodology that is approved for each activity and is used throughout the Group. These techniques are monitored in accordance with the monitoring and portfolio management procedures described in the Credit risk management policy section. ➤TABLE 55: CREDIT RISK MITIGATION IN IRBA AND STANDARD APPROACH In millions of euros 31 December 2024 31 December 2023 Gross exposure Risk mitigation amount Gross exposure Risk mitigation amount Collateral Guarantees and credit derivatives Total risk mitigation Collateral Guarantees and credit derivatives Total risk mitigation IRB approach 1,385,084 214,913 227,608 442,521 1,431,267 233,297 197,157 430,454 Standardised approach 353,520 26,923 42,837 69,760 340,936 42,736 25,381 68,117 TOTAL 1,738,603 241,837 270,444 512,281 1,772,203 276,033 222,538 498,570 ➤TABLE 56: SECURED EXPOSURES IN IRB APPROACH (EU CR7-A) a b c d e f g h i j k l m In millions of euros 31 December 2024 Total gross exposures(1) Total of the risk-exposed value Credit Risk Mitigation techniques Total RWA (reduction effects only)(2) Funded credit Protection (physical collateral) Unfunded credit protection Part covered by Financial Collateral Part covered by other eligible physical collaterals (%) Part covered by other physical funded credit protection (%) Part covered by guarantees Part covered by credit derivatives of which immovable property Collaterals of which receivables of which other physical collateral of which cash on deposit of which life insurance policies of which Instruments held by a third party 1 Central governments and central banks 364,667 364,093 0,00% 0.01% 0.01% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 1.13% 0.00% 3,877 2 Institutions 57,643 45,122 2.97% 0.74% 0.72% 0.00% 0.02% 3.64% 3.64% 0.00% 0.00% 18.86% 0.00% 11,043 3 Corporates 681,194 480,935 2.13% 17.49% 9.64% 1.20% 6.65% 0.43% 0.35% 0.08% 0.00% 23.89% 0.01% 237,974 3.1 of which SMEs 40,129 34,145 2.86% 38.38% 34.67% 2.99% 0.72% 1.50% 0.84% 0.67% 0.00% 15.78% 0.00% 19,799 3.2 of which specialised lending 81,299 71,680 0.20% 53.88% 17.98% 0.26% 35.64% 0.26% 0.26% 0.00% 0.00% 24.72% 0.00% 29,818 3.3 of which other 559,766 375,110 2.43% 8.63% 5.77% 1.22% 1.65% 0.37% 0.33% 0.04% 0.00% 24.47% 0.01% 188,357 4 Retail 281,579 278,077 0.34% 44.91% 44.73% 0.15% 0.03% 0.71% 0.07% 0.65% 0.00% 31.42% 0.00% 57,947 4.1 of which immovable property SMEs 11,391 10,959 0.11% 91.38% 91.36% 0.01% 0.01% 0.07% 0.03% 0.04% 0.00% 2.07% 0.00% 2,798 4.2 of which immovable property non-SMEs 185,506 185,517 0.02% 57.87% 57.87% 0.00% 0.00% 0.04% 0.00% 0.04% 0.00% 41.16% 0.00% 27,360 4.3 of which qualifying revolving 11,813 9,881 0,00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2,800 4.4 of which other SMEs 30,851 29,746 1.11% 19.91% 18.22% 1.38% 0.31% 2.02% 0.33% 1.70% 0.00% 28.98% 0.00% 9,336 4.5 of which other non-SMEs 42,018 41,975 1.36% 3.79% 3.79% 0.00% 0.00% 3.10% 0.18% 2.92% 0.00% 5.17% 0.00% 15,654 5 TOTAL 1,385,084 1,168,227 1.07% 17.92% 14.64% 0.53% 2.75% 0.49% 0.30% 0.19% 0.00% 18.39% 0.00% 310,841 Excluding derivatives and securities financing transactions subject to counterparty risk exposures. In accordance with the Group’s IRBA methodology, the impact of risk mitigation techniques is treated only by reducing LGD (no substitution approach). a b c d e f g h i j k l m In millions of euros 31 December 2023 Total gross exposures(1) Total of the risk-exposed value Credit Risk Mitigation techniques Total RWA (reduction effects only)(2) Funded credit Protection (physical collateral) Unfunded credit protection Part covered by Financial Collateral Part covered by other eligible physical collaterals (%) Part covered by other physical funded credit protection (%) Part covered by guarantees Part covered by credit derivatives of which immovable property Collaterals of which receivables of which other physical collateral of which cash on deposit of which life insurance policies of which Instruments held by a third party 1 Central governments and central banks 432,341 431,674 0,00% 0.01% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.83% 0.00% 4,360 2 Institutions 45,783 37,244 2.14% 1.19% 1.14% 0.03% 0.02% 0.03% 0.03% 0.00% 0.00% 15.49% 0.00% 7,963 3 Corporates 671,642 482,551 2.29% 18.95% 9.28% 1.66% 8.01% 0.53% 0.46% 0.07% 0.00% 20.67% 0.01% 218,425 3.1 of which SMEs 49,095 39,427 1.61% 33.66% 26.45% 6.42% 0.80% 1.03% 0.78% 0.24% 0.00% 17.03% 0.00% 21,967 3.2 of which specialised lending 80,020 69,038 0.14% 54.34% 18.30% 1.95% 34.09% 0.60% 0.60% 0.00% 0.00% 18.37% 0.00% 22,918 3.3 of which other 542,527 374,086 2.76% 10.87% 5.81% 1.10% 3.96% 0.46% 0.40% 0.06% 0.00% 21.47% 0.01% 173,540 4 Retail 281,501 278,276 0.41% 44.47% 44.29% 0.15% 0.04% 0.75% 0.05% 0.69% 0.00% 31.64% 0.00% 55,989 4.1 of which immovable property SMEs 11,106 10,675 0.09% 91.32% 91.30% 0.02% 0.01% 0.06% 0.02% 0.04% 0.00% 2.10% 0.00% 2,880 4.2 of which immovable property non-SMEs 185,070 185,085 0.02% 57.65% 57.64% 0.00% 0.00% 0.05% 0.00% 0.04% 0.00% 41.28% 0.00% 23,174 4.3 of which qualifying revolving 11,901 10,051 0,00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 3,366 4.4 of which other SMEs 31,932 30,819 1.38% 18.36% 16.74% 1.31% 0.31% 1.93% 0.31% 1.62% 0.00% 29.77% 0.00% 9,469 4.5 of which other non-SMEs 41,492 41,644 1.58% 3.95% 3.95% 0.00% 0.00% 3.32% 0.11% 3.21% 0.00% 5.39% 0.00% 17,100 5 TOTAL 1,431,267 1,229,744 1.06% 17.54% 13.70% 0.69% 3.15% 0.38% 0.19% 0.18% 0.00% 16.03% 0.00% 286,737 Excluding derivatives and securities financing transactions subject to counterparty risk exposures. In accordance with the Group’s IRBA methodology, the impact of risk mitigation techniques is treated only by reducing LGD (no substitution approach). The main providers of unfunded credit protection (personal guarantees) are the guarantee institutions in the Commercial & Personal Banking of the CPBS mortgage business (mainly housing loans in France) and, since 2020, States or public organisms that have set up public guarantee mechanisms to counter the public health crisis. As at 31 December 2024, 78% of exposure to property loans was concentrated in the Group’s two main Domestic Markets (France, Belgium). In view of the specific features of these markets (amortising long-term financing, primarily at fixed rates), the LTV (Loan-to-value) ratio is not a main monitoring indicator at Group level. Funded credit protection Funded credit protection is divided into two categories: financial collateral: this consists of cash amounts (including gold), shares in collective investment funds, equities (listed or unlisted) and bonds; other diverse forms of collateral: these include real estate mortgages or ship mortgages, pledges of equipment or inventories, transfers of commercial receivables or any other rights to an asset of the counterparty. To be considered as eligible, funded credit protection must fulfil the following conditions: the value of the collateral must not be highly correlated with the risk on the obligor (in particular, shares of the obligor are not eligible); the pledge must be documented; the pledged asset must be traded on a liquid secondary market to enable rapid resale; the Bank must have a regularly updated value of the pledged asset; the Bank must have a reasonable level of comfort in the potential appropriation and realisation of the asset concerned. In the Retail Banking business, the presence or absence of a particular type of collateral may, depending on the coverage ratio, lead to assigning the exposure to particular LGD class on a statistical basis. Unfunded credit protection Guarantors are subject to the same rigorous credit risk assessment process as primary obligors and are assigned risk parameters according to similar methods and procedures. Guarantees are granted by the obligor’s parent company or by other entities such as financial institutions. Other examples of guarantees are credit derivatives, guarantees from public insurers for export financing or private insurers. Consideration of a guarantee consists of determining the average amount the Bank can expect to recover if the borrower defaults and the guarantee is called in. It depends on the amount of the guarantee, the risk of simultaneous default by the borrower and the guarantor (which is a function of the probability of default of the borrower, of the guarantor, and the degree of correlation between borrower and guarantor default, which is high if they belong to the same business group or the same sector and low if not) and the enforceable nature of the guarantee. Optimising credit risk management through CDS (EU CR7) As part of its role of optimising credit risk management for CIB, Portfolio Management (PM) sets up hedges using credit derivatives, and mainly credit default swaps (CDS). These CDS are used as part of an active management policy, the main aim being to hedge migration and concentration risks and manage major exposures. The underlying assets are loans made to large corporates by CIB Global Banking, and occasionally those made by the Commercial & Personal Banking activity. These hedges are put on by CIB to hedge exposures mainly treated under the IRB approach. Provided they are eligible, they have the effect of decreasing the estimated Loss Given Default for the underlying asset, and, therefore, reducing its consumption in terms of risk-weighted assets. There was no reduction in risk-weighted assets resulting from hedging operations via CDS at 31 December 2024, compared with EUR 165 million at 31 December 2023 (EU CR7). COLLATERAL SEIZED ➤TABLE 57: COLLATERAL OBTAINED BY TAKING POSSESSION AND EXECUTION PROCESSES (EU CQ7) [Audited] a b a b In millions of euros 31 December 2024 31 December 2023 Collateral obtained by taking possession accumulated Collateral obtained by taking possession accumulated Value at initial recognition Accumulated negative changes Value at initial recognition Accumulated negative changes 010 Property Plant and Equipment (PP&E) 020 Other than Property Plant and Equipment 191 (23) 227 (29) 030 Residential immovable property 167 (23) 199 (29) 040 Commercial immovable property 6 8 050 Movable property (auto, shipping, etc.) 060 Equity and debt instruments 19 20 070 Other collateral 080 TOTAL 191 (23) 227 (29) Collateral obtained by taking possession includes assets obtained in exchange for cancellation of the receivable, whether on a voluntary basis or on the basis of legal proceedings. 5.5Securitisation in the banking book Securitisation means a transaction or scheme, whereby the credit risk associated with an exposure or pool of exposures is tranched, having the following characteristics: payments made in the transaction or scheme are dependent upon the performance of the exposure or pool of exposures; the subordination of tranches determines the distribution of losses during the life of the risk transfer. Any commitment (including derivatives and liquidity lines) granted to a securitisation operation must be treated as a securitisation position. Most of these commitments are held in the prudential banking book (section 5.5). Commitments held in the trading book are set out in section 5.7 Market risk. The securitisation transactions discussed below concern: the programmes originated by the Group for its own account, securitising its credit exposures (“originator” role), which are recognised as efficient under the Basel 3 regulatory framework; the programmes that the Group has structured on behalf of its clients (“sponsor” role where clients’ assets are securitised), in which it has retained positions; the programmes to which the Group has subscribed without having a role in structuring the operation (“investor” role). Securitisation positions deducted from own funds, amounting to -EUR 402 million at 31 December 2024, are now included throughout this section 5.5. BNP Paribas securitisation activities The Group’s activities in each of its roles as originator, sponsor and investor, are described below: ➤TABLE 58: SECURITISED EXPOSURES AND SECURITISATION POSITIONS (HELD OR ACQUIRED) BY ROLE BNP Paribas role In millions of euros 31 December 2024 31 December 2023 Securitised exposures originated by BNP Paribas(1) Securitised positions held or acquired (EAD)(3) Securitised exposures originated by BNP Paribas(1) Securitised positions held or acquired (EAD)(3) Efficient securitisation (SRT)(2) Efficient securitisation (SRT)(2) Originator 149,568 73,815 47,211 136,720 62,097 42,798 Sponsor 37,410 35,470 Investor 35,696 23,003 TOTAL 149,568 73,815 120,318 136,720 62,097 101,271 Securitised exposures originated by the Group correspond to the underlying exposures recognised on the Group’s balance sheet and off-balance sheet which have been securitised. Securitisation programmes meeting the Significant Risk Transfer (SRT) criteria, see next paragraph. Securitisation positions correspond to tranches retained and off-balance sheet commitments granted by the Group in securitisation transactions originated or arranged by the Group, as well as tranches acquired by the Group in securitisation transactions arranged by other parties. Proprietary securitisation (originator) The Group acts as originator by securitising its own credit exposures in order to obtain new sources of financing and improve the liquidity of its balance sheet, and to reduce its risk and capital requirements. Where the purpose of the transaction is solely to reduce risk, the Group will favour so-called “synthetic” securitisation transactions, ensuring the risk transfer of exposures (mortgages, consumer loans, corporate loans, etc.) through credit derivatives or guarantees. These transactions are initiated mainly by Corporate & Institutional Banking in collaboration with the Commercial, Personal Banking & Services business lines. In the context of securitisation transactions carried out for financing purposes, the Group will favour so-called “cash” or “traditional” securitisations, characterised by the sale of securitised exposures to a specially created entity. These operations are initiated by ALM Treasury in collaboration with the businesses whose exposures are securitised in exchange for liquid assets eligible for central bank financing or included in the global liquidity reserve (see paragraph Wholesale funding and liquidity reserve monitoring indicators in section 5.8 Liquidity risk). Risk transfer of own account securitisation transactions The capital requirement of securitised credit exposures and securitisation positions depends on the risk transfer level of the transaction. When the exposures securitised by the Group in the context of own‑account securitisation transactions meet the Basel eligibility criteria, in particular that of significant risk transfer as defined in Regulation (EU) No. 2017/2401, they are excluded from the calculation of credit risk-weighted assets and the securitisation transaction is said to be efficient. In this case, only the positions retained by the institution and any commitments granted to the structure after securitisation are subject to risk-weighted assets calculation. Exposures securitised through proprietary securitisation transactions that do not meet Basel eligibility criteria (inefficient securitisations) remain in their original prudential portfolio. Their capital requirement is calculated as if they were not securitised and is included in section 5.4 Credit risk. Efficient securitisations Exposures retained in securitisation positions originated by BNP Paribas amounted to EUR 47.2 billion at 31 December 2024, corresponding to positions in forty-four efficient securitisation programmes under Basel rules. At 31 December 2024, the main securitisation transactions recognised as efficient are the following: a synthetic transaction initiated in 2024 by Corporate & Institutional Banking concerning a EUR 14.2 billion portfolio of large corporate loans; a synthetic transaction initiated in 2024 by Corporate & Institutional Banking concerning a EUR 1.9 billion portfolio of large corporate loans; a synthetic transaction initiated in 2024 by Corporate & Institutional Banking concerning a EUR 1.7 billion portfolio of large corporate loans; a synthetic transaction initiated in 2024 by BNL bc concerning a EUR 1.4 billion portfolio of SME loans; a synthetic transaction initiated in 2024 by Commercial & Personal Banking in France concerning a EUR 1.3 billion portfolio of SME loans; a synthetic transaction initiated in 2024 by Commercial & Personal Banking in Belgium concerning a EUR 1.1 billion portfolio of corporate loans; a synthetic transaction initiated in 2023 by Corporate & Institutional Banking concerning a EUR 4.9 billion portfolio of corporate loans; a synthetic transaction initiated in 2023 by Corporate & Institutional Banking concerning a EUR 1.7 billion portfolio of corporate loans a synthetic transaction initiated in 2023 by Commercial & Personal Banking in France concerning a EUR 1.5 billion portfolio of SME loans; a synthetic transaction initiated in 2023 by Commercial & Personal Banking in France concerning a EUR 1.3 billion portfolio of SME loans; a synthetic transaction initiated in 2023 by Commercial & Personal Banking in France concerning a EUR 1.1 billion portfolio of corporate loans; a synthetic transaction initiated in 2022 by Corporate & Institutional Banking concerning a EUR 3.0 billion portfolio of large corporate loans; a synthetic transaction initiated in 2022 by Corporate & Institutional Banking concerning a EUR 1.3 billion portfolio of large corporate loans; a synthetic transaction initiated in 2022 by BNL bc concerning a EUR 1.3 billion portfolio of SME loans; a synthetic transaction initiated in 2022 by Corporate & Institutional Banking concerning a EUR 0.9 billion portfolio of corporate loans; a synthetic transaction initiated in 2021 by Corporate & Institutional Banking concerning a EUR 0.9 billion portfolio of corporate loans. a synthetic transaction initiated in 2019 by Corporate & Institutional Banking concerning a EUR 1.1 billion portfolio of corporate loans. The Group has not set up own account securitisations of revolving exposures with an anticipated repayment clause. At 31 December 2024, there were no assets awaiting securitisation. ➤TABLE 59: SECURITISED EXPOSURES ORIGINATED BY BNP PARIBAS In millions of euros Securitised exposures originated by BNP Paribas 31 December 2024 31 December 2023 Traditional 7,083 6,767 Of which IRB approach 2,396 2,739 Of which standardised approach(1) 4,687 4,027 Synthetic 66,732 55,330 Of which IRB approach 64,945 55,330 Of which standardised approach(1) 1,787 TOTAL 73,815 62,097 Securitisation programmes processed under SEC-ERBA approach. ➤TABLE 60: SECURITISED EXPOSURES BY BNP PARIBAS AS AN ORIGINATOR BY UNDERLYING ASSET CATEGORY(1) In millions of euros 31 December 2024 31 December 2023 Originated securitised exposures Originated securitised exposures Traditional Synthetic Total Traditional Synthetic Total Residential real estate 629 629 Consumer loans 5,091 900 5,991 4,629 4,629 Loans to corporates 1,487 65,203 66,690 1,572 55,330 56,903 Finance leases 505 505 565 565 TOTAL 7,083 66,732 73,815 6,767 55,330 62,097 This breakdown is based on the predominant underlying asset of the securitisations. Inefficient securitisations Inefficient securitisation transactions are mainly carried out for refinancing purposes. These operations, which do not result in any risk transfer within the meaning of Regulation (EU) No. 2017/2401, do not have a diminishing effect on the calculation of risk-weighted assets. Securitised exposures are included in customer loans and subject to credit risk-weighted asset calculations. As at 31 December 2024, BNP Paribas originated 27 securitisation transactions, for a total amount of EUR 70.5 billion of securitised exposures. The main transactions concern: Commercial & Personal Banking in Belgium (EUR 31.4 billion), BNP Paribas Personal Finance (EUR 7.0 billion), Commercial & Personal Banking in France (EUR 27.8 billion) and BNL bc (EUR 0.1 billion). Credit quality of securitised exposures The table below presents all exposures securitised by BNP Paribas as part of efficient and ineffective securitisation transactions carried out as originator: ➤TABLE 61: EXPOSURES SECURITISED BY THE INSTITUTION – EXPOSURES IN DEFAULT (EU SEC5) a b a b In millions of euros 31 December 2024 31 December 2023 Exposures securitised by the institution as originator Exposures securitised by the institution as originator Total gross exposure amount(1) Total gross exposure amount(1) of which in default of which in default 2 Retail 72,480 614 66,052 1,204 3 Residential real estate 55,649 486 49,650 1,025 4 Credit card and consumer loans 16,831 128 16,402 178 7 Corporate 77,088 7 70,667 144 8 Loans to corporates 76,584 70,102 142 9 Commercial real estate 10 Finance lease and commercial receivables 505 7 565 2 1 TOTAL 149,568 621 136,720 1,348 Underlying exposures of effective and ineffective securitisation transactions. Securitisation on behalf of clients (sponsor) As part of its third-party securitisation activity, Corporate & Institutional Banking enables its large corporate and institutional clients to obtain attractive financing conditions directly from the financing markets, through multiple-seller conduits (short-term refinancing markets) or specific structured operations (medium and long-term refinancing). ➤TABLE 62: SECURITISED EXPOSURES BY BNP PARIBAS AS SPONSOR(1) BY UNDERLYING ASSET CATEGORY(1) Securitised exposures In millions of euros 31 December 2024 31 December 2023 Traditional Synthetic Total Traditional Synthetic Total Consumer loans 20,117 20,117 16,700 16,700 Loans to corporates 765 765 1,145 1,145 Trade receivables 15,979 15,979 15,979 15,979 Finance leases 250 250 Other assets 299 299 3 3 TOTAL 37,410 - 37,410 35,470 - 35,470 This breakdown is based on the predominant underlying asset of the securitisation. The financing structures thus put in place are accompanied by liquidity lines and, where appropriate, by the granting of guarantees by the Group, which are subject to a capital requirement. Commitments and positions retained or acquired by BNP Paribas on securitisation programmes as sponsor, amounted to EUR 37.4 billion at 31 December 2024. Short-term refinancing At 31 December 2024, two consolidated multi-seller conduits (Starbird and Matchpoint) were sponsored by the Group. These conduits, by seeking refinancing on the local short-term commercial paper market, are able to provide CIB clients, large corporates and institutions with an attractive financing solution in exchange for some of their assets (trade receivables, finance leases for automobiles or various equipment, credit card receivables, etc.). BNP Paribas provides each of these conduits with a liquidity line which amounted to EUR 35.6 billion at 31 December 2024, compared with EUR 33.7 billion at 31 December 2023. Medium/long-term refinancing In Europe and North America, the Group’s structuring platform provides financing solutions to its clients, based on products adapted to current conditions in terms of risk and liquidity. Altogether, the facilities granted by the Group through these transactions amounted to EUR 1.8 billion at 31 December 2024, compared with EUR 1.8 billion at 31 December 2023. Securitisation as investor The securitisation positions of BNP Paribas as an investor amounted to EUR 35.7 billion at 31 December 2024, with an increase of EUR 12.7 billion compared to 31 December 2023 (EUR 23.0 billion). Investments made by the Group in third-party securitisation transactions are mainly concentrated in Capital markets, a joint-venture between Global Banking and Global Markets with an exposure of EUR 33.6 billion at 31 December 2024 compared to EUR 23.7 billion at 31 December 2023. Capital Markets is involved in setting up, then financing and hedging (as a “swap” supplier) structured asset financing operations initiated by its clients, including mainly institutions, large companies or private equity platforms. Investor securitisation exposures also include historical positions within the BNP Paribas Fortis entity managed in run-off. This portfolio, housed in the Corporate Centre, amounted to EUR 0.3 billion at 31 December 2024 compared with EUR 0.3 billion at 31 December 2023. The table below shows the securitisation vehicles set up on behalf of the Group or its customers. ➤TABLE 63: LIST OF SECURITISATION VEHICLES INITIATED BY THE GROUP (SEC-A) Business line which initiated the vehicle Underlying asset category(1) VEHICLES SPONSORED BY THE GROUP AGL CREDIT EF 2022-1 LTD. Corporate & Institutional Banking SME loans BNPP AM EURO CLO 2017 DESIGNATED ACTIVITY COMPANY Asset Management SME loans BNPP AM EURO CLO 2018 DAC Asset Management SME loans BNPP AM EURO CLO 2019 DAC Asset Management SME loans BNPP AM EURO CLO 2021 DAC Asset Management SME loans BNPP IP EURO CLO 2015-1 DAC Asset Management SME loans CREDIARC SPV S.R.L. BNL bc Other assets EXETER FUNDING II LLC Corporate & Institutional Banking Consumer loans GREENSKY, INC. Corporate & Institutional Banking Receivables GREENWICH FUNDING US1 LTD Corporate & Institutional Banking Consumer loans HYUNDAI CAPITAL SERVICES, INC Corporate & Institutional Banking Consumer loans HYUNDAI CARD CO, LTD Corporate & Institutional Banking Crédit card's receivables IS SOL AGORA GREEN II ESG FIDC SEGMENTO FINANCEIRO DE RESPONSABILIDADE Corporate & Institutional Banking Commercial loans JBLU UT LENDING 2024‑1 LLC Corporate & Institutional Banking Other assets KKR CLO 55, LTD. Corporate & Institutional Banking SME loans MADISON PARK FUNDING LXVIII LTD Corporate & Institutional Banking SME loans MATCHPOINT FINANCE PUBLIC LIMITED COMPANY Corporate & Institutional Banking Other assets OHA CREDIT FUNDING 20, LTD Corporate & Institutional Banking SME loans PK ALIFT WH 5 LP Corporate & Institutional Banking Other assets SAMSUNG CARD CO., LTD. Corporate & Institutional Banking Credit card's receivables STARBIRD FUNDING CORPORATION Corporate & Institutional Banking Consumer loans VCL MASTER RESIDUAL VALUE S.A Corporate & Institutional Banking Finance lease VEHICLES WHICH ACQUIRE EXPOSURES ORIGINATED BY THE GROUP (ORIGINATOR)(2) AUTOFLORENCE 2 SRL Personal Finance Consumer loans AUTOFLORENCE 3 SRL Personal Finance Consumer loans AUTONORIA DE 2023 Personal Finance Consumer loans AUTONORIA SPAIN 2019 Personal Finance Consumer loans AUTONORIA SPAIN 2021, FT Personal Finance Consumer loans AUTONORIA SPAIN 2022, FT Personal Finance Consumer loans AUTONORIA SPAIN 2023, FT Personal Finance Consumer loans BROADWAY Corporate & Institutional Banking SME loans DONATELLO 1 Personal Finance Consumer loans DUCALE 2024-1 Commercial & Personal Banking in Belgium SME loans ECARAT DE SA 2024-1 Personal Finance Consumer loans ECHO Corporate & Institutional Banking SME loans FCT MONTE CRISTO 2 – COMPARTMENT RESONANCE 11 Corporate & Institutional Banking SME loans FCT MONTE CRISTO 2 COMPARTMENT HAREWOOD Corporate & Institutional Banking SME loans FCT MONTE CRISTO 2 COMPARTMENT RESONANCE 6B Corporate & Institutional Banking SME loans FCT MONTE CRISTO COMPARTMENT RESONANCE 7 Corporate & Institutional Banking SME loans FCT MONTE CRISTO COMPARTMENT RESONANCE 9 Corporate & Institutional Banking SME loans FONDS COMMUN DE TITRISATION- RESONANCE 4 Corporate & Institutional Banking SME loans HANOVRE Commercial & Personal Banking in France SME loans HAREWOOD 2 Corporate & Institutional Banking SME loans JUNO_1 BNL bc SME loans JUNO_2 BNL bc SME loans MARIANNE Commercial & Personal Banking in France SME loans MAZURKA Commercial banking in the rest of the world SME loans MERIDIAN Corporate & Institutional Banking SME loans MINERVA 2 BNL bc SME loans MINERVA 3 BNL bc SME loans MINERVA 4 BNL bc SME loans NORIA DE 2024 Personal Finance Consumer loans NORIA 2021 Personal Finance Consumer loans NORIA 2023 Personal Finance Consumer loans PARK MOUNTAIN 2023 Commercial & Personal Banking in Belgium SME loans PARK MOUNTAIN SECURITISATION 2019 Commercial & Personal Banking in Belgium SME loans PBD GERMANY AUTO LEASE MASTER S.A. Personal Finance Finance lease PIXEL 2021 Leasing Solutions Finance lease PROXIMA 2 Commercial & Personal Banking in France SME loans PROXIMA 3 Commercial & Personal Banking in France SME loans PROXIMA 4 Commercial & Personal Banking in France SME loans PROXIMA 5 Commercial & Personal Banking in France SME loans RESONANCE 10 Corporate & Institutional Banking SME loans RESONANCE 12B Corporate & Institutional Banking SME loans RESONANCE 8 Corporate & Institutional Banking SME loans RESONANCE 12A Corporate & Institutional Banking SME loans VISIONARY 2023 Commercial banking in the rest of the world Residential real estate VEHICLES INCLUDED IN THE PRUDENTIAL CONSOLIDATION SCOPE See note 8.k Scope of consolidation (reference t) to the consolidated financial statements. The category is based on the predominant underlying asset of the securitisation. Efficient securitisation. Accounting methods [Audited] (See note 1 to the consolidated financial statements – Summary of significant accounting policies applied by the Group.) The accounting classification of securitisation positions in the banking book is shown in Table 9: Prudential balance sheet by risk type (EU LI1-B). Securitisation positions classified as “Financial assets at amortised cost” are measured using the method described in note 1.f.1 Financial assets at amortised cost to the consolidated financial statements: the effective interest rate used to recognise interest income is measured on the basis of an expected cash flow model. From the outset, these positions are subject to an impairment calculation for expected credit risk losses (see note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements). Securitisation positions classified on an accounting basis as “Financial assets at fair value through equity” are measured using the method described in note 1.f.2 Financial assets at fair value through shareholders’ equity to the consolidated financial statements. Changes in fair value determined according to the principles listed in note 1.f.10 Determination of fair value to the consolidated financial statements (excluding revenue recognised using the effective interest method) are presented in a specific subsection of shareholders’ equity along with expected credit risk losses calculated using the methods described in note 1.f.5 Impairment of financial assets measured at amortised cost and debt instruments measured at fair value through shareholders’ equity to the consolidated financial statements. Upon disposal, amounts previously recognised in recyclable equity are transferred to the profit and loss account. Securitisation positions classified on an accounting basis as “Financial instruments at fair value through profit or loss” are measured using the method described in note 1.f.7 Financial instruments at fair value through profit or loss to the consolidated financial statements. Proceeds from the sale of securitisation positions are recognised in accordance with rules for the category of origin of positions sold. Synthetic securitisations in the form of credit derivatives (credit default swaps) or guarantees received follow accounting rules appertaining respectively: to trading portfolio derivatives. These are measured at fair value through profit or loss (see note 1.f.7 Financial instruments at fair value through profit or loss to the consolidated financial statements); to financial guarantees received, which cannot be considered as forming an integral part of secured assets. If it is virtually certain that a loss caused by a defaulting debtor will be offset by the guarantor, the guarantee is then recognised as a reimbursement asset (right to reimbursement for expected credit losses) and expected credit losses on the asset are, at the same time, recognised in profit or loss. The overall impact in terms of profit or loss is the same as if the guarantee had been recognised in the measurement of expected credit losses, with the difference that the guarantee received is shown as a reimbursement asset rather than as a reduction in the expected credit losses on the asset. Assets awaiting securitisation are classified as: financial instruments at amortised cost or at fair value through equity and in the prudential banking book in the case of exposures resulting from the Bank’s balance sheet, for which the Bank will be originator in the future securitisation within the meaning of Basel 3; financial instruments at fair value through profit or loss and in the prudential banking book in the case of exposures purchased and put into warehousing, for which the Bank will be sponsor in the future securitisation within the regulatory meaning. Securitisation risk management The risk management framework for securitisation is part of the risk management described in section 5.3 Risk management. The business lines represent the first line of defence with responsibility for understanding all the risks incurred in order to ensure correct evaluation. The RISK Function acts independently, as a second line of defence. Positions taken are monitored to measure changes in individual and portfolio risks. The monitoring of securitised assets covers credit, counterparty, market and liquidity risks on the underlying assets. Credit risk on securitised assets Securitisation assets outside the trading book are subject to specific approval by the Credit Committees. For new transactions, a credit proposal is prepared by the business, and a comprehensive risk analysis is carried out by the RISK analysts before presentation to the Credit Committee. All approvals are subject to an annual review. Exposures are monitored to ensure that they do not exceed the limits set by the Credit Committees. The risk exposure of securitisation tranches is intrinsically linked to that of the underlying assets, whether for securitisation or re-securitisation. Through the customary governance of Credit Committees, the Group monitors changes in the quality of underlying assets for the entire duration of the programme concerned. Counterparty risk on securitisation related to interest rates or FX derivatives Securitisation-related derivative instruments are also subject to the approval of the Credit Committees. BNP Paribas integrates counterparty risk into the securitisation structure. The principles are the same as those described above in respect of credit risk. Market risk within the banking book On fixed-rate ABS positions, a macro hedge consisting of fixed/variable-rate swaps is put in place to cover interest rate risk. The hedge is recorded in accordance with the rules of hedge accounting. Liquidity/funding risk Securitisation positions are financed internally by the ALM – Treasury or via conduits sponsored by BNP Paribas. Securitisation positions ➤TABLE 64: SECURITISATION EXPOSURES IN THE NON-TRADING BOOK(1) (EU SEC1) a b c d e f g h i j k l m n o In millions of euros 31 December 2024 originator sponsor investor Total Traditional Synthetic Total Traditional Synthetic Total Traditional Synthetic Total STS(2) Non-STS of which SRT(3) STS(2) Non-STS STS(2) Non-STS of which SRT(3) of which SRT(3) 2 Retail 7,450 661 50,851 896 896 59,197 20,117 20,117 2,834 5,623 8,457 87,772 3 Of which residential mortgages 677 45,973 138 138 46,788 - 276 3,461 3,737 50,525 4 Of which credit card receivables - - 302 971 1,273 1,273 5 Of which other retail 6,773 661 4,877 759 759 12,409 0 20,117 20,117 2,257 1,191 3,447 35,974 6 Of which re-securitisation - - - - 7 Corporate 41 41 12,863 5 45,606 45,606 58,511 342 16,950 17,292 393 26,846 27,239 103,043 8 Of which loans to corporates 12,863 5 45,606 45,606 58,470 92 673 765 24,567 24,567 83,801 9 Of which commercial mortgages - - 15 15 15 10 Of which finance leases 41 41 41 250 250 393 1,669 2,062 2,354 11 Of which other assets - 16,278 16,278 594 594 16,872 12 Of which re-securitisation - - - - 1 TOTAL 7,492 703 63,714 5 46,503 46,503 117,708 342 37,068 - 37,410 3,228 32,469 - 35,696 190,815 Based on the predominant asset class in the asset pool of the securitisation in which the position is held. Simple, Transparent and Standards securitisation programmes (see next section). Effective securitisation programmes, for which the criteria for significant risk transfer are met (see paragraph Risk transfer of own account securitisation transactions, in the section on BNP Paribas securitisation activities). a b c d e f g h i j k l m n o In millions of euros 31 December 2023 originator sponsor investor Total Traditional Synthetic Total Traditional Synthetic Total Traditional Synthetic Total STS(2) Non-STS of which SRT(3) STS(2) Non-STS STS(2) Non-STS of which SRT(3) of which SRT(3) 2 Retail 7,637 867 50,908 - - - 58,546 300 16,400 - 16,700 1,085 3,902 - 4,987 80,232 3 Of which residential mortgages 374 45,942 46,316 - 103 2,647 2,750 49,066 4 Of which credit card receivables 0 - - 4 4 4 5 Of which other retail 7,263 867 4,967 12,230 300 16,400 16,700 982 1,250 2,233 31,162 6 Of which re-securitisation - - - - 7 Corporate 76 76 12,867 7 41,849 41,849 54,792 294 18,476 - 18,770 350 17,666 - 18,016 91,579 8 Of which loans to corporates 12,867 7 41,849 41,849 54,716 98 1,048 1,145 17,045 17,045 72,907 9 Of which commercial mortgages - - 15 15 15 10 Of which finance leases 76 76 76 - 350 398 748 824 11 Of which other assets - 196 17,429 17,625 208 208 17,833 12 Of which re-securitisation - - - - 1 TOTAL 7,713 943 63,776 7 41,849 41,849 113,338 594 34,876 - 35,470 1,434 21,569 - 23,003 171,811 Based on the predominant asset class in the asset pool of the securitisation in which the position is held. Simple, Transparent and Standards securitisation programmes (see next section). Effective securitisation programmes, for which the criteria for significant risk transfer are met (see paragraph Risk transfer of own account securitisation transactions, in the section on BNP Paribas securitisation activities). ➤TABLE 65: BANKING BOOK SECURITISATION POSITION QUALITY In millions of euros Securitisation positions held or acquired (EAD) Tranche quality 31 December 2024 31 December 2023 Senior tranche 118,246 99,482 Mezzanine tranche 1,697 1,548 First-loss tranche 374 241 TOTAL 120,318 101,271 At 31 December 2024, 98.3% of the securitisation positions held or acquired by the Group were senior tranches, compared with 98.2% at 31 December 2023, reflecting the high quality of the Group’s portfolio. Risk-weighted assets The revised securitisation framework came into force on 1 January 2019 with the application of Regulation (EU) No. 2017/2401 and Regulation (EU) No. 2017/2402. It provides for: the creation of a specific status for programmes known as Simple, Transparent and Standardised, which comply with certain conditions: the portfolio of underlying assets, which must be uniform in terms of asset type, may not include a re-securitisation position nor defaulting asset at origination, the programme must be traditional and the payment of the interest for the securitisation positions must be based on standard benchmark interest rates, investors must have sufficient information on the portfolio of underlying assets, specifically, information on the histories of defaults and losses. Subject to eligibility in terms of applicable risk-weight and concentration of the underlying asset portfolio, these programmes may benefit from preferential weightings; new approaches for the calculation of risk-weighted assets related to applicable securitisation positions according to the specificities of the underlying portfolio: internal ratings-based approach (SEC-IRBA): the risk-weight applicable to the securitisation position depends, on the one hand, on the characteristics of the securitisation programme and, on the other hand, on the capital charge of the underlying portfolio calculated as credit risk, standardised approach (SEC-SA): the risk-weight applicable to the securitisation position depends on the characteristics of the securitisation programme, the capital charge of the underlying portfolio calculated as credit risk and the proportion of assets in default in this portfolio, external ratings-based approach (SEC-ERBA): the risk-weight applicable to the securitisation position is given directly by a correspondence table defined in Regulation (EU) No. 2017/2401, based on the external rating of the tranche, its subordination rank and its maturity. BNP Paribas uses the external ratings of the Standard & Poor’s, Moody’s, Fitch and DBRS rating agencies, in other cases, Regulation (EU) No. 2017/2401 provides for the deduction of CET1 own funds. Risk-weighted assets corresponding to securitisation positions held or acquired by the Group amounted to EUR 20.7 billion at 31 December 2024, or 2.7% of Group total risk-weighted assets, compared with EUR 16.6 billion at 31 December 2023 (2.4% of Group total risk-weighted assets). ➤TABLE 66: SECURITISATION RISK-WEIGHTED ASSET MOVEMENTS BY KEY DRIVER In millions of euros 31 December 2023 Key driver Total variation 31 December 2024 Asset size Asset quality Model updates Methodology and policy Acquisitions and disposals Currency Other RWAs - Securitisation 16,589 2,265 390 - - - 566 888 4,108 20,697 ➤TABLE 67: SECURITISATION EXPOSURES AND RISK-WEIGHTED ASSETS – INSTITUTION ACTING AS ORIGINATOR OR AS SPONSOR (EU SEC3) a b c d e f g h i j k l m n o EU-p EU-q In millions of euros 31 December 2024 Exposure values (EAD) by RW bands/deductions Exposure values (EAD) by regulatory approach Risk-weighted assets by regulatory approach Capital charge after cap(2) ≤ 20% > 20% ≤ 50% > 50% ≤ 100% > 100% < 1,250% deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) 2 Traditional transactions 33,053 4,840 147 61 18 899 4,663 32,539 18 308 1,134 6,748 22 88 433 3 Securitisation 33,053 4,840 147 61 18 899 4,663 32,539 18 308 1,134 6,748 22 88 433 4 Retail 17,575 3,191 - 5 7 118 3,160 17,493 7 31 739 2,999 2 58 240 5 of which STS 132 517 - 5 7 118 485 50 7 31 163 5 2 12 - 6 Wholesale 15,478 1,649 147 56 10 780 1,503 15,046 10 278 395 3,749 20 30 193 7 of which STS 250 31 44 48 10 - 363 11 10 - 139 132 - 9 7 8 Re-securitisation - - - - - - - - - - - - - - - 9 Synthetic transactions 39,691 6,427 - - 385 45,057 - 1,061 385 7,721 - 122 618 - 10 10 Securitisation 39,691 6,427 - - 385 45,057 - 1,061 385 7,721 - 122 618 - 10 11 Retail 881 - - - 15 - - 881 15 - - 95 - - 7 12 Wholesale 38,810 6,427 - - 370 45,057 - 180 370 7,721 - 27 618 - 2 13 Re-securitisation - - - - - - - - - - - - - - - 1 TOTAL 72,744 11,267 147 61 402 45,956 4,663 33,600 402 8,030 1,134 6,871 640 88 442 The Group opted for the deduction of CET1 capital rather than the 1,250% weighting. After application of the regulatory ceiling. Capital requirements correspond to 8% of risk-weighted assets. a b c d e f g h i j k l m n o EU-p EU-q In millions of euros 31 December 2023 Exposure values (EAD) by RW bands/deductions Exposure values (EAD) by regulatory approach Risk weighted assets by regulatory approach Capital charge after cap(2) ≤ 20% > 20% ≤ 50% > 50% ≤ 100% > 100% < 1,250% deduc-tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) 2 Traditional transactions 33,162 2,955 175 79 49 1,232 3,790 31,348 49 327 986 5,363 26 78 422 3 Securitisation 33,162 2,955 175 79 49 1,232 3,790 31,348 49 327 986 5,363 26 78 422 4 Retail 14,715 2,771 53 27 179 2,666 14,694 27 49 678 2,803 4 54 220 5 of which STS 321 766 53 27 179 661 300 27 49 188 30 4 15 2 6 Wholesale 18,446 184 122 79 22 1,053 1,124 16,653 22 278 308 2,560 22 24 202 7 of which STS 196 68 16 69 21 153 196 21 125 20 9 2 8 Re-securitisation 9 Synthetic transactions 39,556 1,667 405 221 41,628 221 6,090 487 10 Securitisation 39,556 1,667 405 221 41,628 221 6,090 487 11 Retail 12 Wholesale 39,556 1,667 405 221 41,628 221 6,090 487 13 Re-securitisation 1 TOTAL 72,718 4,622 580 79 270 42,860 3,790 31,348 270 6,417 986 5,363 513 78 422 The Group opted for the deduction of CET1 capital rather than the 1,250% weighting. After application of the regulatory ceiling. Capital requirements correspond to 8% of risk-weighted assets. ➤TABLE 68: SECURITISATION POSITIONS AND RISK-WEIGHTED ASSETS – BNP PARIBAS ACTING AS INVESTOR (EU SEC4) a b c d e f g h i j k l m n o EU-p EU-q In millions of euros 31 December 2024 Exposure values (EAD) by RW bands/deductions Exposure values (EAD) by regulatory approach Risk-weighted assets Capital charge after cap(2) ≤ 20% > 20% ≤ 50% > 50% ≤ 100% > 100% < 1,250% deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) 2 Traditional transactions 31,661 3,556 221 258 - 21,188 951 13,557 3,461 570 2,310 265 37 184 3 Securitisation 31,661 3,556 221 258 21,188 951 13,557 3,461 570 2,310 265 37 184 4 Retail 7,790 465 137 65 437 8,021 475 1,142 30 90 5 of which STS 2,828 6 6 2,828 7 284 1 23 6 Wholesale 23,871 3,091 84 193 21,188 515 5,537 3,461 94 1,168 265 8 93 7 of which STS 393 393 39 3 8 Re-securitisation 9 Synthetic transactions 10 Securitisation 11 Retail underlying 12 Wholesale 13 Re-securitisation 1 TOTAL 31,661 3,556 221 258 - 21,188 951 13,557 - 3,461 570 2,310 265 37 184 The Group opted for the deduction of CET1 capital instead of the 1,250% weighting. After application of the regulatory ceiling. Capital requirements correspond to 8% of risk-weighted assets. a b c d e f g h i j k l m n o EU-p EU-q In millions of euros 31 December 2023 Exposure values (EAD) by RW bands/deductions Exposure values (EAD) by regulatory approach Risk weighted assets Capital charge after cap(2) ≤ 20% > 20% ≤ 50% > 50% ≤ 100% > 100% < 1,250% deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) SEC-IRBA SEC-ERBA SEC-SA deduc- tions(1) 2 Traditional transactions 19,593 3,045 291 74 15,744 355 6,904 2,678 384 1,260 193 23 98 3 Securitisation 19,593 3,045 291 74 15,744 355 6,904 2,678 384 1,260 193 23 98 4 Retail 4,604 79 242 63 908 304 3,775 136 373 588 0 22 45 5 of which STS 1,085 1,085 110 9 6 Wholesale 14,989 2,966 50 11 14,837 51 3,129 2,542 10 672 193 1 54 7 of which STS 350 350 35 3 8 Re-securitisation 9 Synthetic transactions 10 Securitisation 11 Retail underlying 12 Wholesale 13 Re-securitisation 1 TOTAL 19,593 3,045 291 74 - 15,744 355 6,904 - 2,678 384 1,260 193 23 98 The Group opted for the deduction of CET1 capital instead of the 1,250% weighting. After application of the regulatory ceiling. Capital requirements correspond to 8% of risk-weighted assets. Guarantees on securitisation positions amounted to EUR 221 million as at 31 December 2024, compared with EUR 142 million at 31 December 2023. 5.6Counterparty credit risk Counterparty credit risk is the translation of the credit risk embedded in financial transactions, investments and/or settlement transactions between counterparties. Those transactions include bilateral contracts such as over-the-counter (OTC) derivative contracts as well as contracts settled through clearing houses. The amount of this risk may vary over time in line with changing market parameters which then impacts the replacement value of the relevant transactions. Counterparty risk lies in the event that a counterparty defaults on its obligations to pay the Bank the full present value of the flows relating to a transaction or a portfolio for which the Bank is a net receiver. Counterparty credit risk is also linked to the replacement cost of a derivative or portfolio in the event of counterparty default. Hence, it can be seen as a market risk in case of default or a contingent risk. In respect of counterparty risk, the RISK Function is structured according to five main priorities: measuring exposure to counterparty credit risk; checking and analysing these exposures and the limits that apply to them; implementing mechanisms to reduce risk; calculating and managing credit valuation adjustments (CVA); defining and implementing stress tests. Counterparty credit risk valuation Counterparty exposure calculation Exposure to counterparty risk is measured using two approaches: Modelled exposure – Internal model method With regard to modelling counterparty risk exposure, the exposure at default (EAD) for counterparty risk is calculated based on the Effective Expected Positive Exposure (EEPE) indicator multiplied by the alpha regulatory factor as defined in article 284-4 of Regulation (EU) No. 575/2013. The Effective Expected Positive Exposure (EEPE) is measured using an internal exposure valuation model to determine exposure profiles. The model was developed by the Group and approved by the supervisor. The principle of the model is to simulate the main risk factors, such as commodity and equity prices, interest rates and foreign exchange rates, affecting the counterparty risk exposure, based on their initial respective values. The Bank uses Monte-Carlo simulations to generate thousands of time trajectories (corresponding to thousands of potential market scenarios) to define potential changes in risk factors. The diffusion processes used by the model are calibrated on the most recent historic data set over a four-year period. Based on all the risk factor simulations, the model assesses the value of the positions from the simulation date to the transaction maturity date (from one day to more than thirty years for the longest-term transactions) to generate an initial set of exposure profiles. Exposure may be reduced by a Master Agreement, and may also be covered by a Credit Support Annex (CSA). For each counterparty, the model aggregates the exposures taking into consideration any netting agreements and credit support annexes, as well as the potentially risky nature of the collateral exchanged. Based on the breakdown of exposure to the counterparty, the model determines the following in particular: The average risk profile, the Expected Positive Exposure (EPE), from which the EEPE (Effective Expected Positive Exposure) is calculated: the Expected Positive Exposure (EPE) profile is calculated as the average of the breakdown of counterparty exposures at each point in the simulation, with the negative portions of the trajectories set to zero (the negative portions correspond to situations where BNP Paribas Group is a risk for the counterparty). The EEPE is calculated as the first-year average of the non-decreasing EPE profile: at each simulation date, the value taken is the maximum of the EPE value and the value on the previous simulation date; The Potential Future Exposure (PFE) profile: the Potential Future Exposure (PFE) profile is calculated as a 90% percentile of the breakdown of exposure to the counterparty at each point in the simulation. This percentile is raised to 99% for hedge fund counterparties. The highest Potential Future Exposure value (Max PFE) is used to monitor maximum limits. Since 1 January 2014, date of entry into force of Regulation (EU) No. 575/2013, the system for measuring exposures to counterparty risk takes into account: extension of the margin periods of risk in accordance with article 285 of the CRR; inclusion of the specific correlation risk; determination of a stressed EEPE calculated based on a calibration reflecting a particular period of stress. Non-modelled exposure – Method SA-CCR For non-modelled counterparty credit risk exposures, the derivative exposure at default is calculated using the standardised approach for counterparty credit risk (Standardised Approach for Counterparty Credit Risk – SA-CCR) in accordance with article 274 of Regulation (EU) No. 2019/876. The exposure at default of a netting set using the standardised approach to counterparty risk is based on: the replacement cost (RC), calculated in accordance with Article 275; potential future exposure (PFE), calculated in accordance with Article 278; the regulatory factor alpha, set in accordance with Article 274. The exposure at default on securities financing transactions (SFTs) is calculated using the Financial Collateral Comprehensive Method in accordance with article 223 of Regulation (EU) No. 575/2013. Limit/monitoring framework Limits reflecting the principles of the Group’s Risk Appetite Statement are defined for the counterparty credit risk. These limits are set in accordance with the type of counterparty (banks, institutional investors, asset managers, corporates, clearing houses, etc.) and the type of exposure used to measure and manage counterparty risk: the highest value of potential future exposures (Max PFE) for modelled exposures; the exposure value calculated using the standardised approach for non-modelled exposures. The exposure of each counterparty is calculated to verify compliance with credit decisions. These limits are defined and calibrated as part of the risk approval process. They are approved in the following committees (listed in ascending order of discretionary authority): Local Credit Committee, Regional Credit Committee, Global Credit Committee, General Management Credit Committee. These measures are complemented by sets of directives (covering contingent market risk sensitivities per counterparty which are extracted from the market risk system) which provide further tools in the monitoring of counterparty credit risk and the prevention of systemic risk concentrations. Mitigation of counterparty credit risk As part of its risk management, the BNP Paribas Group implemented three counterparty risk mitigation mechanisms: the signature of netting agreements for OTC transactions; clearing through central counterparties, in the case of OTC or listed derivative transactions; Bilateral initial margin exchange. Netting agreements Netting is used by the Bank in order to mitigate counterparty credit risk associated with derivative trading. The main instance where netting occurs is in case of trade termination: if the counterparty defaults, all the trades are terminated at their current market value, and all the positive and negative market values are summed to obtain a single amount (net) to be paid to or received from the counterparty. The balance (“close-out netting”) may be collateralised with cash, securities or deposits. The Bank also applies settlement netting in order to mitigate counterparty credit risk in cases of currency settlement. This corresponds to the netting of all payments and receipts between the Bank and one counterparty in the same currency to be settled in the same day. The netting results in a single amount (for each currency) to be paid either by the Bank or by the counterparty. Transactions affected by this are processed in accordance with bilateral or multilateral agreements respecting the general principles of the national or international framework. The main forms of bilateral agreements are those issued by Fédération bancaire française (FBF) and on an international basis by the International Swaps and Derivatives Association (ISDA). Trade clearing through central counterparties Trade clearing through central counterparties (CCPs) is part of BNP Paribas' usual capital market activities. As a global clearing member, BNP Paribas contributes to the risk management framework of the CCPs through payment to a default fund as well as daily margin calls. The rules that define the relationships between BNP Paribas and the CCPs of which it is a member are described in each CCP’s rulebook. For Europe, the United Kingdom and the United States in particular, this scheme enables the reduction of notional amounts through the netting of the portfolio, on one hand, and, on the other, a transfer of the risk from several counterparties to a single central counterparty with a robust risk management framework. In its clearing for third party activity, BNP Paribas requests as well, and on a daily basis, the payment of margin calls from its clients. Since default by one or more clearing houses would affect BNP Paribas, it has introduced dedicated monitoring of these central counterparties and closely tracks concentrations with them. Bilateral initial margin exchange Regulation (EU) No. 648/2012 (EMIR) stipulates the establishment of additional constraints for players in the derivatives markets, including the obligation to exchange collateral for contracts that are not centrally cleared. An initial guarantee deposit must be made by the Bank’s most significant financial and non-financial counterparties. The purpose of this exchange is to mitigate the counterparty credit risk associated with over-the-counter derivative trading that is not centrally cleared. The Bank’s transactions with sovereign borrowers, central banks, and supranational entities are excluded from this system. If the counterparty defaults, all the trades are terminated at their current market value by the Bank. The initial guarantee deposit hedges the variation in the value of transactions during this liquidation period. The initial deposit reflects an extreme but plausible estimate of potential losses corresponding to a unilateral interval of confidence of 99% over a ten-day period, based on historic data including an episode of significant financial tensions. The initial deposit must be bilaterally traded on a gross basis between the Bank and the counterparty. It is kept by a third party so as to guarantee that the Bank immediately has access to the counterparty’s deposit and that the Bank’s deposit be protected in case the counterparty defaults. Credit Valuation Adjustments (CVA) The valuation of financial OTC trades carried out by BNP Paribas as part of its trading activities (mainly Global Markets) includes Credit Valuation Adjustments (CVA). CVA is an adjustment of the trading portfolio valuation to take into account each counterparty’s credit risk. It is the fair value on any expected loss arising from counterparty exposure based on the potential positive value of the contract, the counterparty default probability and the estimated recovery rate in case of default. The majority of counterparty credit risk exposures on derivatives are related to the Group’s interest rate, credit and foreign exchange activities, all underlying assets, and all business lines combined. The credit valuation adjustment is not only a function of the expected exposure but also the credit risk level of the counterparty, which is linked to the level of the Credit Default Swap (CDS) spreads used in the default probability calculation. In order to reduce the risk associated with the credit quality deterioration embedded in a financial operations portfolio, BNP Paribas uses a dynamic hedging strategy, involving the purchase of market instruments such as credit derivative instruments. (See CVA risk management in the section Counterparty risk management). Risk related to the volatility of CVAS (CVA risk) To protect banks against the risk of losses due to CVA variations, Regulation (EU) No. 575/2013 introduced a dedicated capital charge, the CVA charge. This charge aims at capitalising the risk of loss caused by changes in the credit spread of a counterparty to which the BNP Paribas Group is exposed. The CVA charge is computed by the Group using mainly the advanced method and relies on the Bank’s model on market risk (see section CVA Risk hereafter). Stress tests and wrong way risk The BNP Paribas counterparty risk stress testing framework is consistent with the framework for market risk stress testing in terms of scenario definition (see section 5.7 Market risk related to trading activities). Top-down counterparty stress tests use the same multifactor, holistic scenarios that are also used in market risk stress testing. Specific stress tests defined by activity and product (Bottom-up approach) and considering the nature of the exposures, complement the framework. Both counterparty and market risk stress testing frameworks are governed by the Stress Testing Steering Committee. Counterparty risk stress tests are implemented in two ways, by first applying instantaneous market shocks across activities and then: re-computing the present values of transactions and client assets under the stress scenario for each counterparty. Margins and collateral are included in the calculation to derive the “clean" stress test. re-running the Monte Carlo simulation used to derive PFE (potential future exposure) under the stress scenario for each counterparty. Counterparty risk stress testing can also include factors specific to counterparty risk such as deteriorations in counterparty credit quality which, in conjunction with the applied scenario, can be used to generated stressed risk-weighted assets. The stress tests are typically presented as the changes in exposures on either a name-by-name level or bucketed by region and economic sector. Such risk analysis is present within the Executive Management summary reporting framework and also shares some common bodies with market risk, such as the Financial Markets Risk Committee (FMRC), the main committee for market and counterparty credit risk. Wrong Way Risk is the risk that counterparty exposure will be inversely correlated with the counterparty’s credit quality. The risk can be encountered in two ways: General Wrong Way Risk (GWWR), corresponds to the increased probability of counterparty default being positively correlated with increased counterparty exposure ; BNP Paribas’ identification of GWWR is performed through stress tests that highlight the risk factors negatively correlated with the counterparty’s credit quality. It can combine a top-down approach (based on the country of incorporation, the region or the sector of the counterparty) and a bottom-up approach. Specific Wrong Way Risk (SWWR), corresponds to the risk arising when exposure to a specific counterparty is positively correlated with the counterpart’s probability of default due to the nature of the transactions with the counterparty or of the collateral received. When a legal link between the exposure underlyings and the counterparty is established, the SWWR is subject to prescribed regulatory capital treatment. Exposure to counterparty credit risk The table below shows exposure to counterparty credit risk (measured as the exposure at default) by Basel asset class on derivative contracts and securities lending/borrowing transactions, after the impact of any netting agreement. Bilateral transactions between the Bank and customers (bilateral counterparty risk) are distinguished from transactions related to the clearing activities of the Bank, including essentially exposures to central counterparties (CCP). ➤TABLE 69: COUNTERPARTY CREDIT RISK EXPOSURE AT DEFAULT BY ASSET CLASS (EXCL. CVA RISK CHARGE) In millions of euros 31 December 2024 31 December 2023 Variation EAD EAD IRBA Standardised approach Total IRBA Standardised approach Total Total Bilateral counterparty credit risk 154,315 2,045 156,360 140,157 2,760 142,916 13,444 Central governments and central banks 26,396 14 26,410 23,023 38 23,061 3,350 Corporates 84,759 1,469 86,228 72,727 1,798 74,525 11,703 Institutions(1) 43,160 560 43,720 44,406 922 45,328 (1,608) Retail 2 2 2 2 (1) Exposure to CCP related to clearing activities 6,058 75,452 81,510 4,489 51,884 56,373 25,137 TOTAL 160,374 77,497 237,871 144,646 54,644 199,289 38,581 Institution asset class comprises credit institutions and investment firms, including those recognised in other countries, it also includes some exposures to regional and local authorities, public sector agencies and multilateral development banks that are not treated as central government authorities. For bilateral counterparty credit risk, the share of exposures under the IRB approach represented 99% at 31 December 2024 (stable compared with 31 December 2023). The following table summarises the exposures to counterparty credit risk with a breakdown by product. An indication of the Group’s business volume on derivative financial instruments booked in the trading portfolio is presented in note 4.a Financial instruments at fair value through profit or loss to the consolidated financial statements. ➤TABLE 70: COUNTERPARTY CREDIT RISK EXPOSURE AT DEFAULT BY PRODUCT (EXCL. CVA RISK CHARGE) In millions of euros 31 December 2024 31 December 2023 EAD EAD Bilateral counterparty credit risk Exposure to CCP related to clearing activities Total Bilateral counterparty credit risk Exposure to CCP related to clearing activities Total OTC derivatives 82,020 80.88% 19,395 19.12% 101,415 78,438 96.19% 3,108 3.81% 81,546 Securities Financing Transactions 74,340 91.02% 7,331 8.98% 81,671 64,478 81.74% 14,406 18.26% 78,885 Listed derivatives 21,722 100.00% 21,722 18,399 100.00% 18,399 Default fund contribution 33,062 100.00% 33,062 20,459 100.00% 20,459 TOTAL 156,360 65.73% 81,510 34.27% 237,871 142,916 71.71% 56,373 28.29% 199,289 Bilateral counterparty credit risk The bilateral counterparty risk corresponds to the contracts with its clients treated bilaterally (or over-the-counter) by BNP Paribas. The exposure at default (EAD) is primarily measured with the aid of internal models (see paragraph Counterparty exposure calculation). For the perimeter not covered by internal models (limited mainly to subsidiaries BNL and TEB), EAD is calculated using the standardised approach to counterparty credit risk. Risk-weighted assets linked to counterparty credit risk are computed by multiplying EAD by an appropriate weighting according to the approach used (standardised or IRBA). The following table shows a summary, by approach, of the regulatory exposures of counterparty credit risk and associated risk-weighted assets for the entire scope of the BNP Paribas Group’s bilateral activities, which represents the bulk of counterparty credit risk exposures. Since 30 June 2021, exposures not modelled are calculated according to the provisions of article 274 of Regulation (EU) No. 2019/876 (SA-CCR method) and no longer using the “Mark-to-market” valuation method. ➤TABLE 71: BILATERAL COUNTERPARTY CREDIT RISK EXPOSURES AT DEFAULT BY APPROACH (EU CCR1) a b c d e f g h In millions of euros 31 December 2024 Replacement cost (RC) Potential future exposure (PFE) EEPE(2) Alpha used for computing regulatory exposure value Exposure value pre-CRM(3) Exposure value post-CRM(3) Exposure value RWA Of which standard approach Of which IRB approach EU1 EU – Original Exposure Method (for derivatives) EU2 EU – Simplified SA-CCR (for derivatives) 1 SA-CCR (for derivatives) 1,199 3,774 1.40 6,963 6,963 6,963 3,158 1,236 1,923 2 IMM (for derivatives and SFTs)(1) 94,193 1.55 146,000 146,000 145,857 31,554 466 31,088 2a of which securities financing transactions 45,683 70,808 70,808 70,800 8,100 49 8,051 2b of which derivatives and long settlement transactions 48,510 75,191 75,191 75,058 23,454 417 23,036 2c of which from contractual cross-product netting sets 3 Financial collateral simple method (for SFTs) 4 Financial collateral comprehensive method (for SFTs) 3,540 3,540 3,540 474 474 5 VaR for SFTs 6 TOTAL 156,503 156,503 156,360 35,186 1,702 33,484 Securities Financing Transactions. Effective Expected Positive Exposure. Credit Risk Mitigation. a b c d e f g h In millions of euros 31 December 2023 Replacement cost (RC) Potential future exposure (PFE) EEPE(2) Alpha used for computing regulatory exposure value Exposure value pre-CRM(3) Exposure value post-CRM(3) Exposure value RWA Of which standard approach Of which IRB approach EU1 EU – Original Exposure Method (for derivatives) EU2 EU – Simplified SA-CCR (for derivatives) 1 SA-CCR (for derivatives) 906 3,159 1.40 5,692 5,692 5,692 3,287 1,596 1,691 2 IMM (for derivatives and SFTs)(1) 86,754 1.55 134,468 134,468 134,282 28,904 231 28,674 2a of which securities financing transactions 39,703 61,540 61,540 61,535 7,821 53 7,768 2b of which derivatives and long settlement transactions 47,050 72,928 72,928 72,747 21,083 177 20,906 2c of which from contractual cross-product netting sets 3 Financial collateral simple method (for SFTs) 4 Financial collateral comprehensive method (for SFTs) 2,943 2,943 2,943 452 168 284 5 VaR for SFTs 6 TOTAL 143,103 143,103 142,916 32,643 1,995 30,648 Securities Financing Transactions. Effective Expected Positive Exposure. Credit Risk Mitigation. ➤TABLE 72: IRBA BILATERAL COUNTERPARTY CREDIT RISK EXPOSURE AT DEFAULT (EU CCR4) a b c d e f g In millions of euros PD scale 31 December 2024 EAD Average PD Number of obligors Average LGD Average maturity RWAs Average RW 1 Central governments or central banks 0.00 to < 0.15% 26,288 0.01% 100 to 1,000 2% 1 80 0% 2 0.15 to < 0.25% 52 0.21% 0 to 100 20% 4 14 28% 3 0.25 to < 0.50% 34 0.32% 0 to 100 50% 1 15 45% 4 0.50 to < 0.75% 3 0.69% 0 to 100 31% - 1 41% 5 0.75 to < 2.50% 1 1.04% 0 to 100 50% 1 1 90% 6 2.50 to < 10.0% 17 4.02% 0 to 100 50% 3 28 169% 7 10 to < 100% 3 21.34% 0 to 100 80% 1 12 426% 8 100% (Default) SUB-TOTAL 26,396 0.02% 2% 1 151 1% 1 Institutions 0.00 to < 0.15% 38,925 0.05% 1,000 to 10,000 36% 1 5,179 13% 2 0.15 to < 0.25% 2,534 0.17% 100 to 1,000 41% 1 882 35% 3 0.25 to < 0.50% 852 0.34% 100 to 1,000 49% 1 515 60% 4 0.50 to < 0.75% 149 0.59% 0 to 100 48% 1 122 82% 5 0.75 to < 2.50% 472 1.13% 100 to 1,000 52% 1 581 123% 6 2.50 to < 10.0% 220 2.86% 0 to 100 51% 1 294 133% 7 10 to < 100% 8 21.81% 0 to 100 68% - 29 380% 8 100% (Default) SUB-TOTAL 43,160 0.09% 37% 1 7,602 18% 1 Corporates 0.00 to < 0.15% 67,208 0.05% 1,000 to 10,000 35% 1 12,500 19% 2 0.15 to < 0.25% 6,096 0.19% 1,000 to 10,000 43% 2 2,487 41% 3 0.25 to < 0.50% 5,039 0.41% 1,000 to 10,000 29% 2 2,358 47% 4 0.50 to < 0.75% 569 0.68% 100 to 1,000 43% 2 447 79% 5 0.75 to < 2.50% 3,474 1.48% 1,000 to 10,000 48% 2 3,876 112% 6 2.50 to < 10.0% 1,299 4.36% 1,000 to 10,000 51% 2 2,053 158% 7 10 to < 100% 659 18.31% 100 to 1,000 49% 1 1,500 228% 8 100% (defaults) 416 100.00% 0 to 100 30% 4 511 123% SUB-TOTAL 84,759 0.84% 36% 1 25,731 30% Retail n.s. n.s. n.s. n.s. n.s. n.s. TOTAL 154,315 0.49% 31% 1 33,484 22% a b c d e f g In millions of euros PD scale 31 December 2023 EAD Average PD Number of obligors Average LGD Average maturity RWAs Average RW 1 Central governments or central banks 0.00 to < 0.15% 22,702 0.02% 100 to 1,000 2% 2 97 0% 2 0.15 to < 0.25% 126 0.18% 0 to 100 20% 2 27 22% 3 0.25 to < 0.50% 131 0.30% 0 to 100 50% - 61 46% 4 0.50 to < 0.75% 1 0.69% 0 to 100 50% 1 1 81% 5 0.75 to < 2.50% 48 1.45% 0 to 100 11% 5 19 40% 6 2.50 to < 10.0% 7 10 to < 100% 14 21.81% 0 to 100 40% 1 36 247% 8 100% (Default) - SUB-TOTAL 23,023 0.04% 2% 2 240 1% 1 Institutions 0.00 to < 0.15% 39,668 0.05% 1,000 to 10,000 36% 1 4,960 13% 2 0.15 to < 0.25% 2,534 0.17% 100 to 1,000 40% 1 940 37% 3 0.25 to < 0.50% 1,360 0.35% 100 to 1,000 50% 1 710 52% 4 0.50 to < 0.75% 147 0.59% 100 to 1,000 42% 1 93 63% 5 0.75 to < 2.50% 364 1.15% 100 to 1,000 60% 1 438 120% 6 2.50 to < 10.0% 317 3.07% 100 to 1,000 50% 1 414 131% 7 10 to < 100% 16 23.14% 0 to 100 63% - 58 361% 8 100% (Default) SUB-TOTAL 44,406 0.10% 37% 1 7,612 17% 1 Corporates 0.00 to < 0.15% 56,435 0.06% 1,000 to 10,000 31% 1 10,992 19% 2 0.15 to < 0.25% 5,292 0.18% 1,000 to 10,000 39% 2 2,008 38% 3 0.25 to < 0.50% 4,515 0.32% 1,000 to 10,000 37% 2 2,471 55% 4 0.50 to < 0.75% 631 0.69% 100 to 1,000 35% 2 419 66% 5 0.75 to < 2.50% 3,575 1.36% 1,000 to 10,000 46% 1 3,493 98% 6 2.50 to < 10.0% 1,873 4.44% 1,000 to 10,000 47% 2 2,794 149% 7 10 to < 100% 301 17.15% 100 to 1,000 42% 2 619 206% 8 100% (Default) 106 100.00% 0 to 100 43% 2 1 1% SUB-TOTAL 72,727 0.48% 33% 1 22,796 31% Retail n.s. n.s. n.s. n.s. n.s. n.s. TOTAL 140,157 0.29% 29% 1 30,648 22% ➤TABLE 73: STANDARDISED BILATERAL COUNTERPARTY CREDIT RISK EXPOSURE AT DEFAULT (EU CCR3) a e f h i j l In millions of euros 31 December 2024 EAD RWAs Risk weight Total 0% 20% 50% 75% 100% 150% 1 Central governments or central banks 2 12 13 12 2; 3; 4; 5; 6 Institutions 295 121 143 560 264 7; 9; 10 Corporates 16 100 1,299 54 1,469 1,425 8 Retail 2 2 1 TOTAL 2 312 220 2 1,455 54 2,045 1,702 a e f h i j l In millions of euros 31 December 2023 EAD RWAs Risk weight Total 0% 20% 50% 75% 100% 150% 1 Central governments or central banks 23 15 38 26 2; 3; 4; 5; 6 Institutions 648 226 49 922 291 7; 9; 10 Corporates 23 203 1,524 48 1,798 1,676 8 Retail 2 2 2 TOTAL - 671 451 2 1,587 48 2,760 1,995 Counterparty credit risk for exposures to central counterparties associated with clearing activities The capital requirements related to central counterparty (CCP) exposures correspond to an extension of the bilateral counterparty credit risk perimeter to clearing activities; it covers the cleared part of the OTC derivatives, repo portfolio as well as the listed derivative portfolio. It is equal to the sum of the following three elements: a charge resulting from exposures generated by clearing activities (proprietary and client clearing); a requirement resulting from the non-segregated initial margins posted to the CCP; a requirement resulting from the default fund contribution of the central counterparties. For central counterparties (CCP), Regulation (EU) No. 575/2013 distinguishes qualifying central counterparties (QCCP) from non-qualifying central counterparties. Qualifying central counterparties correspond to central counterparties authorised or recognised in accordance with Regulation (EU) No. 648/2012. The table below presents the breakdown of the risk-weighted assets by method and category of exposure to central counterparties. ➤TABLE 74: EXPOSURES TO CCPs (EU CCR8) a b a b In millions of euros 31 December 2024 31 December 2023 EAD RWAs EAD RWAs 1 Exposures to QCCPs (total) 4,888 3,917 2 Exposures for trades at QCCPs (excluding initial margin and default fund contributions) 46,086 1,659 33,385 1,720 3 of which OTC derivatives 18,914 399 2,669 126 4 of which exchange-traded derivatives 20,818 1,132 17,463 1,321 5 of which SFTs(1) 6,354 128 13,252 274 6 of which Netting sets where cross-product netting has been approved 7 Segregated initial margin 8 Non-segregated initial margin 1,439 36 1,968 41 9 Prefunded default fund contributions 9,581 3,193 6,127 2,155 10 Unfunded default fund contributions 23,240 14,115 11 Exposures to non-eligible CCPs 3,939 3,276 12 Exposures for trades at non-QCCPs (excluding initial margin and default fund contributions) 621 621 479 479 13 of which OTC derivatives 229 229 118 118 14 of which exchange-traded derivatives 373 373 320 320 15 of which SFTs(1) 19 19 41 41 16 of which netting sets where cross-product netting has been approved 17 Segregated initial margin 18 Non-segregated initial margin 303 303 82 82 19 Prefunded default fund contributions 51 641 41 514 20 Unfunded default fund contributions 190 2,374 176 2,202 Securities Financing Transactions. CVA risk The CVA risk measures the risk of losses caused by changes in the credit valuation adjustments resulting from credit spread changes associated with the counterparties to whom the Group is exposed (see paragraph Credit Valuation Adjustments (CVA)). Using the standardised approach, the capital requirement for credit valuation adjustment risk (CVA) is calculated according to the supervisory formula. Using the IRB approach, the CVA risk capital charge is the sum of two elements: CVA VaR charge, which represents the own funds requirement measured from a VaR computation on CVA sensitivities to credit spreads; CVA SVaR charge, which represents the own funds requirement measured from a stressed VaR computation on CVA sensitivities to credit spreads. ➤TABLE 75: CVA RISK CAPITAL CHARGE (EU CCR2) a b a b In millions of euros 31 December 2024 31 December 2023 EAD RWAs EAD RWAs 1 Advanced approach 53,227 3,860 51,629 4,988 2 CVA VaR charge 590 924 3 CVA SVaR charge 3,271 4,064 4 Standardised approach 416 224 370 200 5 TOTAL 53,643 4,084 52,000 5,189 CVA risk management CVA sensitivities to credit spreads are partially offset by the recognition of hedges. These hedges correspond to credit derivatives on certain identified counterparties or indices composed of identifiable counterparties. Instruments authorised as hedges in the calculation of the capital requirements for credit valuation adjustment risk form a sub-set of the credit derivatives used as hedges by the Global Markets business in the management of its CVA. Counterparty credit risk management Credit risk mitigation techniques In the context of liquidity management and counterparty credit risk management, the BNP Paribas Group systematically monitors the collateral guarantees received and given, for both the portion hedging the contracts’ market value (variation margin) and the risk of an adverse change in these market values in the event of a counterparty default (initial margin). The collateral given and received used in derivative contracts is mainly comprised of cash, and to a lesser extent, debt securities. The impact of the collateral received in clearing contracts is shown in the consolidated financial statements in note 4.o Offsetting of financial assets and liabilities. As a general rule, when EAD is modelled in EEPE and weighted according to the IRB approach, the LGD (Loss Given Default) is not adjusted according to the collateral received since it is already taken into account in the “Effective Expected Positive Exposure” computation (see section Bilateral counterparty risk). Collateral guarantees used in the standardised approach to reduce the EAD totalled EUR 18 million at 31 December 2024, compared with EUR 690 million at 31 December 2023. The table below shows the breakdown of the collateral posted and received in respect of initial margins, margin calls as well as amounts in cash and in securities of repurchase agreements and securities lending and borrowing. ➤TABLE 76: COMPOSITION OF COLLATERAL GIVEN AND RECEIVED (EU CCR5) a b c d e f g h In millions of euros 31 December 2024 Collateral used in derivative transactions Collateral used in SFTs(1) Fair value of collateral received Fair value of posted collateral Fair value of collateral received Fair value of posted collateral Segregated Unsegregated Segregated Unsegregated Segregated Unsegregated Segregated Unsegregated 1 Cash – domestic currency 42,909 1,072 33,834 149,910 157,001 2 Cash – other currencies 18 35,130 731 55,619 433,100 379,241 3 Domestic sovereign debt-euro 242 14,613 1,976 34,204 194,950 158,300 4 Other sovereign debt 7,984 10,227 1,779 12,152 9 432,990 1 404,993 5 Government agency debt 531 387 375 5 4,676 2,724 6 Corporate bonds 28,903 5,982 24,003 2,786 53 114,588 113,820 7 Equity securities 2,474 5 104,077 78,170 8 Other collateral 1,051 14 9 TOTAL 40,152 109,253 29,561 138,971 66 1,435,342 1 1,294,262 Securities Financing Transactions. a b c d e f g h In millions of euros 31 December 2023 Collateral used in derivative transactions Collateral used in SFTs(1) Fair value of collateral received Fair value of posted collateral Fair value of collateral received Fair value of posted collateral Segregated Unsegregated Segregated Unsegregated Segregated Unsegregated Segregated Unsegregated 1 Cash – domestic currency 39,307 3,300 49,002 203,858 1,110 173,855 2 Cash – other currencies 38,320 1,337 33,703 287,443 15 262,674 3 Domestic sovereign debt-euro 216 14,346 15,984 12,851 206,202 4,108 189,108 4 Other sovereign debt 6,707 6,735 2,317 6,109 6 370,802 147 306,124 5 Government agency debt 112 410 317 3,160 3,045 6 Corporate bonds 26,027 4,847 23,365 2,128 2 94,165 125,513 7 Equity securities 125 13 94,989 51,914 8 Other collateral 14 6,261 16,332 9 TOTAL 33,186 103,992 46,303 104,110 7 1,266,880 5,379 1,128,565 Securities Financing Transactions. The amount of additional collateral to be provided by the Group in the event of a credit rating downgrade is not significant. Credit derivative exposures The following table summarises all the notional amounts and market values of the trading portfolio credit derivatives. ➤TABLE 77: CREDIT DERIVATIVES EXPOSURES (EU CCR6) a b a b In millions of euros 31 December 2024 31 December 2023 Protection bought Protection sold Protection bought Protection sold 6 Notionals 450,679 449,954 455,307 369,046 1 Single-name credit default swaps 195,235 196,063 186,611 154,081 2 Index credit default swaps 242,428 230,001 223,602 177,977 3 Total return swaps 7,421 23,265 10,647 5,426 4 Credit options 539 625 31,396 31,562 5 Other credit derivatives 5,055 3,051 - Fair values (8,571) 8,254 (8,348) 6,455 7 Positive fair value (asset) 1,279 9,531 953 7,536 8 Negative fair value (liability) (9,850) (1,277) (9,301) (1,081) Capital requirement and risk-weighted assets ➤TABLE 78: COUNTERPARTY CREDIT RISK CAPITAL REQUIREMENT AND RISK-WEIGHTED ASSETS In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 Variation 31 December 2024 31 December 2023 Variation Bilateral counterparty credit risk 34,712 32,191 2,521 2,777 2,575 202 Exposure to CCP related to clearing activities(1) 8,827 7,193 1,634 706 575 131 CVA risk 4,084 5,189 (1,105) 327 415 (88) Others (general method based on financial collateral) 474 452 22 38 36 2 TOTAL 48,097 45,025 3,072 3,848 3,602 246 Counterparty credit risk related to clearing activities. ➤TABLE 79: COUNTERPARTY CREDIT RWA MOVEMENTS BY KEY DRIVER (EU CCR7) ➤4th quarter 2024 a In millions of euros RWAs – Counterparty credit risk Capital requirements – Counterparty credit risk Total of which internal model method (IMM)(1) Total of which internal model method (IMM) 1 30 September 2024 47,983 32,616 3,839 2,609 2 Asset size (293) (1,413) (23) (113) 3 Asset quality 636 500 51 40 4 Model update (454) (454) (36) (36) 5 Methodology and policy 6 Acquisitions and disposals 7 Currency 92 76 7 6 8 Other 132 228 11 18 9 31 DECEMBER 2024 48,097 31,554 3,848 2,524 Internal model method related to bilateral counterparty model (excluded CCP clearing). ➤Year to 31 December 2024 a In millions of euros RWAs – Counterparty credit risk Capital Requirements – Counterparty credit risk Total of which internal model method (IMM)(1) Total of which internal model method (IMM) 1 31 December 2023 45,025 28,904 3,602 2,312 2 Asset size 564 (695) 45 (56) 3 Asset quality 1,509 1,541 121 123 4 Model update 1,762 1,640 141 131 5 Methodology and policy 6 Acquisitions and disposals 7 Currency 48 46 4 4 8 Other (810) 118 (65) 9 9 31 December 2024 48,097 31,554 3,848 2,524 Internal model method related to bilateral counterparty model (excluded CCP clearing). The change in counterparty risk-weighted assets in 2024 is explained by a EUR 2.4 billion in risk-weighted assets related to the business and an increase of EUR 1.8 billion related to updating the models, offset by a -EUR 1.1 billion reduction in CVA. 5.7Market risk Market risk is the risk of incurring a loss of value due to adverse trends in market prices or parameters, whether directly observable or not. Observable market parameters include, but are not limited to, exchange rates, prices of securities and commodities (whether listed or obtained by reference to a similar asset), prices of derivatives, and other parameters that can be directly inferred from them, such as interest rates, credit spreads, volatilities and implied correlations or other similar parameters. Non-observable factors are those based on working assumptions such as parameters contained in models or based on statistical or economic analyses, non-ascertainable in the market. In fixed-income trading books, credit instruments are valued on the basis of bond yields and credit spreads, which represent market parameters in the same way as interest rates or foreign exchange rates. The credit risk arising on the issuer of the debt instrument is therefore a component of market risk known as issuer risk. Liquidity is an important component of market risk. In times of limited or no liquidity, instruments or goods may not be tradable or may not be tradable at their estimated value. This may arise, for example, due to low transaction volumes, legal restrictions or a strong imbalance between demand and supply for certain assets. The market risk related to banking activities encompasses the interest rate and foreign exchange risks stemming from banking intermediation activities. Market risk is presented in this section in two parts: market risk linked to trading activities and corresponding to trading instruments and derivative contracts; market risk linked to banking activities encompassing the interest rate and foreign exchange risks stemming from banking intermediation activities. Capital requirements and risk-weighted assets ➤TABLE 80: MARKET RISK CAPITAL REQUIREMENT AND RISK-WEIGHTED ASSETS In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 Variation 31 December 2024 31 December 2023 Variation Internal model approach 20,155 19,015 1,140 1,612 1,521 91 Standardised approach 7,175 8,979 (1,804) 574 718 (144) Trading book securitisation positions 793 789 4 63 63 TOTAL 28,123 28,783 (660) 2,250 2,303 (53) Within the BNP Paribas Group, market risk is primarily handled using the internal model approach. At 31 December 2024, the -EUR 0.7 billion euro decrease in market risk-weighted assets was mainly due to a -EUR 1.8 billion in foreign exchange risk and - EUR 0.8 billion in IRC, partly offset by a +EUR 1.2 billion increase of Stressed Var and +EUR 0.5 billion increase of VaR as a result of business development. ➤TABLE 81: MARKET RISK UNDER THE INTERNAL MODEL APPROACH (EU MR2-A) a b a b In millions of euros 31 December 2024 31 December 2023 RWAs Capital requirements RWAs Capital requirements 1 VaR(1) (higher of values 1.a and 1.b) 4,675 374 4,134 331 1.a Previous day’s VaR (VaRt-1) 132 116 1.b Average of the daily VaR on each of the preceding 60 business days x multiplication factor 374 331 2 SVaR(1) (higher of values 2.a and 2.b) 10,214 817 9,050 724 2.a Latest SVaR 285 229 2.b Average of the daily SVaR during the preceding 60 business days x multiplication factor 817 724 3 IRC(1)(2) (higher of values 3.a and 3.b) 4,410 353 5,170 414 3.a Last measure 310 346 3.b Average of the IRC number over the preceding 12 weeks 353 414 4 CRM(3) (higher of values 4.a, 4.b and 4.c) 856 68 661 53 4.a Last measure 31 15 4.b Average of the CRM over the preceding 12 weeks 44 33 4.c 8% of the capital requirement in the standardised approach on the most recent CRM for the correlation trading portfolio 68 53 6 TOTAL 20,155 1,612 19,015 1,521 VaR, SVaR and IRC include all the components taken into account in the calculation of RWA. Incremental Risk Charge. Comprehensive Risk Measure. The market risk calculated using the standardised approach covers the market risk of some entities of the Group that are not covered by internal models. The standardised approach is used to calculate foreign exchange risk and raw materials risk for the banking book (see section 5.7 Market risk related to banking activities). ➤TABLE 82: MARKET RISK UNDER THE STANDARDISED APPROACH (EU MR1) a a In millions of euros 31 December 2024 31 December 2023 RWAs Capital requirements RWAs Capital requirements Outright products 1 Interest rate risk (general and specific) 402 32 405 32 2 Equity risk (general and specific) 1 0 3 Foreign exchange risk 6,757 541 8,568 685 4 Commodity risk 0 0 0 0 Options 5 Simplified approach 6 Delta-plus approach 7 Scenario approach 17 1 5 0 8 Securitisation (specific risk) 793 63 789 63 9 TOTAL 7,968 637 9,768 781 ➤TABLE 83: MARKET RISK-WEIGHTED ASSETS MOVEMENTS BY KEY DRIVER (EU MR2-B) ➤4th quarter 2024 a b c d e f g In millions of euros VaR SVaR IRC(1) CRM(2) Standardised approach Total RWAs Total capital requirements 1 30 September 2024 4,519 9,909 6,373 754 7,567 29,122 2,330 2 Asset size and quality 158 311 (1,963) 102 100 (1,292) (103) 3 Model update 4 Methodology and policy 5 Acquisitions and disposals 6 Currency 7 Other (3) (6) 301 293 23 8 31 December 2024 4,675 10,214 4,410 856 7,968 28,123 2,250 Incremental Risk Charge. Comprehensive Risk Measure. ➤Year to 31 December 2024 a b c d e f g In millions of euros VaR SVaR IRC(1) CRM(2) Standardised approach Total RWAs Total capital requirements 1 31 December 2023 4,134 9,050 5,170 661 9,768 28,783 2,303 2. Asset size and quality 537 1,158 (760) 195 120 1,250 100 3 Model update 4 Methodology and policy 5 Acquisitions and disposals (144) (144) (11) 6 Currency 7 Other 4 7 (1,776) (1,766) (141) 8 31 December 2024 4,675 10,214 4,410 856 7,968 28,123 2,250 Incremental Risk Charge. Comprehensive Risk Measure. The change in market risk-weighted assets in 2024 is explained mainly by an decrease of -EUR 1.8 billion in foreign exchange and a -EUR 0.8 billion of IRC, partly offset by an increase of +EUR 1.2 billion in Stressed Var and +EUR 0.5 billion in VaR due to business development. Market risk related to trading activities Introduction Market risk arises mainly from trading activities carried out within Corporate & Institutional Banking (CIB), mainly within Global Markets and encompasses different risk factors defined as follows: interest rate risk is the risk that the value of a financial instrument will fluctuate due to changes in market interest rates; foreign exchange risk is the risk that the value of an instrument will fluctuate due to changes in foreign exchange rates; equity risk arises from changes in the market prices and volatilities of equity shares and/or equity indices; commodities risk arises from changes in the market prices and volatilities of commodities and/or commodity indices; credit spread risk arises from the change in the credit quality of an issuer and is reflected in changes in the cost of purchasing protection on that issuer; option products carry by nature volatility and correlation risks, for which risk parameters can be derived from option market prices observed in an active market. Trading activities at BNP Paribas are directly related to economic relations with business line customers, or indirectly as part of market-making activities. Market Risk Management Organisation The market risk management system aims to track and control market risks as well as control financial instrument valuation whilst ensuring that the control functions remain totally independent from the business lines. Within RISK, three departments are responsible for monitoring market risk: RISK Markets and Financial Institutions (RISK MFI) covers Global Markets and Securities Services activities; RISK ALM-T covers ALM-Treasury activities; RISK Commercial, Personal Banking & Services (RISK CPBS) covers Domestic Markets and Europe-Mediterranean activities. This mission consists of defining, measuring and analysing risk factors and sensitivities, as well as measuring and controlling Value at Risk (VaR), the global indicator of potential losses. RISK ensures that all business activity complies with the limits approved by the various committees and approves new activities and major transactions, reviews and approves position valuation models and conducts a monthly review of market parameters (MAP review) in association with the Valuation and Risk Control Department (V&RC). Market Risk and financial instrument valuation monitoring is structured around several formal committees: the Financial Market Risk Committee (FMRC) is the main committee governing the risks related to Capital Market activities. It is responsible for addressing, in a coherent manner, the issues related to market and counterparty risk. The FMRC follows the evolution of the main exposures and stress risk and sets the high level trading limits. The committee meets approximately monthly. It is chaired by either the Group Chief Executive Officer or by a Bank’s Deputy Chief Operating Officer; the Product and Financial Control Committee (PFC) is the arbitration and pricing decision-making committee regarding financial instrument valuation matters. The committee meets quarterly and discusses the conclusions of the CIB Financial Control teams and their work to enhance control effectiveness and the reliability of the measurement and recognition of the results of market transactions. It is chaired by the Group Chief Financial Officer and brings together the directors of Finance & Strategy – Accounting, Corporate & Institutional Banking and RISK; at business line level, the Valuation Review Committee (VRC) meets monthly to examine and approve the results of Market parameters review (MAP review) and any changes in reserves. The Valuation Review Committee also acts as the referee in any disagreements between trading and control functions. The committee is chaired by the Senior Trader and other members include representatives from trading, RISK, the CIB Valuation and Risk Control Group (V&RC) team, and Finance & Strategy. Any disagreement is escalated to the PFC; the Valuation Methodology Committee (VMC) meets quarterly per business line to monitor model approvals and reviews, follow up relevant recommendations and present model governance improvements. This committee is chaired by RISK MFI and includes representatives from trading, research, and the valuation and risk control (V&RC) team of CIB and Finance & Strategy. Any disagreement can be escalated to the PFC, which can make an arbitrage decision. As part of BCBS 239 Principles for effective risk data aggregation and risk reporting by the Basel Committee, a quarterly reconciliation process ensures that the entire trading portfolio of Front Office systems is correctly represented in the Group’s RISK and Finance & Strategy systems, and in particular: that the dividing line between trading activities and banking activities is observed; that the internal market risk model is exhaustive: each portfolio and entity generating market risk relating to trading activities corresponds to a capital requirement. This quarterly process is structured around the Effective Coverage of Portfolios Committee (EC) which validates the reconciliation results and any corrective and prevention actions undertaken subsequent to any discrepancies observed. Valuation control Financial instruments in the prudential trading book are valued and reported at market or model value through P&L, in compliance with applicable accounting standards. Such can also be the case of financial instruments classified in the banking book. Portfolio valuation control is described in the Charter of Responsibility for Valuation, which sets out the division of responsibilities. These governance policies and practices also apply to all ALM Treasury activities. In addition to the charter, the relevant valuation controls are detailed in specific policies. The main processes that together form the valuation control governance mechanism are set out below. Transaction accounting control This control is under the responsibility of middle-office teams. However, the most complex transactions are controlled by RISK. Market Parameter (MAP) review – Independent Price Verification Price verification is managed jointly by Valuation and Risk Control (V&RC) and RISK. Daily controls are performed on the most liquid parameters and a comprehensive and formal review of all the market parameters is performed at month end. The types of parameters controlled by V&RC are listed precisely; these are essentially the parameters for which an automatic control against external sources can be implemented (security prices, vanilla parameters); this may include the use of consensus price services. RISK is in charge of controlling valuation methodologies as well as the most complex parameters that are very dependent on the choice of models. The general principles of the Market Parameter review are described in the Charter of Responsibility for Valuation as well as specialised global policies such as the Global Marking and Independent Price Verification Policy and MAP Review Principles. The specific methodologies are described in documents known as the MAP Books organised by product lines and regularly updated. The responsibilities of RISK and V&RC are defined for each point in time and the conclusions of the Market Parameter reviews are documented in the MAP review finding documents. The outcome of the Market parameter review is the estimation of valuation adjustments communicated to the middle-office, which enters it in the accounting records. The results are communicated to the Trading management during the Valuation Review Committees. The opinion of the control functions prevails, however, significant and persistent disagreement can be escalated to the PFC. Model Approval and Reviews The governance of model controls is described in the Valuation Methodology Control Policy (VMCP). Front office quantitative analysts design and propose the methodologies used to value the product and measure the risks that are used to take trading decisions. The research team and IT are responsible for the implementation of these models in the systems. The independent control of the valuation models falls under the responsibility of RISK and includes: model validation, by which a formal decision to approve or reject a model is taken, including following any modification of the valuation methodology called a “Valuation Model Event”. In all cases, the approval decisions are taken by a senior RISK analyst during a specific VMC. The review required by the validation process can be fast track or comprehensive; in the latter case, the reasons and conditions for approval are detailed in a model approval document; the review of models can be conducted at inception (linked to approval) or during the life of a model (re-calibration); it consists of an examination of the suitability of the model used to value certain products in the context of a given market environment; the control of the use and implementation of models, consists of continuous control of the correct parameterisation and configuration of the models as well as their suitability for the relevant products. Reserve and other valuation adjustments RISK defines and calculates “reserves”. These are adjustments to the market or model value affecting both the accounting valuation and regulatory capital. They can be considered either as the exit cost of a position or as a premium for risks that cannot be diversified or hedged, as appropriate. The reserves primarily cover: the bid-offer spreads and liquidity risk; the model or market parameters uncertainties; the reduction of non-hedgeable risks (smoothing digital or barrier pay-offs). A general valuation adjustment policy exists. Reserve methodologies are documented by RISK for each product line and these documentations are updated regularly. The analysis of reserve variations is reported at the monthly VRC. Reserve methodologies are improved regularly and any change is a Valuation Model Event. Reserve improvements are generally motivated by the conclusion of a model review or by the calibration to market information during the Market parameter review process. Additional Valuation Adjustments (AVA) are calculated in accordance with the Commission delegated Regulation (EU) No. 2016/101. This delegated regulation supplements the requirements of article 105 of the CRR with regard to regulatory technical standards for prudent valuation of financial instruments in the trading portfolio. It specifies that the scope of application of these requirements covers all instruments measured according to article 34 of the CRR, based on the proportion of the accounting valuation change that impacts Tier 1 capital. The regulatory technical standards set out the definitions and a framework for measurement and control for the elements of valuation uncertainty that must be considered when determining a prudent valuation under article 105. The standard also sets a target level of valuation certainty: the Bank must be 90% confident that it could liquidate the instrument at a better price than the prudent valuation. To apply these requirements, the first step is to define Prudent Valuation Adjustments (PVA). These adjustments correspond to the different types of risks and costs that could lead to exit costs, relative to the mid-market value (or the expected value). The main categories are the liquidation cost, the risk related to uncertainties regarding market prices, concentration risk and valuation model risk. PVAs are calculated for each exposure on a granular level. Based on these PVAs and for each exposure and risk type, BNP Paribas calculates the AVA (Additional Valuation Adjustments) that may be necessary, in addition to the reserves already taken into account in the valuation for the same exposure and risk type, to achieve the target valuation certainty level. For some types of risk, the calculation of AVAs includes a diversification effect. This reflects the fact that the amount of the additional adjustments that are necessary with respect to all positions are less than the sum of the additional adjustments that may be required for the positions or risks taken individually. The AVA amounts are deducted from Common Equity Tier 1 capital. Day One profit or loss Some transactions are valued with non-observable parameters. Accounting norms require the recognition of any Day One P&L where these parameters are used. The deferred net margin on reserves is recognised through profit or loss in proportion to the anticipated duration of the transaction or the period for which the inputs will be non-observable. RISK works with Finance, middle-offices, and business lines on the process of identifying and handling these profit and loss items, in order to determine whether a type of parameter or transaction is observable or not in accordance with the observability rules, which are moreover duly documented and approved in the Valuation Methodology Committee. The P&L impact of the P&L deferral is calculated by the middle-office or the Finance teams, according to the scope. The accounting treatment of the deferred margin is explained in note 1.f.10 Determination of fair value to the consolidated financial statements. Market Risk Exposure Market risk is first analysed by systematically measuring portfolio sensitivity to various market parameters. The results of these sensitivity analyses are compiled at various aggregate position levels and compared with market limits. Risk monitoring set up and limit setting The Group uses an integrated system to follow the trading positions on a daily basis and manage VaR calculations. This system not only tracks the VaR, but also detailed positions and sensitivities to market parameters based on various criteria (such as by currency, product, counterparty). This system is also configured to include trading limits, reserves and stress tests. Responsibility for limit setting and monitoring is delegated at three levels, which are, in order of decreasing importance: FMRC, followed by the Head of the business line and finally the manager of a trading portfolio. Limits may be changed either temporarily or permanently, in accordance with the level of delegation and the prevailing procedures. Appropriate escalation mechanisms are in place to ensure that the independent view from the RISK Function on the level of limits is heard. Core risk analysis and reporting to Executive Management RISK reports, through various risk analyses and dashboards, to Executive Management and business lines’ Senior Management on its risk analysis work (limit, VaR monitoring, core risk analysis, etc.). The reporting and diffusion of the main summary reports on risk are carried out by the MFI MI (Markets and Financial Institutions - Management Information) team within RISK. The following reports are generated on a regular basis: weekly “Main Position” reports for each business line (equity derivatives, commodities, credit G10 rates and FX & Local Markets), summarising all positions and highlighting items needing particular attention; these reports are mainly intended for business line managers; monthly local “bottom-up” stress testing reports for Executive Management identifying key risk concentrations around the globe; supporting documentation for the FMRC comprising markets and risk event summaries, global counterparty exposure summary, VaR/Stressed VaR evolution, market and counterparty risk stress testing and capital evolution summaries, market and counterparty risk backtesting; geographical and global risk dashboards; reports on valuation adjustments in the trading book, in particular regarding market and CVA sensitivities. VaR (Value at Risk) [Audited] The VaR is a statistical measure indicating the worst loss expected for a given portfolio over a given time horizon and within a given confidence interval under normal market movements. It is not a maximum loss and it can potentially be exceeded in some cases, for example in the event of abnormal market conditions. The BNP Paribas VaR calculation uses an internal model which has been approved by the banking supervisor. The BNP Paribas VaR methodology aims to accurately compute a one-day Value at Risk at the 99% confidence level. The VaR calculation is based on a Monte-Carlo approach, which not only performs normal or log-normal simulations but also accounts for the non-normality often observed in financial markets as well as correlation between risk factors. An equally weighted one-year rolling window of historical market data (updated fortnightly) is used to calibrate the Monte-Carlo simulation. The principal groups of simulated factors include: interest rates, credit spreads, exchange rates, equity prices, commodities prices, and associated volatilities. Changes in risk factors are proportional (share prices, volatility, CDS spreads) or absolute (rates excluding OIS, spreads, repo rates, correlations). The valuation method used varies depending not upon the product but upon the type of risk we are capturing. To generalise, the methods used are either sensitivity based or full revaluation based on grid interpolation to incorporate both linear and, especially for derivatives, non-linear effects. In both cases, BNP Paribas calculates the general and specific risk as a whole, taking into account the diversification effect by correlating market parameters. The algorithms, methodologies and sets of indicators are reviewed and improved regularly to take into account the capital market evolution. The scope of the BNP Paribas internal model covers the majority of capital market activities (Global Markets, ALM Treasury). As an indication, market risk based on the standardised approach (excluding securitisation positions in the trading book) represented less than 5% of the total market risk capital requirement at 31 December 2023, including foreign exchange risk. VaR is a statistical measure that does not take into account losses outside a given confidence interval and does not apply to losses related to intraday market movements. Other risk measures, such as Stressed VaR (SVaR), IRC and CRM, complement the BNP Paribas Group’s market risk monitoring and management system. Evolution of the VaR (1-day, 99%) [Audited] The VaR set out below are calculated from an internal model, which uses parameters that comply with regulations in place. They correspond to measurements taken into account within the framework of monitoring market limits. They are based on a one-day time horizon and a 99% confidence interval. In 2024, total average VaR for BNP Paribas was EUR 32 million (with a minimum of EUR 24 million and a maximum of EUR 45 million), after taking into account the -EUR 38 million netting effect between the different types of risks. These amounts break down as follows: ➤TABLE 84: VALUE AT RISK (1-DAY, 99%) [Audited] In millions of euros Year to 2024 Year to 2023 Minimum(1) Average Maximum(1) Last measure Average Last measure Interest rate risk 15 26 46 25 28 31 Credit risk 7 11 17 10 11 9 Foreign exchange risk 4 9 18 9 10 7 Equity price risk 10 16 28 25 14 11 Commodity price risk 5 8 15 10 7 5 Netting effect(1) (38) (45) (39) (30) TOTAL VALUE AT RISK 24 32 45 33 31 33 Note that the minimum and maximum figures shown above for the various risk types are computed on a standalone basis (i.e. independently from each other as well as the total VaR). While the minimum or maximum for each risk type may not necessarily be observed on the same date, minimum/maximum netting effects are not considered relevant. Quarterly change in VaR ➤Figure 11: Quarterly change in VaR (1-day, 99%) The VaR (1 day, 99%) stood at a low level throughout 2024 thanks to prudent management. Backtesting the VaR RISK continuously tests the accuracy of its internal model through a variety of techniques, including in particular a regular comparison over a long-term horizon between actual daily losses on capital market transactions and one-day VaR. This backtesting consists of making a comparison between the daily global trading book VaR and the actual result except fees and commissions. In accordance with the regulation, BNP Paribas supplements this “actual backtesting” method with a comparison between the daily VaR and the hypothetical result generated by the trading book, which is also known as “hypothetical backtesting”. The hypothetical result includes all components of the actual result, calculated on the previous day’s positions, only incorporating changes in market parameters. A backtesting event is declared when a real or hypothetical loss exceeds the daily VaR amount. The confidence interval selected for calculating daily VaR is 99%, which in theory means the observation of two to three events per year. The number of events is calculated at least quarterly and is equal to the highest of the number of excesses for the hypothetical and actual variations in the portfolio value. ➤Figure 12: Comparison between VaR (1-day, 99%) and daily trading revenue (EU MR4) In 2024, no Group backtesting event was found. Distribution of daily revenue The following histogram presents the distribution of the actual daily trading revenue of BNP Paribas, including intra-day revenues, fees and commissions. It indicates the numbers of trading days during which the revenue reached each of the levels marked on the x axis, in millions of euros. ➤Figure 13: Distribution of actual daily trading revenue Trading activities generated an actual positive result for 99% of the trading days in 2024 (versus 99% in 2023). Evolution of the VaR (10-day, 99%) The VaR set out below are calculated from an internal model, which uses parameters that comply with the method recommended by the Basel Committee for determining estimated Value at Risk. They correspond to measurements taken into account within the framework of monitoring market limits. These are based on a ten-day time horizon and a 99% confidence interval, extrapolated from 1-day VaR amounts with the same confidence interval, by multiplying by a factor equal to the square root of ten. In 2024, total average VaR (10-day, 99%) for BNP Paribas is EUR 102 million (with a minimum of EUR 77 million and a maximum of EUR 142 million), after taking into account the -EUR 119 million netting effect between the different types of risks. These amounts break down as follows: ➤TABLE 85: VALUE AT RISK (10-DAY, 99%) In millions of euros Year to 2024 Year to 2023 Minimum(1) Average Maximum(1) Last measure Average Last measure Interest rate risk 48 83 144 78 90 98 Credit risk 22 34 53 31 36 29 Foreign exchange risk 11 28 58 28 31 22 Equity price risk 31 51 89 78 43 35 Commodity price risk 15 25 48 32 22 16 Netting effect(1) (119) (143) (123) (95) TOTAL VALUE AT RISK 77 102 142 103 99 105 Note that the minimum and maximum figures shown above for the various risk types are computed on a standalone basis (i.e. independently from each other as well as the total VaR). While the minimum or maximum for each risk type may not necessarily be observed on the same date, minimum/maximum netting effects are not considered relevant. Stressed VaR Stressed VaR is calibrated over a specified full twelve-month period, including a crisis period. This period applies across the Group, which must have comprehensive market data to calculate the risk measurements and remain relevant when applied to the current trading book. An expert committee reviews the period on a quarterly basis in accordance with a quantitatively informed approach among the three scenarios that generate the maximum stressed risk measures. The current reference period for calibrating stressed VaR is from 3 January 2008 to 31 December 2008. BNP Paribas uses the same calculation method as for calculating VaR, with market parameters determined based on this reference period. The SVaRs presented below are based on a one-day time horizon and a 99% confidence interval and correspond to measurements taken into account within the framework of monitoring market limits. SVaR (1-day, 99%) remained relatively stable in 2024 with a slight decrease in the average to EUR 233 million. Le niveau global est lié aux activités des marchés des actions et de crédit. ➤TABLE 86: STRESSED VALUE AT RISK (1-DAY, 99%) In millions of euros Year to 2024 Year to 2023 Minimum Average Maximum Last measure Average Last measure Stressed Value at Risk 56 74 106 80 75 70 Incremental Risk Charge (IRC) The IRC approach measures losses due to default and ratings migration at the 99.9% confidence interval (i.e. the maximum loss incurred after eliminating the 0.1% worst events) over a capital of one year, assuming a constant level of risk. The scope to which IRC applies mainly includes plain vanilla credit products (bonds and CDS, excluding securitised products) from the trading book. The calculation of IRC is based on the assumption of a constant level of risk over the one-year capital horizon, implying that the trading positions or sets of positions must be rebalanced during the one-year horizon in a manner that maintains the initial risk level. Positions that have reached maturity or are in default are thus rolled over at the beginning of the liquidity horizon. The model, developed internally, is built around a rating-based simulation for each obligor, which captures both the risk of the default as well as the risk of rating migration. The dependency between debtors is integrated into a multi-factor asset return model, resulting in the rating migration, potential default and changes in credit spreads. The performance of each debtor depends on four factors: a specific factor; three systemic factors including one global factor, one geographical factor among three regions and one sector factor among twelve, one of which is dedicated to sovereign entities. The model is calibrated quarterly over the period from 1 February 2010 to the end of the quarter preceding the calculation date based on the CDS spread data series, and the price of corporate and institutional shares. The simulated returns are used to calculate the probability of change in rating – which is assigned to a credit rating scenario, then a credit spread – and to define a price variation grid associated with each debtor within a credit rating scenario. Positions that can be broken down by debtor are thus valued in the various simulated scenarios. Non-linear products such as credit index options are revalued directly. IRC was up, with an average of EUR 446 million in 2024. This increase is linked to the increase in the risk of positions in European and US credit index options. The year-end level was EUR 272 million after a significant decrease in September 2024 thanks to active protection management. Comprehensive Risk Measure (CRM) for credit correlation portfolio CRM is an additional capital charge to the IRC which applies to the credit correlation portfolio (excluding securitisation products) from the trading book. It measures potential losses from a variety of specific price change risks (spread, correlation, recovery, credit migration, etc.) at the 99.9% confidence interval (i.e. the maximum loss incurred after eliminating the 0.1% worst events) over a capital and liquidity horizon or rebalancing frequency of one year, assuming a constant level of risk over this horizon. The corporate correlation activity is an activity that consists of trading and risk managing mainly bespoke corporate CDOs and their hedges using single name CDS, CDS indices and index tranches. This activity falls under the structured credit activity trading within the Global Credit business line of Global Markets. The valuation framework uses both market observable prices (particularly used for CDS, index and index tranches) and data established based on models for the implicit correlations and recovery rates, the same model of returns and dependency between debtors, similar to that used for the IRC. The calibration is carried out on an annual basis. The correlation portfolio comprises complex non-linear products. Each product is revalued directly in the various simulated scenarios. Summary of measures taken into account within the framework of monitoring market limits ➤TABLE 87: IMA VALUES FOR TRADING PORTFOLIOS (EU MR3) a In millions of euros 31 December 2024 31 December 2023 VaR (10 days, 99%) 1 Maximum value 142 141 2 Average value 102 99 3 Minimum value 77 71 4 Period end 103 105 SVaR (10 days, 99%) 5 Maximum value 335 358 6 Average value 233 239 7 Minimum value 176 190 8 Period end 251 221 IRC(1) (99.9%) 9 Maximum value 671 594 10 Average value 446 288 11 Minimum value 232 154 12 Period end 272 324 CRM(2) (99.9%) 13 Maximum value 113 82 14 Average value 51 42 15 Minimum value (8) 0 16 Period end 31 15 Incremental Risk Charge. Comprehensive Risk Measure. Securitisation positions in trading book outside correlation portfolio For securitisation positions treated as financial assets at fair value for accounting purposes, changes in market value, except accrued interest on fixed-income securities, are recognised in the profit and loss account under “Net gain/loss on financial instruments at fair value through profit or loss”. For ABS positions outside the correlation book, the standardised capital charge applies (as per the standard method for banking books). The capital requirements are determined on the basis of the asset’s external rating. The capital calculation is based on the second-worst rating of the three rating agencies. ➤TABLE 88: BREAKDOWN OF TRADING BOOK SECURITISATION POSITIONS OUTSIDE CORRELATION BOOK BY ASSET TYPE (EU SEC2) i j k In millions of euros 31 December 2024 Investor EAD RWA Traditional Synthetic Traditional Synthetic STS Non-STS STS Non-STS 2 Retail 73 344 - 19 353 - 3 Residential mortgages 13 148 4 83 4 Credit card receivables 7 51 1 30 5 Other retail exposures 53 145 15 241 6 Re-securitisation 7 Corporates 6 702 - 1 419 - 8 Loans to corporates 483 293 9 Commercial mortgage 156 91 10 Finance lease and trade receivables 6 55 1 29 11 Other assets 8 6 12 Re-securitisation 1 TOTAL 79 1,046 - 20 772 - i j k In millions of euros 31 December 2023 Investor EAD RWA Traditional Synthetic Traditional Synthetic STS Non-STS STS Non-STS 2 Retail 85 452 - 89 243 - 3 Residential mortgages 15 109 6 44 4 Credit card receivables 6 39 48 13 5 Other retail exposures 63 304 34 186 6 Re-securitisation 7 Corporates 43 504 - 6 452 - 8 Loans to corporates 0 400 369 9 Commercial mortgage 0 19 23 10 Finance lease and trade receivables 43 57 6 53 11 Other assets 0 29 7 12 Re-securitisation 1 TOTAL 128 957 - 94 694 - ➤TABLE 89: BREAKDOWN OF TRADING BOOK SECURITISATION POSITIONS AND CAPITAL REQUIREMENTS OUTSIDE the CORRELATION BOOK BY RISK WEIGHT In millions of euros 31 December 2024 Risk weight Securitisation positions Capital requirements Short positions Long positions Short positions Long positions Total Securitisation Re-securitisation Total Securitisation Re-securitisation Total 7% – 10% - 36 36 0 0 12% – 18% - 386 386 5 5 20% – 35% 0 0 424 424 0 11 11 40% – 75% - - - 100% 0 0 178 178 0 23 23 250% - 40 40 11 11 425% - 16 16 7 7 650% - 10 10 6 6 Deduction(1) - 35 35 TOTAL 0 - 0 1,125 1,125 0 63 63 The Group opted for the deduction of CET1 capital instead of the 1,250% weighting. In millions of euros 31 December 2023 Risk weight Securitisation positions Capital requirements Short positions Long positions Short positions Long positions Total Securitisation Re-securitisation Total Securitisation Re-securitisation Total 7% – 10% - 68 68 1 1 12% – 18% - 467 467 7 7 20% – 35% - 292 292 8 8 40% – 75% 100% - 163 163 18 18 250% - 61 61 17 17 425% - 4 4 2 2 650% - 17 17 11 11 Deduction(1) - 13 13 TOTAL - - - 1,084 1,084 - 63 63 The Group opted for the deduction of CET1 capital instead of the 1,250% weighting. Market risk stress testing framework A series of stress tests are performed to simulate the impact of extreme market moves on the value on the global trading books. Stress tests cover all market activities applying a range of stressed market conditions. Scenarios The fundamental approach of the current trading book stress testing framework combines “bottom-up” and “top-down” stress testing: macro level scenarios (top-down) comprise the evaluation of a set of global level stress test. These scenarios assess the impact of severe market moves on BNP Paribas trading positions related to large regional or market shock events. They can be based on historical events or forward-looking hypothetical scenarios. Scenarios include events such as an emerging markets crisis, credit crunch and a stock market crash, and some are based on past crises. The official macro stress tests scenarios currently comprise a range of eight different stress tests. The results of these scenarios are reviewed at each Financial markets risk Committee (FMRC). The scenarios are: scenario 1: unexpected rate hike, driving short-term rates higher with a flattening of the interest rate curve, scenario 2: general market sell-off, with a flight to quality assets leading to a drop and a steepening of the interest rate curve, scenario 3: emerging market crisis, generic and not one specific region, scenario 4: credit crunch, leading to general risk aversion, scenario 5: euro crisis, low GDP expectations, potential threat of a country leaving the euro and a significant weakening of the currency, scenario 6: energy shock driven by geopolitical turmoil with serious consequences on energy markets, scenario 7: crisis in the United States, linked to an event such as a US debt ceiling deadlock, scenario 8: risk-on scenario: rally in equity and emerging markets, low implied volatility and drop in implied volatility in all markets (effectively a return to risky assets); micro level scenarios (bottom-up): instead of looking at the effect on the global portfolio, these types of scenarios aim to highlight risk exposures on specific trading desks, regions, or risk concentrations. This bottom-up approach enables the use of more bespoke stress scenarios (such as complex product dislocations or idiosyncratic risk) and hence allows the detection of areas of potential losses which may not be easily achieved under the global macroeconomic scenario. This bottom-up process also facilitates the classification of risk areas into those where there may be less liquidity or where the risk may be more structural in nature. Process It is the combination of such top-down and bottom-up scenarios that leads to the construction of the FMRC adverse scenario for the trading books. The official top-down stress scenarios are presented at each FMRC meeting along with the FMRC Adverse global stress scenarios and any bottom-up stress tests on complex products yielding significant results. The results of all stress tests are reviewed regularly by Executive Management and sent to the Board of directors. The scenarios take market liquidity into account by simulating the drying up of certain assets or product liquidity as the stress event unfolds. To understand this process, it can be simplified by considering an approach where the time horizon for the stress shock can vary between different instruments/assets (hence more advanced scenarios can take certain idiosyncratic factors into account). Moreover, it may sometimes be required to quantify the impact of a stress event occurring with re-hedging assumptions factored into part of the exposure under stress. Stress testing is governed by the Stress testing steering Committee (STSC). The committee meets approximately monthly and sets the direction of all internal RISK departmental stress scenario developments, infrastructure, analysis and reporting. The STSC governs all internal stress testing matters relating to both market and counterparty risk and decides upon the detailed definition of the FMRC stress tests. Stress testing is the core element of the tail risk analysis, which is also captured through the stressed Value at Risk, the Incremental Risk Charge and the Comprehensive Risk Measure. Furthermore, the risk of a rare event used in the form of the “average loss in addition to VaR” (Expected Shortfall) in allocating capital in respect of market risk between business lines is an additional element allowing tail risk in the management and monitoring of market risk to be taken into account. Market risk related to banking activities Interest rate and foreign exchange risks related to banking intermediation activities and investments are managed by the cross-functional ALM Treasury Department. At Group level, the ALM-Treasury Department is directly overseen by the Group Senior Executive Advisor. BNP Paribas SA’s ALM Treasury Department exercises functional authority over the ALM Treasury teams of each entity or group of entities covering the entire Group perimeter. Strategic decisions are made by the Asset and Liability Committee (ALCo), which oversees ALM Treasury’s activities. These committees have been set up at Group, entity or group of entities level. The foreign exchange risk gives rise to a weighted assets calculation under Pillar 1. The interest rate risk falls under Pillar 2. Foreign exchange risk Calculation of risk-weighted assets Foreign exchange risk relates to all transactions part of the banking book. Group entities calculate their net position in each currency, including the euro. The net position is equal to the sum of all asset items less all liability items plus off-balance sheet items (including the net forward currency position and the net delta-based equivalent of the currency option book), less structural, non-current assets (long-term equity interests, property, plant and equipment, and intangible assets) subject to exemption. These positions are converted into euros at the exchange rate prevailing on the reporting date and aggregated to give the Group’s overall net open position in each currency. The net position in a given currency is long when assets exceed liabilities and short when liabilities exceed assets. For each Group entity, the net currency position is balanced in the relevant currency (i.e. its reporting currency) such that the sum of long positions equals the sum of short positions. The rules for calculating the capital requirement for foreign exchange risk are as follows: matched positions in currencies of Member States participating in the European Monetary System are subject to a capital requirement of 1.6% of the value of the matched positions; CFA and CFP francs are matched with the euro, and are not subject to a capital requirement; positions in closely correlated currencies are subject to a capital requirement of 4% of the matched amount; other positions, including the balance of unmatched positions in the currencies mentioned above, are subject to a capital requirement of 8% of their amount. The amounts involved are set out in Table 82: Market risk under the standardised approach (EU MR1). Foreign exchange risk and hedging of net income generated in foreign currencies [Audited] So-called “operating” foreign exchange risk exposure relates to net earnings generated by activities conducted in currencies other than the functional currency of the entity concerned. The Group’s policy is to hedge the variability of its net income due to currency movements. To this end, earnings generated in a currency other than the functional currency of a given entity of the Group are hedged locally. Foreign exchange risk and hedging of net investments in foreign operations [Audited] The so-called “structural” foreign exchange position of an entity relates to investments in currencies other than the functional currency. This position mainly results from the capital endowment of the branches and equity investments in foreign currencies financed by buying the investment currency. This structural foreign exchange position, adjusted for any intangibles, constitutes patrimonial exposure. The Group’s policy is to hedge portfolio exposure to liquid currencies, while at the same time maintaining the solvency ratio’s limited sensitivity to exchange rate fluctuations. For this, borrowings in the same currency as the investment are used as an alternative to financing by purchasing the currency in question. Borrowings are recognised as hedges of investments. Interest rate risk Interest rate risk in the banking book, or global interest rate risk, is the risk of variability in results as a result of mismatches in interest rates, maturities and nature between assets and liabilities in the banking book. This risk arises in non-trading portfolios. Organisation of the Group interest risk management [Audited] The Board of directors assigns responsibility to the Chief Executive Officer for management of interest rate risk in the banking book. The Board of directors is informed quarterly on the principles governing interest rate policy and the Group’s position through the Internal Control, Risk Management and Compliance Committee (CCIRC). The Chief Executive Officer delegates management responsibility to the Group ALM Treasury Committee (Asset and Liability Management Committee). The permanent members of the Group ALM Treasury Committee are the Group Senior Executive Advisor (Chairman), the Delegate Deputy Chief Operating Officers, the Group Chief Risk Officer, the Group Chief Financial Officer, the Group ALM Treasury Head. The Head of General Inspection and the Head of Compliance are also invited. This committee is responsible for tracking interest rate risk monitoring indicators, proposing the Group’s interest rate risk profile and assigning limits. ALM Treasury is responsible for the analysis of the management proposals and operational implementation of decisions related to managing the interest rate risk of the banking book as part of its delegated management. The RISK Function participates in the Group ALM Treasury Committee and the local ALM Treasury Committees (ALCo) and oversees implementation by ALM Treasury of the relevant decisions made by these committees. It also provides second-line control by reviewing the models and risk indicators, monitoring the level of risk indicators and ensuring compliance with the limits assigned. The banking book consists of the Group’s total bank balance sheet, excluding trading book transactions. This includes intermediation transactions (deposits, loans, etc.), non-commercial balance sheet items (equity, fixed assets, etc.) and banking book risk management activities, including derivatives used for the management of interest rate risk on the banking book (notably when they are ineligible for hedge accounting under IFRS). Banking book interest rate risk in each BNP Paribas entity is systematically transferred to ALM Treasury, through internal analytic contracts or lending/borrowing transactions. For the Group as a whole, ALM Treasury is responsible for managing the interest rate risk transferred in this way. Decisions concerning the management of interest rate risk are made and monitored during monthly or quarterly committee meetings by entity or group of entities, attended by representatives of local ALM Treasury, Group ALM Treasury, FINANCE & STRATEGY and RISK Functions and senior management of the entities and/or businesses. Measurement of interest rate risk [Audited] Rate positions are measured taking into account the specific features of the risks managed. Hence, the Group has defined the concepts of standard rate risks and structural rate risks. The standard rate risk corresponds to the general case, namely when it is possible to define uniquely the most appropriate hedging strategy for a given transaction. The structural rate risk is the interest rate risk for equity and non-interest-bearing current accounts: the investment of these balance sheet items generates regular revenues but are sensitive to interest rate levels. However, it is not possible to define a single hedging strategy to fully neutralise this sensitivity. In this case, the Group included all the possible so-called “neutral” management strategies in terms of interest rate risk. Interest rate risks are analysed in terms of interest rate gaps that measure for each future period the potential rate characteristic mismatches between assets and liabilities (fixed rate and indexation type). In the interest rate gaps, the optional effects, in particular linked to behavioural options, are embedded and translated into their delta equivalent. Value indicators are also used. The maturity split is determined on the basis of the contractual terms of the transactions and observations of customer behaviour. For Retail Banking products, behavioural models are based on historical or forward data and econometric studies. These possible management strategies notably relate to early redemption and savings accounts. Moreover, the maturities of non-interest-bearing current accounts and of equity are calculated according to a more conventional approach defining a range of investments taking into account the objective of stabilising results and stability of deposits. For current accounts, average maturities are less than five years and the proportion invested beyond 10 years is negligible. Incorporating dynamic changes in balance sheet items, the interest rate risk is measured through indicators of the sensitivity of revenues to interest rate changes on a going concern basis. This enables the partial or zero correlation between customer interest rates and market interest rates to be taken into account on the one hand, and the volume sensitivities to interest rates on the other hand, which create a risk to future revenues. The choice of indicators and risk modelling are reviewed by RISK. The results and the adjustments following these reviews are presented and monitored to the committees on a regular basis. The interest rate risk measurement indicators are consistently presented to the ALCos and serve as the basis for operating risk management decisions. Risk limits [Audited] Interest rate risk indicators span the entire banking book as at 31 December 2024. The interest rate gaps are subject to interest rate risk limits across all time horizons. These limits are calibrated based on the nature of the risks (standard or structural) at Group and entity level. They are reviewed annually. The Group’s revenue sensitivity indicator is subject to limits and a warning threshold relative to the overall sensitivity level, also broken down by division and the main entities. Moreover, the Group regularly monitors the impact of stress scenarios on its revenues. Sensitivity of revenues to global interest rate risk [Audited] Net interest income sensitivities are calculated on the total banking book, over one-, two- and three-year rolling timeframes notably, for a parallel, instantaneous and definitive increase and decrease in market rates on all currencies over all the terms of ±50 basis points (±0.5%). These sensitivities are measured as deviations from the NII projection for the central rate scenario corresponding to future interest rates expected by the markets at estimation date (e.g. forward rates seen at the end of December 2024 for sensitivities at the end-2024). Other scenarios are also used to measure NII sensitivities, including instantaneous, parallel and definitive shocks of ±200 basis points. The sensitivities include the direct impacts of market rates and business trends. Indirect effects on commercial activity linked to changes in outstandings and customer rates, are also taken into account. Thus, increases in sight non‑interest‑bearing current account balances, observed during the period of low or negative interest rates, are considered as situational to the low interest rates environment, and are assumed to decrease gradually when short‑term rates return to sufficiently positive levels.Having maintained interest rates at significant positive levels, led to sensitivities levels that existed before the low interest rate environment, as illustrated below by end-2023 sensitivities (end-December interest rates being punctually at lower levels compared to previous and subsequent weeks). ➤TABLE 90: SENSITIVITY OF REVENUES TO GLOBAL INTEREST RATE RISK BASED ON A 50 BASIS POINTS INCREASE OR DECREASE IN THE INTEREST RATES (EU IRRBB1A) [Audited] In millions of euros 31 December 2024 For +50 bps shock For -50 bps shock Year 1 147 (134) Year 2 313 (266) Year 3 574 (516) In millions of euros 31 December 2023 For +50 bps shock For -50 bps shock Year 1 336 (363) Year 2 401 (378) Year 3 603 (555) Supervisory Outlier Tests (SOT) SOT on Economic Value of Equity (EVE) – SOT EVE As the assets and liabilities of the Group’s banking intermediation business are not intended to be sold, they are not recognised or managed on the basis of their theoretical economic value measured by discounting future cash flows. Similarly, the theoretical economic value of the net assets does not affect the Group’s capital. However, pursuant to the regulatory requirements and calculation methods laid down by the European Banking Authority (EBA), the ratios of sensitivity of the theoretical economic value of the net assets of the intermediation business in relation to Tier 1 capital are regularly calculated through 6 interest rate scenarios defined by the EBA (i.e. parallel up/down, steepening/flattening, short rates up/down). These ratios are compared to the -15% threshold used by the supervisor to identify situations where the interest rate risk in the banking book could be material. The ratios at end-December 2024 are presented in the table below and are significantly below the materiality threshold of -15%. Across the six supervisory scenario, the lowest ratio stands at -3.2% below the level of end December 2024 SOT on Net Interest Income (NII) – SOT NII After its approval by the European Commission and its publication in the Official Journal of the European Union in April 2024, the SOT NII entered into force in May 2024. The SOT NII refers to the sensitivity of the first year NII to parallel up/down interest rate scenarios (i.e. a ± 200 basis points shock for EUR and USD) assuming constant balance sheet (in terms of both size and mix) and constant commercial margin, expressed as a ratio to Tier One capital. For each currency, as for SOT EVE, the SOT NII weights positive sensitivities with a 50% factor and negative sensitivities with a 100% factor. As of end-December 2024, the lowest ratio stands at -1.1%, well below the -5% materiality threshold. ➤TABLE 91: SENSITIVITY OF TIER 1 CAPITAL ECONOMIC VALUE AND SENSITIVITY OF TIER 1 NET INTEREST INCOME TO THE REGULATORY STRESS TEST SCENARIOS (EU IRRBB1B) Stress test scenarios (1) 31 December 2024 31 December 2023 Change in the economic value as a percentage of equity (Tier 1) Change in the Net Interest Income as a percentage of Tier 1 capital Change in the economic value as a percentage of equity (Tier 1) Change in the Net Interest Income as a percentage of Tier 1 capital 1 Parallel up -2.70% +0.40% +0.30% 2 Parallel down -3.20% -1.10% -5.40% 3 Steepener (decrease in short term rates, increase in long term rates) +0.90% +1.30% 4 Flattener (increase in short term rates, decrease in long term rates) -2.70% -3.10% 5 Short rates up -2.80% -2.00% 6 Short rates down +1.30% +0.80% The shocks used to calculate the value and net interest margin sensitivity amounts correspond to regulatory shocks as defined in Delegated Regulation (EU) 2024/856 of 1 December 2023. Hedging of interest rate and foreign exchange risks Hedges initiated by the Group consist mainly of interest rate or currency hedges using derivative financial instruments (swaps, options and forwards). Depending on the hedging objective, derivative financial instruments used for hedging purposes are qualified either as fair value hedges, cash flow hedges, or hedges of net investments in foreign operations. Each hedging relationship is formally documented at inception. The documentation describes the hedging strategy, identifies the hedged item and the hedging instrument, and the nature of the hedged risk; and describes the methodology used to test the expected (prospective) and actual (retrospective) effectiveness of the hedge. Global interest rate risk The Bank’s strategy for managing global interest rate risk is mainly based on closely monitoring the sensitivity of the Bank’s net income to changes in interest rates, factoring in all interest rate risks. The aim is to ensure the stability and regularity of the interest margin. This monitoring is based on an extremely accurate assessment of the risks incurred so that the Bank can determine the hedging strategy, after taking into account the effects of netting the different types of risk. These hedging strategies are defined and implemented by entity and by currency. The hedges can comprise swaps and options and are typically accounted for as fair value hedges or cash flow hedges. They may also take the form of government securities and are classified on an accounting basis as “Financial assets at amortised cost” or “Financial assets at fair value through equity”. The year 2024 was marked, on the one hand, by a stabilisation of the world’s growth and of the main economic zones (3.3% in 2023 and 3.2% in 2024 worldwide, 2.9% in 2023 and 2.8% in 2024 in the United States, 0.4% in 2023 and 0.8% in 2024 in the Euro Zone) and, on the other hand, by a divergence on the normalisation of inflation between economic zones. Indeed, a slowdown in the normalisation of inflation was observed in the United States (which remains above 3.0%), in non-Western countries ("Emerging Market and Developing Economies" at 7.8%), when the Euro zone benefited from the continued normalisation of the inflation at a level of 2.4% in 2024. The European Central Bank was able to initiate a cycle of cuts in its key rate from June onwards, from 4.0% to 3.0% at the end of the year. The Federal Reserve began its own downward cycle in September, with a cumulative decrease of 1.00%. Bond rates rose from January to May (German Bund 10-year bond yields rose from 2.05% to 2.70%, US U.S. Treasury, 10 years from 3.90% to 4.70%). In the second half of the year, US 10-year debt rates fell to 3.60% when the Federal Reserve first fell, and then rose by 1.00% until the end of the year. The Bund moved without a trend in the second half of the year between 2.05% and 2.40%. Structural foreign exchange risk [Audited] Currency hedges are contracted by the ALM Treasury in relation to the Group’s investments in foreign currencies and its future foreign currency revenues. Each hedging relationship is formally documented at inception. The documentation describes the hedging strategy, identifies the hedged item and the hedging instrument, and the nature of the hedged risk and describes the methodology used to test the expected (prospective) and actual (retrospective) effectiveness of the hedge. A hedging relationship is applied and documented for investments in subsidiaries and branches financed by foreign currency loans so as to record movements in exchange rates symmetrically and avoid impacts on the profit and loss account. In this context, these instruments are designated as net investment hedges. The amount of these loans stood at EUR 14 billion at 31 December 2024, compared with EUR 16 billion at 31 December 2023. The changes in value related to exchange differences recognised directly in equity with respect to these hedges amounted to -EUR 964 million in 2024, compared with -EUR 339 million at 31 December 2023. During the 2024 financial year, no net investment hedging relationships were disqualified. The amount recorded in the profit and loss account for 2024 with respect to the ineffective portion of hedges of net investments is immaterial. Hedging of financial instruments recognised in the balance sheet (Fair Value Hedge) Fair value hedges of interest rate risks relate either to identified fixed-rate assets or liabilities, or to portfolios of fixed-rate assets or liabilities. Derivatives are contracted to reduce the exposure of the fair value of these instruments to changes in interest rates. Individual assets hedging consists mainly of securities classified as “Financial assets at amortised cost” or “Financial assets at fair value through equity”; individual liabilities hedging consists mainly of fixed-income securities issued by the Group. Hedges of portfolios of financial assets and liabilities, constructed by currency, relate to: fixed-rate loans (property loans, equipment loans, consumer credit and export loans); fixed-rate deposits (mainly demand deposits and funds deposited under home savings contracts). To identify the hedged amount, the residual balance of the hedged item is split into maturity bands, and a separate amount is designated for each band. The maturity split is determined on the basis of the contractual terms of the transactions and historical observations of customer behaviour (early redemption assumptions and estimated default rates). Demand deposits, which do not bear interest at contractual rates, are qualified as fixed-rate medium-term financial liabilities. Consequently, the value of these liabilities is sensitive to changes in interest rates. Estimates of future cash outflows are based on historical analyses. For each hedging relationship, expected hedge effectiveness is measured by ensuring that for each maturity band, the fair value of the hedged items is greater than the fair value of the designated hedging instruments. Actual effectiveness is assessed on an ex-post basis by ensuring that the monthly change in the fair value of hedged items since the start of the month does not indicate any over-hedging. Cash flow hedge In terms of interest rate risk, the Group uses derivative instruments to hedge fluctuations in income and expenses arising on floating-rate assets and liabilities. Highly probable forecast transactions are also hedged. Hedged items are split into maturity bands by currency and benchmark interest rate. After factoring in early redemption assumptions and estimated default rates, the Group uses derivatives to hedge some or all of the risk exposure generated by these floating-rate instruments. In terms of foreign exchange risk, the Group hedges against variability in components of consolidated net income. In particular, the Group may hedge future revenue flows (especially interest income and fees) derived from operations carried out by its main subsidiaries and/or branches in a currency other than their functional currencies. As in the case of interest rate hedges, the effectiveness of these hedging relationships is documented and assessed on the basis of forecast maturity bands. The table below concerns the scope of BNP Paribas SA medium- and long-term transactions and shows the amount of hedged future cash flows (split by forecast date of realisation), which constitute the majority of the Group’s hedging transactions. ➤TABLE 92: HEDGED CASH FLOWS [Audited] Period to realisation In millions of euros 31 December 2024 31 December 2023 Less than 1 year 1 to 5 years More than 5 years Total Less than 1 year 1 to 5 years More than 5 years Total Hedged cash flows 2,617 6,720 1,779 11,115 2,993 6,716 887 10,596 In 2024, no cash flow hedges were declassified on the grounds that achieving these future earnings would no longer be highly probable. 5.8Liquidity risk Liquidity risk is the risk that the Bank will not be able to honour its commitments or unwind or settle a position due to the market environment or idiosyncratic factors (i.e. specific to BNP Paribas), within a given timeframe and at a reasonable cost. Liquidity risk reflects the risk of the Group being unable to fulfil current or future foreseen or unforeseen cash or collateral requirements, across all time horizons, from the short to the long term. This risk may stem from the reduction in funding sources, drawdown of funding commitments, a reduction in the liquidity of certain assets, or an increase in cash or collateral margin calls. It may be related to the Bank itself (reputation risk) or to external factors (risks in some markets). The Group’s liquidity risk is managed under a global liquidity policy approved by the Group’s ALM Treasury Committee. This policy is based on management principles designed to apply both in normal conditions and in a liquidity crisis. The Group’s liquidity position is assessed on the basis of internal indicators and regulatory ratios. Liquidity risk management policy [Audited] Objectives The objectives of the Group’s liquidity management policy are to secure a balanced financing structure for the development of BNP Paribas business activities, and to ensure it is sufficiently robust to cope with crisis situations. The liquidity risk management framework relies on: management indicators: by volume, to ensure that businesses or activities comply with their liquidity targets set in line with the Group’s funding capacity, by price, via internal liquidity pricing; the definition of monitoring indicators which enable assessment of the Group’s liquidity position under normal conditions and in crisis situations, the efficiency of actions undertaken and compliance with regulatory ratios; the implementation of liquidity risk management strategies based on diversification of funding sources with maturities in line with needs, and the constitution of liquidity reserves. The Group’s liquidity policy defines the management principles that apply across all Group entities and businesses and across all time horizons. Governance As for all risks, the Group Chief Executive Officer is granted authority by the Board of directors to manage the Group’s liquidity risk. The Chief Executive Officer delegates this responsibility to the Group ALM Treasury Committee. The Internal Control, Risk Management and Compliance Committee (CCIRC) reports quarterly to the Board of directors on liquidity policy principles and the Group’s liquidity position. The Group ALM Treasury Committee is responsible for: proposing the Group’s liquidity risk profile at the CCIRC and the Board of directors, for review and decision; monitoring compliance with regulatory liquidity ratios; defining and monitoring management indicators and calibrating the quantitative thresholds set for the Bank’s businesses; defining and monitoring liquidity risk indicators and associating quantitative thresholds to them if necessary; defining and overseeing implementation of liquidity risk management strategies, including monitoring of business lines, under normal and stressed conditions. In particular, the Group ALM Treasury Committee is informed about funding programmes and programmes to build up liquidity reserves, simulations in crisis conditions (stress tests), and about all events that may arise in crisis situations. The Group ALM Treasury Committee is tasked with defining the management approach in periods of crisis (emergency plan). This framework is based on: supervision of the emergence of a crisis by monitoring the market position and complying with thresholds set for a series of indicators; governance of the activation of crisis management mode and the associated responsibilities; identification of possible actions for managing a crisis. The Group ALM Treasury Committee meets every month under normal conditions and more often in stressed conditions or to deal with specific issues. The permanent members of the Group ALM Treasury Committee are the Group Senior Executive Advisor (Chairman), the Delegate Deputy Chief Operating Officers, the Chief Risk Officer, the Group Chief Financial Officer and the Group ALM Treasury Head. Other members represent the RISK Function, Finance & Strategy Function and ALM Treasury. The Head of General Inspection and the Head of Compliance are also invited. Across the Group, ALM Treasury is responsible for the operational implementation of the Group ALM Treasury Committee’s liquidity management decisions. The ALM Treasury Committees in entities or groups of entities are responsible for local implementation of the strategy decided by the Group ALM Treasury Committee to manage the Bank’s liquidity risk. ALM Treasury is responsible for managing liquidity for the entire Group across all maturities. In particular, it is responsible for funding and short-term issuance (certificates of deposit, commercial paper, etc.), for senior and subordinated debt issuance (MTNs, bonds, medium/long‑term deposits, covered bonds, etc.), preferred share issuance, and loan securitisation programmes for the Group. ALM Treasury is tasked with providing internal funding to the Group’s divisions, operating entities and business lines, and investing their surplus cash. It is also responsible for building up and managing liquidity reserves, which comprise assets that can be easily sold in the event of a liquidity squeeze. RISK participates in the Group and local ALM Treasury Committees and oversees implementation by ALM Treasury of the relevant decisions made by these committees. It provides second-line control by reviewing the models and risk indicators (including liquidity stress tests), monitoring risk indicators and ensuring compliance with the limits assigned. Finance is responsible for producing the regulatory liquidity indicators, as well as the internal monitoring indicators. Finance oversees the consistency of the internal monitoring indicators with the objectives defined by the Group ALM Treasury Committee. Finance takes also part in the Group and local ALM Committees. Liquidity risk management and supervision Internal liquidity risk management and internal monitoring are based on a large range of indicators at various maturities. These indicators are measured on a regular basis by currency and maturity, both at Group level and entity level. Business lines’ internal monitoring indicators [Audited] The management indicators relate to funding needs of Group’s business lines under normal and stressed conditions. These indicators are part of the Group’s budget management framework, with targets and regular (monthly) monitoring of the deviations from the objectives set. Funding needs of the Group’s businesses The funding needs associated with the activity of the Group’s businesses are managed in particular by measuring the difference between commercial funding needs (customer loans and overdrafts, trading assets, etc.) and commercial funding resources (customer deposits, sale of the Group’s debt securities to customers, trading liabilities, etc.). This indicator makes it possible to measure the business lines’ liquidity consumption under a normal business scenario. It is supplemented by indicators to measure the funding needs of the business lines in one month and one year depending on the assumptions defined by European regulations in force (Liquidity Coverage Ratio) and (Net Stable Funding Ratio). In addition to this commercial funding need indicators, the Group closely monitors the liquidity reserves and the refinancing provided by ALM Treasury, as well as the Group’s structural resources (i.e. net own funds). The overall management of the business funding needs, the Group’s structural resources, funding and liquidity reserves made by the ALM Treasury allows the Group to achieve a structurally robust liquidity situation able to resist severe liquidity stresses. Business lines’ consumption of liquidity is thus integrated in the Group’s budget process, wherein each business line estimates its future liquidity needs, in keeping with its profitability targets and capital consumption objectives. During the iterative budget process, liquidity consumption objectives are allotted to the business lines, taking into account the funding provided by ALM Treasury and structural resources, in line with the Group’s overall target. This process is regularly renewed, monitored and adjusted as appropriate throughout the year by the Group ALM Treasury Committee. Internal liquidity pricing All of the Group’s assets and liabilities are subject to internal liquidity pricing, the principles of which are decided by the Group ALM Treasury Committee and aim to take account of trends in the cost of market liquidity and the balance between assets and liabilities within the Group’s development strategy. Change in the liquidity position At end-2024, the businesses had a net liquidity surplus, asthe last year (deposits higher than loans). Group’s net equity is added to this surplus leading to an overall liquidity surplus. In this context, the funding provided by ALM Treasury is used to finance the liquidity reserve, while also correcting the structural differences between assets and liabilities (by maturity term) and covering TLAC (Total Loss-Absorbing Capacity) requirements, as well as future Minimum Requirement for own funds and Eligible Liabilities (MREL). The Group maintains a large surplus in liquidity. Wholesale funding and liquidity reserve monitoring indicators Sources of wholesale funding The Group adopted a broad definition of wholesale funding, covering all funds excluding those provided by: retail customers, professionals and corporates; institutional clients for their operating needs (e.g. portion needed for custody management); monetary policy and funding secured by market assets. This definition is broader than market funding. For example, it includes medium- to long-term debt placed in funds for individuals and, in the short-term portion, non-operating deposits in the Securities Services business. The Group has a conservative policy for the management of its wholesale funding by ensuring that it does not depend on very short-term funding and diversifying these funding sources. Thus, wholesale funding with an original maturity of less than one month, so-called very short-term wholesale funding, is systematically “sterilised” by being placed in immediately-available deposits in central banks so that it is not used to fund the Group’s business. The Group ensures that short-term wholesale funding (with original maturity of between one month and one year) is diversified in terms of counterparty, industry and residual maturity. Any excess concentration on one of these criteria is systematically “sterilised” and placed in central bank deposits. Medium- to long-term wholesale market funding (with original maturity over one year) is diversified in terms of investor type, distribution network, funding programme (secured or unsecured), and by geographical area to ensure diversification. Furthermore, the Group aims to optimise the term structure of its funding operations. At end of 2024, sterilised very short-term wholesale funding totalled EUR 76.4 billion (leading to the sterilisation of an equivalent amount in the Group’s liquidity reserve), diversified short-term wholesale funding totalled EUR 161.4 billion and diversified medium-to long-term wholesale funding totalled EUR 246.4 billion. ➤TABLE 93: BREAKDOWN OF THE WHOLESALE FUNDING BY CURRENCY The breakdown of funding by currency corresponds to the Group’s needs and to a diversification objective. In millions of euros 31 December 2024 EUR USD Other Total Sterilised very short-term wholesale funding 45,571 16,736 14,091 76,398 Short-term wholesale funding 68,716 53,259 39,459 161,435 Medium- to long-term wholesale funding 116,000 97,437 32,922 246,358 TOTAL WHOLESALE 230,287 167,433 86,471 484,191 In millions of euros 31 December 2023 EUR USD Other Total Sterilised very short-term wholesale funding 38,358 20,243 12,328 70,930 Short-term wholesale funding 56,676 46,920 33,805 137,400 Medium- to long-term wholesale funding 105,461 85,776 26,485 217,722 TOTAL WHOLESALE 200,495 152,939 72,618 426,052 ➤TABLE 94: BREAKDOWN OF THE GROUP’S MEDIUM LONG TERM (MLT) WHOLESALE FUNDING The instruments are shown at their net carrying amount (including in particular accrued unpaid interest and the revaluation of the hedged portion). In millions of euros 31 December 2024 Tier 1 hybrid debt Tier 2 subordinated debt Subordinated debt not eligible to own funds Unsecured senior debt Secured MLT funding Monetary policy funding TOTAL Non-preferred Preferred Total MLT funding 15,872 25,683 2,487 73,487 141,770 13,648 - 272,946 MLT debt placed with clients (282) (247) (26,058) (2) (26,588) Monetary policy - - WHOLESALE MLT FUNDING 15,872 25,401 2,487 73,240 115,712 13,646 - 246,358 In millions of euros 31 December 2023 Tier 1 hybrid debt Tier 2 subordinated debt Subordinated debt not eligible to own funds Unsecured senior debt Secured MLT funding Monetary policy funding TOTAL Non-preferred Preferred Total MLT funding 14,901 20,748 1,600 73,499 109,123 15,524 18,162 253,556 MLT debt placed with clients (17,673) (17,673) Monetary policy (18,162) (18,162) WHOLESALE MLT FUNDING 14,901 20,748 1,600 73,499 91,450 15,524 - 217,722 ➤TABLE 95: TRENDS IN GROUP MLT WHOLESALE FUNDING In millions of euros Outstanding 31 December 2023 New origination Redemptions Buy-backs Exercise of calls Perimeter effect and other Outstanding 31 December 2024 Total MLT funding 253,556 77,826 (49,204) (3,371) (22,321) 16,459 272,946 MLT debt placed with clients (17,673) (10,882) 1,667 273 28 (26,588) Monetary policy (18,162) 18,162 - WHOLESALE MLT FUNDING 217,722 66,944 (29,376) (3,098) (22,321) 16,487 246,358 Total medium- to long-term wholesale funding outstandings stood at EUR 246.4 billion at 31 December 2024 against EUR 217.7 billion at 31 December 2023. Wholesale funding raised by the Group in the markets with an initial maturity of over 1 year reached EUR 66.9 billion in 2024, compared to EUR 71.7 billion in 2023. Wholesale funding trends based on regulatory changes In addition to the Group’s liquidity management targets, use of wholesale funding also satisfies regulatory requirements relating to Recovery and Resolution, with the application of the Total Loss Absorbing Capacity (TLAC) and Minimum Requirement on own funds and Eligible Liabilities (MREL) requirements (see paragraph Recovery and resolution in Capital adequacy and capital planning in section 5.2). At 31 December 2024, BNP Paribas issued a total of EUR 78.8 billion (outstanding principal) of non-preferred senior debt (of which EUR 73.2 billion of wholesale debt is eligible for TLAC and MREL). This debt is composed of: public issues and private placements in various currencies with different maturities. The main characteristics of these debt instruments are: issues under EMTN and US MTN programmes, non-preferred senior bonds (see article L.613-30-3-I-4 of the French Monetary and Financial Code) or unstructured debt; initial maturities of more than one year; subject to conversion or impairment before senior preferred debt but after subordinated debt; documentation mandatorily stating that this debt belongs to the new statutory category. In addition, as at 31 December 2024, BNP Paribas issued a total of EUR 24.9 billion in senior preferred vanilla debt, eligible for the MREL requirement. To meet the TLAC and MREL ratio requirements, the Group plans to issue EUR 16 billion of senior debt (senior preferred and senior non-preferred) in 2025, subject to market conditions. The Group had completed 28.6% of its issue programme for this category of debt as at 17 February 2025. MLT secured wholesale funding MLT secured wholesale funding is measured by separating out assets representing securities and loans. Funding obtained from central banks is not included in the table below. ➤TABLE 96: MLT SECURED WHOLESALE FUNDING In millions of euros 31 December 2024 31 December 2023 Collateral used(1) Funding raised(2) Collateral used(1) Funding raised(2) Loans and receivables 15,843 13,646 17,671 15,524 Securities TOTAL 15,843 13,646 17,671 15,524 Amounts gross of haircuts. Amounts net of haircuts. MLT secured wholesale funding (outside of monetary policy) represents 5.5% of total MLT wholesale funding in 2024 (7.1% in 2023). The Bank carefully manages its proportion of secured funding and the associated overcollateralisation in order to protect creditors holding unsecured debt. Covered bonds and securitisation programmes are the main sources of the Group’s secured financing. On average, covered bonds are collateralised by 116% and securitisation programmes by 113%. Medium- to long-term liquidity position [Audited] The medium-to long-term liquidity positions are measured regularly at Group level by entity and by currency to evaluate the medium-to long-term resources and uses. To this end, each balance sheet item is given a maturity in an economic approach using models and conventions offered by ALM Treasury and reviewed by the RISK Function, or a regulatory approach by applying standardised weightings of the Net Stable Funding Ratio (NSFR). For example, despite their immediate availability, the current accounts of retail customers and those linked with corporates’ cash management activities always remain highly stable, even through the most severe financial crises, thus constituting stable medium- to long-term funding sources in both an economic and a regulatory approach. Stress tests and liquidity reserve [Audited] Liquidity stress tests are performed regularly on various maturities (one day to twelve months) based on market factors and/or factors specific to the Group and using different scenarios: idiosyncratic (i.e. specific to BNP Paribas), systemic crisis (affecting financial institutions), and combined crisis scenarios. For each crisis scenario considered, borrowings and liabilities are expected to only partially renew, while loan amortisations are expected to be replaced by new loans to protect the commercial franchise, off-balance sheet financing commitments are expected to be used, and market assets are expected to lose their market liquidity. Commitment renewal and utilisation are differentiated in intensity and in time, based on client type (individuals, small and medium enterprises, corporates, financial institutions, etc.) and/or the type of underlying for secured borrowings and loans (repos/reverse repos). Stress scenarios also cover calls for additional collateral (e.g. increased margin calls for collateralised derivatives, impact of “rating trigger” clauses). The liquidity reserve consists of Group assets held by ALM Treasury and the capital market businesses. The liquidity reserve comprises: deposits with central banks; available assets that can be immediately sold on the market or through repurchase agreements (bonds or shares); available securities and receivables that can be refinanced with central banks (e.g. through securitisation, transforming less liquid assets into liquid or available assets) (see section 5.5 Proprietary Securitisation (originator)). The global liquidity reserve (counterbalancing capacity) is calculated net of the payment systems’ intraday needs and in keeping with prudential rules, in particular US rules, under which certain liquid assets are only recognised as available after a certain time period. Transferability restrictions are also taken into consideration in the calculation of the Group’s liquidity reserve. These restrictions may stem from local regulations which limit transfers between entities of a group, non-convertible currencies or jurisdictions with foreign exchange control. The table below shows its trends. ➤TABLE 97: BREAKDOWN OF GLOBAL LIQUIDITY RESERVE (COUNTERBALANCING CAPACITY) In millions of euros Average 2024 31 December 2024 31 December 2023 Total eligible assets 601,247 607,240 618,359 Utilisations (125,676) (119,989) (138,791) Transferability (5,980) (7,300) (5,700) GLOBAL LIQUIDITY RESERVE 469,592 479,944 473,867 Of which liquid assets meeting prudential regulation requirements (HQLA) 380,615 384,600 402,700 Of which other liquid assets 88,992 95,344 71,167 The Group’s liquidity reserve stood at EUR 479.9 billion at end-2024, of which EUR 76.4 billion sterilising very short-term wholesale funding. The Group’s liquidity reserve at 31 December 2024 increased by EUR 6.0 billion compared to end-2023. Regulatory liquidity ratios Scope of application The prudential liquidity scope defined by the BNP Paribas Group for monitoring and overseeing liquidity ratios on a consolidated basis is the one defined for its capital ratio adequacy, with the exception of jointly controlled entities which are consolidated under the equity method in the prudential liquidity scope (see Scope of application in section 5.2 Capital management and capital adequacy). Liquidity Coverage Ratio (LCR) The 30-day Liquidity Coverage Ratio (LCR) came into force on 1 October 2015 setting the minimum coverage ratio for net cash outflows over a one-month time horizon, in a crisis situation, at 100% from 1 January 2018. The Group measures its liquidity requirements in accordance with the requirements of the Delegated Act adopted by the European Commission in January 2015, and has adapted its management process in keeping with this regulation. The management indicators for the businesses’ funding needs and the internal pricing terms therefore reflect the standardised assumptions set by the LCR and allow the Group to monitor compliance with this requirement. The Group’s LCR for the period ending 31 December 2024 stood at 137%, versus 148% at 31 December 2023. ➤TABLE 98: SHORT-TERM LIQUIDITY RATIO (LCR)(1) – ITEMISED (EU LIQ1) a b c d e f g h In millions of euros Unweighted value Weighted value 31 December 2024 30 September 2024 30 June 2024 31 March 2024 31 December 2024 30 September 2024 30 June 2024 31 March 2024 Number of data points used in the calculation of averages 12 12 12 12 12 12 12 12 HIGH QUALITY LIQUID ASSETS (HQLA) 1 TOTAL HIGH QUALITY LIQUID ASSETS (HQLA) 380,615 382,064 385,811 397,582 CASH OUTFLOWS 2 Retail deposits (including small businesses) 429,378 425,766 423,297 422,446 30,570 30,470 30,519 30,687 3 Of which stable deposits 242,499 243,071 244,092 245,985 12,125 12,154 12,205 12,299 4 Of which less stable deposits 157,758 156,827 157,041 157,979 18,425 18,281 18,264 18,326 5 Unsecured non-retail funding 487,792 480,243 478,322 479,145 223,291 217,459 215,524 215,823 6 Of which operational deposits 163,779 163,253 162,853 163,111 40,341 40,188 40,096 40,188 7 Of which non-operational deposits 304,030 300,159 300,349 302,508 162,968 160,439 160,309 162,109 8 Of which unsecured debt 19,983 16,831 15,120 13,526 19,983 16,831 15,120 13,526 9 Secured non-retail funding (of which repos) 115,623 107,576 101,733 97,444 10 Additional requirements 386,288 384,223 385,177 385,516 101,840 102,929 104,000 104,181 11 Of which outflows related to derivative exposures and other collateral requirements 48,018 49,010 48,864 48,974 46,070 47,065 47,144 47,614 12 Of which outflows on secured debt 3,536 5,289 6,949 7,196 3,536 5,289 6,949 7,196 13 Of which credit and liquidity facilities 334,734 329,925 329,363 329,345 52,234 50,576 49,906 49,370 14 Other contractual funding obligations 62,134 60,823 60,846 60,821 62,134 60,823 60,846 60,821 15 Other contingent funding obligations 153,308 150,528 146,756 142,122 10,709 9,358 8,374 7,149 16 TOTAL CASH OUTFLOWS 544,168 528,616 520,995 516,104 CASH INFLOWS 17 Secured lending (of which reverse repos) 505,686 493,229 486,032 471,994 114,827 108,518 103,320 96,369 18 Inflows from fully performing exposures 88,261 88,522 87,436 87,138 70,046 69,883 68,889 68,448 19 Other cash inflows 80,388 74,853 73,727 71,585 68,142 62,651 62,527 60,720 20 TOTAL CASH INFLOWS 674,335 656,604 647,194 630,717 253,015 241,052 234,735 225,538 EU-20c Inflows subject to 75% cap 493,284 479,282 469,567 454,620 253,015 241,052 234,735 225,538 21 LIQUIDITY BUFFER 380,615 382,064 385,811 397,582 22 TOTAL NET CASH OUTFLOWS 291,153 287,565 286,260 290,566 23 LIQUIDITY COVERAGE RATIO (%) 130.80% 132.96% 134.85% 136.92% The data presented in this table are calculated as the rolling average over the twelve latest month-end values. Qualitative information on LCR (EU LIQ-B) The Group’s rolling month-end average LCR over the last 12 months stands at 131%, which corresponds to a liquidity surplus of EUR 89 billion compared with the regulatory requirement. The Group ratio averaged between 131% and 137%. After application of the regulatory haircuts (weighted values), the Group’s rolling month-end average liquid assets over the last 12 months amount to EUR 381 billion, and mainly consist of central bank deposits (43% at the end of December) and government and sovereign bonds (57%). Rolling month-end average cash outflows over the last 12 months under the thirty-day liquidity stress scenario amount to EUR 291 billion, a large part of which corresponds to thirty-day deposit outflow assumptions of EUR 234 billion. Reciprocally, cash inflows on loans under the thirty-day liquidity regulatory stress scenario amount to EUR 70 billion. Cash flows on financing transactions and collateralised loans, representing repurchase agreements and securities exchanges, amounted to EUR 1 billion in net outflows . Flows linked to derivative instruments and regulatory stress tests record net outflows of EUR 14 billion after netting of cash outflows (EUR 46 billion) and inflows (EUR 32 billion). Lastly, the rolling month-end average drawdown assumptions on financing commitments over the last 12 months amounted to EUR 52 billion. There is no excessive imbalance on any significant currency. Net Stable Funding Ratio (NSFR) Regulation (EU) No. 2019/876 has introduced a one-year structural liquidity ratio (Net Stable Funding Ratio – NSFR), subject to a 100% minimum requirement since 28 June 2021. This standardised ratio aims to ensure that assets and financing commitments considered over one year are financed by resources over one year. At 31 December 2024, the Group complies with the minimum NSFR requirement with a level of 111.75%. ➤TABLE 99: NET STABLE FUNDING RATIO (EU LIQ2) a b c d e In millions of euros 31 December 2024 Unweighted value by residual maturity Weighted value No maturity < 6 months 6 months to < 1 year ≥ 1 year Available stable funding (ASF) Items 1 Capital items and instruments 125,907 201 22,754 148,661 2 Own funds 125,907 201 20,481 146,388 3 Other capital instruments 2,273 2,273 4 Retail deposits 399,613 7,307 8,353 386,054 5 Stable deposits 227,418 2,042 2,097 220,084 6 Less stable deposits 172,195 5,264 6,256 165,970 7 Wholesale funding 1,041,003 59,145 183,892 472,065 8 Operational deposits 169,960 - 1,462 86,442 9 Other wholesale funding 871,043 59,145 182,430 385,623 10 Interdependent liabilities 19,692 25,552 - 11 Other liabilities 47,246 140,277 2,467 33,138 34,372 12 NSFR derivative liabilities 47,246 13 All other liabilities and capital instruments not included in the above categories 140,277 2,467 33,138 34,372 14 TOTAL AVAILABLE STABLE FUNDING (ASF) 1,041,153 Required stable funding (RSF) Items 15 Total high-quality liquid assets (HQLA) 46,606 15a Assets encumbered for a residual maturity of one year or more in a cover pool 192 189 8,207 7,299 16 Deposits held at other financial institutions for operational purposes 723 - - 362 17 Performing loans and securities: 442,706 94,364 655,235 662,537 18 Performing securities financing transactions with financial customers collateralised by Level 1 HQLA subject to 0% haircut 109,260 7,292 4,154 12,311 19 Performing securities financing transactions with financial customer collateralised by other assets and loans and advances to financial institutions 140,331 17,036 13,873 34,384 20 Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, and PSEs, of which 117,442 52,065 360,519 391,804 21 With a risk weight of less than or equal to 35% under the Basel Standardised Approach for credit risk 22 Performing residential mortgages, of which 4,241 5,132 173,979 117,873 23 With a risk weight of less than or equal to 35% under the Basel Standardised Approach for credit risk 4,241 5,132 173,979 117,873 24 Other loans and securities that are not in default and do not qualify as HQLA, including exchange-traded equities and trade finance on-balance sheet products 71,431 12,839 102,710 106,165 25 Interdependent assets 19,692 25,552 - 26 Other assets 155,683 9,325 165,538 189,799 27 Physical traded commodities 6,596 5,606 28 Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs 1,026 23 38,189 33,353 29 NSFR derivative assets 1,600 1,600 30 NSFR derivative liabilities before deduction of variation margin posted 93,767 4,688 31 All other assets not included in the above categories 59,290 9,303 120,753 144,552 32 Off-balance sheet items 484,196 7,453 29,690 25,037 33 TOTAL REQUIRED STABLE FUNDING (RSF) 931,639 34 NET STABLE FUNDING RATIO (%) 111.75% a b c d e In millions of euros 31 December 2023 Unweighted value by residual maturity Weighted value No maturity < 6 months 6 months to < 1 year ≥ 1 year Available stable funding (ASF) Items 1 Capital items and instruments 119,821 143 19,041 138,862 2 Own funds 119,821 143 17,332 137,153 3 Other capital instruments 1,708 1,708 4 Retail deposits 394,964 3,744 5,476 375,800 5 Stable deposits 228,935 777 977 219,203 6 Less stable deposits 166,030 2,967 4,500 156,597 7 Wholesale funding 998,486 52,212 162,771 440,539 8 Operational deposits 165,695 12 804 83,658 9 Other wholesale funding 832,791 52,200 161,967 356,881 10 Interdependent liabilities 17,926 25,778 11 Other liabilities 61,763 168,967 1,095 28,373 28,920 12 NSFR derivative liabilities 61,763 13 All other liabilities and capital instruments not included in the above categories 168,967 1,095 28,373 28,920 14 TOTAL AVAILABLE STABLE FUNDING (ASF) 984,120 Required stable funding (RSF) Items 15 Total high-quality liquid assets (HQLA) 29,226 15a Assets encumbered for a residual maturity of one year or more in a cover pool 254 250 10,413 9,279 16 Deposits held at other financial institutions for operational purposes 6 1 1 5 17 Performing loans and securities: 433,499 93,040 642,326 650,883 18 Performing securities financing transactions with financial customers collateralised by Level 1 HQLA subject to 0% haircut 113,944 4,910 5,396 13,040 19 Performing securities financing transactions with financial customer collateralised by other assets and loans and advances to financial institutions 132,919 12,305 9,982 27,290 20 Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, and PSEs, of which 120,158 59,023 372,265 406,659 21 With a risk weight of less than or equal to 35% under the Basel Standardised Approach for credit risk 22 Performing residential mortgages, of which 5,078 5,143 172,478 117,581 23 With a risk weight of less than or equal to 35% under the Basel Standardised Approach for credit risk 5,078 5,143 172,478 117,581 24 Other loans and securities that are not in default and do not qualify as HQLA, including exchange-traded equities and trade finance on-balance sheet products 61,400 11,659 82,205 86,313 25 Interdependent assets 17,926 25,778 26 Other assets 27 Physical traded commodities 10,110 8,594 28 Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs 30,767 26,152 29 NSFR derivative assets 30 NSFR derivative liabilities before deduction of variation margin posted 103,619 5,181 31 All other assets not included in the above categories 47,661 2,996 79,755 95,927 32 Off-balance sheet items 431,582 18,425 38,209 23,731 33 TOTAL REQUIRED STABLE FUNDING (RSF) 848,977 34 NET STABLE FUNDING RATIO (%) 115.92% Schedule of the bank’s prudential balance sheet This schedule presents cash flows according to contractual payment dates within the prudential scope (see Scope of application in section 5.2 Capital management and capital adequacy) in line with the rules defined for the liquidity ratio. The securities in the trading book listed at fair value through profit or loss are presented with “not determined” maturities, as the securities’ contractual maturity is not representative of the Group’s planned holding period. Likewise, derivative financial instruments listed at fair value through profit or loss, derivatives used for hedging purposes and remeasurement adjustments on interest-rate risk hedged portfolios are presented with “not determined” maturities. In the following table and in the event of an early repayment option, the rules applied are the most conservative: if the option is at the hands of both parties, the repayment date is the next contractual date for the exercise of the option; if the option is at the hands of the counterparty, the date for the repayment of assets is the date of final maturity while that used for liabilities is the next contractual date for the exercise of the option; if the option is at the hands of the Group, the repayment date is the next contractual date for the exercise of the option, for both assets and liabilities; in the case of subordinated debt, the redemption date used is the final maturity date. ➤TABLE 100: CONTRACTUAL MATURITIES OF THE PRUDENTIAL BALANCE SHEET (EU CR1-A) [Audited] In millions of euros 31 December 2024 Not determined Overnight or demand Up to 1 month (excl. Overnight) 1 to 3 months 3 months to 1 year 1 to 5 years More than 5 years TOTAL ASSETS Cash and amounts due from central banks 182,504 182,504 Financial instruments at fair value through profit and loss 591,250 42,333 97,130 30,911 28,187 23,440 4,768 818,022 Securities 267,920 267,920 Loans and repurchase agreements 42,333 97,130 30,911 28,187 23,440 4,768 226,771 Derivative financial instruments 323,331 323,331 Derivatives used for hedging purposes 20,930 20,930 Financial assets at fair value through equity 1,637 140 1,800 1,304 3,728 28,932 38,943 76,484 Debt securities 27 140 1,800 1,304 3,728 28,932 38,943 74,874 Equity securities 1,610 1,610 Financial assets at amortised cost 146 42,076 80,712 88,862 156,057 408,647 313,213 1,089,713 Loans and advances to credit institutions 7,455 11,806 5,173 4,772 1,539 648 31,393 Loans and advances to customers 34,472 65,560 78,389 130,328 344,865 257,875 911,489 Debt securities 146 148 3,347 5,301 20,957 62,242 54,690 146,830 Remeasurement adjustment on interest rate risk hedged portfolios (758) (758) Financial assets 613,205 267,054 179,643 121,078 187,972 461,019 356,924 2,186,895 Other assets 178,054 8,916 9,421 5,503 11,061 27,537 5,435 245,928 TOTAL ASSETS 791,259 275,970 189,064 126,581 199,032 488,556 362,359 2,432,823 of which Loans and advances 75,718 174,496 114,473 163,287 369,845 263,292 1,161,111 of which Debt securities 137,902 289 5,147 6,605 24,684 91,174 93,632 359,434 LIABILITIES Deposit from central banks 3,366 Financial instruments at fair value through profit and loss 382,202 36,489 194,996 50,812 45,095 59,779 22,299 382,202 Securities 79,958 79,958 Deposits and repurchase agreements 36,489 189,196 43,873 21,992 11,236 2,091 Issued debt securities 5,800 6,939 23,102 48,543 20,207 Derivative financial instruments 302,243 302,243 Derivatives used for hedging purposes 36,823 36,823 Financial liabilities at amortised cost 712,068 192,246 169,571 110,293 86,230 60,281 Deposits from credit institutions 10,265 11,656 27,436 10,360 3,035 314 Deposits from customers 701,803 170,597 97,292 54,130 10,103 2,741 Debt securities 9,986 43,318 44,207 66,612 36,095 Subordinated debt 6 1,525 1,595 6,480 21,131 Remeasurement adjustment on interest rate risk hedged portfolios (10,696) (10,696) Financial liabilities 408,329 751,923 387,242 220,383 155,388 146,009 82,580 408,329 Other liabilities 235,115 4,644 15,332 3,710 2,523 1,290 18,355 235,115 TOTAL LIABILITIES AND EQUITY 643,444 756,567 402,574 224,093 157,911 147,298 100,934 643,444 In millions of euros 31 December 2023 Not determined Overnight or demand Up to 1 month (excl. Overnight) 1 to 3 months 3 months to 1 year 1 to 5 years More than 5 years TOTAL ASSETS Cash and amounts due from central banks 288,270 288,270 Financial instruments at fair value through profit and loss 504,881 65,049 86,442 30,200 24,195 16,466 4,686 731,919 Securities 212,127 212,127 Loans and repurchase agreements 65,049 86,442 30,200 24,195 16,466 4,686 227,038 Derivative financial instruments 292,754 292,754 Derivatives used for hedging purposes 21,814 21,814 Financial assets at fair value through equity 2,301 81 1,571 1,418 3,440 16,706 29,725 55,242 Debt securities 26 81 1,571 1,418 3,440 16,706 29,725 52,967 Equity securities 2,275 2,275 Financial assets at amortised cost 150 40,769 69,096 81,123 149,178 398,239 298,489 1,037,042 Loans and advances to credit institutions 7,058 8,971 4,672 2,496 496 560 24,255 Loans and advances to customers(1) 33,157 58,033 71,940 126,098 349,672 252,907 891,806 Debt securities 150 553 2,092 4,511 20,584 48,071 45,021 120,982 Remeasurement adjustment on interest rate risk hedged portfolios (2,661) (2,661) Financial assets 526,485 394,168 157,108 112,741 176,814 431,410 332,900 2,131,627 Other assets 174,813 9,772 8,581 1,568 1,521 766 5,575 202,596 TOTAL ASSETS 701,298 403,941 165,690 114,309 178,335 432,176 338,475 2,334,224 of which Loans and advances(1) - 98,125 153,446 106,812 152,789 366,634 258,154 1,135,960 of which Debt securities 133,195 635 3,662 5,929 24,024 64,777 74,746 306,969 LIABILITIES Deposit from central banks 3,374 3,374 Financial instruments at fair value through profit and loss 384,357 35,669 161,410 52,685 36,213 49,455 21,783 741,573 Securities 104,910 104,910 Deposits and repurchase agreements 35,451 157,221 47,554 20,074 11,907 1,667 273,873 Issued debt securities 218 4,190 5,131 16,140 37,549 20,116 83,343 Derivative financial instruments 279,446 279,446 Derivatives used for hedging purposes 37,911 37,911 Financial liabilities at amortised cost 701,969 169,081 170,762 115,776 75,661 53,852 1,287,102 Deposits from credit institutions 14,293 4,219 53,913 10,944 2,154 67 85,590 Deposits from customers 687,569 153,167 83,997 57,565 7,978 3,598 993,875 Debt securities 107 11,647 32,852 46,140 57,453 36,473 184,672 Subordinated debt 48 1,127 8,076 13,715 22,965 Remeasurement adjustment on interest rate risk hedged portfolios (14,175) (14,175) Financial liabilities 408,093 741,012 330,491 223,447 151,989 125,116 75,635 2,055,785 Other non-financial liabilities 229,199 3,965 22,483 2,466 1,903 585 17,838 278,439 TOTAL LIABILITIES AND EQUITY 637,292 744,977 352,974 225,914 153,893 125,701 93,473 2,334,224 Including the reallocation by maturity buckets of the main Prime Brokerage oustandings, with no impact on total oustandings of Loans and advances to customers and Deposits from customers. For liquidity risk management, the above contractual schedule is supplemented by economic analyses taking into account customer behaviour or market liquidity of certain assets (e.g. securities), under normal conditions and stress situations. To this end, the Group uses a set of tools to anticipate and manage its economic liquidity, in particular as previously stated: medium and long-term liquidity situations; stress tests and the liquidity reserve; monitoring regulatory liquidity ratios. The following table presents the details of Table 100: Contractual maturities of the prudential balance sheet for equity instruments and debt securities issued by the Group in the medium and long term, excluding early redemption options. ➤TABLE 101: CONTRACTUAL MATURITIES OF CAPITAL INSTRUMENTS AND MEDIUM LONG TERM DEBT SECURITIES IN THE PRUDENTIAL SCOPE In millions of euros TOTAL 31 December 2024 2025 2026 2027 2028 2029 2030-2034 Beyond 2034 Perpetual Amount(1) of liabilities eligible to Additional Tier 1 15,872 - - - - - - - 15,872 Subordinated debt 3,851 - - - - - - - 3,851 Preferred shares and Undated super subordinated notes 12,021 - - - - - - - 12,021 Amount(1) of debt eligible to Tier 2 25,416 3,069 2,697 2,666 177 - 11,581 5,226 - Subordinated debt 25,416 3,069 2,697 2,666 177 - 11,581 5,226 - of which subordinated debt at amortised cost 25,398 3,069 2,697 2,666 177 11,581 5,208 of which subordinated debt at fair value through profit and loss 18 18 Amount(1) of debt not eligible to prudential own funds 2,472 228 - - - - 621 - 1,623 Unsecured Senior debt 195,073 33,465 28,830 25,753 25,085 27,408 43,316 11,216 - Non-preferred senior debt 73,240 5,383 6,776 11,409 12,072 8,604 22,747 6,249 - of which non preferred senior debt at amortised cost 68,744 5,358 6,776 11,409 12,072 8,583 22,346 2,200 - of which non preferred senior debt at fair value through profit and loss 4,496 25 21 401 4,049 - Preferred senior debt 121,833 28,082 22,054 14,344 13,013 18,804 20,569 4,967 - of which preferred senior debt at amortised cost 32,264 2,313 5,587 2,991 4,123 7,159 9,930 161 of which preferred senior debt at fair value through profit and loss 89,569 25,769 16,467 11,353 8,890 11,645 10,639 4,806 - Secured Senior debt 13,350 3,339 2,288 1,042 4,514 281 1,610 276 - Accounting value before any prudential adjustments. Tables providing details of instruments recognised as capital (CET1, AT1 and Tier 2), as well as debt instruments eligible for TLAC ratio (senior non-preferred debt), as required (EU CCA) by implementing Regulation (EU) No. 2021/637, are available in the BNP Paribas Debt section of the Investor Relations website: https://invest.bnpparibas/recherche/dette/documents/informations-sur-les programmes-et-les-emissions . Some debt instruments shown above have an early redemption (“call”) option exercisable by the Group (Issuer). The following table shows the maturity schedule for debt and other subordinated liabilities by considering, where appropriate, the next date on which the option may be exercised (“call date”). Calls may only be exercised after authorisation from the regulator. The maturity dates shown hereafter are purely contractual and do not foresee the Group’s call policy. ➤TABLE 102: ECONOMIC(1) MATURITIES OF SUBORDINATED DEBT (PRUDENTIAL PERIMETER) In millions of euros TOTAL 31 December 2024 2025 2026 2027 2028 2029 2030-2034 Beyond 2034 Perpetual Amount(2) of liabilities eligible to Additional Tier 1 15,872 1,347 - 2,681 2,605 2,952 6,287 - - Subordinated debt 3,851 - - - 1,449 - 2,402 - - Preferred shares and undated super subordinated notes 12,021 1,347 - 2,681 1,157 2,952 3,885 Amount(2) of debt eligible to Tier 2 25,416 3,767 4,586 5,610 2,498 2,420 5,377 1,157 - Subordinated debt 25,416 3,767 4,586 5,610 2,498 2,420 5,377 1,157 of which subordinated debt at amortised cost 25,398 3,767 4,586 5,610 2,498 2,420 5,377 1,139 of which subordinated debt at fair value through profit and loss 18 - 18 Amount(2) of debt not eligible to prudential own funds 2,472 228 - - 71 621 - - 1,553 The economic maturity is defined as either the contractual maturity or the next call date when the instrument has an early redemption option. Accounting value before any prudential adjustments. Encumbrance of group assets and assets received by the Group Assets on the balance sheet and financial instruments received in guarantee used as pledges, guarantees or enhancement of a Group transaction and which cannot be freely withdrawn are considered to be encumbered. The encumbrance of assets is central to the Group’s businesses and has two aims: to trade in derivatives or repurchase agreements, including the payment of margin calls to secure transactions (see paragraphs on Bilateral initial margin exchange and Counterparty credit risk management in section 5.6 Counterparty credit risk); to obtain funding, by issuing secured debt, in particular asset-backed securities (see Proprietary securitisation (originator) in section 5.5 Securitisation in the banking book), covered bonds (see paragraph on MLT secured wholesale funding in this section) or by participating in monetary policy, thus diversifying and optimising its funding structure. Thus, the encumbrance of assets can be distinguished from the transfer of assets shown in note 4.p Transfers of financial assets to the consolidated financial statements insofar as it only comprises the following transactions: securities recognised in the Bank’s balance sheet, which have been sold or loaned, on a temporary basis, by the Bank under repurchase agreements (repos and securities lending) but which are not derecognised in the Bank’s balance sheet once the transaction is complete; assets securitised by the Bank (within efficient and inefficient programmes), which continue to be recognised in the Bank’s balance sheet under the applicable consolidation rules contained in the accounting standard, to hedge the issue of asset-backed securities. Based on the definitions above, guarantees given to clearing houses or central banks in the context of monetary policy, along with asset portfolios hedging the issue of secured bonds, fall within the scope of the encumbrance of assets but do not fall within the scope of asset transfers. The same applies to repurchase agreements (repos) and loans in the case of securities that are not recognised in the Bank’s balance sheet (because they were previously received under reverse repos and securities borrowing) and to securities received under repurchase agreements (reverse repos) and securities borrowings. Encumbrance of assets and collateral received The monitoring of encumbered assets and assets received is carried out within the prudential scope defined in the section Scope of application in section 5.2 Capital management and capital adequacy. The amounts of encumbered and unencumbered assets and collateral received are shown in the following table according to the provisions of Execution Regulation (EU) 2021/637. Thus, all data presented in the table are calculated as the median of the four quarter ends of the corresponding year. Each total line is thus calculated as the median of the four values of the total at each end of quarter, not as the sum of the median values for the year. The median ratio of encumbered assets relative to Group balance sheet assets was 14.61% in 2024, compared to 14.63% in 2023. ➤TABLE 103: ENCUMBRED AND UNENCUMBERED ASSETS ➤Encumbered and unencumbered assets 010 030 040 050 060 080 090 100 In millions of euros Four end of quarter median values in 2024 Carrying amount of encumbered assets Fair value of encumbered assets Carrying amount of unencumbered assets Fair value of unencumbered assets Total of which HQLA and EHQLA(1) Total of which HQLA and EHQLA(1) Total of which HQLA and EHQLA(1) Total of which HQLA and EHQLA(1) 010 ASSETS 357,308 173,265 2,088,842 396,935 030 Equity instruments 67,562 46,878 68,441 29,116 040 Debt securities 157,208 122,634 157,208 122,634 217,916 196,047 217,916 196,047 050 of which covered bonds 3,043 2,494 3,043 2,494 4,026 3,541 4,026 3,541 060 of which asset-backed securities 1,929 416 1,929 416 7,861 375 7,861 375 070 of which issued by general governments 116,925 115,483 116,925 115,483 168,628 167,438 168,628 167,438 080 of which issued by financial corporations 27,833 4,043 27,833 4,043 37,806 7,062 37,806 7,062 090 of which issued by non-financial corporations 12,888 2,241 12,888 2,241 5,224 529 5,224 529 120 Other assets 131,603 1,802,238 172,651 121 of which: Loans on demand 194,519 172,651 122 of which: Loans and advances other than loans on demand 41,914 1,170,573 123 of which: Other assets 87,796 444,664 Assets of extremely high liquidity and credit quality. 010 030 040 050 060 080 090 100 In millions of euros Four end of quarter median values in 2023 Carrying amount of encumbered assets Fair value of encumbered assets Carrying amount of unencumbered assets Fair value of unencumbered assets Total of which HQLA and EHQLA(1) Total of which HQLA and EHQLA(1) Total of which HQLA and EHQLA(1) Total of which HQLA and EHQLA(1) 010 ASSETS 354,106 135,540 2,067,026 464,382 030 Equity instruments 24,694 16,253 61,759 22,956 040 Debt securities 148,995 119,481 148,995 119,481 175,765 154,098 175,765 154,098 050 of which covered bonds 3,458 2,839 3,458 2,839 2,975 2,723 2,975 2,723 060 of which asset-backed securities 867 558 867 558 7,615 3 7,615 3 070 of which issued by general governments 112,222 110,833 112,222 110,833 137,469 135,332 137,469 135,332 080 of which issued by financial corporations 27,861 4,093 27,861 4,093 24,982 6,177 24,982 6,177 090 of which issued by non-financial corporations 8,999 1,779 8,999 1,779 8,973 1,119 8,973 1,119 120 Other assets 178,102 1,838,784 283,351 121 of which: Loans on demand 301,377 283,351 122 of which: Loans and advances other than loans on demand 85,622 1,079,703 123 of which: Other assets 91,909 434,107 Assets of extremely high liquidity and credit quality. The other encumbered assets mainly comprised loans and advances (often used when issuing asset-backed securities issues or guaranteed bonds) and amount to EUR 42 billion. The balance, grouped under line 123 “of which other assets”, comprises guarantee deposits and bank guarantees paid in respect of derivatives (recognised in the Accrued income and other assets category) amounting to EUR 88 billion. The other unencumbered assets amount to EUR 445 billion. They mainly include intangible assets, goodwill, current and deferred tax assets, and assets ineligible for financing programmes under normal business conditions. ➤Encumbered and unencumbered collateral received 010 030 040 060 010 030 040 060 In millions of euros Four end of quarter median values in 2024 Four end of quarter median values in 2023 Fair value of encumbered collateral received or own(1) debt securities issued Fair value of collateral received or own(1) debt securities issued available for encumbrance Fair value of encumbered collateral received or own(1) debt securities issued Fair value of collateral received or own(1) debt securities issued available for encumbrance Total of which HQLA and EHQLA(2) Total of which HQLA and EHQLA(2) Total of which HQLA and EHQLA(2) Total of which HQLA and EHQLA(2) 130 COLLATERAL RECEIVED 623,666 489,121 91,556 50,235 548,698 450,565 72,634 40,558 140 Loans on demand 150 Equity instruments 164,366 110,238 17,262 4,066 139,591 97,423 12,123 4,620 160 Debt securities 454,326 383,856 74,098 44,902 412,865 356,143 61,156 37,553 170 of which covered bonds 12,831 11,442 1,996 1,684 7,548 5,293 1,875 1,354 180 of which asset-backed securities 6,667 258 5,897 1,460 5,871 218 6,846 513 190 of which issued by general governments 367,584 365,807 30,810 29,755 346,412 345,059 24,316 23,798 200 of which issued by financial corporations 43,496 12,878 14,169 2,994 30,969 7,257 13,383 2,277 210 of which issued by non-financial corporations 46,736 6,988 24,265 8,103 36,760 5,440 15,899 6,039 220 Loans and advances other than loans on demand 230 Other collateral received 240 OWN(1) DEBT SECURITIES ISSUED OTHER THAN OWN COVERED BONDS OR ASSET-BACKED SECURITIES - - - - - - - - 241 OWN(1) COVERED BONDS AND ASSET-BACKED SECURITIES AND NOT YET PLEDGED 92,610 - 68,876 - 250 TOTAL ASSETS, COLLATERAL PLEDGED AND OWN(2) DEBT SECURITIES ISSUED 975,104 665,510 915,448 586,106 Financial assets issued by a Group entity and underwritten by the Group. Assets of extremely high liquidity and credit quality. The amount of own collateralised bonds and asset-backed securities (ABS and collateralised bonds) without collateral amounted to EUR 93 billion (EUR 92 billion available and EUR 1 billion not available) for an outstanding amount of underlying assets of EUR 113 billion. ➤Encumbered assets/collateral received and associated liabilities 010 030 010 030 In millions of euros Four end of quarter median values in 2024 Four end of quarter median values in 2023 Matching liabilities, contingent liabilities or securities lent Assets, collateral received and own debt securities issued(1) Matching liabilities, contingent liabilities or securities lent Assets, collateral received and own debt securities issued(1) 010 CARRYING AMOUNT OF SELECTED FINANCIAL LIABILITIES 824,981 975,104 766,746 915,448 011 of which: Repurchase agreements 381,821 402,850 346,474 361,885 012 of which: Collateralised deposits other than repurchase agreements 113,241 113,431 101,560 110,923 013 of which: Debt securities issued 35,702 37,764 36,371 37,903 014 of which: Other sources of encumbrance 322,174 447,204 276,463 393,876 Other than encumbered secured bonds and securities backed by encumbered assets. Encumbered assets, collateral received and own fixed-income securities are mainly issued by general government entities, raising EUR 490 billion and make it possible to obtain EUR 455 billion of financing. In median data as at 31 December 2024, Fixed-Income Credit and Commodities and Prime Solutions & Financing businesses as well as Securities Services represented 82% of the Group’s encumbered assets (EUR 292 billion) and 100% of the collateral received (EUR 623 billion), i.e. 93% of the encumbrance (EUR 907 billion). These are mainly repos and derivatives activities. The other encumbered assets are mainly held through financing activities of ALM Treasury. Encumbered assets and received and encumbered collateral are denominated mainly in euros or dollars (for a median amount of 33% and 49%, respectively, over the year). 5.9Operational risk Operational risk is the risk of incurring a loss due to inadequate or failed internal processes, or due to external events, whether deliberate, accidental or natural occurrences. Management of operational risk is based on an analysis of the “cause – event – consequences” chain. Internal processes giving rise to operational risk may involve employees and/or IT systems. External events include, but are not limited to floods, fire, earthquakes and terrorist attacks. Credit or market events such as default or fluctuations in value do not fall within the scope of operational risk. Operational risk encompasses fraud, Human Resources risks, legal risks, non-compliance risks, tax risks, information system risks, conduct risks (risks related to the provision of inappropriate financial services), risk related to failures in operating processes, including loan procedures or model risks, as well as any potential financial implications resulting from the management of reputation risk. Regulatory framework Operational and non-compliance risks come under a specific regulatory framework: Directive 36/2013/UE (CRD 4) and Regulation (EU) No. 575/2013 (CRR) governing prudential supervision and the methods for calculating the amount of capital requirements to cover the operational risk; French Ministry of Finance Decree of 3 November 2014, which defines the roles and responsibilities of the RISK Function (covering all types of risks) and an internal control system which ensures the efficiency and quality of the Bank’s internal operations, the reliability of internal and external information, the security of transactions, as well as compliance with applicable laws, regulations and internal policies. Banking regulations divide operational loss events into seven categories: (i) internal fraud, (ii) external fraud, (iii) employment practices and safety (such as an anomaly arising from recruitment management), (iv) clients, products and business practices (such as product defects, mis-selling, professional misconduct, etc.), (v) damage to physical assets, (vi) business disruption and system failures, (vii) execution, delivery and process management (data entry error, error in documentation, etc.). Effective management of non-compliance risk aims to ensure compliance with applicable laws, regulations, rules of ethics and instructions, protect the Group’s reputation, that of its investors and that of its customers, ensure ethical professional behaviour, prevent conflicts of interest, protect customers’ interests and market integrity, fight against money laundering, corruption and the financing of terrorist activities, as well as ensure compliance with financial embargoes. Organisation and oversight mechanism Key players and governance The general internal control system at BNP Paribas underpins management of operational, non-compliance and reputation risks as part of its dual-level system to ensure periodic and permanent control. Within BNP Paribas, the control functions providing the second line of defence are Compliance, RISK and LEGAL. General Inspection provides a third line of defence responsible for periodic controls. These four Group oversight and control functions are organised according to a hierarchical reporting principle by all their teams worldwide, guaranteeing their independence and resource autonomy. The governance of the Group’s internal control system is described in the section Internal control in chapter 2 Corporate governance and internal control. Within the RISK Function, the second line of defence in terms of operational, technological and information protection risks (cybersecurity) is provided by Operational Risk Officers in the operating entities in accordance with the operational risk management system defined and supervised by RISK Operational Risk Management (RISK ORM). The operational risk management and control system for the Group as a whole is structured around a dual-level system with the following participants: on the first level of defence: operational staff, notably the Heads of operating entities, business lines and functions, who are on the front‑line of risk management and implementation of systems to manage these risks; on the second line of defence: the functions exercising second-level control that are responsible for the organisation and proper functioning of the risk management system and its compliance with laws and regulations for their domain of expertise as defined in their Responsibility Charter. These teams are, in particular, responsible for: coordinating, throughout the scope of responsabilities, the definition and implementation of the permanent control and operational risk identification and management system, its standards and methodologies, reporting and related tools; acting as a second pair of eyes, independently of the Heads of operating entities, to scrutinise operational risk factors and the functioning of the operational risk and permanent control system, and issuing warnings, where appropriate. Issues relating to operational risk, permanent control and the emergency plan to ensure business continuity in those situations specified in the regulatory standards are regularly submitted to the Group’s Executive Committee. The Group operating entities and subsidiaries implement this governance structure within their organisations, with the participation of Executive Management. For its part, Compliance is in charge of supervising the non-compliance and reputation risk control system (see section 5.3). Objectives and principles To meet this dual requirement of the management and control of operational risk, BNP Paribas has developed a permanent iterative risk management process based on the following elements: identifying and assessing operational risks; formalisation, implementing and monitoring of the risk mitigation system (procedures, checks and all organisational elements designed to help to control risk, such as segregation of tasks, management of access rights, etc.); producing measurements of known and potential risks and calculating the capital requirement for operational risk; reporting and analysing oversight information relating to operational risk and the permanent control system; managing the system through a governance framework that involves members of management, preparing and monitoring action plans. This system encompasses two major pillars: the identification and assessment of risk and of the control system based on the libraries of risks and controls defined by the Group’s business lines and functions. Each entity must take into consideration those risks and, if necessary, enhance them when assessing the intrinsic and residual risks in accordance with the standard Group scoring grid; the risk management system is underpinned by procedures, standards and generic control plans consistent with the above-mentioned risk libraries, and which each entity must apply, unless an exception is authorised, and enhance according to their own characteristics. Scope and nature of risk reporting and measurement Group Executive Committees, and those of operating entities (business lines, functions and subsidiaries), are tasked with monitoring the management of operational and non-compliance risk and permanent control in the areas falling within their remit, in accordance with the Group’s operational risk framework. The committees validate the quality and consistency of reporting data, examine their risk profile in light of the tolerance levels they have set in keeping with the Group Risk Appetite Statement, and assess the quality of risk control procedures according to their objectives and the risks they incur. They monitor the implementation of risk mitigation techniques. Operational risk management has developed a system of data collection of actual or potential incidents using an approach structured by organisational process and business unit (activities in a country and a single legal entity) focusing on the cause-and-effect chain behind events. This information is used as the basis for risk mitigation and prevention measures. The most significant information is brought to the attention of staff at various levels of the organisation, up to and including executive managers and supervisory bodies, in line with a predefined information reporting process. Specific components linked to operational risk By its nature, operational risk covers numerous areas related with the Group’s usual business activity and is linked to specific risks such as non-compliance, reputation, legal, fiscal and cybersecurity risks which are monitored in specific ways. Non-compliance and reputation risk Definitions Non-compliance risk is defined in French regulations as the risk of legal, administrative or disciplinary sanctions, of significant financial loss or reputational damage that a bank may suffer as a result of failure to comply with national or European laws and regulations, codes of conduct and standards of good practice applicable to banking and financial activities, or instructions given by leaders, particularly in application of guidelines issued by a supervisory body. The non-compliance risk is a sub-category of operational risk. Moreover, certain of its implications can involve more than a purely financial loss and may actually damage the institution’s reputation. Reputation risk is the risk of damaging the Group’s image, the trust placed in a corporation by customers, counterparties, suppliers, employees, shareholders, supervisors and any other stakeholder whose trust is an essential condition for the corporation to carry out its day-to-day operations. Reputation risk is primarily contingent on all the other risks borne by the Group, specifically the effective or potential materialisation of a credit, market risk, an operational, non-compliance, environmental, social or legal risk, as well as any violation of a law, a regulation of the Group’s Code of conduct or procedure. Group organisation Responsibility for controlling the risk of non-compliance lies primarily with the activities and business lines. In this context, and in accordance with international standards and French regulations, Compliance manages the system for monitoring non-compliance risks for the scope of all of the Group’s businesses in France and abroad. The system for managing non-compliance risks is based on a permanent control system, structured around the following axes: general and specific procedures; processes for identifying and assessing risks, monitoring, reporting information and alerts, coordinated to ensure overall consistency and effectiveness; the deployment of risk prevention and detection tools (systems for combating money laundering, the financing of terrorism and corruption, detection of market abuse, etc.); training and awareness-raising initiatives for all Group employees. Reputation risk management is based on the following elements: individual responsibility of employees: the Group’s employees have an essential role in managing reputation risk. Any employee confronted with the actual or potential occurrence of a credit, market or operational risk (including in the area of IT and cybersecurity, a non-compliance, legal or social risk, and/or the violation of a law or regulation, or of the Group’s Code of conduct or procedures), that could lead to a reputation risk for the Group or one of its entities, must communicate, immediately and without delay, his or her concern to his or her line manager or to a more senior manager. This individual responsibility is one of the key elements of the Group’s Code of conduct, which is at the heart of every action and guides all employees in their decisions, at all levels of the organisation. The employee awareness programme also reiterates the responsibility of each individual and guides them, in particular through information on identifying, controlling and managing reputation risk, the Group’s values and its ethics standards; permanent control: identifying and managing reputation risk are part of the objectives of the permanent control system. Implementation of the procedures and recommendations of the periodic control, the results of the controls and reports from the whistleblowing system are closely monitored. Reputation risk is also taken into account in the process for validating exceptional transactions, new businesses, and new products. The Group has procedures for conflicts of interest, market integrity, adequacy and appropriateness of offers to clients, best execution of their orders, anti-money laundering, terrorist financing and corruption, compliance with international sanctions and embargoes, and social and environmental responsibility that, along with the Code of conduct, are conducive to effective management of reputation risk; corporate engagement: the Corporate Engagement Department is made up of the Corporate Social and Environmental Responsibility and Group Communication Functions. It defines and implements the Group’s strategy of engagement in the main sectors related to the future of the society, such as economic development, the environment and energy transition; social integration and regional development; diversity and respect for human rights. These areas are particularly relevant to the protection against risk to the Group’s reputation. Furthermore, one of the major missions of Corporate Communication is to protect the reputation of the Group and its entities, as well as being a source of information for employees and the public, whose trust is essential for the Group. The Compliance Function is responsible centrally for coordinating initiatives related to reputation risk management. The Group’s reputation risk management framework, like the entire internal control system, is under the responsibility of the Group Supervisory and Control Committee (GSCC), which is chaired by the Chief Executive Officer (see chapter 2 Corporate governance and internal control, section Internal control). Legal risk The LEGAL Function is an independent function of the BNP Paribas Group and is hierarchically integrated with all the Group’s legal teams. LEGAL is responsible for managing legal risks and interpreting the laws and regulations applicable to the Group’s activities and providing legal advice and guidance to the Group in a manner that meets the highest standards of excellence and integrity. The LEGAL Function provides Executive Officers and the Board of directors with reasonable assurance that legal risks are monitored, controlled and mitigated at the Group level. It is responsible for the prevention and management of legal risks within the Group through its advisory and control roles. Legal risk refers to the potential loss to the BNP Paribas Group, whether financial or reputational, which impacts or could impact one or more entities of the BNP Paribas Group and/or its employees, business lines, operations, products and/or its services, and results from: non-compliance with a law or regulation or a change in law(s) or regulation(s) (including a change in the interpretation or application of a law or regulation by a court or competent authority and any requirement of any regulatory or supervisory authority); a dispute (including all forms of alternative/extrajudicial dispute resolution and court orders) or an investigation or inquiry by a regulatory or supervisory authority (with implications for LEGAL); a contractual deficiency; a non-contractual legal matter. The LEGAL Function is responsible for: every failure or deficiency in a legal process that may involve the risk of a penalty, reputational risk or financial loss, in all areas; management of risk relating to a conflict with a counterparty, a customer, a third party or a regulatory body, resulting from a deficiency or default that could be attributable to the Group in the course of its operations. Strategic and preventive missions In its strategic missions, LEGAL is responsible for: defining the Group’s legal policy and overseeing its consistency; providing legal advice to the Executive Management, business lines and functions; contributing to the Bank’s influence on regulatory, legislative or market initiatives. In its prevention missions, LEGAL is responsible for ensuring: the Group’s legal security in connection with its commercial activities or proprietary businesses; the protection of the Group’s legal interests, including through the management of the Group’s disputes and conflicts; the legal protection of the Group’s managers or employees in the ordinary course of their business. Tax risk BNP Paribas ensures compliance with the tax regulations in force in the various countries where the Group operates and which apply to the sectors of activity covered by the Group's various entities, such as banking, insurance and other financial services. The tax mission is carried out by TAX, which has global powers in order to ensure, in particular, control of tax risk at the Group level. RISK, Compliance and Finance & Strategy are involved as the second line of defence in monitoring the tax risk according to the domain concerned (transactions carried out by the Group, obligations related to the tax situation of clients, tax returns made by the Group). TAX is composed of the Group Tax Department (GTD) and the tax departments on which the GTD relies in certain businesses and in the main geographical areas where the Group operates (there are tax correspondents in the other jurisdictions where the Group operates). In order to ensure the consistency of the Group’s tax practices and the global tax risk monitoring, the Group Tax Department: has drawn up principles and guidelines that business lines must comply with limit tax risks; has implemented a process of feedback that contributes to the control of local and global tax uncertainties; oversees tax-related operational risks by defining an adequate system for managing these risks, in particular by drawing up and validating control plans; oversees the internal audit recommendations falling within the tax mission’s scope of responsibility. Cybersecurity and technology The use and protection of data and technologies are determining factors for the Bank’s activity and its transformation process. While the Bank continues the roll-out of Digital Banking (for the Group’s customers and partners) and Digital Working (for the Group’s employees), it must incorporate new technology and innovative risk management practices, and establish new working practices. This introduces new technology risks in the cybersecurity area. In that context, the Group deploys significant resources to identify, measure and control these risks. Technology management and information systems security is part of the Group’s cybersecurity strategy. This strategy is focused on the preservation of the most sensitive data, regularly adapting both its internal processes and procedures, and its employee training and awareness to contend with increasingly sophisticated and varied threats. To reinforce its technology and the protection of data, the Group has adopted a comprehensive approach in cybersecurity management through its three lines of defence: operating entities are the first line of defence. Since 2015, the Group has introduced across all entities a transformation programme based on the international standard NIST (National Institute of Standards and Technology). This programme is regularly updated taking into account new threats and recent incidents identified around the world; as a second line of defence, the team dedicated to managing cybersecurity and technological risk within RISK ORM and under the responsibility of the Group Chief Operational Risk Officer, is tasked with the following in relation to Operational Risk Officers: presenting the Group’s cybersecurity and technology risk position to the Group Executive Committee, the Board of directors, and the supervisory authorities, monitoring the transformation programme across the entire Group, integrating the cybersecurity and technology risk aspects into all major projects within the Group, ensuring that policies, principles and major projects take aspects of cybersecurity and technology risk into consideration, monitoring existing risks and identifying new threats likely to have a negative impact on the Group’s business, overseeing third-party information systems risks within a strengthened framework, conducting independent assessment campaigns on priority objectives, taking measures to assess and improve the Group’s ability to respond to failings and incidents; as the third line of defence, the role of General Inspection is to: assess the processes put in place to manage ICT risks (related to information and communication technologies), as well as associated controls and governance, check for compliance with laws and regulations, propose areas of improvement to support the mechanisms put in place. The Group is responding to new technological and cybersecurity risks as follows: ITC risks linked to availability and continuity: BNP Paribas relies heavily on communication and information systems across all its business activities. Any breach in the security of these systems could lead to failures or interruptions in the systems used to manage customer relations or to record transactions (deposits, services and loans) and could incur major costs to recover and verify compromised data. The Group regularly manages, and revises its crisis management and recovery plans by testing its data recovery services and the robustness of its information systems, using various scheduled stress scenarios; security risks: the Bank is vulnerable to cybersecurity risk, or risk caused by malicious and/or fraudulent acts, committed with the intention of manipulating information (confidential, bank/insurance, technical or strategic data), processes and users, which may result in material losses for the Group’s subsidiaries, employees, partners and customers. The Group continually reassesses the threats as they evolve and mitigates risks detected in good time by means of taking effective counter measures; IT change-related risks: the Group’s information systems are changing rapidly in the light of digital transformation. These risks, identified during the systems’ design or modification phases, are regularly assessed to ensure that the proposed solutions are consistent with the needs of the Group’s business lines; data integrity risks: confidentiality of customer data and transaction integrity are areas covered by the same systems set up in response to Regulation (EU) No. 2016/679 of 27 April 2016 (General Data Protection Regulation – GDPR) intended to provide the Group’s customers with a service that meets their expectations; third-party information systems risks: the Bank is exposed to risks of financial default, breaches or operational capacity constraints when it interacts with third parties, including customers, financial intermediaries and other market operators. The Group’s three lines of defence constitute the management framework of these risks at every step of integration until the end of the relationship with such third parties. Operational risk exposure The chart below shows the losses linked to operational risk, according to the event classification defined in the current regulation. ➤Figure 14: Operational losses – Breakdown by event type (average 2016-2024) The breakdown of losses by type of operational risk for the period 2016-2024 is quite close to the previous period (2015-2023), with a slight increase from 22% to 25% regarding external fraud while the “Clients, products and business practices” category decreased from 38% to 35%. This last risk type is still the main Risk, followed by process failures, including errors in executing or processing transactions, and then external fraud. BNP Paribas Group pays the utmost attention to analysing its operational risk incidents in order to continuously improve its control system. Capital requirement calculation Operational risk-weighted assets are calculated by multiplying the capital requirement by 12.5. Approach adopted BNP Paribas uses a hybrid approach combining the advanced measurement approach (AMA), standardised approach, and basic indicator approach. In terms of net banking income, most legal entities within the Group’s prudential scope of consolidation use the advanced measurement approach. This includes most retail banking activities in the domestic networks and private banking, as well as Corporate & Institutional Banking. Advanced measurement approach (AMA) Under the AMA for calculating capital requirements, the Bank uses an operational risk internal model based on the four components required by regulations, namely: internal historical loss data from operational risk; external loss data from operational risk; environmental and internal control factors; analysis of forward-looking scenarios, known as potential incidents in the BNP Paribas Group. BNP Paribas’ internal model in place since 2008 includes the following features: an aggregated annual loss distribution, meaning that the frequency and severity of losses from operational risks are modelled using an actuarial approach and according to distributions calibrated with available risk data; it uses historical data as well as prospective scenarios to calculate capital requirements, with a predominance for scenarios because they can be shaped to reflect severe and less frequent operational risks; the model is faithful to its operational risk input data, so that its results can be used easily by each of the Group’s business lines. Most of the assumptions are therefore included in the data themselves; it is prudent in its capital requirement calculations: the input data are thoroughly reviewed, and any supplemental risk data are added if needed to cover all relevant operational risks within the Group. Regulatory AMA capital requirements are calculated as VaR (Value at Risk), or the maximum potential loss over one year, at a 99.9% confidence level to calculate regulatory capital requirements. Capital requirements are calculated at an aggregated level using risk data from all Group entities in the AMA perimeter, then allocated to business lines and individual legal entities. Fixed-parameter approaches BNP Paribas uses fixed-parameter approaches (basic or standard) to calculate the capital requirements for entities in the Group’s prudential consolidation scope that are not covered by the internal model: basic approach: the capital requirement is calculated as the average over the past three years of a financial aggregate based on net banking income (the exposure indicator) multiplied by a unique alpha parameter set by the regulator (15% weighting); standardised approach: the capital requirement is calculated as the average over the past three years of a financial aggregate based on net banking income multiplied by factors set by the regulator and corresponding to each business category. For the purposes of this calculation, all the Group’s business lines are broken down into eight regulatory business categories. Risk-weighted assets and capital requirement ➤TABLE 104: OPERATIONAL RISK CAPITAL REQUIREMENT AND RISK-WEIGHTED ASSETS (EU OR1) a b c d e In millions of euros 31 December 2024 31 December 2023 Relevant indicators RWAs Capital requirements RWAs Year-3 Year-2 Last year 1 Basic indicator approach 4,537 5,233 4,850 9,137 731 3,911 2 Standardised approach 5,788 6,110 6,440 11,094 887 10,215 3 of which subject to TSA 5,788 6,110 6,440 11,094 887 10,215 4 of which subject to ASA - - - - - 5 Advanced measurement approach (AMA) 34,575 32,439 34,362 44,733 3,579 44,771 TOTAL OPERATIONAL RISK 44,900 43,782 45,652 64,964 5,197 58,897 The EUR 6.1 billion increase in risk-weighted assets due to operational risk in 2024 is driven by the global integration of UkrisbBank and Arval, which were consolidated in the first and third quarters respectively. Both impacts are reflected in the basic indicator approach. A further rise in fixed-parameter approaches is related to the performance of the entities, and their higher average Relevant indicator. As for the AMA capital, it remained stable in 2024. Risk mitigation techniques and insurance policies BNP Paribas Group deals with its insurable risks with the triple aim of protecting its balance sheet, its profit and loss account and its staff. Its insurance set-up is based on risk identification and assessment, underpinned by risk mapping and by analysis of operational loss profile, both historical and forward-looking. The Group purchases insurance from leaders in the insurance market, covering computer crime, fraud, theft, business disruption, liability and other risks for which it may be held responsible. In order to optimise costs whilst effectively managing its exposure, the Group retains some well-identified risks whose impact in terms of frequency and cost is known or can be adequately estimated. In selecting insurers, the Group pays close attention to the credit rating and claims paying ability of the companies concerned. Detailed information on risks incurred by BNP Paribas, together with risk assessment visits, enable insurers to assess the quality of risk prevention within the Group, as well as the safeguard measures put in place and upgraded on a regular basis in light of new standards and regulations. 5.10Insurance risks [Audited] BNP Paribas Cardif Group Risk Management system Risk management is a process that allows identification, measurement, monitoring, management and reporting of both the risks arising from the external environment as well as intrinsic risks inherent to the BNP Paribas Cardif insurance group. The objective is to guarantee the solvency, business continuity, and development of the BNP Paribas Cardif group, under satisfactory conditions of risk and profitability. Within the framework of the provisions of article L.354-2 of the French Insurance Code, the BNP Paribas Cardif group conducts a forward-looking assessment of its solvency and risks every year under the Solvency II framework, in particular: the definition and evaluation of a capital requirement specific to the risk profile; the level of capital that the BNP Paribas Cardif group wishes to hold to cover this specific requirement; the forward-looking solvency ratios under the medium-term plan; the resilience of these ratios in stress test cases. Depending on the observed solvency ratio levels and the forecasts made under ORSA (Own Risk and Solvency Assessment), remedial actions may be undertaken to adjust own capital. The risk typology adopted by the BNP Paribas Cardif group is changing in pace with methodological work and regulatory requirements. It is presented according to the main categories as follows: market risk: risk of a financial loss arising from adverse movements of financial markets. These adverse movements are notably reflected in price fluctuations (foreign exchange rates, bonds, equities and commodities, derivatives, real estate, etc.) and derived from fluctuations in interest rates, credit spreads, volatilities and correlations; liquidity risk: risk of being unable to fulfil current or future foreseen or unforeseen cash requirements coming from insurance commitments to policyholders, because of an inability to sell assets in a timely manner and at an acceptable cost without having a significant impact on market prices; and/or get access to alternative financing instruments in a timely manner; credit risk: risk of loss or adverse change in the financial situation resulting from fluctuations in the credit standing of issuers of securities, counterparties, and any debtors to which the BNP Paribas Cardif group is exposed, in the form of counterparty risk. Among the debtors, risks related to financial instruments (including the banks in which the BNP Paribas Cardif group holds deposits) and risks related to receivables generated by the underwriting activities (premium collection, reinsurance recovering, etc.) are divided into two categories: asset credit risk and liability credit risk; underwriting risk: risk of financial losses caused by a sudden and unexpected increase in insurance claims that may result from inadequate pricing and provisioning assumptions due to internal or external factors, including sustainability risks. Depending on the type of insurance business (life, non-life), this risk may be statistical, macroeconomic or behavioural, or may be related to public health issues or disasters; operational risk: risk of loss resulting from inadequate or failed internal processes, IT failures or from external events, whether accidental or natural. It includes legal, tax and non‑compliance risks, but excludes risks arising from strategic decisions and reputational risks. The BNP Paribas Cardif group is exposed mainly to credit, underwriting and market risks. The BNP Paribas Cardif group closely monitors its exposures, taking into account these various risks and the adequacy of its capital with regard to regulatory solvency requirements. It endeavours to contain potential losses in adverse scenarios at acceptable levels. The risk strategy is implemented and monitored through an organisation tailored to the broad risk classes and supported by ad hoc governance structures. The governance and risk management systems are presented in sections B. System of Governance and C. Risk profile of the BNP Paribas Cardif group’s Solvency and Financial Condition Report (SFCR), available on the institutional website at https://www.bnpparibascardif.com/en/financial-informations. The solvency requirements for the BNP Paribas Cardif group under Solvency II are shown in the section Capital adequacy and capital planning of section 5.2 Capital management and capital adequacy. Financial and underwriting risks related to insurance contracts within the scope of IFRS 17 are disclosed in note 5. Notes relating to insurance activities to the consolidated financial statements. The note presents the assessment of these risks in accordance with the principles of IFRS 17 as well as the risk management framework implemented by the BNP Paribas Group. Market risk Market risk arises mainly in the Savings business, where technical reserves represent most of the BNP Paribas Cardif group insurance subsidiaries' liabilities. General framework for monitoring market risk BNP Paribas Cardif has the necessary management tools to calibrate its strategic asset allocation and to measure its risks of asset-liability adjustment. The asset-liability studies enable the expected flows on both the assets and the liabilities of the various general funds to be forecast. They allow the duration of assets to be adjusted according to the profile of the different liabilities. The investment policy dictates the scope applicable to asset management. It defines the principles along which the structure of asset portfolios can be matched with the undertakings made to policyholders, while optimising the expected return on investment in relation to the set risk limit. The implementation of the investment policy, assigned to the Asset Management Department, is regulated for each portfolio by a management agreement that specifies the investment limits geared to different classes of asset. Market risk can also be managed with financial hedging instruments. Exposure to market risk is also monitored through specific targeted studies, such as the review of securities in an unrealised loss position. In addition, the exposure to foreign exchange risk results from allocations to branches, foreign currency equity investments or the investment strategy in foreign currency assets in general funds and non-participative funds. Interest rate risk management Interest rate risk management for the general insurance funds, the assets for the protection activities and the own funds, mainly leads to investment in bonds, of which government bonds, notably those issued by countries in the Eurozone. The asset diversification policy aims to invest in listed or non-listed equities as well as real estate assets. Euro funds in underwritten life insurance policies are measured based on either a contractual fixed rate or a variable rate, with or without a minimum guaranteed return. All of these policies give rise to an interest rate and asset value risk, corresponding to the risk that the return on admissible assets is less than the contractual return payable to policyholders or return payable defined in consideration of the market expectations and the positioning of the market players. In France, the average rate guaranteed by Cardif Assurance Vie in 2024 was below 0.1%. Credit spread risk General funds are mainly invested in bond assets that generate spread risk. Limits by issuer and rating type (investment grade, non-investment grade) are monitored regularly. Issuer credit quality is also reviewed frequently; Management of the risk of change in the value of assets In addition to the quality of the assets, portfolio diversification and hedging policy, the exposure to the risk of a decline in the value of assets (interest rate, spread, equities, real estate) for contracts with a profit-sharing clause is mitigated by the accounting variable fees model (VFA), with changes in the value of financial assets adjusting the cash flows from execution for the share accruing to policyholders and the margin on contractual services for the share accruing to the insurer. Foreign exchange risk management Currency risk hedging may be provided by forward financial instruments, such as currency swaps or by currency borrowings. LIquidity risk Exposure to liquidity risk is appraised, over a one-year horizon, mainly through the liquidity policy of the Asset Management Department, and in the medium term through studies carried out by the Actuarial Department on forecasted expected cash flows on the assets and liabilities of BNP Paribas Cardif general funds. Tactical asset management provides the necessary liquidity to address redemptions and lapses, within the regular asset management framework, while minimising the impact on the yield of the assets. The liquidity risk is centrally managed through reviews realised with a frequency appropriate to the risk exposure. Stress tests are regularly carried out as part of asset and liability management studies. These stress tests make it possible to check the ability of BNP Paribas Cardif to honour its undertakings in negative financial market situations, by taking account of the impact of these situations on the behaviour of policyholders. Asset-liability matching analyses over the medium to long term are also carried out regularly by Asset-Liability Management in order to supplement the measurement of the financial risks incurred. They are based on medium- and/or long-term profit and loss account and balance sheet projections prepared using a range of economic scenarios. The results of these reviews are analysed in order to determine any adjustments to required assets (through strategic allocation, diversification, use of derivatives, etc.). CREDIT RISK The rules for the dispersion of assets are laid down in the management agreements of the general funds. They specify the dispersion ratios per issuer on fixed-income instruments and by rating category. The credit doctrine formalised through the CRC – CGL (Credit Risk Consumption – Global Concentration Limit) also specifies the dispersion rules at the consolidated level for the general funds of entities based within the Eurozone, which are the most important. The counterparty risk on reinsurers is managed through a stringent selection of counterparties, the negotiation of the guarantees provided and regular monitoring of the main exposures. The Risk Transfer and the Credit Risk Departments are responsible for this monitoring. The guarantees required may be actual guarantees, such as deposits in the form of a financial guarantee and pledged securities, or as sureties and letters of guarantee. Partner counterparty risk comes under the credit governance for Partners and Reinsurers. The governance determines the delegated powers granted to local entities and provides for an agreement with the Credit Risk Department, if this latter is outside the framework of the local delegation. An exposure on a partner may be the subject of collateral or a personal guarantee. Depending on the quality of the counterparty, the following techniques may be used: parent company endorsements, bank guarantees payable at first demand, an account segregated from all other assets in the event of bankruptcy, etc. Group BNP Paribas Cardif investments As of 31 December 2024, in addition to unit-linked investments, the BNP Paribas Cardif group manages EUR 168.6 billion at net book value and, at market value, through its subsidiaries in France (mainly Cardif Assurance Vie, representing EUR 133.3 billion), Italy (mainly Cardif Vita, representing EUR 22.6 billion) and Luxembourg (Cardif Lux Vie, EUR 8.6 billion). The breakdown of BNP Paribas Cardif group investments (excluding investments in unit-linked contracts) is presented in the table Investments and other assets related to insurance activites in note 5. Notes related to insurance activities to the consolidated financial statements. ➤Table n° 105: BOND EXPOSURE BY ISSUER AND RATING (EXCLUDING INVESTMENTS IN UNIT-LINKED CONTRACTS AND EUROCROISSANCE CONTRACTS) Exposure by rating 31 December 2024 31 December 2023 Govies Corporate Total Govies Corporate Total AAA 7.8% 4.3% 12.1% 7.9% 4.1% 12.0% AA 24.5% 8.3% 32.8% 21.0% 13.6% 34.6% A 4.3% 29.6% 33.9% 2.9% 23.7% 26.6% BBB 10.3% 7.7% 18.1% 10.1% 13.7% 23.8% < BBB(1) 0.0% 3.1% 3.1% 0.4% 2.6% 3.0% TOTAL 46.9% 53.1% 100.0% 42.2% 57.8% 100.0% Including unrated bonds. ➤TABLE 106: EXPOSURE TO GOVERNMENT BOND AND SIMILAR BY ISSUING COUNTRY (EXCLUDING INVESTMENTS IN UNIT-LINKED CONTRACTS AND EUROCROISSANCE CONTRACTS) Exposure by country In millions of euros Rating 31 December 2024 31 December 2023 Net book value Net book value France AA- 21,234 15,523 Italy BBB 11,881 10,253 Spain A- 2,592 1,904 Belgium AA- 7,932 7,494 Germany AAA 1,567 1,922 Austria AA+ 358 313 Netherlands AAA 320 674 Ireland A+ 110 96 Portugal BBB+ 77 57 Others 7,808 7,308 TOTAL 53,877 45,544 Because of the upward trend in long-term rates in Europe in the first half of 2024, investments in general funds were made on long-maturities and good credit quality bond securities, notably in government or supranational bonds. Insurance underwriting risk Underwriting risk arises mainly from the surrender, the longevity and the mortality risk in the savings business line, and in creditor insurance contracts for the protection business. Underwriting risk management is detailed in note 5. Notes related to insurance activities to the consolidated financial statements. 5.11Environmental, social and governance risk The publications under this section cover the environmental, social and governance (ESG) risk factors that may directly affect credit institutions through their impacts on the business activity of the customers. From a general perspective, the Group has integrated the ESG-related risk factors into the Group’s risk management framework, as potential drivers of existing financial risks. Given the evolving nature of these methodologies, data and regulations related to ESG, the Group’s set-up may also be gradually adapted, as relevant. The tools rolled out and continuously improved within the Group cover the risk factors regarding the three pillars “E”, “S”, and “G”. The environmental and climate-related ones are the most developed. The Supervisors and other external stakeholders pay particular attention to identifying and managing these types of risks, considering their potential impacts on the banking sector. Business strategy and processes Impact of ESG risk FACTORS on business strategy and processes In its ambition to be a leader in sustainable finance and in the wake of its Strategic Plan, built around the pillars Growth, Technology & Sustainability (GTS), the Group has set itself the objective of directing financial flows towards a more sustainable economy. The Group consequently supports all its customers (corporates and individuals) in their transition. Three strategic pillars have been identified to accelerate the implementation of the Group’s sustainable development commitments. Firstly, the alignment of lending sector-specific portfolios with the objectives of the 2015 Paris Agreement. Secondly, supporting clients towards a sustainable, low-carbon economy, thanks to the mobilisation of the Group’s networks of internal experts on ESG issues like the Low-Carbon Transition Group. Finally, strengthening the internal expertise, the management tools, the processes and mechanisms enabling to support the evolving needs of stakeholders and the training of employees, including the Sustainability Academy. In this context, the Group continuously strengthens its ESG risk management framework. The Group monitors the potential impact of ESG risk factors on the conduct of its business, counterparties and investments on its own behalf or on behalf of third parties. Initially focused on the sectors most sensitive from an ESG perspective, the assessment of these ESG risks is gradually strengthened following the development of the methods for measuring and analysing these factors and their impacts on financial risks, in particular those relating to credit risk. Thus, the Group relies notably on a strong framework leveraging Sectoral Policies, Global and Specific Credit Policies, Exclusion and Monitoring lists and financing and investing policies which set ESG criteria governing the Group’s decisions to allocate financial services to sensitive industrial sectors The Group continues expanding its training offer for employees to further support the consideration of ESG issues in its global risk management. It now covers a broad spectrum ranging from general awareness-raising to specific and technical trainings, for example trainings about energy transition, protection of biodiversity, respect for human rights and on the ESG risk management framework. The creation of the Sustainability Academy in 2022 has accelerated this process (see section 7.1.4 Own Workforce, paragraph Skills development and employability enhancement in chapter 7). Objectives, targets and limits related to ESG risks and opportunities BNP Paribas has implemented a comprehensive ESG risk management approach developed to support the Group's strategy and in compliance with the current regulations of the European Union. It reflects a commitment at the highest level of the Group to combine performance, responsibility, ethics and transparency. This approach embeds ESG risks on a short-, medium-, and long-term scale as displayed in its CSR policy management dashboard (see section 7.1.1 General disclosures, paragraph Sustainability strategy overview in chapter 7). The Group strategy aims to contribute to directing capital flows towards the transition to a more sustainable economy through banking and financial services. In that regard, the Group also pays specific attention to actions and practices that facilitate the alignment of its loan portfolio with the Net-Zero in 2050 objective. In 2021, the Group committed to objectives to gradually align its loan portfolios on a trajectory consistent with the 2015 Paris Agreement. The CSRD sustainability stetements (Corporate Sustainability Reporting Directive) presented in section 7.1 Sustainability statements of chapter 7 illustrate the progress in supporting the transition of clients in developing renewable and low-carbon energies, supporting the energy transition of individuals and improving energy efficiency within its operating scope. They present the transition in the financing of low-carbon energy, now the majority in the Group's credit exposure to energy production. They also present its targets for reducing absolute greenhouse gas emissions for oil and gas, matched by reductions in its financing for this sector. Finally, they present sector review and targets of the greenhouse gas emissions intensity of its credit portfolios in the electricity generation, automotive, steel, aluminium, cement, aviation, shipping and commercial real estate sectors, while also disclosing the approach to the agriculture and residential real estate sectors. Actions to assess and address social risks are developed in the strategy and in the Group’s vigilance plan. The Group’s vigilance plan is implemented to identify and prevent the risk of serious violations of human rights and fundamental freedoms, of harm to human health and safety, and to the environment throughout its business operations. For more information, refer to section 7.2 Vigilance plan in chapter 7. Furthermore, the Group is committed to respecting and promoting internationally recognised human rights standards as defined in the International Charter of Human Rights, the OECD Guidelines for Multinational Enterprises, and the United Nations Guidelines on Business and Human Rights. The Group also recognises the fundamental conventions established by the International Labour Organisation (ILO), integral parts of the ILO Declaration on Fundamental Principles and Rights at Work, as well as the principles of international humanitarian law applicable in situations of armed conflict. The Group complies with local regulations of the countries in which the Group operates. Governance OrganiSation and monitoring system The Board of directors validates the Group’s strategy on energy and climate-related matters, with the support of two specialised Committees (see Governance in section 5.3 Risk Management): the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN), which specifically ensures the Group’s contribution to sustainable and responsible economic development, primarily by financing the economy in an ethical manner, by promoting the development and commitment of employees, by protecting the environment and by combating climate change, and through the Group’s positive commitment to society; the Internal Control, Risk management and Compliance Committee (CCIRC), which examines the main guidelines of the Group’s risk policy, including those of a social and environmental nature, based on the ESG risk measurements it receives. For environmental-related risks and opportunities in all fields, the Chief Executive Officer and the Chief Operating Officer submit a strategy proposal to the Board of directors, then subsequently oversee the management of the Group and its performance. The Chief Executive Officer is responsible for the ESG strategy, for which the definition and implementation through the Group’s commitments is managed by the Head of Company Engagement, a member of the Group Executive Committee, in its role as CSR supervisor. The Company Engagement Department, the CSR Department (which is part of the Company Engagement Department), the operating entities and functions are responsible for the implementation of the Group’s climate strategy. Since 2021, the Group’s ESG governance system has been extended to cover all aspects of the Company and restructured to better incorporate environmental and climate-related issues in the definition of the strategy, its oversight and management of the associated risks. This framework is based on well-defined governance, with responsibilities shared between the Group and operating entities in order to facilitate operational integration of the ESG policies, targets and risk framework. This governance is led by: the Sustainable Finance Strategic Committee, which aims to validate the Group’s climate strategy and the implementation of the policy of aligning the loan portfolio with the Paris Agreement. The main associated indicators are discussed at regular meetings chaired by the Chief Executive Officer within the framework of this Strategic Committee. The topics related to sustainable financing discussed by the members of the Committee are then transmitted to the business lines and functions through their representatives; the Sustainable Finance Infrastructure Committee aims at industrialising ESG processes, data and reporting. Its mission is to meet the growing needs of customers, regulators and investors. Around the Deputy Chief Executive Officer, it brings together key contributors from different business lines and functions; the ESG Regulatory Committee at Executive Management level was set up to assess the operational consequences of the main new regulations. Specific actions aiming at further embedding ESG into the risk management framework are handled within the ESG Methodologies, Analyses and Risk Management programme, which is monitored by the Sustainable Finance Infrastructure Committee. Internal control system The Group General Management has set up an internal control framework whose main objective is to ensure the global risk management and to give a reasonable assurance that related objectives are achieved (see section 2.4 Internal Control in chapter 2). The BNP Paribas Group’s internal control monitors all types of risks to which the Group may be exposed, including those resulting from ESG factors. It is applied at the Group level and at the level of directly or indirectly controlled entities. Environmental, social and governance risk management framework risk management FRAMEWORK The ESG risk management framework of the Group has been built on the basis of voluntary actions and commitments as well as regulatory requirements and supervisory expectations. The long-standing voluntary actions with respect to international and European policy framework encompass good practices on both environmental and social fields and include the following principles: application of internationally recognised human rights standards as defined in the Bill of Human Rights: the United Nations Declaration of Human Rights, the International Covenant on Economic, Social and Cultural Rights and the International Covenant on Civil and Political Rights. This commitment is expressed at the highest level in the BNP Paribas Declaration on Human Rights, signed by the Group’s Chief Executive Officer and promoting the respect of these rights within BNP Paribas’ sphere of influence; adoption of social and environmental goals aligned with global standards such as the United Nations Sustainable Development Goals and those of the financial community such as the Principles for Responsible Banking (PRB) and the Principles for Responsible Investment (PRI); actions following the framework of the United Nations Global Compact (Advanced level) and the United Nations Women’s Empowerment Principles. The Group also complies with ILO Conventions concerning social and labour aspects and the internationally accepted OECD Guidelines for multinational enterprises; commitment to align greenhouse gas (GHG) emissions arising from its credit activities with the path required to achieve carbon neutrality in 2050 by joining the Net-Zero Banking Alliance (NZBA). Thanks to the methodology guidance developed by the NZBA, the Group has been able to assess the trajectory of its portfolio on the major carbon intensive sectors (sectors mentioned above in the section Objectives, targets and limits related to ESG risks and opportunities). application of the 4th version of the Equator Principles (EP4) related to project finance activities. The Group works with its customers to identify, assess, and manage the environmental and social risks and impacts linked with major industrial and infrastructure projects. Any potential negative impact of these projects on communities, ecosystems or climate must be avoided, mitigated and/or offset. DEFINITION AND IDENTIFICATION OF ESG RISK The qualification of the risk factors related to climate change to which the Group is exposed is defined in paragraph "Environmental risks" of section 5.1 “Top and emerging risks” of chapter 5. The Group does not consider the ESG risks as risk types but rather as risk factors which may potentially favour, trigger or worsen any types of risk, and notably credit, market or operational risks. Accordingly, ESG risk factors are incorporated in the Group’s existing risk management framework and processes. The risk identification is a top-down and bottom-up annual, forward-looking, comprehensive approach to identify and assess, amongst other risks, the ESG risk factors the Group is exposed to. The Risk ID process has been designed to favour anticipation and to promote a forward-looking approach when updating the Risk inventory of the Group, resulting in the final outcome of the process. The risk inventory is made of a set of “severe but plausible” elementary scenarios (the “risk events”) that reflect the ways the risk types faced by the Group could materialise. All the risk events have the same structure: the scenario is described and assigned to a risk type; the risk factors that favour, trigger or aggravate the scenario (the way the risk type materialises) must be identified. ESG risks are considered as risk factors, and therefore the BNP Paribas risk factors taxonomy (used as a reference in Risk ID approach) encompasses a comprehensive set of risk factors covering environmental, social and governance risk topics; the materiality of the scenario must be assessed using three dimensions: the severity, the frequency and the imminence (For further details see Appendix 5 Risk identification & assessment process (“Risk ID”)). Given the still evolving features of the ESG topics, the Group has deepened and broadened the insertion of climate risk factors over the years into its risk management framework and related lifecycle and will continue doing so over time. More specifically, many actions have been implemented in the context of the continuous improvement of the Group Risk ID and to better answer regulatory expectations, such as: in 2024 the Risk ID methodology integrates the definitions of short-, medium- and long-term time horizons; granularity in the ESG risk taxonomy has been enriched, based on the inputs of Group experts (20 ESG risk factors in 2024, versus 13 in 2023). physical risk materiality is improved thanks to the sectoral climate physical risk heatmap provided to Risk ID contributors since the 2023 exercise; integration of environmental, social and governance criteria, and in particular physical and transition risks related to the climate and the environment when assessing sovereign risks and country risks in the broadest sense. The assessment of sovereign ESG risks is based on an internal methodology and integrates data from recognised external sources (international organisations such as United Nations agencies, the NGFS - Network for Greening the Financial System, Transparency International, and others which are updated annually); sectoral analyses and heatmaps on climate-related risks are being developed by the Group and enable to map the Group’s exposures to sectors considered as vulnerable to climate transition and/or physical risk factors, and to assess potential concentrations thereof. They were completed in 2024 by a heatmap providing ranking of sectors depending on their direct impact on nature; exploratory analysis regarding the possible impact of flood and chronic heat related risks on large corporates and physical risk factors on residential and commercial real estate portfolios. In the Risk ID approach, the 20 ESG risk factors are combined with 24 possible ESG-transmission channels. A better understanding of the transmission channels that explain how ESG risk factors could lead to direct or indirect damage to the Group enhances the ability to seize and model the possible impacts of ESG risk factors. Consequently, in the Risk ID approach, whenever an ESG risk factor is considered as favouring, triggering and or worsening a risk event, the associated transmissions channels must be identified. They have to be selected from the first version of the BNP Paribas reference taxonomy of ESG transmission channels. The following chart illustrates the manner in which BNP Paribas accounts for the fact that ESG risk factors are likely to contribute, via pre-identified transmission channels, to the materialisation of, potentially, any type of risk. To better take into account ESG aspects in its risk management framework, BNP Paribas provides a picture of the risk environment of financial institutions by updating each year its Financial Institutions Global Risks Landscape(12). In 2024, 22 among the 34 global risks retained and detailed in this work have an ESG dimension (see the table in Appendix 5 Risk identification & assessment process [“Risk ID”]). risk assessment & Measurement Regarding Risk Assessment & Measurement, the Group has put in place several tools and processes: in the credit risk framework ESG performance and associated risks are analysed through the ESG Assessment which is fully integrated into the credit process.; with the ESG Assessment deployment covering more and more client segments over time (see Appendix 5 ESG Assessment (ESG-A), ESG aspects both at counterparty and transaction levels are further strengthened and documented, allowing a better monitoring; targets have also been set for most major carbon-intensive sectors over the past 3 years thanks to the portfolio alignment towards a net zero greenhouse gas emissions target by 2050 horizon (assessment of carbon intensive sector) specified in the above section Identification of ESG risk and limits. Tools to enhance forward-looking assessment capabilities are being developed. In particular climate scenarios analyses are deployed, covering climate-related risk factors, in that respect: Gradually, since 2020, the scenario analysis framework has been enriched for use in analysing the consequences of global warming and the energy transition on the Group’s asset portfolios. Progress has been made to: integrate different climate scenarios over longer horizons. Regarding the transition risk, three long-term scenarios (2050) of the NGFS (Network for Greening the Financial System) are analysed (IAM REMIND(13)below 2°C, delayed transition and current policies). Concerning the physical risk, the residential and commercial real estate portfolio is tested under the conditions of the RCP 8.5 2085 scenario for the riverine and pluvial flooding risk. The sensitivity analysis focuses on several assumptions and configurations of the model parameters, in particular the combinations of risk by insurances. project the evolution in the breakdown of sectors in the institution’s balance sheet to take into account specific factors such as the price of carbon emissions, technological innovation and physical risks. Climate scenarios addressing transition risk and physical risk have been included in the ICAAP, reflecting the increasing importance of climate in the Group’s strategy. Consistent with this pivotal role of climate change and energy transition, these scenarios are part of a more general treatment of climate-related risks and opportunities in the ICAAP, which are documented in a dedicated section of the ICAAP. Climate scenario analyses in the ICAAP are not limited to credit risk. They also include: operational risk through an adverse scenario assessment of losses calculated from operational risk events for which climate risk has been identified as a risk factor; reputational risk, by assessing the impacts of climate-related controversies on the revenues of various business lines; and cover other types of risks in a qualitative way. In 2024, the Group developed methodologies for: integrating the climate transition risk contribution to the internal capital Layer 1 assessment for credit risk only through the corporate client rating evolution. This methodology will be implemented in 2025. Of note, since 2022, the climate risk contribution to internal capital for credit business and operational risk have been addressed in the Layer 2 relying on the RISK ID framework; integrating climate risk (transition and physical risk) in the IFRS 9 framework via multi-channel for accounting classification and provisioning purposes, notably in leveraging ICAAP Climate stress-testing results and the FLAIR (Forward Looking Assessment of Internal Rating) for transition risk. The FLAIR framework captures impacts, when materially justified, on the IFRS 9 default probability beyond that reflected in the 1-year solvency default probability. This methodology has been implemented since the fourth quarter 2024. These different scenarios enable the Group to determine the materiality and sensitivity of climate risk factors This concerns in particular the impact on revenues, credit risk and operational risk. Climate risk scenarios remain exploratory in nature and cover time horizons that far exceed horizons used for capital planning. As a result, although integrated in the ICAAP for risk management purposes, climate scenarios are not used to calculate an impact on the Group’ capital. For further information on the Group’s developing climate stress testing infrastructure, please also refer to section 5.3 Risk Management, which provides information on the Group’s stress testing infrastructure, including relating to climate. The Group does not calculate a capital charge linked to climate-related risk, which is considered a risk factor of risks such as business, credit or operational risk. The Group is, however, able to assess the contribution of events that can be triggered or worsened by climate risk to its internal capital requirement. The assessment relies on the Group’s risk identification process. The Group’s resilience to environmental and social risk is underpinned by its diversified, integrated business model. The diversity of the business lines, the business sectors in which the Group operates and the geographic areas in which it is established is a key asset to mitigate risks of all kinds, whether they are climate, related to biodiversity or other environmental risks. In parallel with internal climate scenario analyses, the Group continues to participate in climate stress exercises for regulators and supervisors. Notably, in 2024, the Group participated in the stress tests: “One-off Fit-for-55” for which, in July, the EBA launched a public consultation on draft templates for collecting data to carry out its climate scenario by the end of 2023; exercise of the Hong-Kong Monetary Authority; ACPR exercise on insurance. This promotes the development of shared skills between internal analyses of climate scenarios and climate-related exercises mandated by regulators and supervisors. Several other elements can be highlighted as contributing significantly to the Group’s resilience to environmental risks: the integration of the transition to carbon neutrality at the core of the 2025 strategic plan and the commitment to align its activities with a carbon neutrality trajectory by 2050. Formalised by the Group’s membership in the Net-Zero Banking Alliance, BNP Paribas Cardif’s membership in the Net-Zero Asset Owner Alliance and BNP Paribas Asset Management’s membership in the Net-Zero Asset Manager Initiative, those commitments contribute to supporting the reduction in the Group’s exposure to economic players responsible for generating the highest GHG emissions, and thus its exposure to transition risks, particularly those related to changes in public policies aimed at reducing emissions; expansion of teams dedicated to supporting customers in their transition (e.g. Low-Carbon Transition Group); enhancement of the Group’s capabilities to assess and manage environmental risks and incorporate them in its decision-making processes as described in other chapters. Regarding social risks, activities of the corporate clients may introduce social risks related to the respect of human rights particularly in the area of workers’ rights and may have a negative impact on local communities. Hence, the Group encourages clients to manage their own activities with respect to human rights. It also endeavours to identify, assess, monitor and encourage the improvement of the current and future performance of clients operating in sensitive sectors through the application of its investment and financing policies. This set-up has been further strengthened with the deployment of the ESG assessment of the Group’s customers on five dimensions, including social (health, safety and impact on communities). In case of suspicion or identification of serious human rights abuses by a BNP Paribas customer or a company in its portfolio, the Group conducts in-depth due diligences with the company concerned. In addition, the adherence to international and European policy framework, which incorporates principles relating to the social field, can also contribute to reducing potential social risks. For example, as a signatory member of the Equator Principles, the Group ensures that any negative impacts of a project finance on communities, ecosystems or the climate are avoided and, if necessary, remedied, and encourages clients to obtain the Free, Prior and Informed Consent (FPIC) of the local communities impacted by their projects. MONITORING, MITIGATION and RISK REPORTING The above-mentioned approaches and tools developed for risk identification and measurement also constitute tools for risk monitoring, as they enable portfolio analyses and provide for indicators and insights on the Group’s exposure towards climate factors. The internal reporting framework and structure cover all type of risks to which the Group may be exposed, including the ESG risks. For example, a quarterly Group risk dashboard is periodically submitted to the Group Executive Management as well as the Board of directors’ Internal Control, Risk Management and Compliance Committee (CCIRC): this report covers the Group’s risk appetite and its risk profile leveraging amongst other things the results of the transverse stress tests. Climate and environmental factors are also incorporated into the Group's Risk Appetite Statement (RAS). The Group's RAS is defined in line with the strategy of BNP Paribas and includes risk principles dedicated to ESG risks factors (climate-related elements are included). These risk principles, coupled with dedicated metrics, define the risk tolerance of the Group on these dimensions. The Group RAS is being enriched year-on-year and now integrates several metrics to control Group achievements with respect to its commitments on Thermal Coal and on the exploration and production of Oil & Gas financing for 2025 and 2030, as well as the monitoring of the Residential Real Estate portfolio. In addition, complementary indicators, resulting from the setting of decarbonisation targets regarding the Oil & Gas, Power Generation and Automotive sectors, and the low carbon financing are part of the Risk Appetite Statement for monitoring purposes. As part of sector/activity RAS review, the Risk and Development Policy Committee, gathering together Business & RISK representatives, validates the strategic development plan and underlying risk profile of the sector/activity under review, including the ESG dimension. Environmental and social risk-related objectives are also considered in the remuneration policy (see section 1. Corporate governance in chapter 2). Several dashboards and analyses monitoring ESG risks are updated on a regular basis and shared with relevant stakeholders to support decision-making and operational insertion as follows: ESG Credit Portfolio Analysis: quarterly portfolio analysis embedding Risk Heatmaps and ESG-Assessment results to provide a view on the Group ESG risk profile and credit risk exposures; design of an “ESG Risk Cockpit”, a dashboard consolidating key ESG risk indicators and metrics, designed to help decision-making and prioritise portfolios according to their materiality in terms of ESG risks. Example of metrics: ESG risks materiality assessment, corporate credit risk portfolio distribution and concentrations, residential/commercial real assets at high climate transition or physical risk, key disclosed metrics from ESG pillar 3 such as financed emissions, alignment with decarbonisation trajectories for carbon intensive sectors; other ESG-related portfolio analyses are monitored in dedicated governances within business lines and entities. Moreover, to closely control the risk exposure towards sectors particularly exposed to ESG matters, the Group has issued financing and investment policies, classified as sector policies. Group credit related policies have also been reinforced considering ESG dimensions. Exclusion & monitoring lists restrict the activity or increase the level of scrutiny placed towards specific sectors or activities. Furthermore, climate-related criteria are incorporated as relevant in the due diligence performed on customers and suppliers, in covenants and procedures related to new/modified activities and exceptional transactions. Portfolios are dynamically managed towards the alignment targets defined by the Group. Below is a list of examples of specific policies recently updated: provisions relating to social and environmental responsibility (including climate) have been added in the General Credit Policy and specific policies, and are progressively reinforced; adherence to the Equator Principles on project financing; integration of ESG criteria in collateral valuation policies; integration of ESG criteria into supply chain management; integration of ESG criteria into asset management activities; DATA MANAGEMENT The implementation of a strong governance to define the data collection instructions, the data management and estimation rules, to optimise the quality, the exhaustivity and the freshness of ESG data is a prerequisite for a sound measurement and reporting. ESG data and information systems are managed in the context of a specific “Data & Systems” stream, under the Group Sustainable Finance Infrastructure Committee’s umbrella. In this context, the following framework has been set up to collect ESG needs within the Group: identification and prioritisation of the various ESG use-cases conducted by the Group Data Office and instructions of the use cases by GDO and ITG Architecture for the Group entities and functions. As of October 2024, more than 60 ESG use cases had been identified across the Group, with more than half of them having been addressed in the Data & Systems governance; identification of data needs for each use-case: definition of the sourcing strategy either via internal sourcing relying on the Group’s existing processes or the purchase from external ESG data providers; in case of external sourcing, integration, storage and distribution of the data by the impACT platform, the Group ESG data platform; deployment of the ESG Data Management system: classification of data into data families, update of the ESG data catalogue and the ESG data dictionary into We Data (Group data management tool), implementation of data quality indicators to measure data presence, completeness, data validity. Feedback loops are organised with data providers to address data quality issues and implement remediation plans; implementation of a governance to define the data collection instructions, the data management and estimation rules, in order to optimise the quality, the exhaustivity and the freshness of ESG data. MEASURING THE POTENTIAL RISK OF CLIMATE CHANGE Despite the developments in recent years in terms of standardising methodologies for the quantitative analysis of ESG factors and their impact on traditional financial risks, they must be interpreted with caution, taking into account their limitations. In the response to the public consultation of its report on prudential disclosures for ESG(14) of January 2022, the EBA underlines the difficulties relating to these methodologies, namely the low historical depth, the unavailability of standardised and comparable data on the various geographies and sectors of activity, the multiplicity of methods and scenarios used to estimate missing data, among others. The tables presented in this section should be read in conjunction with the methods and definitions used and described in the accompanying narrative. In the absence of a reference proposed by the supervisory authorities, the Group has chosen to refer, whenever possible, to European definitions or regulatory exercises. When this was not possible, the information was produced on the basis of forward-looking plans and projections, prepared in good faith by the Group based on internal definitions and estimates. The Group constantly adapts its methodologies taking into account the development of knowledge, the availability of data, the establishment or updating of recognised guidelines and standards. Certain factors, which are external to the Group, may cause variations in the forecasts taken into account to prepare forward-looking plans and projections, such as changes in climate scenarios, changes in economic conditions or geopolitical risks. The information contained in this section may, therefore, be significantly revised in future publications. As a result, the tables presented in this section can only be assessed on the date of publication of this document and must be interpreted taking into account the uncertainties related to the methodologies, projections and data used. BANKING BOOK – INDICATORS OF POTENTIAL CLIMATE CHANGE TRANSITION RISK ➤TABLE N° 107: CREDIT QUALITY OF EXPOSURES BY SECTOR, EMISSIONS AND RESIDUAL MATURITY a b c d e f g h i j k l m n o p In millions of euros 31 December 2024 Gross carrying amount Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions GHG financed emissions (scope 1, scope 2 and scope 3 emissions of the counterparty) (in tons of CO2 equivalent) GHG emissions (column i): gross carrying amount percentage of the portfolio derived from company-specific reporting ≤ 5 years > 5 year ≤ 10 years > 10 year ≤ 20 years > 20 years Average weighted maturity (in years) of which exposures towards companies excluded from EU Paris-Aligned Benchmarks of which environmentally sustainable (CCM) of which Stage 2 of which non-performing exposures of which Stage 2 of which non-performing of which scope 3 financed emissions 1 Exposures towards sectors that highly contribute to climate change(1) 332,462 17,818 4,177 37,144 11,935 (7,078) (541) (6,053) 95,738,428 39,329,247 30% 270,767 31,798 27,811 2,086 4 2 A – Agriculture, forestry and fishing 11,333 0 0 810 396 (224) (35) (139) 7,959,900 65,991 4% 9,582 934 771 46 4 3 B – Mining and quarrying 5,073 3,289 7 277 70 (67) (4) (60) 8,528,448 5,670,361 71% 4,152 781 140 1 4 4 B.05 – Mining of coal and lignite 20 20 0 0 4 (3) 0 (3) 10,985 71% 20 4 5 B.06 – Extraction of crude petroleum and natural gas 2,352 2,352 4 1 43 (42) 0 (42) 5,405,012 4,297,327 72% 1,933 392 27 0 3 6 B.07 – Mining of metal ores 1,254 125 0 234 10 (14) (4) (9) 943,156 73% 952 302 4 7 B.08 – Other mining and quarrying 661 5 3 30 14 (8) 0 (7) 595,226 425 19% 581 59 19 1 3 8 B.09 – Mining support service activities 787 787 1 11 0 0 0 0 1,574,069 1,372,609 97% 665 28 93 5 9 C – Manufacturing 95,092 3,639 1,235 11,654 3,326 (2,189) (120) (1,959) 32,968,886 16,302,217 43% 89,402 4,477 783 430 3 10 C.10 – Manufacture of food products 14,658 252 2 1,571 391 (258) (14) (220) 2,589,821 728,027 34% 13,817 673 115 53 3 11 C.11 – Manufacture of beverages 3,512 0 386 28 (22) (1) (15) 234,915 48% 3,373 105 33 1 3 12 C.12 – Manufacture of tobacco products 0 0 0 23 66% 0 0 13 C.13 – Manufacture of textiles 866 0 89 69 (51) (1) (49) 65,084 12 8% 829 15 8 13 2 14 C.14 – Manufacture of wearing apparel 1,155 300 138 (84) (5) (77) 44,624 19% 1,134 16 2 3 2 15 C.15 – Manufacture of leather and related products 328 76 31 (23) 0 (22) 12,832 9% 320 6 0 2 1 16 C.16 – Manufacture of wood and of products of wood and cork 1,151 2 70 61 (33) (1) (29) 95,565 546 11% 1,030 92 22 8 3 17 C.17 – Manufacture of paper and paper products 2,066 2 149 51 (34) (1) (31) 241,066 7,440 42% 1,905 156 3 2 2 18 C.18 – Printing and reproduction of recorded media 726 0 0 52 66 (45) (1) (42) 60,163 11% 670 44 10 2 3 19 C.19 – Manufacture of coke and refined petroleum products 3,044 3,044 19 375 11 (12) 0 (11) 5,687,987 4,760,911 69% 2,220 791 33 5 20 C.20 – Manufacture of chemicals and chemical products 7,887 212 7 1,768 393 (173) (9) (153) 3,000,552 363,878 50% 7,243 430 173 40 3 21 C.21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations 6,284 0 378 31 (22) (1) (19) 569,345 1 71% 6,008 256 5 14 2 22 C.22 – Manufacture of rubber products 3,721 27 439 260 (166) (5) (158) 1,082,939 164,338 31% 3,497 150 30 44 3 23 C.23 – Manufacture of other non-metallic mineral products 3,493 20 301 116 (95) (3) (88) 2,097,261 88 51% 3,337 120 26 10 3 24 C.24 – Manufacture of basic metals 5,687 148 384 97 (63) (1) (60) 4,741,570 269,299 58% 5,222 402 49 14 3 25 C.25 – Manufacture of fabricated metal products, except machinery and equipment 4,452 1 39 789 240 (202) (15) (175) 848,437 16,170 15% 3,993 253 171 36 3 26 C.26 – Manufacture of computer, electronic and optical products 5,897 39 625 86 (87) (10) (70) 161,123 14,410 78% 5,777 74 8 38 3 27 C.27 – Manufacture of electrical equipment 5,114 59 241 623 294 (163) (10) (149) 1,512,126 1,345,964 72% 4,931 115 5 63 2 28 C.28 – Manufacture of machinery and equipment n.e.c. 7,061 56 77 879 303 (248) (9) (232) 428,388 177,588 30% 6,832 187 18 24 3 29 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 7,590 242 1,178 456 (268) (17) (247) 8,578,198 8,239,318 70% 7,361 221 3 4 2 30 C.30 – Manufacture of other transport equipment 4,577 332 496 60 (27) (5) (17) 156,156 52,516 77% 4,463 100 2 13 1 31 C.31 – Manufacture of furniture 1,005 1 88 37 (33) (2) (28) 56,825 148 17% 932 35 29 9 3 32 C.32 – Other manufacturing 1,160 0 4 141 50 (38) (2) (34) 78,931 33% 1,092 39 6 24 3 33 C.33 – Repair and installation of machinery and equipment 3,657 15 33 496 56 (42) (6) (29) 624,957 161,564 48% 3,419 196 29 13 3 34 D – Electricity, gas, steam and air conditioning supply 19,837 3,796 1,559 1,695 259 (133) (34) (85) 16,571,471 2,143,158 64% 14,438 2,144 2,956 299 5 35 D35.1 – Electric power generation, transmission and distribution 17,223 1,612 1,463 1,523 256 (129) (34) (82) 14 896 647 1 499 664 65% 12,088 2,072 2,795 269 3 36 D35.11 – Production of electricity 12,020 677 1,065 1,056 231 (106) (27) (68) 8,839,122 768,318 64% 7,374 1,730 2,649 267 6 37 D35.2 – Manufacture of gas; distribution of gaseous fuels through mains 2,183 2,183 71 67 3 (4) 0 (3) 1,375,801 643,425 74% 2,034 54 95 3 38 D35.3 – Steam and air conditioning supply 431 1 25 105 0 (1) 0 0 299,024 69 71% 316 19 66 30 7 39 E – Water supply; sewerage, waste management and remediation activities 3,465 3 193 368 138 (118) (4) (109) 1,132,316 56,482 40% 2,865 344 184 72 3 40 F – Construction 25,412 129 260 2,815 1,892 (996) (48) (900) 1,022,334 200,431 11% 22,726 1,242 1,284 160 3 41 F.41 – Construction of buildings 15,902 33 134 2,121 1,356 (719) (27) (659) 651,471 176,720 10% 14,433 629 742 98 2 42 F.42 – Civil engineering 3,596 95 75 240 195 (110) (5) (99) 133,545 3,367 25% 3,306 176 106 8 4 43 F.43 – Specialised construction activities 5,913 1 50 454 341 (167) (16) (143) 237,317 20,344 6% 4,987 438 435 53 3 44 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 77,123 5,096 95 8,368 2,778 (1,768) (116) (1,535) 17,878,435 11,477,110 24% 71,104 4,433 1,299 287 3 45 H – Transportation and storage 27,192 1,864 423 2,912 614 (377) (36) (310) 7,923,633 2,190,318 40% 20,697 4,270 2,073 152 4 46 H.49 – Land transport and transport via pipelines 7,262 954 186 738 405 (255) (16) (221) 1,284,179 728,795 16% 6,410 513 329 10 4 47 H.50 – Water transport 10,710 821 11 1,522 77 (51) (2) (46) 3,820,590 622,658 48% 7,044 2,517 1,148 0 5 48 H.51 – Air transport 3,439 0 239 33 (10) (1) (9) 2,215,013 724,659 70% 2,767 495 167 10 4 49 H.52 – Warehousing and support activities for transportation 5,683 89 225 405 92 (56) (17) (31) 600,926 114,202 47% 4,383 743 426 132 4 50 H.53 – Postal and courier activities 98 0 2 7 6 (5) 0 (4) 2,926 4 33% 93 2 3 2 51 I – Accommodation and food service activities 7,670 0 19 1,250 571 (276) (16) (247) 435,286 62,270 10% 5,810 1,137 689 35 4 52 L – Real estate activities 60,264 1 387 6,995 1,890 (929) (126) (708) 1,317,720 1,160,910 8% 29,992 12,035 17,633 604 7 53 Exposures towards sectors other than those that highly contribute to climate change() 114,646 1,523 1,043 10,115 3,038 (1,603) (234) (1,215) 8,416,759 4,331,408 31% 96,622 10,524 5,064 2,435 2 54 K – Financial and insurance activities 26,108 393 105 1,517 450 (293) (38) (223) 2,480,428 1,645,225 34% 20,605 3,257 1,495 750 1 55 Exposures to other sectors (NACE codes J, M – U) 88,538 1,130 938 8,597 2,588 (1,311) (196) (992) 5,936,331 2,686,183 30% 76,017 7,267 3,569 1,685 2 56 TOTAL 447,107 19,340 5,220 47,259 14,974 (8,681) (775) (7,268) 104,155,188 43,660,656 30% 367,389 42,322 32,875 4,521 3 In accordance with Commission Delegated Regulation (EU) 2020/1818 supplementing Regulation (EU) 2016/1011 as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned benchmarks – regulation on climate benchmarks: the sectors listed in Annex I, sections A to H and section L, of Regulation (EC) No. 1893/2006. a b c d e f g h i j k l m n o p In millions of euros 31 December 2023 Gross carrying amount Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions GHG financed emissions (scope 1, scope2 and scope3 emissions of the counterparty) (in tons of CO2 equivalent) GHG emissions (column i): gross carrying amount percentage of the portfolio derived from company-specific reporting ≤ 5 years > 5 year ≤ 10 years > 10 year ≤ 20 years > 20 years Average weighted maturity (in years) of which exposures towards companies excluded from EU Paris-Aligned Benchmarks of which environmentally sustainable (CCM) of which Stage 2 of which non-performing exposures of which Stage 2 of which non-performing exposures of which scope 3 financed emissions 1 Exposures towards sectors that highly contribute to climate change(1) 327,955 20,772 4,117 38,902 10,646 (7,032) (821) (5,659) 269,597 29,369 27,266 1,723 4 2 A – Agriculture, forestry and fishing 12,989 26 969 460 (341) (40) (261) 10,945 1,124 841 78 4 3 B – Mining and quarrying 7,623 5,292 22 544 193 (124) (5) (108) 6,678 840 103 1 3 4 B.05 – Mining of coal and lignite 124 125 58 3 (4) (3) 124 3 5 B.06 – Extraction of crude petroleum and natural gas 3,755 3,775 11 140 101 (63) (1) (58) 3,336 392 27 - 4 6 B.07 – Mining of metal ores 1,656 1 260 63 (31) (2) (26) 1,268 388 4 7 B.08 – Other mining and quarrying 690 10 3 52 20 (17) (2) (14) 628 59 2 - 3 8 B.09 – Mining support service activities 1,398 1,383 7 35 6 (9) - (6) 1,322 1 75 3 9 C – Manufacturing 92,356 4,184 1,115 9,444 2,603 (2,035) (235) (1,663) 87,074 3,822 1,172 289 3 10 C.10 – Manufacture of food products 12,857 205 1 1,081 339 (243) (37) (183) 12,140 545 143 29 3 11 C.11 – Manufacture of beverages 3,279 145 46 (30) (2) (22) 3,161 80 37 1 3 12 C.12 – Manufacture of tobacco products 6 1 6 4 13 C.13 – Manufacture of textiles 961 297 87 (67) (3) (62) 929 10 10 12 3 14 C.14 – Manufacture of wearing apparel 1,156 113 70 (71) (9) (49) 1,143 8 4 1 2 15 C.15 – Manufacture of leather and related products 406 105 32 (24) (2) (22) 400 4 - 2 2 16 C.16 – Manufacture of wood and of products of wood and cork, 1,149 5 96 48 (35) (3) (27) 965 175 8 1 4 17 C.17 – Manufacture of paper and paper products 1,741 336 38 (38) (4) (30) 1,640 92 3 6 2 18 C.18 – Printing and reproduction of recorded media 791 109 58 (37) (5) (29) 744 36 7 3 3 19 C.19 – Manufacture of coke and refined petroleum products 2,987 2,961 17 506 10 (30) (16) (10) 2,097 445 445 5 20 C.20 – Manufacture of chemicals and chemical products 7,878 482 25 771 124 (85) (15) (52) 7,056 720 76 26 3 21 C.21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations 4,939 525 11 (23) (7) (8) 4,698 219 8 14 4 22 C.22 – Manufacture of rubber products 4,919 175 1 320 199 (138) (8) (125) 4,762 100 28 29 3 23 C.23 – Manufacture of other non-metallic mineral products 3,103 29 291 160 (120) (5) (110) 2,922 144 24 13 3 24 C.24 – Manufacture of basic metals 5,393 103 164 441 72 (64) (6) (55) 5,071 262 44 16 3 25 C.25 – Manufacture of fabricated metal products, except machinery and equipment 4,749 7 17 458 237 (193) (16) (170) 4,311 273 128 38 3 26 C.26 – Manufacture of computer, electronic and optical products 6,686 15 574 67 (91) (23) (58) 6,443 210 8 26 3 27 C.27 – Manufacture of electrical equipment 4,635 223 245 578 45 (72) (24) (40) 4,530 59 28 18 2 28 C.28 – Manufacture of machinery and equipment n.e.c. 8,236 67 448 459 (297) (5) (287) 8,053 135 21 27 3 29 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 7,038 23 60 1,015 264 (223) (9) (214) 6,991 38 5 3 2 30 C.30 – Manufacture of other transport equipment 4,331 372 584 47 (26) (7) (18) 4,150 100 78 3 2 31 C.31 – Manufacture of furniture 1,013 - 108 35 (32) (4) (25) 929 56 27 1 2 32 C.32 – Other manufacturing 1,614 3 238 98 (53) (15) (34) 1,540 47 11 16 3 33 C.33 – Repair and installation of machinery and equipment 2,490 5 94 305 57 (41) (7) (32) 2,394 63 28 5 3 34 D – Electricity, gas, steam and air conditioning supply 19,080 3,176 1,339 1,546 312 (138) (17) (102) 13,677 2,323 2,876 204 5 35 D35.1 – Electric power generation, transmission and distribution 15,711 1,103 1,323 1,164 281 (118) (12) (91) 10,650 2,194 2,680 188 7 36 D35.11 – Production of electricity 11,946 816 824 1,100 276 (110) (12) (85) 7,305 1,864 2,626 150 6 37 D35.2 – Manufacture of gas; distribution of gaseous fuels through mains 2,797 2,073 13 192 29 (19) (4) (11) 2,572 106 119 - 1 38 D35.3 – Steam and air conditioning supply 571 3 190 2 (2) 455 22 77 16 1 39 E – Water supply; sewerage, waste management and remediation activities 2,528 88 89 276 108 (72) (4) (62) 1,949 476 83 21 3 40 F – Construction 25,615 249 374 2,923 2,112 (1,499) (49) (1,395) 23,246 1,126 1,140 102 3 41 F.41 – Construction of buildings 15,728 33 134 1,585 1,473 (936) (22) (886) 14,263 681 706 79 3 42 F.42 – Civil engineering 3,713 213 70 626 200 (153) (11) (131) 3,603 53 52 5 4 43 F.43 – Specialised construction activities 6,173 2 171 711 439 (410) (16) (378) 5,381 393 381 18 4 44 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 69,868 5,240 654 10,492 2,120 (1,323) (172) (1,033) 64,766 3,564 1,267 271 3 45 H – Transportation and storage 29,001 2,512 311 3,836 591 (423) (51) (335) 23,390 3,803 1,660 148 4 46 H.49 – Land transport and transport via pipelines 8,600 1,670 93 912 335 (231) (16) (200) 7,577 653 359 11 4 47 H.50 – Water transport 11,170 662 6 1,875 170 (113) (10) (100) 8,352 2,250 568 - 5 48 H.51 – Air transport 3,162 563 21 (19) (6) (11) 2,625 359 171 6 5 49 H.52 – Warehousing and support activities for transportation 5,888 179 212 473 60 (55) (18) (21) 4,661 538 559 130 4 50 H.53 – Postal and courier activities 181 - 12 5 (4) (3) 176 2 3 - 2 51 I – Accommodation and food service activities 7,587 1 1,761 653 (347) (69) (262) 5,774 1,117 642 54 4 52 L – Real estate activities 61,308 5 212 7,111 1,494 (730) (181) (438) 32,097 11,174 17,480 557 7 53 Exposures towards sectors other than those that highly contribute to climate change() 125,900 1,557 4,473 12,197 3,606 (1,828) (265) (1,385) 108,287 10,580 5,048 1,985 2 54 K – Financial and insurance activities 23,702 466 454 1,695 793 (502) (58) (408) 18,745 3,142 1,139 676 2 55 Exposures to other sectors (NACE codes J, M – U) 102,198 1,091 4,019 10,502 2,813 (1,326) (206) (977) 89,542 7,438 3,910 1,309 3 56 TOTAL 453,855 22,329 8,590 51,100 14,252 (8,860) (1,086) (7,044) 377,884 39,949 32,314 3,708 4 In accordance with Commission Delegated Regulation (EU) 2020/1818 supplementing Regulation (EU) 2016/1011 as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned benchmarks – regulation on climate benchmarks: the sectors listed in Annex I, sections A to H and section L, of Regulation (EC) No. 1893/2006. The table “Credit quality of exposures by sector, emissions and residual maturity” is republished as of 31 December 2023 following the new instruction provided by the EBA in April 2024 within its question and answer framework (Q&A 2023_6940). The Group’s total exposure to non-financial corporates stands at EUR 447 billion at 31 December 2024 including loans and advances, debt securities and equity instruments not held for trading. The table shows a mapping of exposures by sector with the detail of those considered to significantly contribute to climate change and may not, under any circumstances, be interpreted as an exposure to transition risk as such. The exposure towards companies excluded from Paris-aligned benchmarks(15) stands at EUR 19 billion and is mainly composed of exposure towards companies active in fossil fuel. These companies have been identified through a double screening based on: the identification of counterparts belonging to oil, gas and coal sectors as identified in the Group’s internal activity referential or according to the NACE code declared by the counterpart; the identification of counterparts deriving their revenue from the fossil fuel value chain as defined in the Climate Benchmark Standard Regulation(16) obtained from an external data provider. The environmentally-sustainable outstandings relate to the exposures identified as aligned to the climate change mitigation objective in relation with Regulation EU 2020/852. They only cover financial instruments with general purpose, granted to European corporates subject to the Non-Financial Reporting Directive in 2024. The alignment share is calculated on the basis of the ratio of EU Taxonomy-aligned turnover disclosed by these counterparts. The methodology is detailed in section 7.1.3 Activities aligned within the meaning of the European Taxonomy in chapter 7. Sustainability statements As of 31 December 2024, the estimated amount of greenhouse gas financed emissions of the counterparts is 104.2 MtCO2e. The estimate of greenhouse gas financed emissions of the counterparts is calculated according to the Partnership for Carbon Accounting Financials (PCAF) Standard A methodology. In order to determine the share of emissions affected to the Group’s financing, the scope 1 and 2 emissions reported by the counterparts are weighted by the share of financing held by BNP Paribas over the client’s total financing, represented by the enterprise value for listed companies and the total equity and debt (loans and debt securities) for unlisted companies. The average data quality score of the Group’s financed emissions according to PCAF standard is 3.8 as of end-December 2024. It is determined by weighting the gross carrying amount by the quality score of the greenhouse gases emissions used. The scale of data quality score ranges from 1, for collected and verified data, to 5 for the average sector and regional intensities. The estimated amount of greenhouse gas financed emissions of the Group’s counterparts on their scopes 1 and 2 is 60.5 MtCO2e. Scopes 1 and 2 greenhouse gas data collected from counterparts or data providers cover 29% of the Group’s total outstanding amount granted to non-financial corporates. Where clients’ greenhouse gas emissions are not available, the Group relies on average emissions intensities of the counterpart’s sector to complete the scope of calculation. The Group uses Exiobase estimates provided by PCAF, more specifically the emission intensities expressed in terms of greenhouse gas emissions per unit asset lent or financed (CO2e/M€) for a given sector and geography. In line with PCAF recommendations, the Group applies emissions intensities at sectoral and regional level. The estimated amount of greenhouse gas financed emissions of the Group’s counterparts on their scope 3 is 43.7 MtCO2e as of 31 December 2024 in the oil and gas and automotive sectors, which are the sectors for which, at this stage, the Group has reliable and relevant data. Data is published on these two sectors despite the multiple counting of the gas and oil usage by end-users in the automotive industry. When data is not reported by clients of these sectors, the Group does not use the average intensities by sector and geography proposed by PCAF. Indeed, PCAF intensities are limited to the upstream activities of the value chain and do not cover the use of fuels of the downstream activities. Therefore, they are significantlyunderestimated. The Group applies average intensities per euro lent observed on the counterparts of these sectors which are in the Group’s portfolio and for which the data are available. These estimates are of low quality and are likely to change significantly downwards or upwards along with clients’ disclosures. Overall, scope 3 data is available for less than 18% of the Group’s outstanding amount granted to non-financial corporates. In sectors other than oil and gas and automotive, greenhouse gas data are either not published by counterparts (coverage below 30%) or appear to be non-homogeneous and linked to segments of the value chain for which there are no decarbonisation levers that can be directly actionable. Alignment metrics by sector ➤TABLE N° 108 : BANKING BOOK - INDICATORS OF POTENTIAL CLIMATE CHANGE TRANSITION RISK: ALIGNMENT METRICS Sector NACE Sectors (a minima) Portfolio gross carrying amoun (Mn EUR) Alignment metric Year of reference Distance to the 2030 milestone of the IEA NZE2050, in % Target (year of reference + 3 years) 1 Power generation D35.1, D35.3 15,313 129 gCO2/kWh 2024 - 34% 146(1) 2 Oil & Gas B06, C19, D35.2 6,156 9.5 MtCO2e 2024 - 47% 8.9 3 Automotive C29 5,564 145 gCO2/km WLTP 2024 120% 137(1) 4 Aviation H51, H52, C30, C33 7,488 904 gCO2e/RTK 2023 23% 853 5 Shipping H50 5,927 8.2 gCO2e/dwt.nm 2023 55% 7.4 6 Cement B08 599 0.63 tCO2/t cementitious product 2023 34% 0.58 7 Steel C24, C25, B05, B07 3,184 1.5 tCO2/t steel 2024 23% 1.3 8 Aluminium C24, C25, B05, B07 256 5.3 tCO2e/t aluminium 2024 - 40% 5.5 9 Commercial real estate L 15,175 27.7 kg CO2e/m² 2023 3% 24.0 Target 2025 The above template provides information on alignment efforts towards Paris agreement objectives on the intensive sectors in terms of the greenhouse gas emissions of the Group’s portfolio. This information is published using the same scopes and methodologies as those of the credit portfolio sector alignment objectives presented in section 7.1.2 Climate Change, paragraph 3. Metrics and targets of chapter 7. The gross carrying amount is determined as of 31 December 2024 on all the counterparts in the sectors covered by the alignment objectives of the Group’s credit portfolio , the NACE sectors included in the template provided by the EBA are non-exhaustive and are provided on an indicative basis only. The alignment metrics used are the same as the metrics presented in section 7.1.2 Climate change, paragraph 3. Metrics and targets of chapter 7. It should be noted that the alignment metric for the automotive sector is measured on the average intensity of vehicles produced over the year as only the portfolio of car manufacturer loans is covered. The distance between the alignment metric at the reference date and the 2030 milestone for each sector is calculated in relation to the IEA’s Net-Zero Emissions (NZE) 2050 scenario in accordance with the instructions. Except for the automotive and power generation sectors for which the targets correspond to the ones set for the Group’s 2025 commitments, the disclosed targets are projections at three years from the reference year are interpolated between the reference year and 2030, the date of the Group’s credit portfolio sector alignment commitments. These intermediate points are estimates of the sectoral alignment trajectories at 3 years. ➤Table 109: EXPOSURES TO TOP 20 CARBON-INTENSIVE FIRMS a b c d e 31 December 2024 Gross carrying amount (in millions of euros) Gross carrying amount towards the counterparties compared to total gross carrying amount (aggregate)(1) of which environmentally sustainable (CCM) (in millions of euros) Weighted average maturity (in years) Number of top 20 polluting firms included 1 TOTAL 5,457 0.46% 17.2 4 9 For counterparties among the top 20 carbon-emitting companies in the world. The information above does not include the counterparties for which the commercial relationship has ended and for which the residual outstanding is not significant. a b c d e 31 December 2023 Gross carrying amount (in millions of euros) Gross carrying amount towards the counterparties compared to total gross carrying amount (aggregate)(1) of which environmentally sustainable (CCM) (in millions of euros) Weighted average maturity (in years) Number of top 20 polluting firms included 1 TOTAL 6,407 0.58% 14.7 4 11 For counterparties among the top 20 carbon-emitting companies in the world. The identification of the counterparties making up the list of the 20 most carbon-intensive firms worldwide was updated in 2024 and is based on the public list provided by Carbon Majors(18). The assets included in the table are composed of loans and advances, debt securities and equity instruments not held for trading granted to these business groups. They are compared to the gross carrying amount of the assets included in the banking book, excluding financial assets held for trading and held for sale. After matching on a name-by-name basis the Climate Accountability Institute list with the internal third parties referential at business group level, the related carrying amount, corresponding to the financing of 9 of them, has been aggregated and stands at EUR 5 billion at end-December 2024. The environmentally-sustainable gross carrying amount relates to the exposures identified as aligned to the climate change mitigation objective in relation with Regulation EU 2020/852. They only cover financial instruments with general purpose, granted to European corporates subject to the Non-Financial Reporting Directive in 2024. The alignment share is calculated on the basis of the ratio of EU Taxonomy-aligned turnover disclosed by these counterparts. The methodology is detailed in section 7.1.3 Activities aligned within the meaning of the European Taxonomy in chapter 7. ENERGY EFFICIENCY OF THE COLLATERAL ➤TABLE 110: LOANS COLLATERALISED BY IMMOVABLE PROPERTY – ENERGY EFFICIENCY OF THE COLLATERAL a b c d e f g h i j k l m n o p In millions of euros 31 December 2024 Total gross carrying amount Level of energy efficiency (EP score in kWh/m2 of collateral) Level of energy efficiency (EPC label of collateral) Without EPC label of collateral 0; ≤ 100 > 100; ≤ 200 > 200; ≤ 300 > 300; ≤ 400 > 400; ≤ 500 > 500 A B C D E F G Of which level of energy efficiency (EP score in kWh/m2 of collateral) estimated 1 Total EU area 203,611 25,969 54,328 44,854 25,573 17,612 11,539 6,585 5,242 6,288 6,720 6,059 5,326 4,120 163,269 85% 2 Of which Loans collateralised by commercial immovable property 70,357 9,364 20,979 15,851 6,719 4,522 5,062 808 1,638 1,540 1,931 1,775 512 579 61,574 87% 3 Of which Loans collateralised by residential immovable property 133,081 16,606 33,348 28,997 18,835 12,943 6,477 5,777 3,605 4,748 4,789 4,284 4,814 3,541 101,523 84% 4 Of which Collateral obtained by taking possession: residential and commercial immovable properties 172 1 6 19 147 172 100% 5 Of which Level of energy efficiency (EP score in kWh/m2 of collateral) estimated 138,976 17,268 43,761 35,956 20,200 14,530 7,262 138,976 100% 6 Total non-EU area 6,126 93 339 806 160 50 105 32 145 482 101 33 11 11 5,311 14% 7 Of which Loans collateralised by commercial immovable property 2,578 34 252 709 88 14 74 15 128 466 74 13 1,882 25% 8 Of which Loans collateralised by residential immovable property 3,548 60 87 97 73 37 30 17 17 16 27 20 11 11 3,429 8% 9 Of which Collateral obtained by taking possession: residential and commercial immovable properties 10 Of which Level of energy efficiency (EP score in kWh/m2 of collateral) estimated 145 12 38 51 26 12 5 145 100% a b c d e f g h i j k l m n o p In millions of euros 31 December 2023 Total gross carrying amount Level of energy efficiency (EP score in kWh/m2 of collateral) Level of energy efficiency (EPC label of collateral) Without EPC label of collateral 0; ≤ 100 > 100; ≤ 200 > 200; ≤ 300 > 300; ≤ 400 > 400; ≤ 500 > 500 A B C D E F G Of which level of energy efficiency (EP score in kWh/m2 of collateral) estimated 1 Total EU area 200,874 21,533 52,250 43,576 25,784 18,787 11,918 1,854 3,072 3,940 4,472 4,123 4,290 3,363 175,759 85% 2 Of which Loans collateralised by commercial immovable property 67,486 8,054 20,142 15,074 6,525 4,499 4,866 152 633 636 1,126 657 158 364 63,760 87% 3 Of which Loans collateralised by residential immovable property 133,182 13,480 32,106 28,495 19,237 14,112 7,052 1,702 2,439 3,304 3,346 3,466 4,132 2,999 111,792 83% 4 Of which Collateral obtained by taking possession: residential and commercial immovable properties 207 2 7 22 176 207 100% 5 Of which Level of energy efficiency (EP score in kWh/m2 of collateral) estimated 145,656 18,328 44,436 37,196 22,215 15,658 7,823 145,656 100% 6 Total non-EU area 5,577 18 183 298 53 26 29 2 128 229 14 10 9 8 5,178 4% 7 Of which Loans collateralised by commercial immovable property 1,855 0 118 218 0 118 218 0 1,519 8 Of which Loans collateralised by residential immovable property 3,722 18 65 80 53 25 29 2 10 11 14 10 9 8 3,658 6% 9 Of which Collateral obtained by taking possession: residential and commercial immovable properties 10 Of which Level of energy efficiency (EP score in kWh/m2 of collateral) estimated 145 7 36 54 30 13 5 145 100% The Group’s total portfolio of loans collateralised by immovable properties stands at EUR 210 billion at 31 December 2024 including loans collateralised by both commercial and residential immovable properties and collateral obtained by taking possession. Its breakdown by energy efficiency is displayed in two forms: its value in kWh/m2 and in label (A to G) of the collateral as defined in the Energy Performance of Buildings Directive(19) and the Energy Efficiency Directive(20). The Energy Performance Certificates (EPCs) provide information on the energy efficiency of the collateral, which enables the Group to: support/advise clients on their home purchase and during their home's sustainable transition; integrate EPC-related information into the credit decision process and credit risk management framework; improve the accuracy of financial risk measures performed in climate scenario analyses. The availability of Energy Performance Certificates across Europe is nevertheless not homogeneous, as it strongly relies on geographical specificities, such as national data protection laws in Belgium, or real estate local market practices for instance. Moreover, open-source databases are sometimes available, however they rarely cover a whole country and often show poor data quality, as they are only updated at the last sale of the assets, often more than two years ago. As Energy Performance Certificates are based on EU regulations, data for real estate collaterals located outside the European Union cannot be obtained except in a case where a mapping with the EU EPC label exists. As in most cases no mapping exists, the columns corresponding to the EPC label of real estate collaterals located outside the EU have been left blank and only the energy efficiency in kWh/m2 has been filled in with estimates, when relevant. As a result, Energy Performance Certificates (EPCs) data are either: collected by entities, during the loan origination process. In this case they are considered as reported data; obtained from central national databases. When a 1-to-1 matching with the financed counterpart is possible, EPC data is considered as reported. When the matching is deduced (based on the address, for example), EPC data is considered as estimated; estimated on the basis of proxies or rules (based on the mean energy efficiency for a region or a country for example). Loans guaranteed by a mutual guarantee fund, especially the “Crédit Logement” framework in France, do not fall under the definition of loans collateralised by immovable property and are not reported in this table. Should these loans have been reported, the total gross carrying amount of real estate loans at 31 December 2024 would have increased by EUR 78 billion, of which EUR 7 billion in the “0; < 100” bucket, EUR 26 billion in the “> 100; ≤ 200” bucket, EUR 26 billion in the “> 200; ≤ 300” bucket, EUR 13 billion in the “> 300; ≤ 400” bucket, EUR 4 billion in the “> 400; ≤ 500” bucket, and EUR 2 billion in the “> 500” bucket. BANKING BOOK – INDICATORS OF POTENTIAL CLIMATE CHANGE PHYSICAL RISK ➤TABLE 111: EXPOSURES SUBJECT TO POTENTIAL PHYSICAL RISK a b c d e f g h i j In millions of euros 31 December 2024 Gross carrying amount of which exposures sensitive to impact from climate change physical events Breakdown by maturity bucket of which exposures sensitive to impact from chronic climate change events of which exposures sensitive to impact from acute climate change events of which exposures sensitive to impact both from chronic and acute climate change events ≤ 5 years > 5 years ≤ 10 years > 10 years ≤ 20 years > 20 years Average weighted maturity (in years) 1 A – Agriculture, forestry and fishing 11,333 46 5 4 4 55 2 B – Mining and quarrying 5,073 4 3 C – Manufacturing 95,092 1 3 1 4 D – Electricity, gas, steam and air conditioning supply 19,837 5 5 E – Water supply; sewerage, waste management and remediation activities 3,465 3 6 F – Construction 25,412 28 2 2 3 31 7 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 77,123 54 3 1 3 58 8 H – Transportation and storage 27,192 2 4 2 9 L – Real estate activities 60,264 577 231 339 12 7 1,159 10 Loans collateralised by residential immovable property 15,246 268 35 26 3 4 332 11 Loans collateralised by commercial immovable property 57,689 1,013 132 99 11 4 1,255 12 Repossessed collaterals 172 13 Exposures to other sectors (NACE codes I, J, M - U) 122,316 255 29 14 6 2 304 14 TOTAL 447,107 962 270 360 18 1,611 a b c d e f g h i j In millions of euros 31 December 2023 Gross carrying amount of which exposures sensitive to impact from climate change physical events Breakdown by maturity bucket of which exposures sensitive to impact from chronic climate change events of which exposures sensitive to impact from acute climate change events of which exposures sensitive to impact both from chronic and acute climate change events ≤ 5 years > 5 years ≤ 10 years > 10 years ≤ 20 years > 20 years Average weighted maturity (in years) 1 A – Agriculture, forestry and fishing 12,989 51 5 4 4 60 2 B – Mining and quarrying 7,623 3 C – Manufacturing 92,356 1 3 1 4 D – Electricity, gas, steam and air conditioning supply 19,080 5 E – Water supply; sewerage, waste management and remediation activities 2,528 6 F – Construction 25,615 164 8 8 1 3 181 7 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 69,868 73 4 1 3 79 8 H – Transportation and storage 29,001 1 4 2 9 L – Real estate activities 61,308 594 207 323 10 7 1,135 10 Loans collateralised by residential immovable property 13,749 208 45 62 3 4 319 11 Loans collateralised by commercial immovable property 55,591 874 189 262 13 4 1,337 12 Repossessed collaterals 227 13 Exposures to other sectors (NACE codes I – K & M – U) 133,488 287 29 14 5 3 336 14 TOTAL 453,855 1,172 254 351 17 1,794 The table before shows the potential exposures sensitive to physical risks. Disclaimer: Given the current lack of stability of the models, the data gaps and the guidelines' uncertainty, the Group has opted for the disclosure of impacts using the physical risk scenarios of the 2022 European Central Bank Climate stress test. The results of the flood, heatwave and drought scenarios of the ECB’s 2022 climate stress test have been adjusted to reflect the materiality of chronic physical risk factors over the horizon of the estimated duration of the credit portfolios, by only retaining exposures to non-financial companies to match the model expected by the EBA. These figures are not comparable with other banks' publications, having taken other disclosure options, and are published for information only. These figures are an attempt to flag exposures potentially sensitive to physical risk events and should not be understood as direct or integrated risks. The Group expects that the instructions and working assumptions will be clarified with a common methodology to be applied for future years. It should also be noted that these analyses are based on an adjusted version of the ECB scenarios initially presenting a time horizon of 2050, to reflect the materiality of the chronic physical risk factors to the expected duration of the credit portfolios, all other things being equal. Physical risks are defined as the risks of any negative financial impact on the institution stemming from the current or prospective impacts of physical effects of environmental factors on its counterparties or invested assets. The presentation of assets subject to climate change physical risks in the Group’s balance sheet requires the definition of methodologies and hypotheses to identify the corresponding counterparties. Two physical risk scenarios were retained by the European Central Bank for its 2022 climate stress test exercise. They are based on anticipating today the expected chronic heat levels and an acute river flooding event forecast for 2050. The acute extreme climate events are managed through this thirty-year anticipation of severe events that are plausible in 2050. No chronic physical risk events were specifically covered in the 2022 ECB climate stress test. In the ECB drought and heat risk scenario, the economic effects of a severe drought and heatwave in Europe were modelled. Extended periods of hot weather can lead to sizeable output losses across several economic sectors. Through their exposure to these vulnerable industries, banks could sustain losses. To limit the scope of the exercise, the scenario only models the shocks to sectoral gross value-added growth. The scenario calibration is based on NGFS (Network for Greening the Financial System) estimates for labour productivity shocks due to heat stress across relevant countries in 2050. Thus, the key transmission channel of heatwave risk to the economy is through labour productivity. For example, a severe heatwave can weaken the productivity of construction workers or that of farmers who face harsher working conditions. For this drought risk scenario, BNP Paribas provided its corporate exposures not secured by real estate with headquarters in France, Belgium, Italy, Germany and Luxembourg (main exposures of the Group). River flooding has historically been a major source of physical risk in Europe and, with a rise in extreme levels of precipitation being associated with climate change, this risk is expected to increase. Under the river flooding scenario used by the ECB in its 2022 climate stress test, it is assumed that severe floods sweep across Europe on the first day of projection. While the probability of such an event is very low, it allows relevant flood risk scenarios to be created across the European Union. Flood risk is different across Europe and can vary significantly even within a few kilometres. Therefore, the flood risk scenario accounts for within-country variation in risks. As such, shocks to residential and commercial real estate exposures are estimated at NUTS3 regional level (“Nomenclature des Unités Territoriales Statistiques” – the level 3 being departments for France), according to a specific flood risk level. The flood risk scenario was developed based on insights from the work carried out by the European Commission’s Joint Research Centre on flood risk, as well as from granular geospatial flood risk data collected for the purposes of the ECB economy-wide climate stress test based on the Four Twenty-Seven dataset. For this flood risk scenario, BNP Paribas provided its commercial real estate exposures located in France, Belgium and Italy (main exposures of the Group).. BANKING BOOK – MITIGATION ACTIONS In accordance with EBA instructions, publications relating to the GAR (Green Asset Ratio) presented below in tables 112 to 114 are based on the alignment with the taxonomy of the counterparty’s turnover for the financing component without determined allocation. The methodology for identifying eligible and aligned assets is described in section 7.1.3 Aligned activities within the meaning of European taxonomy of chapter 7. The increase in the Green Asset Ratio in 2024 reflects the inclusion of aligned habitat credits, identified through a comprehensive valuation method applied since 2024. Due to its methodological imbalance and operational complexity, the GAR cannot reflect all the financing of the transition to a low-carbon economy for the Group. As a result, the Group publishes an internal ratio, which tracks the evolution of the Group's financing towards assets contributing to Europe's carbon neutrality objectives. This indicator, which is detailed in section 7.1.3 Aligned activities under the EU taxonomy, measures the share of assets aligned with key climate performance criteria over the assets eligible to climate objectives. ➤TABLE 112: SUMMARY OF KEY PERFORMANCE INDICATORS (KPIs) ALIGNED WITH THE TAXONOMY a b c f 31 December 2024 Key performance indicators Proportion of eligible assets in relation to total assets Climate change mitigation Climate change adaptation Total (climate change mitigation + climate change adaptation) GAR stock 1.82% 0.02% 1.84% 11.21% GAR flow (11.50)% (0.07)% (11.56)% (125.36)% a b c f 31 December 2023 Key performance indicators Proportion of eligible assets in relation to total assets Climate change mitigation Climate change adaptation Total (climate change mitigation + climate change adaptation) GAR stock 0.77% 0.01% 0.78% 11.78% GAR flow ➤TABLE 113: ASSETS FOR THE GAR CALCULATION a b c d e f g h i j k l m n o p In millions of euros Gross carrying amount 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) TOTAL (CCM + CCA) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which specialised lending of which transitional of which enabling of which specialised lending of which adaptation of which enabling of which specialised lending of which transitional/adaptation of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not held for trading eligible for the GAR calculation 536,690 271,118 23,296 8,576 2,800 3,535 199 274,653 23,495 8,576 2,800 2 Financial corporations 46,999 9,936 632 6 383 132 - 10,068 632 6 383 3 Credit institutions 18,347 3,256 1 1 1 3,258 1 1 4 Loans and advances 5,493 1,745 1 1 1 1,746 1 1 5 Debt securities 7,678 1,378 1,378 6 Equity instruments 5,176 133 133 7 Other financial corporations 28,653 6,680 631 6 382 131 6,811 631 6 382 8 of which investment firms 8,212 2,415 184 4 167 4 2,419 184 4 167 9 Loans and advances 2,895 629 67 4 51 2 630 67 4 51 10 Debt securities 4,708 1,779 116 116 2 1,781 116 116 11 Equity instruments 609 7 - 7 - - 12 of which management companies 5,517 2,436 223 2 214 127 2,563 223 2 214 13 Loans and advances 3,545 1,836 189 1 181 112 1,948 189 1 181 14 Debt securities 882 490 34 1 33 15 504 34 1 33 15 Equity instruments 1,090 111 111 16 of which insurance undertakings 14,923 1,829 225 1 1,829 225 1 17 Loans and advances 7,420 890 117 1 890 117 1 18 Debt securities 4,038 420 81 420 81 19 Equity instruments 3,465 519 27 519 27 20 Non-financial corporations (subject to NFRD disclosure obligations) 166,761 29,306 5,220 648 2,417 3,403 199 32,709 5,418 648 2,417 21 Loans and advances 160,350 27,336 4,838 648 2,252 3,373 195 30,709 5,034 648 2,252 22 Debt securities 1,962 1,190 314 - 162 5 3 1,195 317 - 162 23 Equity instruments 4,449 780 67 - 3 25 - 805 68 - 3 24 Households 311,173 231,857 17,444 7,922 - 231,857 17,444 7,922 - 25 of which loans collateralised by residential immovable property 207,123 207,123 17,444 7,922 207,123 17,444 7,922 26 of which building renovation loans 4,942 4,942 4,942 27 of which loans for motor vehicles 19,792 19,792 19,792 28 Local government financing 11,756 19 19 29 Housing financing 30 Other local government financing 11,756 19 19 31 Collateral obtained by taking possession: residential and commercial immovable properties 191 32 TOTAL GAR ASSETS 536,881 271,118 23,296 8,576 2,800 3,535 199 - - - 274,653 23,495 - 8,576 2,800 Assets excluded from the numerator for GAR calculation (covered in the denominator) 33 EU non-financial corporations (not subject to NFRD disclosure obligations) 135,458 34 Loans and advances 133,902 35 Debt securities 420 36 Equity instruments 1,136 37 Non-EU non-financial corporations (not subject to NFRD disclosure obligations) 145,840 38 Loans and advances 140,851 39 Debt securities 4,537 40 Equity instruments 452 41 Derivatives 20,930 42 On demand interbank loans 8,543 43 Cash and cash-related assets 2,544 44 Other assets (goodwill, commodities, etc.) 426,506 45 TOTAL ASSETS IN THE DENOMINATOR (GAR) 1,276,702 Other assets excluded from both the numerator and the denominator for the GAR calculation - 46 Sovereigns 173,763 47 Central bank exposures 196,875 48 Trading book 802,995 49 TOTAL ASSETS EXCLUDED FROM THE NUMERATOR AND THE DENOMINATOR 1,173,632 50 TOTAL ASSETS 2,450,334 a b c d e f g h i j k l m n o p In millions of euros 31 December 2023 Gross carrying amount Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) TOTAL (CCM + CCA) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which specialised lending of which transitional of which enabling of which specialised lending of which adaptation of which enabling of which specialised lending of which transitional/adaptation of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not held for trading eligible for the GAR calculation 659,823 276,571 9,137 5,808 2,631 598 117 - - - 277,169 9,254 - 5,808 2,631 2 Financial corporations 82,051 6,803 546 495 403 34 4 - - - 6,837 550 - 495 403 3 Credit institutions 12,674 978 - - - - - 978 - - 4 Loans and advances 1,356 253 - - - - - 253 - - 5 Debt securities 6,137 725 - - - - - - - - 725 - - - - 6 Equity instruments 5,181 - - - - - - - - - - 7 Other financial corporations 69,377 5,825 546 495 403 34 4 - - - 5,859 550 495 403 8 of which investment firms 47,567 3,108 323 323 231 21 3 - - - 3,128 326 - 323 231 9 Loans and advances 31,470 1,799 221 221 130 21 3 - - - 1,820 224 - 221 130 10 Debt securities 11,305 1,309 102 102 102 - - - - - 1,309 102 - 102 102 11 Equity instruments 4,792 - - - - - - - - - - 12 of which management companies 8,039 2,231 172 172 171 13 1 - - - 2,244 173 - 172 171 13 Loans and advances 6,424 2,219 172 172 171 13 1 - - - 2,233 173 - 172 171 14 Debt securities 752 12 - - - - - - - - 12 - - - - 15 Equity instruments 863 - - - - - - - - - - - - 16 of which insurance undertakings 13,771 487 51 - - - - - - - 487 51 - - - 17 Loans and advances 5,727 48 - - - - - - - - 48 - - - - 18 Debt securities 3,445 8 - - - - - - - - 8 - - - - 19 Equity instruments 4,599 431 51 - - - - - - 431 51 - - 20 Non-financial corporations (subject to NFRD disclosure obligations) 258,850 42,107 8,590 5,313 2,228 564 113 - - - 42,672 8,704 - 5,313 2,228 21 Loans and advances 250,750 37,862 7,585 4,769 1,935 564 113 - - - 38,427 7,699 - 4,769 1,935 22 Debt securities 2,045 1,137 534 534 290 - - - - - 1,137 534 - 534 290 23 Equity instruments 6,055 3,108 471 9 3 - - - - 3,108 471 9 3 24 Households 307,637 227,656 - - - 227,656 - - - - 25 of which loans collateralised by residential immovable property 208,499 208,499 - - - 208,499 - - - - 26 of which building renovation loans 4,617 4,617 - - - 4,617 - - - - 27 of which loans for motor vehicles 14,540 14,540 - - - 14,540 - - - - 28 Local government financing 11,286 4 - - - - - - - - 4 - - - - 29 Housing financing - - - - - - - - - - - - - - 30 Other local government financing 11,286 4 - - - - - - - - 4 - - - - 31 Collateral obtained by taking possession: residential and commercial immovable properties 227 - - - - - - - - - - - - - - 32 TOTAL GAR ASSETS 660,050 276,571 9,137 5,808 2,631 598 117 - - - 277,169 9,254 - 5,808 2,631 Assets excluded from the numerator for GAR calculation (covered in the denominator) 33 EU non-financial corporations (not subject to NFRD disclosure obligations) 60,919 34 Loans and advances 59,684 35 Debt securities 177 36 Equity instruments 1,058 37 Non-EU non-financial corporations (not subject to NFRD disclosure obligations) 129,776 38 Loans and advances 125,265 39 Debt securities 4,207 40 Equity instruments 305 41 Derivatives 21,814 42 On demand interbank loans 7,139 43 Cash and cash-related assets 2,694 44 Other assets (goodwill, commodities, etc.) 308,610 45 TOTAL ASSETS IN THE DENOMINATOR (GAR) 1,191,002 Other assets excluded from both the numerator and the denominator for the GAR calculation 46 Sovereigns 141,256 47 Central bank exposures 300,225 48 Trading book 719,602 49 TOTAL ASSETS EXCLUDED FROM THE NUMERATOR AND THE DENOMINATOR 1,161,082 50 TOTAL ASSETS 2,352,085 ➤TABLE 114: GAR (%) a b c d e f g h i j k l m n o p % (of total assets included in the denominator) 31 December 2024: Stock indicators Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) TOTAL (CCM + CCA) Proportion of eligible assets in relation to total assets of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which specialised lending of which transitional of which enabling of which specialised lending of which adaptation of which enabling of which specialised lending of which transitional/adaptation of which enabling 1 GAR 21.24% 1.82% 0.67% 0.22% 0.28% 0.02% - 21.51% 1.84% 0.67% 0.22% 11.21% 2 Loans and advances, debt securities and equity instruments not held for trading and eligible for the GAR calculation 50.52% 4.34% 1.60% 0.52% 0.66% 0.04% 51.18% 4.38% 1.60% 0.52% 11.21% 3 Financial corporations 21.14% 1.35% 0.01% 0.82% 0.28% 0.00% 21.42% 1.35% 0.01% 0.82% 0.41% 4 Credit institutions 17.75% 0.01% 0.00% 0.01% 0.01% 0.00% 17.76% 0.01% 0.00% 0.01% 0.13% 5 Other financial corporations 23.31% 2.20% 0.02% 1.33% 0.46% 0.00% 23.77% 2.20% 0.02% 1.33% 0.28% 6 of which investment firms 29.41% 2.23% 0.05% 2.04% 0.05% 0.00% 29.45% 2.24% 0.05% 2.04% 0.10% 7 of which management companies 44.16% 4.04% 0.03% 3.88% 2.30% 0.00% 46.46% 4.04% 0.03% 3.88% 0.10% 8 of which insurance undertakings 12.25% 1.51% 0.00% 0.01% 0.00% 0.00% 12.25% 1.51% 0.00% 0.01% 0.07% 9 Non-financial corporations (subject to NFRD disclosure obligations) 17.57% 3.13% 0.39% 1.45% 2.04% 0.12% 19.61% 3.25% 0.39% 1.45% 1.33% 10 Households 74.51% 5.61% 2.55% 74.51% 5.61% 2.55% 9.46% 11 of which loans collateralised by residential immovable property 100.00% 8.42% 3.82% 100.00% 8.42% 3.82% 8.45% 12 of which building renovation loans 100.00% 100.00% 0.20% 13 of which motor vehicle loans 100.00% 100.00% 0.81% 14 Local government financing 0.16% 0.16% 0.00% 15 Housing financing 16 Other local government financing 0.16% 0.16% 0.00% 17 Collateral obtained by taking possession: residential and commercial immovable properties - 0.00% a b c d e f g h i j k l m n o p % (of total assets included in the denominator) 31 December 2023: Stock indicators Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) TOTAL (CCM + CCA) Proportion of eligible assets in relation to total assets of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which specialised lending of which transitional of which enabling of which specialised lending of which adaptation of which enabling of which specialised lending of which transitional/adaptation of which enabling 1 GAR 23.22% 0.77% 0.49% 0.22% 0.05% 0.01% 23.27% 0.78% 0.49% 0.22% 11.78% 2 Loans and advances, debt securities and equity instruments not held for trading and eligible for the GAR calculation 41.92% 1.38% 0.88% 0.40% 0.09% 0.02% 42.01% 1.40% 0.88% 0.40% 11.78% 3 Financial corporations 8.29% 0.67% 0.60% 0.49% 0.04% 8.33% 0.67% 0.60% 0.49% 0.29% 4 Credit institutions 7.71% - - - 7.72% - - - 0.04% 5 Other financial corporations 8.40% 0.79% 0.71% 0.58% 0.05% 0.01% 8.45% 0.79% 0.71% 0.58% 0.25% 6 of which investment firms 6.53% 0.68% 0.68% 0.49% 0.04% 0.01% 6.58% 0.69% 0.68% 0.49% 0.13% 7 of which management companies 27.75% 2.14% 2.14% 2.13% 0.17% 0.01% 27.91% 2.15% 2.14% 2.13% 0.10% 8 of which insurance undertakings 3.54% 0.37% - - 3.54% - - - 0.02% 9 Non-financial corporations (subject to NFRD disclosure obligations) 16.27% 3.32% 2.05% 0.86% 0.22% 0.04% 16.49% 3.36% 0.00% 2.05% 0.86% 1.81% 10 Households 74.00% 74.00% 0.00% 0.00% 9.68% 11 of which loans collateralised by residential immovable property 100.00% 100.00% 8.86% 12 of which building renovation loans 100.00% - - 100.00% 0.20% 13 of which motor vehicle loans 100.00% 100.00% 0.62% 14 Local government financing 0.04% - - - 15 Housing financing - - 16 Other local government financing 0.04% - - - 17 Collateral obtained by taking possession: residential and commercial immovable properties the percentages of the alignment and eligibility ratios are computed considering as denominator the subtotal of each counterparty category ➤TABLEAU N° 115 : GAR FLOW (%) q r s t u v w x y z aa ab ac ad ae af % (compared to total covered assets in the denominator) 31 December 2024: KPIs on flows Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) TOTAL (CCM + CCA)TOTAL (CCM + CCA) Proportion of total new assets covered Proportion of new eligible assets funding taxonomy relevant sectors Proportion of new eligible assets funding taxonomy relevant sectors Proportion of new eligible assets funding taxonomy relevant sectors Of which environmentally sustainable Of which environmentally sustainable Of which environmentally sustainable Of which specialised lending Of which transitional Of which enabling Of which specialised lending Of which transitional Of which enabling Of which specialised lending Of which transitional Of which enabling 1 GAR + 4,43% - 11,50% - 2,25% - 0,14% - 2,38% - 0,07% + 2,04% - 11,56% - 2,25% - 0,14% - 125,36% 2 Loans and advances, debt securities and equity instruments not held for trading and eligible for the GAR calculation + 4,43% - 11,50% - 2,25% - 0,14% - 2,38% - 0,07% + 2,04% - 11,57% - 2,25% - 0,14% - 125,33% 3 Financial corporations - 8,94% - 0,25% + 1,39% + 0,06% - 0,28% + 0,01% - 9,22% - 0,23% + 1,39% + 0,06% - 35,68% 4 Credit institutions + 40,17% + 0,02% 0,00% + 0,02% + 0,02% 0,00% + 40,19% + 0,02% 0,00% + 0,02% + 5,77% 5 Other financial corporations - 2,10% - 0,21% + 1,20% + 0,05% - 0,24% + 0,01% - 2,34% - 0,20% + 1,20% + 0,05% - 41,45% 6 of which investment firms + 1,76% + 0,36% + 0,81% + 0,16% + 0,04% + 0,01% + 1,80% + 0,36% + 0,81% + 0,16% - 40,06% 7 of which management companies - 8,15% - 2,02% + 6,74% - 1,70% - 4,51% + 0,04% - 12,66% - 1,98% + 6,74% - 1,70% - 2,57% 8 of which insurance undertakings + 116,37% + 15,04% - 0,02% + 0,05% 0,00% 0,00% + 116,37% + 15,04% - 0,02% + 0,05% + 1,17% 9 Non-financial corporations (subject to NFRD disclosure obligations) + 13,90% + 3,66% + 5,07% - 0,20% - 3,08% - 0,09% + 10,82% + 3,57% + 5,07% - 0,20% - 93,73% 10 Households + 118,76% + 415,28% + 118,76% + 415,28% + 3,60% 11 of which loans collateralised by residential immovable property + 100,00% - 1.267,19% + 100,00% - 1.267,19% - 1,40% 12 of which building renovation loans + 100,00% + 100,00% + 0,33% 13 of which motor vehicle loans + 100,00% + 100,00% + 5,35% 14 Local government financing + 3,08% + 3,08% + 0,48% 15 Housing financing 16 Other local government financing + 3,08% + 3,08% + 0,48% 17 Collateral obtained by taking possession: residential and commercial immovable properties For consistency purpose, the figures presented in the tables of this section correspond to the alignment information presented in section 7.1.3 Aligned activities within the meaning of European taxonomy of chapter 7, in application of Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021 and of the Draft Commission Notice of 21 December 2023. The detail of covered assets and the methodology as well as the limitations of the Green Asset Ratio are presented in section 7.1.3 of chapter 7, as well as the internal ratio measuring the share of assets aligned with climate performance criteria over eligible assets. The table with the gross carrying amounts in absolute values is accessible in the ESG regulatory indicators dedicated document, on the Group Investors Relationships website. It should be noted that the Green Asset Ratio, due to its unbalanced methodology and its operating complexity, cannot reflect for the Group the entirety of the instruments financing the transition to a low-carbon economy. Firstly, the EU Taxonomy alignment covers only companies subject to the NFRD, European households and specialised financings granted to European local administrations. The regulation excludes from the analysis financings granted to SMEs and non-EU companies. Neither does it allow the inclusion in the analysis of project financings set up in dedicated vehicles, not subject to NFRD, even if they relate to financing of European low-carbon infrastructures. Moreover, the ratio’s scope limited to large corporations subject to NFRD regulation, appears very restrictive as regards the Group’s diversified business model. As such, the imbalance between the assets subject to alignment analysis for the numerator and all covered assets in the denominator sets a structural cap on the GAR at 42% for 2024. This cap is lower as the business model is diversified in terms of clients, products and geographies. The taxonomy’s alignment criteria are by definition ambitious, since they correspond to science-based thresholds compatible with the EU carbon neutrality goal by 2050. However, by proposing only an aligned or non-aligned outcome, the transition pathway is not taken into account, although it is part of long-term effort already engaged by the Group and its clients. Lastly, climate performance criteria are completed by multiple supplementary conditions, aiming at ensuring that no significant harm is caused towards one of the other five environmental objectives of the Taxonomy. The assessment of these latter conditions is complex, including issues both of the interpretation of regulations and of access to information. The need to take these last criteria into account significantly reduces the share of activities aligned by companies, especially since banks data collection for each criteria is not achievable as of today. ➤TABLE 116: OTHER CLIMATE CHANGE MITIGATION ACTIONS NOT COVERED BY THE TAXONOMY a b c d e Type of financial instrument In millions of euros 31 December 2024 Type of counterparty Gross carrying amount Type of risk mitigated (Climate change transition risk) Type of risk mitigated (Climate change physical risk) Qualitative information on the nature of the mitigating actions 1 Bonds (e.g. green, sustainable, sustainability-linked under standards other than the EU standards) Financial corporations Yes Refer to comments 2 Non-financial corporations 97 Yes 7 Other counterparties 5,124 Yes 8 Loans (e.g. green, sustainable, sustainability-linked under standards other than the EU standards) Financial corporations 1,550 Yes Refer to comments 9 Non-financial corporations 27,650 Yes 10 of which Loans collateralised by commercial immovable property 963 Yes 11 Households 11,135 Yes 12 of which Loans collateralised by residential immovable property 819 Yes 13 of which building renovation loans 4,944 Yes 14 Other counterparties 307 Yes a b c d e Type of financial instrument In millions of euros 31 December 2023 Type of counterparty Gross carrying amount Type of risk mitigated (Climate change transition risk) Type of risk mitigated (Climate change physical risk) Qualitative information on the nature of the mitigating actions 1 Bonds (e.g. green, sustainable, sustainability-linked under standards other than the EU standards) Financial corporations 43 Yes Refer to comments 2 Non-financial corporations 93 Yes 7 Other counterparties 3,797 Yes 8 Loans (e.g. green, sustainable, sustainability-linked under standards other than the EU standards) Financial corporations 2,335 Yes Refer to comments 9 Non-financial corporations 18,907 Yes 10 of which Loans collateralised by commercial immovable property 1,882 Yes 11 Households 22,919 Yes 12 of which Loans collateralised by residential immovable property 14,569 Yes 13 of which building renovation loans 4,619 Yes 14 Other counterparties 116 Yes The table shows the loans and bonds, held in the banking book, measured on a gross carrying amount basis, and that contribute to mitigating climate change risks according to the ESG internal classification principles of the Group. Bonds outstanding stood at EUR 5.2 billion at 31 December 2024 (versus EUR 3.9 billion at 31 December 2023) and are identified by a third party as aligned with key green bond principles defined by the International Capital Market Association. Each bond in the banking book portfolio is analysed according to the different criteria collected by external information in order to select only the bonds which finance low-carbon and/or climate resilient projects or climate transition projects. Reported obligations are only those recorded in assets for which the business model is to collect the contractual cash flows and hold the asset until maturity. Loans outstanding stood at EUR 40.6 billion at 31 December 2024 (versus EUR 44 billion at 31 December 2023) measured on the basis of the gross carrying amount. They have been identified by the Group as corresponding to loans with a specified climate mitigation purpose based on the transaction tagging process deployed by the Group in the credit process. The internal principles on which the tagging is done are based on the Loan Market Association principles. It includes a list of eligible categories, such as Renewable Energies, Sustainable Hydrogen, Energy Efficiency and other Low-Carbon Solutions, Clean Transportation, for which qualitative and/or quantitative criteria have been defined, leveraging as much as possible on EU Taxonomy substantial contribution criteria or recognised by the market or local climate performance standards. The outstanding also includes Sustainability-Linked Loans granted to financial and non-financial corporations, whose loan agreement contains at least one performance indicator related to climate change mitigation. Appendix 1: Sovereign exposures The BNP Paribas Group is exposed to sovereign risk, which is the risk of a State defaulting on its debt, i.e. a temporary or prolonged interruption of debt servicing (interest and/or principal). The Group is thus exposed to credit, counterparty or market risk according to the accounting category of the financial asset issued by the sovereign State. Exposure to sovereign debt mainly consists of securities. The Group holds sovereign bonds as part of its liquidity management process. Liquidity management is based in particular on holding securities eligible as collateral for refinancing by central banks and includes a substantial share of highly rated debt securities issued by governments, representing a low level of risk. Moreover, as part of its assets and liability management and structural interest rate risk management policy, the Group also holds a portfolio of assets including sovereign debt instruments, with interest-rate characteristics that contribute to its hedging strategies. In addition, the Group is a primary dealer in sovereign debt securities in a number of countries, which leads it to take temporary long and short trading positions, some of which are hedged by derivatives. Sovereign exposures held by the Group are presented in the table hereafter in accordance with the method defined by the EBA for the 2014 stress tests covering a scope which includes sovereigns as well as local and regional authorities. ➤BANKING AND TRADING BOOKS SOVEREIGN EXPOSURES BY GEOGRAPHICAL BREAKDOWN Exposures In millions of euros 31 December 2024 Banking book(1) Trading book Total of which financial assets at amortised cost of which financial instruments at fair value through equity of which financial instruments at fair value through profit or loss Financial instruments at fair value through profit or loss held for trading (excl. derivatives) Derivatives(2) Direct exposures(3) Indirect exposures(4) Eurozone Austria 1,153 379 774 Belgium 14,064 11,295 2,769 548 79 (2) France 15,168 13,206 1,958 4 (518) (5) (76) Germany 6,236 3,946 2,290 5,026 (78) Ireland 1,018 957 61 (41) (1) Italy 15,124 12,273 2,851 (25) 2,629 (62) Portugal 2,418 2,418 (61) Spain 8,843 7,653 1,190 (102) 6 Other Eurozone countries 1,877 1,340 537 (129) 516 3 TOTAL Eurozone 65,901 53,467 12,430 4 4,698 3,141 (131) Other European Economic Area countries Poland 6,258 5,115 1,143 (3) (515) Other EEA countries 540 500 39 1 402 (20) (1) TOTAL OTHER EEA COUNTRIES 6,798 5,615 1,182 1 400 (534) - TOTAL EEA 72,699 59,082 13,612 5 5,097 2,606 (132) Canada 5,009 3,056 1,953 325 1,838 Japan 166 42 124 9,988 (8,910) (217) Türkiye 3,304 2,326 978 219 (40) United Kingdom 4,931 1,826 3,104 (255) 9 United States 27,200 12,192 15,009 16,502 1,063 4,005 Other 16,282 8,384 7,898 19,144 1,613 (508) TOTAL 129,591 86,908 42,678 5 51,019 (1,790) 3,119 Book value after revaluation and before any impairment provision. Market value. Sovereign counterparty risk: direct exposure to a sovereign counterparty. This excludes exposure to a non-sovereign counterparty fully or partly covered by a sovereign counterparty. Positions held with a non-sovereign counterparty, exposing BNP Paribas to a credit risk on a sovereign third party. For example, sale of a CDS to a non-sovereign third party as a hedge against a sovereign’s default. This excludes exposures to non-sovereign counterparties fully or partly covered by a sovereign government. Exposures In millions of euros 31 December 2023 Banking book(1) Trading book Total of which financial assets at amortised cost of which financial instruments at fair value through equity of which financial instruments at fair value through profit or loss Financial instruments at fair value through profit or loss held for trading (excl. derivatives) Derivatives(2) Direct exposures(3) Indirect exposures(4) Eurozone Belgium 11,073 8,206 2,867 (50) 2 (21) France 12,776 11,105 1,622 49 (1,713) 9 (79) Germany 5,067 3,592 1,475 8,754 (174) (8) Ireland 1,061 1,061 182 1 Italy 12,353 9,608 2,745 (347) 2,482 (35) Portugal 3,153 3,153 (347) 5 (1) Spain 9,194 8,919 275 (93) 4 Other Eurozone countries 1,842 1,088 754 209 513 10 TOTAL EUROZONE 56,519 46,732 9,738 49 6,595 2,838 (130) Other European Economic Area countries Poland 6,229 4,640 1,589 (105) (431) Other EEA countries 698 650 47 1 (612) (57) TOTAL OTHER EEA COUNTRIES 6,927 5,290 1,636 1 (717) (488) - TOTAL EEA 63,446 52,022 11,374 50 5,878 2,350 (130) United States 18,446 10,737 7,709 20,858 233 (64) Canada 4,189 2,387 1,802 1,860 1,755 Japan 107 38 69 United Kingdom 3,609 1,722 1,887 (879) 70 Türkiye 2,050 1,806 244 444 (46) United Kingdom 3,609 1,722 1,887 (879) 70 United States 18,446 10,737 7,709 20,858 233 (64) Other 13,244 8,074 5,170 29,652 4,208 (731) TOTAL 105,091 76,786 28,255 50 57,813 8,546 (901) Book value after revaluation and before any impairment provision. Market value. Sovereign counterparty risk: direct exposure to a sovereign counterparty. This excludes exposure to a non-sovereign counterparty fully or partly covered by a sovereign counterparty. Positions held with a non-sovereign counterparty, exposing BNP Paribas to a credit risk on a sovereign third party. For example, sale of a CDS to a non-sovereign third party as a hedge against a sovereign’s default. This excludes exposures to non-sovereign counterparties fully or partly covered by a sovereign government. Appendix 2: Regulatory capital – Detail ➤REGULATORY CAPITAL – DETAIL (EU CC1) a a b In millions of euros 31 December 2024 31 December 2023 Reference to table 8 Notes Common Equity Tier 1 (CET1) capital: instruments and reserves 1 Capital instruments and the related share premium accounts 20,202 21,253 6 (1) of which: Instrument type 1 20,202 21,253 2 Retained earnings 87,453 82,257 6 (2) 3 Accumulated other comprehensive income (and other reserves) (2,277) (2,809) 3a Funds for general banking risk 4 Amount of qualifying items referred to in article 484 (3) and the related share premium accounts subject to phase out from CET1 5 Minority interests (amount allowed in consolidated CET1) 2,448 2,048 8 (3) 5a Independently reviewed interim profits net of any foreseeable charge or dividend 4,406 3,970 7 (4) et (5) 6 Common Equity Tier 1 (CET1) capital before regulatory adjustments 112,231 106,719 Common Equity Tier 1 (CET1) capital: regulatory adjustments 7 Additional value adjustments (negative amount) (1,941) (1,817) 8 Intangible assets (net of related tax liability) (negative amount) (7,649) (8,055) 3 (6) 10 Deferred tax assets that rely on future profitability excluding those arising from temporary differences (net of related tax liability where the conditions in article 38 (3) are met) (negative amount) (181) (311) 11 Fair value reserves related to gains or losses on cash flow hedges of financial instruments that are not valued at fair value (112) (293) 12 Negative amounts resulting from the calculation of expected loss amounts (1,397) (599) 13 Any increase in equity that results from securitised assets (negative amount) 14 Gains or losses on liabilities valued at fair value resulting from changes in own credit standing 288 (146) 15 Defined-benefit pension fund assets (negative amount) (517) (397) (6) 16 Direct and indirect holdings by an institution of own CET1 instruments (negative amount) (135) (128) 17 Direct, indirect and synthetic holdings of the CET 1 instruments of financial sector entities where those entities have reciprocal cross holdings with the institution designed to inflate artificially the own funds of the institution (negative amount) 18 Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector entities where the institution does not have a significant investment in those entities (amount above 10% threshold and net of eligible short positions) (negative amount) 19 Direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities (amount above 10% threshold and net of eligible short positions) (negative amount) 20a Exposure amount of the following items which qualify for a RW of 1,250%, where the institution opts for the deduction alternative (437) (284) 20b of which: qualifying holdings outside the financial sector (negative amount) 20c of which: securitisation positions (negative amount) (437) (284) 20d of which: free deliveries (negative amount) 21 Deferred tax assets arising from temporary differences (amount above 10% threshold, net of related tax liability where the conditions in article 38 (3) are met) (negative amount) 22 Amount exceeding the 17.65% threshold (negative amount) 23 of which: direct, indirect and synthetic holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities 25 of which: deferred tax assets arising from temporary differences 25a Losses for the current financial year (negative amount) 25b Foreseeable tax charges relating to CET1 items except where the institution suitably adjusts the amount of CET1 items insofar as such tax charges reduce the amount up to which those items may be used to cover risks or losses (negative amount) 26 Empty set in the EU 27 Qualifying AT1 deductions that exceed the AT1 items of the institution (negative amount) 27a Other regulatory adjustments (2,021) (1,832) 28 Total regulatory adjustments to Common Equity Tier 1 (CET1) (14,103) (13,862) 29 Common Equity Tier 1 (CET1) capital 98,128 92,857 Additional Tier 1 (AT1) capital: instruments (7) 30 Capital instruments and the related share premium accounts 15,872 14,901 31 of which: classified as equity under applicable accounting standards 12,021 13,549 4 32 of which: classified as liabilities under applicable accounting standards 3,851 1,352 4 33 Amount of qualifying items referred to in article 484 (4) and the related share premium accounts subject to phase out from AT1 as described in article 486(3) of CRR 4 (8) 33a Amount of qualifying items referred to in article 494a subject to phase out from AT1 33b Amount of qualifying items referred to in article 494b subject to phase out from AT1 (9) 34 Qualifying Tier 1 capital included in consolidated AT1 capital (including minority interests not included in row 5) issued by subsidiaries and held by third parties 252 249 35 of which: instruments issued by subsidiaries subject to phase out 36 Additional Tier 1 (AT1) capital before regulatory adjustments 16,124 15,150 Additional Tier 1 (AT1) capital: regulatory adjustments 37 Direct and indirect holdings by an institution of own AT1 instruments (negative amount) (34) (56) 38 Direct, indirect and synthetic holdings of the AT1 instruments of financial sector entities where those entities have reciprocal cross holdings with the institution designed to inflate artificially the own funds of the institution (negative amount) 39 Direct, indirect and synthetic holdings of the AT1 instruments of financial sector entities where the institution does not have a significant investment in those entities (amount above 10% threshold and net of eligible short positions) (negative amount) 40 Direct, indirect and synthetic holdings by the institution of the AT1 instruments of financial sector entities where the institution has a significant investment in those entities (net of eligible short positions) (negative amount) (450) (450) 42 Qualifying T2 deductions that exceed the T2 items of the institution (negative amount) 42a Other regulatory adjustments to AT1 capital 43 Total regulatory adjustments to Additional Tier 1 (AT1) capital (484) (506) 44 Additional Tier 1 (AT1) capital 15,640 14,644 45 Tier 1 capital (T1 = CET1 + AT1) 113,768 107,501 Tier 2 (T2) capital: instruments and provisions (7) 46 Capital instruments and the related share premium accounts 19,188 15,002 5 (10) 47 Amount of qualifying items referred to in article 484 (5) and the related share premium accounts subject to phase out from T2 as described in article 486 (4) CRR 47a Amount of qualifying items referred to in article 494a (2) subject to phase out from T2 5 (10) 47b Amount of qualifying items referred to in article 494b (2) subject to phase out from T2 1,246 2,284 5 (9) and (10) 48 Qualifying own funds instruments included in consolidated T2 capital (including minority interests and AT1 instruments not included in rows 5 or 34) issued by subsidiaries and held by third parties 248 190 49 of which: instruments issued by subsidiaries subject to phase out 50 Credit risk adjustments 51 Tier 2 (T2) capital before regulatory adjustments 20,683 17,476 Tier 2 (T2) capital: regulatory adjustments 52 Direct and indirect holdings by an institution of own T2 instruments and subordinated loans (negative amount) (85) (101) 53 Direct, indirect and synthetic holdings of the T2 instruments and subordinated loans of financial sector entities where those entities have reciprocal cross holdings with the institution designed to inflate artificially the own funds of the institution (negative amount) 54 Direct and indirect holdings of the T2 instruments and subordinated loans of financial sector entities where the institution does not have a significant investment in those entities (amount above 10% threshold and net of eligible short positions) (negative amount) 55 Direct and indirect holdings by the institution of the T2 instruments and subordinated loans of financial sector entities where the institution has a significant investment in those entities (net of eligible short positions) (negative amount) (3,785) (3,132) 1 (11) 56a Qualifying eligible liabilities deductions that exceed the eligible liabilities items of the institution (negative amount) 56b Other regulatory adjustments to T2 capital 57 Total regulatory adjustments to Tier 2 (T2) capital (3,870) (3,233) 58 Tier 2 (T2) capital 16,813 14,243 59 Total capital (TC = T1 + T2) 130,581 121,744 60 Total risk-weighted assets 762,247 703,694 Capital ratios and buffers 61 Common Equity Tier 1 (as a percentage of total risk exposure amount) 12.87% 13,20 % 62 Tier 1 (as a percentage of total risk exposure amount) 14.93% 15,28 % 63 Total capital (as a percentage of total risk exposure amount) 17.13% 17,30 % 64 Institution CET1 overall capital requirement (CET1 requirement in accordance with article 92 (1) CRR, plus additional CET1 requirement which the institution is required to hold in accordance with point (a) of article 104(1) CRD, plus combined buffer requirement in accordance with article 128(6) CRD) expressed as a percentage of risk exposure amount 10.33% 9,79 % 65 of which: capital conservation buffer requirement 2.50% 2,50 % 66 of which: countercyclical buffer requirement 0.67% 0,40 % 67 of which: systemic risk buffer requirement 0.04% 0,00 % 67a of which: Global Systemically Important Institution (G-SII) or Other Systemically Important Institution (O-SII) buffer 1.50% 1,50 % 67b of which: Pillar 2 Requirements – additional CET1 SREP requirements 1.11% 0,88 % 68 Common Equity Tier 1 available to meet buffer (as a percentage of risk exposure amount) 7.26% 7,73 % Amounts below the thresholds for deduction (before risk weighting) 72 Direct and indirect holdings of own funds and eligible liabilities of financial sector entities where the institution does not have a significant investment in those entities (amount below 10% threshold and net of eligible short positions) 7,090 4 835 2 (11) 73 Direct and indirect holdings by the institution of the CET1 instruments of financial sector entities where the institution has a significant investment in those entities (amount below 17.65% thresholds and net of eligible short positions) 5,746 4 910 1 (11) 75 Deferred tax assets arising from temporary differences (amount below 17.65% threshold, net of related tax liability where the conditions in article 38 (3) are met) 2,552 2 805 Applicable caps on the inclusion of provisions in Tier 76 Credit risk adjustments included in T2 in respect of exposures subject to standardised approach (prior to the application of the cap) 77 Cap on inclusion of credit risk adjustments in T2 under standardised approach 3,141 2 633 78 Credit risk adjustments included in T2 in respect of exposures subject to internal ratings-based approach (prior to the application of the cap) 79 Cap for inclusion of credit risk adjustments in T2 under internal ratings-based approach 2,071 1 995 Capital instruments subject to phase out arrangements (only applicable between 1 Jan 2013 and 1 Jan 2022) 80 Current cap on CET1 instruments subject to phase out arrangements 81 Amount excluded from CET1 due to cap (excess over cap after redemptions and maturities) 82 Current cap on AT1 instruments subject to phase out arrangements 83 Amount excluded from AT1 due to cap (excess over cap after redemptions and maturities) 84 Current cap on T2 instruments subject to phase out arrangements 85 Amount excluded from T2 due to cap (excess over cap after redemptions and maturities) As at 31 December 2024, eligible income was reduced by the proposed dividend distribution, including the share buyback for -EUR 1,084 million. Taking into account as at 31 December 2023, an anticipated distribution of 60% (of which -EUR 1.055 billion in the form of share buybacks) in respect of distributable income after taking into account the compensation cost of undated super subordinated notes. Minority interests are adjusted for their capitalisation surplus for regulated entities. For the other entities, minority interests are not recognised in full Basel 3. Taking into account as at 31 December 2024 a 60% proposed distribution of result subject to usual conditions. Eligible profit of the period is mainly reduced by related project of result distribution. The deduction of intangible assets and pension plans is calculated net of related deferred tax liabilities. In accordance with the eligible rules for grandfather debt in additional Tier 1 and Tier 2 capital applicable. Own funds instruments that will be progressively be excluded (Grandfathered instruments), included instruments issued by subsidiaries. This amount includes grandfathered debts issued under the law of third countries to the European Union without a bail-in clause under Regulation (EU) No. 2019/876. A prudential discount is applied to Tier 2 capital instruments with less than five years of residual maturity. Holdings of equity instruments in financial institutions are recorded in the banking book, as detailed in the consolidated accounting balance sheet to the prudential balance sheet reconciliation, as well as in the trading book. Appendix 3: Countercyclical capital buffer and G-SIB buffer Countercyclical capital buffer The calculation and the amount of the BNP Paribas countercyclical capital buffer are given in the tables below in accordance with the instructions of Commission Delegated Regulation (EU) No. 2015/1555 of 28 May 2015. ➤INSTITUTION-SPECIFIC COUNTERCYCLICAL CAPITAL BUFFER (EU CCYB2) a In millions of euros 31 December 2024 31 December 2023 010 Total risk-weighted assets 762,247 703,694 020 BNP Paribas countercyclical capital buffer rate 0.67% 0.40% 030 Countercyclical capital buffer requirement 5,136 2,813 At 31 December 2024, the BNP Paribas countercyclical capital buffer rate was 0.67% against 0.40% at 31 December 2023. The countercyclical capital buffer is calculated as the weighted average of the countercyclical buffer rates that apply in the countries where the relevant credit exposures of the Group are located. The weight applied to the countercyclical buffer rate in each country is the share of own funds requirements in total own funds requirements relating to relevant credit exposures in the territory in question. At 31 December 2024, BNP Paribas’ countercyclical capital buffer rate of 0.67% was mainly due to the rates applicable in France (1.0%), the United Kingdom (2.0%) and Belgium (1.0%). This rate is expected to be around 0.72% at 31 December 2025 due to the activation or increase in requirements announced by certain European countries (see table below). ➤GEOGRAPHICAL DISTRIBUTION OF CREDIT EXPOSURES RELEVANT FOR THE CALCULATION OF THE COUNTERCYCLICAL CAPITAL BUFFER (CCyB1) a b c d e g h i j k l m In millions of euros 31 December 2024 31 December 2025 General credit exposures Relevant credit exposures – Market risk Securitisation exposures Exposure value for non-trading book Own fund requirements Risk- weighted exposure amounts Own fund requirements weights (%) Counter- cyclical buffer rate (%) Countercyclical buffer rate (%) announced(2) Exposure value under the standardised approach Exposure value under the IRB approach Exposure value under the standardised approach Exposure value under the IRB approach Of which credit risk exposure Of which market risk exposure Of which securitisation positions Total 010 Breakdown by country Europe(1) 275,590 669,913 77,954 37,803 1,583 1,026 40,412 505,152 79% of which Germany 35,076 24,728 4,008 2,575 45 2,620 32,755 5% 0,75% 0,75% of which Armenia - 1 0% 1,50% 1,50% of which Belgium 29,296 136,886 2,887 4,349 34 4,383 54,792 9% 1,00% 1,00% of which Bulgaria 10 117 5 5 63 0% 2,00% 2,00% of which Cyprus 21 320 18 18 225 0% 1,00% 1,00% of which Croatia 5 72 3 3 35 0% 1,50% 1,50% of which Denmark 798 6,015 197 197 2,462 0% 2,50% 2,50% of which Spanish 19,796 9,909 617 1,471 8 1,479 18,489 3% 0,00% 0,50% of which Estonia 2 80 5 5 59 0% 1,50% 1,50% of which France 59,392 270,261 45,107 13,709 1,559 642 15,910 198,872 31% 1,00% 1,00% of which Greece 325 222 2 28 28 354 0% 0,00% 0,25% of which Hungary 225 1,387 49 49 610 0% 0,50% 1,00% of which Ireland 736 8,733 323 484 5 489 6,116 1% 1,50% 1,50% of which Iceland 1 18 3 0% 2,50% 2,50% of which Latvia 1 2 2 0% 0,50% 1,00% of which Lithuania 9 11 1 1 14 0% 1,00% 1,00% of which Luxembourg 4,139 36,375 1,793 1,793 22,408 4% 0,50% 0,50% of which Norway 557 2,205 107 107 1,342 0% 2,50% 2,50% of which Netherlands 7,879 22,241 1,563 1,105 23 1,128 14,096 2% 2,00% 2,00% of which Poland 26,937 702 435 1,662 24 4 1,690 21,127 3% 0,00% 1,00% of which Czech Republic 942 449 73 73 914 0% 1,25% 1,25% of which Romania 1,055 176 66 66 827 0% 1,00% 1,00% of which United Kingdom 26,417 47,563 13,982 2,964 176 3,140 39,247 6% 2,00% 2,00% of which Slovakia 331 247 31 31 388 0% 1,50% 1,50% of which Slovenia 8 14 1 1 9 0% 0,50% 1,00% of which Sweden 1,620 3,850 946 197 9 206 2,570 0% 2,00% 2,00% North America 1,477 112,299 40,131 3,921 48 571 4,539 56,742 9% Asia Pacific 13,139 49,756 2,242 3,139 29 3,168 39,600 6% of which Australia 188 7,821 120 206 1 208 2,597 0% 1,00% 1,00% of which South Korea 127 3,548 1,714 105 22 127 1,582 0% 1,00% 1,00% of which Hong Kong 2,025 8,766 348 348 4,347 1% 0,50% 0,50% Rest of the World 24,485 32,091 295 2,951 8 20 2,979 37,236 6% of which Chile 163 2,232 52 108 3 112 1,397 0% 0,50% 0,50% 020 TOTAL 314,692 864,059 120,623 47,814 1,639 1,645 51,098 638,730 100% 0,67% 0,72% Within the European Union, the European Free Trade Association (EFTA) and the United Kingdom. According to the rates published on the ESRB website as at 6 July 2023. G-SIB buffer The measurement approach of the global systemic importance is indicator-based. The selected indicators reflect the size of banks, their interconnectedness, the use of banking information systems for the services they provide, their global cross-jurisdictional activity and their complexity. The methodology is described in a document published in July 2013 by the Basel Committee, entitled Global systemically important banks: updated assessment methodology and the higher loss absorbency requirement (BCBS 255). The Group received notification from the Autorité de contrôle prudentiel et de résolution (ACPR), dated 27 November 2024, that it was on the 2024 list of global systemically important financial institutions in sub-category 2, corresponding to its score in the database at end 2023. As a result, the G-SIB buffer requirement for the Group, applicable from 1 January 2025 remains unchanged at 1.5% of the total risk exposure amount. The Group’s G-SIB indicators at 31 December 2024 will be published in April 2025 and included in the first update to the Universal registration document. ➤SYSTEMIC RISK BUFFER (G-SIB) In millions of euros 31 December 2023 Cross-jurisdictional activity 1 Cross-jurisdictional claims 1,348,201 2 Cross-jurisdictional liabilities 1,208,729 Size 3 Total exposures 2,608,724 Interconnectedness 4 Intra-financial system assets 359,736 5 Intra-financial system liabilities 271,664 6 Securities outstanding 377,326 Substitutability 7 Assets under custody 6,482,818 Trading volume fixed income 1,636,803 Trading volume equities and other securities 3,127,562 Financial institution infrastructure 8 Payment activity 54,455,027 Underwritten transactions in debt and equity markets 9 Underwritten transactions in a debt and equity markets 214,706 Complexity 10 Notional amount of over-the-counter (OTC) derivatives 29,857,825 11 Level 3 assets 30,584 12 Trading and available for sale (AFS) securities 88,054 Appendix 4: Capital requirements of significant subsidiaries BNP Paribas Fortis Group In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 31 December 2024 1 Credit risk 168,278 137,700 13,462 2 Of which standardised approach 102,440 62,680 8,195 EU 4a Of which equities under the simple weighting approach 5,357 15,664 429 5 Of which advanced IRB (A-IRB) approach 60,481 59,356 4,838 6 Counterparty credit risk 2,268 1,296 181 7 Of which SACCR (derivatives) 682 634 55 8 Of which internal model method (IMM) 740 330 59 EU 8a Of which exposures to CCP related to clearing activities 741 297 59 EU 8b Of which CVA 102 33 8 9 Of which other 3 2 16 Securitisation exposures in the banking book 851 1,026 68 17 Of which internal ratings-based approach (SEC-IRBA) 410 621 33 18 Of which external ratings-based approach (SEC-ERBA) 408 394 33 19 Of which standardised approach (SEC-SA) 33 11 3 20 Market risk 1,607 1,061 129 21 Of which standardised approach 1,607 1,061 129 23 Operational risk 16,922 11,971 1,354 EU 23a Of which basic indicator approach 6,707 2,212 537 EU 23b Of which standardised approach 3,565 3,108 285 EU 23c Of which advanced measurement approach (AMA) 6,650 6,651 532 24 Amounts below the thresholds for deduction (subject to 250% risk weight) 3,544 3,616 284 29 TOTAL 193,470 156,669 15,478 BNL Group In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 31 December 2024 1 Credit risk 37,877 36 081 3,030 2 Of which standardised approach 7,967 7 288 637 EU 4a Of which equities under the simple weighting approach 1,035 1 128 83 5 Of which advanced IRB (A-IRB) approach 28,874 27 664 2,310 6 Counterparty credit risk 300 471 24 7 Of which SACCR (Derivatives) 281 440 22 8 Of which internal model method (IMM) EU 8a Of which exposures to CCP related to clearing activities EU 8b Of which CVA 19 32 2 9 Of which other 16 Securitisation exposures in the banking book 403 396 32 17 Of which internal ratings-based approach (SEC-IRBA) 361 322 29 18 Of which external ratings-based approach (SEC-ERBA) 19 Of which standardised approach (SEC-SA) 42 75 3 20 Market risk 2 7 - 21 Of which standardised approach 2 7 23 Operational risk 3,468 3 366 277 EU 23a Of which basic indicator approach 70 61 6 EU 23b Of which standardised approach 91 95 7 EU 23c Of which advanced measurement approach (AMA) 3,308 3 209 265 24 Amounts below the thresholds for deduction (subject to 250% risk weight) 78 80 6 29 TOTAL 42,130 40 402 3,370 BNP Paribas Personal Finance Group In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 31 December 2024 1 Credit risk 57,696 59 136 4,616 2 Of which standardised approach 50,611 52 140 4,049 EU 4a Of which equities positions under the simple weighting approach 50 33 4 5 Of which advanced IRB (A-IRB) approach 7,035 6 963 563 6 Counterparty credit risk 67 174 5 7 Of which SACCR (Derivatives) 15 96 1 8 Of which internal model method (IMM) EU 8a Of which exposures to CCP related to clearing activities EU 8b Of which CVA 51 77 4 9 Of which other 16 Securitisation exposures in the banking book 331 216 26 17 Of which internal ratings-based approach (SEC-IRBA) 31 45 2 18 Of which external ratings-based approach (SEC-ERBA) 123 171 10 19 Of which standardised approach (SEC-SA) 177 14 20 Market risk 80 78 6 21 Of which standardised approach 80 78 6 23 Operational risk 5,357 5 963 429 EU 23a Of which basic indicator approach 220 390 18 EU 23b Of which standardised approach 1,454 1 496 116 EU 23c Of which advanced measurement approach (AMA) 3,683 4 077 295 24 Amounts below the thresholds for deduction (subject to 250% risk weight) 1,941 2 032 155 29 TOTAL 65,472 67 598 5,238 BGL BNP Paribas Group In millions of euros RWAs Capital requirements 31 December 2024 31 December 2023 31 December 2024 1 Credit risk 25,813 24 625 2,065 2 Of which standardised approach 18,619 17 744 1,490 EU 4a Of which equities under the simple weighting approach 687 618 55 5 Of which advanced IRB approach 6,506 6 263 521 6 Counterparty credit risk 17 21 1 7 Of which SACCR (Derivatives) 14 15 1 8 Of which internal model method (IMM) EU 8a Of which exposures to CCP related to clearing activities EU 8b Of which CVA 2 3 9 Of which other 2 16 Securitisation exposures in the banking book 7 15 1 17 Of which internal ratings-based approach (SEC-IRBA) 18 Of which external ratings-based approach (SEC-ERBA) 7 15 1 19 Of which standardised approach 20 Market risk 8 30 1 21 Of which standardised approach 8 30 1 23 Operational risk 1,568 1 564 125 EU 23a Of which basic indicator approach 301 273 24 EU 23b Of which standardised approach 229 227 18 EU 23c Of which advanced measurement approach (AMA) 1,038 1 064 83 24 Amounts below the thresholds for deduction (subject to 250% risk weight) 355 205 28 29 TOTAL 27,766 26 459 2,221 Appendix 5: Environmental, social and governance risk ESG Assessment (ESG-A) For corporate and financial institutional clients, BNP Paribas has developed the ESG Assessment. It is a tool which provides a more systematic and comprehensive review of ESG topics through the credit chain: from on-boarding to credit granting, monitoring and reporting. In particular, the ESG Assessment enables the Group to: verify client compliance with BNP Paribas sector policies; assess how prepared the Group’s corporate clients are to manage ESG challenges; ensure that their strategies and commitments address key ESG risks specific to their sector; assess the maturity of their ESG strategy and their ability to monitor the key stakes of their industry, and to publish indicators; confirm if action plans have been implemented; analyse the materiality of the Group’s corporate clients' ESG controversies and their potential impact on the client. This analysis aims to identify companies for which weak ESG performance and risk management could generate credit, investment or reputation risks, as well as negative environmental and social impacts. Initially launched on the large corporate segment, the ESG assessment framework was enlarged in 2024 to relevant medium-sized corporate customers (companies with sales of over EUR 50 million, selected on risk-based criteria) and to financial institutions thanks to adapted questionnaires. The ESG Assessment tool for corporate covers five ESG dimensions including climate and environment. Answers to preliminary questions trigger specific questions This ESG Assessment includes assessment indicators on the way ESG-related issues are tackled by the Group’s clients. This set of questions cover, for example, the following aspects: Environment: existence of GHG emission reduction targets set with a clear deadline, use of sectorial standard metric to measure GHG intensity, existence of a Net-Zero emission target or carbon neutrality target, extent of physical risk exposure and actions to mitigate it, the way biodiversity matters are addressed by the company; Social: existence of a health & safety management system, ability to provide performance indicators with regards to health & safety aspects to workers relying on frequency and/or severity rates, commitment to disclose or provide health & safety indicators for workers and subcontractors; Governance: existence of a Code of conduct in place to address ethical considerations, deployment of a whistleblowing system, relevant employees’ compensation (such as top management variable compensation) linked to ESG performance, transparency: check if company’s extra-financial information (i.e. indicators or policies) are audited by an external third party. The ESG assessment provides a global overview of the ESG profile of the client, which is completed by the controversies analysis for a full evaluation. The qualitative conclusions of the ESG Assessment (including controversies analysis) are provided by the Relationship Manager and Group CSR if applicable and challenged by RISK as the control function, to allow a well-balanced evaluation of the performance and risk. The ESG Assessment helps decision-making through the usual credit processes, in strengthening and documenting ESG due diligence at counterparty, transaction and collateral levels. The results of the ESG Assessment are used both: to steer the credit decision at the counterparty and transaction level. Depending on the outcome, it could potentially lead to (1) start or continue the relationship; (2) monitor and regularly follow up on the client; (3) adjust exposure or exit the relationship; to manage/monitor ESG risks thanks to ESG dashboards provided to various governance bodies including at the top management level. The global framework surrounding the credit process has also been enhanced, in particular through the update of the various credit policies, encompassing dedicated and adapted ESG sections and leveraging the ESG Assessment outcomes. Credit risk is expected to be one of the risks most impacted by ESG. However, the Group also adapts its risk framework to embed ESG and climate-risk factors in other risk processes to capture potential impacts of these drivers, as the case may be. Risk Identification & assessment process (“Risk ID”) The risk identification and assessment process (Risk ID) is part of the Group risk management framework. Risk ID is a fully integrated process, involving business lines, the RISK Function and the other control functions throughout the Group. It serves to maintain up-to-date the risk inventories, both at local and Group levels. It aims to identify and assess all risks in a forward-looking way, thus fostering anticipation in the Group risk management practices. BNP Paribas’ Risk ID process covers: all sets of activities and exposures, on and off-balance sheet, as well as new products and activities; all risk types and all risk factors; all geographies and legal entities. The process requires that all business lines keep up to date their Risk Inventory (that contributes to the Group Risk Inventory). The Group risk inventory – like all the underlying local risk inventories – is made of an ensemble of elementary severe but plausible scenarios (“risk events”) corresponding to the way the risk types BNP Paribas is exposed to could materialise. Risk ID approach All risk events are identified and assessed along three main elements: the risk event shall be described. Every risk event shall be assigned to a single risk type of BNP Paribas’ risk type taxonomy (the risk event can however be characterised as correlated to other risk types). This risk type taxonomy is common across the Group. It is not static and evolves in line with methodological developments, internal demands, emergence of new risk types or regulatory requirements. The risk events represent the elementary items that form the Risk Inventory; the risk factors (causes and drivers) that underlie the risk event in the sense that they can favour and/or trigger and/or aggravate the risk event must be identified. Because in Risk ID, ESG risks are considered as risk factors, the BNP Paribas risk factors taxonomy used as a reference in the Risk ID approach encompasses a comprehensive set of risk factors covering environmental, social and governance risk topics. This risk factor taxonomy is common across the Group. It is not static and evolves in line with methodological developments, internal demands, emergence of new factors or causes. There must be at least 1 and up to 5 risk factors for a given risk event. Additionally: for each risk factor, the information regarding the way it affects the risk event has to be qualified (“favours”, “triggers”, “aggravates”, multiple values can be selected), when there are several risk factors for a given risk event, a weight (in percentage) must be allocated to each of the risk factors (total of the percentages allocated to the factors must equal 100%), when an ESG risk factor is selected, it is necessary to choose, from among the transmission channel(s) proposed, those that correspond to the way the ESG factor concurs to the materialisation of the risk event. There can be up to 3 transmission channels per ESG risk factor. For this purpose, for the first time in 2023, BNP Paribas developed an ESG Transmission Channel taxonomy, organised in a 2-level arborescence; the materiality assessment of the risk event. Materiality assessment aims to determine the approximate materiality of a risk event, i.e. its relative importance. It is rather an expert judgement-based approach and shall be based, whenever possible and relevant, on existing risk management practices (e.g. stress test results). It shall be performed on a gross basis, i.e. not taking into account specific mitigation technics. Finally, the materiality assessment is essentially estimated by the combination of the severity, frequency and imminence of the risk event: the possible severity based on a scale in euros to assess the annual impact of the risk event on the P&L, on the OCI/permanent equity, or on the liquidity outflows and default of inflows (for liquidity and funding risk events), or eventually on a qualitative scale (for risk events that are very difficult to assess using euro scales), the intrinsic frequency (i.e. its recurrence time) which corresponds to the number of years between two risk events of the same magnitude, the imminence that qualifies the probability that it occurs in the coming three years. Hence, the Group risk inventory encompasses both frequent, probable risk events and unusual, long-term, less probable but more severe risk events. The assessment of severity, frequency and imminence performed for all risk events enables to appreciate the materiality of risk types and risk factors – including ESG ones. In the course of 2024, evolutions have been implemented in Risk ID methodology and application to reinforce the possibility to apprehend the materiality of ESG-related scenarios over various horizons. Considering that some ESG risk factors are likely to grow in importance and criticality in the future, the assessments of severity, intrinsic frequency and imminence of ESG-related risk events are now supplemented by two functionalities: a short-term forward-looking trend assessment has been introduced, to capture the likely evolution of the risk event materiality over the coming 3 years; an assessment of the relative materiality of the scenario over the medium-term (10 years) and long-term (30 years). Thanks to those evolutions, the Group is now able to appreciate the materiality of ESG risk factors over the short, medium and long-term. Details regarding the materiality of the risk events and the risk factors Materiality of the risk events Based on individual severity, frequency & imminence assessments, it is possible to compute the materiality of each risk event. It corresponds to an indicator resulting from the product of: the severity amount or severity proxy (when a severity bucket is used) of the risk event (expressed in euros); the probability (%) of the risk event that stems from the combination of its frequency and imminence. Risk event’s materiality indicator = Risk event’s severity (in €M) x Risk event’s probability (%) The materiality indicator that reflects the individual materiality of the risk event, is a form of stressed expected loss. The risk events’ individual materialities can be aggregated along various axes, like the risk type axis. Currently, the aggregation of individual materialities consists in adding them up. However, exploratory work is being carried out to find alternative – and possibly more relevant – methods of consolidation/aggregation of materialities. Materiality of the risk factors For a given risk event, with the percentages allocated to each risk factor, it is possible to distribute the risk event’s materiality to each of the underlying risk factors and obtain their contribution to the materiality of the risk event. Like for the risk events, the individual materiality contributions of the risk factors can be aggregated along various axes like the risk factor axis. Doing so, it is possible, for example, to determine the contribution of a given risk factor to the risk events associated to a given risk type. It enables the production of various metrics and the creation of visualisations like Sankey diagrams that display the materiality relationships that exist between risk factors and risk types. ESG dimensions in Risk ID In Risk ID, ESG dimensions are captured via risk factors that have been designed considering, notably, EBA, ECB and CSRD-ESRS recommendations or needs. The risk factor taxonomy encompasses 13 risk factors in the Risk ID 2023 exercise and 20 in the 2024 Risk ID exercise: to account for the fact that the direct physical impacts of adaptation to the physical impacts of climate change phenomena have to be considered, in 2024, two additional climate change-related risk factors were created for both acute and chronic phenomena linked to climate change; under “Nature”, the two 2023 risk factors have been replaced by a set of six risk factors, coherent with CSRDS-ESRS expectations, and aiming at being, as far as possible, mutually exclusive; the 3 social risk factors become 4 in 2024 due to some clarifications that were made. The labels of the ESG risk factors have been adapted to be more self-explanatory and their definitions have been adjusted. Hence, in 2024, the 20 ESG risk factors represent 16% of the number of drivers in the taxonomy (125), which encompasses the following 6 categories: financial markets & commodity prices: 17 risk factors; macroeconomic & demographic drivers: 13 risk factors; concentrations: 8 risk factors; business environment: 26 risk factors; environment, social & governance risk factors: 20 risk factors; internal: 41 risk factors. These ESG risk factors are used in the Risk ID process to appreciate, in a forward-looking way, how they could give rise to elementary scenarios, corresponding to the materialisation of virtually any kind of financial or non-financial risks. As indicated in the ESG risk factor taxonomy presented below: 9 ESG risk factors are totally or partially referring to climate concerns; 8 ESG risk factors are totally or partially referring to nature-related concerns; 6 ESG risk factors are totally or partially referring to social-related concerns; 3 ESG risk factors are totally or partially referring to governance concerns. The BNP Paribas taxonomy of ESG risk factors is presented in the following table. Level 1 risk factor Level 2 risk factor Level 3 risk factor Climate Nature Social Gov. Environment, social & governance risk factors Climate change physical risk factors 1 Physical impacts of acute climate change phenomena ✓ 2 Adaptation to acute climate change phenomena ✓ 3 Physical impacts of chronic climate change phenomena ✓ 4 Adaptation to chronic climate change phenomena ✓ Climate change transition risk factors 5 Transition to a low-carbon economy - Policy changes ✓ 6 Transition to a low-carbon economy - Technological changes ✓ 7 Transition to a low-carbon economy - Behavioural changes ✓ Nature-related risk factors 8 Impacts on biodiversity & ecosystems ✓ 9 Mismanagement of dependencies on natural resources and ecosystem services ✓ 10 Impacts & dependencies on freshwater, marine & coastal resources, & ecosystems ✓ 11 Pollution and hazardous chemicals ✓ 12 Failure in waste management & recycling ✓ 13 Invasive alien species ✓ Social risk factors 14 Violation of local communities-related human rights ✓ 15 Non-respect of consumers rights ✓ 16 Violation of workforce-related rights ✓ 17 Inadequacy with social sentiments and expectations ✓ Governance risk factors 18 Inadequate governance regarding management of E & S risks ✓ ✓ ✓ ✓ 19 Non-compliance with corporate governance frameworks or codes ✓ ESG liability consequences 20 ESG related liability consequences ✓ ✓ ✓ ✓ Financial Institutions Global Risks Landscape To promote and foster anticipation with a view to developing a forward-looking mindset within the Group when identifying risks, BNP Paribas draws a picture of the Financial Institutions risk environment by annually updating its Financial Institutions Global Risks Landscape. This work aims at seizing economic, technological, business, socio-political & environmental megatrends, major risks and significant transitions that represent threats likely to have negative consequences for financial institutions in the short, medium and longer term. It also encompasses and attempts to understand the interdependencies between those threats. The Financial Institutions Global Risks Landscape is the outcome of cross analyses of various internal and external supranational, public and private sources (30 in 2023, 51 in 2024). The “criticality” of each of the global risks presented in the landscape (32 in 2023 and 34 in 2024), is assessed for 3 different horizons – short-term horizon (0 - 3 years), medium-term horizon (3 - 10 years) and long-term horizon (10 - 30 years) - using a 4-position qualitative scale. These assessments are based on expert judgement and reflect the appreciation of the possible impact of a given risk for the banking sector as a whole rather than for BNP Paribas Group specifically. Moreover, for each global risk, the “direction” provides an indicator of the probable evolution of the risk (increasing, decreasing, stable) and, whenever appropriate, the global risk is identified as being emerging. The table below is extracted from the BNP Paribas 2024 Financial Institutions Landscape. This document is meant to be used by Risk ID contributors who have to appreciate the extent to which these global risks could have direct or indirect negative impacts for the Group. Horizons Criticality Emerging ESG dimension Theme # 1: Technology & digital #1.1. Dependence on critical technological infrastructure Short-term High Medium-term Very high Long-term Very high #1.2. Cyber threats and cybersecurity failure Short-term Very high Medium-term Very high Long-term Very high #1.3. Data protection, governance and strategy Short-term Very high ✓ Medium-term High Long-term High #1.4. IT complexity & obsolescence and disruptive technological trends Short-term High ✓ Medium-term Very high Long-term Very high #1.5. Risks related to artificial intelligence Short-term High ✓ ✓ Medium-term Very high Long-term Very high #1.6. Digital power concentration Short-term High Medium-term Very high Long-term Extr. high Theme # 2: Changes to business environment #2.1. Regulation and supervision pressure Short term High ✓ Medium Term High Long term High #2.2. Digitalisation, digital assets & decentralised finance Short term High ✓ ✓ Medium Term Very high Long term High #2.3. Possible evolutions in insurance and reinsurance markets Short term High ✓ ✓ Medium Term Very high Long term Extr. high #2.4. Fast-changing multifaceted competitive environment Short term High Medium Term High Long term High #2.5. Shadow banking & disintermediation Short term High Medium Term Very high Long term Very high #2.6. Customers’ expectations and impact of consumerism Short term High ✓ Medium Term High Long term High #2.7. Investor’s financial expectations Short term Medium ✓ Medium Term High Long term Very high Theme # 3: Macroeconomics #3.1. Inflationary risks Short term High ✓ Medium Term High Long term High #3.2. Supply chain disruptions, uneasy access to commodities Short term Very high ✓ Medium Term Very high Long term Very high #3.3. High interest rate environment Short term Very high Medium Term High Long term High #3.4. Asset prices volatility Short term High Medium Term High Long term High #3.5. Real estate market under pressure Short term Very high ✓ Medium Term High Long term High #3.6. Public debt concerns Short term Very high ✓ Medium Term Very high Long term Very high #3.7.Private debt concerns Short term Very high Medium Term Very high Long term Very high #3.8. Economic fragilities in some emerging markets Short term High ✓ Medium Term High Long term High #3.9. Turkey Short term High Medium Term High Long term High #3.10. China Short term High Medium Term High Long term High Theme # 4: Political measures and geopolitical developments #4.1. Risks linked to political decisions Short term Very high ✓ Medium Term Very high Long term High #4.2. Geopolitical risks Short term Extr. high ✓ Medium Term Very high Long term High #4.3. Geoeconomic fragmentation, protectionism, sanctions Short term High ✓ Medium Term High Long term High Theme # 5: Environment & society #5.1. Demographic transition Short term High ✓ Medium Term High Long term Very high #5.2. Economic impact of environmental degradation, climate change & energy transition Short term High ✓ ✓ Medium Term Very high Long term Extremely high #5.3. Demand-supply gap for natural resources Short term High ✓ ✓ Medium Term Very high Long term Extremely high #5.4. From climate & nature-related risks to ecosystems collapse Short term High ✓ ✓ Medium Term Very high Long term Extremely high #5.5. Threats to health and resistance of pathogenic agents Short term Medium ✓ ✓ Medium Term High Long term Extremely high #5.6. Misinformation and disinformation Short term High ✓ ✓ Medium Term Very high Long term Extremely high #5.7. Widening inequalities, societal polarisation, organised criminality & social unrest Short term High ✓ Medium Term Very high Long term Extremely high #5.8. Employees’ expectations & engagement, recruitment & retention Short term High ✓ Medium Term High Long term High Appendix 6: List of tables and figures Pages 5.1 ANNUAL RISK SURVEY 335 Table 1 Key indicators (EU KM1) 336 Table 2 MREL & TLAC ratio (EU KM2) 337 Figure 1 Risk-weighted assets by risk type 338 Figure 2 Risk-weighted assets by business line 338 Figure 3 Credit risk exposure breakdown by geographic region 339 Figure 4 Credit risk exposure breakdown by asset class 339 Table 3 Doubtful loans on gross outstandings ratio 339 Table 4 Stage 3 coverage ratio 339 Table 5 Cost of risk on outstandings 339 Table 6 Immediately available liquidity reserve 339 5.2 CAPITAL MANAGEMENT AND CAPITAL ADEQUACY 360 Table 7 Differences between the accounting and prudential scopes (EU LI3) 361 Table 8 Consolidated balance sheet to prudential balance sheet reconciliation (EU LI1/EU CC2) 362 Table 9 Prudential balance sheet by risk type (EU LI1-B) 366 Table 10 Reconciliation between net carrying values under the prudential scope and the exposure amounts considered for regulatory purposes (EU LI2) 370 Table 11 Transition from consolidated equity to Common Equity Tier 1 (CET1) capital 372 Table 12 Value adjustments related to prudent valuation (PVA) (EU PV1) 373 Table 13 Regulatory capital 374 Table 14 Change in regulatory capital 375 Table 15 Change in eligible debt for the constitution of equity 375 Table 16 Effect of the application of transitional arrangements for IFRS 9 accounting standard (EU IFRS9-FL) 377 Table 17 Overview of risk-weighted exposure amounts (EU OV1) 378 Table 18 Risk-weighted assets movements by key driver 379 Table 19 Risk-weighted assets by risk type and business 380 Table 20 Overall capital requirements 384 Figure 5 MDA restriction thresholds 385 Table 21 Financial conglomerates – own funds and capital adequacy ratio (EU INS2) 386 Table 22 Composition of TLAC and MREL ratios (EU TLAC1) 388 Table 23 Creditor ranking of the resolution entity – BNP Paribas SA (EU TLAC3) 389 Table 24 Leverage ratio – Itemised 391 5.3 RISK MANAGEMENT 396 Figure 6 Overview of Group level governing bodies covering risk-related topics 396 5.4 CREDIT RISK 405 Table 25 Credit risk exposure by asset class and approach 405 Figure 7 Gross credit risk exposure by approach 406 Table 26 Scope of the use of IRB and SA approaches (EU CR6-A) 407 Table 27 Indicative mapping of internal counterparty rating with agency rating scale and average expected PD 411 Table 28 Credit risk exposure by regulatory asset class and approach type (EU CRB-B) 413 Table 29 Credit risk exposure by geographic region 414 Table 30 Credit risk-weighted assets 418 Table 31 Credit risk-weighted assets movements by key driver (EU CR8) 419 Table 32 Main models: PD, LGD and CCF/EAD 421 Table 33 Backtesting of PD on central governments, central banks and institutions portfolio (EU CR9) 424 Table 34 Backtesting of PD on corporates portfolio (EU CR9) 426 Table 35 Backtesting of PD on retail secured by property portfolio (EU CR9) 430 Table 36 Backtesting of PD on other retail portfolio (EU CR9) 432 Table 37 Backtesting of LGD 435 Figure 8 IRBA exposure by PD range – Sovereign, financial institution, corporate and specialised financing portfolios 437 Table 38 IRBA exposure by PD scale and asset class – central bank, central government and institutions portfolio (EU CR6) 438 Table 39 IRBA exposure by PD scale and asset class corporate portfolio (EU CR6) 440 Table 40 Average PD and LGD of the corporate asset class by geographic region 444 Figure 9 IRBA exposure by PD range – Retail portfolio 445 Table 41 IRBA exposure by PD scale and asset class – retail guaranteed by real property portfolio (EU CR6) 446 Table 42 IRBA exposure by PD scale and asset class – other retail portfolios (EU CR6) 448 Table 43 Average PD and LGD of the retail portfolio by geographic region 452 Table 44 Standardised credit risk exposure by standard exposure class (EU CR4) 453 Table 45 Standardised credit exposure at default (EU CR5) 455 Figure 10 Standardised credit exposure at default by risk weight 457 Table 46 Equity positions under the simple weighting method (EU CR10) 458 Table 47 Insurance undertakings (EU INS1) 458 Table 48 Performing and non-performing exposures and related provisions (EU CR1) 460 Table 49 Performing and non-performing exposures by past due days (EU CQ3) 462 Table 50 Exposures and provisions by geographic breakdown (EU CQ4) 464 Table 51 Breakdown of loans and advances and provisions to non-financial corporations by industry (EU CQ5) 468 Table 52 Breakdown of financial assets subject to impairment by stage and internal rating 474 Table 53 Credit quality of restructured loans (EU CQ1) 476 Table 54 Credit risk mitigation techniques (EU CR3) 478 Table 55 Credit risk mitigation in IRBA and standard approach 479 Table 56 Secured exposures in IRB approach (EU CR7-A) 480 Table 57 Collateral obtained by taking possession and execution processes (EU CQ7) 485 5.5 SECURITISATION IN THE BANKING BOOK 486 Table 58 Securitised exposures and securitisation positions (held or acquired) by role 486 Table 59 Securitised exposures originated by BNP Paribas 487 Table 60 Securitised exposures by BNP Paribas as an originator by underlying asset category 488 Table 61 Exposures securitised by the institution – exposures in default (EU SEC5) 488 Table 62 Securitised exposures by BNP Paribas as sponsor by underlying asset category 489 Table 63 List of securitisation vehicles Initiated by the Group (SEC-A) 490 Table 64 Securitisation exposures in the non-trading book (EU SEC1) 493 Table 65 Banking book securitisation position quality 494 Table 66 Securitisation positions and risk-weighted assets movements by key driver 495 Table 67 Securitisation exposures and risk-weighted assets – institution acting as originator or as sponsor (EU SEC3) 496 Table 68 Securitisation positions and risk-weighted assets – BNP Paribas acting as investor (EU SEC4) 498 5.6 COUNTERPARTY CREDIT RISK 500 Table 69 Counterparty credit risk exposure at default by asset class (excl. CVA risk charge) 503 Table 70 Counterparty credit risk exposure at default by product (excl. CVA risk charge) 504 Table 71 Bilateral counterparty credit risk exposure at default by approach (EU CCR1) 505 Table 72 IRBA bilateral counterparty credit risk exposure at default (EU CCR4) 507 Table 73 Standardised bilateral counterparty credit risk exposure at default (EU CCR3) 509 Table 74 Exposure to central CCPs (EU CCR8) 510 Table 75 CVA risk capital charge (EU CCR2) 511 Table 76 Composition of collateral for CCR exposures given and received (EU CCR5) 511 Table 77 Credit derivative exposures (EU CCR6) 512 Table 78 Counterparty credit risk capital requirement and risk-weighted assets 513 Table 79 Counterparty credit RWA movements by key driver (EU CCR7) 513 5.7 MARKET RISK 514 Table 80 Market risk capital requirement and risk-weighted assets 514 Table 81 Market risk under the internal model approach (EU MR2-A) 515 Table 82 Market risk under the standardised approach (EU MR1) 515 Table 83 Market risk-weighted assets movements by key driver (EU MR2-B) 516 Table 84 Value at Risk (1-day, 99%) 520 Figure 11 Quarterly change in VaR (1-day, 99%) 521 Figure 12 Comparison between VaR (1-day, 99%) and daily trading revenue (EU MR4) 522 Figure 13 Distribution of daily trading revenue 522 Table 85 Value at Risk (10-day, 99%) 523 Table 86 Stressed Value at Risk (1-day, 99%) 523 Table 87 IMA values for trading portfolios (EU MR3) 524 Table 88 Breakdown of trading book securitisation positions outside correlation book by asset type (EU SEC2) 525 Table 89 Breakdown of trading book securitisation positions and capital requirements outside correlation book by risk weight 526 Table 90 Sensitivity of revenues to global interest rate risk based on a 50 basis point increase or decrease in the interest rates (EU IRRBB1A) 530 Table 91 Sensitivity of Tier 1 capital economic value and sensivity of Tier 1 net interest income to the regulatory stress test scenarios (EU IRRBB1B) 531 Table 92 Hedged cash flows 532 5.8 LIQUIDITY RISK 533 Table 93 Breakdown of the wholesale funding by currency 535 Table 94 Breakdown of the Group’s medium long term (MLT) wholesale funding 536 Table 95 Trends in Group MLT wholesale funding 536 Table 96 MLT secured wholesale funding 537 Table 97 Breakdown of global liquidity reserve (counterbalancing capacity) 538 Table 98 Short-term liquidity ratio (LCR) – Itemised (EU LIQ1) 539 Table 99 Net stable funding ratio (EU LIQ2) 541 Table 100 Contractual maturities of the prudential balance sheet (EU CR1-A) 544 Table 101 Contractual maturities of capital instruments and medium long-term debt securities in the prudential scope 546 Table 102 Economic maturities of subordinated debt (prudential perimeter) 547 Table 103 Encumbred and unencumbered assets 548 5.9 OPERATIONAL RISK 552 Figure 14 Operational losses – Breakdown by event type (average 2016-2024) 557 Table 104 Operational risk capital requirement and risk-weighted assets (EU OR1) 558 5.10 INSURANCE RISKS 559 Table 105 Breakdown of BNP Paribas Cardif Group investments (excluding investments in unit-linked contracts) 561 Table 106 Bond exposure by issuer and rating (excluding investments in unit-linked contracts and Eurocroissance contracts) 562 5.11 ENVIRONMENTAL, SOCIAL AND GOVERNANCE RISK 563 Table 107 Exposure to government bond and similar by issuing country (excluding investments in unit-linked contracts and Eurocroissance contracts) 572 Table 108 Credit quality of exposures by sector, emissions and residual maturity 583 Table 109 Exposures to top 20 carbon-intensive firms 584 Table 110 Loans collateralised by immovable property – energy efficiency of the collateral 585 Table 111 Exposures subject to potential physical risk 587 Table 112 Summary of key performance indicators (KPIs) aligned with the taxonomy 589 Table 113 Assets for the GAR calculation 590 Table 114 GAR (%) 598 Table 115 GAR flux (%) 602 Table 116 Other climate change mitigation actions not covered by the taxonomy 605 Appendix 7: Acronyms Acronyms ABCP Asset-Backed Commercial Paper ABS Asset-Backed Securities ACPR Autorité de contrôle prudentiel et de résolution ALCo Asset and Liability Committee EFTA European Free Trade Association AFG Affaires Fiscales Groupe (Group Tax Department) A-IRB Advanced internal ratings-based approach ALM Asset and Liability Management AMA Advanced measurement approach AMF Autorité des Marchés Financiers (French Financial Markets Authority) ASA Alternative Standardised Approach AVA Additional Valuation Adjustments BCBS Basel Committee on Banking Supervision ECB European Central Bank CPBF Commercial & Personal Banking in France CPBB Commercial & Personal Banking in Belgium BNB Banque Nationale de Belgique BNL Banca Nazionale del Lavoro BRRD Bank Recovery and Resolution Directive CCA Climate Change Adaptation CCDG Executive Management Credit Committee CDDG Executive Management Receivables Committee CCF Credit Conversion Factor CCIRC Internal Control, Risk Management and Compliance Committee CCM Climate Change Mitigation CC Central Counterparty CDO Collaterised Debt Obligations CDS Credit Default Swap CEBS Committee of European Banking Supervisors CFA French African Community CFP Change Franc Pacifique CGEN Corporate Governance, Ethics, Nominations and CSR Committee CIB Corporate & Institutional Banking HRC Homogeneous Risk Category CLO Collaterised Loan Obligations CMAP Centre for Applied Mathematics CMBS Commercial Mortgage Backed Securities CMG Crisis Management Group CPBS Commercial, Personal Banking & Services CRD Capital Requirement Directive (European directive) CRM Comprehensive Risk Measure CRR Capital Requirement Regulation (EU regulation amended by CRR2) SRB Single Resolution Board CSA Credit Support Annex CVA Credit Valuation Adjustment DPE Energy Performance Diagnosis D-SIBS Domestic Systemically Important Banks EAD Exposure at Default EBA European Banking Authority ECAIs External Credit Assessment Institutions EDTF Enhanced Disclosure Task Force EEA European Economic Area EEPE Effective Expected Positive Exposure EHQLA Assets of extremely high liquidity and credit quality EPE Expected Positive Exposure EIOPA European Insurance and Occupational Pensions Authority EIS Systemically important institution G-SII Global systemically important institution EL Expected Loss EMIR European Market Infrastructure Regulation (European regulation) EMTN Euro Medium-Term Note EP4 4th version of the Equator Principles EPC Energy Performance Contract ESG Environmental Social and Governance ESG-A ESG Assessment ESMA European Securities and Markets Authority ESRB European Systemic Risk Board FBF Fédération Bancaire Française (French Banking Federation) Fed Federal Reserve System of the United States FICC Fixed Income Credit and Commodities FLAIR Forward Looking Adjustment of Internal Rating IMF International Monetary Fund FMRC Financial Markets Risk Committee FRTB Fundamental review of trading book FSB Financial Stability Board FSRU Floating Storage and Regasification Unit GAFAM Google, Apple, Facebook, Amazon, Microsoft GCM Global Clearing Member GHG Greenhouse gas emissions GHOS Central Bank Governers and Bank Supervisors Group GITRC Group IT Risk Committee GSCC Group Supervisory and Control Committee G-SIBs Global systemically important banks GTS Growth Technology Sustainability GWWR General Wrong Way Risk HQLA High Quality Liquid Assets ICAAP Internal Capital Adequacy Assessment Process (under Pillar 2) ICT Information, communication and technology IFRS International Financial Reporting Standards IMM Internal Model Method IPS Investment & Protection Services IRB International Retail Banking IRBA Internal Ratings-Based Approach (internal models) IRC Incremental Risk Charge ISDA International Swaps and Derivatives Association STIs Implementing Technical Standards JJ Overnight Rate LBO Leveraged Buy-Out LCR Liquidity Coverage Ratio LGD Loss Given Default KYC Know Your Client LTV Loan-to-Value MAP Market Parameter MFI MI Markets and Financial Institutions - Management Information MLT Medium and long term NIM Net interest margin MDA Maximum Distributable Amount MREL Minimum Requirement for own funds and Eligible Liabilities SSM Single Supervisory Mechanism MTN Medium-Term Note NACE Statistical classification of economic activities in the European Community NIST National Institute of Standards and Technology NFRD Non-Financial Reporting Directive NGFS Network for Greening the Financial System NPV Net Present Value NSFR Net Stable Funding Ratio NUTS3 Classification of territorial units for statistics, level 3 corresponding to the departments NZBA Net-Zero Banking Alliance OAT Obligations Assimilables du Trésor (10-year French government bonds) OECD Organisation for Economic Cooperation and Development SDG Sustainable Development Goals OIS Overnight Indexed Swap ILO International Labour Organization IMO International Maritime Organisation OPC Collective investment undertakings ORM Operational Risk Management ORSA Own Risk and Solvency Assessment OS Open Source (source designed to be accessible to the public) OTC Over-the-counter P2G Pillar 2 Guidance P2R Pillar 2 Requirement (prudential requirement) bp Basis points PCAF Partnership for Carbon Accounting Financials PD Probability of Default PFC Product and Financial Control Committee PFE Potential Future Exposure GDP Gross Domestic Product PM Portfolio Management SME Small and Medium-sized Enterprise SR Policyholders’ Surplus Reserve PRB Principles for Responsible Banking PRI Principles for Responsible Investment PVA Prudent Valuation Adjustment RAS Risk Appetite Statement RC Replacement cost RDPC Risk and Development Policy Committees GDPR General Data Protection Regulation RMBS Residential Mortgage-Backed Securities CSR Corporate Social Responsibility RW Risk weight SA-CCR Standardised Approach for Counterparty Credit Risk SEC-ERBA External ratings-based approach SEC-IRBA Internal ratings-based approach SEC-SA Standardised approach SFCR Solvency and Financial Condition Report SFSC Sustainable Finance Strategic Committee SFT Securities Financing Transaction SREP Supervisory Review and Evaluation Process STFS Stress Testing and Financial Simulations STS Simple, transparent and standard STSC Stress Testing Steering Committee SWWR Specific Wrong Way Risk SyRB Systemic risk buffer TCP Thematic Credit Policy TLAC Total Loss Absorbing Capacity TLTRO Targeted Long-Term Refinancing Operation MGR Minimum guaranteed rate EIR Effective Interest Rate GRR Global Recovery Rate SRT Significant Risk Transfer TSA Standardised approach TTC Through The Cycle US MTN United States Medium-Term Note V&RC Risk valuation and control team VaR Value at Risk SVaR Stressed VaR VFA Variable Fee Approach VMC Valuation Methodology Committee VMCP Valuation Methodology Control Policy VRC Valuation Review Committee (1) The disclosures required under article 450 concerning the Group’s compensation policy are available in the Compensation of regulated employees section of the Investor Relations website: https://invest.bnpparibas.com/en/compensation-regulated-employees. (2) CRD 5; including IFRS 9 transitional provisions. (3) Risk factors: 6.2 The BNP Paribas Group may incur substantial fines and administrative and other criminal penalties for non-compliance with applicable laws and regulations and may also incur losses in related (or unrelated) litigation with private parties. (4) CRD 5, including IFRS 9 transitional arrangements. (5) Eurogroup statement on the future of the Banking Union of 16 June 2022 – Consilium (europa.eu). (6) Average PD: “Probability of Default” – average probability of default weighted by exposure at default. (7) Average CCF: “Credit Conversion Factor” – ratio of exposure at default to off-balance sheet exposure. (8) Average LGD: “Loss Given Default” – average Loss Given Default weighted by exposure at default. (9) At 31 December 2024, the Group’s non-performing loans ratio was 2.4%, compared with 2.2% at 31 December 2023. This ratio is used by the European Banking Authority to monitor non-performing outstandings in Europe. It is calculated on the basis of gross outstanding of loans, receivables and deposits with central banks, not netted of guarantees received. (10) Appendices III and V of Implementing Regulation (EU) No. 2021/451 on supervisory reporting. (11) Gross credit risk exposures across all regulatory exposure classes. They amounted to EUR 1,828 billion at 31 December 2024. (12) BNP Paribas Financial Institution Global Risks Landscape is a document, produced annually and presented to the Group RISK Anticipation Committee, that proposes a panorama of the global risks (uncertainties, vulnerabilities, trends and threats) of all natures (economic, technological, business, geopolitical socio-political & environmental, etc.) that should be taken into account when trying to anticipate scenarios that could lead to direct or indirect damages for financial institutions, in the short, medium and longer term (13) The Integrated Assessment Model - Regional Model of Investment and Development (14) EBA draft ITS on Pillar 3 disclosures on ESG risks.pdf (europa.eu). (15) In accordance with article 12 (1) (d) to (g) and article 12 (2) of Regulation (EU) 2020/1818. (16) As per Regulation (EU) 2020/1818, companies active in fossil fuel are those that derive revenues from exploration, mining, extraction, production, processing, storage, refining or distribution, including transportation, storage and trade, of fossil fuels with the following thresholds 1% for coal, 10% for oil, 50% for gas. (17) This information is an integral part of the sustainability statements, presented in Chapter 7.1, and is covered by the certification report on sustainability statements (18) Carbon Majors Downloads - The Carbon Majors 2022 dataset (19) Directive 2010/31/EU. (20) Directive 2012/27/EU. Information on the parent company financial statements at 31 December 2024 6.1BNP Paribas SA financial statements Income statement for the year ended 31 December 2024 Balance sheet at 31 December 2024 Notes to the parent company financial statements Note 1Summary of significant accounting principles applied by BNP Paribas SA Note 2Notes to the 2024 income statement Note 3Notes to the balance sheet at 31 December 2024 Note 4Financing, guarantee and securities commitments Note 5Salaries and employee benefits Note 6Additional information 6.2BNP Paribas SA five-year financial summary 6.3Disclosures of investments of BNP Paribas SA in 2024 affecting at least 5% of share capital of French companies 6.4Non-tax-deductible expenses and charges 6.5Statutory Auditors’ report on the financial statements 6.1BNP Paribas SA financial statements The annual financial statements were approved by the Board of directors of BNP Paribas SA on 3 February 2025. Income statement for the year ended 31 December 2024 In millions of euros Notes Year to 31 December 2024 Year to 31 December 2023 Interest income 2.a 73,566 67,392 Interest expense 2.a (69,993) (64,304) Income on equities and other variable instruments 2.b 5,790 8,211 Commission income 2.c 9,480 8,545 Commission expense 2.c (2,374) (2,042) Net gains on trading account securities 2.d 9,505 9,552 Net losses on securities available for sale 2.e (1,289) (228) Other banking income 447 557 Other banking expenses (456) (490) NET BANKING INCOME 24,676 27,193 Salaries and employee benefit expense 5.a (8,860) (8,765) Other administrative expenses (5,005) (6,132) Depreciation, amortisation and impairment on tangible and intangible assets (722) (741) GROSS OPERATING INCOME 10,089 11,555 Cost of risk 2.f (808) (748) OPERATING INCOME 9,281 10,807 Gains or losses on long-term investments 2.g 919 (538) Net additions to or reversals of regulated provisions (1) 34 INCOME BEFORE TAX 10,199 10,303 Corporate income tax 2.h (639) (683) NET INCOME 9,560 9,620 Balance sheet at 31 December 2024 In millions of euros, at Notes 31 December 2024 31 December 2023 ASSETS Cash and amounts due from central banks 142,855 234,997 Treasury bills and money-market instruments 3.c 172,478 159,168 Due from credit institutions 3.a 280,623 216,239 Customer items 3.b 608,500 586,322 Bonds and other fixed-income securities 3.c 176,215 140,476 Equities and other variable-income securities 3.c 3,210 2,356 Investments in subsidiaries and equity securities held for long-term investment 3.c 3,920 4,006 Investments in affiliates 3.c 50,804 48,654 Intangible assets 3.j 2,646 2,635 Tangible assets 3.j 2,087 2,093 Treasury shares 3.d 38 38 Other assets 3.h 208,536 189,177 Accrued income 3.i 132,880 126,335 TOTAL ASSETS 1,784,792 1,712,496 LIABILITIES Central banks 1,237 1,330 Due to credit institutions 3.a 241,955 227,418 Customer items 3.b 857,658 839,734 Debt securities 3.f 203,101 180,433 Other liabilities 3.h 233,144 230,846 Accrued expenses 3.i 125,026 115,121 Provisions 3.k 2,919 1,990 Subordinated debt 3.l 32,702 31,882 TOTAL LIABILITIES 1,697,742 1,628,754 SHAREHOLDERS’ EQUITY 6.b Share capital 2,262 2,295 Additional paid-in capital 16,547 17,565 Reserves and Retained earnings 58,681 54,262 Net income for the period 9,560 9,620 TOTAL SHAREHOLDERS’ EQUITY 87,050 83,742 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,784,792 1,712,496 Off-balance sheet Notes 31 December 2024 31 December 2023 COMMITMENTS GIVEN Financing commitments 4.a 444,574 447,356 Guarantee commitments 4.b 212,897 211,773 Commitments given on securities 4.b 36,125 51,108 COMMITMENTS RECEIVED Financing commitments 4.a 121,699 178,847 Guarantee commitments 4.b 313,312 323,022 Commitments given on securities 4.b 46,722 54,234 Notes to the parent company financial statements Note 1Summary of significant accounting principles applied by BNP Paribas SA BNP Paribas SA’s financial statements have been prepared in accordance with generally accepted accounting principles applied to credit institutions in France, set out in ANC (French Accounting Standards Authority) Regulation No. 2014-07 of 26 November 2014 and its amending regulations since that date. Amounts due from credit institutions and customers Amounts due from credit institutions include all subordinated and unsubordinated loans made in connection with banking transactions with credit institutions, with the exception of debt securities. They also include assets purchased under resale agreements, whatever the type of assets concerned, and receivables corresponding to securities sold under collateralised repurchase agreements. They are broken down between demand loans and deposits, and term loans and time deposits. Amounts due from customers include loans to customers other than credit institutions, with the exception of loans represented by debt securities issued by customers, assets purchased under resale agreements, whatever the type of assets concerned, and receivables corresponding to securities sold under collateralised repurchase agreements. They are broken down between commercial loans, customer debit accounts, and other loans. Amounts due from credit institutions and customers are recorded in the balance sheet at nominal value plus accrued interest not yet due. Outstanding loans and confirmed credit facilities are broken down into sound loans, including sound restructured loans, and doubtful loans. The same analysis is performed for credit risks attached to forward financial instruments whose present value represents an asset for the Group. Credit risks are monitored using BNP Paribas SA’s internal credit risk rating system. This system is based on two key parameters: the probability of default by the counterparty, expressed as a rating, and the overall recovery rate determined by reference to the type of transaction. There are twelve counterparty ratings: ten covering sound loans and two covering doubtful loans and loans classified as irrecoverable. Doubtful loans are defined as loans where the Bank considers that there is a risk that the borrowers will be unable to honour all or part of their commitments. The definition of default is consistent with the Basel definition, which takes into account the EBA guidelines of 28 September 2016, in particular the applicable thresholds for overdue amounts and probationary periods. Loans overdue for more than 90 days, as well as loans subject to litigation are considered as doubtful. When a loan is classified as doubtful, all other loans and commitments to the debtor are automatically assigned the same classification. The Bank recognises an impairment for doubtful accounts on these loans, in an amount corresponding to the difference between the gross loan value and present value of the future cash flows (from principal, interest, and any realised guarantees) that are deemed recoverable, using a discount rate equal to the original effective interest rate (for fixed-rate loans), or the most recent contractual interest rate (for floating-rate loans). The guarantees considered here include mortgages and pledges on assets, as well as credit derivatives acquired by the Bank as a protection against credit losses in the loan book. These impairments are determined on an individual or collective basis based on statistical models for loan portfolios with similar risks and not impaired individually. If a loan is restructured because the borrower is facing financial difficulties, the Bank calculates a discount equal to the difference in present value between the old and new repayment terms. These discounts are recognised as a deduction to assets and reversed through income on an actuarial basis over the remaining term of the loan. If any instalments on a restructured loan are not paid, the loan is reclassified as doubtful or irrecoverable. In the case of doubtful loans where the borrower has resumed making regular payments in accordance with the original repayment schedule, the loan is reclassified as sound. Similarly, doubtful loans that have been restructured, where the restructuring terms are satisfied and for which the credit risk is no longer proven, are also reclassified as sound. Irrecoverable loans include loans to borrowers whose credit standing is such that after a reasonable time classified as doubtful loans, no reclassification as a sound loan is foreseeable, loans where an event of default has occurred, almost all restructured loans where the borrower has once again defaulted, and loans classified as doubtful for more than one year that are in default and are not secured by guarantees covering a substantial portion of the amount due. Impairments for credit risk on doubtful loans are deducted from the carrying amount of the assets on the balance sheet. Provisions recorded under liabilities include provisions related to off-balance sheet commitments, loss provisions relating to interests in real-estate development programmes, provisions for claims and litigation, and provisions for unforeseeable industry risks. Additions to and recoveries of provisions and impairment, losses on irrecoverable loans, recoveries on loans covered by provisions and discounts calculated on restructured loans are recorded in the income statement under “Cost of risk”. The interest received from the repayment of the carrying amount of loans that have been written-down, as well as the reversals of discounting effects and the discount on restructured loans, are recognised under “Interest income”. Change in the estimation modalities of provisions for expected credit risk In addition to impairments for doubtful loans, the Bank records additional provisions for expected credit risk, in accordance with the principle of prudence. In 2024, the Bank made a change in how the valuation of these additional provisions is estimated, in order to provide better information with regard to its activity and its credit risk management practices. These estimates were previously based on a calculation of provisions for international commitments and are now based, from 2024, on a calculation of expected credit losses calculated on the entire non-doubtful loan portfolio. This change in valuation technique is a change in estimate that affects the income statement under “Cost of risk” at 31 December 2024. At 31 December 2023, provisions for international commitments were based on the evaluation of non-transfer risk related to the future solvency of each of the countries at risk and on the systemic credit risk incurred by debtors in the event of a constant and durable deterioration in the overall situation and economies of these countries. Additions and reversals of these provisions were reflected in the income statement under “Cost of risk”. Expected credit losses on non-doubtful loans For the portfolio of non-doubtful loan outstandings, consisting of loans and commitments by signature, the Bank calculates expected credit losses. As soon as each commitment is initially recognised, a provision for impairment is recognised, with a counterparty corresponding against an entry in the income statement under “Cost of risk”. Expected credit losses are defined as an estimate of credit losses (i.e. the present value of cash shortfalls) weighted by the probability of occurrence of these losses over the expected life of the outstandings, taking into account past events, current circumstances and reasonable and justifiable forecasts of the economic environment. In practice, they are calculated as the product of the probability of default, the Loss Given Default (taking into account, where applicable, collateral held or other credit enhancements) and the amount of exposure at default discounted at the effective interest rate of the exposure. They are measured on the basis of changes in the counterparty default risk since the initial recognition of the outstanding amount. 12-month expected credit losses: if at the reporting date, the credit risk on the outstanding has not increased significantly since its initial recognition, a provision is constituted for an amount equal to the 12-month expected credit losses (resulting from the risk of default within the next 12 months). Expected credit losses at maturity: the provision is valued at an amount equal to the expected credit losses over the residual life of the loan if the credit risk since the initial recognition of the commitment has increased significantly without giving rise to a reclassification to potentially recoverable or irrecoverable doubtful outstandings. The assessment of a significant increase in credit risk is based in particular on the following indicators: the comparison of the probabilities of default resulting from the ratings at the date of initial recognition of the outstandings with those existing at the reporting date. The increase in credit risk is therefore generally considered significant if the probability of default at maturity has been multiplied by at least threefold or if it has increased by 400 basis points since origination; the existence of a delay in contractual payments of more than 30 days; restructuring due to financial difficulties (insofar as the facility is not doubtful); monitoring of performing corporate clients placed under credit watch. Regulated savings and loan contracts Home savings accounts (Comptes Épargne Logement – “CEL”) and home savings plans (Plans d’Épargne Logement – “PEL”) are government-regulated retail products for individuals sold in France. They combine a savings phase and a loan phase which are inseparable, with the loan phase contingent upon the savings phase. These products contain two types of obligations for BNP Paribas SA: an obligation to pay interest on the savings for an indefinite period at a rate set by the government on inception of the contract (in the case of PEL products) or at a rate reset every half-year using an indexation formula set by law (in the case of CEL products); and an obligation to lend to the customer (at the customer’s option) an amount contingent upon the rights acquired during the savings phase at a rate set on inception of the contract (in the case of PEL products) or at a rate contingent upon the savings phase (in the case of CEL products). BNP Paribas SA’s future obligations with respect to each generation (in the case of PEL products, a generation comprises all products with the same interest rate at inception; in the case of CEL products, all such products constitute a single generation) are measured by discounting potential future earnings from at-risk outstandings for that generation. At-risk outstandings are estimated on the basis of a historical analysis of customer behaviour, and equate to statistically probable outstanding loans and the difference between statistically probable outstandings and minimum expected outstandings, with minimum expected outstandings being deemed equivalent to unconditional term deposits. Earnings for future periods from the savings phase are estimated as the difference between the reinvestment rate and the fixed savings interest rate on at-risk savings outstanding for the period in question. Earnings for future periods from the loan phase are estimated as the difference between the refinancing rate and the fixed loan interest rate on at-risk outstanding loans for the period in question. The reinvestment rate for savings and the refinancing rate for loans are derived from the swap yield curve and from the spreads expected on financial instruments of similar type and maturity. Spreads are determined on the basis of actual spreads on fixed-rate home loans in the case of the loan phase and on products offered to retail clients in the case of the savings phase. In order to reflect the uncertainty of future interest-rate trends, and the impact of such trends on customer behaviour models and on at risk outstandings, the obligations are estimated using the Monte-Carlo method. When the sum of BNP Paribas SA’s estimated future obligations with respect to the savings and loan phases of any generation of contracts indicates a potentially unfavourable situation for BNP Paribas SA, a provision is recognised, with no offset between generations, in the balance sheet under “Provisions”. Movements in this provision are recognised as interest income and expense in the income statement. Securities The term “Securities” covers interbank market securities, treasury bills and negotiable certificates of deposit, bonds and other “fixed-income” securities (whether fixed- or floating-rate), equities and other variable-income securities. Securities are classified as: “trading securities”, “securities available for sale”, “equity securities available for sale in the medium term”, “debt securities held to maturity”, “equity securities held for long-term investment”, or “investments in subsidiaries and affiliates”. From 1 January 2018, trading securities acquired or disposed of under agreements whose terms require delivery of the securities within a period defined by regulation or by an agreement on the relevant market are recorded in the balance sheet on the settlement date. This change has no impact on the opening income statement or equity. Other categories of securities acquired or disposed of under the same conditions are recorded on the transaction date. When a credit risk has occurred, fixed-income securities held in the “Available for sale” or “Held to maturity” portfolio are classified as doubtful, based on the same criteria as those applied to doubtful loans and commitments. When securities exposed to counterparty risk are classified as doubtful and the related provision can be separately identified, the corresponding charge is included in “Cost of risk”. Trading account securities “Trading account securities” are securities bought or sold with the intention of selling them or repurchasing them in the near future, as well as those held as a result of market-making activities. These securities are valued individually at market value if they meet the following criteria: they can be traded on an active market (i.e. a market where third parties have continuous access to market prices through a securities exchange, brokers, traders, or market-makers); the market prices reflect actual, regularly-occurring transactions taking place under normal competition conditions. “Trading account securities” also include securities bought or sold for specific asset-management objectives (especially in terms of sensitivity) for trading books comprised of forward financial instruments, securities, or other financial instruments taken globally, as well as borrowed securities. When the latter are not backed by cash, they are presented in the balance sheet as a deduction from the debt representing the value of the borrowed securities. In the same way, financial instruments received as fully-owned collateral under financial guarantee contracts with the right of re-use, recorded in the balance sheet and revalued according to the rules applicable to trading securities, are presented with a deduction from the liability representing the restitution commitment. Changes in the market value of these securities are recognised in income. “Trading account securities” cannot be reclassified into another category and must follow the valuation rules for this category until they are sold, fully redeemed, or recognised as a loss and consequently removed from the balance sheet. In the case of exceptional market circumstances necessitating a change in investment strategy, “Trading securities” can be reclassified as “Securities available for sale” or “Debt securities held to maturity” depending on the new strategy adopted. If fixed-income securities classified as “Trading securities” can no longer be traded on an active market, and if the Bank has the intention and ability to hold these securities for the foreseeable future or until maturity, they can be reclassified as “Securities available for sale” or “Debt securities held to maturity”. The accounting rules for each category concerned apply as of the reclassification date. If the market in which securities classified as “Trading account securities” were purchased can no longer be considered active, the securities will be valued using methods that take into account the new market conditions. Securities available for sale The “Securities available for sale” category includes securities not classified into one of the other categories. Bonds and other fixed-income securities are valued at the lower of cost (excluding accrued interest) or probable market prices. This is generally determined on the basis of stock market prices. Accrued interest is posted to the income statement under “Interest income on bonds and other fixed-income securities”. For fixed-income securities available for sale that have been purchased on the secondary market, any difference between cost and redemption price is recognised in income using the actuarial method over the remaining life of the securities. On the balance sheet, their carrying amount is amortised to their redemption value over their remaining life. Equities are valued at the lower of cost or probable market prices. This is generally determined on the basis of stock market prices for listed equities, or BNP Paribas SA’s share in net equity, calculated on the basis of the most recent financial statements available, for unlisted equities. Dividends received are recognised in the income statement under “Income on variable-income securities” on a cash basis. The cost of securities available for sale that have been sold is determined on a first in, first out (FIFO) basis. Disposal gains or losses, and additions to and reversals of lower of cost and market provisions are reflected in the income statement under “Gains (losses) on securities available for sale”. In the case of exceptional circumstances necessitating a change in investment strategy, or if the securities can no longer be traded on an active market, securities classified as “Securities available for sale” may be reclassified as “Debt securities held to maturity” and must be identified within this portfolio. These securities would then be recognised according to the method used for “Debt securities held to maturity”. Equity securities available for sale in the medium term Equity securities available for sale in the medium term comprise investments made for portfolio management purposes, with the aim of realising a profit in the medium term without investing on a long-term basis in the development of the issuer’s business. This category includes venture capital investments. Equity securities available for sale in the medium term are recorded individually at the lower of historic cost and fair value. Fair value takes into account the issuer’s general business outlook and the planned holding period. The fair value of listed shares is determined by reference to the average stock market price determined over a one-month period. Debt securities held to maturity Fixed-income securities with a specified maturity (mainly bonds, interbank market securities, treasury bills, and other negotiable debt securities) are recorded under “Debt securities held to maturity” to reflect BNP Paribas SA’s intention of holding them to maturity. Bonds classified under this heading are financed by matching funds or hedged against interest-rate exposure for their remaining lives. The difference between cost and the redemption price of these securities is recognised in income using the actuarial method over the remaining life of the securities. On the balance sheet, their carrying amount is amortised to their redemption value over their remaining life. Interest on debt securities held to maturity is recorded in the income statement under “Interest income on bonds and other fixed-income securities”. An impairment is recognised when a decline in the credit standing of an issuer jeopardises redemption at maturity. If a significant portion of the “debt securities held to maturity” is sold or reclassified into a different category, the sold or reclassified securities cannot be returned to the “Debt securities held to maturity” category at any time during the current financial period or the following two financial years. All the securities classified as “Debt securities held to maturity” would then be reclassified as “Securities available for sale in the medium term”. If exceptional market circumstances necessitate a change in investment strategy, and “Trading account securities” and “Securities available for sale” are reclassified as “Debt securities held to maturity”, the sale of any “Debt securities held to maturity” prior to the maturity date would not invoke the reclassification clauses in the above paragraph if the sale occurred because the securities had once again become tradable on an active market. Equity securities held for long-term investment, investments in subsidiaries and affiliates Equity interests include investments in subsidiaries and affiliates in which BNP Paribas SA exercises significant influence over management and investments considered strategic to BNP Paribas SA’s business development. This influence is deemed to exist when BNP Paribas SA holds an ownership interest of at least 10%. “Equity securities held for long-term investment” are shares and related instruments that BNP Paribas SA intends to hold on a long-term basis in order to earn a satisfactory long-term rate of return without taking an active part in the management of the issuing company, but with the intention of promoting the development of lasting business relationships by creating special ties with the issuer. Other investments in affiliates consist of shares and other variable-income securities in companies over which BNP Paribas SA has exclusive control (i.e. companies likely to be fully consolidated into the Group). These types of securities are recorded individually at the lower of cost and fair value. Fair value for each security is determined on the basis of available information, including discounted future cash flows, net revalued assets and/or multiples commonly used to assess future yields. For securities listed on an active market, the fair value is considered to be the average market price over the previous one-month period. For simplicity, listed securities acquired for less than EUR 10 million may be valued on the basis of the average closing stock market price in the month prior to closing. Disposals, gains or losses and provision movements are recorded in the income statement under “Net gains or losses on disposals of long-term investments”. Dividends are recognised as soon as payment has been approved by the Annual General Meeting or when they are received if the shareholders’ decision is unknown. They are recorded under “Income on equities and variable-income securities”. Treasury shares Treasury shares held by BNP Paribas SA are classified and valued as follows: treasury shares held, purchased under a market-making agreement or acquired in connection with index arbitrage transactions are recorded under “Trading securities” at market price; shares held for allocation to employees are recorded in the securities available for sale category. Shares granted to employees of BNP Paribas SA subsidiaries and branches are re-invoiced to them, in accordance with the applicable local provisions; treasury shares held to be granted to employees are not impaired, but a provision is recognised for these shares based on the services provided by the employees who will receive the shares; treasury shares that are intended to be cancelled or that are not being held for either of the above reasons are included in long term investments. Treasury shares intended to be cancelled are stated at cost. All others are stated at the lower of cost and fair value. Fixed assets Buildings and equipment are stated at acquisition cost or at the adjusted value determined in accordance with France’s finance laws of 1977 and 1978. Revaluation differences on non-depreciable assets, recorded at the time of these statutory revaluations, are included in share capital. Fixed assets are initially recognised at purchase price plus directly attributable costs, together with borrowing costs where a long period of construction or adaptation is required before the asset can be brought into service. Software developed by the Bank, that fulfils the criteria for capitalisation, is capitalised at direct development cost, which includes external costs and staff costs directly attributable to the project. Subsequent to initial recognition, fixed assets are measured at cost less accumulated depreciation or amortisation and any impairment losses. Fixed assets are depreciated or amortised using the straight-line method over the useful life of the asset. Depreciation and amortisation expenses are recognised in the income statement under “Depreciation, amortisation, and provisions on property, plant and equipment and intangible assets”. The portion of recognised depreciation or amortisation that exceeds the economic amount, mainly calculated on a straight-line basis, is recorded in the balance sheet as a liability under “Regulatory provisions: accelerated depreciation and amortisation”. BNP Paribas SA does not calculate the deferred tax effects of accelerated depreciation and amortisation. Where an asset consists of a number of components which may require replacement at regular intervals, or which have different uses or generate economic benefits at different rates, each component is recognised separately and depreciated using a method appropriate to that component. BNP Paribas SA has adopted the component-based approach for property used in operations. The depreciation periods used for office property are as follows: 80 years or 60 years for the shell (for prime and other property respectively); 30 years for facades; 20 years for general and technical installations; and 10 years for fixtures and fittings. Depending on its type, software is amortised over a period of no more than 8 years for infrastructure developments and 3 years or 5 years in the case of software developed primarily for the purpose of providing services to customers. Depreciable fixed assets are tested for impairment if there is an indication of potential impairment loss at the reporting date. Non-depreciable assets are tested for impairment annually. If there is an indication of impairment, the new recoverable amount of the asset is compared with the carrying amount. If the asset is found to be materially impaired, an impairment loss is recognised in the income statement. This impairment loss is reversed in the event of a change in the estimated recoverable amount or if there is no longer an indication of impairment, with the exception of goodwill and residual merger premium (see below) allocated to goodwill. Impairment losses are taken into account in the income statement under “Depreciation, amortisation, and provisions on property, plant and equipment and intangible assets”. Goodwill in the business is now presumed to have an unlimited period of use. It is therefore non-amortisable, without any required justification. However, this is a refutable presumption, meaning that if there is a limited period for use, the goodwill must be amortised over its actual or fixed period of use (10 years) if it is not possible to reliably assess this period. In addition, if goodwill is not amortised, it must now be tested for impairment annually regardless of whether there is any indication of impairment. The merger premium is allocated to the various assets contributed as a result of mergers and similar transactions up to the limit of identified unrealised gains. The amount is allocated in the dedicated sub-accounts of the assets concerned, according to the amortisation, depreciation and provisioning rules for these assets. After allocation to the different underlying assets (see above), the net balance of the residual merger premium is carried to goodwill. Gains and losses on disposals of property, plant and equipment, and intangible assets used in operations are recognised in the income statement under “Net gains or losses on disposals of long-term investments”. Amounts due to credit institutions and customers Amounts due to credit institutions and customers are presented according to their initial term or type: demand accounts and time deposits for credit institutions; regulated savings accounts and other deposits for customers. These sections include securities and other assets sold under repurchase agreements depending on the type of counterparty. Accrued interest is recorded on a separate line. Savings accounts with special arrangements are presented as the centralised share with the Caisse des Dépôts et Consignations, less the savings deposits collected. Debt securities Debt securities are presented according to the nature of their support: savings certificates, interbank market securities, negotiable debt securities, bonds and similar securities, excluding subordinated notes classified as subordinated debt. Accrued interest on debt securities is recorded on a separate line of the balance sheet and is debited to the income statement. Bond issue and redemption premiums are amortised using the yield-to-maturity method over the life of the bonds. Bond issuance costs are amortised using the straight-line method over the life of the bonds. Provisions for non-banking transactions BNP Paribas SA records provisions for clearly identified contingencies and charges whose timing or amount is uncertain. In accordance with current regulations, these provisions for non-banking transactions may be recorded only if the Bank has an obligation to a third party at year-end, there is a high probability of an outflow of resources to the third party, and no equivalent economic benefits are expected in return from the third party. Cost of risk The “Cost of risk” line item includes expenses arising from the identification of counterparty and credit risks, litigation, and fraud inherent to banking transactions conducted with third parties. Net movements in provisions that do not fall under the category of such risks are classified in the income statement according to their type. Forward financial instruments Forward financial instruments are purchased on various markets for use as specific or general hedges of assets and liabilities, or for transaction purposes. The Bank’s commitments related to these instruments are recognised off-balance sheet at nominal value. The accounting treatment of these instruments depends on the corresponding investment strategy. Derivative financial instruments held for hedging purposes Income and expenses related to forward derivative financial instruments held for hedging purposes and designated to one instrument or a group of homogeneous instruments are recognised in income symmetrically with the income and expenses on the underlying instrument, and under the same accounting heading. Income and expenses related to forward financial instruments used to hedge overall interest rate risk are recognised in income on a pro rata basis. Derivative financial instruments held for trading purposes Derivatives held for trading purposes can be traded on organised markets or over-the-counter. Derivatives held within a trading book are valued at market value on the reporting date. The corresponding gains or losses (realised and unrealised) are recognised in income. They are recognised in the income statement under “Gains (losses) on trading book transactions”. The market value is determined from either: the listed price, if one is available; a valuation method using recognised financial models and theories, with parameters calculated from transaction prices observed on active markets, or from statistical or other quantitative methods. In both cases, BNP Paribas SA makes conservative value adjustments to account for modelling, counterparty, and liquidity risks. Some complex derivatives, which are typically custom-made from combined instruments and highly illiquid, are valued using models where certain parameters are not observable on an active market. The margin generated during the trading of these complex financial instruments is deferred and reversed in profit or loss over the period during which the valuation parameters are expected to be unobservable. When parameters that were originally unobservable become observable, or when the valuation can be substantiated in comparison with recent similar transactions in an active market, the unrecognised portion of the day one profit is released to the income statement. Derivative financial instruments held within an isolated open position Depending on the nature of the instruments, gains and losses on contracts representing isolated open positions are recognised in income when the contracts are settled or on a pro rata basis. Derivatives are measured at market value on the reporting date and a provision for unrealised losses is recognised for each group of homogeneous contracts. Corporate income tax A charge for corporate income tax is taken in the period in which the related taxable income and expenses are booked, regardless of the period in which the tax is actually paid. When the period in which the income and expenses are booked differs from that in which the income is taxed and expenses deducted, BNP Paribas SA recognises a deferred tax, whose amount is calculated according to the liability method, with the basis taken to be all temporary differences between the book value and tax basis of balance sheet items, and applying applicable future tax rates once these have been approved. Deferred tax assets are recognised in accordance with the likelihood of their being recovered. Following the recommendations of Pillar II of the Organisation for Economic Cooperation and Development (OECD) on the reform of international taxation, on 14 December 2022, the European Union adopted Directive 2022/2523 establishing a minimum taxation of international groups with respect to corporate income tax, applicable from 1 January 2024. Following the example provided for the consolidated financial statements prepared under French rules in application of ANC Regulation 2020-01 amended by ANC Regulation 2023-02, BNP Paribas SA does not recognise deferred taxes related to the Pillar II/GloBE rules. Given the information available, the impact of the Pillar II reform would be negligible for BNP Paribas SA when it is adopted. Employee profit-sharing As required by French law, BNP Paribas SA recognises employee profit-sharing in the income statement in the year in which the employee entitlement arises. The amount is reported under “Salaries and employee benefit expenses”. Employee benefits BNP Paribas SA employees receive each of the following four types of benefits: termination benefits, payable primarily in the case of early termination of an employment contract; short-term benefits, such as salary, annual leave, incentive plans, profit-sharing and additional payments; long-term benefits, including compensated leaves of absence, long-service awards, and other types of cash-based deferred compensation; post-employment benefits, consisting mainly in France of supplementary pension benefits paid by the BNP Paribas SA pension funds and end-of-career bonuses, and in other countries by pension plans, some of which are funded by pension funds. Termination benefits Termination benefits are employee benefits payable as a result of a decision by BNP Paribas SA to terminate a contract of employment before the legal retirement age or by an employee to accept voluntary redundancy in exchange for a benefit. Termination benefits due more than twelve months after the reporting date are discounted. Short-term benefits The Group recognises an expense when it has used services rendered by employees in exchange for employee benefits. Long-term benefits Long-term benefits are benefits (other than post-employment benefits and termination benefits) which do not fall wholly due within twelve months after the end of the period in which the employee renders the associated services. The actuarial techniques used are similar to those used for defined-benefit post-employment benefits, except that actuarial gains and losses are recognised immediately, as are the effects of any plan amendments. This category relates to compensation paid in cash and deferred for more than twelve months, which is accrued in the financial statements for the financial years during which the employee rendered the corresponding services. If this deferred variable compensation is subject to the employee’s continued presence at the vesting date, the services are presumed to been rendered during the vesting period and the corresponding compensation expense is recognised on a pro rata basis over that period. The expense is recognised under salary and employee benefits expenses with a corresponding liability in the balance sheet. It is revised to take account of any non-fulfilment of the continued presence or performance conditions, and changes in the BNP Paribas share price, for deferred compensation indexed to the share. If there is no continued presence condition, the deferred variable compensation is immediately provisioned in the financial statements of the year to which it refers; the liability is then revised on each reporting date until settlement, to account for any performance conditions, and for deferred compensation indexed to the BNP Paribas share price, to changes in the share price. In France, the changes brought about by the pension reform enacted on 14 April 2023 constitute an amendment to the plan for retirement benefits for which the impact recognised in the income statement is not material. Post-employment benefits The post-employment benefits provided to BNP Paribas SA employees in France include both defined-contribution plans and defined-benefit plans. Defined-contribution plans, such as Caisse Nationale d’Assurance Vieillesse and supplemental national and trade union plans that pay pensions to former BNP Paribas SA employees in France, do not give rise to an obligation for BNP Paribas SA and consequently do not require a provision. The amount of the employer’s contributions payable during the period is recognised as an expense. Only defined-benefit plans, such as the retirement packages paid for by BNP Paribas SA’s retirement fund and end of career bonuses, give rise to an obligation for BNP Paribas SA. This obligation must be measured and recognised as a liability by means of a provision. The classification of plans into these two categories is based on the economic substance of the plan, which is reviewed to determine whether BNP Paribas SA has a legal or constructive obligation to pay the agreed benefits to employees. Post-employment benefit obligations under defined-benefit plans are measured using actuarial techniques that take demographic and financial assumptions into account. The amount of the obligation recognised as a liability is measured on the basis of the actuarial assumptions applied by the Group, using the projected unit credit method. This method takes into account various parameters, tailored to the country in question, such as demographic assumptions, the probability that employees will leave before retirement age, salary inflation, a discount rate, and the general inflation rate. The value of any plan assets is deducted from the amount of the obligation. When the value of the plan assets exceeds the amount of the obligation, an asset is only recognised if it represents a future economic benefit in the form of a reduction in future contributions or a future partial refund of amounts paid into the plan. The amount of the obligation under a plan, and the value of the plan assets, may show significant fluctuations from one period to the next due to changes in actuarial assumptions, thereby giving rise to actuarial gains and losses. Actuarial gains and losses and the effect of limits on assets are recognised in full in profit or loss; the expected gains from investments are calculated at the discount rate of the corresponding commitments. Recognition of income and expenses Interest and fees and commissions qualified as interest are recognised on an accrual basis on a pro rata basis. These include the commissions charged by the Bank as part of an overall loan package (i.e. application fees, commitment fees, participation fees, etc.). The marginal transaction costs that the Bank must pay when granting or acquiring loans are also spread out over the effective life of the corresponding loan. Fees and commissions not qualified as interest that relate to the provision of services are recognised when the services are performed or, for ongoing services, on a pro rata basis over the length of the service agreement. The acquisition costs of securities are recognised directly as expenses. Foreign currency transactions Foreign exchange positions are generally valued at the official year-end exchange rate. Exchange gains and losses on transactions in foreign currency carried out in the normal course of business are recognised in the income statement. Exchange differences arising from the conversion of assets held on a long-term basis, including equity securities held for long-term investment, the capital made available to branches, and other foreign equity investments denominated in foreign currencies and financed in euros, are recognised as translation adjustments for the balance sheet line items recording the assets. Exchange differences arising from the conversion of assets held on a long-term basis, including equity securities held for long-term investment, the capital made available to branches, and other foreign equity investments, denominated and financed in foreign currencies, are recognised symmetrically as translation differences for the corresponding financing. Translation of accounts expressed in foreign currencies Monetary and non-monetary foreign currency-denominated assets and liabilities of foreign branches are translated into euros at the year-end exchange rate. Translation adjustments regarding the capital made available to branches outside of France are included in “Accrued income” and “Accrued expenses”. Note 2Notes to the 2024 income statement 2.aNet interest income BNP Paribas SA includes in “Interest income” and “Interest expense” all income and expenses from financial instruments measured at amortised cost according to the effective interest rate method (interest, commission and expenses) and from financial instruments measured at fair value that do not meet the definition of a derivative instrument. The change in fair value on financial instruments at fair value through profit or loss (excluding accrued interest) is recognised under “Gains (losses) on trading account securities”. Interest income and expense on derivatives accounted for as fair value hedges are included with the revenues generated by the hedged item. In millions of euros Year to 31 December 2024 Year to 31 December 2023 Income Expenses Income Expenses Credit institutions 27,613 (17,349) 33,003 (20,543) Demand accounts, loans and borrowings 19,211 (9,956) 26,096 (14,253) Securities given/received under repurchase agreements 8,069 (7,393) 6,500 (6,290) Subordinated loans 333 - 407 - Customers 36,265 (39,306) 27,708 (32,942) Demand accounts, loans, and term accounts 20,892 (20,965) 16,187 (18,295) Securities given/received under repurchase agreements 15,370 (18,341) 11,516 (14,647) Subordinated loans 3 - 5 - Finance lease 12 - 3 - Debt securities 292 (11,475) 217 (9,258) Bonds and other fixed-income securities 9,384 - 6,461 - Trading account securities 2,118 - 1,014 - Securities available for sale 7,215 - 5,243 - Debt securities held to maturity 51 - 204 - Macro-hedging instruments - (1,863) - (1,561) Interest income and expense 73,566 (69,993) 67,392 (64,304) 2.brevenue from variable income securities In millions of euros Year to 31 December 2024 Year to 31 December 2023 Securities available for sale 136 40 Investments in subsidiaries and equity securities held for long-term investment 378 355 Investments in affiliates 5,276 7,816 revenue from variable income securities 5,790 8,211 2.cCommiSsions In millions of euros Year to 31 December 2024 Year to 31 December 2023 Income Expenses Income Expenses Commissions on banking and financing transactions 3,546 (1,381) 3,086 (1,081) Customer items 1,889 (85) 1,675 (65) Others 1,657 (1,296) 1,411 (1,016) Commissions on financial services 5,934 (993) 5,459 (961) Commission income and expense 9,480 (2,374) 8,545 (2,042) 2.dNet gains on trading account securities In millions of euros Year to 31 December 2024 Year to 31 December 2023 Fixed-income instruments and transactions in trading account securities 692 2,992 Currency instruments 8,039 6,031 Credit instruments 316 (1,271) Other variable income financial instruments and transactions in trading account securities 458 1,800 Net gains on trading account securities 9,505 9,552 2.eNet losses on securities available for sale In millions of euros Year to 31 December 2024 Year to 31 December 2023 Income Expenses Income Expenses Divestments 435 (715) 256 (1,033) Provisions 164 (1,173) 700 (151) Total 599 (1,888) 956 (1,184) Net losses on securities available for sale (1,289) (228) 2.fCost of risk and provisions for credit risks Cost of risk represents the net amount of impairment losses recognised with respect to credit risks inherent to BNP Paribas SA’s banking intermediation activities, plus any impairment losses in the case of known counterparty risk on over-the-counter derivative financial instruments. In millions of euros Year to 31 December 2024 Year to 31 December 2023 Additions to or write-backs from provisions during the period (562) (421) Customer items and credit institutions (730) (279) Off-balance sheet commitment (135) (55) Securities 292 (92) Doubtful loans 8 2 Financial instruments for market activities 3 3 Irrecoverable loans not covered by provisions (294) (376) Recoveries of loans written-off 48 49 Cost of risk (808) (748) In millions of euros 31 December 2024 31 December 2023 Balance at 1 January 6,371 6,332 Additions to or write-backs from provisions during the period 562 421 Write-offs during the period covered by provisions (617) (497) Effect of movements in exchange rates and other 13 115 PROVISIONS for doubtful receivables or risks 6,329 6,371 The change in the methods for estimating provisions for expected credit risks in 2024 led to the recognition of an expense of EUR 64 million in the income statement for the year. The provisions break down as follows: In millions of euros 31 December 2024 31 December 2023 Provisions deducted from assets 5,938 6,068 For amounts due from credit institutions (note 3.a) 33 162 For amounts due from customers (note 3.b) 5,718 5,371 For securities 164 482 For financial instruments for market activities 23 53 Provisions recognised as liabilities (note 3.k) 391 303 For off-balance sheet commitments 360 264 For doubtful loans 31 39 PROVISIONS for doubtful receivables or risks 6,329 6,371 2.gGains or losses oN long-term investments In millions of euros Year to 31 December 2024 Year to 31 December 2023 Income Expenses Income Expenses Investments in subsidiaries and equity securities held for long-term investment 207 (90) 153 (96) Divestments 86 (24) 41 (9) Provisions 121 (66) 112 (87) Investments in affiliates 1,545 (676) 544 (1,192) Divestments 287 (56) 358 (462) Provisions 1,258 (620) 186 (730) Operating assets 2 (69) 88 (35) Total 1,754 (835) 785 (1,323) Gains or losses oN long-term investments 919 (538) 2.hCorporate income tax In millions of euros Year to 31 December 2024 Year to 31 December 2023 Current tax expense (1,341) (1,077) Deferred tax 702 394 Corporate income tax (639) (683) The basic tax consolidation agreements between BNP Paribas SA and the subsidiaries belonging to its tax group are designed to be tax neutral for every party. Thus, each Group subsidiary recognises in its own books, over the full term of its consolidation, corporate income tax income or expense, additional contributions and, in general, all current or future taxes covered by the scope of tax consolidation just as they would if they were not part of a tax group. BNP Paribas SA, as the parent company, records the impact of Group tax savings from tax consolidation in France in current tax expense. Note 3Notes to the balance sheet at 31 December 2024 3.aAmounts due to and from credit institutions In millions of euros, at 31 December 2024 31 December 2023 Loans and receivables 192,522 152,665 Demand accounts 7,414 6,178 Term accounts and loans 180,198 140,790 Subordinated loans 4,910 5,697 Securities received under repurchase agreements 88,134 63,736 Loans and advances to credit institutions before impairment 280,656 216,401 Of which accrued interest 2,781 2,361 Of which irrecoverable loans - - Of which potentially recoverable doubtful loans 11 11 Impairments on receivables due from credit institutions (note 2.f) (33) (162) Loans and receivables to credit institutions net of impairment 280,623 216,239 In millions of euros, at 31 December 2024 31 December 2023 Deposits and borrowings 136,784 147,278 Demand deposits 19,758 20,380 Term deposits and borrowings() 117,026 126,898 Securities given under repurchase agreements 105,171 80,140 Due to credit institutions 241,955 227,418 Of which accrued interest 1,561 1,203 At 31 December 2023, interbank borrowings included term loans (TLTRO III) from central banks for EUR 14 billion repaid on 27 March 2024. 3.bCustomer items In millions of euros, at 31 December 2024 31 December 2023 Loans and receivables 424,134 403,526 Commercial and industrial loans 9,756 10,198 Demand accounts 17,042 16,643 Short-term loans 137,278 133,813 Mortgages 86,574 86,213 Equipment loans 55,782 53,187 Export loans 7,035 6,110 Other customer loans 110,014 96,524 Subordinated loans 653 838 Securities received under repurchase agreements 190,084 188,167 Customer items before impairment – Assets 614,218 591,693 Of which accrued interest 3,388 3,893 Of which loans eligible for refinancing by the Banque de France 18 13 Of which potentially recoverable doubtful loans and receivables 4,982 5,680 Of which irrecoverable loans and receivables 4,510 3,757 Impairments on receivables due from customers (note 2.f) (5,718) (5,371) Customer items net of impairment – Assets 608,500 586,322 The following table gives the loans and receivables net of impairment due from customers by counterparty: In millions of euros, at 31 December 2024 31 December 2023 Sound loans Doubtful loans Total Sound loans Doubtful loans Total Potentially recoverable Irrecoverable Potentially recoverable Irrecoverable Financial institutions 80,856 83 15 80,954 73,264 388 11 73,663 Corporate clients 242,205 1,988 1,693 245,886 237,769 2,571 1,109 241,449 Entrepreneurs 5,459 1 1 5,461 3,724 2 6 3,732 Individuals 75,861 477 480 76,818 70,910 390 409 71,709 Other non-financial customers 9,189 5 103 9,297 7,493 19 90 7,602 Total loans and receivables net of impairment 413,570 2,554 2,292 418,416 393,160 3,370 1,625 398,155 In millions of euros, at 31 December 2024 31 December 2023 Deposits 668,774 638,697 Demand deposits 361,569 340,879 Term deposits 242,687 229,016 Special savings accounts 64,518 68,802 Of which demand special savings accounts 52,415 54,556 Of which share centralised with Caisse des Dépôts et Consignations(1) (19,649) (17,874) Securities given under repurchase agreements 188,884 201,037 Customer items – Liabilities 857,658 839,734 Of which accrued interest 4,465 4,201 Regulation No. 2020-10 of 22 December 2020, which amends ANC Regulation No. 2014-07 allows the presentation of the centralised share with the Caisse des Dépôts et Consignations to be presented less the savings deposits collected. As of 31 December 2024, the amount of regulated savings centralised with the Caisse des Dépôts et Consignations amounted to EUR 19,649 million, compared to EUR 17,874 million at 31 December 2023. 3.cSecurities held In millions of euros, at 31 December 2024 31 December 2023 Net carrying amount Market value Net carrying amount Market value Transaction 80,658 80,658 82,762 82,762 Securities available for sale 87,572 90,724 71,643 72,416 Of which provisions (941) - (370) - Investments 4,248 4,248 4,763 4,763 Treasury bills and money-market instruments 172,478 175,630 159,168 159,941 Of which receivables corresponding to loaned securities 40,746 - 28,641 - Of which discounts and reimbursement premiums 3,802 - 4,105 - Transaction 42,111 42,111 32,853 32,853 Securities available for sale 134,061 136,864 107,601 108,279 Of which provisions (722) - (655) - Investments 43 43 22 22 Bonds and other fixed-income securities 176,215 179,018 140,476 141,154 Of which unlisted securities 44,420 45,489 41,140 41,869 Of which accrued interest 2,675 - 1,809 - Of which receivables corresponding to loaned securities 10,228 - 12,581 - Of which discounts and reimbursement premiums (636) - (405) - Transaction 688 688 279 279 Securities available for sale and equity securities available for sale in the medium term 2,522 3,220 2,077 2,677 Of which provisions (468) - (409) - Equities and other variable-income securities 3,210 3,908 2,356 2,956 Of which unlisted securities 2,316 3,000 1,821 2,396 Of which receivables corresponding to loaned securities 9 - 6 - Associated companies 3,522 6,502 3,595 5,729 Of which provisions (196) (262) Equity securities held for long-term investment 398 707 411 695 Of which provisions (61) - (45) - Investments in subsidiaries and equity securities held for long-term investment 3,920 7,209 4,006 6,424 Of which unlisted securities 1,986 3,558 1,918 3,300 Investments in affiliates 50,804 80,383 48,654 78,220 Of which provisions (8,404) - (9,410) - Investments in affiliates 50,804 80,383 48,654 78,220 Equity investments in credit institutions and investments in affiliates held by BNP Paribas SA totalled EUR 1,943 million and EUR 31,990 million respectively as at 31 December 2024, compared with EUR 1,495 million and EUR 30,614 million respectively as at 31 December 2023. Borrowed securities held by BNP Paribas SA break down as follows: In millions of euros, at 31 December 2024 31 December 2023 Treasury bills and money-market instruments 116,229 107,951 Bonds and other fixed-income securities 33,212 27,318 Equities and other variable-income securities 11,417 11,265 Total borrowed securities 160,858 146,534 Following Regulation No. 2020-10 of 22 December 2020, which amended ANC Regulation No. 2014-07, borrowed securities are presented as a deduction from the liabilities representing these same securities. The amount of securities borrowed represented EUR 160,858 million as at 31 December 2024, compared with EUR 146,534 million as at 31 December 2023. 3.dTreasury shares In millions of euros, at 31 December 2024 31 December 2023 Gross book value Net carrying amount Net carrying amount Transaction - - - Securities available for sale 6 6 6 Investment in subsidiaries 32 32 32 Treasury shares 38 38 38 In application of the fifth resolution of the Shareholders’ Combined General Meeting of 14 May 2024, which replaced the fifth resolution of the Shareholders’ Combined General Meeting of 16 May 2023, BNP Paribas SA was authorised to buy back shares representing up to 10% of BNP Paribas SA’s issued capital at a maximum purchase price of EUR 96 per share (previously EUR 89). The shares could be acquired for the following purposes: for subsequent cancellation in accordance with conditions set by the Shareholders’ Combined General Meeting of 14 May 2024, to fulfil the Bank’s obligations relative to the issue of shares or share equivalents, for stock option plans, for bonus share awards, or for granting or selling shares to employees under an employee profit-sharing plan, employee share ownership plan or Corporate Savings Plan and to cover any type of share award to the employees of BNP Paribas SA and companies controlled exclusively by BNP Paribas SA within the meaning of article L.233-16 of the French Commercial Code; to be held in treasury for subsequent remittance in exchange or in payment for acquisitions, mergers, spin-offs or asset transfers; within the scope of a market-making agreement compliant with the Code of Ethics recognised by the Autorité des Marchés Financiers (French Financial Markets Authority – AMF); or for asset and financial management purposes. This authorisation was granted for a period of eighteen months. At 31 December 2024, BNP Paribas SA held 603,827 treasury shares classified as “equity securities held for long-term investment”. BNP Paribas SA also held 118,144 treasury shares classified as “Securities available for sale” and intended to be used for free share awards to Group employees, granted or sold as part of an employee profit-sharing plan, employee share ownership plan, or Company Savings Plan. 3.eLong-term investments In millions of euros Gross values Provisions Carrying amount 1 Jan. 2024 Acquisitions Disposals and redemptions Transfers and other movements 31 Dec. 2024 1 Jan. 2024 Additions Write-backs Other variations 31 Dec. 2024 31 Dec. 2024 31 Dec. 2023 Debt securities held to maturity (note 3.c) 4,785 86 (610) 30 4,291 - - - - - 4,291 4,785 Investments in subsidiaries and equity securities held for long-term investment (note 3.c) 4,313 716 (780) (72) 4,177 307 65 (117) 2 257 3,920 4,006 Investments in affiliates (note 3.c) 58,064 1,255 (615) 504 59,208 9,410 254 (1,263) 3 8,404 50,804 48,654 Of which merger premium on investments in affiliates 4,258 - - - 4,258 3,384 - (382) - 3,002 1,256 874 Treasury shares (note 3.d) 32 - - - 32 - - - - - 32 32 Long-term investments 67,194 2,057 (2,005) 462 67,708 9,717 319 (1,380) 5 8,661 59,047 57,477 3.fDebt securities In millions of euros, at 31 December 2024 31 December 2023 Negotiable debt securities 174,942 157,120 Bond issues (note 3.g) 2,722 2,312 Other debt securities 25,437 21,001 Debt securities 203,101 180,433 Of which unamortised issuance premiums 913 780 3.gBond issues At 31 December 2024, the maturity schedule of the bonds issued by BNP Paribas SA, according to the clauses of the issuance contracts, was as follows: In millions of euros Outstanding at 31/12/2024 2025 2026 2027 2028 2029 2030 to 2034 After 2034 Bond issues 2,722 145 230 352 542 385 706 362 At 31 December 2023, the maturity schedule of the bonds issued by BNP Paribas SA, according to the clauses of the issuance contracts, was as follows: In millions of euros Outstanding at 31/12/2023 2024 2025 2026 2027 2028 2029 to 2033 After 2033 Bond issues 2,312 215 222 174 156 454 720 371 3.hOther assets and liabilities In millions of euros, at 31 December 2024 31 December 2023 Options purchased 67,519 46,038 Settlement accounts related to securities transactions 2,037 2,323 Deferred taxes – assets 1,672 1,150 Miscellaneous assets() 137,308 139,666 Other assets 208,536 189,177 Options sold 78,816 55,487 Settlement accounts related to securities transactions 1,024 1,897 Liabilities related to securities transactions() 50,448 64,731 Deferred taxes – liabilities 146 277 Miscellaneous liabilities 102,710 108,454 Other liabilities 233,144 230,846 Further to Regulation No. 2020-10 of 22 December 2020, the borrowed securities are presented as a deduction from the liabilities representing these same securities (see note 3.c). At 31 December 2024, an allocation correction was made for EUR 789 million between “Miscellaneous Assets” and “Provisions” following a parameterisation error identified and corrected in 2024. Under “Miscellaneous liabilities”, BNP Paribas SA’s trade payables amounted to EUR 177.2 million at 31 December 2024, for the company in France and its three branches with the largest supplier debts, and break down as follows, pursuant to article D.441-6 of the French Commercial Code. Invoices received, due and outstanding at the year-end 0 days (indicative) 1 to 30 days 31 to 60 days 61 to 90 days 91 days and over Total (1 day and more) Total invoices concerned, including taxes 98.9 10.6 5.3 50.0 12.4 78.3 Percentage of total purchases for the year, including taxes 2.33% 0.25% 0.13% 1.18% 0.29% 1.85% Number of invoices concerned 415 3,802 Information related to invoices received and presented in the table above does not include banking and related transactions. The payment terms used are the statutory terms. Customer advances outside the scope of banking and related transactions are mainly loans to BNP Paribas Group entities. For amounts due to and from customers of BNP Paribas SA for banking and related transactions which are not shown in the table above, the remaining term of the sources and uses of funds is presented in note 6.e. 3.iAccrued income and expenses In millions of euros, at 31 December 2024 31 December 2023 Remeasurement of currency instruments and derivatives 111,362 104,130 Accrued income 5,000 5,767 Collection accounts 51 99 Other accrued income 16,467 16,339 Accrued income – Assets 132,880 126,335 Remeasurement of currency instruments and derivatives 100,959 95,676 Accrued expenses 9,410 6,293 Collection accounts 2,325 2,403 Other accrued expenses 12,332 10,749 Accrued expenses – Liabilities 125,026 115,121 3.jOperating assets In millions of euros, at 31 December 2024 31 December 2023 Gross value Depreciation, amortisation and impairment Net amount Net amount Software 4,400 (3,563) 837 822 Other intangible assets 3,576 (1,767) 1,809 1,813 Intangible assets 7,976 (5,330) 2,646 2,635 Land and buildings 2,463 (1,027) 1,436 1,463 Equipment, furniture and fixtures 2,525 (2,058) 467 487 Other fixed assets 145 (11) 134 91 Tangible assets – Merger premium 84 (34) 50 52 Tangible assets 5,217 (3,130) 2,087 2,093 3.kProvisions In millions of euros, at 31 December 2023 Additions Write-backs Other variations 31 December 2024 Provisions for employee benefit obligations 433 72 (100) 18 423 Provisions for credit risks (note 2.f) 39 7 (16) 1 31 Provisions for commitments given (note 2.f) 264 240 (103) (41) 360 Other provisions for banking transactions 484 492 (84) (51) 841 for non-banking transactions() 770 149 (454) 799 1,264 Provisions 1,990 960 (757) 726 2,919 At 31 December 2024, an allocation correction was made for EUR 789 million between “Other Assets” and “Provisions” following a parameterisation error identified and corrected in 2024. Provisions for risks on regulated savings products In millions of euros, at 31 December 2024 31 December 2023 Deposits collected under home savings accounts and plans 12,516 14,477 Of which loans granted under home savings plans 10,420 12,334 aged more than 10 years 7,076 6,645 aged between 4 and 10 years 2,587 4,886 aged less than 4 years 757 803 Outstanding loans granted under home savings accounts and plans 19 7 Of which for home savings plans 14 2 Provisions and discount recognised for home savings accounts and plans 35 48 Of which discount on home savings accounts and plans - - Of which provisions recognised for home savings plans 24 33 of which provisions for plans aged more than 10 years 20 14 of which provisions for plans aged between 4 and 10 years 3 16 of which provisions for plans aged less than 4 years 1 3 Of which provisions recognised for home savings accounts 11 15 Change in provisions for regulated savings products In millions of euros Year to 31 December 2024 Year to 31 December 2023 Provisions for home savings plans Provisions for home savings accounts Provisions for home savings plans Provisions for home savings accounts Provisions at start of period 33 15 42 5 Additions to provisions during the period - - - 10 Provisions write-backs during the period (9) (4) (9) - Provisions at end of period 24 11 33 15 3.lSubordinated debt In millions of euros, at 31 December 2024 31 December 2023 Redeemable subordinated debt 15,007 15,801 Undated subordinated debt 17,096 15,575 Undated super subordinated notes 12,754 13,490 Undated subordinated notes 4,117 1,860 Participating securities 225 225 Related debt 599 506 Subordinated debt 32,702 31,882 Redeemable subordinated debt The redeemable subordinated debt issued by BNP Paribas SA is in the form of medium and long-term debt securities equivalent to ordinary subordinated debt; these issues are redeemable prior to the contractual maturity date in the event of liquidation of the issuer, and rank after the other creditors but before holders of participating loans and participating subordinated notes. These debt issues may contain a call provision authorising the Group to redeem the securities prior to maturity by repurchasing them in the stock market, via a public tender or exchange offers, or (in the case of private placements) over the counter, subject to regulatory approval. Debt issued by BNP Paribas SA via placements in the international markets may be subject to early redemption of the capital and early payment of interest due at maturity at the issuer’s discretion on or after a date stipulated in the issue particulars (call option), or in the event that changes in the applicable tax rules oblige the BNP Paribas Group issuer to compensate debt-holders for the consequences of such changes. Redemption may be subject to a notice period of between 15 and 60 days, and is in all cases subject to approval by the banking supervisory authorities. In 2023, five subordinated debt issues were repaid at or before maturity. These transactions resulted in a EUR 411 million reduction in the amount of redeemable subordinated debt. In 2024, three subordinated debt issues were repaid at or before maturity. This transaction resulted in a EUR 1,098 million reduction in the amount of redeemable subordinated debt. The following table gives the maturity schedule for redeemable subordinated debt at 31 December 2024: In millions of euros Outstanding at 31/12/2024 2025 2026 2027 2028 2029 2030 to 2034 After 2034 Redeemable subordinated debt 15,007 2,756 2,782 2,763 193 - 5,974 539 The following table gives the maturity schedule for redeemable subordinated debt at 31 December 2023: In millions of euros Outstanding at 31/12/2023 2024 2025 2026 2027 2028 2029 to 2033 After 2033 Redeemable subordinated debt 15,801 906 2,706 2,709 2,674 181 5,893 732 Undated subordinated debt Undated super subordinated notes BNP Paribas SA has issued undated super subordinated notes which pay a fixed, fixed adjustable or floating-rate coupon and are redeemable at the end of a fixed period and thereafter at each coupon date or every 5 years. On 11 January 2023, BNP Paribas SA issued undated super subordinated notes in the amount of EUR 1,250 million. This issue pays a fixed-rate coupon of 7.375%. These notes could be redeemed at the end of a period of 7 years. If the notes are not redeemed in 2030, a mid-swap rate EUR five-year coupon will be paid half-yearly. On 28 February 2023, BNP Paribas SA issued undated super subordinated notes in the amount of SGD 600 million. This issue pays a fixed-rate coupon of 5.9%. These notes could be redeemed at the end of a period of 5 years. If not redeemed in 2028, a coupon will be paid semi-annually indexed to the rate of the Singapore Treasury bill with a constant five-year maturity (SORA rate). On 25 March 2024, BNP Paribas SA redeemed the March 2019 issue for an amount of USD 1,500 million, at its first call date. This issue paid a 6.625% fixed-rate coupon. The following table summarises the characteristics of these various issues: Issue date Currency Amount in original currency (in millions) Coupon frequency Rate and term before first call date Rate after first call date 31 December 2024 31 December 2023 August 2015 USD 1,500 semi-annual 7.375% 10 years USD 5-year swap +5.150% 1,449 1,360 November 2017 USD 750 semi-annual 5.125% 10 years USD 5-year swap +2.838% 724 679 August 2018 USD 750 semi-annual 7.000% 10 years USD 5-year swap +3.980% 724 679 March 2019 USD 1,500 semi-annual 6.625% 5 years USD 5-year swap +4.149% - 1,359 July 2019 AUD 300 semi-annual 4.500% 5.5 years AUD 5-year swap +3.372% 179 185 February 2020 USD 1,750 semi-annual 4.500% 10 years US CMT 5 years +2.944% 1,690 1,585 February 2021 USD 1,250 semi-annual 4.625% 10 years US CMT 5 years +3.340% 1,207 1,132 January 2022 USD 1,250 semi-annual 4.625% 5 years US CMT 5 years +3.196% 1,207 1,132 August 2022 USD 2,000 semi-annual 7.750% 7 years US CMT 5 years +4.899% 1,932 1,811 September 2022 EUR 1,000 semi-annual 6.875% 7.25 years EUR 5-year mid-swap +4.645% 1,000 1,000 November 2022 USD 1,000 semi-annual 9.250% 5 years US CMT 5 years +4.969% 966 906 January 2023 EUR 1,250 semi-annual 7.375% 7 years EUR 5-year mid-swap +4.631% 1,250 1,250 February 2023 SGD 600 semi-annual 5.900% 5 years SGD SORA 5 years +2.674% 426 412 Undated super subordinated notes 12,754 13,490 BNP Paribas has the option of not paying interest due on these undated super subordinated notes. Unpaid interest is not carried forward. For the notes issued before 2015, this non-payment is subject to the absence of any payment on BNP Paribas SA ordinary shares or on undated super subordinated note equivalents in the previous year. This interest must be paid when dividends are paid on BNP Paribas SA’s ordinary shares. The contracts relating to these undated super subordinated notes contain a loss absorption clause. Under the terms of this clause, in the event of insufficient regulatory capital, the nominal value of the notes may be reduced in order to serve as a new basis for the calculation of the related coupons until the capital deficiency is made up and the nominal value of the notes is increased to its original amount. Undated subordinated notes The undated subordinated notes (TSDIs) issued by BNP Paribas SA are redeemable on liquidation of the Bank after repayment of all other debts but ahead of undated participating subordinated notes. They confer no rights over residual assets. Characteristics of undated subordinated notes: Issue date Currency Amount in original currency (in millions) Rate Date of call or interest step-up Interest rate reset 31 December 2024 31 December 2023 October 1985 EUR 305 TMO - 0.25% - - 254 254 September 1986 USD 500 6-month Libor +0.075% - - - 248 August 2023 USD 1,500 8.500% August 2028 CMT ±4.354% 1,449 1,358 February 2024 USD 1,500 8,000% August 2031 CMT +3.727% 1,449 - September 2024 USD 1,000 7.375% September 2034 CMT +3.535% 965 - Undated subordinated notes 4,117 1,860 Payment of interest is obligatory on the TSDIs issued in October 1985 (representing a nominal amount of EUR 305 million), but the Board of directors may postpone interest payments if the Ordinary General Meeting of Shareholders notes that there is no income available for distribution in the twelve months preceding the interest payment date. Interest payments are cumulative and are payable in full once dividend payments resume. Payment of interest is obligatory on the TSDIs issued in September 1986 (representing a nominal amount of USD 500 million), but the Board of directors may postpone interest payments if the Ordinary General Meeting of Shareholders approves a decision not to pay a dividend in the twelve months preceding the interest payment date. Interest payments are cumulative and are payable in full once dividend payments resume. The Bank has the option of resuming payment of interest arrears, even where no dividend is paid out. This instrument was recalled on its contractual call date on 28 March 2024. The instruments issued by BNP Paribas SA in August 2023, February and September 2024 are contingent convertible securities recorded for accounting purposes as TSDIs. Payment of the interest is made on a discretionary basis and may be cancelled in full or in part upon notification by the regulator based on its assessment of the issuer’s financial and solvency situation. The amounts of interest on the bonds will not be cumulative once coupon payments resume. Participating securities Undated participating subordinated notes issued by BNP Paribas SA in July 1984 in a total amount of EUR 337 million are redeemable only in the event of the liquidation of BNP Paribas SA, but may be bought back on the terms specified in the French act of 3 January 1983. The number of notes in circulation was 1,434,092 at 31 December 2024. Note 4Financing, guarantee and securities commitments 4.aFinancing commitments In millions of euros, at 31 December 2024 31 December 2023 Credit institutions 74,394 82,330 Customers 370,180 365,026 Confirmed letters of credit 103,716 87,886 Other commitments given to customers 266,464 277,140 Financing commitments given 444,574 447,356 Credit institutions 88,475 124,938 Customers 33,224 53,909 Financing commitments received 121,699 178,847 4.bGuarantee and securities commitments In millions of euros, at 31 December 2024 31 December 2023 Credit institutions 86,634 85,324 Customers 126,263 126,449 Guarantee commitments given 212,897 211,773 Credit institutions 85,962 92,230 Customers 227,350 230,792 Guarantee commitments received 313,312 323,022 BNP Paribas SA’s annual contribution to the European Union’s Single Resolution Fund may be made, in part, in the form of an irrevocable payment commitment (IPC) guaranteed by a cash deposit of the same amount. If the fund is called into play as part of a resolution measure, the Single Resolution Board (SRB) may call all or part of the IPC received. The irrevocable payment commitment is qualified as a contingent liability. It gives rise to provisioning if the probability of a call by the fund becomes greater than 50%. As it is estimated to be below this threshold, no provision was recorded by BNP Paribas SA at 31 December 2024. These commitments amounted to EUR 948 million at 31 December 2024 (versus EUR 946 million at 31 December 2023). The cash paid as collateral is subject to a remuneration and is recognised as an asset at amortised cost, within the line “other miscellaneous assets” (see note 3.h). In millions of euros, at 31 December 2024 31 December 2023 Commitments given on securities 36,125 51,108 Commitments received on securities 46,722 54,234 4.cFinancial instruments given or received as collateral Financial instruments given as collateral In millions of euros, at 31 December 2024 31 December 2023 Financial instruments (negotiable securities and private receivables) lodged with central banks and eligible for use at any time as collateral for refinancing transactions after haircut 55,509 66,096 Used as collateral with central banks 1,244 14,832 Available for refinancing transactions 54,265 51,264 Other financial assets pledged as collateral for transactions with credit institutions, financial customers or subscribers of covered bonds issued by the Group 339,193 271,709 As at 31 December 2024, the Bank had EUR 55,509 million of financial instruments (negotiable securities and private receivables) deposited or pledged with central banks for use at any time as collateral for refinancing transactions (versus EUR 66,096 million as at 31 December 2023). This amount includes EUR 40,846 million deposited with the Banque de France (versus EUR 57,106 million at 31 December 2023) under the Banque de France’s Comprehensive Collateral Management system to cover Eurosystem monetary policy transactions and intraday loans. As at 31 December 2024, the Bank had EUR 1,244 million of collateral deposited with central banks (EUR 14,832 million as at 31 December 2023). The other assets that the Bank has pledged as collateral with credit institutions and financial customers totalled EUR 41,770 million at 31 December 2024 (versus EUR 41,715 million at 31 December 2023), included in particular financing for BNP Paribas Home Loan SFH. Financial instruments received as collateral In millions of euros, at 31 December 2024 31 December 2023 Financial instruments received as collateral (excluding repurchase agreements) 292,539 205,568 Note 5Salaries and employee benefits 5.aSalaries and employee benefit expense In millions of euros Year to 31 December 2024 Year to 31 December 2023 Salaries (6,322) (6,190) Tax and social security charges(1) (2,214) (2,283) Employee profit-sharing and incentive plans (324) (292) Total salaries and employee benefit expenses (8,860) (8,765) Including the remeasurement of actuarial effects on post-employment benefits. BNP Paribas SA’s headcount breaks down as follows: Headcount at 31 December 2024 31 December 2023 BNP Paribas Metropolitan France 36,710 36,833 Of which managers 28,972 30,094 Employees outside Metropolitan France 28,750 28,014 Total BNP Paribas SA 65,460 64,847 Compensation paid to directors in respect of their term of office in 2024 The amount of compensation paid to the Company’s directors in respect of their office during 2024 was EUR 1.85 million. Compensation awarded to corporate officers in respect of 2024 The compensation awarded in 2024 to corporate officers (Jean-Laurent Bonnafé, Yann Gérardin and Thierry Laborde) amounted to EUR 10.9 million. 5.bSocial commitments Two categories of systems exist within the Group, each treated differently according to the risk borne by the Company. When the entity is only committed to paying a fixed amount, stated as a percentage of the beneficiary’s annual salary, for example, to an external entity handling payment of the benefits based on the assets available for each plan member, it is described as a defined-contribution plan. Conversely, when the entity’s obligation is to manage the financial assets funded through the collection of contributions from employees and to bear the cost of benefits itself or to guarantee the final amount subject to future events, it is described as a defined-benefit plan. The same applies if the entity entrusts management of the collection of premiums and payment of benefits to a separate entity but retains the risk arising from management of the assets and/or from future changes in the benefits. Defined-contribution plans In France, BNP Paribas SA pays contributions to various nationwide basic and top-up pension plans. BNP Paribas SA has set up a defined-contribution pension plan under a company-wide agreement. Under this plan, employees will receive an annuity on retirement in addition to the pension paid by nationwide schemes. Since defined-benefit plans have been closed to new employees in most countries outside France, they are offered the benefit of defined-contribution pension plans. The amount paid into defined-contribution post-employment plans in France and other countries for the year 2024 was EUR 426 million, compared with EUR 407 million for the year 2023. Defined-benefit plans Existing legacy defined-benefit plans within BNP Paribas SA are valued independently using actuarial techniques by applying the projected unit cost method in order to determine the expense arising from rights vested in employees and benefits payable to retired employees. The demographic and financial assumptions used to estimate the present value of these obligations and of plan assets take into account economic conditions specific to each country. Provisions set up to cover obligations under defined-benefit post-employment plans totalled EUR 96 million at 31 December 2024 (against EUR 106 million at 31 December 2023), comprised of EUR 42 million for French plans and EUR 54 million for other plans. EUR 551 million of retirement plan assets (recognised surplus) were recognised at 31 December 2024 as compared to EUR 508 million at 31 December 2023. Pension plans and other retirement benefits Pension plans In France, BNP Paribas pays a top-up banking industry pension arising from rights acquired to 31 December 1993 by retired employees and active employees in service at that date. The Group’s residual obligations for these employees were recognised on the balance sheet in full. The defined-benefit plans previously granted to some Group senior managers have all been closed to new employees and converted into top-up type schemes. The amounts allocated to residual beneficiaries, subject to their presence within the Group at retirement, were fixed when these schemes were closed. These pension plans have been outsourced to insurance companies. The market value of the related plan assets in these companies’ balance sheets breaks down as 77% bonds, 12% equities, 9% property assets and 2% other financial instruments. In BNP Paribas SA’s foreign branches, pension plans are based either on pensions linked to the employee’s final salary and length of service (United Kingdom), or on annual vesting of rights to a capital sum expressed as a percentage of annual salary and remunerated at a predefined rate (United States). Some plans are managed by independent fund managers. At 31 December 2024, 85% of the gross obligations under these plans related to plans in the United Kingdom, the United States and the Netherlands. The market value of the related plan assets was split as follows: 81% bonds, 7% equities, and 12% other financial instruments. Other post-employment benefits BNP Paribas SA employees also receive various other contractual post-employment benefits, such as indemnities payable on retirement. In France, the obligations for these benefits are funded through a contract held with an insurer that is independent from BNP Paribas SA. Post-employment healthcare benefits In France, BNP Paribas SA no longer has any obligation in relation to healthcare benefits for its retired employees. Among BNP Paribas SA’s foreign branches, there are several healthcare benefit plans for retired employees, mainly in Canada and Portugal. Provisions for obligations under these plans amounted to EUR 17 million at 31 December 2024, compared to EUR 15 million at 31 December 2023. Obligations under post-employment healthcare benefit plans are measured using the mortality tables applicable in each country and assumptions about trends in healthcare costs. They also build in assumptions about healthcare benefit costs, including forecast trends in the cost of healthcare services and in inflation, which are derived from historical data. Provision for voluntary departure, early retirement plans, and headcount adaptation plans The Bank has implemented a number of voluntary redundancy plans and a headcount adaptation plan for employees who meet certain eligibility criteria. The obligations to eligible active employees under such plans are provided for when the plan is the subject of an agreement or a bilateral draft agreement. Provisions for these plans totalled EUR 48 million at 31 December 2024 (EUR 41 million at 31 December 2023). In millions of euros, at 31 December 2024 31 December 2023 Provision for voluntary departure, early retirement plans, and headcount adaptation plans 48 41 Note 6Additional information 6.aTransactions in share capital Resolutions of Shareholders’ Annual General Meetings that can be used during the year are presented in chapter 2 Corporate governance report of the Universal registration document. Operations affecting share capital In number Par value (in euros) In euros Date of authorisation by the Annual General Meeting Date of decision by Board of directors Date from which shares carry dividend rights Number of shares issued at 31 December 2022 1,234,331,646 2 2,468,663,292 Capital reduction by cancellation of shares (60,914,757) 2 (121,829,514) (1) (1) 27 Sept. 23 Capital reduction by cancellation of shares (6,238,000) 2 (12,476,000) (1) (1) 11 Oct. 23 Capital reduction by cancellation of shares (2,491,000) 2 (4,982,000) (1) (1) 23 Oct. 23 Capital reduction by cancellation of shares (3,744,000) 2 (7,488,000) (1) (1) 27 Oct. 23 Capital reduction by cancellation of shares (4,333,000) 2 (8,666,000) (1) (1) 06 Nov. 23 Capital reduction by cancellation of shares (4,449,000) 2 (8,898,000) (1) (1) 13 Nov. 23 Capital reduction by cancellation of shares (4,684,480) 2 (9,368,960) (1) (1) 17 Nov. 23 Number of shares issued at 31 December 2023 1,147,477,409 2 2,294,954,818 Capital reduction by cancellation of shares (16,666,738) 2 (33,333,476) (1) (1) 06 May 24 Number of shares issued at 31 December 2024 1,130,810,671 2 2,261,621,342 Various resolutions passed by the Shareholders’ Annual General Meeting and decisions of the Board of directors authorising the allocation of stock options exercised during the period. 6.bStatement of changes in shareholders’ equity between 31 December 2022 and 31 December 2024 In millions of euros Share capital Additional paid-in capital and other premiums Legal reserve Net income for the period Other reserves Total shareholders’ equity Shareholders’ equity at 31 December 2022 2,469 22,374 270 8,033 50,720 83,866 Dividend payout for 2022 (8,033) 3,289 (4,744) Capital decrease (by cancellation of shares) (174) (4,809) (17) (5,000) Other variations 1 1 Accelerated depreciation (1) (1) Net income for 2023 9,620 9,620 Shareholders’ equity at 31 December 2023 2,295 17,565 253 9,620 54,009 83,742 Dividend payout for 2023 (9,620) 4,422 (5,198) Capital decrease (by cancellation of shares) (33) (1,018) (3) (1,055) Other variations (1) Accelerated depreciation 1 1 Net income for 2024 9,560 9,560 Shareholders’ equity at 31 December 2024 2,262 16,547 250 9,560 58,431 87,050 6.cNotional amounts of financial instruments The notional amounts of derivative financial instruments are merely an indication of the volume of BNP Paribas SA’s activities in financial instrument markets, and do not reflect the market risks associated with such instruments. Trading portfolio In millions of euros, at 31 December 2024 31 December 2023 Currency derivatives 11,229,730 9,387,120 Interest rate derivatives 24,557,939 22,922,988 Equity derivatives 1,819,508 1,396,282 Credit derivatives 950,539 864,441 Other derivatives 185,606 205,969 Forward financial instruments in the trading portfolio 38,743,322 34,776,800 Financial instruments traded on organised markets or admitted to clearing houses accounted for 45% of the Bank’s derivatives transactions at 31 December 2024 (compared with 43% at 31 December 2023). Hedging strategy The total notional amount of derivative financial instruments used for hedging purposes stood at EUR 1,194,777 million at 31 December 2024, compared with EUR 1,057,833 million at 31 December 2023. Derivatives used for hedging purposes are primarily contracted on over-the-counter markets. Market value The market value of the Bank’s positive net position on outright transactions was EUR 3,740 million at 31 December 2024, compared with a negative net position of EUR 263 million at 31 December 2023. The market value of the Bank’s net short position on conditional transactions was valued at EUR 9,037 million at 31 December 2024, compared with a net short position of EUR 8,301 million at 31 December 2023. 6.dSegment information The following table gives a regional breakdown of BNP Paribas SA’s interbank transactions and customer transactions recognised on the balance sheet: In millions of euros, at Interbank transactions Customer items Total by region 31 December 2024 31 December 2023 31 December 2024 31 December 2023 31 December 2024 31 December 2023 France 389,677 421,028 330,217 342,023 719,894 763,051 Other countries in the European Economic Area 79,024 78,537 95,407 92,219 174,431 170,756 Countries in the Americas and Asia 125,647 109,234 180,485 149,537 306,132 258,771 Other countries 1,608 1,606 2,391 2,543 3,999 4,149 Total uses of funds 595,956 610,405 608,500 586,322 1,204,456 1,196,727 France 169,311 156,173 357,589 378,100 526,900 534,273 Other countries in the European Economic Area 44,013 48,425 225,026 208,750 269,039 257,175 Countries in the Americas and Asia 28,545 23,540 270,110 244,788 298,655 268,328 Other countries 1,323 610 4,933 8,096 6,256 8,706 Total sources of funds 243,192 228,748 857,658 839,734 1,100,850 1,068,482 76% of BNP Paribas SA’s revenues in 2024 came from counterparties in the European Economic Area (82% in 2023). 6.eSchedule of uses and sources of funds In millions of euros Demand and overnight transactions Term remaining Up to 3 months 3 months to 1 year 1 to 5 years More than 5 years Of which provisions Total Uses of funds Cash and amounts due from central banks and CCP 142,200 655 - - - - 142,855 Treasury bills and money-market instruments 190 8,936 8,977 60,223 94,152 (941) 172,478 Due from credit institutions 44,582 115,002 56,795 52,575 11,669 (33) 280,623 Customer and leasing transactions 28,861 229,218 67,385 147,037 135,999 (5,718) 608,500 Bonds and other fixed-income securities 2,956 11,362 11,052 65,545 85,300 (722) 176,215 Sources of funds Amounts due to credit institutions and central banks and CCP 64,622 127,792 8,039 36,903 5,836 - 243,192 Customer items 489,013 275,701 71,554 15,764 5,626 - 857,658 Debt securities 1,005 45,943 20,592 67,157 68,404 - 203,101 6.fNon-cooperative states and territories Authorisation from the Group’s Compliance Department must be obtained through a special procedure before BNP Paribas SA or Group subsidiaries that report to BNP Paribas SA can open a location in a State considered “non-cooperative” as defined by article 238-O A of the French General Tax Code and the Order issued on 16 February 2024 amending the list of non-cooperative States. In accordance with BNP Paribas’ “best interests” ethics principle, and to ensure that the Group’s internal control mechanisms are applied consistently, these locations are subject to the Group’s regulations on Risk Management, anti-money laundering, corruption, financial embargoes, and terrorism financing. Company name Ownership interest (%) Legal form Business activity Russia BNPP Bank JSC 100 Joint-stock Company Banking activity extremely reduced and limited to handling transactions in stock for a very small number of legacy international clients Arval LLC 99.94 Limited Liability Company Vehicle rental 6.gAppropriation of income for the year ended 31 December 2024 and dividend distribution At the Annual General Meeting of 13 May 2025, the Board of directors will propose an appropriation of net income for the year ended 31 December 2024 and dividend distribution under the following terms: In millions of euros Net income 9,560 Unappropriated retained earnings 42,076 TOTAL TO BE APPROPRIATED 51,636 Dividend 5,417 Retained earnings 46,219 TOTAL APPROPRIATED INCOME 51,636 The total proposed dividend is EUR 5,417 million, which corresponds to EUR 4.79 per share (with a par value of EUR 2.00) based on the number of existing shares at 31 December 2024. 6.hMain subsidiaries and associates of BNP Paribas SA Name Siren Currency Share capital Reserves and retained earnings before income appropriation Last published net income NBI or Revenue excl. Tax() Share capital Reserves and retained earnings before income appropria -tion Last published net income NBI or Revenue excl. Tax() Percent of share capital held Ref. In millions of foreign currency In millions of euros() in % BNP Paribas SA (Siren 662 042 449) is the parent company of all subsidiaries and associated companies I – Detailed information about subsidiaries and associated companies whose book value exceeds 1% of BNP Paribas SA’s share capital 1. Subsidiaries (more than 50% owned) Banca Nazionale Del Lavoro SPA Viale Altiero Spinelli 30 00157 Rome Italy EUR 2,077 4,082 434 2,605 2,077 4,082 434 2,605 100% (1) Banco BNPP Brasil SA 510 Av. Presidente Juscelino Kubitschek, 10° to 13° Andares, Itaim Bibi 04543-906 São Paulo Brazil BRL 2,759 1,092 (180) 1,010 431 170 (28) 158 76% (2) BNP Paribas Bank Polska SA 10/16 ul. Kasprzaka 01-211 Warsaw Poland PLN 798 11,850 2,244 7,569 187 2,771 525 1,770 63% (2) Bank BNPP Indonesia PT 35th Floor Menara BCA Grand Indonesia Jl M H Thamrin no 1 10310 Jakarta Indonesia IDR 3,852,573 1,742,843 382,030 813,513 231 105 23 49 99% (2) BNP PUK Holding Ltd 10 Harewood Avenue NW1 6AA London United Kingdom GBP 40 12 5 5 48 14 6 6 100% (2) BNPP Asset Management Holding 1 boulevard Haussmann 75009 Paris France 682 001 904 EUR 23 1,460 214 259 23 1,460 214 259 67% (1) BNPP Bank JSC 5 Lesnaya Street, Bld. B Business Center White Square 125047 Moscow Russian Federation RUB 5,798 11,265 2,490 3,855 49 96 21 33 100% (2) BNPP Canada Corp 1981 avenue McGill Collège H3A 2W8 Montreal Canada CAD 159 171 19 12 107 115 13 8 100% (2) BNPP Cardif 1 boulevard Haussmann 75009 Paris France 382 983 922 EUR 150 2,245 470 712 150 2,245 470 712 100% (1) BNPP China Ltd 25/F Shanghai World Financial Center 100 Century Avenue Shanghai 200120, P.R.C China CNY 8,711 2,303 579 1,534 1,169 309 78 206 100% (2) BNPP Colombia Corporacion Financiera SA Carrera 8A no 99-51 Edificio World Trade Center, Torre A, Piso 9 Bogota DC Colombia COP 133,721 11,111 22,492 134,723 29 2 5 30 94% (2) BNPP Développement 20 rue Chauchat 75009 Paris France 348 540 592 EUR 529 1,148 78 43 529 1,148 78 43 100% (1) BNPP El Djazair 8 rue de Cirta Hydra 16035 Algiers Algeria DZD 20,000 10,794 5,153 16,166 142 77 37 115 84% (2) BNPP Factor 46/52 rue Arago 92823 Puteaux France 775 675 069 EUR 6 119 53 155 6 119 53 155 100% (2) BNPP Fortis 3 Montagne du Parc / Warandeberg 3 1000 Brussels Belgium EUR 10,965 8,481 2,437 5,212 10,965 8,481 2,437 5,212 100% (1) BNPP Home Loan SFH 1 boulevard Haussmann 75009 Paris France 454 084 211 EUR 285 2 12 18 285 2 12 18 100% (1) BNPP India Holding Private Ltd 1 North Avenue - BNP Paribas House Maker Maxity, Bandra - Kurla Complex Bandra (East) 400 051 Mumbai India INR 2,608 690 2,209 2,568 29 8 25 29 100% (2) BNPP IRB Participations 1 boulevard Haussmann 75009 Paris France 433 891 983 EUR 46 58 17 25 46 58 17 25 100% (1) BNPP Ireland Unlimited Co 5 George’s Dock IFSC Dublin 1 Ireland EUR 263 - 32 34 263 - 32 34 100% (2) BNPP Lease Group Leasing Solutions SPA 3 Piazza Lina Bo Bardi 20124 Milan Italy EUR 41 1 (2) 2 41 1 (2) 2 74% (2) BNPP Malaysia Berhad Level 48, Vista Tower The Intermark 182 Jalan Tun Razak 50400 Kuala Lumpur Malaysia MYR 650 180 85 198 140 39 18 43 100% (2) BNPP Mexico Avenida Paseo de las Palmas 11000 Ciudad de Mexico Mexico MXN 4,500 - - - 208 - - - 100% (2) BNPP Personal Finance 1 boulevard Haussmann 75009 Paris France 542 097 902 EUR 617 5,737 (364) 944 617 5,737 (364) 944 100% (1) BNPP Prime Brokerage International Ltd c/o Marsh Management Services Limited 25/28 Adelaide Road Dublin 2 Ireland USD - 514 279 480 - 496 269 463 100% (2) BNPP Real Estate 167 quai de la Bataille de Stalingrad 92867 Issy-les-Moulineaux France 692 012 180 EUR 514 587 (215) 498 514 587 (215) 498 100% (2) BNPP Real Estate Investment Management Italy SPA Via Carlo Bo 11 20143 Milan Italy EUR 10 - 1 1 10 - 1 1 100% (2) BNPP Réunion 1 boulevard Haussmann 75009 Paris France 428 633 408 EUR 25 21 3 43 25 21 3 43 100% (2) BNPP SB Re 16 rue Edward-Steichen L - 2540 Luxembourg Luxembourg EUR 250 175 38 50 250 175 38 50 100% (2) BNPP Securities Asia Ltd 59-63 / F II International Finance Centre 8 Finance Street Central Hong Kong HKD 4,779 (2,465) (220) 350 594 (307) (27) 44 100% (2) BNPP Securities Japan Ltd GranTokyo North Tower 1-9-1 Marunouchi, Chiyoda-ku 100-6740 Tokyo Japan JPY 156,050 60,396 26,883 66,910 958 371 165 411 100% (2) BNPP Securities Korea Co Ltd 24, 25FL, State Tower Namsan, 100, Toegye-ro, Jung-gu Seoul 100-052 Republic of Korea KRW 250,000 (8,024) 3,156 33,398 164 (5) 2 22 100% (2) BNPP Suisse SA 2 place de Hollande 1211 Geneva 11 Switzerland CHF 320 955 (27) 309 341 1,016 (29) 329 100% (2) BNPP USA Inc 787 Seventh Avenue NY 10019 New York United States of America USD 3,674 2,113 174 252 3,548 2,041 168 243 100% (2) BNPP Yatirimlar Holding AS Ankara caddesi, Büyük Kelkit Han nº 243, Kat 5 Sirkeci, Eminönü/Fatih Istanbul Türkiye TRY 1,032 (41) 378 398 28 (1) 10 11 100% (2) BNPP Securities China Ltd Tower 479 Lujiazui RD Shanghai China CNY 1,100 - (116) 3 148 - (16) - 100% (2) Compagnie Financière Ottomane SA 44 Avenue J.F. Kennedy L - 1855 Luxembourg Luxembourg EUR 9 461 - - 9 461 - - 97% (2) Expo Atlantico EAII Investimentos Imobiliarios SA Torre Ocidente, Rua Galileu Galilei, nº 2 1500-392 Lisbon Portugal EUR 1 35 (1) - 1 35 (1) - 74% (2) Expo Indico EIII Investimentos Imobiliarios SA Torre Ocidente, Rua Galileu Galilei, nº 2 1500-392 Lisbon Portugal EUR 1 36 (1) - 1 36 (1) - 74% (2) Financière des Paiements Électroniques 18 avenue Winston-Churchill 94220 Charenton-le-Pont France 753 886 092 EUR 1 95 34 191 1 95 34 191 95% (2) Financière du Marché Saint Honoré 37 place du Marché Saint-Honoré 75001 Paris France 662 047 513 EUR 342 (91) (25) - 342 (91) (25) - 100% (1) Floa Immeuble G7 71 rue Lucien Faure 33300 Bordeaux France 434 130 423 EUR 72 109 (64) 309 72 109 (64) 309 100% (2) Harewood Helena 1 Ltd 10 Harewood Avenue NW1 6AA London United Kingdom USD 39 11 10 11 37 11 9 11 100% (2) International Factors Italia SPA 15 Via Vittor Pisani 20124 Milan Italy EUR 56 859 58 154 56 859 58 154 100% (2) Jivago Holding 1 Boulevard Haussmann 75009 Paris France 538 201 245 EUR 67 (5) 4 4 67 (5) 4 4 100% (2) Kantox 8 Devonshire Square 5th Floor London EC2M 4PL United Kingdom GBP - 4 - - - 5 - - 100% (2) Natiocredibail 12 rue du Port 92000 Nanterre France 998 630 206 EUR 32 86 3 17 32 86 3 17 100% (2) Parilease 41 avenue de l'Opéra 75002 Paris France 339 320 392 EUR 129 259 11 15 129 259 11 15 100% (2) Portzamparc 1 Boulevard Haussmann 75009 Paris France 399 223 437 EUR 5 8 2 39 5 8 2 39 100% (1) Sagip 3 rue Montagne du Parc 1000 Brussels Belgium EUR 657 2,251 98 132 657 2,251 98 132 100% (2) SNC Taitbout Participation 3 1 boulevard Haussmann 75009 Paris France 433 912 250 EUR 552 233 213 - 552 233 213 - 100% (1) Société Orbaisienne de Participations 1 boulevard Haussmann 75009 Paris France 428 753 479 EUR 311 (100) 1 - 311 (100) 1 - 100% (1) UkrSibbank Public JSC 7 Andreevskaya Street 04070 Kyiv Ukraine UAH 5,069 12,132 4,141 14,374 118 284 97 336 60% (2) Name Siren Currency Share capital Reserves and retained earnings before income appropriation Last published net income NBI or Revenue excl. Tax() Share capital Reserves and retained earnings before income appropria-tion Last published net income NBI or Revenue excl. Tax() Percent of share capital held Ref. In millions of foreign currency In millions of euros() in % 2. Equity investments (between 10 and 50% held) Bank of Nanjing 50 Huaihai Road 210005 Nanjing China CNY 10,344 126,997 18,502 45,160 1,388 17,042 2,483 6,060 16% (3) BGL BNPP 50 avenue J.F.-Kennedy 2951 Luxembourg Luxembourg EUR 713 7,066 500 1,037 713 7,066 500 1,037 16% (2) BNPP Leasing Solutions 16 rue Edward-Steichen 2540 Luxembourg Luxembourg EUR 1,815 322 158 161 1,815 322 158 161 50% (2) BON BNPP Consumer Finance Co Ltd (Formerly Sunning) 588 Changbai Street, Qinhuai District, Nanjing City, Jiangsu Province, China CNY 5,215 427 303 4,595 700 57 41 617 30% (1) Crédit Logement 50 boulevard de Sébastopol 75003 Paris France 302 493 275 EUR 1,260 171 104 196 1,260 171 104 196 17% (3) Euro Protection Surveillance 30 rue du Doubs 67100 Strasbourg France 338 780 513 EUR 1 110 24 269 1 110 24 269 11% (3) Geojit BNP Paribas Financial Services Ltd (Group) 34/659-P Civil Line Road Padivattom Kochi 682024 Kerala India INR 239 5,208 1,339 5,996 3 59 15 68 29% (5) Sicovam 18 rue Lafayette 75009 Paris France EUR 10 906 104 105 10 906 104 105 15% (4) Unión de Créditos Inmobiliarios Calle Retama 3 28045 Madrid Spain EUR 227 296 (58) 61 227 296 (58) 61 10% (2) Converted at the price on 31/12/2024. Pre-tax revenue for commercial entities and NBI for banking entities. Non-audited social contribution data at 31/12/2024. Data used in Group consolidated financial statements at 31/12/2024. Social data at 31/12/2023. Social data at 31/07/2024. Social data at 31/03/2024. In millions of euros Subsidiaries Associated companies French Foreign French Foreign II – General information about all subsidiaries and associated companies Carrying amount of shares held Gross value 17,852 41,354 613 3,104 Carrying amount 16,381 34,425 560 2,960 Loans and advances given by BNP Paribas SA 99,699 51,089 672 231 Guarantees and endorsements given by BNP Paribas SA 47,070 4,956 - 58 Dividends received 1,096 4,180 46 307 6.2BNP Paribas SA five-year financial summary 2020 2021 2022 2023 2024 Financial position at year-end a) Share capital 2,499,597,122 2,468,663,292 2,468,663,292 2,294,954,818 2,261,621,342 b) Number of shares issued 1,249,798,561 1,234,331,646 1,234,331,646 1,147,477,409 1,130,810,671 c) Number of convertible bonds in issue None None None None None Results of operations for the year (in millions of euros) a) Total revenues excluding VAT 32,108 31,884 50,446 94,079 97,501 b) Earnings before tax, amortisation and provisions 7,159 7,769 11,129 11,207 11,498 c) Income tax expense (653) (716) (943) (683) (639) d) Profit after tax, amortisation and provisions 4,404 7,307 8,033 9,620 9,560 e) Total dividend payout(1) 3,324 4,527 4,744 5,198 5,417 Earnings per share (in euros) a) Profit after tax, but before amortisation and provisions 5.21 5.71 8.25 9.17 9.60 b) Profit after tax, amortisation and provisions 3.52 5.92 6.51 8.38 8.45 c) Dividend per share(1) 2.66 3.67 3.90 4.60 4.79 Employee data a) Number of employees at 31 December 52,590 52,444 63,084 64,847 65,460 b) Total payroll expense 4,721 4,792 5,899 6,123 6,394 c) Amount paid in respect of social benefits (Social security, Social works, etc.) (in millions of euros) 1,485 1,543 1,738 1,929 1,991 For 2024, subject to approval by the Annual General Meeting of 13 May 2025. 6.3Disclosures of investments of BNP Paribas SA in 2024 affecting at least 5% of share capital of French companies Crossing threshold of more than 5% of the capital Unlisted Kryptown SAS Crossing threshold of more than 10% of the capital Unlisted Société Phocéen de Participations SA Unlisted Ecod Air H SAS Unlisted Senioralis SAS Unlisted Meet My Mama SAS Crossing threshold of more than 20% of the capital Unlisted B.Connect SAS Crossing threshold of more than 33.33% of the capital Crossing threshold of more than 50% of the capital Crossing threshold of more than 66.66% of the capital 6.4Non-tax-deductible expenses and charges In accordance with the provisions of article 223 quater of the French General Tax Code, it is specified that the Company’s financial statements for the year ended 31 December 2024 include the expenses and charges referred to in article 39.4 of the French General Tax Code, the total amount of which amounted to EUR 2.9 million during the past year. The tax incurred in respect of these expenses and charges amounted to EUR 0.8 million. 6.5Statutory Auditors’ report on the financial statements Year ended December 31, 2024 This is a translation into English of the statutory auditors’ report on the financial statements of the Company issued in French and it is provided solely for the convenience of English-speaking users. This statutory auditors’ report includes information required by European regulations and French law, such as information about the appointment of the statutory auditors or verification of the management report and other documents provided to the shareholders. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France. To the Annual General Meeting of BNP Paribas, Opinion In compliance with the engagement entrusted to us by your Annual General Meeting, we have audited the accompanying financial statements of BNP Paribas for the year ended 31 December 2024. In our opinion, the financial statements give a true and fair view of the assets and liabilities and of the financial position of the Company as at 31 December 2024 and of the results of its operations for the year then ended in accordance with French accounting principles. The audit opinion expressed above is consistent with our report to the Financial Statements Committee. Basis for opinion Audit framework We conducted our audit in accordance with professional standards applicable in France. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Our responsibilities under these standards are further described in the Statutory Auditors’ Responsibilities for the audit of the financial statements section of our report. Independence We conducted our audit engagement in compliance with the independence requirements of the French Commercial Code (Code de commerce) and the French Code of Ethics for Statutory Auditors (Code de déontologie de la profession de commissaire aux comptes) for the period from January 1, 2024 to the date of our report, and specifically we did not provide any prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No. 537/2014. Justification of Assessments - Key Audit Matters In accordance with the requirements of articles L. 821-53 and R. 821-180 of the French Commercial Code (Code de commerce) relating to the justification of our assessments, we inform you of the key audit matters relating to risks of material misstatement that, in our professional judgement, were of most significance in our audit of the financial statements of the current period, as well as how we addressed those risks. These matters were addressed in the context of our audit of the financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on specific items of the financial statements. Identification and assessment of credit risk on ustomer loan portfolios (See Notes 1, 2.f, 3.b, and 3.k to the financial statements) Risk identified Our response BNP Paribas records impairments to cover credit risks inherent to its activities. As of December 31, 2024, customer loans and receivables exposed to credit risk amount to 614.2 billion euros, and impairments and provisions amount to 5.7 billion euros and 0.4 billion euros, respectively. In an environment of persistent uncertainties marked by geopolitical and economic tensions, the assessment of expected credit losses on loan and receivable portfolios requires increased judgment and the use of assumptions from BNP Paribas Management, particularly to: Assess the significant increase in credit risk to classify exposure as sound or doubtful, especially based on criteria involving expert judgment such as the watch list process and the identification of doubtful exposures; Estimate expected losses on sound exposures; For doubtful exposures and particularly corporate receivables, estimate expected losses on doubtful exposures. We consider that credit risk assessment and measurement of related impairment constitute a key audit matter, as these items involve management’s judgment and estimates in an environment marked by above-mentioned uncertainties. We examined BNP Paribas’ internal control system and particularly its adaptation to the environment of uncertainties, and tested manual or automated controls related to the credit risk assessment and the measurement of expected losses. Our work particularly focused on the following processes: Classification of exposures: we assessed how the changes in risks were considered in estimating criteria applicable to various business lines to measure the significant increase in credit risk and identify doubtful exposures. Evaluation of expected losses: With the support of our credit risk specialists, we assessed the methodologies used by BNP Paribas and their appropriate implementation in information systems; We assessed the key models and parameters used for calculating expected losses on sound exposures, the relevance of results obtained, and the existing control system. We tested the effectiveness of data quality controls; In addition, for impairment on doubtful corporate exposures, we examined the periodic review process of credit risk for watch list counterparties and assessed, on a sample of counterparties, the assumptions and data used by management to estimate impairment. We also reviewed credit risk disclosures in the notes to the financial statements. Valuation of complex financial instruments (See Notes 1, 2.d, 3.c, 3.h, 3.i, and 6.c to the financial statements) Risk identified Our response As part of its market activities, BNP Paribas holds financial instruments measured at market value in the balance sheet. Market value is determined through different approaches, depending on the type of instrument and its complexity: (i) using directly observable quoted prices, (ii) using valuation models whose main inputs are observable, and (iii) using valuation models whose main inputs are unobservable. As of December 31, 2024, the market value of trading securities amounts to 123.4 billion euros, the net positive position of firm transactions is valued at 3.7 billion euros, and the market value of the net short position of conditional transactions is valued at 9.0 billion euros. Market values may include valuation adjustments to account for specific market, liquidity, or counterparty risks. For the most complex instruments, valuation techniques used by management may involve significant judgment and estimation regarding the choice of valuation models and parameters used, some of which are not observable in the market. This may lead to deferred recognition of margins on related operations, as specified in note 1 to the financial statements. Given the materiality of exposures, the complexity of modeling in determining market value, the multiplicity of models used, and the reliance on management’s judgments in determining market values, we consider the valuation of complex financial instruments to be a key audit matter. We examined BNP Paribas’ internal control system related to the valuation of financial instruments and performed tests, on a sample basis, on a selection of financial instruments. With the support of our financial instrument valuation specialists, our work particularly consisted in: Studying the governance established by BNP Paribas to oversee the financial instrument valuation system, specifically the approval process and regular review by risk department of valuation models and the independent verification of valuation parameters; Examining the system implemented by BNP Paribas for determining valuation adjustments and setting the parameter observability rules. On a sample basis, we also: Analyzed the relevance of assumptions and parameters used for the valuation; Reviewed the results and methodologies of the market parameter independent review set by BNP Paribas; Performed independent revaluations using our own models, where necessary; Assessed the appropriateness of deferred margin recognition. We also analyzed, on a sample basis, any differences between valuations and collateral calls with counterparties. We reviewed the information related to the valuation of financial instruments in the notes to the financial statements. Measurement of investments in subsidiaries and equity securities held for long-term investment and interests in affiliates (See Notes 1, 3.c, and 3.e to the financial statements) Risk identified Our response Investments in subsidiaries and equity securities held for long-term investment and investments in affiliates are booked on the balance sheet at a net book value of 54.7 billion euros as of December 31, 2024. They are measured individually at the lower of acquisition value or value in use. Value in use is determined, for each investment, by reference to a valuation method based on available information such as discounted future cash flows, net asset value, or multiples commonly used to assess future profitability. When the value in use of investments is lower than their net book value, an impairment loss is recognised for the difference. Given their materiality and the sensitivity of the models used to assumptions on which estimates are based, we deemed the measurement of these investments to be a key audit matter. Our audit approach is based on gaining an understanding of control procedures related to determining value in use of investments in subsidiaries and equity securities held for long-term investment and investments in affiliates. Our work mainly consisted in: Assessing, on a sample basis, the justification for the valuation methods and numerical elements used by management to determine values in use; Testing, on a sample basis, the mathematical accuracy of value in use calculations performed by BNP Paribas. Lastly, we reviewed the disclosures on investments in subsidiaries and equity securities held for long-term investment and investments in affiliates in the notes to the financial statements. IT General Controls Risk identified Our response The various activities carried out by BNP Paribas entail a high level of complexity due to the volume of transactions and the use of numerous interfaced information systems. The reliability of the information system management processes and their security are key elements for the financial information preparation process. The risk of a material misstatement occurring on the accounts due to an incident in the IT chains may result from: Inappropriate changes to the configuration of IT applications or of the underlying data; A processing failure within an IT application or within one of the interfaces; A service interruption or an operational incident. The existence of a set of controls for managing access rights to IT systems involved in the financial information preparation process, as well as an appropriate incident identification and treatment process are key controls to mitigate this risk, the assessment of which is a key audit matter. We identified the key systems, processes, and controls underpinning the preparation of financial information. With the support of our IT specialized teams, we tested the design and operating effectiveness of IT General Controls for applications we considered key for the preparation of financial information. For these key IT applications, our work particularly focused on the following aspects: Understanding IT systems, processes, and controls that underpin accounting and financial information; Reviewing the controls implemented by BNP Paribas related to access rights to IT applications and data, with special attention to privileged access; Analyzing of change management applied to these IT applications during the year ended December 31, 2024; Reviewing IT operations management; Reviewing authorization controls for manual journal entries; Performing, where applicable, additional audit procedures. We also tested IT application controls related to automated interfaces between key systems to assess the completeness and integrity of information transfers, as well as certain sensitive or complex automated application configurations. Specific verifications We have also performed, in accordance with professional standards applicable in France, the specific verifications required by laws and regulations. Information given in the management report and in the other documents with respect to the financial position and the financial statements provided to the shareholders We have no matters to report as to the fair presentation and the consistency with the financial statements of the information given in the Board of Directors’ management report and in the other documents with respect to the financial position and the financial statements provided to the shareholders, except for the item described below. The fair presentation and the consistency with the financial statements of the information relating to payment deadlines mentioned in Article D. 441-6 of the French Commercial Code (Code de commerce) prompt the following matters to report: As indicated in the management report, this information is produced only for the company in France and its three branches with the largest supplier debts, and does not include information related to other branches. As well, this information does not include banking transactions and related transactions, as the Company considers that such transactions do not fall within the scope of the required information. Report on corporate governance We attest that the section of the management report on corporate governance sets out the information required by Article L. 225-37-4, L. 22-10-10 and L. 22-10-9 of the French Commercial Code (Code de commerce). Concerning the information given in accordance with the requirements of Article L. 22-10-9 of the French Commercial Code (Code de Commerce) relating to the remuneration and benefits received by, or allocated to directors and any other commitments made in their favor, we have verified its consistency with the financial statements, or with the underlying information used to prepare these financial statements and, where applicable, with the information obtained by your Company from companies controlled thereby, included in the consolidation scope. Based on these procedures, we attest the accuracy and fair presentation of this information. With respect to the information relating to items that your Company considered likely to have an impact in the event of a takeover bid or exchange offer, provided pursuant to Article L. 22-10-11 of the French Commercial Code (Code de Commerce), we have agreed this information to the source documents communicated to us. Based on these procedures, we have no observations to make on this information. Other information In accordance with French law, we have verified that the required information concerning the purchase of investments and controlling interests and the identity of shareholders and holders of the voting rights has been properly disclosed in the management report. Report on other legal and regulatory requirements Format of preparation of the financial statements included in the annual financial report We have also verified, in accordance with the professional standard applicable in France relating to the procedures performed by the statutory auditors regarding the annual and consolidated financial statements prepared in the European single electronic format, that the preparation of the financial statements included in the annual financial report mentioned in Article L. 451-1-2, I of the French Monetary and Financial Code (Code monétaire et financier), prepared under the Chief Executive Officer’s responsibility, complies with the single electronic format defined in Commission Delegated Regulation (EU) No. 2019/815 of 17 December 2018. On the basis of our work, we conclude that the preparation of the financial statements included in the annual financial report complies, in all material respects, with the European single electronic format. Appointment of the Statutory Auditors We were appointed as statutory auditors of BNP Paribas by the annual general meeting held on May 23, 2006 for Deloitte & Associés and on May 14, 2024 for ERNST & YOUNG et Autres. As at December 31, 2024, Deloitte & Associés was in the nineteenth year of total uninterrupted engagement, and ERNST & YOUNG et Autres was in the first year, respectively. Responsibilities of Management and those charged with governance for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with French accounting principles and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless it is expected to liquidate the Company or to cease operations. The Financial Statements Committee is responsible for monitoring the financial reporting process and the effectiveness of internal control and risk management systems and where applicable, its internal audit, regarding the accounting and financial reporting procedures. The financial statements were approved by the Board of Directors. Statutory Auditors’ Responsibilities for the audit of the financial statements Objectives and audit approach Our role is to issue a report on the financial statements. Our objective is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with professional standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As specified in Article L. 821-55 of the French Commercial Code (Code de commerce), our statutory audit does not include assurance on the viability of the Company or the quality of management of the affairs of the Company. As part of an audit conducted in accordance with professional standards applicable in France, the statutory auditor exercises professional judgement throughout the audit and furthermore: Identifies and assesses the risks of material misstatement of the financial statements, whether due to fraud or error, designs and performs audit procedures responsive to those risks, and obtains audit evidence considered to be sufficient and appropriate to provide a basis for his opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtains an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. Evaluates the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management in the financial statements; Assesses the appropriateness of Management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. This assessment is based on the audit evidence obtained up to the date of his audit report. However, future events or conditions may cause the Company to cease to continue as a going concern. If the statutory auditor concludes that a material uncertainty exists, there is a requirement to draw attention in the audit report to the related disclosures in the financial statements or, if such disclosures are not provided or inadequate, to modify the opinion expressed therein. Evaluates the overall presentation of the financial statements and assesses whether these statements represent the underlying transactions and events in a manner that achieves fair presentation. Report to the Financial Statements Committee We submit to the Financial Statements Committee a report which includes in particular a description of the scope of the audit and the audit program implemented, as well as the results of our audit. We also report significant deficiencies, if any, in internal control regarding the accounting and financial reporting procedures that we identified. Our report to the Financial Statements Committee includes the risks of material misstatement that, in our professional judgement, were of most significance in the audit of the financial statements of the current period and which are therefore the key audit matters that we are required to describe in this report. We also provide the Financial Statements Committee with the declaration provided for in Article 6 of Regulation (EU) No. 537/2014, confirming our independence within the meaning of the rules applicable in France as set out in particular in Articles L. 821-27 to L. 821-34 of the French Commercial Code (Code de commerce) and in the French Code of Ethics for Statutory Auditors (Code de Déontologie de la profession de commissaire aux comptes). Where appropriate, we discuss with the Financial Statements Committee the risks that may reasonably be thought to bear on our independence, and the related safeguard. Paris-La Défense, March 20, 2025 The Statutory Auditors French original signed by Deloitte & Associés Damien Leurent Jean-Vincent Coustel ERNST & YOUNG et Autres Olivier Drion A committed bank: information concernIng the social and environmental responsIbility of BNP Paribas 7.1Sustainability statements 7.1.1General Disclosures 7.1.2Climate change 7.1.3Aligned activities within the meaning of the European Taxonomy 7.1.4Own workforce 7.1.5Consumers and end-users 7.1.6Business conduct Appendices Report on the certification of sustainability information and verification of the disclosure requirements under Article 8 of Regulation (EU) 2020/852, relating to the year ended December 31, 2024 7.2Vigilance plan 7.3Statement on modern slavery and human trafficking 7.4SASB and TCFD standards 7.1Sustainability statements The following chapter presents the BNP Paribas Group's sustainability reporting in accordance with the publication requirements of the European Directive 2022/2464 of 14 December 2022 amending Regulation (EU) No 537/2014 and Directives 2004/109/EC, 2006/43/EC and 2013/34/EU as regards corporate sustainability reporting (also known as the Corporate Sustainability Reporting Directive - CSRD), as transposed into French law. This directive aims to strengthen corporate transparency on sustainability by imposing stricter environmental, social and governance (ESG) reporting requirements. In particular, the CSRD requires a description of material impacts, risks and opportunities for the Group relating to sustainability issues. The double materiality analysis identified the following material topics detailed in this report: climate change, the company's own workforce, consumers and end-users, business conduct including market integrity topics, financial security and cybersecurity. WARNING AND EXPLANATORY NOTE These sustainability statements have been prepared in application of the CSRD (and its transposition into French law) and the European Sustainability Reporting Standards (ESRS) as applicable on the date of publication of these sustainability statements. In this respect, it is specified that only transversal and thematic standards have been adopted as of the date hereof. Despite the absence of sector-specific standards, the Group has endeavoured to take into account the specificities of its sector of activity in order to provide the most relevant and accurate information possible. Relative importance The present sustainability statements only include information that, according to the Group, is of relative importance both on the impacts of the Group's activities on people and the environment and/or on how sustainability issues affect the Group. The methodological choices that guided the double materiality analysis of the Group's environmental, social and governance issues are explained in this document. Some information collected by the Group has not been included in these sustainability statements due to its lesser materiality, although it may still be relevant. Use of assumptions and estimates In a context where certain information, mainly related to the Group's value chain, is still not widely available or sufficiently reliable, the preparation of these sustainability statements is partly based on reasonable assumptions and estimates as required by the CSRD. Some of these assumptions or estimates may present a high level of measurement uncertainty. These assumptions and estimates are presented as long as they provide useful and quality information. In this case, the associated narrative sets out the methods and definitions used, as well as any limitations and uncertainties surrounding them. In a constant effort to ensure the quality of the published information, the Group has referred, whenever possible, to European regulatory definitions and recognised standards to prepare and present the relevant information. Where this was not possible, the information was developed in good faith based on internal definitions and estimates Prospective information In accordance with the provisions of the CSRD, these sustainability statements contain forward-looking information that includes projections and estimates based on current opinions and assumptions about future events. No assurance can be given as to these projections and estimates, which are subject to inherent risks and uncertainties, some of which are beyond the Group's control, relating in particular to the Group, its subsidiaries and its investments, the development of the Group's and its subsidiaries' activities, industry trends, future investments and acquisitions, the evolution of the economic, social, ecological and environmental situation and the applicable regulations. In particular, due to these risks and uncertainties, forward-looking information should not be considered as a statement or guarantee by the Group or any other person that the Group will achieve its objectives, plans, targets, indicators within a given timeframe or that it will achieve them at all. Any forward-looking statements contained in these sustainability statements speak as of the date of these sustainability statements. The Group undertakes no obligation to publish changes or updates to this forward-looking information, except as required by applicable law. Inherent uncertainty in climate information The information, data, indicators and methodologies used in relation to climate change are constantly evolving. Climate indicators are complex and are based on many opinions and assumptions about climate policies, technologies and other uncertain or unknown factors. Any significant change in these variables could render the assumptions, and therefore the resulting climate indicators and data, incorrect. As a result, the climate information contained in these sustainability statements, whether historical or forward-looking, has inherent uncertainty, which may render it less relevant to decision-making than historical financial data. With regard to greenhouse gas (GHG) emissions, there is a lack of standardisation and comparability of estimation and calculation methods due to the diversity of available frameworks and methodologies. The methodological choices that led to the preparation of these sustainability statements are explained in this document. However, due to this lack of harmonisation, there is still a risk of over- or under-estimation of the indicators. Scope 3 emissions, especially those linked to clients financed by the Group, have high measurement uncertainty. By definition, these emissions result from the activities of the Group's customers and, unlike the Group's direct emissions, depend on external factors over which the Group has no control. Information from third parties Some statistical information and other data contained in this document are obtained from third-party sources. The Group is not responsible for this information and makes no representations or warranties as to its accuracy, preciseness or completeness. 7.1.1General Disclosures BNP Paribas prepares its sustainability statements on a consolidated basis. The scope of the reporting entities in the consolidated sustainability statements is the same as the Group’s consolidated financial statements prepared in accordance with international accounting standards: it includes BNP Paribas SA and the entities it controls exclusively. The scope and accounting consolidation principles are presented in the appendix of the financial statements (see chapter 4, notes 9k and 1b). Sustainability statements cover the Group's value chain, i.e. its operational scope but also its upstream and downstream value chain. The Group’s value chain is described in this chapter section 2.a. Strategy, business model and value chain. 1.GOVERNANCE 1.aRole of administrative, management and supervisory bodies in sustainability The sustainability strategy is integrated at the highest level within the governance bodies. These bodies address the impacts, risks and opportunities (IRO) related to environmental, social and governance topics of all the Group’s activities according to their mandates as described in the following paragraphs. ➤CHART NO. 1: BNP PARIBAS’ GOVERNANCE ON THE SUSTAINABILITY STRATEGY Executive Management is informed of BNP Paribas’ IRO monitoring via its Committees presented above, and ad hoc meetings with the functions and business lines and the Company Engagement Department. It informs the Board of directors if necessary. The Board of directors The Board of directors determines the orientations of BNP Paribas’ activities and ensures their implementation by General Management (composed of its Chief Executive Officer and its two Chief Operating Officers), in accordance with its social interest, taking into consideration the social, environmental and governance issues of BNP Paribas’ activities. The Board of directors approves the Group’s sustainability strategy. It validates the objectives and commitments related to sustainability, whether in the dimensions of impacts, risks or opportunities. It also examines the achievement of the corporate social responsibility (CSR) criteria by executive corporate officers on which part of their annual variable remuneration depends. As of 31 December 2024, it was composed of 14 members and is chaired by Mr. Jean Lemierre. The composition and diversity of the Board of directors is described in chapter 2 Corporate governance and internal control, section 1.b The Board of directors: a collegial body with collective competence. The Board of directors is regularly informed of the progress in the implementation of the Group’s sustainability strategy through presentations made by Executive Management members. It meets a minimum of four times a year and as many times as circumstances or the interest of BNP Paribas require. In 2024, the Board raised environmental, social and governance (ESG) issues 34 times in order to take into consideration the impacts, risks and opportunities of BNP Paribas’ activities. This was reflected particularly in the analysis of the following topics: the presentation of the 2023 highlights in terms of CSR, particularly related to ESG opportunities; the presentation of the 2023 climate report, which details the climate change-related impacts and risks; a state of play of professional equality between women and men. In 2016, the Board of directors and the Executive Management set up a Code of conduct which defines the standards of conduct in line with the values and missions determined by the Group (for more details, refer to chapter 7.1.6. Business conduct). The Board of directors ensures the implementation of the Code by Executive Management in the Group’s business lines, countries and regions. The Board of directors monitors sustainability topics with support of each of the four specialised Committees: Financial Statements Committee (CdC); Internal Control, Risk Management and Compliance Committee (CCIRC); Corporate Governance, Ethics, Nominations and CSR Committee (CGEN); Remuneration Committee (CR). The specialised Committees of the Board of directors Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) The CGEN is notably responsible for monitoring the Group’s CSR policy (including the management of IRO) and ensures the Group’s contribution to the transition towards a responsible and sustainable economy. In this respect, it regularly monitors the actions taken in terms of climate change, sustainable finance and the Group’s positive commitment to society. Together with the Internal Control, Risk Management and Compliance Committee, the CGEN reviews progress on the operational integration of ESG risk factors, including climate-related risk factors, into the Bank’s risk management framework. The CGEN also has the mission of identifying people likely to be appointed as directors, whose CSR skills are one of the criteria for appointment. The CGEN identifies and recommends to the Board of directors suitable candidates for the office of director, with the view to proposing their candidature to the Annual General Meeting. In determining potential candidates, the CGEN assesses the balance of skills, experience, diversity, as well as the integrity and ability to understand the main challenges and risks, both on individual and collective basis, by the Board members. Mindful of the collective competence of the Board of directors, the CGEN is also interested in candidates capable of understanding the major issues, challenges and emerging risks facing the Group, including social and environmental ones. The CGEN sets an objective to be achieved with regard to the balanced representation of women and men on the Board of directors. The objective and policy thus set are validated by the Board of directors. In addition, the Committee contributes to the selection and appointment as well as the establishment of succession plans for the Chairman and members of the Executive Management in accordance with the Policy on the suitability of Members of the management body and Key function holders. Thus, it examines applications for the position of Chief Executive Officer and Chief Operating Officer(s), considering in particular the criteria related to the understanding of the issues and risks of the Bank’s decisive activities, including good business conduct, social and environmental issues as well as the risks of money laundering and terrorism financing. Finally, the CGEN regularly monitors the updating of BNP Paribas’ Code of conduct, which defines the rules of conduct within the framework of the values and missions determined by the Bank. In 2024, the CGEN addressed ESG topics seven times, considering the impacts, risks and opportunities of BNP Paribas’ activities. It examined the 2024 draft report on social and environmental responsibility for the year 2023, the publication of the estimates of the financed greenhouse gas emissions of counterparties, the preliminary results of the double materiality assessment as well as the draft plan and content of these sustainability statements. All these topics contribute to the CGEN’s proper consideration of ESG impacts, risks and opportunities. Internal Control, Risk Management and Compliance Committee (CCIRC) CCIRC advises the Board of directors on the adequacy of the Bank’s overall strategy and risk appetite, both current and future. It examines the Risk Appetite Statement (RAS), i.e. the Group’s risk tolerance, in particular those related to ESG. Moreover, additional indicators, resulting from the definition of credit portfolio alignment targets, are integrated into the Group’s RAS for monitoring purposes. For more details on the RAS, see chapter 5, paragraph Risk Appetite. The CCIRC reviews the quarterly dashboard presented by RISK and reviews the evolution of the various risks, as well as ESG indicators, particularly those used to determine material risks. As part of requests for renewal of risk limits for specific sectors, CCIRC is required to examine their related transition issues. In conjunction with the CGEN, the CCIRC reviews progress made on the operational integration of ESG risk factors, including climate-related risk factors, into the Group's risk management framework. As part of its periodic reviews of the Group’s exposures, CCIRC is required to examine those for sectors facing more specific transition issues. Finally, the CCIRC is also responsible for monitoring the principles of remuneration regarding risk, the examination of internal control and compliance issues as well as the examination of the prices of the products and services in relation with the risk strategy. In 2024, the CCIRC addressed ESG topics five times, taking into account the impacts, risks and opportunities of BNP Paribas’ activities. In addition to updating the RAS, it also reviewed ESG risk factors (operational insertion and portfolio analysis). Financial Statements Committee (CdC) In the area of sustainability, the Financial Statements Committee follows, among other things, the process of developing sustainability information and more specifically the process for determining information to be disclosed in accordance with the European Sustainability Reporting Standards (ESRS). In this context, it examines all issues relating to the annual sustainability statements: normative framework, choice of methodologies, materiality assessment, results of indicators and any issue likely to generate potential impacts or risks. It makes recommendations, where appropriate, to ensure the integrity of these processes. In addition, the Financial Statements Committee monitors the effectiveness of internal control and risk management systems regarding the procedures for preparing and processing sustainability information. Finally, it examines the Statutory Auditors’ audit plan for the assurance of sustainability information, their recommendations and their monitoring of these recommendations. At least once a year, the Financial Statements Committee devotes part of its session to an exchange with the Board of Statutory Auditors as part of the mission of certifying sustainability information, without the presence of the Executive Management. The Statutory Auditors also present a note on the work related to their mission of certifying sustainability information once a year. On this basis, the Financial Statements Committee reports to the Board of directors on the results of this mission and how it has contributed to the integrity of sustainability reporting and the role it has played. Remuneration Committee (CR) The Remuneration Committee is responsible for the annual review of the principles that underpin the Group’s remuneration policy. In particular, it reviews, without the presence of the Executive Management, the quantitative and qualitative performance criteria related to the annual variable compensation of the corporate officers, including those related to the Group’s CSR performance, a proportion of 15% of the annual target variable compensation being linked to the Group’s CSR performance (see section 1.b. Integration of sustainability-related performance in incentive schemes of this chapter). It examines the remuneration of the Group’s regulated staff categories. It also controls the remuneration of the Chief Risk Officer and Head of Compliance. Experiences, skills and education The biographies of BNP Paribas Board members are included at the beginning of chapter 2 Corporate governance and internal control, section 2.1.1. Presentation of the directors and corporate officers and the non-voting director. All the directors have a diversity of skills, including skills and experiences related to sustainability, acquired throughout their professional careers. These combined skills allow the coverage of all the impacts, risks and opportunities related to BNP Paribas’ economic activity. The specific areas of expertise of each of the directors are specified in chapter 2 Corporate governance and internal control, section 2.1.2 BNP Paribas Corporate governance, 1.b The Board of directors: a collegial body with collective competence. The training received by directors to develop their skills is presented in section 1.d Directors' training and information in this chapter. Similarly, the maintenance of knowledge of the members of the management body (directors, Chief Executive Officer and Chief Operating Officers) is presented in chapter 2 Corporate governance and internal control, section VII. Induction and training of Members of the management body. The main administrative, management and supervisory bodies are thus composed of people with the knowledge and skills suited to monitor BNP Paribas’ material impacts, risks and opportunities. Sustainability management bodies The Executive Management defines the sustainability strategy and is accountable to the Board of directors for it. The Head of Company Engagement, member of the Executive Committee, oversees, with its teams, the operational implementation of BNP Paribas’ sustainable finance strategy alongside the operating entities. Since 2021, the sustainable finance Committees involving members of the Executive Management have been working to strengthen the integration of these CSR and climate challenges into the Group’s strategy and within each entity. The main Committees are as follows: Sustainable Finance Strategic Committee The objective of the Sustainable Finance Strategic Committee is to determine BNP Paribas’ strategy and major commitments in terms of sustainability, particularly on the topics of climate change, ESG risk and social inclusion. It decides on the major financial objectives relating to ESG topics and monitors their operational implementation. It validates the methods, data, analyses, risk management, application of standards and commitments made by the Group in publications relating to sustainable finance. It is chaired by the Chief Executive Officer and the permanent members include representatives of the three operating divisions. It met five times in 2024. In 2024, the following topics were discussed, considering the impacts, risks and opportunities of BNP Paribas’ activities: ESG Pillar 3 disclosure and computation of financed emissions; analysis and update of ESG risks; credit portfolio review to ensure the achievement of alignment objectives; monitoring of the CSR dashboard. Sustainable Finance Infrastructure Committee The Sustainable Finance Infrastructure Committee aims at industrialising ESG processes, data and reporting to measure and monitor the impacts, risks and opportunities regarding sustainable finance. Its mission is to meet the growing needs of customers, regulators, and investors. It brings together key contributors from different business lines and functions. It is chaired by the Deputy Chief Executive Officer, who is also Chief Operating Officer and met nine times in 2024. In 2024, the following topics, considering the impacts, risks and opportunities of BNP Paribas’ business, were discussed: development of the Sustainability Academy; physical risks: tools, data and models; ESG Assessment which is an ESG risk management tool (see chapter 5 Risk and Capital Adequacy – Pillar 3, appendix 5: Environmental, social and governance risks, ESG-Assessment); restriction list; HR and training processes. ESG Regulatory Committee The ESG Regulatory Committee at Executive Management level has the objective of assessing the operational consequences of the main new regulations. The representatives of Company Engagement of the three operating divisions participate in this Committee. It met twice in 2024, and the following topics were discussed: ESG legal risk trends; reports by the European Supervisory Authorities on the risk of greenwashing; the directive on the European duty of care; the European regulation on ESG rating activities. Monitoring and controls of impacts, risks and opportunities Several BNP Paribas bodies are dedicated to the control and monitoring of impacts, risks and opportunities. Executive Management BNP Paribas Group’s Executive Management relies on the control and supervisory bodies, and on the Group existing internal control framework to control, manage, monitor and propose objectives in terms of impacts, risks and opportunities. It reports to the Board of directors. The Chief Executive Officer is responsible for the organisation and internal control procedures and for all the information required by law under the internal control report as described in the Group’s Articles of association (see chapter 8 General Information, 7. Founding documents and Articles of association). Executive Committee The Executive Committee is the highest steering body of BNP Paribas, under the responsibility of the Chief Executive Officer. It meets to share relevant information and decide on the orientations with regard to the management of the Group’s activities. The Head of Company Engagement presents quarterly and annually the progress of the CSR dashboard indicators, which are correlated with the Group’s impacts and opportunities (see section 2.a Strategy, business model and value chain in this chapter). Group Supervisory & Control Committee (GSCC) The GSCC brings together the Group’s various control functions around the Executive Management and oversees matters relating to operational risks and internal control. As such, it deals in a cross-cutting manner with all the dimensions of operational risk to which the Group may be exposed, including ESG risks. It is chaired by the Chief Executive Officer and is held twice a month. General Management Credit Committee (CCDG) The General Management Credit Committee (CCDG) is the highest body in the Group regarding credit and counterparty risk. This Committee mainly decides on credit requests whose amount exceeds the individual delegations allocated by operational division and business line or which relate to transactions of a particular nature that derogate from the principles of the General Credit Policy. A representative of Company Engagement may take part in the CCDG. 1.bIntegration of sustainability-related performance in incentive schemes A 15% portion of the annual variable compensation of the Executive Officers (the Chief Executive Officer and the Chief Operating Officers) is linked to the Group’s CSR performance, considering in particular two indicators related to climate-related issues: the reduction of the carbon footprint on the Group’s own operations and the amount of the support enabling clients to transition to a low-carbon economy. For more details, see chapter 2. Corporate governance and internal control, section 2.1.3 Compensation and benefits awarded to the Group’s directors and corporate officers, paragraph Criteria linked to the Group’s CSR performance. The remuneration of the corporate officers is subject to an ex-post vote of the Ordinary General Meeting. 1.cRisk management and internal controls over sustainability reporting The internal control framework for sustainability reporting is mainly based on: a map of existing data production processes and a data collection flowchart; a matrix of roles and responsibilities created as part of the sustainability reporting implementation project; a gap analysis between regulatory disclosure requirements and sustainability disclosures; a control framework based on generic controls applicable by the sustainability information production functions and certified by the managers of the corresponding functions. The Finance & Strategy department handles the second line of defence in its area of expertise. Information on the main characteristics of the Group’s internal control is detailed in chapter 2 Corporate governance and internal control, 2.4 Internal Control. The risk management system related to the sustainability reporting process follows the same process as the Group’s risk management framework described in this chapter. The Audit Committee oversees the process of preparing the sustainability information published under Directive (EU) 2022/2464 on corporate sustainability reporting. In this context, the Audit Committee examines issues relating to sustainability statements, including the double materiality assessment, the results of indicators and any issues that may generate potential risks. 1.dDue diligence approach BNP Paribas is subject to Law No. 2017-399 of 27 March 2017 on the duty of care. Each year, it publishes a vigilance plan in response to this legal obligation. ➤TABLE NO. 1: ESSENTIAL ELEMENTS OF DUE DILIGENCE Essential elements of due diligence Paragraphs in the sustainability statement a) Embed due diligence into governance, strategy and business model Chapter 7.1.1 General Disclosures, 1.a Role of administrative, management and supervisory bodies in sustainability and 2.a Strategy, business model and value chain b) Engage with affected stakeholders in all key steps of the due diligence process Chapter 7.1.1 General Disclosures, 2.b Interests and view of stakeholders c) Identify and assess adverse impacts Chapter 7.1.1 General Disclosures, 3.a Description of the process to identify and assess material impacts, risks and opportunities d) Addressing these adverse impacts All the “Actions” or “Impact, Risk and Opportunity Management (IRO)” parts of the following chapters 7.1.2 Climate change, 7.1.4 Own workforce, 7.1.5 Consumers and end-users, 7.1.6 Business conduct e) Tracking the effectiveness of these efforts and communicate Chapter 7.1.1 General Disclosures, 1.a Role of administrative, management and supervisory bodies in sustainability and 2.a Strategy, business model and value chain 2.STRATEGY, business model and stakeholders 2.aStrategy, business model and value chain A diversified and integrated business model BNP Paribas relies on its diversified and integrated model to respond in a coordinated manner to the needs of its clients and create value. This model, based on risk diversification, is based on three operating divisions, whose expertise is complementary: Corporate & Institutional Banking (CIB)(1): acting as a bridge between corporate and institutional clients, CIB aims to connect the financing needs of our corporate clients with the investment needs of our institutional clientele; Commercial, Personal Banking & Services (CPBS)(2): it brings together all commercial banks and several specialised businesses; Investment & Protection Services (IPS)(3): it federates the activities of protection, savings, investment and real estate services. ➤CHART NO. 2: ORGANISATION OF THE BNP Paribas Group The Group’s integrated model leads to strong cohesion between all businesses, strengthens its performance in all environments and gives it a real competitive advantage. This balanced and resilient model is focused on the clients that BNP Paribas supports daily and over the long term. The large diversification of this model by client segments, geographies, sectors and businesses gives the Group stability, performance and growth, thus meeting the demand of BNP Paribas’ investors. In a complex and often uncertain context, the distinctive and powerful nature of this model makes it possible to continue to support clients over the long term in the achievment of their projects, including their transition to a more sustainable economy by providing them with advice and products dedicated to their transition. BNP Paribas operates in a broad economic and financial environment, both in terms of financial activities and in terms of geographical scope, particularly in Europe, the Middle East and Africa (EMEA), Asia Pacific and the Americas. ➤TABLE NO. 2: DISTRIBUTION OF EMPLOYEES BY GEOGRAPHICAL AREA 2024 EMEA() 153,892 Asia Pacific 19,638 Americas 8,088 Total Workforce 181,618 ()EMEA: Europe, Middle East, Africa. With its various entities and their human, financial and technical resources, BNP Paribas covers several sectors of activity by creating and distributing products and services, as presented in the following table. The proposed breakdown takes up the Group’s three-division organisation (in line) and anticipates the implementation of the regulatory nomenclature of the business sectors(4) (in column). ➤TABLE NO. 3: PRESENTATION OF THE PRODUCTS AND SERVICES OF THE GROUP’S operating divisionS ACCORDING TO THE NOMENCLATURE OF EUROPEAN ACTIVITIES ESRS sectors Credit institution Capital Markets Insurance Operational leasing of motor vehicles Real estate activities CPBS Individual, professional and corporate customers. Physical networks and online banking Deposit collection Vehicle long-term leasing (Arval) Distribution of banking services (day-to-day banking, flow solutions) Distribution of savings, investment (including life insurance) and pension solutions Distribution of property and life insurance products Distribution of financing solutions (loans, long-term leasing, lease with an option to buy, factoring) CIB Financing Services (Credit, bond issues, securitisation) Primary and secondary activity on the interest rate, foreign exchange, credit and commodities markets Derivatives and Equity Services Treasury Management for Corporations and Financial Institutions M&A advisory Brokerage, clearing and custody IPS Credit, deposit collection and investment solutions for Private Banking clients Third-party asset management for all types of clients Production and distribution of insurance and savings products (including life insurance) of persons and goods Production and distribution of real estate and management services on behalf of third parties These products and services are distributed through BNP Paribas’ downstream value chain by specialised businesses (Retail Banking, for example), thus constituting the commercial activity of the Group’s integrated model. The upstream part of the Group’s value chain and its internal operations constitutes the operational scope, which is essential for its commercial activities. For the purpose of this report, the Group has carried out a double materiality assessment on the value chain of its integrated model, for which BNP Paribas has, through its activities (operational scope and core business), a direct business relationship (customers and counterparties in particular). ➤CHART NO. 3: VALUE CHAIN OF BNP PARIBAS’ INTEGRATED MODEL This representation describes the Group’s value chain, without distinction by activity or business line, reflecting on the one hand the diversity of services offered to customers by the Group’s business lines, and the scope of application of sustainability policies on the other hand. This value chain therefore includes non-bank subsidiaries such as Arval (long-term vehicle rental) and Cardif (insurer). Sustainability Strategy Overview The Group’s corporate social responsibility (CSR) strategy consists in supporting all clients, individuals, companies and institutions, in their transition to a carbon-neutral economy that makes reasonable use of the planet’s resources and allows the inclusion of the most vulnerable while having responsible business conduct. The Group relies on all its employees to achieve this. The strategy is structured around four thematics described below, that reflect its CSR challenges. It is part of a process of continuous improvement and aims to participate in the construction of a more sustainable world while ensuring the Group’s stability and performance. This ambition is reflected in the GTS (Growth, Technology, Sustainability) strategic plan, of which sustainable development is one of the three major axes. Its deployment involves all of the Group’s businesses, functions, subsidiaries and geographies, under the aegis of governance organised at the highest level of the Group and described above. Objectives The strategic plan defines quantified CSR objectives. These indicators reflect the ambition to cover broad fields: energy transition, social inclusion, employee training, etc. They are included in the CSR dashboard (see below) and allow BNP Paribas to monitor and evaluate the effectiveness of its strategy in relation to its sustainability objectives. These objectives are divided into four thematics: economic, social, civic and environmental: economic: BNP Paribas, as a major financing player in Europe, deploys sustainable financial solutions through loans, bonds and funds under articles 8 and 9 of the SFDR(5). The economic pillar is also reflected in the promotion of the best ethical standards and the integration of the management of environmental, social and governance (ESG) issues into risk management processes; social: given today’s major societal, environmental and technological challenges, BNP Paribas has a responsibility to support its clients in their transitions towards sustainable solutions. BNP Paribas places people at the heart of its strategy to achieve this and aims to develop the potential and commitment of all the Group’s employees to broaden the expertise that constitutes the foundation of its collective performance. This ambition is driven by the People Strategy and implemented by the Human Resources function within the Group’s businesses and functions around three pillars: ethics and inclusion, employee experience and human capital; civic: the Group wants to be a committed player in society. BNP Paribas defines actions to promote the financial inclusion of customers who do not have access to banking services; environmental: BNP Paribas’ main lever of action is to support the ecological transition of economic players. To this end, BNP Paribas directs the financing and investments it grants or facilitates in favour of an economy compatible with the planet boundaries and supports the clients of its various operating entities in their ecological transition. BNP Paribas also takes action to reduce its direct environmental impacts, with the aim of continuous improvement and employee involvement. In 2024, the principles guiding the Group’s environmental action were published in its “BNP Paribas Environmental Framework(6)”. CSR management dashboard ➤TABLE NO. 4: CSR DASHBOARD Thematic Indicator 2023 Result 2024 Result 2025 Objectives Economic 1 Amount of sustainable loans (in billion euros) 117 133 150 2 Amount of sustainable bonds (in billion euros) 67 106 200 3 Amount of assets under management of open-ended funds distributed in Europe articles 8 & 9 according to SFDR (in billion euros) 254 285 300 Social 4 Share of women among the SMP population (Senior Manager Position) 37% 39% 40% 5 Number of solidarity hours performed by employees over two rolling years (#1MillionHours2Help) 1,268,515 (in 2022 and 2023) 1,338,394 (in 2023 and 2024) 1,000,000 6 Share of employees who completed at least four training courses during the year 98% 99% 90% Civic 7 Number of beneficiaries of products and services supporting financial inclusion (in millions) 3.9 5.0 6.0 Environmental 8 Amount of support enabling our clients to transition to a low-carbon economy (in billion euros) 104 179 200 9 Amount of financing to companies contributing to protecting terrestrial and marine biodiversity (in billion euros) 4.3 5.4 4.0 10 Greenhouse gas emissions (in tCO2e/FTE) 1.56 1.48 1.85 The definitions in the dashboard are presented below: Amount of sustainable loans: amount of loans at the end of the year, drawn and undrawn, identified as sustainable by an internal classification system, granted by BNP Paribas to its clients. The Group’s transaction classification principles are based on external standards such as those of the Loan Market Association as well as on the substantial contribution criteria of the European taxonomy in Europe. Amount of sustainable bonds: cumulative amount at the end of the year of all types of bonds identified as sustainable according to the guidelines of the International Capital Market Association (ICMA) issued by corporate clients, financial institutions and sovereign clients, and arranged by BNP Paribas (total amount divided by the number of bookrunners). Amount of assets under management at year-end in open-ended funds distributed in Europe articles 8 and 9 according to SFDR: these are BNP Paribas Asset Management funds. Percentage of women among the SMP (Senior Management Position) population: the Group’s Senior Management Position population is composed of employees holding approximately 3,000 positions considered to have the most significant impact from a strategic, commercial, functional and expertise point of view. The percentage is calculated on the basis of SMP positions occupied. Number of solidarity hours performed by employees: as part of the #1MillionHours2Help programme, including long-term corporate volunteering set up under the Diversity and Inclusion Agreement in France. Share of employees who completed at least four training courses in the year, including mandatory training such as compliance. Number of beneficiaries of products and services supporting financial inclusion: number of Nickel accounts opened at the end of the year since its creation, and number of beneficiaries of microloans distributed by the Microfinance Institutions financed by the Group (in proportion to the financing) as of 30 September of the year. Amount of support enabling our clients to transition to a low-carbon economy: cumulative amount at the end of the year of financial support identified as contributing to the transition to a low-carbon economy according to an internal classification system. This amount overlaps with part of the amounts in indicators 1 (sustainable loans) and 2 (sustainable bonds) as well as the financial support provided in some cases in the form of private issues, financial advisory and IPOs. Amount of financing for companies contributing to the protection of terrestrial and marine biodiversity: cumulative amount at the end of the year of financial products and services (loans, bonds, etc.) contributing to the protection of terrestrial and marine biodiversity. The contribution to the protection of biodiversity is identified by an internal classification system(7). This amount overlaps with part of the amounts in indicators 1 (sustainable loans) and 2 (sustainable bonds). Greenhouse gas emissions in tCO2e/FTE (kWh buildings and business travel): greenhouse gas emissions for one year for scope 1 (direct emissions due to the combustion of fossil fuels), scope 2(8) (indirect emissions due to the purchase of energy) and for part of scope 3 (emissions related to employee business travel), in terms of the number of Group employees (FTEs). 2024 Results The year 2024 confirmed BNP Paribas’ position as a global leader in ESG credit and bonds for the consecutive year(9). Despite a slowdown in global economic activity at the end of the year, BNP Paribas is well positioned to achieve almost all its ambitious economic, social, civic and environmental objectives by 2025. In a growing market for sustainable loans, BNP Paribas maintains its position as a world leader in sustainability-linked loans (SLL) and green loans, which contribute to the good level of sustainable loans granted by the Group (+14%, indicator 1). In addition, BNP Paribas confirmed its growth (+11% compared to 2023 production) and its position as the world leader in sustainable bonds in 2024 for the second consecutive year according to Dealogic (indicator 2), and as the leader in green bonds. Thanks to positive inflows and a favourable market effect, the amount of assets under management of the funds opened by BNP Paribas Asset Management distributed in Europe classified as articles 8 and 9 according to the SFDR regulation (indicator 3) rose by 12%, with 43 new funds launched 2024, including 16 funds reclassified as article 8 or 9. Of the three social objectives, the Group is perfectly in line with its 2025 objectives. The number of women in management is increasing, reaching 39% of the SMP population (indicator 4). The million solidarity hours were exceeded again thanks to the commitment of employees (indicator 5). Finally, the number of training courses completed is well above the target (indicator 6). The growth of the Nickel accounts and a strong increase in financing for Microfinance Institutions led to a significant increase (+1.1 million) in the number of beneficiaries of products and services promoting financial inclusion (indicator 7). The indicator relating to customer support in the transition to a low-carbon economy (indicator 8) grew very strongly in 2024 (+25% compared to 2023 production), in particular as a result of the Low-Carbon Transition Group (250 specialised bankers) and the financing granted to individual customers in the area of mobility and housing. The biodiversity indicator (indicator 9), which is non-material in the sense of the CSRD, continues to grow due to transactions (sustainability-linked loans, sustainability-linked bonds) containing one or more biodiversity-related indicators. Finally, the level of greenhouse gas emissions per employee decreased again (indicator 10), well above the 2025 target and reflecting the Group’s ongoing efforts to reduce its energy consumption and the business travel of its employees Implementing the strategy in operational processes BNP Paribas’ sustainability strategy takes into accounts the Group’s material impacts, risks and opportunities, and is operationally rolled out in the strategic plan through its sustainability axis. It is itself built around three strategic pillars to accelerate the implementation of the Group’s commitments: align the Group’s portfolios with trajectories compatible with collective carbon neutrality by 2050. Details of the objectives, baseline years and scenarios, scopes covered, and progress are described in chapter 7.1.2. Climate change; support clients in their transition to a sustainable and low-carbon economy through the mobilisation of all the Group’s businesses to develop a wide range of sustainable finance products and mobilise, by 2025, 250 professionals from the Low-Carbon Transition Group and from the Low-carbon & Sustainability for MidCaps and SMEs to help clients accelerate their transition; strengthen expertise, management tools, processes and systems through the Sustainability Academy training (see chapter 7.1.4 Own workforce, 2. Impacts, risks and opportunities management), strengthened governance (see chapter 7.1.1. General Disclosures, section 1. Governance) and dedicated tools such as ESG Assessment. As part of its continuous approach to improving its operational processes, BNP Paribas is facing two particularly salient challenges regarding sustainability issues: knowledge of clients’ ESG risks. The Group’s clients’ knowledge of their own risks is still fragmented. Therefore, the assessment of BNP Paribas’ impacts, risks and opportunities requires continuous improvement; the availability and reliability of ESG data. The calculation of ESG targets or indicators is hampered by the low availability of ESG data and by the variability of the calculation methodologies especially the one used by clients. Thus, the use of estimates is necessary but raises an issue regarding the representativeness of the data. 2.bInterests and views of stakeholders Purposes of the dialogue with stakeholders Dialogue with its stakeholders is an integral part of BNP Paribas’ social and environmental responsibility. The Group’s commitment to maintain an open and constructive dialogue with its stakeholders aims primarily at better identifying and understanding the interests, points of view and expectations of its stakeholders, as well as the impacts of its activity. The Group can thus take them into consideration in the development of its products and services’ offering, in line with the real needs of customers, the evolution of its activities and the definition of its strategy. This interactive approach is also key to inform and explain to the stakeholders the Group’s decisions and actions, with the aim of ensuring transparency and clarity. Main stakeholders The Group identifies several stakeholders of different types and with different levels of interaction, including its customers (individuals, professionals, corporate clients and institutions), its employees and employee representative bodies , its shareholders (individual and institutional investors), its suppliers, financial and extra-financial rating agencies, regulatory bodies and public authorities, civil society and its organisations. Some of these stakeholders, with whom BNP Paribas has direct and regular communication, have been included in the double materiality analysis described below. Organisation of the dialogue with stakeholders BNP Paribas has implemented a structured organisation to interact with its stakeholders and relies on several internal policies governing relationships with them to guide its approach. For example: with regard to customers, the policy for the protection of the interests of clients defines the rules of organisation and conduct that must be applied by the Group throughout the relationship with the customer, and at all stages of the life cycle of products and services (see chapter 7.1.5. Consumers and end-users); BNP Paribas’ sustainable sourcing charter reiterates the Group’s ethical principles and commitments to its suppliers and vice versa. In addition, each type of stakeholder has identified contacts within BNP Paribas, at the level of a function or a business line. The Group thus adapts and deploys several channels of dialogue with its stakeholders, the main ones being listed below. customers are in contact with dedicated sales teams according to their profile and needs. Their interests and views are collected in particular as part of the Advocacy programme for listening to the voice of customers (Net Promoter System integrating the Net Promoter Score, relationship surveys, transactional surveys). These channels of dialogue are complemented by the handling of complaints at the level of each Group entity and by the services of independent mediators (see chapter 7.1.5. Consumers and end-users, 2.b. Processes for engaging with consumers and end-users about impacts); for employees and employee representative bodies, the Group’s Human Resources Department are the privileged interlocutors. The interests and points of view of employees are collected through surveys specified below; for shareholders (individual and institutional investors) and financial and extra-financial rating agencies, the dedicated contacts are Investor Relations and Financial Reporting (RIIF), and the ESG Transparency & Performance (ESG T&P) team within the Company Engagement Department for ESG topics. BNP Paribas presents its CSR strategy to investors several times a year and regularly informs extra-financial analysts; for BNP Paribas’ suppliers and subcontractors, the Procurement & Performance (P&P) Department organises regular follow-up meetings to collect feedback and implement progress plans. The team also holds annual events dedicated to the Group’s key suppliers and shares satisfaction surveys (“Pacte PME” - SME barometer) which are all channels for feedback and dialogue. BNP Paribas also has an independent internal ombudsman, whose contact details are published on the Group’s corporate website, and who offers a mean of appeal in the event of a dispute; the Department of Institutional Affairs regularly exchanges with regulatory bodies and public authorities, in compliance with the charter for responsible representation with respect to the public authorities; civil society and its organisations are in contact with the Company Engagement and Communication teams and the business lines. Within the Company Engagement Department, a team is dedicated to relationships with advocacy NGOs. Targeted surveys, social dialogue, employee networks, and the whistleblowing platform are among the tools used by the Group to listen to employees. Pulse surveys: measuring engagement and well-being of employees To better understand employee engagement, their adherence to the Company’s strategy, their perception of management and to measure their level of satisfaction and well-being at work, BNP Paribas has been regularly conducting relationship surveys since 2020, which are delegated to entities around the world. These entities have the opportunity to highlight their own issues and to define specific action plans related to each working environment. In 2024, 90% of employees were surveyed. The overall engagement score resulting from the consolidation of all local engagement scores reaches a high level of nearly 85%. In addition, every two years, a global Group survey is conducted among all employees on the topics of Conduct & Inclusion. The quality of life at work assessment survey: assessing the quality of life at work and identifying psychosocial risks Built in consultation with the medical coordinator of BNP Paribas SA in France, based on recognised scientific work, the Group conducts an annual survey to assess the quality of life at work, in order to provide an objective measure of the levels of stress and well-being at work as well as the factors likely to explain them. In 2024, it reached more than 45,000 employees. The survey is used to measure employees’ feelings about their working conditions and to set up action plans as close as possible to the teams. Social dialogue Social dialogue is essential for the Group in order to integrate the interests and rights of employees into its overall strategy. This commitment is reflected at the European level through Committees promoting social dialogue and at a global level through global Group agreements. Regarding the employee representative bodies in France, the Central Social and Economic Committee (CSEC) of BNP Paribas SA as well as the CSE of the Group’s subsidiaries in France are regularly informed of the Group’s policy regarding CSR strategy, commitments and achievements. The CSEC of BNP Paribas SA was notably informed in 2024 by the Company Engagement Department, of the Group long-term CSR strategy aiming at supporting its customers and the resulting concrete actions. At the European level, a European Group Works Council exists since 1996. Indeed, the European Committee (EC)(10) created in 1996 is a structure for information, exchange of views and dialogue that covered 22 European countries and about 73% of total headcount at the end of 2024. Through this body, BNP Paribas has set up a consultation mechanism to ensure that the views of its employees are heard and considered. Thus, in 2024, progress on the implementation of the strategic plan and the associated People Strategy (Human Resources strategy) was shared with the European Committee. Presentations and discussions were held in particular on the Group’s mobility policy, the evolution of the learning experience of employees and the evolution of customer offers. At the global level, social dialogue is guaranteed by the Global Agreement. Indeed, in line with the 2018 agreement entitled “Fundamental Rights and Global Social Framework” (Global Agreement), a new Global Agreement was signed for four years on 4 November 2024 between BNP Paribas and UNI Global Union, the global union representing the banking and insurance sectors, with the participation of Fecec(11), the Group’s European Works Council and the two representative trade unions at Group level in France. This new agreement reinforces the global social floor common to all Group employees in all the countries in which it operates: new ways of working, technological transformations, professional equality and the fight against discrimination, support for parenthood, health and well-being at work. The agreement also includes concrete and measurable commitments on human rights and fundamental rights at work, in particular the right to freedom of association and collective bargaining(12), to support the continued sustainable growth of the Group’s activities and the development of satisfactory working conditions for employees. This new agreement will be implemented in all the Group’s locations, thus enriching the common social floor and improving the rights of employees in several countries about local regulations. It will be monitored annually within the framework of a dedicated joint Committee. Employee resource groups BNP Paribas’ internal employee resource groups promote diversity, inclusion and social well-being. They offer spaces for transversal and informal exchanges, constituting information relays and sources of innovation. In 2024, these resource groups organised numerous events in 25 countries on various themes such as professional equality, sexual orientation, intergenerational, parenting, ethno-cultural origins and disability. Employees’ whistleblowing right BNP Paribas employees have the right to whistleblowing, allowing them to report in good faith serious breaches, threats to the public interest, or violations of standards and regulations, including the Group’s Code of conduct and internal procedures. The right to whistleblowing and the protection of whistleblowers is dealt with in chapter 7.1.4 Own workforce, 2.b Processes for engaging with own workers and workers’ representatives about impacts. Consideration of the interests and views of stakeholders The interests and views expressed by internal stakeholders (employees, social partners) and external stakeholders (investors, NGOs) feed into the Group’s strategic thinking and decisions. Committed to involving its employees in its strategy, the BNP Paribas Group implements tools in order to regularly listen to its employees and their expectations in order to enrich its strategy and action plan. The “People Strategy” was developed in 2021 and 2022 by the Human Resources Department and based on listening to a wide variety of employees, in 40 countries, in order to consider their expectations, particularly in terms of strengthening ethics and inclusion, improving the employee experience, and developing skills. The Company Engagement Department, including the teams in charge of CSR topics, is in regular contact with several external stakeholders (investors, NGOs). Their dialogue with stakeholders informed their work during the construction of the Sustainability pillar of the Group’s strategic plan. In the context of the European CSRD regulation, the interests and views of several key stakeholders (employees, clients, investors, NGOs) were considered in the realisation of the Group’s double materiality analysis (see section 3.a. Description of the processes to identify and assess material impacts, risks and opportunities of this chapter). The CSR policy is steered by the teams in charge of CSR within the Company Engagement Department, represented on the Group’s Executive Committee, which regularly decides on CSR issues. Presentation of the interests and views of stakeholders in BNP Paribas’ governance The sustainable finance governance bodies, the Executive Committee and the Board of directors of BNP Paribas are informed of the interests and views of stakeholders on the Company’s impacts in terms of sustainability through the Company Engagement Department. The latter is also represented in the Sustainable Finance Strategic Committee, chaired by the Group’s Chief Executive Officer. This Committee decides on the overall sustainable finance strategy and the commitments made by the Group. In addition, the major sustainability topics addressed by investors, the Group’s clients and NGOs, as well as the number of interactions with these stakeholders, are presented annually by the teams in charge to the Sustainability Committee, which brings together all the Group’s CSR teams and managers. The presentations made by the Executive Management to employee representatives in the CSEC of BNP Paribas SA as well as in the CSE of the Group’s subsidiaries in France during the mandatory annual consultations are opportunities to discuss the Group’s strategy, and in particular the sustainability strategy (in its three ESG dimensions). These presentations allow the members of the CSEC to ask questions to the Executive Management, to obtain answers to all their questions and to express their points of view and those of the employees. At the end of these meetings, employee representatives share their observations and points of attention with Executive Management, as was the case in 2024, in particular on better consideration of the voice of employees, on improving communication for employees on the topics of the energy and environmental transition, the quality of life at work and the training and employability of employees, especially seniors. The Executive Management validates the answers to these observations and points of attention, which are then shared by Group Head of Human Resources to the Board of directors and then to the employee representatives. In addition, with regard to the disclosure of employees’ interests and views relating to the Company’s impacts in terms of sustainability, the Board of directors of BNP Paribas: was informed by Group Head of Human Resources of the answers to the observations and points of attention raised by the CSEC following the presentation by the Executive Management of the Group’s strategy and the sustainability strategy; was informed of the Group’s diversity and inclusion policy and the actions implemented following the results of the Conduct & Inclusion survey conducted in 2023 among employees; was informed about the implementation of the People Strategy as well as the results of targeted employee surveys measuring their engagement, satisfaction and quality of life at work. 3.MATERIAL IMPACTS, RISKS AND OPPORTUNITIES The activities of BNP Paribas’ corporate clients are likely to be subject to negative impacts and ESG risks. In order to limit and monitor these potential impacts and risks, measure performance and support clients in the transition, the Group has adopted a comprehensive framework to identify them across all the Group’s activities, and across all environmental, social and governance dimensions. This framework makes it possible to combine both the knowledge and the assessment of each client’s ESG performance through the existing KYC onboarding processes, the ESG Assessment, and the identification of material impacts, risks and opportunities at the level of the Group’s consolidated portfolios, via the risk inventory processes (Risk ID detailed in chapter 5 Risks and Capital Adequacy – Pillar 3, Annex 5: Environmental, social and governance risks), stakeholder consultation and the deployment of the strategic plan. This framework is operationally integrated through the General Credit Policy, sector-specific policies including ESG criteria, the Global Shareholding Policy, and policies related to the Group’s investment strategies. Thus, these frameworks in place in the various businesses allow for an in-depth analysis and review of ESG criteria during credit or investment Committees, and a client engagement based on an in-depth and documented study. The complete framework is presented in the graphic below. The complete framework is presented in the graph below. ➤CHART NO. 4: REPRESENTATION OF THE GLOBAL FRAMEWORK OF ESG RISK AND IMPACT MANAGEMENT 3.aDescription of the processes to identify and assess material impacts, risks and opportunities The Group was able to capitalise on the framework previously presented in order to conduct its double materiality assessment and identify the material impacts, risks and opportunities (IRO) on the Group’s operational scope and commercial activities, by applying a number of criteria and thresholds detailed below. Structure of Double Materiality Analysis The Group carried out the double materiality analysis by following four successive steps to cover ESG topics: Understand and define (i) BNP Paribas’ value chain, in particular by distinguishing the two sub-scopes “operational scope” and “commercial activities” covering all the Group’s financial activities, and (ii) the ESG sub-topics relevant to BNP Paribas, which led to the addition of two entity-specific topics to the Group’s activities: “Cybersecurity” and “Market integrity and financial security”; Identify the two sub-perimeters of the value chain, (i) on the one hand, the stakeholders and (ii) on the other hand, the impacts, risks and opportunities at the level of the ESG sub-topics; Assess, on the two sub-perimeters of the value chain, the materiality of impacts, risks and opportunities for each sub-topic on a scale of 1-Minimal to 5-Critical; Determine, on the two sub-perimeters of the value chain, the materiality threshold for impacts, risks and opportunities; when the rating is 3-Important and above on at least one of the three dimensions, then the sub-topic is considered material. The methodology for double materiality analysis is the same for all ESG topics, without distinction. Methodology for Analysing Impact Materiality The impact identification and assessment methodology is based on the number of requests from the BNP Paribas Group’s main stakeholders, whose requests are available, reliable and centralised within the Company Engagement Department and therefore operationally usable for impact analysis. These solicitations are categorised by ESG sub-topics and cover all the Group’s activities. The impact assessment is carried out in two steps: Inquiries from clients, investors, and non-governmental organisations (NGOs) received between 2022 and 2023, as well as employees’ considerations from a 2021 survey, are counted to determine the impact materiality score for each ESG sub-topic; Following an analysis by ESG topic, an internal expert adjustment is applied based on internal documents, reputational risks and an expert assessment of the scale, scope and irremediable character of the impact. BNP Paribas assesses the materiality of impacts for each ESG sub-topic, on a scale of 1-Minimal to 5-Critical, and considers an impact as material from grade 3-Material. The use of this scale makes it possible to identify the material impacts of the Group’s business model in response to stakeholders’ requests with the current tools and knowledge of internal experts. Please note that: when assessing the Group’s impacts, as it could not differentiate with a reasonable level of confidence the time horizons of the identified impacts, BNP Paribas has chosen to apply a conservative approach, considering all impacts as actual; the Group engages with all its stakeholders as described in section 2.b. Interests and views of stakeholders in this chapter; in order to avoid double counting at the identification step of impacts, risks and opportunities, BNP Paribas’ positive impacts related to financial opportunities for the Group have been considered as opportunities and are therefore identified and assessed as such. Methodology for Analysing Financial Materiality Risk dimension The risk identification and assessment methodology is based on the result of the Group’s risk inventory process, Risk ID, designed to favour anticipation and promote a forward-looking approach to risk identification by BNP Paribas. Each year, Risk ID contributors have access to an overview of the world’s major risks and additional internal studies on ESG risks. This overview is based on studies by international players (World Bank, Organisation for Economic Co-operation and Development, International Monetary Fund, reinsurers, etc.) dealing, among other things, with ESG topics (climate change, nature, social and corruption, in particular). Based on this documentation and their expertise, Risk ID contributors, risk experts from the Group’s various businesses and entities, including the teams in charge of ESG risks and Compliance: identify “risk events” related to types of banking risks: credit, market, operational, reputational risks, etc.; link these risk events to various risk factors, including ESG risk factors(13); assess the likelihood and severity of these risk events by assessing their potential expected loss. Based on these elements, the potential expected losses are grouped by ESG risk factors and then compared on a scale of 1-Minimal to 5-Critical. This scale is set to the annualised expected loss threshold, defined by BNP Paribas annually during internal capital adequacy exercises (ICAAP exercise). Thus, the risks related to the ESG sub-topics are defined: as material (from Grade 3-Material), for ESG risk factors exceeding the annualised expected loss threshold; as non-material (between grades 1-Minimal and 2-Informative), for ESG risk factors that do not exceed the annualised expected loss threshold. Please note that: contributors to Risk ID have to assess the relative materiality of the identified risk events, up to a 30-year horizon. Based on the 2024 risk inventory (available in early 2025), it will be possible to assess the materiality of ESG risk factors in the short (1 year), medium (1 to 3 years) and long term (3 to 30 years); for physical and transition climate risks, Risk ID contributors can rely on the overview of major risks, incorporating the results of the various climate stress tests conducted by the Group: several exploratory analyses carried out on the residential and commercial real estate portfolios consider a range of acute hazards: forest fires, drought, hail, coastal flooding. The study was carried out on the following climate scenarios: RCP(14) 4.5 and RCP 8.5 and SSP(15) 1-2.6 and SSP 5-8.5 by 2050, a stress test exercise was carried out on the residential and commercial real estate portfolios as part of the Bank’s ICAAP presentation(16), with a view to assessing the risk of flooding (pluvial and riverine), in a scenario RCP 8.5 (high emissions) by 2085, the European Central Bank’s (ECB) stress test in 2022 aimed to identify potential vulnerabilities related to transition climate risk, both in the short term in the case of a disorderly transition, and in the long term (30 years) depending on the strategic choices of the banks in these different scenarios, BNP Paribas has identified economic activities that are incompatible with a transition to a low-carbon economy or require significant efforts to be compatible in its stress tests, feeding Risk ID. The structuring assumptions of these exercises are presented in the stress test section of chapter 7.1.2. Climate change. In addition, Risk ID contributors also have access to (i) a sector heatmap of transition climate risks, (ii) countries’ ESG ratings, including transition risks and (iii) a breakdown of BNP Paribas’ credit portfolio alignment objectives. The Group’s risk inventory thus includes several significant scenarios relating to financial losses related to the divestiture of certain assets, activities, sectors, counterparties that are too emissive and do not have a transition trajectory compatible with the Bank’s strategy and commitments; the key climate assumptions made in BNP Paribas’ financial statements are consistent with the climate scenarios used in the various years presented above. Opportunity dimension BNP Paribas’ strategic plan identifies development opportunities for the Group. To be consistent with operational tools and processes, the methodology for identifying opportunities is based on this strategic plan and on existing commercial offers linked to ESG sub-topics. The methodology for evaluating opportunities is based on: the identification of a Group strategic commitment monitored through a performance indicator and linked to an ESG sub-topic; the objectives for achieving the strategic plan and/or on a qualitative assessment of the cost reductions related to the operational scope. BNP Paribas assesses the materiality of opportunities for each ESG sub-topic, on a scale of 1-Minimal to 5-Critical. The materiality threshold is determined from grade 3-Important and corresponds to an ESG sub-topic related to a strategic commitment followed by a performance indicator. Please note that: as the quantification of opportunities corresponds to the achievement of the strategic plan, the materiality of the opportunities is assessed over the medium term; the methodology for identifying and assessing opportunities is not specific to climate change. Governance and internal control The Company Engagement, RISK and Finance Functions respectively carry out the analysis of impacts, risks and opportunities, and then a harmonisation is carried out before presentation for validation to the BNP Paribas governance. This overall review ensures the coherence of the three parts of the assessment and is based, where appropriate, on additional ad hoc analyses, for example sectoral heatmaps or available customer questionnaires. The assessment of impacts, risks and opportunities is based on operational processes already in place, with their own and integrated governance: the risk inventory has three levels of validation as well as a second level control; the objectives for achieving the strategic plan have the same control framework as BNP Paribas’ other information, including three lines of defence, detailed in in chapter 2 Corporate governance and internal control, 2.4 Internal Control. Synthesis of the double materiality assessment BNP Paribas’ operational framework for managing impacts, risks and opportunities covers all ESG topics, but the double materiality assessment as defined above provides a filter for material topics for the Group. An ESG topic is material when: the Group’s negative impacts on the topic are considered significant by stakeholders; the risks generated by the topic, (i) directly on the Group or (ii) indirectly through its financial activities, are above a certain annualised expected loss threshold; the opportunities related to the topic are defined as part of the Group’s strategic plan and monitored by a performance indicator. This process and the results of the double materiality assessment will be reviewed annually and may therefore evolve in the next exercises conducted by the Group. ESG topics and their respective impacts, risks and opportunities assessed as material are presented in the following section. 3.bMaterial impacts, risks and opportunities and their interaction with strategy and business model The double materiality assessment covers all the Group’s entities, in line with the integrated business model. An analysis of the specificities of the Group’s non-bank entities is carried out in parallel to ensure that any specificities, notably in terms of impact are considered. ➤TABLE NO. 5: DOUBLE MATERIALITY MATRIX BY SUSTAINABILITY TOPIC The consideration of the specificities of the Group’s non-banking entities did not result in the identification of material topics different from those identified at Group level, except for the Arval scope, as shown in the above illustration. Within the scope of Arval, the impacts assessed as material in terms of pollution are described in the sustainability statements published by the subsidiary under the CSRD. ➤TABLE NO. 6: DETAILED LIST OF MATERIAL IMPACTS, RISKS AND OPPORTUNITIES (IRO) FOR THE BNP Paribas Group BY REGULATORY SUB-TOPIC Topic Sub-Topic Value Chain Category(1) IRO title IRO description Climate change Climate change adaptation Core business Risks(2) Credit risks arising from physical risks Credit risks resulting from the intensification of acute and chronic extreme weather events (droughts, heat waves, floods, etc.). Climate Change Mitigation & Energy Core business Negative impacts Greenhouse gas emissions by the Group’s customers Indirect climate impacts, through the financing of greenhouse gas-emitting customers. Risks Credit risks arising from transition risks Credit risks resulting from stranded assets and/or the decline in activity in certain sectors exposed to transition risks. Reputational risks Reputational risks resulting from accusations of greenwashing and the financing of high-greenhouse gas-emitting sectors. Opportunities Financing the low-carbon transition Opportunities related to the offer of sustainable products and services that support the transition of customers to a low-carbon economy in all sectors. Operational Scope Opportunities Reduction of the Group’s direct GHG emissions The reduction of carbon emissions within the Group’s operational scope can lead to opportunities, and particularly a reduction in costs, an image gain and participate in employee awareness. Own workforce(3) Operational Scope Negative impacts Discrimination, inequality and exclusion Isolated cases of discrimination, inequality and exclusion among BNP Paribas employees. Violence and harassment at work Isolated cases of violence and harassment at work among BNP Paribas employees. Partial social protection for employees Employee social protection potentially insufficient in some countries. Risks Psychosocial risks Psychosocial risks for employees related to the recent evolution of work methods and environment. HR Legal Risks HR legal risks: disputes related to discrimination (which may include harassment), poor execution of employment contracts and unequal treatment. Opportunities Gender diversity By fostering an inclusive, balanced and supportive work environment, BNP Paribas promotes the attractiveness of the Group and retention of high-level talents, thus reducing external recruitment costs. Work-life balance Work-life balance, contributing, among other factors, to well-being at work, retention and efficiency at work for employees. Skills development Skills development, which promotes employee satisfaction, retention, skills development and employability of employees and thus reduces external recruitment costs. Consumers and end-users(4) Social inclusion Core business Negative impacts Ineligibility for products or services Impacts on certain individual customers who are not eligible, because of their profile, for financial products or services essential to their social inclusion. Opportunities Financial inclusion Offer of products and services promoting social inclusion through financial inclusion. Clear, transparent and non-misleading information Core business Negative impacts Financial difficulties related to an information default Impacts on individual clients facing financial hardship, particularly when the information provided on financial products or services is not clear and transparent and not misleading. Risks Legal and reputational risks related to an information default Risks related to the protection of the interests of its individual clients, such as the risk of sanctions, fines from regulators, legal proceedings from clients; reputational risk related to the actions of third parties (customers, NGOs, etc.). Customer satisfaction Core business Negative impacts Dissatisfaction Dissatisfaction of individual customers related to an operational or commercial subject. Data protection Core business Risks Legal and reputational risks resulting from loss or theft of confidential data Legal and reputational risks arising from a breach of data protection legislation and/or loss or theft of confidential information of individual customers. Business conduct Business conduct (including whistleblower protection) Core business Risks Legal and reputational risks related to corruption or influence peddling Reputational, legal or financial risks for the Group in the event of involvement in acts of corruption or influence peddling, directly or indirectly, actively or passively. Political influence and lobbying activities Core business Risks Legal and/or reputational risks related to controversial lobbying activities Legal and/or reputational risks if the Group makes political contributions and/or controversial lobbying activities made public. Specific to BNP Paribas Market Integrity and Financial Security Core business Risks Legal risks related to failure to identify suspicious customer activity Regulatory risks if the Group fails to identify, monitor and report suspicious customer activity. The Group may face administrative and criminal penalties as well as significant remedial costs, if the bank fails to identify and report criminal activities such as money laundering. Cybersecurity Operational Scope Risks Operational risks generated by cyberattacks Operational risks linked to continuity and resilience: system disruption due to cyberattacks. Reputational risks generated by cyberattacks Reputational risks related to the Bank’s ability to overcome cyberattacks. Legal risks generated by cyberattacks Legal risks caused by the loss or theft of confidential data because of cyberattacks. As a reminder, the impacts identified by the Group’s double materiality analysis methodology are considered current, so they do not have an associated time horizon. Risks are identified in the medium term (1 to 3 years) and long term (3 to 30 years) according to the time horizons of the Risk ID process. Opportunities have been identified in the medium term. It should be noted that for climate change, a distinction should be made between two types of risks: (i) Physical risks: resulting from the direct impact of climate change on people and property due to extreme weather events or long-term changes in climate patterns such as rising sea levels or rising temperatures; and (ii) transition risks: resulting from a change in the behaviour of economic and financial agents in response to the implementation of energy policies, changes in regulations, technological innovations or changes in consumer preferences. Own workforce considered is employees and temporary workers. Consumers and end-users are the Group’s direct individual customers and indirect individual beneficiaries (in the case of microfinance). ESG risks accentuate traditional banking risks, which can increase the pressure on the Group’s financial performance. The Group’s ESG risk management and stress testing framework is integrated into the overall risk management framework broadly described in the chapter 5.3. Risk management. To limit its negative impacts and potential risks, and to develop its opportunities, BNP Paribas has put in place policies, broken down into specific actions, presented in the thematic chapters of the sustainability statements: chapter 7.1.2 Climate Change, chapter 7.1.4 Own workforce, chapter 7.1.5 Consumers and End-Users, chapter 7.1.6 Business conduct. Finally, BNP Paribas’ strategic plan identifies climate and social opportunities. This plan is implemented by the operational divisions to manage opportunities through targeted indicators from the CSR dashboard, presented above. (See section 2. Strategy, business model and value chain of this chapter). Specifically on climate change: BNP Paribas has defined the trajectory for aligning its portfolios towards a net-zero greenhouse gas emissions target by 2050 (see chapter 7.1.2. Climate Change, section Targets and metrics on credit portfolios) as a strategic focus of the strategic plan. This commitment leads the Group to gradually select the counterparties that emit the least GHGs and thus present the least transition climate risk; the resilience of BNP Paribas’ diversified and integrated model to climate change risks was confirmed during the 2050 resilience tests carried out by the Group as part of the ECB’s 2022 financial year and by the internal resilience tests as part of the work on Internal Capital Adequacy (see chapter 7.1.2. Climate Change, section Description of the resilience of the Group’s strategy and business model to climate risks); BNP Paribas has recognised current financial effects related to the potential consequences of climate change (transition and physical risks) on credit risk. The approach is described in the financial statements in chapter 4 Consolidated financial statements as of 31 December 2024, 4.6 Notes to the financial statements prepared in accordance with IFRS accounting standards adopted by the European Union, 2.g Cost of risk. 7.1.2Climate change BNP Paribas presents below the Group’s strategy, performance and commitments in relation to climate change stakes. It develops the following topics: Strategy: the strategy of credit portfolios alignment with decarbonisation pathways compatible with the Paris Agreement is presented in section 1a. Transition plan for climate change mitigation. Climate risks and stress testing analysis: BNP Paribas regularly assesses its business model's resilience to physical and transition risks related to climate change. This includes the exercises (stress test) requested by the ECB(17) and the EBA(18). These elements are presented in this chapter, section 1c. Description of the resilience of the Group’s strategy and business model to climate risks. Policies related to climate change mitigation and adaptation: BNP Paribas describes the policies adopted to manage material impacts, risks and opportunities related to climate change in section 2a. Policies related to climate change mitigation and adaptation in this chapter. Actions related to the Group’s decarbonisation trajectory: BNP Paribas’ actions in relation to its risks, impacts and opportunities aim to reduce climate change risks by improving its knowledge of its counterparties’ climate profile and trajectory, to minimise its impact by monitoring its credit portfolio alignment in the most emitting sectors, to reduce its carbon footprint on its operational scope and to support its clients in their transition to a low-carbon economy, thanks to suitable sustainable products and services. Metrics and targets: BNP Paribas presents the Group’s metrics and objectives related to greenhouse gas emissions reduction by sectors. It discloses decarbonisation indicators for the most greenhouse gas-emitting sectors of its credit portfolio as well as the amount of its financed emissions. These elements are presented in section 3. Metrics and targets. 1.STRATEGY 1.aTransition Plan for climate mitigation Scope and limits BNP Paribas’ transition plan key elements for climate change mitigation, described below, relate solely to the financial assets of the Group’s bank balance sheet. Climate-related commitments, actions, targets and results related to the Group’s investment activities are described in dedicated publications issued by BNP Paribas Cardif and BNP Paribas Asset Management in response to article 29 of the French Energy and Climate Law No. 2019-1147 of November 8th, 2019. While the strategy, the risks described, and the policies encompass all the Group’s activities, certain actions, targets and metrics are specific to financing activities. Particularly, intermediary alignment targets cover financing granted to non-financial corporates, in accordance with the scope of assets selected for the financed emissions’ inventory presented in section 3.d Gross greenhouse gas emissions of chapter 7.1.2 Climate change, on the most greenhouse gas-emitting sectors. Due to the absence of sector-specific standards dedicated to the financial sector, and in a regulatory landscape undergoing stabilisation (with different standards referring to similar transition plan requirements), BNP Paribas activates the provision provided in the ESRS 1 standard - paragraph 133 (a) of chapter 10.2 Transitional provision related to chapter 5 Value chain. Its application is specified by the EFRAG on its Q&A platform (FAQ ID1033) published in December 2024(19), and the Group does not disclose any greenhouse gas emission reduction target in absolute value. In addition, due to the dependence on client or third party data to calculate its emissions, the Group is not able to indicate whether, and if so, when, it would be able to produce reliable targets in absolute value. Indeed, it is necessary to highlight two major obstacles: the conditions on data availability and data quality (e.g. on clients’ scope 3 emissions) are not yet met to define a reliable data inventory sufficiently representative to be a baseline to elaborate long-term projections; the difficulty of projecting decarbonisation trajectories and estimating clients’ financing needs due to a lack of consensus on long-term macroeconomic assumptions. BNP Paribas is continuously working to improve data and clients' needs analysis. To date, the Group considers that its approach, which relies on medium-term objectives for steering its portfolio's decarbonisation by sector, is consistent with its past commitments and represents the best response to decarbonisation challenges. The Group has set intermediary targets to reduce the emission intensity of its credit portfolios in the most greenhouse gas-emitting sectors by 2025 and 2030. The targets, calculation methods, scope and data sources are specified in section 3a. Group’s metrics and targets related to its impact on climate change. BNP Paribas has also set targets for reducing greenhouse gas emissions within its operational scope, supported by actions to promote the improvement of its building’s energy efficiency and sustainable mobility. Finally, BNP Paribas purchases voluntary carbon credits each year equivalent to the volume of the residual greenhouse gas emissions from its operational scope. ➤CHART NO. 5: HISTORY OF BNP PARIBAS’ COMMITMENTS TO combat GLOBAL climate WARMING BNP Paribas’ actions to limit climate change BNP Paribas’ main action lever is to rely on its position as a financial institution to support the ecological transition of economic players. This continuous and holistic commitment enables the Group to be, in 2024 and for the second consecutive year, the world leader in green loans and bonds according to Dealogic(20). As part of its strategic plan, BNP Paribas has reaffirmed the importance of climate in its strategy. It includes a Sustainability axis whose first strategic pillar is the alignment of credit portfolios with the decarbonisation commitment for the most greenhouse gas-emitting sectors. The second pillar is supporting clients towards a sustainable and low-carbon economy by mobilising internal resources, and the third pillar is strengthening the Group’s expertise, management tools, processes and systems. Each of these three pillars includes significant actions: BNP Paribas excludes from its scope of activity clients and projects with the highest greenhouse gas emissions and significantly reduces its credit exposure to particularly greenhouse gas-emitting activities through dedicated financing and investment policies; the Group increases its support for low-carbon energies, notably through the Low-Carbon Transition Group, with nearly 250 bankers. BNP Paribas supports the funding of energy and ecological transition projects or companies particularly committed, notably through green bond issues, Sustainability-Linked Loans (SLL) and Sustainability-Linked Bonds (SLB) integrating climate criteria. It also offers its individual customers tailored financial products and services: reduced-rate mortgages for more energy-efficient properties in certain geographies or for the purchase of cleaner vehicles; for corporate and financial institutional clients, BNP Paribas has developed the ESG Assessment. This tool provides a more harmonised, systematic, comprehensive, and formal review of ESG topics through the credit chain: from on-boarding to credit granting, monitoring and reporting. Initially launched on the large corporate segment, the ESG assessment framework was extended in 2024 to relevant medium-sized corporate clients (companies with a turnover higher than EUR 50 million, selected on risk-based criteria) and to financial institutions with tailored questionnaires. The ESG Assessment tool for corporate covers five ESG dimensions including climate and environment and provides a global overview of the client's ESG profile, which is completed by a controversies analysis for a full assessment. The qualitative conclusions of the ESG Assessment (including controversies analysis) are provided by the Relationship Manager and Group CSR if applicable and challenged by RISK as the control function, to allow a well-balanced assessment of performance and risk. The ESG Assessment helps decision-making through the usual credit processes, by strengthening and documenting ESG due diligence at counterparty, transaction and collateral levels. Since 2010, BNP Paribas has implemented financing and investment policies covering all of its activities in the economic sectors with the highest environmental or social impact. Some of these policies aim to reduce the Group's credit exposure to the most greenhouse gas-emitting activities, particularly fossil fuels. In this context, the Group has committed to reducing its credit exposure to coal-fired power generation and to the oil and gas upstream activities. Since 2021, BNP Paribas has also been committed to align the credit portfolio of the most greenhouse gas-emitting sectors with trajectories compatible with the objectives of the 2015 Paris Climate Agreement, which aims at “holding the global average temperature rise well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature rise to 1.5°C above pre-industrial levels”. The Group has set targets related to reducing greenhouse gas emissions in nine sectors. This approach constitutes, as of today, the core of its transition plan. The resources deployed and the progress observed are presented below in sections 2e. Resources dedicated to the transition and 2c. Actions related to the management of climate impacts and risks in this chapter. In addition to its exit from the coal sector, almost completed by the end of 2024, the Group ends since 2023 the financings purely dedicated to the development of new oil or gas fields, regardless of the financing methods. BNP Paribas decided to reduce its credit exposure to oil and gas upstream activities by 80% and 30% respectively by 2030, compared to September 2022. Since 2023 also, BNP Paribas has further strengthened its ambition to decarbonise its credit portfolio by adopting an exit trajectory from fossil fuel upstream activities. By 2030, low-carbon energies, primarily renewables, must represent at least 90% of the Group’s financed energy mix. This commitment is reflected in the fast-paced evolution of the credit portfolio, as illustrated in the chart below: BNP Paribas continues to shift its financing towards low-carbon energies ➤CHART NO. 6: WEIGHT OF FOSSIL FUELS AND LOW-CARBON ENERGIES IN BNP PARIBAS' CREDIT EXPOSURE(1) FOR ENERGY PRODUCTION The figure above illustrates the continued shift of the credit portfolio towards low-carbon energies, with a significant acceleration between September 2022 and September 2024 (+36% on renewable and -51% in fossil energies). In terms of energy definitions, BNP Paribas makes the following distinction: renewable energy: wind and marine energy, photovoltaic solar energy, concentrated solar energy, hydroelectricity, geothermal energy, bioenergy (including biofuels except for first generation); low-carbon energy: electricity from renewable and nuclear sources. The scope of low-carbon energies could evolve depending on technological advancements to gradually go beyond energy production and include other subparts in the value chain such as transport, storage or distribution of low-carbon energy. In accordance with the criteria set out in article 12(2) of the European Commission’s Delegated Regulation (EU) 2020/1818(21) (EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks), BNP Paribas is not excluded from benchmarks aligned with the Paris Agreement. Validation of BNP Paribas’ transition plan The transition plan was approved by BNP Paribas’ Board of directors on February 25th, 2025. 1.bMaterial impacts, risks and opportunities and their interaction with strategy and business model Reminder of the material climate impacts, risks and opportunities for the Group Through the double materiality exercise carried out by the Group and described in chapter 7.1.1. General Information section 3a. Description of the process to identify and assess material impacts, risks and opportunities, BNP Paribas has identified several material impacts, risks and opportunities (IROs) related to climate. Material impacts related to climate change mitigation and relating to BNP Paribas’ business activities: Indirect climate impacts, through the financing of greenhouse gas-emitting customers. Material risks related to adaptation to climate change and relating to BNP Paribas’ business activities: Credit risks resulting from the intensification of acute and chronic extreme weather events (droughts, heat waves, floods, etc.) Material risks related to climate change mitigation and relating to BNP Paribas’ business activities: Credit risks resulting from stranded assets and/or the decline in activity in certain sectors exposed to transition risks; Reputational risks resulting from accusations of greenwashing and the financing of high-greenhouse gas-emitting sectors. Material opportunities related to climate change mitigation and relating to BNP Paribas’ business activities: Opportunities related to the offer of sustainable products and services that support the transition of customers to a low-carbon economy in all sectors. Material opportunities related to climate change mitigation and relating to BNP Paribas’ Operational Scope: The reduction of carbon emissions within the Group’s operational scope can lead to opportunities, and particularly a reduction in costs, an image gain and participate in employee awareness. Correspondence table summarising the links between material IROs, policies, actions, metrics and targets ➤TABLE NO. 7: SUMMARY OF THE LINKS BETWEEN MATERIAL IRO, POLICIES, ACTIONS, METRICS AND TARGETS Category Title of the material IRO Policies Actions Metrics and targets Impacts Greenhouse gas emissions by the Group’s customers Strategic Plan Sectoral Policy – Oil and Gas Sectoral policy – Mining industry Sectoral Policy – Coal-fired Power Generation Sectoral policy – Nuclear energy Reduction of financed emissions in intensity or absolute value in the most emitting sectors Roll-out of the ESG Assessment Launch of ESG Assessment integration in KYC(1) process Monitoring Exclusion GHG emissions on the scope of commercial activities 2025 and 2030 targets in the most GHG-emitting sectors (see section 3.a Group’s metrics and targets related to its impact on climate change) Risks Credit risks arising from physical risks Risks Credit risks arising from transition risks Risks Reputational risks Opportunities Financing the low-carbon transition Supporting its clients in the transition to a low-carbon economy (indicator 8 of the CSR dashboard) EUR 200 billion in financing in 2025 Opportunities Reduction of the Group’s direct GHG emissions Energy Management of Buildings Business Travel Policy Initiatives on the operational scope to reduce energy costs, raise awareness and mobilise all employees with the Green Company For Employees programme The Group’s direct GHG emissions 2025 target: ≤ 1.85 tCO2e/FTE KYC: Know Your Customer. 1.cDescription of the resilience of the Group’s strategy and business model to climate risks BNP Paribas regularly assesses the resilience of its strategy and business model to climate-related risks, particularly in the context of the stress tests requested by the ECB and the EBA, as well as annually, within the Internal Capital Adequacy Assessment Process (ICAAP), over a 30-year horizon, as recommended in the ECB’s ICAAP Guide. Climate stress tests contribute to the analysis of the materiality of risk factors and the anticipation of their expected evolutions. They also help anticipate clients’ financing needs to address their adaptation challenges. The Group’s accounting provisioning and economic capital calculation are adjusted based on stress tests to include material climate risk factors' effects. Climate stress tests also contribute to part of the Group’s risk appetite metrics and are used to set their alert thresholds. Emission intensity targets are considered as a commitment to follow (risk appetite metrics) in balance sheet projections and are combined with risk concentration and profitability outlook metrics. The strategy also feeds back into stress tests – sector policies applied or given business priorities that influence balance sheet dynamics. An example of indicator is the monitoring of the exposure percentage subject to high flood risk The Group takes into account the stress tests' results into its strategy by periodically presenting them to the Group’s General Management and to the Internal Control, Risk Management and Compliance Committee (CCIRC) of the Board of directors and by integrating climate risk into the calculation of internal capital. Presentation of these results is on request if deemed necessary depending on the sector. This highlights the fact that the climate scenario analysis system is agile enough to respond to specific needs not included in ICAAP tests or requiring further investigation. For instance, this was the case for the residential real estate sector, where stress tests related to ESG and climate change issues were conducted and presented to the Risk and Development Policy Committee (RDPC(22)) which validates the development plan and underlying risk profile of a sector or an activity. In addition, climate transition indicators and associated performance indicators have already been integrated into the Group’s Risk Appetite Statement(23) (RAS). Furthermore, improving BNP Paribas’ stress testing infrastructure for a more comprehensive consideration of ESG factors is an ongoing process and a clearly defined priority for the Group. Besides the internal exercises and processes mentioned above, BNP Paribas participates in other stress tests, leveraging its climate scenario analysis infrastructure, particularly to serve local needs. In this context, during 2024, central teams supported the Hong Kong branch in conducting voluntary climate stress tests organised by the Hong Kong Monetary Authority. This exercise notably allowed the Group to: enrich the existing modelling through exchanges with local business teams, and identify data that can be used for future system enhancements; develop an innovative approach for generating physical climate scenarios based on imposed historical events (historical typhoons in this case); expand the impact assessment to unsecured exposures; model interest margins distortions due to climate transition's risks and opportunities. It should be noted that, to date, compared to climate physical risks(24), the risk factor related to climate transition could impact banks’ cost of risk, particularly in the event of a delayed transition. If the implementation of climate change mitigation policies were delayed, it would lead to a more abrupt and costly transition after 2030 to limit global warming, due to the need to reduce greenhouse gas emissions at a faster pace from a higher level. Annual stress test under the ICAAP The ICAAP includes the analysis of the consequences of climate scenarios on the Group’s credit, market and operational risks. Credit risk Since 2021, BNP Paribas has significantly enhanced its stress testing infrastructure for climate risk factors, particularly by leveraging the achievements delivered through the preparation of ECB’s 2022 climate stress test and the 2023 Internal Capital Adequacy Assessment Process (ICAAP), as well as by improving the risk identification process. Building on the progress made, BNP Paribas was able to complete its 2024 ICAAP with: three long-term transition risk scenario analysis; a more comprehensive analysis of pluvial and riverine flood risk scenarios analysis. The climate stress testing process is based on several internal and external inputs at different levels of granularity. Internal data are those related to BNP Paribas’ portfolios included in the stress test perimeter: for transition risk, information at client and facility level, and specific ESG data such as greenhouse gas emissions and EPC(25), which can be estimated following the Partnership for Carbon Accounting Financials (PCAF) methodology for greenhouse gas emissions, and the distribution of EPC by country; for physical risk, information on commercial and residential real estate exposure at the client and asset level, usually for stress tests, and specific data, including the location, which can be approximated in case of missing addresses by postcodes. External data are related to macroeconomic information required for projections. They are collected at the geographical and sectoral level when available. Extension to the appropriate granularity for stress tests can be achieved, particularly for transition risk, via the general equilibrium model(26): certain financial statements indicators are estimated at the country and sector level conditionally to the climate scenarios analysed. For physical risk, estimated asset damage related to riverine and pluvial flood assumptions under the RCP 8.5 scenario(27) is collected from an external provider based on the geolocation of BNP Paribas’ assets. Thus, the following sources of uncertainty are related to climate stress testing processes: inherent uncertainty in modelling processes: the statistical model used aims to estimate potential losses conditionally to future assumed perspectives in climate scenarios and, therefore, a certain level of uncertainty is inherent in these models. However, measuring and monitoring model performance ensures a certain level of confidence in the estimation for internal and external models (damage projections); data approximation in case of missing data; climate scenarios analysed on the basis of climate projection models and macroeconomic assumptions; assumptions made on the evolution of BNP Paribas’ portfolio exposure and on the sector distribution, notably for long-term projections. 2024 ICAAP test scenario and scope Transition risk resilience BNP Paribas tested its corporate portfolio against three transition scenarios in 2024, instead of one in 2023 ICAAP. The IAM REMIND(28) below 2°C scenario, the delayed transition scenario, and current policies for which the NGFS (Network for Greening the Financial System) provided conditional pathways to both macroeconomic and climate variables at the end of 2022; The scope of the analyses is gradually being broadened and now covers companies from several entities and business lines: Corporate & Institutional Banking (CIB), Commercial & Personal Banking in France, Commercial & Personal Banking in Belgium, Commercial & Personal Banking in Italy and Commercial & Personal Banking in Luxembourg, thus reflecting the majority of BNP Paribas’ corporate exposures. Indeed, these entities are potentially the most impacted by the climate transition risk concerning the economic adaptation of companies towards a low-carbon world. Transition risk stress tests are conducted at 2050 horizon. There is no distinction between short, medium and long term. The methodology used for the dynamic projection of the Group’s balance sheet on the analysed perimeter (non-financial corporate portfolio) takes into account several structuring assumptions regarding economic growth under conditions of transition to a climate-neutral economy and the alignment of assets and economic activities with the transition, including: balance sheet growth in line with countries’ GDP growth assumptions; the Group’s support to its clients in their transition plans; a sectoral breakdown of the balance sheet integrating clients’ financing needs to complete their transition plans, resulting in increased concentration of exposures in sectors requiring significant green investment efforts; the Group’s climate policy commitments in the analysis of the NGFS “Hot House World” scenario, including the consideration of the Group’s eventual progressive withdraw from certain sectors incompatible with the transition. Physical risk resilience As part of the ICAAP 2024, BNP Paribas tested its current real estate portfolio (Italy, Belgium, France, Luxembourg and Poland) against pluvial and riverine flood risk under RCP 8.5 conditions by 2085 assuming basic macroeconomic conditions. The Group took the assumption of a deterioration in collateral values due to damage impacts and a broad revaluation of properties, reflecting higher insurance costs. There is no time horizon for physical risk scenarios (immediate impact of a given event). ICAAP 2024 exercise results Transition risk resilience By 2050, under the conditions of the tested scenarios, the evolution in energy and carbon prices would significantly impact the economic sectors currently considered the most carbon emissive. BNP Paribas’ support to its clients in their energy transition could therefore result in increased exposure to these emitting sectors, hence a potential increase in the cost of risk, especially in the event of a disorderly transition. Physical risk resilience The scenario’s impact is mainly observed through the shock in asset value driven by higher insurance cost and damages. Through various simulations conducted, the cost of risk would be particularly sensitive to assumptions of insurance premium level and the potential increase in default probabilities for stranded assets. It should be noted that the impact in France is significantly reduced thanks to the guarantee provided by Crédit Logement on residential real estate. For commercial real estate, the natural disaster fund scheme is also a diversification factor, thus reducing risk. Market risk Various climate supervision tests conducted on market activities have shown the adequacy of the existing analysis infrastructure. In addition, BNP Paribas participates in the ISDA(29) Trading Book Climate Scenario Working Group, which aims at providing a common view on short-term climate scenarios for the trading book. In February 2024, this working group published a white paper(30) with three different scenarios: transition risk scenario; physical risk scenario; a combined scenario of the two previous ones, depending on the asset class considered. Operational and reputational risk Operational risk losses were calculated based on the selection of potential incidents identified as driven partially or fully by climate change: 23 potential incidents for physical risk were identified. The projections are made over a one-year horizon. Correlation effects with other potential incidents are considered in the measurement of climate change-related loss and are not considered independently of each other. Two types of approaches can be considered to measure the impact of these identified potential incidents: stand-alone approach: calculation of the aggregate loss generated solely by these potential incidents, considering correlation effects; contributive approach: calculation of the contribution of these potential incidents to the overall level of operational risk losses. This approach is more appropriate as it measures the impact of climate risk on the operational risk borne by the Group. The levels of operational risk loss from climate-related events obtained by these two approaches appear consistent with the analysed incidents. It should be noted that for BNP Paribas, remote working agreements in place are a source of operational risk reduction. Reputational risk is addressed by several BNP Paribas business lines, that have designed related scenarios in collaboration with the RISK and Product Strategy Marketing teams, including Asset Management, CPBS, CIB Global Markets and CIB Global Banking EMEA. Impacts are quantified based on expert judgment and the exercise is part of the Group Risk Identification process (Risk ID). 2.IMPACTS, RISKS AND OPPORTUNITIES MANAGEMENT 2.aPolicies related to climate change mitigation and adaptation Policies related to the Group’s financing and investment activities BNP Paribas has established a set of policies to frame its activities and business relationships. The Group’s financing and investment activities are governed by eight sectoral policies, four of which are directly related to climate change: coal-fired power generation; oil & gas; mining industry; nuclear energy. These policies, by limiting the Group’s exposure to the most greenhouse gas-emitting sectors, also reduce its transition risks. The aforementioned policies are continuously updated by the Group’s interaction with its stakeholders, including investors, NGOs, etc. (see section 7.1.1 General information, 2.b Interests and views of Stakeholders) and by best practices established by international or sectoral organisations. Policies related to the Group’s operational scope BNP Paribas adopted a methodological approach of continuous improvement and recognises the following hierarchy of principles for action against climate change: Energy sobriety: adapting uses to reduce demand; Energy efficiency: producing, transporting and using energy more efficiently; Use of low-carbon energy, particularly renewable energies; Purchase of voluntary carbon credits equivalent to residual emissions. The Group has defined policies related to the energy management of buildings and business travel, for example, which contribute to reducing the carbon footprint of the Group’s operations. In addition, to achieve its commitment to reduce the environmental footprint of its direct operations, the Group relies on Green Company For Employees, an internal programme, which accelerates the reduction of BNP Paribas’ direct environmental footprint by giving a central place to the participation of all employees. Finally, the Group has adopted a Sustainable Sourcing Charter(31) provided to all its suppliers and subcontractors to ensure that its environmental requirements and principles are respected, particularly regarding greenhouse gas emissions. This initiative is joint with several French players in the Banking and Insurance sector who wish to involve their suppliers in implementing vigilance measures as part of their CSR approaches. Summary of the Group’s policies related to climate change ➤TABLE NO. 8: SUMMARY OF GROUP POLICIES RELATED TO CLIMATE CHANGE Policies Description of the content of the policy Description of the scope of the policy or its exclusions Description of the most senior level of the organisation accountable for implementing the policy Interaction with stakeholders Sectoral Policy – Oil and gas The document presents the commitments made by the Group in its financial relationship with companies in the oil and gas sector. It provides a framework for financing arrangements, defines criteria for granting funding credit and specifies sector-related exclusions. This policy applies to all BNP Paribas entities and covers all financial products and services provided by the Group. Heads of CIB, CPBS and IPS divisions. Publication on the BNP Paribas website. A copy of this policy is also systematically provided to existing and potential clients as part of the KYC process or for discussion about the offering of any financial service. Sectoral policy – Mining industry The document presents the commitments made by the Group in its financial relationship with companies in the mining sector. It provides a framework for the terms and conditions for financing a project or granting credit, the criteria for entering a relationship, and exclusions (geographies, projects related to thermal or metallurgical coal extraction, etc.). This policy applies to all BNP Paribas entities and covers all financial products and services provided by the Group. Heads of CIB, CPBS and IPS divisions. Publication on the BNP Paribas website. A copy of this policy is also systematically provided to existing and potential clients as part of the KYC process or for discussion about the offering of any financial services. Sectoral policy – Coal-fired power generation The document presents the commitments made by the Group in connection with the financing of companies in the coal-fired power generation sector. Particularly, it includes the timetable for the complete exit from thermal coal financing. This policy applies to all BNP Paribas entities and covers all financial products and services provided by the Group. Heads of CIB, CPBS and IPS divisions. Publication on the BNP Paribas website. A copy of this policy is also systematically provided to existing and potential clients as part of the KYC process or for discussion about the offering of any financial service. Sectoral policy – Nuclear energy The document presents the commitments made by the Group in connection with the financing of companies in the nuclear energy sector. It specifies the rules and evaluation criteria relating to the financing of nuclear power plant projects and in connection with financial services for companies in the sector. This policy applies to all BNP Paribas entities and covers all financial products and services provided by the Group. Heads of CIB, CPBS and IPS divisions. Publication on the BNP Paribas website. A copy of this policy is also systematically provided to existing and potential clients as part of the KYC process or for discussion about the offering of any financial services. Sustainable Sourcing charter The document presents the reciprocal ESG commitments made by the Group and its suppliers. The entire BNP Paribas Group. Head of Procurement & Performance. Distributed to the Group’s suppliers and buyers. Publication on the BNP Paribas website. IMEX Environmental and Energy Policy (internal document) The document presents, in particular through the Green Building initiative, BNP Paribas’ approach to the environmental management of the Group’s premises (sustainable improvement of the environmental impact of operations, maintenance and management of premises works, etc.). The entire BNP Paribas Group. Head of Group Operating Real Estate (IMEX). All real estate and CSR experts in France and abroad are involved in contributing to commitments through the deployment of action plans aimed at reducing the carbon impact of our buildings. Service providers, lessors of rental addresses, as well as internal and external occupants are made aware of and involved in the success of this policy. BNP Paribas Group Travel Policy (internal document) This document describes the rules to be followed by employees in the management of their business travel, particularly by encouraging them to reduce their environmental footprint. The entire BNP Paribas Group. Head of Procurement & Performance (Purchasing Department). Published and available online for all Group entities. These policies help reduce the physical or transition risks incurred by the Group while minimising its impact on the most greenhouse gas-emitting activities, projects and sectors. They guide its financing and investments towards opportunities arising from activities and projects compatible with the 2015 Paris Climate Agreement. 2.bSynthesis of actions related to climate change policies The implementation of BNP Paribas’ commitments is reflected through a combination of multiple and diverse actions across all its operational entities. The Group measures the effectiveness of its actions in terms of reducing the greenhouse gas emissions of its counterparts and its operational scope: BNP Paribas continues to roll-out the ESG Assessment which, through a better knowledge of its counterparties and their impacts on climate change, allows the Group to better assess its risks and impacts and better support clients in their transition; the Group measures the effect of its actions by tracking annually its credit portfolio's emission intensity in nine particularly greenhouse gas-emitting sectors, oil and gas sector absolute emissions, and the financed emissions published within the framework of ESG Pillar 3 framework; BNP Paribas supports its clients’ transition to a low-carbon economy through a range of sustainable products and services. At the end of 2024, for the second consecutive year, BNP Paribas is the world leader in green bonds and loans(32), according Dealogic; in parallel, BNP Paribas is implementing measures allowing to reduce its greenhouse gas emissions within its operational perimeter. 2.cActions related to the management of climate impacts and risks The implementation of sectoral policies is complemented by the establishment of monitoring and exclusion lists, depending on the level of deviation from the policy, particularly in the event of non-compliance with climate-related criteria. Companies under monitoring are subject to engagement measures by the Group to sustainably modify their practices and reduce their ESG risks, particularly those related to climate change. For companies under exclusion, the Group prohibits any financing or investment relationship. Assessing clients’ climate performance The ESG Assessment is used by bankers within the Corporate & Institutional Banking (CIB) and Commercial, Personal Banking & Services (CPBS) divisions to have a holistic view of the client's ESG profile. It provides insights into how its clients approach ESG topics, including their performance on climate transition. It contributes to an analysis allowing the Group to direct its financing towards clients and projects that align on its decarbonisation trajectory. After deploying the ESG Assessment for large corporate clients, the Group continued its deployment in 2024 to financial institutions and companies with revenues exceeding EUR 50 million selected according to risk criteria. For more details, see chapter 5 Risks and Capital Adequacy – Pillar 3, Annex 5: Environmental, social and governance risks. Credit portfolio alignment BNP Paribas has taken significant measures to align its credit portfolio with a trajectory compatible with the 2015 Paris Climate Agreement, by implementing actions in the most greenhouse gas-emitting sectors. For each sector, BNP Paribas has based its approach on a reference scenario compatible with this commitment, having the best quality guarantees and recognised by experts, whether it is the IEA(33) or a sectoral scenario when it appears more relevant (aluminium or real estate, for example). To operationally integrate its commitment to align its credit portfolios with the 2015 Paris Agreement’s objectives, the Group is gradually deploying during credit committees and to all concerned bankers and decision-makers, a set-up to ensure client trajectory analyses’ appropriation and systematic integration in regards to the Group’s portfolio trajectory. This set-up relies on making sectoral dashboards and client information sheets available, on sharing automatically this information in the distribution tools and on deploying trainings. By focusing its financing on projects or companies that contribute to the decarbonisation levers of sectors (new technology, electrification, etc.), the Group is steering the decarbonisation trajectory of its financing portfolio to achieve its targets. The Oil and Gas sector The Group is implementing the following actions: the end of financing purely dedicated to the development of new oil and gas fields regardless of the financing method (project financing, RBL(34), FPSO(35)); the phasing-out of financing for non-diversified oil upstream players and intended to support oil production (corporate financing or RBL); the reduction of general-purpose lending allocated to upstream oil. In 2024, the Group pursued its actions, which resulted in a EUR 0.9 billion decrease in its credit exposure to oil exploration and production (from EUR 3 billion as of 31 December 2023 to EUR 2.1 billion as of 31 December 2024) and a EUR 0.8 billion decrease for gas exploration and production (i.e. EUR 2.7 billion as of 31 December 2024). As of 31 December 2024, the oil and gas sector's financed emissions, as monitored by the Group in its alignment targets, amounted to 9.5 MtCO2e, a decrease of 40% compared to 31 December 2023 and 65% compared to 30 September 2022. The main decarbonisation lever identified for the Group is the reduction of its exposure to the upstream oil and gas sector. The Power Generation sector The emission intensity of the power generation credit portfolio amounted to 129 gCO2/kWh(36) as of 31 December 2024, compared to 148 gCO2/kWh as of 31 December 2023, reflecting the decrease in the share of coal and oil in the electricity mix of the Group’s clients, these two energy sources being the most CO2 emitting, as well as the sharp increase in renewable energy financings. In addition, the Group calculates and monitors the electricity mix in terms of installed capacity in its power generation portfolio. The electricity mix financed by BNP Paribas in 2024 contains significantly more renewable capacity (70% vs. 65%) and shows a continued reduction in the share of coal in the capacity mix (4% vs. 5%) compared to 2023. The main decarbonisation levers that BNP Paribas takes into consideration in managing the sector’s credit portfolio are the financing towards low-carbon energies, mainly renewables, the withdrawal from the coal sector, and the reduction in the use of fossil fuels for power generation. The Automotive sector As of 31 December 2024, the share of electrified vehicles(37) in the powertrain technology mix of the BNP Paribas’ financed automotive manufacturing portfolio continued to increase, albeit at a slower pace, reaching 16% as of 31 December 2024 compared to 15% as of 31 December 2023. The portfolio’s emission intensity decreased by 6 gCO2/km WLTP(38) compared to 2023, to reach 145 gCO2/km as of 31 December 2024. This decrease is due to the combined effect of the share of electric vehicles in the portfolio and the reduction of combustion engines' average emissions. The main client decarbonisation lever that BNP Paribas takes into consideration in managing the sector’s credit portfolio is the increase in the electrification of the vehicles produced. The Steel sector The emission intensity of BNP Paribas’ steel portfolio remained stable on 31 December 2024 (1.5 tCO2/tonne of crude steel) compared to December 2023. This stability is linked to the fact that part of the clients’ new production capacity, at lower intensities (e.g. direct reduction - electric arc furnaces), is expected to become operational starting from 2027. BNP Paribas’ steel portfolio emission intensity remains below the global average emission intensity of 1.8 tCO2/tonne of crude steel. The main client decarbonisation levers that BNP Paribas takes into consideration in managing the sector’s credit portfolio are electrification (replacement of blast furnaces with electric arc furnaces), the use of low-carbon hydrogen or the capture of residual emissions from emitting steel mills. The Aluminium sector The emission intensity of BNP Paribas’ aluminium portfolio decreased by 9% as on 31 December 2024 (5.3 tCO2e/tonne of aluminium) compared to 31 December 2023 (5.8 tCO2e/tonne of aluminium). This is due to increased exposure to low-emission players (for example, using electric arc furnaces). This intensity remains below the global average (11.2 tCO2e/tonne of aluminium in 2023), as the Group’s financings are mainly granted to clients operating in Europe and the Middle East, where the energy mix presents limited exposure to coal. The main client decarbonisation levers that BNP Paribas takes into consideration in managing the sector’s credit portfolio are recycled aluminium in the secondary production and, in primary production, the use of low-carbon electricity. The Cement sector Based on the latest client data available, the emission intensity of the cement portfolio at the end of 2023 stood at 0.63 tCO2/tonne of cementitious product, leading to a 2% year-over-year reduction. The average carbon emission has decreased due notably to the Group’s clients’ actions. The main levers of client decarbonisation that BNP Paribas takes into consideration in managing the sector’s credit portfolio are energy efficiency solutions (furnaces modernisation, waste heat recovery) and optimisation of the clinker to cement ratio(39), in the short and medium term. Carbon capture and storage solutions will be an important lever for residual emissions from this sector. The Aviation sector As of 31 December 2023, the sector’s emission intensity stood at 904 gCO2e/RTK(40), down by 5% compared to 31 December 2022. This result reflects better aircraft load factors and BNP Paribas’ financing of more efficient new generation aircraft. The main levers of client decarbonisation that BNP Paribas takes into consideration in managing the sector’s credit portfolio are an enhanced operational efficiency (air traffic optimisation), fleet renewal and sustainable aviation fuels. In the longer term, projects for new propulsion systems (hydrogen, electric or hybrid) will play an important role. The Shipping sector As of 31 December 2023, the sector’s emission intensity stood at 8.2 gCO2e/dwt.nm(41), a decrease of 1% compared to 31 December 2022. This result reflects better climate performance of the new vessels financed by BNP Paribas. The main client decarbonisation levers that BNP Paribas takes into consideration in managing the sector’s credit portfolio are fleet renewal and retrofitting(42), speed reduction and alternative fuels with lower emissions. The Commercial Real Estate sector As of 31 December 2023, the emission intensity of the commercial real estate sector stood at 27.7 kgCO2e/m2, a 2% decrease compared to 31 December 2022. This result mainly reflects a reduction of real estate client’ emission intensity in the unsecured portfolio. The main decarbonisation drivers of clients that BNP Paribas takes into consideration in managing the sector’s credit portfolio are the reduction of energy consumption in buildings (energy efficiency improvements) and a larger proportion of low-carbon energies used in the energy mix. The Residential Real Estate sector At the end of 2023, the average emission intensity of the residential real estate sector in the portfolios of the Group's three main markets (France, Belgium and Italy), i.e. nearly 94% of the Group’s credit exposure in the sector, amounted to 35.0 kgCO2e/m2/year, compared to 35.5 kgCO2e/m2/year at the end of 2022. Average intensities were decreasing in all three markets: 19.7 kgCO2e/m2 in France, a 2.6% decrease; 58.4 kgCO2e/m2 in Belgium, a 2.1% decrease; 33.1 kgCO2e/m2 in Italy, a 3.7% decrease. These decreases can be related to the first effects of My Sustainable Home initiative. While each country’s energy mix remains the main factor in decarbonisation, BNP Paribas supports its clients by offering them products and services that contribute to the sector’s gradual transition (see section 2d. Group actions related to climate change opportunities). The Agriculture sector Agriculture has the particularity of being at the heart of environmental (greenhouse gas emissions, water consumption, deforestation, etc.) and social challenges. It is both highly vulnerable to climate change and a major lever for solutions (renewable energy, sustainable agroecological practices, carbon capture in soils). BNP Paribas is committed to developing its employees’ skills, as well as products and services to promote the transition to a more sustainable agriculture. The Group has set up a centre of expertise for the agri-food sector, the hub BNP Paribas International Food & Agri, hosted within the BNP Paribas Bank Polska entity. This centre has developed the “Agronomist.pl” platform, a toolkit to support the agroecological transition of producers and agri-food companies. It is enriched by experts and specialised analysts and allows the bankers to dialogue with agricultural producers and agri-food companies. This expertise is shared within the BNP Paribas Group through a dedicated Sustainable Agriculture community that brings together all the teams in charge of agriculture in the European markets. The main decarbonisation levers are as follows: supporting the development of the biogas and biomethane market and digesters; supporting the development of the agrivoltaics and on-farm solar market; supporting the transition to sustainable agricultural practices(43). 2.dGroup actions related to climate change opportunities Actions related to commercial opportunities According to the World Energy Outlook published by the International Energy Agency in 2024, global investments in the energy sector are expected to exceed USD 3 trillion for the first time in 2024. About USD 2 trillion is expected to be spent on clean energy technologies and infrastructure, almost twice the amount dedicated to new oil, gas and coal supply combined. In the NZE scenario, low-carbon energies will represent more than 95% of the energy investments by 2035, for a total of USD 5.2 trillion. To meet these challenges and achieve these changes, massive investments are needed from companies, institutional investors and the public sector. By supporting its clients transition to a low-carbon economy, BNP Paribas is convinced that it can make a positive impact on a more sustainable economy, while ensuring a solid long-term performance. These opportunities are reflected in BNP Paribas’ strategic objectives, particularly its commitment to supporting its clients in their transition to a low-carbon economy, notably through the action of the Low-Carbon Transition Group, described in the 2.e Resources dedicated to the transition section. The Group has set a target, included in the CSR dashboard (presented in chapter 7.1.1 General Information, 2.a Strategy, business model and value chain) of EUR 200 billion of products and services (credits, bonds, private placements, financial advisory, etc.) to support its clients’ low-carbon transition by 2025. At the end of 2024, this amount reached EUR 179 billion. The Group offers a range of banking and non-banking solutions to support its clients in their energy and ecological transition. These offers cover a range of climate issues: reducing energy consumption, decarbonising or financing for greenhouse gas emissions reduction projects. The Group relies on specialised bankers in advisory and sustainable finance, notably the Low-Carbon Transition Group and the Low-Carbon Transition for MidCaps and SMEs operating in all sectors and geographies. Particularly, the following sectors are major opportunities: energy production: development of new low-carbon energy capacities and participation in financing future technologies such as renewable energy production (wind, solar, geothermal, hydroelectric, marine energy, methanisation); decarbonising production: supporting clients in their overall energy and ecological transition strategy, covering efforts to reduce their energy consumption, decarbonise it and reduce their greenhouse gas emissions; sustainable mobility: supporting and financing companies and mobility players: public transports, manufacturers, etc. For real estate acquisition and energy renovation projects for individuals, the Group has developed services and solutions to support its clients in their projects. Thus, within the CPBS division, the My Sustainable Home initiative structures the approach of operational entities, around four main levers: raising awareness and advising clients on the realisation and collection of EPC (Energy Performance Certificates), notably through a collection obligation when granting a new eligible mortgage; promoting the purchase of energy-efficient properties, through favourable financing conditions; meeting sectoral energy renovation needs, via loans at advantageous rates or backed by public aid programmes; developing non-financial services, through partnerships to support end-to-end energy renovation projects, from framing the improvements to post improvements EPC to verify the impact. To support the decarbonisation of its clients’ mobility, the Group offers: adapted financing, through the commercial banks, Arval and BNP Paribas Personal Finance; selected vehicles, Arval and BNP Paribas Personal Finance offering a wide catalogue (with new, recent or used references); personalised insurance, with BNP Paribas Cardif. Actions related to operational scope emissions BNP Paribas takes action to reduce its direct environmental footprint, aiming for exemplary and raising employee’s awareness, thus contributing to the energy transition the Group is engaging with its clients. BNP Paribas has measured its energy consumption and greenhouse gas emissions in its operational perimeter (scope 1, scope 2 and scope 3 for business travel) since 2012, and has gradually reduced them by cutting down energy consumption on its premises, using less energy-intensive IT equipment and regulating business travel, as well as increasing the use of low-carbon energies. The results of the energy-saving plans and energy investment plans continue to bear fruit with a decrease in energy consumption in buildings. In 2024, total energy consumption was 778 GWh, a 52 GWh(44) ,a 6.2% decrease, compared to 2023 (830 GWh), with 27.2% coming from nuclear sources and 42.7% coming from renewable sources. The renewable part comes either from the purchase of renewable electricity certificates called Power Purchase Agreements (PPAs), or from the direct consumption of renewable energy produced by the Group’s buildings. Renewable energy consumption thus accounted for 33.3% of total energy consumed. This share of renewable energy reflects the Group’s voluntary actions and could be increased by considering the share of renewable energy specific to each national energy mix (about 10% of the energy consumed). These measures help to limit the CO2 emissions associated with the Group’s electricity consumption, with a reduction accounted for in the market-based(45) approach. These amounted to 192,431 tCO2e in 2024, a reduction of 71,243 tCO2e over the year compared to the location-based(46) calculation. The Group real estate operating function (IMEX), through the Green Buildings programme, coordinates in France and internationally an approach to improve site operations to sustainably reduce the Group’s environmental footprint. Thus, the carbon footprint reduction plan for the real estate portfolio in France is based on three main levers: continuous improvement of the building energy performance through a monitoring tool that centralises the energy consumption data for 90% of the portfolio; investment plans and works to modernise and improve installations' efficiency (heat pumps, LED lighting, façade insulation, roof renovation, etc.); raising employees’ day-to-day awareness, adapted to the uses of buildings (offices, bank branches, data centers). The French Sustainable Digital programme has defined ten principles attached to the Group’s IT Charter that apply to the entire IT functions worldwide. Various levers are exploited: implementing a methodology for calculating IT environmental footprint according to the latest international standards in force; rationalising the equipment (data center's infrastructure and employee tools) aiming for energy efficiency on the one hand, and sobriety on the other hand through the pooling of equipment and infrastructure; raising awareness and training IT teams on environmental issues. 2.eResources DEDICATED TO THE Transition Beyond the tools and the development of products and services that enable the Group to steer its climate trajectory and support its clients’ transition, BNP Paribas relies on a set of dedicated teams to lead the transition and accelerate the integration of climate considerations across all Group activities. The Company Engagement Department, which includes the teams in charge of CSR, is responsible for implementing BNP Paribas’ CSR strategy. Leveraging its experts in sectors with significant climate impact (oil and gas, automotive, agriculture, etc.) and across the CSR network within the Group’s entities, it supports the business lines and contributes to manage ESG risks in connection with the RISK Function. It is also in charge of sharing CSR progress with the Communication Department, and liaising with certain key stakeholders (NGOs, investors). The CSR Department operates within the entities, business lines, functions and subsidiaries to facilitate the deployment of policies and ESG Assessment throughout the Group, with over 300 employees dedicating all or most of their time to CSR topics. The Low-Carbon Transition Group, created in 2021, is a global platform bringing together an ecosystem of nearly 250 bankers dedicated to supporting international clients, corporates and financial institutions, in accelerating their transition to a sustainable and low-carbon economy. A continuum of banking and non-banking solutions is therefore provided for the economy’s decarbonisation, particularly in the energy, mobility and industry sectors. It develops specific expertise to support the development of new value chains such as batteries, green hydrogen and low-carbon fuels, as well as CO2 sequestration. At the same time, the Low-Carbon Transition for MidCaps and SMEs (LCTM) is a team dedicated to this client segment and whose aim, together with CPBS’ sales teams, is to accelerate the support for clients’ sustainable transition and to contribute to the management of the Group’s credit portfolio in line with its climate commitments. Finance, RISK and ALM Treasury functions have created a joint team, Stress Testing & Financial Simulations (STFS), in charge of the deployment of stress testing activities, including climate stress testing and Internal Capital Adequacy Assessment Process (ICAAP). The Climate Analytics and Alignment team consists of employees from Group Company Engagement and CIB Global Banking EMEA. It develops and deploys sectorial portfolio alignment methodologies, in accordance with industry standards, and calculates the Group’s credit portfolio metrics which allow the portfolio monitoring in the most greenhouse gas-emitting sectors and external reporting. Finally, the Sustainability Academy, launched at the end of 2022, is an evolving platform that trains the Group’s employees on ecological transition and climate change issues, enhancing their skills in this area. Close to 133,000 employees have completed at least one training course since its creation. 3.METRICS AND TARGETS 3.aGroup’s metrics and targets related to its impact on climate change Targets and metrics on credit portfolios BNP Paribas has decided to gradually align its credit portfolio with the objectives of the Paris Agreement. In 2021, the Group committed to defining intermediate alignment targets for the most greenhouse gas-emitting sectors that are compatible with the net zero emission (NZE) scenarios in 2050, particularly those of the International Energy Agency (IEA). For each sector, the Group has chosen a reference year that is no earlier than two years at the time of setting the targets, i.e. between 2020 and 2022. Since 2022, the Group has progressively defined greenhouse gas emissions metrics, for ten sectors in its portfolio. Nine sectoral targets are presented in the following table. ➤TABLE NO. 9: SUMMARY OF BASELINES, EMISSIONS AND TARGETS IN INTENSITY AND ABSOLUTE VALUE OF THE MOST EMITTING SECTORS Methodology Targets and Baseline Emission scope Value chain considered GHG considered Scenario Units Baseline [Year as of 31/12 unless otherwise stated] N [Year as of 31/12] Target [Year as of 31/12] Oil & Gas - (upstream) - IEA NZE 2050 Upstream credit exposure in billions of euros Oil: 5.0 Gas: 5.3 [Q3 2022] Oil: 2.1 Gas: 2.7 [2024] Oil: ≤ 1 (-80%) Gas: ≤ 3.7(-30%) [2030] 1, 2 and 3 (upstream and Refining) CO2 CH4 MtCO2e 27.3 [Q3 2022] 9.5 [2024] ≤ 8.2(-70%) [2030] Power generation 1 (production) CO2 IEA NZE 2050 gCO2/kWh 208 [2020] 129 [2024] ≤ 146(-30%) [2025] Automotive 3 (car manufacturer) CO2 IEA NZE 2050 gCO2/km WLTP 183 [2020] 145 [2024] ≤ 137(-25%) [2025] Steel 1, 2 and partially 3 (iron and steel production) CO2 IEA NZE 2050 tCO2/t crude steel 1.6 [2022] 1.5 [2024] ≤ 1.2(-25%) [2030] Aluminium 1 & 2 (foundry) CO2 PFC IAI(1) 1.5° tCO2e/t of aluminium 6.2 [2022] 5.3 [2024] ≤ 5.6 (-10%) [2030] Cement 1 & 2 (limestone extraction + clinker and cement production) CO2 IEA NZE 2050 tCO2/t of cementitious product 0.67 [2021] 0.63 [2023] ≤ 0.51 (-24%) [2030] Aviation 1 & 3 (cat. 3 for airlines or cat. 13 for leasers) “Well-to-wake” (use of aircraft) CO2 N2O CH4 MPP(2) Prudent scenario gCO2e/RTK 956 [2022] 904 [2023] ≤785 (-18%) [2030] Shipping 1 & 3, cat. 3 “Well-to-wake” (use of ships) CO2 N2O CH4 DNV(3) 1.6°C AER(4) in gCO2e/dwt.nm 8.3 [2022] 8.2 [2023] 5.6 – 6.4 (-32 to -23%) [2030] Commercial Real Estate 1, 2 and where applicable 3 cat. 13 (ownership and operation of buildings) CO2 N2O CH4 fluorinated gases CRREM(5) V2.02 kgCO2e/m2 28.4 [2022] 27.7 [2023] 16.7 – 19.5 (-41 to -31%) [2030] Residential Real Estate 1 & 2 (ownership and operation of buildings) CO2 N2O CH4 fluorinated gases CRREM V2.02 kgCO2e/m2 Group: 35.5 France: 20.2 Belgium: 59.7 Italy: 34.4 [2022] Group: 35.0 France: 19.7 Belgium: 58.4 Italy: 33.1 [2023] - International Aluminium Institute. Mission Possible Partnership. Det Norske Veritas. Annual Efficiency Ratio. Carbon Risk Real Estate Monitor. The metrics presented above include estimates described in Appendix 2: Disclosure of information in relation to specific circumstances. The Oil and Gas sector Since 2023, BNP Paribas has strengthened its ambition to reduce its activity in the oil and gas sector with three 2030 targets. BNP Paribas has committed to reducing: by 80% its upstream oil credit exposure at the end of 2030, i.e. to less than EUR 1 billion by 2030, compared to its exposure of EUR 5 billion at the end of September 2022; by 30% its upstream gas credit exposure over the same period, which was EUR 5.3 billion at the end of September 2022; by 70% its oil and gas financed emissions (exploration, production and refining) over the same period, i.e. a level less than or equal to 8.2 MtCO2e compared to 27.3 MtCO2e at the end of September 2022. This target is more ambitious than the IEA’s NZE scenario, which involves a reduction in oil and gas emissions of 34% between 2022 and 2030. The Group’s financed emissions metric is computed using the following data sources: CO2 and CH4 emissions for scopes 1 and 2 (MtCO2e per year) are taken from Wood Mackenzie for each upstream or refining counterparty; CO2 emissions for scope 3 are calculated based on oil and gas volumes extracted by each counterparty, using data from Wood Mackenzie to which emission factors computed using IPCC(47) 2006 Guidelines for National Greenhouse Gas Inventories and the IEA’s NZE scenario are applied; corporate's equity and debt are consolidated by BNP Paribas based on the average of companies’ three years data. The Power Generation sector The Group has been monitoring the emission intensity of its power generation credit portfolio since 2020. It includes direct emissions (scope 1) from producers, and is measured in grammess of CO2 per kWh. It is calculated using the following data sources: installed capacity by technology and counterparty (in MW) sourced from Asset Impact. This data is used to estimate the portfolio generation capacity mix as well as to compute the portfolio emission intensity; the latest updated capacity factors per technology & implied emission factors per technology sourced from the IEA World Energy Outlook 2023. For this sector, BNP Paribas has set the target of a portfolio emission intensity of less than or equal to 146 gCO2/kWh by 2025, based on the IEA’s NZE scenario. In addition, the Group monitors operational metrics and has chosen to set the following targets for 2025: share of coal in the financed energy mix below 5% by 2025 (reached since 2023); share of renewables in the financed energy mix greater than or equal to 66% by 2025 (70% as of 31 December 2024). The Automotive sector The emission intensity of clients in the sector is measured in grammes of CO2 per kilometre WLTP (tailpipe emissions). The measurement focuses on the scope 3 of car manufacturers. Emission intensity is calculated using the following data sources: the vehicle powertrain technology mix by counterparty (in % of vehicles produced) provided by S&P Global. The produced fleet is segregated across five powertrain mixes: Internal Combustion Engine (ICE), Hybrid, Plug-in Hybrid (PHEV), Battery Electric Vehicles (BEV) and Fuel-Cell vehicles (FC); emission factors per technology from Asset Impact, focusing on tailpipe emissions of new vehicles sold (i.e. excluding current fleet in service) based on average standard CO2 emissions across manufacturer and vehicle type per km driven based on the WLTP standard. For this sector, BNP Paribas has set an emission intensity target of less than or equal to 137 gCO2/km WLTP by the end of 2025, based on the IEA’s NZE scenario. The operational metric tracked by the Group is the share of electrified vehicles in the technology mix of the BNP Paribas’ financed automotive manufacturing portfolio. The target should be greater than or equal to 25% by the end of 2025. The Steel sector BNP Paribas annually calculates the emission intensity of its clients in the steel sector (crude steel) measured in tonnes of CO2 per tonne of crude steel (manufactured from iron ore) and secondary steel (manufactured from recycled steel). The measure includes direct emissions (scope 1), indirect emissions related to energy purchases (scope 2) and to purchases of partially processed raw materials (scope 3) for non-fully integrated players. The preparation of raw materials and the manufacture of cast iron and steel are considered in the value chain. Upstream (iron extraction) and downstream (e.g. finishing stage) activities are excluded. The Group’s emission intensity is estimated using the following data sources: the emission intensity baseline calculated for each furnace based on specific boundaries (raw materials preparation including by third-party providers, i.e. for steelmakers that have subcontracted it, iron and steel production), sourced from the Commodities Research Unit (CRU); 2030 emission intensity: when available, most recent publicly announced emission reduction commitments, or otherwise, by default, the CRU estimates. For this sector, the Group has set a credit portfolio intensity target of less than or equal to 1.2 tCO2/t of crude steel by 2030, based on the IEA’s NZE scenario. The Aluminium sector The emission intensity of clients in the aluminium sector is measured in tonnes of CO2 equivalent per tonne of primary aluminium (manufactured from bauxite). The measure includes direct CO2 and perfluorocarbon (PFC) emissions and (scope 1) and indirect energy purchase emissions (scope 2) from aluminium production (electrolysis). Upstream activities (bauxite mining), alumina manufacturing and downstream activities (e.g. extrusion) are excluded. The Group’s emission intensity is estimated using the following data sources: emission intensity baseline calculated for each aluminium smelter from CRU; 2030 emission intensity: when available, the most recent publicly announced emission reduction commitments, or otherwise, CRU estimates. For this sector, the Group has set a credit portfolio intensity target of less than or equal to 5.6 tCO2e/t of primary aluminium by 2030, based on the International Aluminium Institute (IIA)’s 1.5°C scenario. The Cement sector The emission intensity of clients in the cement sector is measured in tonnes of CO2 per tonne of cementitious product. The measure includes direct emissions (scope 1) and indirect emissions related to the purchase of energy (scope 2). Direct emissions include emissions from alternative fuels but exclude those from biomass. The value chain segment under consideration is limestone production, and clinker and cement production. Upstream activities (extraction of raw materials) and downstream activities (e.g. concrete production) are excluded. The data provided for the reference year are from the end of 2022, with BNP Paribas relying on client data and public commitments arising from the Annual Reports published in 2023. For 2024, this same one-year lag exists (2023 data). For this sector, the Group has set a credit portfolio intensity target of less than or equal to 0.51 tCO2/t of cementitious product by 2030, based on the IEA’s NZE scenario. The Aviation sector The emission scope of the sector includes scope 1 and scope 3’s category 3 for airlines (fuel and energy-related activities that are not included in scope 1 or scope 2) and scope 3’s category 13 for lessors (downstream leased assets). Emissions are measured on a well-to-wake basis, which includes the emissions released during combustion, as well as upstream fuel emissions (which are negative for Sustainable Aviation Fuels). All Kyoto Protocol GHGs (CO2, CH4 and N2O) are in scope. BNP Paribas’ portfolio emission intensity measurement in this sector focuses on the operations of commercial aircraft, whether owned by airlines or lessors, which represents most of CO2 emissions along the value chain. Emission intensity is defined in grammes of CO2 equivalent per Revenue Tonne Kilometre (RTK), with RTK being a unit of traffic measurement corresponding to one metric tonne of payload carried one kilometre. By 2030, BNP Paribas targets a reduction of 18% of its Aviation portfolio emission intensity compared to 2022, representing 785 gCO2e/RTK, in line with the Mission Possible Partnership Prudent (MPP PRU) scenario projections. The Shipping sector The emission scope of the sector includes scope 1 and scope 3’s category 3 (fuel and energy-related activities that are not included in scope 1 or scope 2) of ship owners and operators. Emissions are measured on a well-to-wake basis which includes emissions released during combustion on board of a vessel, mainly for propulsion purposes, as well as upstream fuel emissions. CO2, CH4 and N2O are included. BNP Paribas’ portfolio emission intensity measurement focuses on cargo vessels once built, delivered and in operation, which represents the vast majority of the GHG emissions along the sector’s value chain. BNP Paribas measures the Annual Efficiency Ratio (AER) of each of the vessels in-scope. The AER is the most widely used carbon intensity measure today in this industry as well as by financial institutions. The AER is reported in gCO2 equivalent per dwt.nm (deadweight tonne times nautical miles), reflecting the emissions generated in relation to the maximum cargo capacity of the vessel and the distance sailed. By 2030, BNP Paribas aims to reduce the emission intensity of its portfolio by 23% to 32%, representing an intensity ranging from 5.6 and 6.4 gCO2e/dwt.nm. The lower end of this 2030 emission intensity target range is aligned with the Det Norske Veritas (DNV) 1.6°C trajectory. The Commercial Real Estate sector Scopes 1, 2 and part of scope 3 are included (scope 3 is limited to category 13, downstream leased assets, which accounts for tenant’s scope 1 and 2 emissions). CO2, CH4, N2O and fluorinated gases (when data is available) are included. BNP Paribas focuses on the emissions from building utilisation (ownership and exploitation), as this accounts for c.75% of the emissions across the sector’s value chain. Construction-related emissions are not included. However, a significant part of these is already included in the Group’s other alignment targets (e.g. cement and steel production). The chosen metric is an emission intensity in kgCO2 equivalent per square metre. To obtain an aggregated measure, emission intensities are weighted by credit exposures. BNP Paribas has set an intermediate target for 2030 of between 19.5 and 16.7 kgCO2e/m2, i.e. a reduction range of 31% to 41% compared to 2022. This reduction range remains lower than what the CRREMV2.02 trajectory prescribes for 2030 but reflects the existing projections by the individual countries. The Group’s ability to achieve this target is highly dependent on factors outside the control of BNP Paribas, such as the evolution of the energy mix within countries, the development of local EPC regulations, or the national net zero transition strategies for the Real Estate sector. The Residential Real Estate sector BNP Paribas focused on building ownership and exploitation (scopes 1 and 2), i.e. the energy used for housing, which represents 75% of CO2emissions for the entire life of the building. Regarding the rest of the value chain (scope 3), transport and distribution related losses are excluded, as recommended by CRREM. The French, Belgian and Italian markets account for 94% of the Group’s residential real estate loan portfolio. The baseline calculation accounts for scope 1 and 2 emissions, in line with the CRREM methodology. CO2, CH4, N2O and fluorinated gases (where data are available) are included. At country portfolio level, the intensity-based measure, expressed in kgCO2 equivalent per square metre, is weighted on the financed square metres, in line with the PCAF methodology. At the Group level, the intensity-based measure is weighted by the number of assets the Group finances in each country. BNP Paribas used energy performance certificates (EPC), when available, or public data repositories, to compute the emission intensities of the residential real estate portfolio. For the time being, it was decided not to set quantitative targets for the residential real estate sector’s credit portfolio. This choice is motivated by several reasons, the main ones being: decarbonising the residential real estate sector is, to a great extent, dependent on the energy mix of the country, varying across the European countries; the sector faces frequent regulatory changes: local regulations lead to uncertainties about public aid schemes, but at the same time a reduction in regulatory constraints on energy renovation could accelerate it; decarbonising the sector requires diverse and coordinated actions by policymakers, financial institutions, industry experts and clients; lastly, BNP Paribas wants to ensure a balance between a necessary decarbonisation and a just transition by supporting all households in European countries in access to and transition of housing. The Agriculture sector In its approach to decarbonize its agriculture portfolio, BNP Paribas, like several other financial institutions and in line with the WBCSD(48) recommendations, focuses on the Farm segment, upstream of food processing activities. Emissions in this segment include the clients’ scopes 1 and 2. The Group decided not to set quantitative targets for this sector, mainly for the following reasons: agriculture is a highly fragmented sector with a wide variety of commodities and very different emission profiles depending on the type of crop, the product grown, the country, local patterns of weather and soils varying practices with different environmental footprints , etc.; the fragmented client base and the absence of climate data at client-level create significant challenges for portfolio alignment; the nascent methodologies at this stage and the absence of suitable scenarios are also obstacles to setting targets. 3.bGroup’s metrics and targets related to its climate change opportunities Targets and metrics related to the Group’s commercial activities As presented in section 2d. Group actions related to climate change opportunities in this chapter, the Group has defined a performance indicator included in its CSR dashboard. It corresponds to the cumulative amount between 1st January 2022 and 31st December 2025 of the financial support identified as contributing to the transition to a low-carbon economy. It includes loans, bonds, as well as the financial support in the form of private placements, financial advisory and IPOs. The Group has set the target of a total amount of EUR 200 billion by 2025. In addition, the Group has also set itself the target of reaching EUR 40 billion financing to low-carbon, primarily renewable, energy production by 2030 (representing 90% of the financed energy mix), according to the definition of low-carbon energies in section 3.a Group’s Metrics and targets related to its impact on climate change in this chapter. Targets and metrics related to the operational scope Approach and metrics The data required to calculate the indicators related to the Group’s operational scope are collected annually from the main territories (20 in 2024) in terms of employee headcount (representing 90% of the Group’s total workforce). An extrapolation then covers the rest of BNP Paribas’ environmental data for countries not participating in the reporting. The period considered for the data collected covers 12 months from October (N-1) to September (N). The number of FTEs is the number officially set by HR Group as of 31 December of the year considered. The measurement of the CO2 equivalent(49) emissions of the Group’s operational scope is based on the GHG Protocol’s reference methodology. It takes into account the energy consumed (electricity, gas, oil, district heating) in the buildings occupied by the Group, and the energy consumed during the use of transportation by employees for their business trips (excluding home-work travels) by car, train or plane. Due to its activities, the Group is not a significant source of noise pollution or any other specific industrial pollution. The target in terms of emissions for the Group’s operational scope is to be less than or equal to 1.85 tCO2e/FTE in 2025. 3.cEnergy consumption and Energy mix The Group presents below its energy consumption as well as the associated energy mix. In addition, the Group indicates the quantities of electricity produced through the photovoltaic installations deployed at several of its sites. ➤TABLE NO. 10: ENERGY CONSUMPTION AND THE GROUP’S ENERGY MIX Energy consumption and energy mix 2024 1. Fuel consumption from coal and coal-based products (in MWh) NA 2. Fuel consumption from crude oil and petroleum products (in MWh) NA 3. Fuel consumption from natural gas (in MWh) NA 4. Fuel consumption from other fossil sources (in MWh) NA 5. Consumption of electricity, heat, steam and cooling purchased or acquired from fossil sources (in MWh) NA 6. Total fossil energy consumption (in MWh) (calculated as the sum of rows 1 to 5) 354,632 Share of fossil sources in total energy consumption (in %) 45.6% 7. Consumption from nuclear sources (in MWh) 164,177 Share of consumption from nuclear sources in total energy consumption (in %) 21.1% 8. Fuel consumption from renewable sources, including biomass (also including industrial and municipal waste of biological origin, biogas, renewable hydrogen, etc.) (in MWh) NA 9. Consumption of electricity, heat, steam and cooling purchased or acquired from renewable sources (in MWh) 257,035 10. Consumption of self-generated non-combustible renewable energy (in MWh) 2,396 11. Total renewable energy consumption (in MWh) (calculated as the sum of lines 8 to 10) 259,431 Share of renewable sources in total energy consumption (in %) 33.3% Total energy consumption (in MWh) (calculated as the sum of lines 6, 7 and 11) 778,240 3.dGross greenhouse gas emissions Emissions from scopes 1, 2 and 3 of the operational scope In 2024, the Group’s total emissions on its operational scope amounted to 263,673 tCO2e (expressed using the location-based approach), a 7.6% decrease compared to 2023 and a 42.8% decrease compared to 2019, the pre-Covid-19 reference year. They represent 1.48 tCO2e per FTE, which is below the maximum target set for 2025 (1.85 tCO2e/FTE). Scope 1 amounts to 23,587 tCO2e, scope 2(50) amounts to 129,336 tCO2e, and scope 3 related to business travel to 110,751 tCO2e. For scope 3, only emissions related to business travel are reported (category 6). The assessment of scope 3 remains partial given that the level of approximation is still too high (application of generic emission factors based on financial data). Greenhouse gas emissions related to business travel are calculated based on kilometres travelled and relate to: reservations for air and train journeys made through the travel agencies with which the Group works; trips made by leased or personal vehicles. Scope 3 emissions of financed operations As of 31 December 2024, the Group's financed emissions on scope 1 and 2 are 60,494,532 tCO2e and on scope 3 43,660,656 tCO2e, for a total (scopes 1, 2 and 3) of 104,155,188 tCO2e. The Group refers to the GHG Protocol which considers emissions resulting from direct corporate financing sources in the form of equity, debt and project financing. The calculation on other types of activities is optional: this includes investment and asset management activities, as well as insurance contracts, financial advisory services and contracts on financial instruments such as derivatives, financial guarantees, securitised products, funds. Off-balance sheet items such as assets under management are not covered by the calculation. The Group’s financed greenhouse gas emissions cover the operations recorded on the Group’s balance sheet in the banking book and attributable to non-financial corporates clients within the Group’s prudential perimeter, in accordance with the sectoral disclosure requirements defined by the European Banking Authority’s technical implementation standard and presented in chapter 5.11 Environmental risks, Social and Governance Framework, section Banking Portfolio – Indicators of Potential Transition Risk Related to Climate Change. The table below details the excluded assets and the assets covered by the calculation of the Group’s financed emissions. ➤TABLE NO. 11: SCOPE OF ASSETS INCLUDED IN THE CALCULATION OF FINANCED GREENHOUSE GAS EMISSIONS (SCOPE 3, CATEGORY 15) Reference chapter In millions of euros 4.3 Group balance sheet Total assets of the Group’s balance sheet as of 31 December 2024 2,704,908 5.2 Table 8 Restatement of insurance companies (286,849) 5.2 Table 8 Other restatements related to consolidation methods 14,764 5.2 Table 8 Total assets of the Prudential Group’s supervisory balance sheet 2,432,823 Reintegration of provisions and revaluation 17,530 Total Gross assets of the Prudential Group’s supervisory balance sheet 2,450,353 5.2 Table 8 Excluding non-financial assets(1) (233,648) 5.2 Table 8 Excluding other assets(2) (34,996) 5.2 Table 8 Exclusion of mark-to-market financial instruments by profit or loss (802,995) 5.4 Table 48 Exclusion of credit risk exposures of central banks and central governments (392,800) 5.4 Table 48 Exclusion of credit risk exposures of institutions (186,804) Excludes securities, equity, institutions (8,525) 5.4 Table 48 Exclusion of retail credit risk exposures (343,478) 5.11 Table 107 Total credit risk exposures of non-financial corporations 447,107 Property, plant and equipment and intangible assets, goodwill, asset taxes, accruals and deferred income and miscellaneous assets. Cash register, hedging derivatives, shares in associates. The exclusions of financial assets presented in the table are justified as follows: the portfolio of insurance companies' assets is adjusted in the prudential balance sheet (using the equity method) and shall be considered in addition to the banking book. The Group’s insurance companies subject to the SFDR(51) and LEC 29(52) regulations publish their carbon footprint. Pending sector-specific standards for the insurance sector applicable under the CSRD, emissions attributable to the portfolio of financial assets on the insurance balance sheet are not included in the Group’s estimate of financed emissions. Ahead of the convergence of regulatory reporting directives, work is underway within the Group to harmonise the methodologies and data sources used; financial instruments accounted for at fair value through profit or loss correspond to the Group’s trading book whose management model consists of selling market positions on a liquid market with the intention of achieving a short-term result. This type of transaction is different from a financing operation and, to date, there is no commonly accepted method for measuring the greenhouse gas emissions attributed to this business model. Their exclusion is also compliant with the treatment of assets in the European Taxonomy regulation; exposures to central banks and governments correspond to the Group’s liquidity portfolio, their holding is due to interest rate and liquidity risk management requirements, particularly the maintenance of a portfolio of high-quality liquid assets (HQLA(53)) and not for commercial financing or investment purposes; similarly, interbank assets are short-term assets held for cash management purposes and to supply the interbank market. They are therefore excluded from the calculation; finally, loans granted to retail customers are also excluded from the estimate published by the Group because: there is no demonstrated correlation between a borrower’s probability of default and the greenhouse gas emissions’ level or the financed asset’s energy consumption, financed real estate assets are mainly exposed to physical risks, while greenhouse gas emissions are an indicator of transition risk, actual data (energy performance diagnosis before and after renovation, vehicle registration number) are not available and collectible in sufficient quantities to make a representative estimate of financed emissions. To calculate scope 3 greenhouse gas emissions, BNP Paribas uses the methods presented in the table below: ➤TABLE NO. 12: DETAILED METHODS FOR CALCULATING GREENHOUSE GAS EMISSIONS Scope 3 emissions category Detailed Emissions Calculation Methodology 1. Goods and Services Purchased - 2. Capital goods - 3. Activities in the fuel and energy sectors (not included in scopes 1 and 2) - 4. Upstream transmission and distribution - 5. Waste generated during operation - 6. Business travel The emission factors needed to recover the kWh consumed in the 20 territories are taken from the 2023 publications of the International Energy Agency. For the valuation of km, the Group relies mainly on the DEFRA standard(1) 7. Employee commuting - 8. Upstream leased assets - 9. Downstream Routing - 10. Processing of the products sold - 11. Use of Sold Products - 12. End-of-life treatment of products sold - 13. Downstream leased assets - 14. Franchises - 15. Investments The reporting of greenhouse gas emissions attributable to the banking book of financial assets accounted for in the form of equity and debt follows the PCAF Financed Emission Part A (Partnership for Carbon Accounting Financials) methodology presented by the Group in chapter 5.11 Environmental, social and governance risks, section Banking book - Indicators of potential transition risk related to climate change Department for Environment, Food & Rural Affairs. Summary of BNP Paribas’ gross scope 1, 2, 3 greenhouse gas emissions and total emissions ➤TABLE NO. 13: SUMMARY OF THE GROUP’S GREENHOUSE GAS EMISSIONS BY SCOPE 2024 Scope 1 GHG emissions Scope 1 Gross GHG Emissions (tCO2e) 23,587 Percentage of scope 1 GHG emissions from regulated emissions trading systems (%) - Scope 2 GHG emissions Gross Scope 2 Location-Based GHG Emissions (tCO2e) 129,336 Market-based Scope 2 Gross GHG Emissions (tCO2e) 58,093 Significant Scope 3 GHG Emissions Total gross indirect GHG emissions (scope 3) (tCO2e) 104,265,939 1 Goods and Services Purchased - (Optional sub-category: Cloud and data centre services) - 2 Capital goods - 3 Activities in the fuel and energy sectors (not included in scopes 1 and 2) - 4 Upstream transmission and distribution - 5 Waste generated during operation - 6 Business trips 110,751 7 Employee commuting - 8 Upstream leased assets - 9 Downstream Routing - 10 Processing of products sold - 11 Use of Sold Products - 12 End-of-life treatment of products sold - 13 Downstream leased assets - 14 Franchises - 15 Investments 104,155,188 Total GHG emissions Total GHG emissions (location-based) (tCO2e) 104,418,862 Total GHG emissions (market-based) (tCO2e) 104,347,619 In addition, the greenhouse gas emissions related to the fleet of vehicles leased by Arval to its clients amounted to 23.3 MtCO2e for the year 2024. In accordance with the GHG Protocol, they cover the vehicle life cycle's main phases : manufacture, use of vehicles during the lease period, and use once the vehicles have been resold until their end of life. The Arval subsidiary publishes a detailed inventory of its greenhouse gas emissions in its management report in accordance with the CSRD. Greenhouse gas emission intensity In the absence of standards for the application of the income intensity indicator for financial institutions, the Group publishes the indicator used internally, i.e. the carbon footprint of the portfolio expressed as the greenhouse gas emission intensity per unit of assets financed, i.e. 0.23 MtCO2e per billion euros financed as of December 31st 2024 on the same scope as Table 11. 3.eGreenhouse gas removal and mitigation projects, financed through carbon credits Since 2017, BNP Paribas has been purchasing voluntary carbon credits annually for an amount equivalent to the residual greenhouse gas emissions emitted the previous year on its operational scope (sum of the emissions related to its scopes 1 and 2 and part of its scope 3). In 2024, the Group purchased the equivalent of 214,860 tCO2, the emissions' amount for the year 2023 (expressed according to the market-based approach). The voluntary carbon credits purchased in 2024 come from four projects outside the Group’s value chain: the Kasigau project in Kenya, supported by the Group since 2017, is a programme to protect and restore 200,000 hectares of forest. Led by the NGO Wildlife Works, it also finances access to healthcare, water and education for local populations; in India, the project is based on a ten-year voluntary carbon offset programme as part of a partnership between BNP Paribas and the GoodPlanet Foundation, through the construction of 13,000 biodigesters. They provide four hours of gas daily, thus avoiding wood-burning and deforestation, and improving the living conditions of nearly 70,000 people; in Guatemala, hundreds of landowners, including local communities, have come together to protect nearly 60,000 hectares of forest by developing sustainable livelihoods that restore rather than degrade the forest and create better living conditions for its inhabitants; the Qori Q’oncha programme in Peru is deploying improved wood-burning stoves in several regions of the country, reducing the amount of wood used and carbon emissions while removing noxious smoke from homes. The calculation of the projects' carbon credits has been certified by Verra (Verified Carbon Standard) with the exception of the Peruvian project which has been certified by Gold Standard. The table below presents a summary of the main characteristics of the greenhouse gas emission reduction or absorption projects chosen by BNP Paribas and financed by the purchase of carbon credits. ➤TABLE NO. 14: SUMMARY TABLE OF THE CHARACTERISTICS OF THE GREENHOUSE GAS EMISSION REDUCTION OR ABSORPTION PROJECTS CHOSEN BY THE GROUP Carbon credits purchased in the base year 2024 Total (in tCO2e) 214,860 Share of absorption projects 51.0% Share of reduction projects 49.0% Verified Carbon Standard 91.4% Gold standard 8.6% Share of projects carried out within the EU 0% Share of carbon credits that can be considered as corresponding adjustments under Article 6 of the Paris Agreement (in %) 100% 4.TECHNICAL GLOSSARY RELATED TO THE MEASUREMENT OF GREENHOUSE GAS EMISSIONS AER: Annual Efficiency Ratio. IEA: International Energy Agency. CH4: Chemical formula of methane gas. Methane is of particular concern because of its global warming potential, which is about 25 times higher than that of carbon dioxide (CO2) over a 100-year period. This means that even small amounts of methane in the atmosphere can have a significant impact on climate change. CO2: The chemical formula of carbon dioxide. Carbon dioxide is of particular concern because of its role in global warming. It traps heat in the atmosphere, thus contributing to the greenhouse effect. CO2 emissions are often measured in tonnes of CO2 equivalent to assess their impact on the climate. CRREM: Carbon Risk Real Estate Monitor. DNV: Det Norske Veritas is a classification society and certification body that provides quality assurance and risk management services. dwt.nm: deadweight tonne times nautical miles. “Deadweight Tonnage” is a measure of a ship’s total load capacity, including the weight of cargo, fuel, water, provisions, passengers, and crew. The term “nm” stands for “nautical miles”. Fluorinated gases: greenhouse gases that include several types of chemical compounds. They are often used in a variety of industrial and commercial applications, such as refrigeration systems, air conditioners, aerosols, and foam insulation. The main fluorinated gases are hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride (SF6) and hydrofluoroolefins (HFOs). These gases are known for their high global warming potential, which means they can trap heat in the atmosphere much more efficiently than carbon dioxide (CO2). IAI: International Aluminium Institute. IMO: International Maritime Organization. kWh: kilowatt-hour, unit of measurement of energy. MJ: Mega Joule, unit of measurement of energy. MPP: Mission Possible Partnership is a collaborative initiative to accelerate the decarbonisation of hard-to-reduce industrial sectors. The MPP brings together companies, governments and non-governmental organisations to develop and implement sectoral roadmaps to net-zero emissions. N2O: The chemical formula of nitrous oxide. N2O is of particular concern because of its global warming potential, which is about 298 times higher than that of carbon dioxide (CO2) over a 100-year period. This means that even small amounts of N2O in the atmosphere can have a significant impact on climate change. RTK: Revenue Tonne Kilometre. A unit of measurement of traffic corresponding to one metric tonne of payload carried over one kilometre. WEO: World Energy Outlook. WLTP: Worldwide Harmonised Light Vehicle Test Procedure. 7.1.3Aligned activities within the meaning of the European Taxonomy 1.REMINDER OF THE REGULATORY FRAMEWORK AND REPORTING OBLIGATIONS FOR FINANCIAL INSTITUTIONS The European Taxonomy (hereinafter referred to as the Taxonomy) is a system for classifying economic activities according to their contribution to the six environmental objectives(54) defined by the European Commission in the various Regulations and Delegated Acts published between June 2020 and November 2023(55). The Taxonomy is based on two central concepts: the eligibility of an activity, if the latter is described in one of the Delegated Regulations of the Taxonomy because of its high potential to contribute to any one of the six environmental objectives; the alignment, which confirms the significant contribution of an eligible activity to one of the six environmental objectives, based on measurable criteria. An aligned activity is defined(56) as an activity that makes a substantial contribution to one of the environmental objectives without causing harm to the other objectives, i.e. that firstly satisfies all the technical screening criteria described in one of the delegated regulations, and secondly that meets the minimum safeguards. For a credit institution, the main alignment indicator is the Green Asset Ratio (GAR), which concerns financing instruments on the institution’s balance sheet. This disclosure of the GAR is accompanied by the green ratio of financial guarantees and the green ratio of assets under management. The chosen approach, presented hereafter, notably leverages on most of the frequently asked questions (FAQs) published by European Commission on 8 November 2024(57) on the interpretation of certain provisions of Delegated Regulation (EU) 2021/2178. However, the Group has not considered the FAQs introducing a conglomerate indicator in reference to Annex XI of Delegated Regulation (UE) 2021/2178, not included in initial regulation. 2.SCOPE OF FINANCIAL ASSETS SUBJECT TO THE ELIGIBILITY ANALYSIS Each indicator is calculated based on the prudential scope of consolidation as presented in chapter 5 Risks and capital adequacy – Pillar 3, in accordance with Commission Delegated Regulation (EU) 2021/2178 of 6 July 2021. 2.aGreen asset ratio (GAR) The measurement of financial assets covered by the Taxonomy regulation is based on the gross carrying amount, i.e. before taking into account any provisions. The ratio numerator measures the amounts of financial assets corresponding to aligned activities within the meaning of the Taxonomy. Its scope of analysis covers the following financial assets (in the form of loans and advances, debt securities, equity instruments and repossessed real estate collateral): outstandings on European companies subject in 2024 to the NFRD(58); outstandings on European households in the three loan categories covered by the regulation (home loans; energy renovation loans; car loans granted since 1 January 2022); outstandings on local administration for financing of public housing and other specialised financing, i.e. for which the allocation of funds is known; the carrying amount of repossessed property collaterals. The ratio denominator includes the following asset categories (in addition to the financial assets subject to alignment analysis for the calculation of the numerator): interbank current accounts, derivatives used for hedging purposes, outstandings to European companies not subject in 2024 to the NFRD and outstandings with non-European counterparties, outstandings on households that do not fall within the three loan categories covered by the GAR (which are housing loans, energy renovation loans and car loans), cash on hand, other assets (e.g. property, plant and equipment, intangible assets, deferred tax assets). The inclusion of assets excluded from numerator alignment analysis in the asset denominator (30.2% of balance sheet assets, in gross carrying amount) causes a structural imbalance of the indicator. Consequently, this ratio cannot be a representative measurement indicator for alignment. Exposures to central governments, central banks or supranational issuers are not covered by the regulation, and amount to 47.9% of balance sheet assets, in gross carrying amount. The GAR, in stock measure, is completed by a flow GAR, which indicates the share of the evolution over the period of stock of aligned assets in the evolution of total assets covered by the GAR denominator. It is calculated by the difference of aligned assets (loans and advances, debt securities, equity instruments and repossessed real estate collaterals) between the end-of-year stock and the previous one. This methodology is applied for all flows indicators (GAR, green ratio of financial guarantees, green ratio of assets under management), for consistency purpose and in the absence of disclosed guidelines on flow off balance sheet indicators. 2.bRatios of green off-balance sheet assets Concerning the green ratio of financial guarantees, the scope of analysis for aligning guarantees, used to calculate the ratio numerator, covers financial guarantees whose counterparties are European companies subject in 2024 to the NFRD. The denominator includes all financial guarantees granted to companies regardless of whether they are covered by the regulation. Yet again, a structural imbalance of the ratio must be considered, and consequently this ratio cannot be a representative measurement indicator for alignment. Concerning the green ratio of assets under management, the scope of alignment covers instruments invested in European companies subject in 2024 to the NFRD as well as investments in real estate assets. This covers both the asset management activities carried out by the Group, and the discretionary management of client portfolios in respect of investment funds, equity instruments, debt securities and investments in real estate assets. The same structural imbalance is observed, as the denominator includes all instruments regardless of whether they are covered by the regulation. Consequently, this ratio cannot be a representative measurement indicator for alignment. Exposures to central governments, central banks or supranational issuers are also excluded from the off-balance sheet indicators. Flow ratios of green off-balance sheet assets have been calculated for the 2024 reporting year, based on a similar methodology as the one for the flow GAR. 3.METHODOLOGY FOR ALIGNMENT QUALIFICATION UNDER THE EUROPEAN TAXONOMY The analysis of the eligibility and alignment of financial assets with the Taxonomy is based on differentiated approaches according to the categories of counterparties: companies subject in 2024 to the NFRD, local governments, European households and investment funds. For counterparties subject to the NFRD, if the financial instrument funds are not allocated, the Group collects, via data providers, the share of alignment published by the companies, such as the aligned turnover ratio and the aligned capital expenditure ratio (CapEx). This treatment applies to the three ratios, the Green Asset Ratio, the green ratio of financial guarantees and the green ratio of assets under management. With regard to Cardif assets, recognised in the prudential balance sheet using the equity method, a similar treatment has been performed, respectively taking into account Cardif’s investment indicators, turnover-based and CapEx based measured as of 30 June 2024. It should be noted that Arval assets, since 1 July 2024, have been fully consolidated in the prudential balance sheet, and no longer recognised using the equity method as at 31 December 2023. Since assets held by Arval are not eligible to the GAR numerator, the Arval shares of aligned turnover and aligned CapEx no longer reflect in the GAR of the Group. With regard to financing granted to corporates and local administration, where the use of funds is known, the alignment measure should be based on information collected from the counterparty. The communication notice published by European Commission on 8 November 2024(59) on the interpretation of certain provisions of Delegated Regulation (EU) 2021/2178 specifies that as such banking institutions must collect supporting documents proving the alignment for each of the technical criteria, in order to ensure that they are met. The level of collection and verification of the requirements set by the Commission’s communication of 8 November 2024 is not fully achievable. This is why no financial instrument for which use of funds is known has been reported in the GAR numerator, with respect to companies or local governments. With regard to households, a similar approach should be conducted to assess the alignment of housing loans, energy renovation loans and car loans, with the collection of evidence justifying each of the criteria for both key energy or low-carbon performance criteria, as well as for other criteria justifying the absence of negative impacts on the other five environmental objectives. The Group is able to carry out this full assessment approach(60) only for housing loans, by leveraging on its internal assessment framework of climate physical risks, on the basis of the RCP 8.5 2085 scenario as regards to riverine and pluvial flooding risk. For renovation loans and car loans, the Group indeed collects evidence from households for key energy or low-carbon performance criteria, but is not able to assess the absence of negative impacts on the other five environmental objectives. Therefore, the GAR numerator only includes, with regard to household loans, housing loans. With regard to the investment funds covered by the green ratio of assets under management, and in particular those included in the portfolios under management mandate, the Group has been able to integrate the first alignment shares published by investment funds subject to EU Sustainable Finance Disclosure Regulation (SFDR) 2019/2088. 4.ALIGNMENT INDICATORS AT 31 DECEMBER 2024 Summary of key performance indicators (KPIs) to be published by credit institutions in accordance with article 8 of Regulation (EU) 2020/852 ➤TABLE NO. 15: SUMMARY OF MAIN KPI in millions of euros 31 December 2024 Total environmentally sustainable assets (turnover) Total environmentally sustainable assets (CapEx) KPI (turnover) KPI (CapEx) % coverage (over total assets) % of assets excluded from the numerator of the GAR (Article 7 (2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7 (1)) and Section 1.2.4 of Annex V) Main KPI Green asset ratio (GAR) stock 23,495 27,055 1.84% 2.12% 21.91% 30.19% 47.90% in millions of euros 31 December 2023 Total environmentally sustainable assets (turnover) Total environmentally sustainable assets (CapEx) KPI (turnover) KPI (CapEx) % coverage (over total assets) % of assets excluded from the numerator of the GAR (Article 7 (2) and (3) and Section 1.1.2. of Annex V) % of assets excluded from the denominator of the GAR (Article 7 (1)) and Section 1.2.4 of Annex V) Main KPI Green asset ratio (GAR) stock 9,254 19,793 0.78% 1.66% 28.06% 22.57% 49.36% ➤TABLE NO. 16: SUMMARY OF ADDITIONAL KPIs in millions of euros 31 December 2024 Total environmentally sustainable assets (turnover) Total environmentally sustainable assets (CapEx) KPI (turnover) KPI (CapEx) Additional KPIs GAR (flow) 14,241 7,262 (11.56)% (5.90)% Financial guarantees 3,553 4,746 4.32% 5.77% Assets under management 12,174 14,025 2.32% 2.67% in millions of euros 31 December 2023 Total environmentally sustainable assets (turnover) Total environmentally sustainable assets (CapEx) KPI (turnover) KPI (CapEx) Additional KPIs GAR (flow) Financial guarantees 5,751 9,492 4.65% 7.68% Assets under management 8,659 14,456 1.98% 3.31% The Group’s green asset ratio, measured from counterparty revenue indicators, amounts to 1.8% of covered assets at the end of December 2024. The ratio increased due to the integration of aligned housing loans, identified thanks to the methodology described here-above and applied since 2024. Arval alignment indicators are no more taken into account in the calculation of Group GAR, due to its full prudential consolidation since 1 July 2024. This Arval consolidation scope effect impacted the Group’s GAR by approximately -30 basis points. The share of Arval’s aligned turnover, in relation with revenues from leasing and sales of vehicles, amounted to 13.8% in 2024, for an eligible share of 97.2%, whereas the share of its aligned CapEx (acquisition costs of vehicles) was 24.7%, for an eligible share of 99.3%. With regard to the Group’s green asset ratio, eligible and non-aligned assets represent 19.8% of covered assets. These assets are mostly eligible for the two climate objectives (19.7% of covered assets), a negligible share (0.2%) being eligible to the other environmental objectives(61). Other tables are presented in appendix 4 and are also available on the Group’s investor relations website(62). In addition to the 13 generic tables, the Group publishes 9 tables complementary to the GAR stock indicator (measured on a turnover basis and on a Capex basis), covering the financing of activities related to fossil fuel and nuclear energy. It has been considered that the disclosure of tables complementary to other alignment indicators, of a more secondary order, would bring only a marginally useful information. 5.LIMITS OF THE REGULATORY RATIOS FOR ALIGNMENT WITH THE EUROPEAN TAXONOMY The green asset ratio and the other indicators of taxonomy alignment applicable to banks, due to their methodological imbalances and their operational complexity, cannot reflect all of the Group’s financing of the transition to a low-carbon economy. Firstly, the analysis of the alignment with the European taxonomy only concerns companies subject in 2024 to the NFRD, European households and specialised financing granted to European local governments. The regulation excludes the financing of SMEs and non-European companies. Specifically, they exclude from the analysis the financing of projects housed in dedicated vehicles, not subject in 2024 to the NFRD regulation, even if they concern the financing of low-carbon infrastructure in Europe. Finally, the scope of the ratio limited to large companies subject in 2024 to the NFRD regulation is very restrictive, given the Group’s diversified business model. Consequently, the imbalance between the assets falling within the scope of analysis of alignment under the numerator and the total assets covered by the denominator sets a structural ceiling for each of the Group’s ratios, out of which for the GAR of 42.1% in 2024. This cap is lower the more the business model is diversified in terms of clients, products and geographies. The taxonomy alignment criteria are ambitious by definition, since they correspond to thresholds scientifically compatible with the European Union’s carbon neutrality objective by 2050. However, by proposing only aligned or non-aligned results, the transition trajectory is not taken into account, even though it is the subject of a long-term effort already undertaken by the Group and its clients. Finally, the climate performance criteria are accompanied by multiple additional conditions, aimed at ensuring that the activity does not cause significant harm to one of the five other Taxonomy objectives. The assessment of these conditions is complex, including issues of both interpretation of legislation and access to information. The need to take into account these criteria significantly reduces the share of activities aligned by companies, especially since banks’ collection of information for each of the criteria is currently not feasible. This last finding has even more impact on renovation and car loans granted to households, for which asset alignment would require the collection of data not related to climate performance, which individual customers are unable to collect. Also, by default, their efforts to contribute to a low-carbon economy, through home energy renovation and clean transportation, are made invisible in the green asset ratios. These regulatory alignment indicators do not reflect the share of the Group’s assets contributing to alignment with the European climate change mitigation and adaptation objectives, nor the efforts made by the Group to steer its business model towards a low-carbon economy, in particular through the alignment commitments of its loan portfolio. This observation is widely shared with numerous actors (banks, industries, etc.). A first draft amendment to this metric is currently under consultation as part of the project of the European Commission Omnibus Directive, ahead of the full revision of the delegated act planned in 2025 by the European Commission. In addition, the sustainability strategy of the Group, and its climate component (see chapters 7.1.1 General Disclosures, section 2. Strategy, business model and stakeholders, and 7.1.2 Climate Change) cannot be limited to taxonomy alignment, part of the criteria being complex to operationalise for the time being, and hardly enabling to cover activities out of European Union. As such, as presented in the chapter 7.1.1 General Disclosures, section 2. Strategy, business model and stakeholders, the Group uses internal sustainable classification principles, partly inspired by the criteria of the European taxonomy. 6.SHARE OF ASSETS ALIGNED WITH CLIMATE PERFORMANCE CRITERIA IN ELIGIBLE ASSETS The Group’s internal proposed ratio of the share of assets aligned with key climate performance criteria in all assets eligible to climate objectives enables to show the evolution of the financing granted to assets contributing to Europe's carbon neutrality objectives.. At 31 December 2024, outstandings aligned with the Taxonomy’s key climate performance criteria represented 11.9% of the Group’s outstandings eligible for climate objectives. This ratio covers the financing of European Union companies subject in 2024 to NFRD, whether or not the use of the funds is allocated, specialised financing granted to European local governments, and loans to European households which are covered by the Taxonomy, namely home loans, energy renovation loans and car loans. The alignment measurement uses a simplified approach, based solely on compliance with the technical climate performance criteria, for the following categories: for financing to companies whose use of funds is allocated, the alignment amount is identified based on a certificate of taxonomy alignment collected from the client, which shows the percentage of alignment of the financed asset or project, and the climate objective to which it contributes; for loans to households, alignment is assessed on the basis of a simplified approach(63), based on the criteria of substantial contribution to climate change mitigation objective. For financing to companies whose use of funds is not allocated, the measurement of the alignment is based on the key performance indicators disclosed by the counterparties, according to the methodology described previously in the section on methodology for alignment qualification under the European Taxonomy. In comparison to the GAR, this ratio better reflects the Group’s strategy in favour of low-carbon energy financing, and the policy of supporting households with low-carbon housing, renovation and mobility solutions on the European market. The strategy for aligning its loan portfolio, applied to all its markets, is detailed in chapter 7.1.2 Climate change. ➤TABLE NO. 17: SHARE OF ASSETS ALIGNED WITH CLIMATE PERFORMANCE CRITERIA IN ELIGIBLE ASSETS in millions of euros 31 December 2024 Total assets eligible for the Taxonomy Total assets potentially aligned with the Taxonomy Share of assets aligned with all eligible assets Exposures towards NFRD counterparties 42,777 6,958 16.3% Exposures towards Households 231,857 25,778 11.1% TOTAL EXPOSURES 274,634 32,737 11.9% () On the basis of key climate performance criteria of the Taxonomy (for financing whose use of funds is allocated), and on the basis of aligned turnover indicators disclosed by counterparties (for other financing). in millions of euros 31 December 2023 Total assets eligible for the Taxonomy Total assets potentially aligned with the Taxonomy Share of assets aligned with all eligible assets Exposures towards NFRD counterparties 49,513 10,836 21.9% Exposures towards Households 227,656 21,266 9.3% TOTAL EXPOSURES 277,169 32,101 11.6% (*) On the basis of key climate performance criteria of the Taxonomy (for financing whose use of funds is allocated), and on the basis of aligned turnover indicators disclosed by counterparties (for other financing). 7.1.4Own workforce The Group’s own workforce refers to the nearly 180,000 Group employees as of 31/12/2024, mainly in permanent contracts (98%). It also includes some non-employee workers who are on assignment with a temporary employment agency and working in the company. BNP Paribas presents hereafter an analysis of the strategy, policies and actions implemented by the Group regarding its own workforce: Strategy: the Group places people at the heart of its strategy. The Human Resources (HR) function plays a key role in the deployment of the Group’s ambitions in favour of people carried out by the People Strategy around 3 pillars: ethics and inclusion, employee experience and human capital. According to the double materiality assessment performed by the Group, material impacts, risks and opportunities have been identified relating to the Group’s own workforce and are described hereafter. Policies: the Group details all the Group and HR policies put in place for the Group’s own workforce to deal with these material impacts, risks and opportunities. Actions: the Group describes remediation actions to mitigate material impacts and risks and pursue material opportunities related to the Group’s own workforce, including the promotion of an inclusive culture, the prevention of discrimination, harassment and violence at work, social protection, the prevention of psychosocial risks, actions in favour of professional equality, civil society and skills development. Targets and Metrics: the Group includes the objectives that were taken as commitments in the Global Agreement as well as the social responsibility objectives of the CSR dashboard. The metrics detailed hereafter correspond to data on the Group’s own workforce, its characteristics, movements as well as all data relating to the working conditions of the Group’s employees (employment conditions, working hours, adequate wages, social dialogue, social protection, work-life balance, health and safety) and the equal treatment of employees (professional equality, training and skills development, persons with disabilities, diversity, measures against violence and harassment). 1.Strategy 1.aMaterial impacts, risks and opportunities and their interaction with strategy and business model As a responsible employer, the Group ensures that the labour rights of its workers, including employees and non-employee workers, are respected. It is committed to ensuring that workers benefit from a healthy and fair working environment. The diversity of the Group’s economic model means that its employees are subject to various levels of risk depending on the local geographical context and the business line in which they operate. The Group conducted a global assessment of impacts to identify the material negative impacts that could affect its workers, as well as the material financial risks and opportunities for the Group. This assessment has taken into account feedback from internal and external stakeholders, including in particular employees, NGOs, customers and investors. The risk assessment is based on the internal analysis of worker-related risks as reported by the Group’s various business lines and geographies, combining risk events and risk drivers. The material negative impacts and risks identified are not directly linked to the Group’s strategy. The Group nevertheless remains vigilant to the interests and views of stakeholders who could be affected. Material impacts identified by the Group The assessment thus highlighted negative impacts related to isolated cases of: discrimination, inequality and exclusion: in some cases, the Group’s employees may occasionally be faced with situations of discrimination at different stages in their professional careers such as recruitment, performance reviews, promotions, compensation reviews; violence and harassment at work: relationships between colleagues can, occasionally and in some cases, degenerate into situations of verbal or physical violence, or harassment. The Group’s employees may also be exposed to these risks in the short term in their interactions with the Bank’s customers and other external stakeholders, in the form of incivility towards them. The assessment also highlighted potential negative impacts: regarding social protection of employees: as public social protection programmes do not systematically exist in all the countries where the Group operates, the absence of programmes could potentially have a negative impact on the Group’s employees. Material risks identified by the Group The Group has identified two risks likely to have a negative financial impact: psychosocial risks: recent changes in working methods as well as rapidly changing environments are likely to increase the pressure at work on employees, which can be exacerbated by inappropriate managerial behaviour. These factors can have short-term consequences on the occupational health of employees, increase psychosocial risks and potential burnout. These changes in ways of working, including the increase of remote working practice, can also increase the risk of a sedentary lifestyle and associated diseases; HR legal risks: risks related to respect for persons, including discrimination and harassment, as well as risks related to poor contract execution may lead to disputes with the Group’s employees. Legal actions taken by employees for these reasons may result in significant legal costs for the Group that may have financial impacts for the Group. Material opportunities identified by the Group The Group has identified several material opportunities driven by its People Strategy, and corresponding to the social responsibility indicators of the Group CSR dashboard(64): opportunities in terms of gender diversity: the promotion of gender diversity, in particular within management bodies and senior management populations, encourages a balanced and inclusive work environment that contributes to the creativity and commitment of employees and consequently to the attractiveness and the overall performance of the Group; opportunities in terms of work-life balance: the introduction of solidarity hours allowing a work-life balance and devoting time to civil society, promotes a solidarity work environment and contributes to the commitment, attractiveness and to the well-being at work of employees. The promotion of gender diversity and the establishment of solidarity hours promote employee retention and efficiency, thus reducing external recruitment costs. opportunities in terms of skills development: training and skills development programmes promote employee satisfaction and retention, thus reducing external recruitment costs for the Group. These programmes also make it possible to strengthen the skills of employees according to the needs of tomorrow. This reinforcement has the additional consequence of increasing the employability and internal mobility prospects of employees. All these elements contribute overall to increasing the Group’s organisational performance. ➤TABLE NO. 18: SUMMARY OF THE LINKS BETWEEN MATERIAL IRO AND POLICIES, ACTIONS, METRICS AND TARGETS Category Title of the material IRO Policies Actions Metrics Targets (or monitoring indicators) Impacts Discrimination, inequality and exclusion Code of conduct Global Agreement Respect for Persons policy Diversity Governance Compensation policy Inclusion initiatives Characteristics of employees Collective bargaining and social dialogue Diversity metrics Adequate wages Persons with disabilities Training and skills development metrics Work-life balance metrics Remuneration metrics Incidents, complaints and severe human rights impacts Share of women in the Senior Management Position (SMP) population: 40% Violence and Harassment at work Code of conduct Global Agreement Respect for Persons policy Penalties for misconduct Compensation policy External recruitment policy Diversity Governance procedure Confidential Reporting System for Incidents of Discrimination and Harassment Remedial actions (disciplinary and support measures, post-investigation follow-ups) Characteristics of employees Characteristics of non-employee workers Health and safety metrics Incidents, complaints and severe human rights impacts Monitoring indicator on the number of alerts related to Respect for Persons and number of sanctions Social protection for employees Global Agreement Code of conduct People & Property Security Policy Global Agreement Social policies and the We Care programme Whistleblowing system Social protection Characteristics of employees Collective bargaining and social dialogue Social protection Health and safety metrics Work-life balance metrics 100% of employees covered by listening and psychological support systems Risks Psychosocial risks Global Agreement European Agreement on the Prevention of Stress at Work We Care programme Respect for Persons Measurement of work-related stress Training and awareness programmes on mental health and psychosocial risks Employee Assistance Programme Psychological support Characteristics of employees Health and safety metrics 100% of employees covered by listening and psychological support systems HR Legal Risks Code of conduct Global Agreement External recruitment policy Compensation policy Diversity Governance Professional path policy Preventive actions regarding respect for persons Managerial training Characteristics of employees Incidents, complaints and serious human rights impacts Monitoring indicator on the number of Respect for Persons alerts and the number of sanctions Opportunities Gender diversity Diversity Governance Global Agreement Women in IT programme Awareness Raising (OneInThreeWomen) Characteristics of employees Diversity metrics Training and skills development metrics Work-life balance metrics Remuneration metrics Share of women in the SMP population: 40% in 2025 Share of women in IT line: 31% in 2026 and 35% in 2030 Work-life balance Global Agreement #1MillionHours2Help programme Number of solidarity hours: 1 million hours over 2 rolling years Skills development Professional path policy Skills management Skills management tool Career Days continuous development About Me platform Internal mobilities Training initiatives Targets related to managing material impacts, risks and opportunities Characteristics of employees Training and skills development metrics Share of employees who have completed at least 4 training courses: 90% With more than 4,500 employees worldwide, the Human Resources (HR) line relies on an organisation with an HR function at Group level and local HR at the level of the various business lines and territories. In particular, the Group HR function defines policies, and the employees of the HR line are responsible for leading and implementing these HR policies at the local level. 2.Impacts, risks and opportunities management 2.aPolicies related to own workforce Through the Group’s policies, BNP Paribas places particular emphasis on human rights, occupational health and safety, and diversity, equality and inclusion. Respect for the human rights of employees is a central pillar of the CSR strategy, supported by various international commitments and standards. By promoting an inclusive and safe work environment, the Group aims to improve the well-being of its employees and prevent discrimination and health and safety risks. The table below provides a summary of the key policies related to own workforce. The Group’s policies cover all of the Group’s employees, bearing in mind that, given the activities, no so-called “vulnerable” populations within the meaning of the regulations have been identified that could benefit from specific policies. ➤TABLE NO. 19: SUMMARY OF THE GROUP’S POLICIES RELATING TO ITS own WORKFORCE Policies Description of the content of the policy Description of the scope of the policy or its exclusions Description of the most senior level of the organisation accountable for implementing the policy Interaction with stakeholders Code of conduct The Code of conduct sets out the rules of conduct that apply to all activities and employees of the Group. BNP Paribas Group BNP Paribas Group General Management The Code of conduct is available on the Group’s intranet and on the BNP Paribas website(1). It is available in 20 languages. People and Property Security Policy Establishes the general framework for the safety, security, business continuity and crisis management activities for BNP Paribas. BNP Paribas Group (including for BNP Paribas partners and service providers). General Management, People and Property Security Department The policy is only shared internally. Deployment of Global Agreement on fundamental rights and global social framework. Contains the commitments made by the Group to its employees and its deployment throughout the Group on the following 7 themes: Human rights, social dialogue and trade union rights Social and environmental responsibility Employment and skills management Gender equality in the workplace Respect for Persons, Non-discrimination Equal Opportunities, Diversity and Inclusion Global Social Floor BNP Paribas Group (applied locally as such) Heads of HR for the Group’s entities The policy is shared internally and accessible on the Group’s website. The Group agreement is published on the BNP Paribas website(2). Group Policy on Respect for Persons Describes the BNP Paribas Group’s system for preventing and detecting actions that do not comply with the Code of conduct concerning “Respect for Persons”, as well as for collecting and processing alerts on this subject. Describes in particular the single alert system, as well as the role of the employee representative bodies in the HR pillar of the Vigilance Plan. BNP Paribas Group Group Head of HR and Heads of HR for the Group’s entities The policy is only shared internally. Penalties for misconduct Defines the general principles applicable to the management of the disciplinary sanction process imposed on an employee. The policy covers breaches such as fraud but also other punishable breaches such as inappropriate behaviour such as denigration, harassment or discrimination. BNP Paribas Group (applied locally by the entities according to the legislative context in terms of labour law applicable in each country) Group Head of HR and Heads of HR for the Group’s entities The policy is only shared internally. Diversity and Inclusion Governance Procedure at BNP Paribas Contains a presentation of BNP Paribas’ Diversity & Inclusion Governance’s organisation, around 5 pillars. Constitutes the vector by which Diversity and Inclusion is structured within the Group and identifies the formalisation of recruitment and career management decisions as the main tool for preventing the risk of discrimination. BNP Paribas Group Group Head of HR and Heads of HR for the Group’s entities The policy is only shared internally. Diversity & Inclusion Policy for the Group detailed on a dedicated page on the Group’s Corporate website(3) and internally External recruitment policy of Group employees The objective is to present the organisation and guiding principles for the external recruitment of BNP Paribas Group employees. BNP Paribas Group Group Head of HR and Heads of HR for the Group’s entities The policy is only shared internally. Professional path policy for BNP Paribas Group employees Aims to establish the framework for managing the career paths of employees within the Group, defining the standards for the associated processes, activities and key moments. It guarantees: the adequacy of employees’ professional projects with the needs of the Company; the identification and assessment of skills and talents; identification of development needs; the evaluation and recognition of individual and collective performance; commitment and motivation thanks to various development opportunities within the Group. BNP Paribas Group Group Head of HR and Heads of HR for the Group’s entities The policy is only shared internally. Compensation policy Defines the general principles of compensation of the BNP Paribas Group and the compensation policy applicable to employees subject to specific regulatory provisions: in particular employees identified within the Group as significant risk takers. BNP Paribas Group General Management, Group Head of HR and Heads of HR for the Group’s entities after validation of the policy by the BNP Paribas Board of directors’ Remuneration Committee The policy is shared internally and communicated externally in a report published annually on the Group’s Corporate website(4). Sustainable Sourcing Charter Sets out the reciprocal commitments between BNP Paribas and its suppliers, in particular respect for human rights and labour rights. BNP Paribas Group Commitments monitored as part of the governance of BNP Paribas Engagement Direction The charter is available on the BNP Paribas website(5). https://cdn-group.bnpparibas.com/uploads/file/220204_bnpp_compliance_codeofconduct_2022_eng.pdf. https://uniglobalunion.org/wp-content/uploads/2024-11-04_Agreement-on-Global-social-floor_EN-small.pdf. https://group.bnpparibas/en/our-commitments/inclusion/diversity-equality-and-inclusion. https://invest.bnpparibas/document/compensation-for-financial-year-2023-of-employees-whose-professional-activities-have-a-material-impact-on-the-groups-risk-profile. https://group.bnpparibas/uploads/file/sustainable_sourcing_charter_eng.pdf. System supporting human rights The Group: commits to promoting respect for human rights in its sphere of influence and to treating all its workers with dignity: forced labour is prohibited within the Group; notably respects the ten principles of the United Nations Global Compact, the United Nations Guiding Principles on Business and Human Rights, human rights standards (internationally accepted as defined in the International Bill of Human Rights), and core labour standards (as defined by the International Labour Organization)(65); complies with the most rigorous standards of conduct and ethics, in terms of the fight against corruption, respect for human rights and environmental protection, regardless of its activities, relying on its Code of conduct(66), the “BNP Paribas and Human Rights” pillar document and the Global Agreement signed with UNI Global Union(67). As the Group’s employees are, for most of them, highly qualified professionals and work in the tertiary sector, the risks of modern slavery and human trafficking have been considered very low. However, BNP Paribas is committed in its Code of conduct to ensuring a motivating working environment in which all employees are treated fairly and respectfully and particularly emphasises on: respect for all employees; the need to apply the highest standards in terms of professional ethics; the rejection of all forms of discrimination. The policies put in place by the Group in this area include an annual review of countries at risk in terms of respect for human rights, as well as monitoring of employees under the age of 18 (1 single employee aged 17 in 2024 in the United Kingdom). Moreover, regarding temporary workers integrated into the Group’s own workforce, BNP Paribas ensures, in particular through the Sustainable Sourcing Charter, that the Group’s suppliers, employers of these temporary workers, comply with the principles of the Universal Declaration of Human Rights (adopted by the UN in 1948) and the Fundamental Conventions of the International Labour Organization (ILO). To ensure the implementation of the charter, suppliers undertake to provide the necessary supporting documents and to welcome the auditors, internal or external, mandated by BNP Paribas to verify compliance with the Charter. Finally, the Group provides its employees with a remediation system including reporting channels and a whistleblowing mechanism accessible to the Group’s employees as well as to all workers in the value chain(68). Occupational health and safety In accordance with the Group’s Code of conduct, safety in the workplace (including during business travel) implies the commitment of everyone to contribute to the safety and security of the workplace as part of daily activities and to comply with the Group’s internal policy; for managers, to seek to improve the working conditions of the teams and to report any activity that may involve a threat to the physical safety of an employee or an external person on the premises of the Group. All Group employees as well as people present on a Group site (interns, work-study students, temporary workers, subcontractors, customers, visitors, etc.) benefit from a reference corpus in terms of personal and property safety, which was the subject of an external audit in 2021. It establishes the fundamental principles of: security (with regard to risks related to deliberate or malicious acts likely to harm the persons or assets and activities of the Group); safety (with regard to natural and climatic events, or related to the technological environments of its sites likely to harm the people or assets and activities of the Group); business continuity and crisis management. This framework, approved by the Group’s General Management, is deployed country by country by local management. The functions in charge of safety and security form the basis of measures designed to preserve, through a constant risk analysis approach, the integrity of its activities, resources and interests against security and safety events affecting the Group. The health and safety conditions of each site comply with the regulations applicable in the different countries. Given the nature of the Group’s activities and the measures implemented, the real risks related to the health and safety of the Group’s employees are relatively low, with a very limited number of work-related accidents(69). The main risks to employees’ health that may be linked to possible accidents relate to psychosocial and sedentary risks. The Group has therefore selected mental health and health issues related to sedentary lifestyles as health priorities, as part of the new Global Agreement and the We Care Group health programme. Diversity, equality and inclusion At the heart of the “Ethics and Inclusion” pillar of the People Strategy, the Group has made commitments to promote ethics and inclusion, and to encourage respectful, non-discriminatory and exemplary behaviour. These commitments are notably reflected in the Group’s Code of conduct, the Global Agreement, and the Sanctions Policy for Misconduct. These anti-discrimination and diversity policies implemented by BNP Paribas focus on: professional gender equality; emotional orientation and gender identity; diversity of origins and multiculturalism; age diversity; and disability. These are major challenges for the Group. Diversity in all dimensions, and in particular gender, while respecting the differences of everyone, contributes to the enrichment, creativity and commitment of all and therefore to the overall performance of the Group. By reflecting the diversity of society, the Group better understands the needs of its customers. Maintaining and promoting a respectful and inclusive work environment is essential to attracting, developing, and retaining all talents. The Group’s collective performance and long-term economic development are based on the commitment of its employees. Mitigation of discrimination risks and promotion of an inclusive culture Specifically, the Group has made the following commitments to prevent, mitigate and remedy the risks of discrimination (including harassment) and promote an inclusive culture: since the signing of the first Diversity Agreement within BNP Paribas SA in 2004, the mechanisms have been enriched with each renegotiation to cover all stages of employees’ career paths. The 5th Agreement on Diversity and Inclusion at BNP Paribas SA in France, which came into force on 1 October 2020, is applicable until March 2025 and is currently being renegotiated with the representative trade unions. The Group’s companies in France are part of the same voluntary approach to define, within the framework of social dialogue, actions in favour of diversity. Agreements to this effect have been signed: professional equality between women and men, integration and retention in employment of disabled employees, employment of seniors, and in the context of negotiations on trade union rights, the situation of employees holding employee representative mandates; the 2014 European Agreement on Gender Equality in the Workplace includes all the key elements of the Group’s policy in this area. These agreements are complemented at Group level by the signing of numerous commitments such as the United Nations Women’s Empowerment Principles (WEP) (2011), the International Labour Organization’s Global Business and Disability Network Charter (2016), the United Nations LGBT Standards (2017) and the OneInThreeWomen Charter (2018); the Global Agreement signed in 2024 with innovative elements in terms of parenthood and the fight against domestic and intra-family violence. More broadly, all of the Group’s entities(70) offer training and awareness-raising actions in the fight against discrimination and the promotion of diversity and inclusion. The General Management regularly monitors and actively supports the deployment of diversity, equality and inclusion actions. The personal commitment of the Group’s Chief Executive Officer is notably illustrated by its participation to several initiatives (Club 21e Siècle, OneInThreeWomen charter, #JamaisSansElles charter, OUTstanding role model). Commitment to fair and inclusive treatment in HR processes These commitments are embodied on a daily basis, particularly during the main stages marking the career path of employees, such as recruitment, training, mobility, compensation review and career development. The Group’s employees are therefore required: to ensure fair treatment of candidates during the recruitment process; to systematically base their judgement on objectively assessed skills; to guarantee equal opportunities; and to define the conditions of remuneration in a fair and equitable manner. The titles and terms used are chosen to allow everyone to apply, regardless of gender. The selection process is based on criteria of skills, qualification and experience. Regarding fair treatment during performance reviews, the Group’s Professional Path Policy establishes the framework to ensure that all employees have the same opportunities for professional development, based solely on skills, experience, performance and professional qualifications. In addition, in accordance with the Group’s Compensation policy, the compensation review process is guided by the general principle of equal treatment, and the need not to introduce any discriminatory criteria, notably gender, according to the applicable regulation. Implementation of policies in the event of incidents of discrimination To implement these policies, the Group has established specific procedures to prevent, mitigate and correct discrimination, while promoting diversity and inclusion. The Group has set up a confidential reporting system for incidents of discrimination and harassment(71). Each report is rigorously investigated with appropriate corrective measures, including incidents and complaints related to respect for persons. In the event of proven harassment, appropriate measures are immediately put in place to put an end to the situation. Medical, psychological, social, managerial and HR support is offered to victims, as well as referrals from third parties to support them legally if necessary. 2.bProcesses for engaging with own workers and workers’ representatives about impacts As part of its due diligence process, BNP Paribas engages directly with its employees and their representatives on the material impacts that affect them or could affect them. This dialogue with workers is based on a number of tools, the description and quality assessment of which can be found in chapter 7.1.1 General Disclosures, 2.b Interests and views of stakeholders. This dialogue is overseen by the Group’s governance bodies as detailed in chapter 7.1.1 General Disclosures, section 1.a Role of the administrative, management and supervisory bodies in sustainability. As an extension of the commitments made in 2018 by the Group with UNI Global Union in the Global Agreement(72), the Group has renegotiated a new agreement which was signed in November 2024 for a period of 4 years. This agreement is concluded with the contribution of the European Federation of Executives of Credit and Financial Institutions (Fecec); members of the European Group Works Council Bureau; representative trade unions at the BNP Paribas Group level in France. This agreement covers seven themes relating to fundamental rights at work and the establishment of a global social pillar, applicable to all Group employees. In its chapter 1, it deals in particular with Social Dialogue within the Group and, in chapter 2, with the whistleblowing process. 2.cProcesses to remediate negative impacts and channels for own workers to raise concerns General approach and remediation procedures The Group has set up a whistleblowing system governed by the Group Whistleblowing System procedure, in accordance with the provisions of the Sapin II and Waserman laws(73). This system allows employees to report in good faith crimes, offences, threats, serious harm to the public interest, serious violations of international standards, and violations of the Group’s Code of conduct. When a material negative impact on employees is identified, BNP Paribas undertakes to provide or contribute to the appropriate remediation and evaluates the effectiveness of the measures taken in this regard. Specific channels set up to exercise the right to alert The Group is very attentive to the concerns of customers, employees, shareholders, suppliers and society as a whole. The Group is committed to listening, understanding and seeking to address the concerns raised by its stakeholders in a fair and effective manner. Thus, employees are required to report any actual or suspected breach of the Code of conduct, the Group’s policies and procedures or regulations. They can send their report via a single secure platform on all subjects, including those relating to respect for persons. Any suspicion by an employee of the Group of serious or potentially serious violations of human rights and fundamental freedoms, the health and safety of persons, and the environment may be reported through this whistleblowing system, except in the case of regulations that would prohibit it at the local level. The whistleblowing system is also accessible to external third parties on the BNP Paribas Group’s institutional website. System for processing reports related to respect for persons The Group proposes a system for processing reports made by whistleblowers regarding professional behaviour contrary to the provisions relating to respect for persons, including cases of discrimination and moral or sexual harassment. Reports are treated confidentially and follow a structured investigation process by independent experts(74). Finally, the Group undertakes to take, as soon as facts are proven and after objective investigations, disciplinary and/or corrective measures, individual or collective, adapted in their content and form to local regulations. Support and follow-up are provided for victims and can also be offered to perpetrators of inappropriate behaviour. Evaluation of efficiency and employee trust Controls The whistleblowing system is subject to control plans. First-level checks are carried out by Compliance to verify access to whistleblowing channels and compliance with confidentiality and with the alert handling procedure. Second-level checks are carried out by an independent team to assess the effectiveness of the implementation of the whistleblowing system. In addition, the control system of the HR function makes it possible to follow up on historical incidents that have occurred and may have an impact on employees. Depending on the incidents reported, action plans are implemented, which may include strengthening controls when necessary. Report to the General Management and the Board of directors A detailed report on alerts is produced semi-annually by the Group Referent. This report covers all alerts received, with quantitative and qualitative analysis of the data. It is presented annually to the Compliance Committees, the Group’s Executive Committee and the Board of directors and the number of alerts and sanctions is published in this report. Employee survey Finally, the Group regularly conducts employee surveys to assess employees’ level of knowledge and trust in the mechanisms for reporting their concerns and, if necessary, remedying them. For example, the results of the 2023 Conduct & Inclusion(75) survey showed a high level of employee adherence to the values and behaviours set out in the Code of conduct on the Conduct side. In addition, 93% of respondents say they have “a good knowledge” of the channels that allow them to report alerts. 2.dTaking Action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions To respond to material impacts, the Group is implementing various actions: promoting an inclusive culture; preventing discrimination, harassment and violence at work; a strong social protection framework. To respond to material risks, the Group is implementing actions including in particular: the global health and well-being at work programme, We Care; a favourable work environment to prevent psychosocial risks. In addition, in order to support material opportunities, the Group is implementing numerous actions in regard to: professional equality; promotion of work-life balance by encouraging its employees to devote time to civil society; training and skills development, notably in order to ensure its employees’ employability. The actions implemented are most often part of a short-term approach, as they are an integral part of the processes and cycles deployed annually by the HR function (listening to employees, training actions, performance review, compensation review process, internal mobility, preventive health and well-being actions at work, etc.). Promoting an inclusive culture The Inclusion Days Awareness campaigns around inclusive culture have intensified in 2024, with a wide range of formats, face-to-face or online: interactive conferences, round tables, podcasts, screenings and replays. Throughout the month of October 2024, the HR Diversity, Volunteering, BNP Paribas Foundation, Engagement teams and employee resource groups highlighted professional equality, prejudices and stereotypes, role models, intergenerational, volunteering, disability, financial and digital inclusion, mentoring, health and well-being at work. This 2024 edition reached more than 22,000 participations in some forty countries, including France, confirming its great success with nearly 200 events and solidarity actions organised. The 2023 Conduct & Inclusion survey: broad employee support for the Group’s Diversity & Inclusion policy Listening to employees with the second edition of the Conduct & Inclusion survey showed in 2023 a broad support of the Group’s Diversity & Inclusion policy. With stable results and an overall positive opinion rate of 83% on the Inclusion component of the survey, 87% of respondents said they “can be themselves at work without worrying about how they are accepted”. Two topics are more behind: equal opportunities in professional development and a more critical perception of the 50+ on the fair treatment of employees regardless of age in France and Italy. Action plans have been implemented in 2024 in these two countries with projects on intergenerational topics. Preventing discrimination, harassment and violence in the workplace As part of the “Respect for Persons” policy aimed at preventing discrimination, harassment and violence in the workplace, the Group has implemented several actions including measures to inform and raise awareness among employees and managers as well as to professionalise the Human Resources line. Prevention actions include: a reminder of the principles of the Code of conduct concerning respect for persons, with a mandatory biannual awareness-raising module; a module entitled “Diversity, Equality & Inclusion” dedicated to non-discrimination (including different harassment situations) included in the mandatory Conduct Journey training addressing unconscious biases and stereotypes. The Group also provides awareness programs on stereotypes and unconscious bias for almost all Group employees(76); the assignment of an annual objective relating to compliance with the Code of conduct to all Group employees, which allows managers to assess their teams during their performance review and to report any breach with regard to the “Respect for Persons” policy; raising awareness of the importance of reporting any abnormal situation and presenting the protections of whistleblowers as well as a reminder of the whistleblowing channels and the methods for handling alerts, including post-investigation and disciplinary measures; training managers on their roles and duties according to the Code of conduct, as well as on upward and downward communication, especially in a hybrid work context, and the Group Management Principles(77) reaffirming the central role of the manager as a relay of its strategy. These actions are adapted to local regulations to ensure optimal protection for the Group’s employees. Remediation actions involve several steps: collection of alerts relating to respect for persons: whistleblowing is carried out via a unique and secure platform accessible to the Group’s employees as well as to the entire value chain, including non-employee workers. Before accessing it, employees can contact a trusted person to discuss their difficulties. This person of trust can be their manager or another manager, their HRBP or any person from the HR line, a Diversity, Equity and Inclusion referent, a social or medical actor, a staff representative, when these people exist locally or via the Compliance Function’s alert channel. The Group guarantees the strict confidentiality of the identity of the author of the report, the persons involved in the report and the information collected; initial alert analysis: an immediate analysis of the alert is conducted to assess the situation and determine the appropriate course of action. If necessary, temporary emergency measures are taken, such as changing the working environment, changing the hierarchical link, offering social and/or medical support; interviews and investigations: interviews with the alleged victim and other persons involved are conducted to establish the facts alleged in the alert; investigation report: if an investigation has been carried out, a detailed report is drawn up and validated, presenting the findings on the situation; restitution of the findings: during an interview with the alleged victim and a separate interview with the person concerned, the statement of the facts noted, whether substantiated or not, is presented to them. Remediation actions include: disciplinary and accompanying measures: as soon as the analysis of the alert and the investigations carried out have established inappropriate behaviour or situations requiring action, appropriate measures are taken, mainly individual against the perpetrators of inappropriate behaviour, including disciplinary measures; support measures can also be put in place for the whistleblower, the alleged victim, the person targeted and the work group: a proposal for a change of position or manager, HR support for the collective, managerial support, medical and/or psychosocial support, mediation, new awareness of the Code of conduct and the provisions on respect for persons; follow-up over time and protection against retaliation: The people who have been involved in the processing of the alert are subject to appropriate follow-up by the HRBP(78) and managers. Whistleblowers in good faith are protected from retaliation. Strong and advantageous social protection framework The Group is implementing various initiatives and actions, notably through the Global Agreement, to continuously improve the well-being and social protection of its employees: fixation of a global social floor offering additional social benefits adapted to local regulations and practices through its 2018 Global Agreement, in addition to the legal and contractual provisions: employees benefit from social protection in terms of healthcare, incapacity, disability and death insurance; global floor in regard to social protection for maternity leave and flexibility days. The new 2024 Agreement strengthens this protection by guaranteeing a minimum of 6 days of paid paternity leave and settling-in leave. Depending on the case, these coverages come from either a state or an insurance scheme, or a combination of the two, depending on the regulatory context of each business line and country; creation of a joint committee in accordance with the Agreement responsible for monitoring the implementation of this agreement and the commitments made, identifying good practices and, where appropriate, actions to promote them. It also meets in order to contribute to the continuous improvement of the HR component of the Group’s vigilance plan. An overall review of the implementation of the 2018 Global Agreement is carried out annually and it highlighted the strengthening of the global social floor since its signing: 100% of employees can benefit from paid maternity leave of a minimum of 14 weeks and almost all employees can benefit from incapacity, disability, death and healthcare coverage. In addition, in accordance with the recommendations of the 2018 Global Agreement, 85%(79) of employees can now benefit from a minimum of 6 days of paid paternity leave. The We Care programme Since 2022, the Group has launched a global programme in terms of health and well-being at work, called We Care, under the aegis of the Group Head of Human Resources. This programme offers, in addition to the elements of the global social floor of the Global Agreement resulting in insurance schemes: death, incapacity, disability, healthcare, and minimum maternity and paternity leaves, a harmonisation of health through: a listening and psychological support system; a preventive health check-up offering allowing employees to take control of their own health and the Group to build appropriate health prevention plans; support for employees with long-term illnesses. This programme focused in 2024 on three parts: mental health issues through a listening and psychological support system with the implementation of several initiatives to prevent and mitigate potential negative impacts on its employees: Employee Assistance Programmes: 93%(80) of the Group’s employees are covered by these systems, in order to better manage their mental health on a daily basis as well as in the case of traumatic events (terrorist attack, climatic event, etc.). This rate has increased since 2023 (84%), in line with the target of 100% coverage of the Group’s employees as included in the new 2024 Global Agreement, programmes supporting employees in all crisis situations: psychological support is provided by a company specialising in psychosocial risks to employees wherever they need it(81), notably in France with a psychological support phone line dedicated to serious events within a team, training actions on the prevention of stress at work: the European Agreement on the Prevention of Stress at Work signed in January 2017 defines principles and a common base, but also specifies the means to be implemented (information, awareness-raising, evaluation, training, support, communication). Worldwide, training actions related to the prevention of stress at work are offered to almost all employees(82). A large number of entities covering more than three-quarters of employees(83) systematically incorporate stress prevention training into managerial training; the offer of preventive health check-ups on a voluntary basis. This assessment will allow employees, via a digital questionnaire, to answer questions relating to their mental and physical health. They will receive a written summary that will allow them to assess their overall state of health, and to receive appropriate advice. In certain high-risk situations, employees will be offered a digital appointment with a health professional. This assessment will be offered in France at the beginning of 2025, and gradually rolled out in countries that wish to do so; support for long-term illness through a We Care kit in order to open discussion and to propose a change of posture towards openness, respect and benevolence. This kit is made up of several documents for several types of actors: the employee affected by the disease, their manager, their colleagues, their HR, the caregivers. It covers the phases of the announcement of the disease, the treatment phase, the preparation for the return to work and the return to work in the long term. This kit has already been the subject of a variation in France through sheets available under the intranet, and a film. Portugal, Italy and Spain are in the finalisation phase to offer it to their employees by the beginning of 2025. A work environment favourable to the detection of psychosocial risks Managers play a crucial role in the prevention of psychosocial risks by detecting their manifestations and organising appropriate actions. They are on the front line to observe certain unusual signs and changes in attitude in employees, such as changes in individual behaviour, intense emotional reactions, isolation within the work group, a lack of concentration, or overinvestment in work. Managers should also pay attention to comments in professional reviews that indicate dysfunctions or relationship difficulties. Manifestations can also concern the work group and be detected indirectly, via information from a social or medical actor, a colleague or a member of the team, or following interventions by the labour inspectorate or regulatory authorities. Collective signs include an atypical frequency of individual reports of psychosocial risks and/or alerts, a high frequency of visits to prevention and occupational health services, a high or increasing rate of absenteeism, an increased turnover, or an increase in complaints and litigation at the initiative of the employees. Remedial actions focus on the analysis of the manifestations of psychosocial risks and on the implementation of appropriate actions to solve the problems identified. This includes the follow-up of reports from employees and the organisation of corrective actions by managers in collaboration with occupational health services. Thus, a psychological assistance system allows in this case to benefit from permanent listening and psychological support in the event of professional or personal difficulties. The effectiveness of BNP Paribas’ actions and initiatives is monitored through several key indicators such as absenteeism rates, turnover rate, and the results of employee satisfaction surveys. Employee feedback is considered via internal barometers (Pulse or Quality of Life at Work surveys), direct feedback or HR alerts. The Group measures the level of stress and well-being of its employees through an annual survey in France. The rates measured in 2024 show an increase in satisfaction with the quality of life at work, demonstrating the positive impact of the action plans put in place (training, transparent sharing of organisational changes, development prospects, etc.). The overall stress rate at BNP Paribas SA has decreased and the well-being rate has increased. To prevent psychosocial risks related to mental health and sedentary lifestyle risks specific to the banking and insurance sector, appropriate advice and measures are offered. Employees have access to procedures and/or awareness-raising programmes on the assessment and prevention of psychosocial risks for all employees and related to a sedentary lifestyle (musculoskeletal disorders) for more than 90% of employees(84). In addition, entities covering 85% of the Group headcount offer public health awareness campaigns, including information and prevention actions(85). In France, themes such as sleep, physical activity, nutrition, stress and addictions, disabling diseases, cancers, musculoskeletal disorders, women’s and men’s health are addressed during the awareness campaigns deployed(86). Finally, the Group is continuing to adapt its working methods with a remote working system in a hybrid working mode, combining on-site presence and remote working, the principles of which are outlined in the new Global Agreement and can be specified locally (for example in France via a Group agreement), with particular attention to the preservation of social ties and work collectives. At the end of December 2024, around three-quarters of employees(87) in Europe were working remotely. The Group supports its employees, in particular with prevention actions (in the form of guides, booklets and training offers) towards managers and employees, intended to help maintain social ties, to fight against sedentary lifestyles or digital fatigue, and to promote work-life balance. Significant actions in terms of professional equality The Group has set itself ambitious gender diversity objectives, particularly in senior management(88), set for 1 or 2 years, and intermediate milestones measured annually. The year 2024 already shows significant progress. For example, among the 90 members of the G100(89), the Group has 37 women in management positions in strategic business lines or functions, 8 of whom are also members of the Group ExCo(90). With 174 nationalities present within the Group, including 13 within the G100, BNP Paribas has been working for several years to promote diversity of origins and professional equity. At the end of 2024, the Group has reached 39% women in the Senior Management Position(91) population, 37% in the Leaders for Change(92) population. In addition, 40% of the Group’s managers are women and around a third of managers of managers (middle management) are women(93). In line with the strategic plan and in line with the Group’s desire to develop and promote women’s career paths, the Group is committed to gender diversity within business lines that are structurally unbalanced in terms of gender, particularly in regard to recruitment and retention. Regarding market activities within Corporate and Investment Banking, an action plan is underway: it is based on “early careers” actions (interns, work-study contracts, VIE(94) and Graduate Programme) and, more broadly, on recruitment, with specific attention paid to Talents(95), Senior Managers and their successors, as well as individual or collective development programmes around these issues. Regarding the IT professions, the Group aims to be one of the champions in recruitment and the share of women in this line. Since 2020, the Group has continued to develop its global gender diversity programme in the IT professions, entitled Women in IT, for which a new ambition was set in 2024: 35% of women in the IT line(96) across the Group by 2030, with a milestone of 31% by the end of 2026. As of 31/12/2024, 30% of the IT line are women. In addition, as part of its policy on professional gender equality, the Group has been committed to the fight against gender-based violence since 2018. Because it mainly affects women and inevitably impacts professional life, gender-based violence is both a factor of inequality at work and an obstacle to professional gender equality. Since 2018, BNP Paribas has been a member of OneInThreeWomen, the first European network of companies committed to combating violence against women and joined its Executive Committee on 1 January 2021. The OneInThreeWomen network aims to equip employers to raise awareness and better support female employees who have been victims. In line with the Group’s commitment to the fight against domestic economic abuse, it offers employees who are victims of this violence HR support, as a social support actor and the listening system. This theme has been the subject of a specific innovative commitment by the Group by including the fight against domestic and intra-family violence in the new Global Agreement signed in 2024. A pioneer among CAC 40 companies and the financial sector by signing the #JamaisSansElles Charter in 2019, BNP Paribas continues its mobilisation and has nearly 700 signatories (70% of whom are men), from management bodies in more than twenty countries, committed to no longer participating in round tables with at least three speakers and which do not include the presence of at least one woman. After 5 years of the Group’s commitment, BNP Paribas remains the CAC 40 company with the largest number of #JamaisSansElles signatories in France and worldwide. Work-life balance: actions for civil society The Group intends to act for more sustainable and better shared growth by enabling its employees to commit to civil society by contributing during their working hours to the efforts of associations for a more inclusive and ecological world. Thus, the global solidarity programme #1MillionHours2Help structures the Group’s ambition to act in favour of civil society (NGOs, associations) by highlighting the skills of its employees. The programme includes end-of-career corporate volunteering, which is part of the BNP Paribas SA Diversity and Inclusion Agreement in France, which has been extended until March 2025. In 2024, a total of 686,422 hours of work or recovered hours were carried out for solidarity actions in favour of civil society under the #1MillionHours2Help programme, i.e. a total of more than 1.34 million hours over two rolling years, constantly increasing, and exceeding the target set by the Group of one million hours. Finally, in July 2023, BNP Paribas signed an agreement with the Ministry of the Armed Forces for the Group in France reaffirming its commitment to employees who are part of the operational reserve. In October 2024, the Group also signed an agreement with the Ministry of the Interior to promote the availability of its employees serving as volunteer firefighters. In addition to the legal provisions, BNP Paribas authorises its reservist employees and volunteer firefighters to be absent from their working hours for up to 15 working days per calendar year, so that they can fully commit to their civic mission, while maintaining their full salary. Skills development and employability enhancement The Group supports employees in a context of profound transformation in the banking sector. This support takes the form of anticipating skills needs, setting up training and development programmes adapted to the businesses and jobs of tomorrow and implementing an active internal mobility policy. Skills management and anticipation of tomorrow’s needs To support the Group’s transformation and the development of employees on the various pillars of the strategic plan: new skills were created on sustainable finance with a new Sustainability professional family in 2023. In 2024, in the field of Tech, nearly 150 new tool skills were created in the fields of Artificial Intelligence, data and IT; a new page dedicated to skills has been made available to employees, managers and HR to identify the skills acquired and those to be developed and to self-evaluate. At the end of this self-assessment, the employee can select the skills to be completed in their About Me profile and enrich their Personal Development Plan; the Strategic Workforce Planning exercise, a joint approach between HR and the business lines aiming to identify skills needs over a three-year period, makes it possible to offer employees adapted paths (skills development or retraining), notably towards jobs in short supply and the skills of tomorrow. These exercises have also made it possible to create a new offer called “JobBoost” for employees wishing to retrain for positions in short supply via an immediate start date combined with work-study training in their new job. The first classes were implemented in 2023 in the areas of IT and HR and, in 2024, in project management; in France, in particular to meet its needs regarding employment in tension, the Group maintained its commitments in terms of training and integration of young people in 2024 by recruiting more than 2,000 work-study students (2,500 in 2023) and 1,500 interns (1,500 in 2023), to which have been added 250 VIE on a mission (300 in 2023). In September 2024, B-School by BNP Paribas, which held its fourth academic year with nearly 400 students has expanded its offer of diplomas with the development of its bachelor’s degree in several French cities and the opening of a new diploma dedicated to computer production. The 2 IT diplomas are made up of 49% women, thus contributing to the gender diversity of the IT line; lastly, the Group has an immersive course called Graduate Programmes for young graduates (with at least 2 years of professional experience), offering personalised support and a specific training offer. The overall offer of this programme is structured around the Group’s strategic priorities and is aimed at finance, tech and transformation profiles, cross-functional jobs. Development on the job: the importance of time for discussion between employees and managers At the heart of career path management and at the service of employees, managers and HR, the About Me platform aims: to identify the skills of all employees: at Group level, in December 2024, more than 130,000 employees (including around 53% women) declared their skills; to support employees in their development and professional evolution; to streamline interactions between employees, managers and HR, thus promoting cross-functional mobility; to complete the annual performance review process(97). The performance review process, which is systematic for all employees(98), is digitalised and simplified in the About Me tool: it starts at the beginning of the year with the definition of individual, collective and/or cross-functional objectives. These objectives must be clear, achievable, defined over time, measurable and adapted to the nature of the activity and the responsibility of the position. The practice of continuous feedback helps to identify needs in terms of skills development throughout the year and to enrich the Personal Development Plan. The annual performance review is a privileged moment of exchange between the employee and their manager: it allows them to review the past year in relation to the objectives set, to define development opportunities and to project themselves into the year to come. Career Development Internal mobility within the Group is anchored in the Group’s culture. It is an essential vector for the development of skills “on the job”. Thus, in 2024, the Group recorded 20,693 internal mobilities, 25% of which were transversal(99). To support the professional development of employees, in 2024, the Group offered the second edition of the Career Days in 2024 deployed in 46 countries, which allowed employees to gain a better understanding of the Group, assess their skills and training needs, and work on their professional project. With a strong acceleration in participation in 2024, more than 27,800 participants took part in more than 800 events around artificial intelligence, tech, agile, sustainable finance with sessions also focused on skills, open positions and HR tools. Forging a culture of continuous development Strengthening the learning culture and improving the learning experience remain the 2 major pillars of the Group’s continuous learning strategy. This strategy is also based on the Strategic Workforce Planning exercises carried out in the entities and with the lines. This approach makes it possible to support and anticipate the development of skills in line with the needs of employees while supporting the strategic plan and the People Strategy. The strategic plan has positioned Technology and Sustainability as development priorities. Regarding the Technology axis, several cross-functional training actions, at the initiative of the Group but also of the entities, have made it possible to support the development of all employees as well as experts, with a more focused angle this year on AI and generative AI in addition to Data. To measure its development in skills in the Technological field, the Group monitors the following indicator: the number of Group employees who have completed at least 7 hours of training in the technological field was 15,014 in 2024 (9,948 in 2023). Regarding the Sustainability axis(100), the Sustainability Academy, launched at the end of 2022, continues to develop. In 2024, a strong emphasis was placed on training employees on an “S-Basics” module allowing a solid appropriation of Sustainable Finance, as well as a continued deployment of the Climate Fresk internationally. In 2024, 77,270 employees completed at least one training course from the Sustainability Academy, with an average of 1.7 hours of training per person. Since its launch at the end of 2022, more than 130,000 Group employees were trained through the Sustainability Academy. In addition, as part of the Sustainability Academy, the teams are mobilised by participating in fresks(101), in the form of collaborative workshops facilitating the transition to action. They have thus made it possible to raise awareness of climate and biodiversity issues among employees in 53 countries, among entity and country Executive Committees, as well as among shareholders. More than 12,000 employees (15,770 in 2023) participated in these workshops in 2024. Development programmes dedicated to the Group’s Leaders and Talents Finally, as the Group’s leaders (Top Executives (LfC), Senior Management Position (SMP), Talents (LfT)) are key to contributing to the success of the strategic plan, a global training offer is offered to them, in particular on sustainability issues. These issues are all the more important for them as the achievement of the objectives set by the Group in its CSR dashboard(102) is a condition for the payment of 20% of the amount allocated to them under the Group’s loyalty plan(103). Thus, more than 4,500 out of the 7,000 Talents have benefited from dedicated development schemes, notably on the understanding of strategic sustainability issues. In addition, nearly 60% of Top Executives have benefited in 2024 from certifying programmes on sustainable finance. Since the launch of the Talents programme, the share of women in this population has increased from 32% in 2015 to 53% in 2024, creating a pool that is essential for gender diversity in management bodies(104). In 2024, 70% of LfC were sourced from the Talents population. Resources allocated to managing these material impacts The 4,500 employees of the HR line are organised around an HR function at Group level and local HR at the level of the various business lines and territories and governance with an Executive Committee bringing together the Group managers of the function and the HR managers of the main business lines and territories twice a month. The roles and responsibilities of each person between the Group function and the local line are defined in a charter. The Group HR function is responsible for defining the People Strategy as well as all HR policies (recruitment, career path, training, evaluation, compensation, diversity, respect for persons) in compliance with laws and regulations and is responsible for supporting the HR line within the business lines and territories in their deployment and implementation. Local HR is responsible for their deployment and implementation, while listening to employees and partnering alongside the business lines to ensure the implementation of their own strategy. Employees in the HR line are also responsible for leading and implementing policies on the promotion of diversity, implementing policies on health and quality of life at work, on the prevention of psychosocial risks and on the treatment of behaviour that does not comply with the Group’s policy on Respect for Persons. They are also responsible for managing the impacts of the HR policies put in place, in particular by deploying the generic control plan of the function and managing HR risks at the local level as well as by implementing all the actions to control them locally. 3.METRICS AND TARGETS 3.aTargets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities To reduce the negative effects of psychosocial risks, the Group aims to ensure that all Group employees are covered by listening and psychological support systems. In addition, all Group employees, wherever they are, benefit from the commitments and guarantees made by the Group under the new Global Agreement. Regarding gender diversity at all levels of the organisation, the Group has set ambitious targets of 40% women by 2025 on the Group’s Executive Committee (ExCo), the G100, Leaders for Change and Senior Management Position (SMP) populations, as well as 50% women among the Leaders for Tomorrow (“Talents”). In addition, as part of the strategic plan, developed considering the feedback of a wide variety of employees(105), BNP Paribas has set objectives for the end of 2025 corresponding to the three social indicators of the Group’s CSR dashboard. They respond to diversity and inclusion issues and support the Group’s ambitions to attract and retain a highly qualified and employable workforce. The three indicators related to the Group’s social responsibility and the progress made by the Group are presented in the table below. Objectives have been set for 2025 on these commitments and intermediate measures to achieve these objectives are monitored and communicated annually. These objectives, their definition and the methodology for determining them have remained stable over time. ➤TABLE NO. 20: Social indicators of the Group’s CSR dashboard Pillar Indicators Policies Target 2025 2024 Social responsibility Share of women among the SMP population (Senior Management Position) Diversity Governance 40% 39% Number of solidarity hours performed by employees over two rolling years (#1MillionHours2Help) Global Agreement 1,000,000 1,338,394 (2023 + 2024) Share of employees who completed at least four training courses during the year Professional Path Policy Global Agreement 90% 99% These objectives have been defined considering the major CSR issues identified in 2021 by employees in the materiality matrix and considering: ambitious objectives for gender diversity in senior management such as required in particular by French legislation by 2029; the number of total hours allowing to mobilise, on average, for solidarity purposes, the equivalent of about half a day’s work per Group employee over two years; a minimum percentage of completion of training per employee, the final percentage of which may vary from one year to the next depending on the workload and strategy of the business line in which the employee carries out their activity. These themes and some of these indicators are monitored as part of the implementation of the new Global Agreement. The achievement of these targets in relation to social responsibility is monitored by the second line of defence within the RISK function, and is shared and presented annually to the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) of the Board of directors, which includes two employee representatives and one employee shareholder representative. 3.bCharacteristics of employees The employees detailed below concern all Group employees with a fixed-term employment contract (FTC) or a permanent-term contract (PTC) with one of the companies for which the Group has exclusive control, significant influence and/or for which the Group holds a Human Resources management mandate over its employees. However, they do not include interns or work-study students. In 2024, there were 1,674 interns in the Group (1,759 in 2023), including 490 in France (489 in 2023 in France) and 3,752 work-study students, mainly in France (96%) (3,841 at the end of 2023, mainly in France (96%)). The latter benefit from the same working conditions as employees on fixed-term contracts. The employees (FTC and PTC) are accounted for where they carry out their activities and where their cost is incurred. They are monitored quarterly by the HR teams and presented to the Group’s General Management based on the data tracked in a Group tool and at the end of a data validation process by each of the Group’s business lines and functions. They are recorded at the end of the period (tables 1 to 4 below). ➤TABLE NO. 21: EMPLOYEES BY REGION (HEADCOUNT) 2024 2023 EMEA(1) 153,892 155,685 Asia Pacific 19,638 21,363 Americas 8,088 9,114 TOTAL 181,618 186,162 Europe, Middle-East, Africa. ➤TABLE NO. 22: EMPLOYEES BY COUNTRY (REPRESENTING at least 10% OF its TOTAL number of employees) 2024 2023 France 55,936 56,830 TOTAL 181,618 186,162 France is the only country that accounts for more than 10% of the Group’s headcount. At the end of 2024, the Group is present in 64 countries (63 countries in 2023). The 2.4% decrease in headcount compared to 2023 is mainly due to the sale of Sharekhan in India and the BNP Paribas Personal Finance business line in Mexico and Hungary. On a like-for-like basis, the number of employees remains stable (-0.5% compared to 2023). ➤TABLE NO. 23: EMPLOYEES BY TYPE OF CONTRACT, BROKEN DOWN BY REGION (HEADCOUNT & FTE) 2024 2023 EMEA Asia Pacific Americas TOTAL EMEA Asia Pacific Americas TOTAL Number of employees Headcount 153,892 19,638 8,088 181,618 155,685 21,363 9,114 186,162 FTE(1) 150,240 19,627 8,085 177,952(2) 152,199 21,348 9,108 182,656 Permanent employees (PTC) Headcount 150,151 19,501 8,055 177,707 151,485 21,221 9,093 181,799 FTE 146,547 19,493 8,052 174,093 148,063 21,210 9,087 178,360 Temporary employees (FTC) Headcount 3,741 137 33 3,911 4,200 142 21 4,363 FTE 3,693 133 33 3,859 4,136 139 21 4,296 Number of non-guaranteed hours employees FTE: Full-time equivalent, this refers to the number of full-time equivalent (end of period), i.e. they are counted in proportion to their contractual working time. All figures are rounded to the nearest integer (an FTE working at 80% counts as 0.8). The full-time equivalent headcount of the fully consolidated entities corresponding to financial FTEs amounted to 175,853 at the end of 2024 (see chapter 8.6 Data by country). More than 80% of the Group’s employees are in the EMEA region. Within this EMEA region, nearly 96% of employees operate in Europe. The vast majority of the Group’s employees are on permanent-term contracts (nearly 98%). The Group does not have any employees with non-guaranteed hours. ➤TABLE NO. 24: EMPLOYEES BY working time, BROKEN DOWN BY REGION (HEADCOUNT) 2024 2023 EMEA Asia Pacific Americas TOTAL EMEA Asia Pacific Americas TOTAL Number of employees(1) 153,892 19,638 8,088 181,618 155,685 21,363 9,114 186,162 Full-time employees 138,768 19,597 8,078 166,443 138,807 21,318 9,094 169,219 Part-time employees 13,368 41 10 13,419 13,049 45 20 13,114 The totals include all employees, including those whose working time is not reported. ➤TABLE NO. 25: EMPLOYEES BY gender (headcount & FTE) Gender 2024 2023 Headcounts FTE Headcounts FTE Men 88,095 87,365 90,873 90,241 Women 93,515 90,579 95,289 92,415 Not reported 8 8 TOTAL 181,618 177,952 186,162 182,656 At the end of 2024, 51% of the Group’s employees were women and 49% were men. ➤TABLE NO. 26: EMPLOYEES BY TYPE OF CONTRACT, BROKEN DOWN BY GENDER (HEADCOUNT & FTE) 2024 2023 Men Women Not reported Total Men Women Not reported Total Number of employees Headcount 88,095 93,515 8 181,618 90,873 95,289 186,162 FTE 87,365 90,579 8 177,952 90,241 92,415 182,656 Permanent employees (PTC) Headcount 86,510 91,190 7 177,707 89,146 92,653 181,799 FTE 85,800 88,287 7 174,093 88,541 89,820 178,360 Temporary employees (FTC) Headcount 1,585 2,325 1 3,911 1,727 2,636 4,363 FTE 1,566 2,292 1 3,859 1,700 2,596 4,296 Number of non-guaranteed hours employees ➤TABLE NO. 27: EMPLOYEES BY working time, BROKEN DOWN BY GENDER (HEADCOUNT) 2024 2023 Men Women Not reported Total Men Women Not reported Total Number of employees(1) 88,095 93,515 8 181,618 90,873 95,289 186,162 Full-time employees 85,244 81,191 8 166,443 87,414 81,805 169,219 Part-time employees 1,990 11,429 13,419 1,748 11,366 13,114 The totals include all employees, including those whose working time is not reported. In 2024, 13,419 employees worked part-time, representing 7% of the Group’s headcount (7% in 2023). 69% of them work part-time at 80% or more (69% in 2023). In total, 2% of men and 12% of women work part-time. Movements The Group recruited 16,887 employees on permanent contracts worldwide in 2024 (-19% compared to 2023), including 2,962 in France. With 70% of recruitments in Europe (70% in 2023), BNP Paribas confirms its status as a leading European bank. For the 7th consecutive year, France is the leading recruiting country with 17.5% of the total, followed by India (17.1%), Türkiye (9.8%), Portugal (8.8%) and Poland (5.9%). Two-thirds of the offers open for permanent contracts are accessible to young people entering the labour market. In 2024, more than 17,200 employees under the age of 30 under all contract types were recruited worldwide by the Group, including 9,791 under the age of 25 (PTC, FTC, work-study students, interns). ➤TABLE NO. 28: Leavers (PTC)(106) 2024 2023 Men Women Not reported Total Men Women Not reported Total Total number of leavers 8,766 8,371 17,137 9,910 9,621 41 19,572 Voluntary leavers(1) 5,482 5,024 10,506 6,088 5,914 12,002 Retirement 1,070 1,058 2,128 1,114 1,182 2,296 Dismissal 610 568 1,178 715 627 1,342 Other leavers(2) 1,604 1,721 3,325 1,993 1,898 41 3,932 Resignation and mutually agreed departures. Including, in particular, end of trial periods and death. The decrease in leavers in 2024 (-12.4%) is mainly due to a general decrease in resignations, particularly in France, India and Poland. Of the 17,137 departures in 2024, more than 12,500 were in Europe, including more than 3,700 in France (nearly 3,800 in 2023), and more than 4,500 in the rest of the world (nearly 5,600 in 2023). ➤TABLE NO. 29: TURNOVER RATE 2024 2023 Men Women Not reported Total Men Women Not reported Total Turnover rate (headcount)(1) 10.1% 9.2% 9.6% 11.3% 10.4% 10.9% Turnover rate (FTE) 10.1% 9.2% 9.6% 11.3% 10.6% 10.9% Voluntary turnover rate (FTE)(2) 6.3% 5.6% 6.0% 7.0% 6.5% 6.7% Voluntary turnover incl. retirements 7.6% 6.7% 7.1% 8.3% 7.8% 8.0% Turnover rate, calculated on employees with permanent contracts: (Number of departures in year N)/(Average number of employees in year N). Voluntary turnover rate, calculated on employees with permanent contracts: (Number of resignations in year N + Number of mutually agreed departures in year N)/(Average number of employees in year N) The decrease in the turnover rate, also known as the departure rate, calculated on a like-for-like basis (excluding Sharekhan), is mainly due to the decrease in voluntary departures, particularly in France, India and Poland. Within the Group, employment management is carried out responsibly, by anticipating the adaptations necessary to maintain its economic performance, its capacity for development and therefore employment in the long term. It relies on dynamic internal mobility, a source of skills enhancement, and supported by significant investments in training. Employment management is carried out within the framework of collective agreements concluded at different levels: Global, European and French. In France, in 2022, the new Agreement concluded on the management of employment and career paths renewed and strengthened the commitments made by the Group until 2026. Thus, the Group in France does not carry out any forced redundancies, favouring internal mobility and voluntary solutions for its projects impacting employment. In other countries around the world, economic redundancies are exceptional, in line with the 2012 European Agreement on Employment Management (renewed by tacit agreement for a three-year period) and with the new 2024 Global Agreement on the part relating to “Employment and Skills Management”. 3.cCharacteristics of non-employee workers Non-employee workers, i.e. workers who do not have the status of employees within the company, are those who have either concluded a contract with the company to provide labour (“self-employed workers”) or persons supplied by companies mainly engaged in “employment activities” (NACE code N78). For the Group, they correspond to workers on assignment with a temporary employment agency and working in the Company and present on the last day of the month. The Group reserves the possibility of using temporary work for the execution of a specific and temporary task. It is only used occasionally to replace employees who are temporarily absent (due to illness, maternity or other) or to cope with a temporary increase in the company’s activity. ➤TABLE NO. 30: Non-employee WORKERS 2024 Number of non-employee workers 2,294 They represented 2,294 people in FTE(107) at the end of 2024, including 658 in France. 3.dCollective bargaining coverage and social dialogue Following on from the 2018 Global Agreement, a new Global Agreement was signed on 4 November 2024 between representatives of the BNP Paribas Group Management and UNI Global Union with the participation of representatives of FECEC(108), the European Group Works Council and the two representative trade unions at BNP Paribas Group level in France. This agreement is based on a strong practice of respect for trade union rights, collective bargaining and social dialogue, in particular at European level, through the European Group Works Council and the negotiations conducted at this level. It covers all Group employees, so 100% of the Group’s employees are covered by collective agreements. In addition, the Group has a European Works Council bringing together employee representatives from entities located in all countries of the European Economic Area(109), excluding entities that are not majority-owned. ➤TABLE NO. 31: collective bargaining coverage 2024 2023 % of employees covered by collective bargaining agreements 100% 100% ➤TABLE NO. 32: COLLECTIVE BARGAINING AND SOCIAL DIALOGUE 2024 Collective bargaining coverage Social dialogue(1) Employees – EEA(2) (3) Employees – non-EEA(4) Workplace representation (EEA only) Coverage rate 0-19% 20-39% 40-59% 60-79% 80-100% France EMEA (excluding EEA), Asia Pacific France (100%) Data collected in the Social Reporting campaign, which covers 95% of the Group's employees in FTE as of 31/12/2024. European Economic Area. Countries with >50 employees representing >10% of the total number of employees. Regions with >50 employees representing >10% of the total number of employees. France is the only country that accounts for more than 10% of the Group’s employees. EMEA (excluding EEA countries) and Asia Pacific are the two regions that account for more than 10% of the Group’s employees. In 2024, 1,768 official meetings (1,758 in 2023) were held with employee representatives, including 1,033 in France, illustrating the richness of social dialogue. These meetings led to the signing, in 2024, of 350 collective bargaining agreements within the Group (306 in 2023), including 142 in France, 194 in the rest of Europe and 14 in the rest of the world, reflecting the quality of collective bargaining. 3.eDiversity metrics Gender distribution at top management The Group has set itself ambitious targets of 40% gender diversity at all levels of the company’s top management, whether at the level of the Board of directors of BNP Paribas SA, the Group’s Executive Committee, G100 senior executives, LfC or the Senior Management Position (SMP) population. The SMP population is made up of Group employees holding approximately 3,000 positions considered to have the most significant impact from a strategic, commercial, functional and expertise perspective. Gender diversity within this population is one of the social indicators monitored in the Group’s CSR dashboard. ➤TABLE NO. 33: GENDER distribution at top MANAGEMENT 2024 2023 2025 target (% women) Men Women Total Men Women Total Board members(1) 6 8 14 7 6 13 40% % of Board 43% 57% 100% 54% 46% 100% ExCo members 11 8 19 12 6 18 % of ExCo 58% 42% 100% 67% 33% 100% G100 members 53 37 90 57 35 92 % of G100 59% 41% 100% 62% 38% 100% Number of LfC 317 187 504 389 198 587 % of LfC 63% 37% 100% 66% 34% 100% Number of SMP 1,826 1,151 2,977 1,877 1,109 2,986 % of SMP 61% 39% 100% 63% 37% 100% Board of directors. ➤CHART NO. 7: DISTRIBUTION OF EMPLOYEES BY AGE GROUP AND GENDER In 2024, the Group has 26,573 employees under 30 years old, 108,196 between 30 and 49 years old and 45,060 employees aged 50 and over. The overall average age was 42.1 years in 2024 (41.8 in 2023), 42.3 years for men and 41.9 years for women. The average seniority in the Group was 12.2 years in 2024 (12.1 in 2023), 11.6 years for men and 12.8 years for women. 3.fAdequate wages The Group complies with the minimum wage applicable in all the countries in which it operates. Regarding the adequate wage, the Group defined it as the level of salary(110) that is adequate to cover the basic needs of an employee and their family, particularly in terms of housing, food, health, education, transport, means of communication, and precautionary savings. In order to determine the adequate wage in all the countries in which the Group operates, the Group relies on a recognised player in this field, Fair Wage Network, which provides adequate wage data calculated according to the local context in relation to the country (or within countries, the major cities in which employees work), and various criteria such as the average household size per country (assumption of a household of 2 people with a number of children based on the fertility rate per country), and the average number of people receiving income in the household (statistic defined per country). These adequate wage data are updated annually by Fair Wage Network, they are compared to employees’ fixed remuneration. In accordance with the new commitment made in the November 2024 Global Agreement, 100% of the Group’s employees receive an adequate wage according to the definition above(111). In addition to the salary, employees can benefit, depending on the business, from a variable remuneration that remunerates quantitative and qualitative achievements measured on the basis of observed performance and performance reviews, in line with the objectives set. It is determined in particular according to the results achieved by the business. The salary is also supplemented by a global social floor to which all Group employees have access in accordance with the Global Agreement (see the paragraph Strong and advantageous social protection framework in section 2.c Processes to remediate negative impacts and channels for own workers to raise concerns under this chapter). Among these benefits, the Group has set up retirement and employee savings schemes, in accordance with local legislation and local practices. These schemes complement the mandatory and statutory schemes to which entities contribute for their employees (defined benefit plans or defined contribution plans). In France, employees are involved in the Group’s performance through profit-sharing and incentive agreements schemes. For the 2024 financial year, an amount of EUR 225 million will be distributed to the 63,280 beneficiaries of the entities that are members of the Group profit-sharing agreement in France (compared to EUR 212.6 million to 63,668 beneficiaries in 2023). This amount, based on the Group’s results, in application of a derogatory formula, is 6 times higher than the amount that would result from the legal formula. With regard to incentive agreement schemes, almost all of the Group’s employees in France are covered by an incentive agreement at the end of 2024. The joint incentive agreement between BNP Paribas SA and BNP Paribas Financial Markets associates employees with the financial objectives defined in the framework of the strategic plan. The amount distributed is based on gross operating income, dividends and share buybacks and a CSR component, allowing employees to be associated with the results in the same way as the shareholders. Under this agreement, an amount of around EUR 182 million will be distributed among 46,067 beneficiaries for the 2024 financial year (in 2023, EUR 164 million were distributed to 46,606 beneficiaries). Elsewhere in the world, comparable measures are being deployed, notably at BNP Paribas Fortis in Belgium (in 2024, EUR 24 million were paid to all employees as part of the so-called “collective” variable remuneration) or in Luxembourg (an incentive scheme bonus of nearly EUR 3.3 million was paid for 2023). In terms of collective savings, in France, the diversified management offer provided to employees in the Group’s savings schemes (PEE, PERECO and PERO) – including investment vehicles integrating ESG criteria, some of which are labelled Socially Responsible Investment (SRI) – makes it possible to cover the different profiles of savers, of investment horizons, as well as of different levels of risk and geographical areas of investment. In addition, most of the Group’s companies in France support their employees’ voluntary savings efforts through savings plans (PEE and PERECO) with a cumulative contribution of more than EUR 70 million paid in 2024. 3.gSocial protection Under the Global Agreement, all employees benefit from a generally favourable framework in terms of social protection, in particular with regard to events related to illness and parental leave. For other events such as unemployment and retirement, coverage depends mainly on the existence of state schemes in the countries in which the Group operates. At least 88% of the Group’s employees are covered, within the framework of public programmes or benefits offered by the company, by social protection against loss of income due to all events such as illness, unemployment, accidents at work/disability, parental leave, retirement(112). Only a few Group entities in only 3 of the 64 countries in which the Group operates do not cover their employees against loss of income due to unemployment. In these 3 countries, the 4 other events that can lead to the loss of income are covered for all employees. ➤TABLE NO. 34: Social protection Country Type of events Types of employees not covered Hong Kong Unemployment PTC and FTC India Unemployment PTC and FTC Singapore Unemployment PTC and FTC In France, the Group also offers comprehensive supplementary social protection coverage through mandatory health reimbursement schemes to employees and flexible incapacity, disability and death insurance in the form of a single contract offering each employee the possibility of adapting their coverage to their personal situation. In addition, flexible benefits systems allow employees to define, to a certain extent, their level of coverage on a range of benefits offered focused on long-term employability and offering sustainable choices. These systems are deployed notably at BNL in Italy, BNP Paribas Fortis in Belgium and BNP Paribas in the United Kingdom. The Group ensures that employees have access to information on the benefits, offers and other schemes provided to them in the Group’s various entities. 3.hPersons with disabilities ➤TABLE NO. 35: Percentage OF EMPLOYEES DECLARED as having a disability(113) 2024 Men Women Total EMEA 2.7% 4.6% 3.7% Asia Pacific 0.3% 0.1% 0.2% Americas 1.2% 1.7% 1.4% Total 2.3% 4.1% 3.2% As of 31 December 2024, the Group had 5,587 employees with disabilities in 28 countries, including 3,460 in France, representing an overall Group employment rate of employees with disabilities in relation to the Group’s overall headcounts of 3.2%, up compared to the previous year (2.7% in 2023). 248 employees with disabilities were recruited in 2024 compared to 235 in 2023. In France, as part of the renewal of the Disability Agreement for three years (2023-2025), BNP Paribas SA has recruited 57 candidates with disabilities. 2,120 job retention actions were carried out in 2024. The employment rate of employees with disabilities remained at 5.3% in 2023 (due to a change in scope). 3.iTraining and skills development metrics ➤TABLE NO. 36: PERFORMANCE review AND CAREER DEVELOPMENT 2024 2023 Men Women Total Men Women Total % of employees who participated in regular performance and career development reviews 96% 96% 96% 96% 96% 96% The percentage of employees who participated in a performance review was calculated on the basis of the population eligible for a review(114). ➤TABLE NO. 37: TRAINING 2024 2023 Men Women Total Men Women Total Average number of training hours per employee 26 28 27 23 25 24 Out of which average number of training hours per employee (excluding mandatory training) 22 24 23 19 21 20 The average number of hours of training was up (+12% in 2024) due to the improvement in development offers and the employee experience in terms of training courses. Due to the nature of the Group’s activities, employees must complete mandatory training courses each year, in particular for regulatory reasons, notably relating to the Code of conduct. 3.jHealth and safety metrics(115) At the end of 2024, 96% of the Group’s employees were covered by a health and safety management system. ➤TABLE NO. 38: HEALTH AND SAFETY 2024 2023 Number of fatalities as a result of work-related injuries and work-related ill health 0 2(1) Number of recordable work-related accidents 655(2) 564 Rate of recordable work-related accidents (frequency rate: number of accidents per 1 million total worked hours) 1.27 1.07 Number of days lost due to work-related injuries and fatalities from work-related accidents, from work-related ill health & fatalities from ill-health (severity rate: number of days lost per 1,000 total calendar hours) 0.07 0.05 These deaths concern only employees. Given the confidentiality of the data, the link with work cannot be disclosed. The increase in the number of work‑related accidents is due in particular to a rise in reports initiated directly by employees and accidents reported following customer misconduct. In accordance with the law of 2 August 2021, the Group’s autonomous Occupational Health and Prevention Service (OHPS) in France, which provides medical follow-up to 40,000 employees, is subject to an approval procedure issued by the DRIEETS(116), the supervisory body that assesses the compliance and quality of the service. The Group absenteeism rate(117) for employees related to illness, accidents at work (excluding commuting) and occupational ill health was 3.5% for the Group in 2024, a slight increase compared to 2023. It was 4.6% in France, stable compared to 2023. 3.kWork-life balance metrics Under the Global Agreement, all Group employees are entitled to take at least one of the following family leaves: maternity leave, paternity leave, parental leave, or caregiver leave. ➤TABLE NO. 39: FAMILY-related LEAVE 2024 Men Women Total % of employees entitled to take family-related leave 100% 100% 100% % of employees who have taken such leave(1) 8% 18% 13% Data collected in the Social Reporting campaign, which covers 95% of the Group's employees in FTE as of 31/12/2024. The Group is also implementing numerous actions to promote 360° parenthood. In France for its 12th edition, the “Parenthood Meetings”, attended by more than 2,400 employees, was organised around meetings and thematic resources addressing adolescence, early childhood, family and intergenerational solidarity, and neurodivergence(118). Regarding the provisions required at Group level, particularly in favour of caregivers, the Global Agreement provides for the possibility for employees to take up to five flexibility days per year for personal convenience. Nearly two-thirds of Group employees(119) benefits from a specific policy in favour of caregivers. In addition, there are other highly innovative initiatives, such as the Tilia mobile application (developed in intrapreneurship), offered by some of the Group’s entities in France, which offers personal support, functionalities and a useful information space for caregivers and those being cared for. In France, BNP Paribas SA and a number of its subsidiaries have concluded agreements on the donation of rest days to employees who are carers of a seriously ill child or spouse. In addition, the Group has put in place a set of measures to support employee caregivers, including a dedicated support offer from the company’s social service that intervenes in the workplace, in various forms: individual support for employees, in complete confidentiality, communication and awareness-raising actions (regular group events, practical guides, support groups with a psychologist, art therapy workshops), as well as partnerships with internal and external specialists and experts. 3.lRemuneration metrics Gender pay gap The Group’s compensation policy is based on the principles of fairness, particularly in terms of gender, and transparency, reflected in particular in a single annual compensation review process for all employees. Regarding the overall gender pay gap, it corresponds to the difference between the average level of pay between male and female employees, expressed as a percentage of the average pay level of male employees. It is calculated on all Group employees, regardless of their activity, seniority and geographical location. ➤TABLE NO. 40: GENDER PAY GAP(120) 2024 Gender pay gap (total remuneration) 35% Gender pay gap (fixed remuneration) 28% The 35% gap for the Group calculated on total remuneration is explained in particular by a significant gap in corporate and Investment Banking businesses where men are more represented than women in front office activities and in more senior technical roles where remuneration levels are the highest, while women are more numerous in functional and commercial activities. As these front-office market businesses are more revenue-generating with higher levels of variable remuneration, this explains the larger gap in total remuneration (35%) compared to fixed remuneration (28%). It is important to note that the Group continues to maintain its strong commitment in this area by renewing specific measures dedicated to rebalancing unjustified pay gaps. For several years, measures have been taken locally to reduce the possible pay gap between women and men. Thus, as part of the 2022 Mandatory Annual Negotiations of BNP Paribas SA in France, a budget of EUR 10 million to be distributed equally over 2023 and 2024 has been devoted to the company’s actions in favour of gender diversity in career paths and the promotion of women, and to the correction of any gaps in annual remuneration. This scheme was renewed at the 2024 Mandatory Annual Negotiations of BNP Paribas SA in France with a new envelope of EUR 10 million to be distributed equally over 2025 and 2026. The other entities of the Group also have the opportunity each year to request dedicated envelopes as part of the budget discussions on the annual compensation review process. Analyses are presented annually to the General Management at the end of the annual compensation review process to ensure an adequate distribution between women and men of the various envelopes in terms of fixed salary increases, variable remuneration or long-term loyalty plans. For example, in 2024, 5.37% of women were promoted (4.01% of men promoted) and women accounted for 59% of employees promoted and 53.2% of employees who received an individual raise(121). However, ensuring equal treatment from a gender perspective does not fully reduce the overall pay gap between women and men within the Group (across all business lines and countries). For several years, the Group has been carrying out numerous actions aimed at structurally improving the representation of women in certain management positions or in certain activities where they are under-represented, such as in the market activities of corporate and Investment Banking and in the IT line. Ratio of highest to median remuneration Regarding the ratio between the highest remuneration and the median of the remuneration of all Group employees, the diversity of the Group’s headcount structure in terms of geographical locations (more than 60 countries) and jobs held makes this indicator more relevant when calculated within a country. This indicator is presented on the 10 main countries in which the Group is present (representing 80% of the Group’s employees). ➤TABLE NO. 41: RATIO OF HIGHEST TO MEDIAN remuneration(122) Ratio by country 2024 France 91 BNP Paribas SA(1) in France 79 Italy 44 Belgium 19 India 52 Poland 40 Portugal 21 Turkey 76 United Kingdom 84 Germany 28 Spain 44 Other ratios between the remuneration of the BNP Paribas Group’s Corporate Officers and the median remuneration of the employees of BNP Paribas SA in France and its branches outside France are published in chapter 2 under French law. Thus, for 2024, this ratio between the remuneration of the Chief Executive Officer and the median of the remuneration of BNP Paribas SA employees (in France and in branches outside France) is 64. Differences in remuneration can be particularly high from one country to another due to market practices, the local cost of living and the nature of the Group’s activities in the different countries. The high levels of remuneration concern certain activities that are very income-generating. 3.mIncidents, complaints and severe human rights impacts ➤TABLE NO. 42: Incidents, complaints and severe human rights impacts 2024 Number of incidents of discrimination, including harassment reported during the period 613 Number of complaints filed through channels for the own workforce to raise concerns about social issues related to working conditions and fair treatment (excluding discrimination and harassment) Total amount of fines, penalties and compensation for damages resulting from incidents and complaints (discrimination and harassment) €43,416 The number reported above for incidents of discrimination (including harassment) as well as other complaints concerning social issues corresponds to the number of alerts relating to “Respect for Persons(123)” reported via the Group whistleblowing channel. Thus, in 2024, 613 alerts relating to “Respect for Persons” were recorded (587 alerts in 2023). Following the analysis of the alerts and the investigations carried out, appropriate measures were taken, including disciplinary and support measures. In 2024, 101 sanctions were applied (including 24 dismissals) and 415 accompanying measures were taken and in 2023, 101 sanctions were applied (including 22 dismissals) and 332 accompanying measures were taken. No alert has been raised for the year 2024 via the OECD’s national contact points. The amount of fines, penalties and compensation for damages reported above corresponds to the amounts (excluding transactions) of damages and compensation for damages paid during the year to employees or former employees, following a court decision without any possible appeals relating to incidents of discrimination or harassment and as reported by the Group’s main countries and regions (France, United Kingdom, United States, Asia Pacific, Belgium, Italy, Luxembourg(124)). This amount of EUR 43,416 only concerns France for five cases recorded in 2024. These fine amounts are included in a global “Litigation” category within the salary and employee benefit expense. Given the nature of the Group’s activities and commitments with regard to human rights, the topic of serious human rights incidents covering forced labour, human trafficking or child labour is not considered material at the Group level. 7.1.5Consumers and end-users This section develops four themes related to consumers and end-users of the products and services offered by BNP Paribas: transparent, clear and non-misleading information, data privacy protection(125), customer satisfaction and social inclusion. BNP Paribas presents hereafter an analysis of the strategy, policies and actions implemented by the Group regarding its consumers and end-users defined as: its direct individual clients (private individuals), in the context of the activities of the Commercial, Personal Banking & Services (CPBS) and Investment & Protection Services (IPS) divisions; its indirect individual beneficiaries, through BNP Paribas’ financing of Microfinance institutions (MFIs) dedicated to social inclusion. Strategy: this section introduces the material impacts, risks and opportunities (IRO) that have been identified in relation to consumers and end-users, as part of the double materiality assessment conducted by the Group. These IRO are put in perspective with the Group’s strategy and business model. Policies: this section presents the Group’s policies deployed in relation to consumers and end-users to manage these material impacts, risks and opportunities. These policies are the Code of conduct, the Group policy on the protection of personal data and the Group policy on the protection of the interests of clients. Actions: on the four themes above-mentioned in this section, the Group describes dialogue channels implemented with its consumers and end-users, as well as those allowing them to raise their concerns. It then details the actions aimed at mitigating the impacts and risks and seizing the opportunities relating to consumers and end-users. These actions include the deployment of clear, transparent and non-misleading information, the rules for informing the customer in the context of complaints management, the risk management procedure and governance dedicated to the protection of personal data, the Net Promoter System in favour of customer satisfaction, specific financial inclusion offers supporting social inclusion and transversal training actions for the Group’s workforce. Metrics and Targets: this section presents the target related to the material opportunities identified on the social inclusion topic. BNP Paribas has set itself the goal of serving six million beneficiaries of products and services supporting financial inclusion by 2025. This indicator is included in the Group’s CSR dashboard. 1.STRATEGY 1.aMaterial impacts, risks and opportunities and THEIR interaction with strategy and business model Through the double materiality assessment carried out by the Group and described in section 7.1.1 General Disclosures, 3.a Description of the process to identify and assess material impacts, risks and opportunities, BNP Paribas has identified several material impacts, risks and opportunities (IRO) in relation with individual consumers and end-users. Material impacts identified by BNP Paribas Impacts related to transparent, clear and non-misleading information Financial products and services offered to individual customers may result in material negative impacts if the information provided to them is not sufficiently clear and comprehensive. For example, if the characteristics of an investment product are not presented in a clear, transparent and balanced manner, individual clients risk being misled and making decisions that do not align with their needs or financial situation, thus exposing them to possible financial difficulties. This can be particularly damaging for individual clients who are financially fragile or less familiar with complex financial products, increasing the risk of financial losses. Given the large volume of products and services offered by the Group, a lack of information can potentially affect many customers. Impacts related to customer satisfaction Customer dissatisfaction is an impact related to a one-off incident and means that the Group has not responded to a customer’s need. The incident may cover operational issues (difficulty in accessing the customer space on the internet) or commercial issues (inadequate sale with advice on a product that is not adapted to the customer’s risk profile). Impacts related to social inclusion Some individual customers are not eligible for the Group’s products and services that would be necessary for their financial inclusion, contributing to their social exclusion. This general impact is linked to the profile of the clients (administrative and economic characteristics that do not allow access to the products and services offered). Material risks identified by BNP Paribas Risks related to data privacy protection BNP Paribas processes a certain amount of personal information related to its individual clients, such as identification data (name, ID number, etc.) or contact data (postal address, e-mail, telephone number, etc.). The Group may face legal and reputational risks resulting from breaches of data protection legislation, such as the violation of the General Data Protection Regulation (GDPR) in the European Union, and/or the loss or theft of confidential information about its individual customers. Risks related to transparent, clear and non-misleading information A defect in the services provided or in the products sold to individual customers may result in a risk of sanction from public authorities and a risk of litigation on the part of customers. Material opportunities identified by BNP Paribas BNP Paribas has identified material opportunities related to products and services supporting social inclusion through financial inclusion. Correspondence table summarising the links between the material IRO and Policies, Actions, Metrics and Targets ➤TABLE NO. 43: SUMMARY OF THE LINKS BETWEEN MATERIAL IRO AND POLICIES, ACTIONS, METRICS AND TARGETS Category Title of the material IRO Policies Actions Metrics and Targets Impacts Financial difficulties related to an information default Code of conduct Group policy on the protection of the interests of clients Transversal training actions Deployment of transparent, clear and non-misleading information and specific actions, such as the formalisation of guidelines on the drafting of commercial documents Complaints management, rules for informing individual customers and responding to their request Continuous improvement process N/A Impacts Dissatisfaction Code of conduct Group policy on the protection of the interests of clients Transversal training actions Net Promoter System N/A Impacts Ineligibility for products or services Code of conduct Transversal training actions Proposal of financial inclusion offers (Nickel, financing of microfinance institutions) N/A Risks Legal and reputational risks resulting from loss or theft of confidential data Code of conduct Group policy on the protection of personal data Transversal training actions Risk management process related to the protection of personal data Dedicated governance Channels for dialogue with individual customers Continuous improvement process N/A Risks Legal risks related to an information default Code of conduct Group policy on the protection of the interests of clients Transversal training actions Deployment of transparent, clear and non-misleading information and specific actions, such as the formalisation of guidelines on the drafting of commercial documents Complaints management, rules for informing individual customers and responding to their request Continuous improvement process N/A Opportunities Financial inclusion Code of conduct Transversal training actions Proposal of financial inclusion offers (Nickel, financing of microfinance institutions) Number of beneficiaries of products and services supporting financial inclusion Interaction with BNP Paribas’ strategy and business model The material negative impacts identified by BNP Paribas in relation to its individual clients (financial difficulties related to an information default, dissatisfaction or ineligibility for certain products or services) are not the result of the Group’s strategy. They relate to unintentional defects in the production of its products or services and involuntary negative consequences of its activity. The material risks identified by BNP Paribas in relation to its individual clients relate in particular to situations of failure to comply with a legislation or regulation, loss or theft of data, or an information default in the offered products and services. They are not related to the Group’s strategy and business model. The material opportunities identified by BNP Paribas in relation to its individual clients, relating to financial inclusion and contributing to social inclusion, are derived from the Group’s strategy. Thus, the Group’s CSR dashboard (presented in section 7.1.1. General Disclosures, 2.a. Strategy, business model and value chain) includes an indicator dedicated to the number of beneficiaries of products and services supporting financial inclusion. 2.IMPACTS, RISKS AND OPPORTUNITIES MANAGEMENT 2.aPOLICIES RELATED TO CONSUMERS AND END-USERS To manage the material impacts of its products and services on consumers and end-users, as well as the material risks and opportunities associated with them, BNP Paribas has several policies in place which are presented and summarised in the table below. These policies apply to all consumers and end-users as defined in the introduction of this section. ➤TABLE NO. 44: SUMMARY OF THE GROUP’S POLICIES RELATING TO CONSUMERS AND END-USERS Policies Description of the content of the policy Description of the scope of the policy or its exclusions Description of the most senior level of the organisation accountable for implementing the policy Interaction with stakeholders Code of conduct The Code of conduct sets out the rules of conduct that apply to all activities and employees of the Group. BNP Paribas Group BNP Paribas Group General Management The Code of conduct is available on the Group’s intranet and on the BNP Paribas website(1). It is available in 20 languages. Group policy on the protection of personal data It governs the Group’s strategy in this area, defining the rules for all categories of data subjects (customers, employees, service providers, etc.) and any personal data processing activity, in all BNP Paribas’ distribution models. BNP Paribas Group Group Data Office and RISK functions This policy is only distributed internally. BNP Paribas publishes on its website for its clients a “Data Protection Notice(2)”. It is available in 17 languages and has several contact details to enable dialogue. Its purpose is to explain to the clients how the Group processes their personal data and how to exercise their rights. Group policy on the protection of the interests of clients This policy defines the rules of organisation and conduct that must be applied throughout the relationship with the customer and at all stages of the life cycle of products and services. BNP Paribas Group Compliance function This policy is only distributed internally. A summary including information on the protection of the interests of clients is available on the BNP Paribas website(3). https://cdn-group.bnpparibas.com/uploads/file/220204_bnpp_compliance_codeofconduct_2022_eng.pdf. https://group.bnpparibas/en/data-protection. https://cdn-group.bnpparibas.com/uploads/file/summary_of_global_policy_framework_of_bnp_paribas_pic_veng_nov_2021_1.pdf. Regarding the oversight processes, the policies presented in this table are all subject to ongoing and periodic internal controls. The Group policy on the protection of personal data is also monitored at the level of the Group Data Office and RISK functions. All of the policies mentioned in the table above are aligned with internationally recognised frameworks applicable to consumers and end-users, including the United Nations Guiding Principles on Business and Human Rights. Regarding its individual customers, the right to privacy is recognised and integrated into the Group’s policy on the protection of personal data and its internal procedures, established in line with European regulations in this area, such as the GDPR. BNP Paribas is not aware of any cases of non-compliance with the international principles mentioned above in connection with its individual clients. In addition, BNP Paribas, as a financial institution, does not identify any serious violations of fundamental human rights of individual clients related to its activities. A Group-level whistleblowing system, placed under the responsibility of dedicated referents within the Compliance and Human Resources functions, depending on the subject, can be activated by BNP Paribas’ external stakeholders, through the “BNP Paribas Whistleblowing Platform(126)”, accessible on the Group's website. The protection of whistleblowers against the risk of retaliation has been strengthened by the French law No. 2022-401 of 21 March 2022. Any person that needs to know of an alert during its processing is formally committed to respecting the confidentiality of the information relating to the whistleblowers and any person involved. In addition, the Group guarantees the protection of whistleblowers against the risk of retaliation, and any person considering themselves the victim of retaliation may issue an alert that will be dealt with according to the standards defined by the Human Resources Department. This protection applies regardless of the channel used by the whistleblower. 2.bProcesses for engaging with consumers and end-users about impacts Transparent, clear and non-misleading information The policy for the protection of the interests of clients defines the following general principles, for which each business line or entity of the Group is responsible for the operational implementation: the customer must have access to information that is fair, honest, transparent, understandable and not misleading about the products and services, both in form and content, and regardless of the channel or format; prior to the provision of a product or a service, the entity must provide customers with all the information necessary to enable them to understand: what they are buying, including the features, pros and cons of the product or service: any information that does not mention the characteristics of a product or service in a balanced way would be considered misleading, the details of what they are paying, i.e. the cost of products, services and advice; information should be provided to customers throughout the product or service lifecycle, when necessary; the product or service must be easy to explain and be understood by customers in the market for which the product or service is intended; answers to questions asked by customers must be provided as quickly and as well as possible. Each entity of the Group must: comply with local regulations, in particular when they are more restrictive than those of the Group; implement an internal control system to ensure transparency of information provided to customers and compliance with applicable rules. Each head of entity, depending on its organisation, is responsible for implementing this process. The protection of the interests of clients is the subject of training for the employees concerned, in particular the teams in charge of customer relations and management (see 2.d Taking action on material impacts on consumers and end-users). Customer satisfaction As part of the Advocacy programme implemented since 2017, the BNP Paribas Group deploys a system for listening to the voice of customers on a broad and continuous basis, in all Domestic Markets, the Europe-Mediterranean perimeter and the specialised businesses, within the CPBS and IPS divisions mentioned above. This programme is based on: a multi-channel survey system to collect customers’ perceptions at various times in their relationship with the Bank: annual Net Promoter Score (NPS) benchmarks that measure the level of recommendation of the Group’s customers and compare it with the score of the competition, on many aspects of the customer relationship, relationship surveys set up by each entity: customers are asked at least once a year to give their perception of their relationship with the Bank, transactional surveys carried out by entities following an interaction between the customer and the Bank (a visit to a branch or a call to the customer service) or a specific journey (new client relationship, mortgage). In addition to the NPS score and operational indicators (conversion rate, duration, etc.), the entities also measure other customer indicators (the Customer Effort Score), as well as employees’ perceptions, in order to have the most in-depth view possible of customer journeys; the consideration of spontaneous sources of expression from customers such as complaints (discussed in the next section 2.c. Processes to remediate negative impacts and channels for consumers and end-users to raise concerns) or social media. The results of the annual benchmarks are presented to each entity and a consolidated view is shared with the Executive Committee of CPBS and the Board of directors of BNP Paribas. In addition, in each entity, the results of these annual benchmarks complement those of the global customer listening system of the entity. The lessons learned and the management of the topics to be addressed are communicated to the highest operational level of each entity (branch director, territory director, region director) to prioritise corrective actions and monitor their implementation. The Group has set itself the objective of improving, each year, the positioning of its entities in comparison with their competitors in the countries where they operate. In 2024, in the four Domestic Markets (France, Belgium, Italy and Luxembourg), 7.3 million surveys were sent by email to individual customers with a return rate of 7%. In addition, nearly 850,000 returns were collected via direct surveys on digital channels (pop-in, pop-up). Regarding the Group’s positioning in the market: 69% of the Group’s 13 banking entities serving individual customers had an NPS score at or above the average of their market in 2024 (compared to 62% in 2023 and 46% in 2018). Nearly one in two entities was positioned above the NPS average for its market (compared to 23% in 2018), which represents the highest level reached since 2018; the NPS score was up in half of retail banks in 2024, with notable progress on the quality of the relationship with banking advisors and the ease of use of digital interfaces (mobile applications and websites); in Private Banking, the NPS was clearly above the market in the three entities (BNP Paribas Private Banking, BNP Paribas Fortis Private Banking, BNL-BNP Paribas Private Banking), with a gap of 10 to 24 points with the market. Clients recognise the expertise, stability and availability of private bankers; in 2024, BNP Paribas Personal Finance continued to deploy its system for listening to the voice of customers and partners at key moments in the customer relationship. This year, several use cases based on the use of artificial intelligence were tested to enhance the value of data from customer reviews; BNP Paribas Cardif has included in its strategic plan a customer NPS target for all the countries in which it operates. Systematic listening and in-depth analysis of customer needs and expectations are implemented to ensure the continuous improvement of insurance solutions and customer journeys. With this objective, in 2024 BNP Paribas Cardif extended its “Close The Loop” scheme to new countries, including Italy and Spain, besides France. This complementary initiative consists of calling back customers who have responded to a satisfaction survey and given their prior consent to this process, in order to deepen directly with them the understanding of possible sources of dissatisfaction and the factors of satisfaction, and thus to facilitate the identification of areas for improvement. 2.CProcesses to remediate negative impacts and channels for consumers and end-users to raise concerns Complaints management The handling of complaints is a key element of the Group’s policy for the protection of the interests of clients and is subject to precise operational procedures. The policy for the protection of the interests of clients defines the rules for handling complaints, for which each business line or entity of the Group is responsible for the operational implementation: clients must be clearly informed of the complaint channel and complaint handling process and, if applicable, the mediation protocol. The ombudsman is independent of the operational services, which offers guarantees to customers; complaints must be acknowledged, and customers must be regularly informed of the progress of their complaints; a response must be provided to the customer within a maximum delay of two months; complaints treatment cannot be charged. Each entity must also: ensure that customer-facing employees have sufficient knowledge of the complaints handling process; monitor compliance with the rules for handling complaints; analyse the cause of complaints and the responses provided in order to inform quality improvement programmes. This allows the Group to learn lessons in a logic of continuous improvement. Many of the Group’s entities offer the services of independent mediators, who can be used by customers. In France, in Italy and in Belgium, customers can contact the national ombudsman services organised by the relevant regulatory bodies. BNP Paribas Personal Finance uses external ombudsmen in most countries. In France, an independent ombudsman studies the requests and provides proposed responses. Since 2022, BNP Paribas Cardif in France has strengthened its relationship with the Insurance Ombudsman in order to take into account the mediator’s perspective on the cases that customers submit to it. Customer satisfaction An individual remediation approach is implemented with customers who have responded to a survey. Each customer must be called back by an advisor upon receipt of their response (within a maximum of five days), with priority given to dissatisfied customers. This reminder provides a better understanding of customers’ perceptions and the reasons for their opinion. When possible, an immediate solution is provided to the customer. When the solution cannot be immediate, the agency or customer relationship centre must implement corrective actions if the irritant is at the local level (“Innerloop”) or forward it to the central teams if it is a structural irritant whose resolution is not directly within the control of the local level (“Outerloop”). These customer events are recorded and processed through management and steering tools. The Net Promoter System is mainly operated via the Customer Feedback Management tool which allows management of surveys, consultation of customer feedback in real time, sharing of results throughout the entity and monitoring of them via dashboards. The Group learns from these remediations, enabling it to nurture a continuous learning process. In each of the Group’s entities, the Advocacy team regularly presents, with its General Management and team managers, the customers’ main irritants and organises their prioritisation and resolution along with the responsible operational teams. Social inclusion To address the impact of ineligibility of certain individual clients for some Group’s products and services due to the clients’ profile, BNP Paribas develops specific offers, described in the following section 2.d. Actions in favour of social inclusion. BNP Paribas also relies on the same remediation processes as for other individual clients, see previous sections on customer satisfaction and transparent, clear and non-misleading information for complaint management. 2.dTaking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions BNP Paribas implements various actions to prevent, mitigate and correct the impacts on its individual clients, manage material risks and seize related material opportunities. Transversal training actions The Group deploys several training courses related to the protection of the interests of clients, primarily training courses on the Code of conduct (Conduct Journey) assigned to all employees. In its third edition, it has been enriched with information on ethics alert channels and with a new module on diversity, equity and inclusion. All BNP Paribas employees must undergo a mandatory training on the protection of personal data. Regular campaigns also favour increased awareness of cyber risks and personal data breaches. The “Sustainability Academy”, a training platform launched in 2022 by the Group, offers employees training on sustainable finance topics, including social and financial inclusion. For more information, see section 7.1.4 Own workforce, 2.d Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of these actions. Actions in favour of data privacy protection Risk management process related to the protection of personal data BNP Paribas’ policy on the protection of personal data includes a process for identifying, qualifying and assessing the risks related to personal data processing activities impacting data subjects, including individual clients. The Group deploys a series of organisational and technical measures to prevent and mitigate the risks associated with the processing of personal data, including the risks related to the loss of confidential personal data, their integrity and availability. In coherence with article 32 of the GDPR regulation, these measures include: pseudonymisation and encryption of personal data; the ability to ensure the confidentiality, integrity, availability and resilience of data processing systems and services; the ability to restore availability of, and access to personal data, within a reasonable period in the event of a physical or technical incident. Dedicated governance Governance, based on a network of Chief Data Officers (from the Group Data Office function, as the first line of defence) and Data Protection Officers (from the RISK Function, as the second line of defence), ensures the application of the personal data protection framework for which they are responsible. This network is supported by dedicated experts within the LEGAL function (second line of defence). The functions of permanent and periodic control (third line of defence) oversee the proper application of the data protection framework and its effectiveness. Channels for dialogue with individual customers Firstly, the Group’s rules, in line with the GDPR regulation, prescribe direct notification to data subjects concerned in the case of a data breach. The affected persons are informed as soon as possible of their rights and freedoms and can take the necessary measures to protect themselves. Individual clients may contact BNP Paribas at any time, directly or through the data protection authorities, for any inquiries or complaints regarding the processing of their personal data, including through customer service. In addition, subcontractors of the Group’s products and services must inform BNP Paribas of any request and help to respond to it. Channels that facilitate this interaction are described in the Data protection notice(127) published on the Group’s website. This notice also provides guidance on submitting complaints to data protection authorities. Complaints are treated confidentially and securely, to ensure access based solely on a need-to-know basis(128). The process of dialogue with individual customers for the protection of personal data is organised around the Chief Data Officers and Data Protection Officers (DPO), who operate under the authority of the Chief Data Officer and the Group Data Protection Officer, and act as protectors of the personal data of data subjects. As members of the autonomous control function RISK, the DPOs provide independent supervision of the processing of requests. Periodic reporting is carried out by the Privacy and Personal Data Protection Committees, chaired by the Chief Data Officer and the Group Data Protection Officer. These Committees ensure that this dialogue with individual customers for the protection of personal data takes place and that these results support the company’s approach. Ad hoc reports can be done at the level of the Board of directors. Continuous improvement process In 2024, BNP Paribas consolidated its network of data protection specialists, integrated into all territories and activities, and has pursued its missions of applying data privacy principles and increasing continuously the degree of maturity in terms of personal data protection. The effectiveness of the processes for remediating complaints from data subjects is monitored through both permanent (via the control functions) and periodic (via audits) controls. Also, as far as there is a remediation legal obligation related to personal data, these processes are also monitored by the data protection and judicial authorities. The processing of requests from data subjects, including individual clients, is regulated by the data protection authorities and contact information is made available in the event that the concerned data subjects believe that there are grounds to make a complaint. Lessons are learned from both data breach cases and interactions with data subjects to improve channels of dialogue and prevent and mitigate future impacts. If necessary, additional exchanges with the concerned persons are undertaken in order to better meet their requests or to gather additional information, thus ensuring the most relevant and appropriate response. Actions in favour of transparent, clear and non-misleading information and complaints management Transparent, clear and non-misleading information These actions are described earlier in the section 2.b. Processes for engaging with consumers and end-users about impacts. In addition, specific actions are carried out according to the needs identified by individual customers, such as the formalisation of guidelines on the drafting of commercial documents or on best practices to avoid greenwashing. Complaints management These actions are described earlier in section 2.c Processes to remediate negative impacts and channels for consumers and end-users to raise concerns. Individual clients are informed of the existing complaints process and mediation protocol, both in public reception sites and on the internet. A customer who has made a complaint must obtain an acknowledgement of receipt from BNP Paribas within ten working days. Customers are regularly informed of the progress of their request and a response must be provided within two months, unless more restrictive local regulations are required. Complaints management teams are operational teams of the business lines. The Compliance Function ensures that the complaint management system is in place and complies with the Group’s standards and local regulations. Continuous improvement process A process of analysis of the causes of the complaints received and the solutions provided feeds the Group’s continuous improvement effort. Quantitative and qualitative information concerning complaints is regularly transmitted to the General Management. Actions in favour of customer satisfaction To better understand and meet the expectations of its customers, the Group has developed a specific organisation based on several tools and aimed at remediating the material impact identified on this theme of customer satisfaction. In each operating entity of the Group, an Advocacy team is in charge of the Net Promoter System and ensures its proper functioning and the corresponding follow-up. As such, the Advocacy team: is responsible for standards and methodologies in the implementation of the NPS system; communicates NPS survey results and the monitoring of customer irritants regularly across their entity; participates in the internal decision-making bodies of the entities to carry the voice of customers in the choices of evolution and improvement of commercial processes and customer journeys. The team must also lead the “Outerloop” stage (described in the customer satisfaction paragraph of the section 2.c. Processes to remediate negative impacts and channels for consumers and end-users to raise concerns) in close collaboration with the Customer Journeys and Design teams, consisting of: gathering all available customer feedback (from surveys, complaints, social networks, etc.); conducting an in-depth analysis to identify key irritants and their causes; organising the prioritisation and resolution of these irritants with the operational teams in charge. Actions in favour of social inclusion, through financial inclusion Social inclusion is one of the five priority areas of the Sustainability pillar of the BNP Paribas strategic plan. The Group contributes to social inclusion through offers supporting financial inclusion, which is a step towards social inclusion. These offers allow certain categories of the population that are distant from banking offers to access means of payment and financial or insurance services. BNP Paribas thus provides them with the means to participate more actively in economic and social life. These financial inclusion actions are carried out for two types of beneficiaries: direct beneficiaries, through Nickel’s offers; indirect beneficiaries, through BNP Paribas’ financing of microfinance institutions (MFIs). Nickel Nickel, a subsidiary of the Group present in five European countries (France, Spain, Belgium, Portugal, Germany), offers payment solutions accessible to all, without means testing, directly online or through physical distribution channels such as tobacconists. With the opening of an account with an IBAN and an unconditional payment card, Nickel allows everyone, including people who have been banned from banking, to pay, to be paid and to have home insurance accessible online. By simplifying the conditions for access to a current account, Nickel contributes to the socio-professional inclusion of as many people as possible – having access to a bank account is now an essential condition for accessing everyday goods and services, as well as a paid job. According to the impact report published in 2023 by Nickel(129), 77% of customers have an income of less than EUR 1,500 per month, 30% are unemployed, without regular income or living on benefits and 30% have no home address. For 28% of them, Nickel is the first current account they open in their lives. At the end of 2024, Nickel had reached more than 4.3 million accounts opened since its creation, an increase of more than 706,000 accounts in one year. Microfinance institutions For 35 years, BNP Paribas has been committed to inclusive finance by directly and indirectly financing microfinance institutions through various levers: direct financing, investment in financial inclusion funds and distribution of savings products dedicated to microfinance. At the end of 2024, BNP Paribas’ direct support for microfinance reached EUR 468.8 million in loans and investments to 22 MFIs in 13 countries. At the end of September 2024, this represented almost 700,000 active beneficiaries (from the partner MFIs) indirectly supported by BNP Paribas. New credit commitments were made to these institutions in 2024, particularly in countries where the Group has a significant presence such as Morocco, India, Indonesia and Brazil. Since 2021, the use of the MESIS (Social Impact Measurement and Monitoring) methodology allows measurement of the social performance of partner MFIs. This analysis is published in the form of an annual report and tracks key data on the impact of the MFIs’ activities. Effectiveness of actions related to identified impacts The actions described above, by theme (transparent, clear and non-misleading information, customer satisfaction and social inclusion), and transversal ones (training actions), make it possible to prevent, mitigate and correct the identified impacts of BNP Paribas on its individual clients. Through the monitoring of complaints, NPS and the deployment of offers aimed at financial inclusion, the Group follows and evaluates the ability of these actions to produce the expected results for individual customers. The Group also ensures that processes are in place to remediate any material negative impacts as well as the effectiveness of their implementation and results, as described above, for example, with regard to the rules on response times to customers who are dissatisfied or have made a complaint. Regarding the protection of personal data, negative impacts on data subjects, including marketing practices or data use, are avoided through the internal risk management system put in place by BNP Paribas, in line with personal data protection regulations (GDPR and ePrivacy Regulation and national regulations in the countries where BNP Paribas operates). This risk management process related to the protection of personal data is the cornerstone of the Group’s system for evaluating each process and each data processing in the light of compliance with the GDPR and the Group’s policy on the protection of personal data, considering current or planned protection measures. This system also allows the implementation of the measures previously mentioned in section 2.d Actions in favour of data privacy protection, such as pseudonymisation and encryption of personal data. As previously described, the Group’s Code of conduct promotes the highest ethical standards in terms of personal data protection. BNP Paribas commits to never selling its customers’ personal data to its business relationships. 3.METRICS AND TARGETS 3.aMetrics and Targets related to opportunities As part of its strategic plan, the Group has set itself a quantified target in terms of social inclusion: to serve 6 million beneficiaries of products and services supporting financial inclusion by 2025. This indicator is included in BNP Paribas’ CSR dashboard (see 7.1.1 General Disclosures, 2.a Strategy, business model and value chain). This target echoes the objectives of the Code of conduct policy, its theme no. 7 (“Involvement with Society”, sub-theme “Contributing to a more inclusive society”) being defined as follows: “the Group also strives to pay particular attention to customers in vulnerable situations and to facilitate their access through the development of adapted and accessible financial products and services. BNP Paribas Group employees must ensure that they take into account the social impact of their activities.” The indicator consists of the number of Nickel accounts opened since the creation and number of beneficiaries of microloans distributed by microfinance institutions financed by the Group (pro rata to the financing) between 1 October of the previous year and 30 September of the current year. The methodology for calculating the indicator has been stable since its first appearance in the Group’s CSR dashboard in 2022. Nickel’s development plan, as well as internal projection’s work on the number of beneficiaries of the MFIs supported, have enabled this target to be set. Thanks to the strong development of this inclusive offer, the Group reached five million beneficiaries of products and services supporting financial inclusion at the end of 2024, thus contributing to social inclusion. 7.1.6Business conduct BNP Paribas presents below the Group’s business conduct frameworks, including anticorruption and interest representation, as well as the other non-compliance risks covered in this chapter (financial security, market integrity and cybersecurity). Strategy: On these various subjects, the Group’s strategy is determined by the impacts, risks and opportunities (IRO) identified by the double materiality assessment. IRO related to business conduct and other topics related to non-compliance risks are presented in section 1. Management of impacts, risks, opportunities. Policies: BNP Paribas describes the policies in place to manage material impacts, risks and opportunities in connection with business conduct and other matters related to non-compliance risks in section 1.a Corporate culture and business conduct policies. Actions: The Group describes the actions aimed at mitigating impacts and risks related to business conduct and other matters related to non-compliance risks. Metrics and Targets: BNP Paribas presents the following metrics related to business conduct and other matters related to non-compliance risks: the percentage of high-risk functions covered by training programmes on corruption and bribery; the number of convictions and fines for violations of anticorruption legislation and acts of corruption; cybersecurity metrics. With the exception of cybersecurity, for which the Group’s Cyber Programme has defined targets, the other topics presented in this chapter are not suitable for the definition of targets or annual action plans. Indeed, the management of these risks is part of the overall operational risk management framework involving, in all Group entities, a periodic risk assessment and a portfolio of improvements and corrective actions that is constantly evolving and adapted to each entity. 1.IMPACT, RIKS AND OPPORTUNITIES MANAGEMENT Through the double materiality assessment carried out by the Group and described in chapter 7.1.1 General Disclosures, 3.a Description of the processes to identify and assess material impacts, risks and opportunities, BNP Paribas has identified several material impacts, risks and opportunities (IRO) related to business conduct: ➤TABLE NO. 45: SUMMARY OF LINKS BETWEEN MATERIAL IRO AND POLICIES, ACTIONS, METRICS AND TARGETS Category Title of the material IRO Policies Actions Metrics Targets Risks Legal and reputational risks related to corruption or influence peddling Global Anti-Money Laundering and Counter-Terrorist Financing (AML-CTF) Policy BNP Paribas whistleblowing framework group procedure Gifts & Invitations Procedure Global Anticorruption Policy Group Conflicts of Interest Policy Code of conduct Know Your Client Anti-Money Laundering and Counter-Terrorist Financing / Activity monitoring Suspicious Activity Reporting Negative News Relationship Screening Transaction Filtering Percentage of functions-at-risk covered by training programmes on corruption and bribery Number of convictions and amount of fines for violation of anticorruption and anti-bribery laws N/A Risks Legal and/or reputational risks related to controversial lobbying activities Responsible Representation Charter Procedure for the representation of interests Sapin II Authorisation procedure, internal reporting, certificates N/A N/A Risks Legal risks related to failure to identify suspicious customer activity Global Anti-Money Laundering and Counter-Terrorist Financing (AML-CTF) Policy Global Sanctions Policy Know Your Client - Global Policy Global Policy on Protecting Market Integrity Know Your Client Anti-Money Laundering and Counter-Terrorist Financing / Activity monitoring Suspicious Activity Reporting Negative News Relationship Screening Transaction Filtering N/A N/A Risks Operational risks generated by cyberattacks Cybersecurity Framework Cyber Trust 25 Framework requirements translated into actions and action plans Cyber Trust 25 Ambitions Cyber Panoramas Cyber Trust 25 Steering Committees Targeted maturity by Entity within the Cyber Programme Objectives of the Cyber Trust 25 ambitions Risks Reputational risks generated by cyberattacks Risks Legal risks generated by cyberattacks 1.aCorporate culture and business conduct policies Summary of the Group’s policies relating to business conduct The table below summarises the main policies applicable to the entire BNP Paribas Group to manage the impacts, risks and opportunities related to business conduct. ➤TABLE NO. 46: SUMMARY OF THE GROUP’S POLICIES RELATING TO BUSINESS CONDUCT Politics Description of the content of the policy Description of the scope of the policy or its exclusions Description of the most senior level of the organisation accountable for implementing the policy Interaction with stakeholders Code of conduct The Code of conduct sets out the rules of conduct that apply to all activities and employees of the Group. BNP Paribas Group BNP Paribas Group General Management The Code of conduct is available on the Group’s intranet and on the BNP Paribas website. It is available in 20 languages. BNP Paribas whistleblowing framework group procedure This procedure presents the framework put in place within the Group to enable Employees and certain External Third Parties to report safely, and under the conditions laid down by the regulations, actual or suspected violations of laws or rules of the Group Code of conduct. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally, and a summary is available on the Group’s website. Gifts & Invitations Procedure This procedure establishes the rules that Group Employees must comply with as regards Gifts and Invitations BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Group Conflicts of Interest Policy This policy aims at: explaining the conflicts of interest topics in the context of the Group’s activities, and more generally in a business context; outlining the Group principles for identifying, preventing and managing situations of conflicts of interest. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Global Anticorruption Policy This policy states BNP Paribas Senior Management’s expectations regarding all employees’ roles in actively fighting corruption and influence peddling and in their prevention and detection. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Global Anti-Money Laundering and Counter-Terrorist Financing (AML-CTF) Policy This policy is the foundation of the Bank’s Anti Money Laundering- Counter-Terrorist Financing framework. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Global Sanctions Policy This policy establishes minimum principles, standards, internal processes, and controls designed to limit BNPP’s exposure to risks associated with violations of Sanctions laws and regulatory requirements and the risk of conducting business with sanctioned parties. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Know Your Client - Global Policy This policy defines the due diligence standards of the BNP Paribas Group (BNPP) regarding client’s knowledge, risk assessment and decision-making. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Global Policy on Protecting Market Integrity This policy is the reference for the Market Integrity Domain. The Policy addresses different regulatory issues, in particular: market abuses issues; conflicts of interests issues; requirements of Markets in Financial Instruments Directive 2 (MIFID II) linked to market integrity; benchmarks regulation and IOSCO principles; Forex rules (Forex Global Code); transparency rules (threshold crossings), short-selling and reporting. BNP Paribas Group Two Chief Operating Officers of the BNP Paribas Group This policy is circulated internally. Responsible Representation Charter Adopted in 2012 by the Executive Committee, this charter frames the relations of BNP Paribas employees with the public authorities and the Group’s representation practices. It includes a series of core commitments including integrity, transparency, governance and social responsibility BNP Paribas Group BNP Paribas Group General Management The charter is available on the BNP Paribas website(1). It is available in French and English. Representation of interests Sapin II Procedure In line with the Charter for Responsible Representation, the procedure provides a framework for the relations of BNP Paribas employees with the French public authorities, within the framework defined by Title II of the Sapin II law relating to the transparency of relations between interest representatives and public authorities. BNP Paribas Group Institutional Affairs Department This policy is circulated internally. Cybersecurity Framework More broadly integrated into the Group’s ICT(2) and cyber risk management reference framework. It consists of a set of documents (policies, norms, and standards) that define the basic requirements for cybersecurity. BNP Paribas Group Group CISO(3) This set of policies, norms and standards is circulated internally Cyber Trust 25 Cybersecurity strategy defined to support BNP Paribas’ digital transformation. It is based on 5 pillars: acting responsibly towards clients and regulators; being a cyber reference in the market to be trustworthy and attract talent; accelerating transformation and innovation; being a pleasant place to work by building on our corporate social responsibility ambitions; ensuring zero digital waste based on the needs and risks of the company. Cybersecurity teams of the Group Entities (“Cyber Filière”) Group CISO The ambitions identified in each of the strategic pillars are circulated to the entire Cyber Filière https://group.bnpparibas/en/responsible-representation-with-respect-to-the-public-authorities. Information and Communication Technologies. Chief Information Security Officer. The policies described are subject to a monitoring process as specified in chapter 2 Corporate governance and internal control, 2.4 Internal control. Compliance with the highest ethical standards is a prerequisite for BNP Paribas. All Group employees are required to strictly comply with the laws, directives and regulations in force in all areas as well as the professional standards and internal policies that apply to their activities. In the event of a potential conflict between a country’s legislation and BNP Paribas’ ethical rules, employees are required to comply with applicable local laws if they are more restrictive, while seeking ways to apply and comply with internal ethical rules. Compliance with these rules, as detailed in the Code of conduct, is essential to the preservation of the Group’s reputation and the trust placed in it by its customers and partners. The Code of conduct The Code of conduct, which is binding on all employees and in all the Group’s business lines, governs the actions of each employee and guides decisions at all levels of the organisation. Published in 2016 and expanded in 2022 and 2024, it has been translated into 20 languages and is published on(130) the Group’s website. It presents the rules of conduct to be shared and applied in different areas: customer interest; financial security; market integrity; conflicts of interest; professional ethics; respect for colleagues; Group protection; commitment to society; fight against corruption. The Group Conduct Committee (GCC) ensures and supervises the execution and improvement of the conduct framework within the Group and facilitates the sharing of best practices on conduct matters. A survey launched at the end of 2023 among the Group’s employees confirmed their high level of adherence to the values and behaviours defined in the Code of conduct as well as a good knowledge of the channels enabling them to raise alerts (see The whistleblowing framework below). Conduct Risk Management All topics covered in the Code of conduct are subject to policies and procedures that set out rules and processes specific to each type of risk. These rules and processes are part of the Group’s general internal control framework, which defines in particular the principles of risk assessment, controls, the detection and treatment of incidents, the monitoring of corrective actions and the information of Management (see chapter 2 Corporate governance, 2.4 Internal control and chapter 5 Risks and capital adequacy – pillar 3, 5.9 Operational Risk). The fight against corruption, money laundering and terrorist financing BNP Paribas maintains frameworks for detecting money laundering and terrorist financing operations in all its entities, which are based on standards and controls, on the employee vigilance, maintained through mandatory training programmes, and constantly evolving digital tools. A strengthened framework for the prevention and detection of corruption and influence peddling is also implemented (see section 1.b. The prevention and detection of corruption and bribery below). Respect for market integrity BNP Paribas’ market activities, on behalf of its clients or on its own account, are strictly governed by frameworks dedicated to the prevention and detection of market abuse and the management of sensitive information and conflicts of interest. The fight against tax evasion Comprehensive compliance with tax obligations is part of the Group’s commitments to corporate and social responsibility. The tax compliance of the Group’s and its clients’ operations is therefore a major objective of its governance. To this end, principles and procedures have been defined applicable to all operations in which the Group is a stakeholder. These elements are included in the BNP Paribas Tax Code of conduct(131), of which the latest version was published in June 2023. Protection of clients’ interests The protection of clients’ interests is a major concern for the Group. For this reason, the Group has decided to place this topic at the core of the Code of conduct and is a specific Expertise Domain within the Compliance Function (see chapter 7.1.5 Consumers and end-users). The Whistleblowing framework The BNP Paribas Whistleblowing framework is governed by a Group-level procedure in accordance with the French Sapin II law on “transparency, the fight against corruption and the modernisation of the economy” and applies to all Group entities in compliance with local regulations. Every Group employee has the right to alert in the event of a crime or offence, or threat or harm to the public interest, or a violation or an attempt to conceal a violation of an international norm ratified by France, of a unilateral act of an international organisation adopted on the basis of such norm, or of European Union law or any law or regulation, a breach of the Group Code of conduct or of Group policies and procedures. This right must be exercised in good faith and without direct financial consideration. The Group’s Whistleblowing framework, in accordance with the Waserman law, is also open to external third parties, in particular to former Group employees, and to suppliers and subcontractors, for reporting information obtained in the context of work-related activities in the Group. The Group Whistleblowing procedural framework presents the different Whistleblowing Channels available to employees and external third parties, the conditions to be met when raising an alert, the rules for processing an alert and the protection granted to Whistleblowers against any retaliation. The Group Whistleblowing framework relies on the following pillars: Independent and protected communication channels open to employees and external third parties Compliance and Group Human Resources share responsibility for the BNPP Whistleblowing framework according to the nature of the alert. Human Resources receive and process alerts relating to respect for people, Compliance receives and processes other types of alerts. Employees and External third parties can raise an alert securely via an external system available (BNP Paribas Whistleblowing Platform)(132) and operated by an external provider through an online form or a dedicated hotline (available depending on the country due to local specificities/regulations). Employees wishing to report an alert can also approach their management, Human Resources or Compliance. In addition, there is a specific communication channel for alerts on breaches of financial sanctions and embargoes. Each Whistleblowing channel is under the responsibility of specifically appointed employees, the HR Conduct Referent “Respect des Personnes” or Compliance Whistleblowing Referents according to the topics. These Referents are committed to respecting the confidentiality rules and ensuring an impartial and independent handling of each alert. The methods for raising and handling an alert comply with local rules. An alert may be expressed in all the languages used by the Group. Whistleblowing reports are systematically processed with confidentiality. Anonymous reports are processed unless this is not authorised by local regulations. Protection of Whistleblowers and Confidentiality No employee who raised an alert in good faith may be disciplined, dismissed or discriminated against, directly or indirectly, with regard notably to recruitment, remuneration, promotion, training, assignment or redeployment. The same protection applies to employees having borne witness to the case and having provided information for the investigation. The Whistleblowing framework guarantees the confidentiality of the identity of the Whistleblowers and any persons mentioned, including the targeted person(s), and of the information collected in the report and during the investigation. The Referents are responsible for implementing these rules and for complying with applicable laws and regulations regarding the processing, storage and retention of personal data collected in a Whistleblowing report. Processing of Whistleblowing reports The processing of Whistleblowing reports is governed by procedures or collective agreements that define each step for handling reports and specify special rules on protection and confidentiality. As soon as an alert is deemed admissible, it is analysed and, if necessary, an investigation is carried out independently with the required expertise. A specific timeframe has to be applied for processing Whistleblowing cases and informing the Whistleblower at each step of the process (acknowledgement of receipt, confirmation of admissibility and closure after investigation), unless there is a legitimate impediment linked to the anonymity of the alert. Employees’ awareness All Group employees are made aware of the Code of conduct and of the Whistleblowing framework in the mandatory Conduct Journey training. This framework and the methods for using it are also communicated at central, regional and local levels of the Group’s organisation, in particular on intranet sites. Controls The Whistleblowing framework is subject to generic control plans designed to check the access to Whistleblowing channels and to ensure that the rules for processing whistleblowing alerts are respected. Reporting to the General Management and Board of directors A comprehensive and detailed reporting on the quantitative and qualitative analysis of alerts (i.e. number of alerts and remedial measures, etc.) is produced and presented at least annually to the Group Executive Committee and to the Board of directors of BNP Paribas SA. Training The topics covered by the Code of conduct are integrated into a training programme called Conduct Journey., The Conduct Journey develops on the fundamental rules of the Code of conduct, highlights the behaviours expected of employees in terms of conduct, as well as in the detection and handling of situations of misconduct. The programme’s content (13 modules) is delivered in a two-year cycle to ensure continuous pedagogical progress. X Employees complete a different set of modules each year (except for the “Financial Security” course, which is annual). The modules are reviewed and adapted annually to ensure content is up-to-date and aligned to the Group’s priorities. New employees must complete all 13 modules of the Conduct Journey when they join the Group. ➤TABLE NO. 47: CONDUCT JOURNEY TRAINING Target All Group employees Content Topics covered in the Code of conduct: Importance of Conduct and the “speak up” culture; Fighting corruption; Financial security; Conflicts of interest; Protecting interests of clients; Confidential information; Involvement with society; Respect for people; Diversity, equity and inclusion; Communicate responsibly; Cybersecurity; Data protection; Competition law. Type of training E-learning Duration 3 hours (13 modules spread over a two-year period) Completion rate in 2024 (as of 13/01/2025) 98.1% 1.bPrevention and detection of corruption and bribery The BNP Paribas Group has implemented a global framework to prevent and detect corruption and influence peddling (“corruption”). Designed in compliance with the French Sapin II law and in light of the best international practices - such as the French Anticorruption Agency guidelines, the UK Bribery Act and the U.S Foreign Corrupt Practices Act – the Anti-Bribery and Corruption (ABC) programme is described in a Global Anticorruption Policy and updated in view of corruption risk assessment results. Description of the anti-bribery and corruption programme The ABC programme applies to all BNP Paribas entities, and consists of the following measures and policies: the Group Chief Executive Officer anticorruption statement(133) confirming BNP Paribas' zero tolerance for corruption and influence peddling. BNP Paribas senior management oversees the deployment of the ABC programme, notably by validating the Group ABC report on corruption risk assessment; governance, supervised by a dedicated team at Group level, in charge of the design and the coordination of ABC programme and supervision of the international ABC correspondents’ network, present in all business lines and functions of the Group; a corruption risk assessment: Risks of corruption and influence peddling are assessed on a regular basis, and results are presented to the BNP Paribas Group management body in its executive function for approval, and to the Board of directors. Risk assessment methodology enables a granular evaluation of corruption risks based on scenarii assessed by the business lines and functions, and their prioritisation (through risk factors), as well as action plans to address corruption risks; the Group Code of conduct (available in 20 languages), prefaced by the Group Chief Executive Officer and the Chairman of the Board of directors, includes an Addendum dedicated to the prevention, detection and fight against corruption and influence peddling, providing illustrations of prohibited situations or that should raise the attention of employees when encountered. Policies associated with the Anticorruption Addendum to the Group Code of conduct - on gifts and invitations(134), lobbying, conflict of interests, philanthropy, partnership, sponsorship and related donations - are also available and provide guidance to employees on how to manage corruption risks in these situations; a whistleblowing framework: BNPP employees have access to whistleblowing channels at Group level in different languages to report any breach of the Anticorruption Addendum to the Group Code of conduct. A whistleblowing channel has also been open to external third parties; due diligence processes on third parties (Know Your Client, Know Your Intermediary processes, etc.): Group policies establish due diligence requirements on clients (including on Politically Exposed Persons), intermediaries, suppliers or other types of third parties. This set up enables the identification and management of counterparts most exposed to the specific risk of corruption (such relationships are subject to specific mitigation measures). Finally, a tool to analyse adverse information related to third parties is deployed throughout the Group, accessible to all employees through the Group intranet; controls to manage corruption risks: BNP Paribas control framework is organised around 3 lines of defence, with the business/front responsible for the first line of defence, Functions such as Compliance, RISK, Finance responsible for the second line of defence, and Inspection Générale (third line of defence) performing periodic audits including on ABC topics. Controls (including accounting one) to mitigate corruption risks are identified in light of risk mapping scenarii, at Group and local level, and include verifications regarding major ABC-related policies and risks. Finally, analysis of incidents associated with corruption, whose results are presented to senior management, is performed quarterly at Group level. All together, controls and key indicators enable to monitor the ABC programme and to address negative results with recommendations or action plan; training and awareness-raising campaigns: See below “Training”; disciplinary regime: Any suspicion of corruption or influence peddling involving a BNP Paribas employee is investigated by a specific and independent Committee of the management chain involved and sanctioned if confirmed. Training The Anti-Bribery and Corruption training consists of 4 modules: Mandatory training for all Group employees: Anticorruption Module of the Conduct Journey; Mandatory training for employees most exposed to the risks of corruption: ABC Most Exposed. The most exposed employees must follow a specific training (ABC Most Exposed), adapted to the specificities of their activities and roles, as long as they hold these roles. Concerned activities and roles are identified based on the anticorruption risk map - roles in interaction with third parties or working in high-risk activities (sales, purchasing, recruitment, for example) and/or involved in the implementation of the anticorruption framework (senior managers and anticorruption correspondents in particular). This advanced training is designed for: the entire target population every other year, employees considered as most exposed for the first time, the following year. An ACAMS (Association of Certified Anti-Money Laundering Specialists) certificate dedicated to the fight against corruption is offered to anticorruption correspondents within Compliance since 2023; Training for the Group’s Board of directors. Board members benefit from a dedicated training session on anticorruption and financial security every other year (the last one took place in September 2023). ➤TABLE NO. 48: FIGHT AGAINST BRIBERY AND CORRUPTION AND FINANCIAL SECURITY TRAININGS Training Anti-Bribery and Corruption – Most Exposed Employees Certificate “Anticorruption - Advanced” Financial Security – Formation of the Board of directors of BNPP Target 2023: All the Group’s most exposed employees 2024: Newcomers Identified population required to be certified Directors of BNPP SA Subject Presentation of the BNP Paribas Group’s global anticorruption framework. Illustrations aimed at detecting cases of corruption during daily activities with the various stakeholders. Presentation of: (i) different typologies of corruption and associated regulations; (ii) warning signals and measures aimed at managing, controlling and reporting the risks of corruption. Presentation of regulatory evolutions and the Group’s governance in terms of Financial Security and the fight against corruption. Type of training E-learning E-learning Face-to-face Duration 40 minutes 11 Hours 1.5 hour Frequency Every other year: the whole target/newcomers One-off Every two years Completion rate in 2024 (as of 13/01/2025) 2023: 97.7% 2024: 96.9% 99.3% 92.9% Anti-bribery and corruption Metrics BNP Paribas S.A has not been the subject of any convictions or fines for violating anticorruption law in the last five years. All corruption incidents are considered in a general analysis to determine corrective actions at the framework level (see the Anticorruption controls paragraph in section 1.b Prevention and detection of corruption and bribery in this chapter). 1.cPolitical influence and lobbying activities BNP Paribas engages with the public authorities in the greatest respect of the principles of ethics and transparency. In 2012, its Executive Committee adopted a “Charter for Responsible Representation with respect to the Public Authorities”, which includes a series of fundamental commitments in terms of integrity, transparency, social responsibility and respect for the universal democratic values. In particular, it states that “BNP Paribas carries out its representation activities in line with its global approach and its public commitments relating to the environment and climate change, in particular its support for the objectives of the Paris Agreement”. Created at the end of 2012, the Institutional Affairs Department is responsible for ensuring, on behalf of the General Management, the coherence of the positions defended on Group-level issues. It brings together Prudential Affairs, Recovery and Resolution, Relations with the ECB and European and French Public Affairs. BNP Paribas conducts its interest representation with particular attention to measures relating to prudential requirements and issues affecting its competitiveness in this area, compared to its international competitors. On these topics, the objective is to ensure that the regulations applicable to its activities strike the right balance between the imperatives of financial stability and the development of a competitive European banking sector, at the service of the economy. Operational feasibility and implementation cost control are also at the core of concerns. It is under these conditions that BNP Paribas can fully contribute to the financing of the economy and the strategic autonomy of the EU, while meeting the client’s needs in the best possible way. In order to ensure that representation activities are consistent with public communication on impacts, risks and opportunities, the Group’s positions are validated within a dedicated governance. BNP Paribas has memberships with federations and professional associations. However, pursuant to the rules defined by the Group, these are not allowed to make any political donations in the name of BNP Paribas. These third-party associations have numerous subscribers, and BNP Paribas does not control them. They have a legal capacity to act independently and may perform actions in which BNP Paribas is not concerned. Finally, BNP Paribas is registered in the register of interest representatives managed by the High Authority for Transparency in Public Life (HATVP) (Registration number: N/A), in the EU Transparency Register (registration number: 78787381113-69), in the Lobby Register of the Bundestag in Germany (registration number: R001771), and in the register of the Belgian Parliament (registration number: N/A). 2.ADDITIONAL ENTITY SPECIFIC INFORMATION 2.aMarket integrity and financial security Market Integrity Open and transparent markets are essential for economic development. The BNP Paribas Group is committed to helping maintain and preserve market integrity. The market integrity programme is designed in strict compliance with regulations and is based on the following pillars: operational policies and procedures; IT tools; teams of specialised employees; an independent internal control and audit framework; a continued training programme. It consists of two main activities: management of inside information and the prevention of conflicts of interest; monitoring of transactions and communications and contributing to the proper functioning and transparency of markets. Managing inside information and preventing conflicts of interest The BNP Paribas Group has put in place policies relating to the management of inside and sensitive information, market sounding activities, benchmarks contribution, protection of confidential data, in compliance with national and international regulations, as well as with best practices and recommendations from the competent authorities. The Group has set up an internal framework to ensure the treatment process and appropriate circulation of inside information. Inside information and its holders within the Group are subject to a permanent census. In order to guarantee their confidentiality and to prevent insider trading, information barriers and strict segregation of activities (Investment Banking, own account transactions, asset management) are systematically put in place and monitored. Conflicts of interest are also subject to a process of detection, identification of the involved internal and external players and prevention of risks related to situations of conflicts of interest in market activities (e.g. the maintenance and management of lists of issuers or clients). Monitoring transactions and communications and contributing to the proper functioning and market transparency In order to protect the integrity of the markets, a framework against market abuse situation has been implemented to prevent, detect and report it when applicable. This framework covers the dissemination or abusive use of inside information in order to prevent insider trading, price manipulation and the disclosure of false information. It covers both the brokerage activities and the Group’s own-account activities acting as counterparty or market maker. Transactions potentially suspicious and constituting market abuse are subject of a report to the authority concerned. This framework is associated with the monitoring of orders and transactions in all the businesses concerned, as well as compliance with pre- and post-trade transparency obligations and post-trade declarations. In addition, monitoring of oral and electronic communications is in place, according to procedures specific to each business lines. The scheme also includes reporting obligations regarding long and short positions. Financial security BNP Paribas and its branches and subsidiaries in France and abroad are firmly committed to complying with international economic sanctions as well as to the fight against money laundering and terrorist financing, and with the relevant laws and regulations in all countries where the Group operates. In this context, the BNP Paribas Group has adopted and maintains a comprehensive financial security programme designed with a risk-based approach and applicable in all its entities. Significant human and technical resources are devoted to it, both by the business lines and by the Compliance Function. This programme relies on the following pillars: operational policies and procedures; IT tools; teams dedicated to the implementation of the financial security programme; independent internal control and audit framework; a continued training programme. It consists of three main activities: Know Your Customers; respect of international sanctions and embargoes; anti-money laundering and countering the financing of terrorism. Know your customers Know Your Customers (KYC) is an essential component of financial security risk management that supports both the prevention of money laundering and terrorist financing and the compliance with international sanctions. It also contributes to the fight against corruption (see section 2.d Prevention and detection of corruption and bribery, this chapter), compliance with tax laws and regulations, protection of clients’ interests, social and corporate responsibility, and market integrity. It requires the implementation of a set of due diligence measures aimed at identifying the customers, their beneficial owners and their agents, analysing the nature and location of their activity, and taking into account the purpose of their business relationship with BNP Paribas. These due diligence measures are strengthened for high-risk clients, politically exposed persons, as well as in other types of high-risk situations. Similar measures are applied to suppliers and other types of partners of the Group. Compliance with international sanctions and embargoes Compliance with international sanctions and embargoes issued by the European Union, France, the United States and any other national authority when applicable is based on a twofold framework: customer databases are regularly screened for the presence of sanctioned individuals; international transactions are filtered to identify any attempted violation or circumvention of sanctions or embargoes. These frameworks, implemented in all the Group’s entities, consist of framed processes, in particular: the regular update of sanctions lists; conducting investigations on customers, third parties and transactions that have generated screening or filtering alerts; reporting to the authorities. They are also complemented by a training programme for employees and independent controls. Anti-money laundering and countering the financing of terrorism Specific frameworks based on both automated transaction monitoring tools and employee vigilance aim to detect and report to the competent authorities: money laundering, which consists of the integration into the financial framework of the proceeds of criminal activities such as corruption, tax crime, drug trafficking, organised crime, embezzlement of funds to conceal their illegal origin; the financing of terrorism through funds whose origin may be legitimate or illicit. The investigation of alerts and the timely reporting of suspicions to the authorities, as well as subsequent measures, are subject to dedicated procedures. Oversight of geographical risks In addition to the measures described above, BNP Paribas Group maintains an assessment of the financial security risks related to countries or regions, which complements the analysis of prospective or existing business relationships, and which may lead to the refusal or termination of a business relationship, or to the rejection of a transaction or the provision of a financial service. 2.bCybersecurity General information In the ever-changing landscape of the global financial industry, BNP Paribas recognises the central role of Information and Communication Technologies (ICT) in maintaining operational resilience. Present in different regions of the world, BNP Paribas faces a multitude of challenges in ensuring the security, robustness and resilience of ICT systems. The interconnected nature of operations, coupled with the rapid pace of technological advancement and the need to rely increasingly on third parties to deliver critical services, requires a strategic and adaptive approach to risk management. BNP Paribas Group is subject to cybersecurity risk, or risk caused by a malicious and/or fraudulent act, committed virtually, with the intention of manipulating information (confidential data, bank/insurance, technical or strategic), processes and users, in order to cause material losses to the BNP Paribas Group’s subsidiaries, employees, partners and clients and/or for the purpose of extortion (ransomware). An increasing number of companies (including financial institutions) have in recent years experienced intrusion attempts or even breaches of their information technology security, some of which have involved sophisticated and highly targeted attacks on their computer networks. Because the techniques used to obtain unauthorised access, disable or degrade service, steal confidential data or sabotage information systems have become more sophisticated, change frequently and often are not recognised until launched against a target, the BNP Paribas Group and its third-party service providers may be unable to anticipate these techniques or to implement in a timely manner effective and efficient countermeasures. Any failures of or interruptions in the BNP Paribas Group’s information systems or those of its providers and any subsequent disclosure of confidential information related to any client, counterpart or employee of the BNP Paribas Group (or any other person) or any intrusion or attack against its communication system could cause significant losses and have an adverse effect on the BNP Paribas Group’s reputation, financial condition and results of operations. Regulatory authorities now consider cybercriminality to be a growing systemic risk for the financial sector. They have stressed the need for financial institutions to improve their resilience to cyber-attacks by strengthening internal IT monitoring and control procedures. A successful cyber-attack could therefore expose the Group to a regulatory fine, especially should any personal customer data be lost Governance The Group’s General Management oversees cybersecurity through dedicated governance that provides an overview of the Group’s situation. Among the Committees of the Board of directors of BNP Paribas is the Internal Control, Risk Management and Compliance Committee (CCIRC) for the oversight of risk management. The CCIRC monitors the deployment plan of the Group’s cybersecurity programme, its action plan, the priority themes and the related budget on a semi-annual basis. In addition, the Group’s Executive Committee, with all the business directors, is involved in the Cybersecurity programme, which allows for decision-making at the right level if necessary. At the same time, the Group IT Risk Committee (GITRC) is an ad hoc decision-making body at the level of senior management to deal with cyber risks, risks related to the implementation of the IT strategy and operational resilience. Cybersecurity governance is based on the “three lines of defence” model, an integrated model covering all Group entities described in chapter 2 Corporate governance and internal control, 2.4 Internal control. Policies & Responsibilities To address cybersecurity risks, the Group has set up a global system based mainly on a cybersecurity reference framework and a cybersecurity strategy entitled “Cyber Trust 25”. Within the Group’s ICT and cyber risk management reference framework, there is a specific reference framework for cybersecurity. This is composed of a set of documents (policies, norms and standards) that define the basic requirements for cybersecurity, offering a standardised approach to mitigating risks. Aligned with industry best practices, this ensures consistent implementation of processes and associated controls within BNP Paribas, strengthening the overall cybersecurity posture. The Cybersecurity Reference Framework is composed of several cybersecurity themes. Each theme may contain procedures (i.e. types of policies to be applied), requirements files or guidelines. These cybersecurity topics are defined to address the specific cybersecurity risks that the Group faces, such as disruption of services or data leakage for example, and the associated impacts, such as reputational damage or legal proceedings by regulatory authorities. These requirements and procedures of the framework are mandatory for all Group Entities worldwide. In addition to these requirements, the Entities may define additional local requirements to address specific risks at the entity level that are not addressed by the Group. The Group has also defined a cybersecurity strategy to support BNP Paribas’ digital transformation. Entitled Cyber Trust 25, this strategy is based on 5 pillars: acting responsibly towards clients and regulators; being a cyber reference in the market to be trustworthy and attract talents; accelerating transformation and innovation; being a pleasant place to work by building on our corporate social responsibility ambitions; ensuring zero digital waste based on the needs and risks of the company. The deployment of the Cyber Trust 25 strategy applies to all the cybersecurity teams of the Group’s Entities, grouped under the term “Filière Cyber”. The definition of a global cybersecurity vision and strategy is the responsibility of the Group’s Chief Information Security Officer (CISO). It ensures that cybersecurity and information and communication technology (ICT) risk management are integrated into the project delivery process by providing appropriate policies, practices and guidelines. He is also responsible for defining the cybersecurity programme and remediation projects to address the Group’s cybersecurity risks, while ensuring their implementation within the Group’s entities. Actions The Group and its direct Entities apply the requirements set out in the Cybersecurity Reference Framework. They take proactive steps to ensure compliance with published rules, requirements, and deadlines while effectively allocating resources. The published requirements are transposed into concrete measures and initiatives aimed at improving the Group’s cybersecurity posture. The Entities review the requirements published in the Cybersecurity Reference Framework. They carefully assess the scope, applicability and timelines associated with each requirement, ensuring that they understand their obligations. Based on this assessment, the Entities develop detailed action plans outlining tasks, milestones and timelines for implementation. These action plans prioritise activities based on risk level, regulatory mandates and operational objectives. The focus is on establishing clear accountabilities for each task to ensure effective execution. The Entities shall allocate the necessary resources, including human, technological and budgetary resources, to support the implementation of the action plans. Budgets are carefully reviewed and adjusted as necessary to account for costs associated with compliance efforts. In addition, each pillar of the Cyber Trust 25 strategy is made up of several ambitions, which are themselves broken down into initiatives that should lead to deliverables or concrete actions. In order to take into account the constant evolution of the cyber threat, the ambitions of the Cyber Trust 25 strategy can be adapted and define complementary action plans. Targets Within the ICT and cyber risk management reference framework, each requirement related to cybersecurity topics is associated with a due date. The progress of the Group’s Entities in each of the cybersecurity themes is monitored as part of the BNP Paribas Cybersecurity Programme. This programme takes a risk-based approach to assess Entities and calculate the level of cyber maturity they need to achieve, based on the goals set out in a cybersecurity matrix. Finally, the initiatives associated with the Cyber Trust 25 cybersecurity strategy are the subject of targeted and quantified action plans and objectives. Metric Several metrics have been set up to measure the level and progress of the Group’s Entities in terms of cybersecurity. Each year, several campaigns are carried out by the Cybersecurity departments of the Group Entities integrated into the Cybersecurity Programme to assess compliance with the implementation of the objectives set. The results are communicated to management during the Cybersecurity Panoramas. The progress of Cyber Trust 25’s ambitions is regularly monitored during dedicated steering committees, whose objective is to present the progress on each of the initiatives integrated into the strategy. Tables of indicators are presented and commented on. In addition, the Entities rely on the ICT Generic Control Libraries to conduct self-assessments regarding the implementation of IT governance, IT risk, and cybersecurity requirements. These libraries provide a structured framework for the Entities to assess their compliance with established controls, identify areas of non-compliance, and develop remediation plans as required. Appendices Appendix 1: General basis for preparation of sustainability statements Although meeting the size criteria required by the CSRD for the preparation of sustainability statements, some of the Group’s subsidiaries benefit from the exemption regime provided for in articles 19 bis (9) and 29 bis (8) of Accounting Directive 2013/34. These entities domiciled in the European Union meet the size criteria to be subject to the publication of sustainability statements on a sub-consolidated basis, but they do not issue securities listed on the EU regulated markets, and belong to a parent entity which is itself subject to publication on a consolidated basis. BNP Paribas prepares its sustainability statements on a consolidated basis in accordance with the scope of consolidation presented in the notes to the financial statements (see chapter 4, notes 9k and 1b). The entities in the table below are the European entities that benefit from the exemption regime provided for by articles 19a (9) and 29a (8) of Accounting Directive 2013/34. These entities would have been subject to the publication of sustainability statements from 1 January 2025 if they had not themselves been subsidiaries of the BNP Paribas Group. ➤TABLE NO. 49: LIST OF BNP PARIBAS SUBSIDIARIES EXEMPTED FROM A SUSTAINABILITY DISCLOSURE AND COVERED BY THE BNP Paribas Group PUBLICATION Name Country BNPP Cardif France BNPP Financial Markets France BNPP Lease Group France BNPP Personal Finance France Financière des Paiements Électroniques France Banca Nazionale Del Lavoro SPA Italy BNPP Cardif Vita Compagnia di Assicurazione E Riassicurazione SPA Italy Findomestic Banca SPA Italy BGL BNPP Luxembourg Appendix 2: Disclosures of Information in relation to Specific Circumstances Time Horizons, Estimations, Sources of Uncertainty The existence of specific circumstances may change the content of the sustainability information. This can include deviations from the time horizons initially defined by the standard, but also the use of estimated data in the value chain, or sources of estimation and outcome uncertainty. The table below refers to the parts of the sustainability statement which help to understand these specific circumstances. ➤TABLE NO. 50: TIME HORIZONS, ESTIMATES, SOURCES OF UNCERTAINTY Description of the disclosure requirements Corresponding Information CSRD sections Time Horizon 9.a. Disclosure of the definitions of medium- or long-term time horizons in case of deviations from the ones defined 9.b. Disclosure of the reasons for applying those definitions Climate stress tests Chapter 7.1.2 Climate Change 1.b Material impacts, risks and opportunities and their interaction with strategy and business model Value chain estimation 10.a. Disclosure of the metrics included in the upstream and/or downstream value chain data estimated using indirect sources, such as sector-average data or other proxies 10.b. Description of the basis for preparation used for these metrics which include value chain data estimated using indirect sources 10.c. Description of the resulting level of accuracy on these metrics that include value chain data estimated using indirect sources 10.d. Where applicable, description of the planned actions to improve the accuracy in the future for these metrics which include value chain data estimated using indirect sources Climate stress tests Scope 3 Category 15 (financed emissions) Scope 3 Category 6 (business travel) Targets and baselines on the most greenhouse gas-emitting sectors Chapter 7.1.2 Climate Change 3.d Gross greenshouse gas emissions Chapter 7.1.2 Climate Change 3.a Group's metrics and targets related to its impact on climate change Chapter 7.1.2 Climate Change 3.b Group’s metrics and targets related to its climate change opportunities Sources of estimation and outcome uncertainty 11.a. Disclosure of quantitative metrics and monetary amounts that are subject to a high level of measurement uncertainty 11.b.i. Disclosure of information about the sources of measurement uncertainty 11.b.ii. Disclosure of the assumptions, approximations and judgements the entity has made in measuring it Climate stress tests Scope 3 Category 15 (financed emissions) Scope 3 Category 6 (business travel) Chapter 7.1.2 Climate Change 1.b Material impacts, risks and opportunities and their interaction with strategy and business model Chapter 7.1.2 Climate Change 3.d Gross greenhouse gas emissions More specifically, regarding metrics on the most greenhouse gas-emitting sectors: 10.a. Several metrics include upstream or downstream (scope 3) data. These are respectively: financed absolute emissions (expressed in MtCO2e) for oil and gas upstream (scope 1, 2 and scope 3 combustion) and refining activities (scopes 1,2); automotive Emission intensity covering CO2 tailpipe emissions (i.e. Tank-to-Wheel / scope 3 downstream emissions), expressed in gCO2/km WLTP (Worldwide harmonised Light Vehicle Test Procedure). CO2 covers most of the emissions in the automotive sector; the emissions associated to the upstream generation of fuel (scope 3 upstream emissions) are also considered for the Aviation and Shipping sectors, thus defining alignment metrics expressed on a Well-To-Wake basis. It should be noted that the emissions associated to the use of energy by building tenants for the Commercial Real Estate (CRE) sector (scope 3 downstream emissions) rely on the measurement methodologies implemented by REITs when feeding their sustainability reports which is considered as a direct measurement source. Hence, CRE is excluded from the analysis below. 10.b.Basis for preparation used for these metrics include: O&G scope 3 emissions are computed using company level Oil and gas production figures given by Wood Mackenzie database, the share of world refinery output given by IEA (for a more granular type of fuel split of oil production) and emission factors per type of fuel given by 2006 IPCC report. These are the most up-to-date available figures. Please note that fuel emission factors are physical parameters so they are stable over time; Automotive emission intensity is computed using company level automotive production data in each technology (Electric Vehicles, Plug in hybrids, Mild hybrid and Internal Combustion engines) given by S&P - IHS Markit database and average technologies emission factors computed from Asset Impact database; the switch from Tank-to-Wake (TTW) to a Well-to-Wake (WTW) view for Aviation relies on a conversion factor for the fuel given by ICAO, and is performed by an internal team; the switch from a Tank-to-Wake to a Well-To-Wake view for Shipping relies on the use of average conversion factors per vessel type, as provided by the shipping consulting firm DNV. 10.c. The resulting level of uncertainty of using indirect sources to estimate upstream and/or downstream value chain data such as sector-average data or other proxies: O&G scope 3 downstream emission computation accuracy is very high as it relies on the latest Wood Mackenzie asset level production data that is aggregated at the company level (high level accuracy production data) and on physical parameters that are stable over time and on an average granular split of oil production per type of fuel given by well-recognised bodies (IEA and IPCC) (high level accuracy); Automotive scope 3 emission intensity computation accuracy is medium as it relies on the latest S&P Global- IHS markit asset level production data which is aggregated at the company level (high level accuracy production data) and average emission factors per technology as per Asset Impact (medium level accuracy). Indeed, no global widely recognised up-to-date automotive emission intensity database is currently available. We therefore rely on Asset Impact, which aggregates the emission intensities that can be retrieved from local regulatory sources (e.g. EEA); the accuracy of aviation sector emission intensity is high as it relies on asset level activity data (air traffic and fuel consumption with a high level of accuracy), on emission factor to convert fuel consumption into emission (high level accuracy as it is a stable physical parameter) and on an average TTW to WTW conversion factor provided by ICAO (low level accuracy as we use a global average conversion factor); the accuracy of shipping sector emission intensity is high as it relies on asset level activity data (distance and fuel consumption with a high level of accuracy), on emission factor to convert fuel consumption into emission (high level accuracy as it is a stable physical parameter) and on an average TTW to WTW conversion factor provided by shipping consulting firm that has based its analyses on real shipping data (low level accuracy as we use a global average conversion factor). 10.d. The computations are currently done using the best available data. It is planned to continue using the most up-to-date data and more granular emission factors and conversion factors or as soon as they are available. Metrics and Targets All targets defined by the Group relate to material impacts, risks and opportunities from the stakeholders’ point of view. Where metrics presented in the report have been validated by an external body other than the assurance provider, the body has been mentioned. Disclosures stemming from other legislation or generally accepted sustainability reporting pronouncements The Group’s sustainability statement includes information stemming from other legislation which requires the undertaking to disclose sustainability information or from generally accepted sustainability reporting standards and frameworks, in addition to the information prescribed by the CSRD disclosure standards. These disclosures are listed here-below. ➤TABLE NO. 51: OTHER LEGISLATION OR GENERALLY ACCEPTED SUSTAINABILITY REPORTING PRONOUNCEMENTS Legislation or generally accepted sustainability reporting pronouncements Datapoint description References Article L.22-10-35 of the French Commercial Code Impact of activities on the fight against tax evasion Chapter 7.1.6 Business conduct / section 1.a Corporate culture and business conduct policies / Page 777 Article L.22-10-35 of the French Commercial Code Actions to promote the link between the Nation and its armed forces and to support the commitment to the reserves of the National Guard Chapiter 7.1.4 Own workforce / section 2.d Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions / Page 750 Incorporation by reference Some specific data, prescribed by a publication requirement, have been incorporated by cross-references and are listed below. ➤TABLE NO. 52: LIST OF INCORPORATION BY REFERENCE Disclosure Requirement Datapoint description Chapter/section/page where cross-reference is used (in) Chapter/section/page that the cross-reference mentions (out) ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies §21a - Composition and diversity of the members of the undertaking’s administrative, management and supervisory bodies Chapter 7.1.1 General Disclosures / section 1.a Role of administrative, management and supervisory bodies in sustainabilty / Pages 685-686 Chapter 2 Corporate governance and internal control / 2.1.2 BNP Paribas Corporate governance / section1.b - The Board of directors: a collegial body with collective competence / Page 56 §21b - Representation of employees and other workers §21c - Experience relevant to the sectors, products and geographic locations of the undertaking §21d - Percentage by gender and other aspects of diversity that the undertaking considers. The Board’s gender diversity shall be calculated as an average ratio of female to male Board members §21e - the percentage of independent Board members ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies §23a - The sustainability-related expertise that the bodies, as a whole, either directly possess or can leverage, for example through access to experts or training Chapter 7.1.1. General Disclosures / section 1.a Role of administrative, management and supervisory bodies in sustainability / Page 686 Chapter 2 Corporate governance and internal control / 2.1.2 BNP Paribas Corporate governance / section 1.d Directors’ training and information / Page 60 ESRS G1 Disclosure requirement related to ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies §5b - The expertise of the administrative, management and supervisory bodies on business conduct matters Chapter 7.1.1 General Disclosures / section 1.a Role of administrative, management and supervisory bodies in sustainability / Page 686 Chapter 2. Corporate governance and internal control / 2.1.2 BNP Paribas Corporate governance / section 1.b - The Board of directors: a collegial body with collective competence / Page 56 ESRS 2 GOV-3 – Integration of sustainability-related performance in incentive schemes §29 - The undertaking shall disclose the following information about the incentive schemes and remuneration policies linked to sustainability matters for members of the undertaking’s administrative, management and supervisory bodies, where they exist: a) a description of the key characteristics of the incentive schemes; b) whether performance is being assessed against specific sustainability-related targets and/or impacts, and if so, which ones; c) whether and how sustainability-related performance metrics are considered as performance benchmarks or included in remuneration policies; d) the proportion of variable remuneration dependent on sustainability-related targets and/or impacts Chapter 7.1.1 General Disclosures / section 1.b Integration of sustainability-related performance in incentive schemes / Page 688 Chapter 2 Corporate governance and internal control / 2.1.3 Compensation and benefits awarded to the Group’s directors and corporate officers / paragraph Criteria linked to the Group’s CSR performance / Page 89 ESRS 2 GOV-5 - Risk management and internal controls over sustainability reporting 36.The undertaking shall disclose the following information: a) the scope, main features and components of the risk management and internal control processes and systems in relation to sustainability reporting; b) the risk assessment approach followed, including the risk prioritisation methodology; c) the main risks identified and their mitigation strategies including related controls Chapter 7.1.1 General Disclosures / section 1.c Risk management and internal controls over sustainability reporting / Page 688 Chapter 2 Corporate governance and internal control / 2.4 Internal control / Page 123 ESRS E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions AR 46 h) for each significant scope 3 GHG category, disclose the reporting boundaries considered, the calculation methods for estimating the GHG emissions as well as if and which calculation tools were applied. The scope 3 categories should be consistent with the GHGP and include: i.indirect scope 3 GHG emissions from the consolidated accounting group (the parent and its subsidiaries), ii.indirect scope 3 GHG emissions from associates, joint ventures, and unconsolidated subsidiaries for which the undertaking has the ability to control the operational activities and relationships (i.e., operational control), iii. Scope 1, 2 and 3 GHG emissions from associates, joint ventures, unconsolidated subsidiaries (investment entities) and joint arrangements for which the undertaking does not have operational control and when these entities are part of the undertaking’s upstream and downstream value chain. Chapter 7.1.2 Climate Change / section 3.d Gross greenhouse gas emissions / Page 727 Chapter 5 Risks and capital adequacy – Pillar 3 / 5.11 Environmental, social and governance risk / section Banking book – Indicators of potential climate change transition risk / Page 582 Appendix 3: Disclosure Requirements in ESRS covered by the sustainability statement Description of process for identifying material information After conducting the double materiality assessment on the topics, BNP Paribas performs a materiality assessment of the information to be disclosed. This assessment is carried out qualitatively, based on the adequacy of the information required by the European CSRD regulation with BNP Paribas’ activities. Indeed, some information is not relevant due to the nature of the Group’s financial activities or strategy, accordingly it is considered non-material for BNP Paribas and not published. List of data points provided for in cross-cutting and topical standards that derive from other European Union legislation Some CSRD data points are required by other EU legislation, as listed below. ➤TABLE NO. 53: TABLE OF CSRD DATAPOINTS THAT DERIVE FROM OTHER EU LEGISLATION Disclosure Requirement and related datapoint SFDR reference(135) Pillar 3 reference(136) Benchmark regulation reference(137) EU Climate Law reference(138) References in the Sustainability Statement ESRS 2 GOV-1 Indicator number 13 of Table #1 of Annex 1 Commission Delegated Regulation (EU) 2020/1816(139), Annex II 7.1.1 General Disclosures / section 1. Governance Board’s gender diversity paragraph 21 (d) ESRS 2 GOV-1 Delegated Regulation (EU) 2020/1816, Annex II 7.1.1 General Disclosures / section 1. Governance Percentage of Board members who are independent paragraph 21 (e) ESRS 2 GOV-4 Indicator number 10 Table #3 of Annex 1 7.1.1 General Disclosures / section 1. Governance Statement on due diligence paragraph 30 ESRS 2 SBM-1 Indicators number 4 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453(140) Table 1: Qualitative information on Environmental risk and Table 2: Qualitative information on Social risk Delegated Regulation (EU) 2020/1816, Annex II Not applicable Involvement in activities related to fossil fuel activities paragraph 40 (d) i) ESRS 2 SBM-1 Indicator number 9 Table #2 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Not applicable Involvement in activities related to chemical production paragraph 40 (d) ii) ESRS 2 SBM-1 Indicator number 14 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1818(141), Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not applicable Involvement in activities related to controversial weapons paragraph 40 (d) iii) ESRS 2 SBM-1 Delegated Regulation (EU) 2020/1818, Article 12(1) Delegated Regulation (EU) 2020/1816, Annex II Not applicable Involvement in activities related to cultivation and production of tobacco paragraph 40 (d) iv) ESRS E1-1 Regulation (EU) 2021/1119, Article 2(1) 7.1.2 Climate Change / section 1. Strategy Transition plan to reach climate neutrality by 2050 paragraph 14 ESRS E1-1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book-Climate Change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, Article 12.1 d) to g), and Article 12.2 7.1.2 Climate Change / section 1. Strategy Undertakings excluded from Paris-aligned Benchmarks paragraph 16 (g) ESRS E1-4 GHG Indicator number 4 Table #2 of Annex 1 Article 449a Delegated Regulation (EU) 2020/1818, Article 6 7.1.2 Climate Change / section 3. Metrics and targets Emission reduction targets paragraph 34 Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics ESRS E1-5 Indicator number 5 Table #1 and Indicator number 5 Table #2 of Annex 1 Not material information Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors) paragraph 38 ESRS E1-5 Indicator number 5 Table #1 of Annex 1 7.1.2 Climate Change / section 3. Metrics and targets Energy consumption and mix paragraph 37 ESRS E1-5 Indicator number 6 Table #1 of Annex 1 Not material information Energy intensity associated with activities in high climate impact sectors paragraphs 40 to 43 ESRS E1-6 Indicators number 1 and 2 Table #1 of Annex 1 Article 449a; Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 1: Banking book – Climate change transition risk: Credit quality of exposures by sector, emissions and residual maturity Delegated Regulation (EU) 2020/1818, article 5(1), 6 and 8(1) 7.1.2 Climate Change / section 3. Metrics and targets Gross Scope 1, 2, 3, and Total GHG emissions paragraph 44 ESRS E1-6 Indicators number 3 Table #1 of Annex 1 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 Template 3: Banking book – Climate change transition risk: alignment metrics Delegated Regulation (EU) 2020/1818, article 8(1) 7.1.2 Climate Change / section 3. Metrics and targets Gross GHG emissions intensity paragraphs 53 to 55 ESRS E1-7 Regulation (EU) 2021/1119, article 2(1) 7.1.2 Climate Change / section 3. Metrics and targets GHG removals and carbon credits paragraph 56 ESRS E1-9 Delegated Regulation (EU) 2020/1818, Annex II Delegated Regulation (EU) 2020/1816, Annex II Phase-in application Exposure of the benchmark portfolio to climate-related physical risks paragraph 66 ESRS E1-9 Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 46 and 47; Template 5: Banking book – Climate change physical risk: Exposures subject to physical risk. Phase-in application Disaggregation of monetary amounts by acute and chronic physical risk paragraph 66 (a) ESRS E1-9 Phase-in application Breakdown of the carrying value of its real estate assets by energy-efficiency classes paragraph 67 (c) ESRS E1-9 Location of significant assets at material physical risk paragraph 66 (c) Article 449a Regulation (EU) No 575/2013; Commission Implementing Regulation (EU) 2022/2453 paragraphs 34; Template 2: Banking book -Climate change transition risk: Loans collateralised by immovable property - Energy efficiency of the collateral Phase-in application ESRS E1-9 Delegated Regulation (EU) 2020/1818, Annex II Phase-in application Degree of exposure of the portfolio to climate-related opportunities paragraph 69 ESRS E2-4 Indicator number 8 Table #1 of Annex 1 Indicator number 2 Table #2 of Annex 1 Indicator number 1 Table #2 of Annex 1 Indicator number 3 Table #2 of Annex 1 Not material information Amount of each pollutant listed in Annex II of the E- PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 ESRS E3-1 Indicator number 7 Table #2 of Annex 1 Not material information Water and marine resources paragraph 9 ESRS E3-1 Indicator number 8 Table 2 of Annex 1 Not material information Dedicated policy paragraph 13 ESRS E3-1 Indicator number 12 Table #2 of Annex 1 Not material information Sustainable oceans and seas paragraph 14 ESRS E3-4 Indicator number 6.2 Table #2 of Annex 1 Not material information Total water recycled and reused paragraph 28 (c) ESRS E3-4 Indicator number 6.1 Table #2 of Annex 1 Not material information Total water consumption in m3 per net revenue on own operations paragraph 29 ESRS 2- IRO 1 - E4 paragraph 16 (a) i) Indicator number 7 Table #1 of Annex 1 Not material information ESRS 2- IRO 1 - E4 paragraph 16 (b) Indicator number 10 Table #2 of Annex 1 Not material information ESRS 2- IRO 1 - E4 paragraph 16 (c) Indicator number 14 Table #2 of Annex 1 Not material information ESRS E4-2 Indicator number 11 Table #2 of Annex 1 Not material information Sustainable land / agriculture practices or policies paragraph 24 (b) ESRS E4-2 Indicator number 12 Table #2 of Annex 1 Not material information Sustainable oceans / seas practices or policies paragraph 24 (c) ESRS E4-2 Indicator number 15Table #2 of Annex 1 Not material information Policies to address deforestation paragraph 24 (d) ESRS E5-5 Indicator number 13 Table #2 of Annex 1 Not material information Non-recycled waste paragraph 37 (d) ESRS E5-5 Indicator number 9 Table #1 of Annex 1 Not material information Hazardous waste and radioactive waste paragraph 39 ESRS 2- SBM3 - S1 Indicator number 13 Table #3 of Annex I 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Risk of incidents of forced labor paragraph 14 (f) ESRS 2- SBM3 - S1 Indicator number 12 Table #3 of Annex I 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Risk of incidents of child labor paragraph 14 (g) ESRS S1-1 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex I 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Human rights policy commitments paragraph 20 ESRS S1-1 Delegated Regulation (EU) 2020/1816, Annex II 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 21 ESRS S1-1 Indicator number 1 Table #3 of Annex I 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Processes and measures for preventing trafficking in human beings paragraph 22 ESRS S1-1 Indicator number 1 Table #3 of Annex I 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Workplace accident prevention policy or management system paragraph 23 ESRS S1-3 Indicator number 5 Table #3 of Annex I 7.1.4 Own workforce / section 2. Impacts, risks and opportunities management Grievance/complaints handling mechanisms paragraph 32 (c) ESRS S1-14 Indicator number 2 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 7.1.4 Own workforce / section 3. Metrics and targets Number of fatalities and number and rate of work-related accidents paragraph 88 (b) and (c) ESRS S1-14 Indicator number 3 Table #3 of Annex I 7.1.4 Own workforce / section 3. Metrics and targets Number of days lost to injuries, accidents, fatalities or illness paragraph 88 (e) ESRS S1-16 Indicator number 12 Table #1 of Annex I Delegated Regulation (EU) 2020/1816, Annex II 7.1.4 Own workforce / section 3. Metrics and targets Unadjusted gender pay gap paragraph 97 (a) ESRS S1-16 Indicator number 8 Table #3 of Annex I 7.1.4 Own workforce / section 3. Metrics and targets Excessive Chief Executive Officer pay ratio paragraph 97 (b) ESRS S1-17 Indicator number 7 Table #3 of Annex I 7.1.4 Own workforce / section 3. Metrics and targets Incidents of discrimination paragraph 103 (a) ESRS S1-17 Indicator number 10 Table #1 and Indicator number 14 Table #3 of Annex I Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818 Art. 12 (1) 7.1.4 Own workforce / section 3. Metrics and targets Non-respect of UNGPs on Business and Human Rights and OECD paragraph 104 (a) ESRS 2- SBM3 – S2 Indicators number 12 and n. 13 Table #3 of Annex I Not material information Significant risk of child labour or forced labour in the value chain paragraph 11 (b) ESRS S2-1 Indicator number 9 Table #3 and Indicator n. 11 Table #1 of Annex 1 Not material information Human rights policy commitments paragraph 17 ESRS S2-1 Indicator number 11 and n. 4 Table #3 of Annex 1 Not material information Policies related to value chain workers paragraph 18 ESRS S2-1 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art. 12 (1) Not material information Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines paragraph 19 ESRS S2-1 Delegated Regulation (EU) 2020/1816, Annex II Not material information Due diligence policies on issues addressed by the fundamental International Labour Organization Conventions 1 to 8, paragraph 19 ESRS S2-4 Indicator number 14 Table #3 of Annex 1 Not material information Human rights issues and incidents connected to its upstream and downstream value chain paragraph 36 ESRS S3-1 Indicator number 9 Table #3 of Annex 1 and Indicator number 11 Table #1 of Annex 1 Not material information Human rights policy commitments paragraph 16 ESRS S3-1 Indicator number 10 Table #1 Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art. 12 (1) Not material information Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines paragraph 17 ESRS S3-4 Indicator number 14 Table #3 of Annex 1 Not material information Human rights issues and incidents paragraph 36 ESRS S4-1 Indicator number 9 Table #3 and Indicator number 11 Table #1 of Annex 1 7.1.5 Consumers and end-users / section 2. Impact, risk and opportunities management Policies related to consumers and end-users paragraph 16 ESRS S4-1 Indicator number 10 Table #1 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II Delegated Regulation (EU) 2020/1818, Art. 12 (1) 7.1.5 Consumers and end-users / section 2. Impact, risk and opportunities management Non-respect of UNGPs on Business and Human Rights and OECD guidelines paragraph 17 ESRS S4-4 Indicator number 14 Table #3 of Annex 1 7.1.1 General Disclosures Human rights issues and incidents paragraph 35 ESRS G1-1 Indicator number 15 Table #3 of Annex 1 7.1.6 Business conduct / section 1. Impact, risk and opportunities management United Nations Convention against Corruption paragraph 10 (b) ESRS G1-1 Indicator number 6 Table #3 of Annex 1 7.1.6 Business conduct / section 1. Impact, risk and opportunities management Protection of whistle-blowers paragraph 10 (d) ESRS G1-4 Indicator number 17 Table #3 of Annex 1 Delegated Regulation (EU) 2020/1816, Annex II) 7.1.6 Business conduct / section 1. Impact, risk and opportunities management Fines for violation of anti-corruption and anti-bribery laws paragraph 24 (a) ESRS G1-4 Indicator number 16 Table #3 of Annex 1 7.1.6 Business conduct / section 1. Impact, risk and opportunities management Standards of anti-corruption and anti-bribery paragraph 24 (b) List of the disclosure requirements complied with in preparing the sustainability statement, following the outcome of the materiality assessment (content index) The Group complied with the disclosure requirements listed below in preparing the sustainability statement, following the outcome of the materiality assessment. ➤TABLE NO. 54: LIST OF THE DISCLOSURE REQUIREMENTS COMPLIED WITH IN PREPARING THE SUSTAINABILITY STATEMENT Disclosure Requirement (DR) CSRD Section ESRS 2 General Disclosures BP-1 General basis for preparation of sustainability statements 7.1.1 General Disclosures and Appendices BP-2 Disclosures in relation to specific circumstances Appendices GOV-1 The role of the administrative, management and supervisory bodies 7.1.1 General Disclosures 1. Governance GOV-2 Information provided to and sustainability matters addressed by the undertaking’s administrative, management and supervisory bodies GOV-3 - Integration of sustainability-related performance in incentive schemes GOV-4 Statement on due diligence GOV-5 Risk management and internal controls over sustainability reporting SBM-1 Strategy, business model and value chain 7.1.1 General Disclosures 2. Strategy, business model and stakeholders SBM-2 Interests and views of stakeholders SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.1 General Disclosures 3. Material impacts, risks and opportunities IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities IRO-2 Disclosure requirements in ESRS covered by the undertaking’s sustainability statement Appendices ESRS E1 Climate Change ESRS 2 GOV-3 Integration of sustainability-related performance in incentive schemes 7.1.1 General Disclosures 1. Governance E1-1 Transition plan for climate change mitigation 7.1.2 Climate change 1. Strategy ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model ESRS 2 IRO-1 Description of the processes to identify and assess material climate-related impacts, risks and opportunities 7.1.1 General Disclosures 3. Material impacts, risks and opportunities E1-2 Policies related to climate change mitigation and adaptation 7.1.2 Climate change 2. Impacts, risks and opportunities management E1-3 Actions and resources in relation to climate change policies 7.1.2 Climate change 3. Metrics and Targets E1-4 Targets related to climate change mitigation and adaptation E1-5 Energy consumption and mix E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions E1-7 GHG removals and GHG mitigation projects financed through carbon credits ESRS S1 Own Workforce ESRS 2 SBM-2 Interests and views of stakeholders ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.4 Own workforce 1. Strategy S1-1 Policies related to own workforce 7.1.4 Own workforce 2. Impacts, risks and opportunities management S1-2 Processes for engaging with own workers and workers’ representatives about impacts S1-3 Processes to remediate negative impacts and channels for own workers to raise concerns S1-4 Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 7.1.4 Own workforce 3. Metrics and Targets S1-6 Characteristics of the undertaking’s employees S1-7 Characteristics of non-employee workers in the undertaking’s own workforce S1-8 Collective bargaining coverage and social dialogue S1-9 Diversity metrics S1-10 Adequate wages S1-11 Social protection S1-12 Persons with disabilities S1-13 Training and skills development metrics S1-14 Health and safety metrics S1-15 Work-life balance metrics S1-16 Compensation metrics (pay gap and total compensation) S1-17 Incidents, complaints and severe human rights impacts ESRS S4 Consumers and end-users ESRS 2 SBM-2 Interests and views of stakeholders 7.1.1 General Disclosures 2. Strategy, business model and stakeholders ESRS 2 SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business mode 7.1.5 Consumers and end-users 1. Strategy S4-1 Policies related to consumers and end-users 7.1.5 Consumers and end-users 2. Impacts, risks and opportunities management S4-2 Processes for engaging with consumers and end-users about impacts S4-3 Processes to remediate negative impacts and channels for consumers and end-users to raise concerns S4-4 Taking action on material impacts on consumers and end-users, and approaches to managing material risks and pursuing material opportunities related to consumers and end-users, and effectiveness of those actions S4-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 7.1.5 Consumers and end-users 3. Metrics and Targets ESRS G1 Business Conduct ESRS 2 GOV-1 The role of the administrative, supervisory and management bodies 7.1.1 General Disclosures 1. Governance ESRS 2 IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 7.1.1 General Disclosures 3. Material impacts, risks and opportunities G1-1 Corporate culture and business conduct policies 7.1.6 Business conduct 1. Impacts, risks and opportunities management G1-3 Prevention and detection of corruption and bribery G1-4 Confirmed incidents of corruption or bribery 7.1.6 Business conduct 1. Impacts, risks and opportunities management G1-5 Political influence and lobbying activities Cybersecurity 7.1.6 Business conduct 2. Additional entity-specific Market Integrity and Financial Security Appendix 4: Disclosure requirements under THE European taxonomy The following tables relate to detailed tables of GAR and off-balance sheet assets ratio. The following tables are also available at https://invest.bnpparibas/en/document/aligned-activities-under-the-meaning-of-the-european-taxonomy-2024. ➤TABLE NO. 55: ASSETS FOR THE CALCULATION OF GAR (STOCKS, ELIGIBILITY AND ALIGNMENT MEASURED ON A TURNOVER BASIS) in millions of euros 31 December 2024 Total [gross] carrying amount Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors Taxonomy-eligible) of which towards taxonomy relevant sector (Taxonomy-eligible) of which towards taxonomy relevant sectors Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which Use of Proceeds of which transitional of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which transitional of which enabling GAR - Covered assets in both numerator and denominator 536,881 271,118 23,296 8,576 2,800 3,535 199 97 1,632 409 73 0 0 275,863 23,495 8,576 2,800 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 536,690 271,118 23,296 8,576 2,800 3,535 199 97 1,632 409 73 275,863 23,495 8,576 2,800 2 Financial undertakings 46,999 9,936 632 6 383 132 0 0 208 24 6 10,223 632 6 383 3 Credit institutions 18,347 3,256 1 0 1 1 0 0 0 0 0 3,257 1 0 1 4 Loans and advances 5,493 1,745 1 0 1 1 0 0 0 0 0 1,746 1 0 1 5 Debt securities 7,678 1,378 0 0 0 0 0 0 0 0 0 1,378 0 0 0 6 Equity instruments 5,176 133 0 0 0 0 0 0 0 0 0 133 0 0 0 7 Other financial corporations 28,653 6,680 631 6 382 131 0 0 208 24 6 6,966 631 6 382 8 of which investment firms 8,212 2,415 184 4 167 4 0 0 179 24 6 2,635 184 4 167 9 Loans and advances 2,895 629 67 4 51 2 0 0 4 24 6 673 67 4 51 10 Debt securities 4,708 1,779 116 0 116 2 0 0 175 0 0 1,956 116 0 116 11 Equity instruments 609 7 0 0 0 0 0 0 0 0 0 7 0 0 0 12 of which management companies 5,517 2,436 223 2 214 127 0 0 29 0 0 2,502 223 2 214 13 Loans and advances 3,545 1,836 189 1 181 112 0 0 25 0 0 1,897 189 1 181 14 Debt securities 882 490 34 1 33 15 0 0 3 0 0 492 34 1 33 15 Equity instruments 1,090 111 0 0 0 0 0 0 1 0 0 112 0 0 0 16 of which insurance undertakings 14,923 1,829 225 0 1 0 0 0 0 0 0 1,829 225 0 1 17 Loans and advances 7,420 890 117 0 1 0 0 0 0 0 0 890 117 0 1 18 Debt securities 4,038 420 81 0 0 0 0 0 0 0 0 420 81 0 0 19 Equity instruments 3,465 519 27 0 0 0 0 0 0 0 0 519 27 0 0 20 Non-financial undertakings 166,761 29,306 5,220 648 2,417 3,403 199 97 1,423 385 67 33,764 5,418 648 2,417 21 Loans and advances 160,350 27,336 4,838 648 2,252 3,373 195 92 1,395 382 67 31,738 5,034 648 2,252 22 Debt securities 1,962 1,190 314 0 162 5 3 5 22 1 0 1,217 317 0 162 23 Equity instruments 4,449 780 67 0 3 25 0 0 6 1 0 809 68 0 3 24 Households 311,173 231,857 17,444 7,922 0 0 0 0 0 0 0 231,857 17,444 7,922 0 25 of which loans collateralised by residential immovable property 207,123 207,123 17,444 7,922 0 0 0 0 0 0 0 207,123 17,444 7,922 0 26 of which building renovation loans 4,942 4,942 4,942 0 0 0 27 of which motor vehicle loans 19,792 19,792 19,792 0 0 0 28 Local government financing 11,756 19 1 20 0 0 0 29 Housing financing 0 0 0 0 30 Other local government financing 11,756 19 1 20 0 0 0 31 Collateral obtained by taking possession: residential and commercial immovable properties 191 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 739,821 33 Financial and Non-financial undertakings 281,298 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 135,458 35 Loans and advances 133,902 36 of which loans collateralised by commercial immovable property 46,009 37 of which building renovation loans 0 38 Debt securities 420 39 Equity instruments 1,136 40 Non-EU country counterparties not subject to NFRD disclosure obligations 145,840 41 Loans and advances 140,851 42 Debt securities 4,537 43 Equity instruments 452 44 Derivatives 20,930 45 On demand interbank loans 8,543 46 Cash and cash-related assets 2,544 47 Other categories of assets (e.g. Goodwill, commodities etc.) 426,506 48 Total GAR assets 1,276,702 271,118 23,296 8,576 2,800 3,535 199 97 1,632 409 73 275,863 23,495 8,576 2,800 49 Assets not covered for GAR calculation 1,173,632 50 Central governments and Supranational issuers 173,763 51 Central banks exposures 196,875 52 Assets Held for Trading 802,995 53 Total assets 2,450,334 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees 40,931 9,378 3,466 286 2,442 1,633 87 124 938 308 26 11,366 3,553 286 2,442 55 Assets under management 302,872 33,203 10,588 715 4,596 2,733 91 242 4,321 1,403 447 43,843 12,174 715 4,596 56 of which debt securities 114,326 22,234 5,195 550 2,005 1,938 59 164 725 260 91 25,411 5,255 550 2,005 57 of which equity instruments 80,724 7,857 2,874 76 1,807 759 26 78 3,596 1,143 356 13,789 2,864 76 1,807 in millions of euros 31 December 2023 Total [gross] carrying amount Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which Use of Proceeds of which transitional of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which enabling of which Use of Proceeds of which transitional of which enabling GAR - Covered assets in both numerator and denominator 660,050 276,571 9,137 5,808 2,631 598 117 277,169 9,254 5,808 2,631 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 659,823 276,571 9,137 5,808 2,631 598 117 277,169 9,254 5,808 2,631 2 Financial undertakings 82,051 6,803 546 495 403 34 4 6,837 550 495 403 3 Credit institutions 12,674 978 978 4 Loans and advances 1,356 253 253 5 Debt securities 6,137 725 725 6 Equity instruments 5,181 7 Other financial corporations 69,377 5,825 546 495 403 34 4 5,859 550 495 403 8 of which investment firms 47,567 3,108 323 323 231 21 3 3,128 326 323 231 9 Loans and advances 31,470 1,799 221 221 130 21 3 1,820 224 221 130 10 Debt securities 11,305 1,309 102 102 102 1,309 102 102 102 11 Equity instruments 4,792 12 of which management companies 8,039 2,231 172 172 171 13 1 2,244 173 172 171 13 Loans and advances 6,424 2,219 172 172 171 13 1 2,233 173 172 171 14 Debt securities 752 12 12 15 Equity instruments 863 0 0 16 of which insurance undertakings 13,771 487 51 0 0 487 51 0 0 17 Loans and advances 5,727 48 0 0 0 48 0 0 0 18 Debt securities 3,445 8 0 8 19 Equity instruments 4,599 431 51 431 51 20 Non-financial undertakings 258,850 42,107 8,590 5,313 2,228 564 113 42,672 8,704 5,313 2,228 21 Loans and advances 250,750 37,862 7,585 4,769 1,935 564 113 38,427 7,698 4,769 1,935 22 Debt securities 2,045 1,137 534 534 290 1,137 534 534 290 23 Equity instruments 6,055 3,108 471 9 3 3,108 471 9 3 24 Households 307,637 227,656 227,656 25 of which loans collateralised by residential immovable property 208,499 208,499 208,499 26 of which building renovation loans 4,617 4,617 4,617 27 of which motor vehicle loans 14,540 14,540 14,540 28 Local government financing 11,286 4 4 29 Housing financing 30 Other local government financing 11,286 4 4 31 Collateral obtained by taking possession: residential and commercial immovable properties 227 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 530,952 33 Financial and Non-financial undertakings 190,696 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 60,919 35 Loans and advances 59,684 36 of which loans collateralised by commercial immovable property 24,358 37 of which building renovation loans 0 38 Debt securities 177 39 Equity instruments 1,058 40 Non-EU country counterparties not subject to NFRD disclosure obligations 129,776 41 Loans and advances 125,265 42 Debt securities 4,207 43 Equity instruments 305 44 Derivatives 21,814 45 On demand interbank loans 7,139 46 Cash and cash-related assets 2,694 47 Other categories of assets (e.g. Goodwill, commodities etc.) 308,610 48 Total GAR assets 1,191,002 276,571 9,137 0 5,808 2,631 598 117 277,169 9,254 5,808 2,631 49 Assets not covered for GAR calculation 1,161,082 50 Central governments and Supranational issuers 141,256 51 Central banks exposures 300,225 52 Assets Held for Trading 719,602 53 Total assets 2,352,085 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees 126,240 13,654 5,691 5,735 3,545 144 60 13,798 5,751 5,735 3,545 55 Assets under management 294,086 72,010 8,512 626 3,897 1,246 147 73,256 8,659 626 3,897 56 of which debt securities 153,372 31,553 4,949 487 2,152 328 51 31,881 5,001 487 2,152 57 of which equity instruments 65,146 11,781 2,891 139 1,756 388 95 12,169 2,987 139 1,756 ➤TABLE NO. 56: GAR : sector information (stocks, eligibility and alignment measured on a turnover basis) Breakdown by sector In millions of euros 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WMR + CE + P + BE) Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD)) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) Exposures eligible for the taxonomy Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) 1 A – Agriculture, forestry and fishing 139 0 0 0 0 0 0 0 139 0 2 B – Mining and quarrying 114 7 1 0 0 1 0 0 209 7 3 B.05 – Mining of coal and lignite 0 0 0 0 0 0 0 0 0 0 4 B.06 – Extraction of crude petroleum and natural gas 96 4 0 0 0 0 0 0 190 4 5 B.07 – Mining of metal ores 0 0 0 0 0 0 0 0 0 0 6 B.08 – Other mining and quarrying 14 3 1 0 0 1 0 0 16 3 7 B.09 – Mining support service activities 3 1 0 0 0 0 0 0 3 1 8 C – Manufacturing 8,257 1,235 1,158 10 3 434 159 0 9,201 1,245 9 C.10 – Manufacture of food products 661 2 2 0 0 0 0 0 661 2 10 C.11 – Manufacture of beverages 138 0 0 0 0 0 0 0 138 0 11 C.12 – Manufacture of tobacco products 0 0 0 0 0 0 0 0 0 0 12 C.13 – Manufacture of textiles 3 0 0 0 0 0 0 0 3 0 13 C.14 – Manufacture of wearing apparel 112 0 0 0 0 0 0 0 112 0 14 C.15 – Manufacture of leather and related products 22 0 0 0 0 0 0 0 22 0 15 C.16 – Manufacture of wood and of products of wood and cork 50 2 0 0 0 0 0 0 50 2 16 C.17 – Manufacture of paper and paper products 139 2 0 0 0 0 0 0 143 2 17 C.18 – Printing and reproduction of recorded media 42 0 0 0 0 0 0 0 42 0 18 C.19 – Manufacture of coke and refined petroleum products 54 19 0 0 0 1 0 0 55 19 19 C.20 – Manufacture of chemicals and chemical products 381 7 92 3 0 2 2 0 387 10 20 C.21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations 913 0 0 0 0 2 156 0 1,071 0 21 C.22 – Manufacture of rubber products 206 27 51 0 0 2 0 0 223 28 22 C.23 – Manufacture of other non-metallic mineral products 211 20 1 1 0 1 0 0 240 21 23 C.24 – Manufacture of basic metals 652 148 446 0 0 7 0 0 662 148 24 C.25 – Manufacture of fabricated metal products, except machinery and equipment 177 39 10 0 0 2 0 0 194 39 25 C.26 – Manufacture of computer, electronic and optical products 220 39 1 0 0 147 1 0 376 39 26 C.27 – Manufacture of electrical equipment 777 241 131 5 3 156 0 0 987 246 27 C.28 – Manufacture of machinery and equipment n.e.c. 303 77 19 0 0 43 0 0 347 77 28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 1,934 242 105 0 0 20 0 0 1,996 242 29 C.30 – Manufacture of other transport equipment 881 332 222 0 0 45 0 0 998 332 30 C.31 – Manufacture of furniture 5 1 2 0 0 2 0 0 8 1 31 C.32 – Other manufacturing 8 4 0 0 0 0 0 0 8 4 32 C.33 – Repair and installation of machinery and equipment 366 33 76 0 0 4 0 0 477 33 33 D – Electricity, gas, steam and air conditioning supply 3,919 1,559 672 19 32 10 4 0 4,645 1,578 34 D35.1 – Electric power generation, transmission and distribution 3,588 1,463 672 19 21 7 1 0 4,278 1,482 35 D35.11 – Production of electricity 2,625 1,065 600 1 1 5 1 0 3,235 1,066 36 D35.2 – Manufacture of gas; distribution of gaseous fuels through mains 162 71 0 0 0 0 0 0 194 71 37 D35.3 – Steam and air conditioning supply 169 25 0 0 11 3 2 0 173 25 38 E – Water supply; sewerage, waste management and remediation activities 601 193 16 16 44 34 98 1 774 209 39 F – Construction 1,485 260 133 1 2 55 0 0 1,529 261 40 F.41 – Construction of buildings 841 134 124 0 1 37 0 0 853 135 41 F.42 – Civil engineering 327 75 7 0 0 15 0 0 354 75 42 F.43 – Specialised construction activities 318 50 1 0 1 3 0 0 322 51 43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 2,197 95 398 11 5 141 101 3 2,522 106 44 H – Transportation and storage 2,132 423 91 1 9 83 1 0 2,378 425 45 H.49 – Land transport and transport via pipelines 694 186 1 1 3 4 1 0 699 186 46 H.50 – Water transport 167 11 16 0 0 0 0 0 201 11 47 H.51 – Air transport 349 0 0 0 349 0 48 H.52 – Warehousing and support activities for transportation 916 225 73 1 7 79 0 0 1,123 225 49 H.53 – Postal and courier activities 6 2 0 0 0 0 0 0 6 2 50 I – Accommodation and food service activities 141 19 0 0 0 0 0 19 160 19 51 L – Real estate activities 2,369 387 118 9 0 32 0 37 2,559 395 52 K – Financial and insurance activities 1,799 104 31 1 0 74 12 0 1,990 105 53 Exposures to other sectors (NACE codes J, M - U) 6,152 938 786 131 2 559 8 6 7,657 1,069 Breakdown by sector In millions of euros 31 December 2023 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WMR + CE + P + BE) Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD)) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) Exposures eligible for the taxonomy Of which environmentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) 1 A – Agriculture, forestry and fishing 25 0 25 0 2 B – Mining and quarrying 120 22 1 0 121 22 3 B.05 – Mining of coal and lignite 4 B.06 – Extraction of crude petroleum and natural gas 89 11 89 11 5 B.07 – Mining of metal ores 2 1 2 1 6 B.08 – Other mining and quarrying 15 3 0 0 15 4 7 B.09 – Mining support service activities 15 7 0 0 15 7 8 C – Manufacturing 5,081 1,115 303 62 5,383 1,177 9 C.10 – Manufacture of food products 106 1 2 0 108 1 10 C.11 – Manufacture of beverages 12 12 11 C.12 – Manufacture of tobacco products 0 0 12 C.13 – Manufacture of textiles 3 3 13 C.14 – Manufacture of wearing apparel 0 0 14 C.15 – Manufacture of leather and related products 1 1 15 C.16 – Manufacture of wood and of products of wood and cork 13 5 1 0 15 5 16 C.17 – Manufacture of paper and paper products 2 0 87 19 89 19 17 C.18 – Printing and reproduction of recorded media 4 0 4 0 18 C.19 – Manufacture of coke and refined petroleum products 47 17 47 17 19 C.20 – Manufacture of chemicals and chemical products 386 25 12 1 398 26 20 C.21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations 3 3 21 C.22 – Manufacture of rubber products 69 1 61 1 130 2 22 C.23 – Manufacture of other non-metallic mineral products 101 29 36 11 137 40 23 C.24 – Manufacture of basic metals 572 164 16 5 587 168 24 C.25 – Manufacture of fabricated metal products, except machinery and equipment 125 17 4 0 129 18 25 C.26 – Manufacture of computer, electronic and optical products 114 15 1 0 115 15 26 C.27 – Manufacture of electrical equipment 599 245 0 0 599 245 27 C.28 – Manufacture of machinery and equipment n.e.c. 309 67 1 0 310 67 28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 1,294 60 81 25 1,374 85 29 C.30 – Manufacture of other transport equipment 966 372 966 372 30 C.31 – Manufacture of furniture 6 0 6 0 31 C.32 – Other manufacturing 6 3 6 3 32 C.33 – Repair and installation of machinery and equipment 343 94 1 0 344 94 33 D – Electricity, gas, steam and air conditioning supply 4,635 1,339 4,635 1,339 34 D35.1 – Electric power generation, transmission and distribution 4,452 1,323 4,452 1,323 35 D35.11 – Production of electricity 3,695 824 3,695 824 36 D35.2 – Manufacture of gas; distribution of gaseous fuels through mains 80 13 80 13 37 D35.3 – Steam and air conditioning supply 104 3 104 3 38 E – Water supply; sewerage, waste management and remediation activities 209 89 3 1 213 91 39 F – Construction 1,768 374 16 2 1,785 377 40 F.41 – Construction of buildings 1,214 134 13 1 1,227 135 41 F.42 – Civil engineering 297 70 3 1 301 70 42 F.43 – Specialised construction activities 257 171 0 0 257 171 43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 1,927 654 67 23 1,994 677 44 H – Transportation and storage 1,303 311 11 3 1,314 314 45 H.49 – Land transport and transport via pipelines 428 93 3 1 430 93 46 H.50 – Water transport 162 6 162 6 47 H.51 – Air transport 48 H.52 – Warehousing and support activities for transportation 712 212 9 3 720 214 49 H.53 – Postal and courier activities 2 0 2 0 50 I – Accommodation and food service activities 25 1 0 0 25 1 51 L – Real estate activities 2,410 212 51 5 2,461 217 52 K – Financial and insurance activities 3,892 454 67 9 3,959 462 53 Exposures to other sectors (NACE codes J, M - U) 20,712 4,019 45 8 20,757 4,027 ➤TABLE NO. 57: GAR Stock KPI (measure based on turnover) % (of covered assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PRP) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total assets covered Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 50.52% 4.34% 1.60% 0.52% 0.66% 0.04% 0.02% 0.30% 0.08% 0.01% 51.40% 4.38% 1.60% 0.52% 21.90% 2 Financial undertakings 21.14% 1.35% 0.01% 0.82% 0.28% 0.00% 0.00% 0.44% 0.05% 0.01% 21.75% 1.35% 0.01% 0.82% 1.92% 3 Credit institutions 17.75% 0.01% 0.00% 0.01% 0.01% 0.00% 0.00% 0.00% 0.01% 17.75% 0.01% 0.00% 0.01% 0.75% 4 Loans and advances 31.77% 0.02% 0.00% 0.02% 0.02% 0.00% 0.00% 0.00% 0.00% 31.78% 0.02% 0.00% 0.02% 0.22% 5 Debt securities 17.95% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 17.95% 0.00% 0.00% 0.00% 0.31% 6 Equity instruments 2.57% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2.57% 0.00% 0.00% 0.00% 0.21% 7 Other financial corporations 23.31% 2.20% 0.02% 1.33% 0.46% 0.00% 0.00% 0.73% 0.09% 0.00% 24.31% 2.20% 0.02% 1.33% 1.17% 8 of which investment firms 29.41% 2.23% 0.05% 2.04% 0.05% 0.00% 0.00% 2.18% 0.30% 0.02% 32.09% 2.24% 0.05% 2.04% 0.34% 9 Loans and advances 21.71% 2.32% 0.15% 1.78% 0.07% 0.00% 0.00% 0.15% 0.84% 0.07% 23.24% 2.33% 0.15% 1.78% 0.12% 10 Debt securities 37.80% 2.47% 0.01% 2.46% 0.04% 0.00% 0.00% 3.71% 0.00% 0.21% 41.54% 2.47% 0.01% 2.46% 0.19% 11 Equity instruments 1.14% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.14% 0.00% 0.00% 0.00% 0.02% 12 of which management companies 44.16% 4.04% 0.03% 3.88% 2.30% 0.00% 0.00% 0.53% 0.00% 0.00% 45.35% 4.04% 0.03% 3.88% 0.23% 13 Loans and advances 51.79% 5.32% 0.02% 5.11% 3.17% 0.00% 0.01% 0.71% 0.00% 0.00% 53.53% 5.32% 0.02% 5.11% 0.14% 14 Debt securities 55.48% 3.87% 0.11% 3.78% 1.67% 0.00% 0.00% 0.33% 0.00% 0.00% 55.81% 3.87% 0.11% 3.78% 0.04% 15 Equity instruments 10.16% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.10% 0.00% 0.00% 10.26% 0.00% 0.00% 0.00% 0.04% 16 of which insurance undertakings 12.25% 1.51% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 12.25% 1.51% 0.00% 0.01% 0.61% 17 Loans and advances 11.99% 1.58% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 11.99% 1.58% 0.00% 0.01% 0.30% 18 Debt securities 10.40% 2.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 10.40% 2.00% 0.00% 0.00% 0.16% 19 Equity instruments 14.99% 0.77% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 14.99% 0.77% 0.00% 0.00% 0.14% 20 Non-financial undertakings 17.57% 3.13% 0.39% 1.45% 2.04% 0.12% 0.06% 0.85% 0.23% 0.00% 20.25% 3.25% 0.39% 1.45% 6.81% 21 Loans and advances 17.05% 3.02% 0.40% 1.40% 2.10% 0.12% 0.06% 0.87% 0.24% 0.04% 19.79% 3.14% 0.40% 1.40% 6.54% 22 Debt securities 60.68% 16.00% 0.02% 8.24% 0.24% 0.16% 0.26% 1.11% 0.05% 0.04% 62.04% 16.15% 0.02% 8.24% 0.08% 23 Equity instruments 17.54% 1.52% 0.00% 0.06% 0.56% 0.01% 0.00% 0.14% 0.02% 18.18% 1.53% 0.00% 0.06% 0.18% 24 Households 74.51% 5.61% 2.55% 0.00% 74.51% 5.61% 2.55% 12.70% 25 of which loans collateralised by residential immovable property 100.00% 8.42% 3.82% 0.00% 100.00% 8.42% 3.82% 8.45% 26 of which building renovation loans 100.00% 100.00% 0.20% 27 of which motor vehicle loans 100.00% 100.00% 0.81% 28 Local government financing 0.16% 0.01% 0.17% 0.48% 29 Housing financing 30 Other local government financing 0.16% 0.01% 0.17% 0.48% 31 Collateral obtained by taking possession: residential and commercial immovable properties 0.16% 0.01% 32 Total GAR assets 21.24% 1.82% 0.67% 0.22% 0.28% 0.02% 0.01% 0.13% 0.03% 0.01% 21.61% 1.84% 0.67% 0.22% 21.91% % (of covered assets) 31 December 2023 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PRP) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total assets covered Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 41.92% 1.38% 0.88% 0.40% 0.09% 0.02% 42.01% 1.40% 0.88% 0.40% 28.05% 2 Financial undertakings 8.29% 0.67% 0.60% 0.49% 0.04% 0.00% 8.33% 0.67% 0.60% 0.49% 3.49% 3 Credit institutions 7.71% 0.00% 0.00% 0.00% 7.72% 0.54% 4 Loans and advances 18.66% 0.00% 0.00% 0.00% 18.66% 0.06% 5 Debt securities 11.81% 0.00% 0.00% 0.00% 11.81% 0.26% 6 Equity instruments 0.00% 0.00% 0.00% 0.00% 0.22% 7 Other financial corporations 8.40% 0.79% 0.71% 0.58% 0.05% 0.01% 8.45% 0.79% 0.71% 0.58% 2.95% 8 of which investment firms 6.53% 0.68% 0.68% 0.49% 0.04% 0.01% 6.58% 0.69% 0.68% 0.49% 2.02% 9 Loans and advances 5.72% 0.70% 0.70% 0.41% 0.07% 0.01% 5.78% 0.71% 0.70% 0.41% 1.34% 10 Debt securities 11.57% 0.90% 0.90% 0.90% 11.58% 0.90% 0.90% 0.90% 0.48% 11 Equity instruments 0.00% 0.00% 0.00% 0.00% 0.20% 12 of which management companies 27.75% 2.14% 2.14% 2.13% 0.17% 0.01% 27.91% 2.15% 2.14% 2.13% 0.34% 13 Loans and advances 34.54% 2.67% 2.67% 2.67% 0.21% 0.02% 34.76% 2.69% 2.68% 2.66% 0.27% 14 Debt securities 1.60% 0.00% 0.00% 0.00% 1.60% 0.03% 15 Equity instruments 0.04% 16 of which insurance undertakings 3.54% 0.37% 0.00% 0.00% 3.54% 0.37% 0.59% 17 Loans and advances 0.84% 0.00% 0.00% 0.00% 0.84% 0.00% 0.24% 18 Debt securities 0.23% 0.00% 0.00% 0.00% 0.23% 0.15% 19 Equity instruments 9.37% 1.11% 0.00% 0.00% 9.37% 1.11% 0.20% 20 Non-financial undertakings 16.27% 3.32% 2.05% 0.86% 0.22% 0.04% 16.49% 3.36% 2.05% 0.86% 11.01% 21 Loans and advances 15.10% 3.03% 1.90% 0.77% 0.23% 0.05% 15.32% 3.07% 1.90% 0.77% 10.66% 22 Debt securities 55.60% 26.13% 26.11% 14.18% 55.60% 26.13% 26.13% 14.18% 0.09% 23 Equity instruments 51.33% 7.78% 0.15% 0.05% 51.33% 7.78% 0.15% 0.05% 0.26% 24 Households 74.00% 0.00% 0.00% 0.00% 74.00% 13.08% 25 of which loans collateralised by residential immovable property 100.00% 100.00% 8.86% 26 of which building renovation loans 100.00% 100.00% 0.20% 27 of which motor vehicle loans 100.00% 100.00% 0.62% 28 Local government financing 0.04% 0.04% 0.48% 29 Housing financing 30 Other local government financing 0.04% 0.04% 0.48% 31 Collateral obtained by taking possession: residential and commercial immovable properties 32 Total GAR assets 23.22% 0.77% 0.49% 0.22% 0.05% 23.27% 0.78% 0.49% 0.22% 28.06% ➤TABLE NO. 58: GAR Flow KPI (measure based on turnover) % (compared to flow of total eligible assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total new assets covered Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Part du total des actifs couverts consacrée au financement de secteurs pertinents pour la taxonomie (alignés sur la taxonomie) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 4.43% (11.50)% (2.25)% (0.14)% (2.38)% (0.07)% (0.08)% (1.33)% (0.33)% (0.06)% 1.06% (11.57)% (2.25)% (0.14)% (125.33)% 2 Financial undertakings (8.94)% (0.25)% 1.39% 0.06% (0.28)% 0.01% 0.00% (0.59)% (0.07)% (0.02)% (9.66)% (0.24)% 1.39% 0.06% (35.68)% 3 Credit institutions 40.17% 0.02% 0.00% 0.02% 0.02% 0.00% 0.00% 0.00% 0.00% 0.00% 40.17% 0.02% 0.00% 0.02% 5.77% 4 Loans and advances 36.08% 0.03% 0.00% 0.03% 0.03% 0.00% 0.00% 0.01% 0.00% 0.00% 36.08% 0.03% 0.00% 0.03% 4.21% 5 Debt securities, including UoP 42.40% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 42.40% 0.00% 0.00% 0.00% 1.57% 6 Equity instruments (2,728.16)% (1.06)% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (2,728.51)% (1.06)% 0.00% 0.00% (0.01)% 7 Other financial corporations (2.10)% (0.21)% 1.20% 0.05% (0.24)% 0.01% 0.00% (0.51)% (0.06)% (0.01)% (2.72)% (0.20)% 1.20% 0.05% (41.45)% 8 of which investment firms 1.76% 0.36% 0.81% 0.16% 0.04% 0.01% 0.00% (0.46)% (0.06)% (0.02)% 1.25% 0.36% 0.81% 0.16% (40.06)% 9 Loans and advances 4.10% 0.54% 0.76% 0.27% 0.07% 0.01% 0.00% (0.02)% (0.09)% (0.02)% 4.01% 0.55% 0.76% 0.27% (29.08)% 10 Debt securities, including UoP (7.14)% (0.22)% 1.54% (0.21)% (0.03)% 0.00% 0.00% (2.65)% 0.00% 0.00% (9.81)% (0.22)% 1.54% (0.21)% (6.71)% 11 Equity instruments (0.17)% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (0.17)% 0.00% 0.00% 0.00% (4.26)% 12 of which management companies (8.15)% (2.02)% 6.74% (1.70)% (4.51)% 0.04% (0.01)% (1.15)% 0.00% 0.00% (10.22)% (1.98)% 6.74% (1.70)% (2.57)% 13 Loans and advances 13.31% (0.58)% 5.94% (0.33)% (3.44)% 0.04% (0.01)% (0.87)% 0.00% 0.00% 11.64% (0.55)% 5.94% (0.33)% (2.93)% 14 Debt securities, including UoP 366.17% 26.18% 0.75% 25.53% 11.29% 0.00% 0.00% 2.26% 0.00% 0.00% 368.43% 26.18% 0.75% 25.53% 0.13% 15 Equity instruments 48.85% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.48% 0.00% 0.00% 49.34% 0.01% 0.00% 0.00% 0.23% 16 of which insurance undertakings 116.37% 15.04% (0.02)% 0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 116.37% 15.04% (0.02)% 0.05% 1.17% 17 Loans and advances 49.68% 6.92% (0.01)% 0.04% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 49.68% 6.92% (0.01)% 0.04% 1.72% 18 Debt securities, including UoP 69.38% 13.60% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 69.38% 13.60% 0.00% 0.00% 0.60% 19 Equity instruments (7.80)% 2.16% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (7.80)% 2.16% 0.00% 0.00% (1.15)% 20 Non-financial undertakings 13.90% 3.66% 5.07% (0.20)% (3.08)% (0.09)% (0.11)% (1.54)% (0.42)% (0.07)% 9.67% 3.57% 5.07% (0.20)% (93.73)% 21 Loans and advances 11.64% 3.04% 4.56% (0.35)% (3.11)% (0.09)% (0.10)% (1.54)% (0.42)% (0.07)% 7.40% 2.95% 4.56% (0.35)% (92.01)% 22 Debt securities, including UoP (64.31)% 264.21% 639.58% 153.77% (5.75)% (3.67)% (6.21)% (26.07)% (1.29)% 0.00% (96.28)% 260.55% 639.58% 153.77% (0.09)% 23 Equity instruments 144.92% 25.12% 0.57% 0.04% (1.55)% (0.03)% 0.00% (0.38)% (0.07)% 0.00% 143.15% 25.09% 0.57% 0.04% (1.64)% 24 Households 118.76% 493.21% 223.97% 0.00% 118.76% 493.21% 223.97% 3.60% 25 of which loans collateralised by residential immovable property 100.00% (1,267.19)% (575.44)% 0.00% 100.00% (1,267.19)% (575.44)% (1.40)% 26 of which building renovation loans 100.00% 0.00% 100.00% 0.33% 27 of which motor vehicle loans 100.00% 0.00% 100.00% 5.35% 28 Local government financing 3.08% 0.29% 3.37% 0.48% 29 Housing financing 30 Other local government financing 3.08% 0.29% 3.37% 0.48% 31 Collateral obtained by taking possession: residential and commercial immovable properties (0.04)% 32 Total GAR assets 4.43% (11.50)% (2.25)% (0.14)% (2.38)% (0.07)% (0.08)% (1.33)% (0.33)% (0.06)% 1.06% (11.56)% (2.25)% (0.14)% (125.36)% ➤TABLE NO. 59: KPI off-balance sheet exposures (stocks, measure based on turnover) % (compared to total eligible off-balance sheet assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) 11.41% 4.22% 0.35% 2.97% 1.99% 0.11% 0.15% 1.14% 0.37% 0.03% 13.83% 4.32% 0.35% 2.97% 2 Assets under management (AuM KPI) 6.31% 2.01% 0.14% 0.87% 0.52% 0.02% 0.05% 0.82% 0.27% 0.08% 8.34% 2.32% 0.14% 0.87% % (compared to total eligible off-balance sheet assets) 31 December 2023 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) 11.04% 4.60% 4.64% 2.87% 0.12% 0.05% 0.00% 0.00% 11.16% 4.65% 0.00% 4.64% 2.87% 2 Assets under management (AuM KPI) 16.49% 1.95% 0.14% 0.89% 0.29% 0.03% 0.00% 0.00% 16.77% 1.98% 0.00% 0.14% 0.89% ➤TABLE NO. 60: KPI off-balance sheet exposures (flows, measure based on turnover) % (compared to total eligible off-balance sheet assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) 5.01% 2.61% 6.39% 1.29% (1.75)% (0.03)% (0.15)% (1.10)% (0.36)% (0.03)% 2.85% 2.58% 6.39% 1.29% 2 Assets under management (AuM KPI) (441.72)% 23.63% 1.01% 7.95% 16.93% (0.64)% 2.75% 49.18% 15.97% 5.08% (334.80)% 40.01% 1.01% 7.95% ➤TABLE NO. 61: Assets for the calculation of GAR (stocks, eligibility and alignment measured on a CapEx basis) in millions of euros 31 December 2024 Total [gross] carrying amount Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 536,881 277,367 26,864 8,758 4,437 5,442 191 133 1,454 232 5 281,206 27,055 8,758 4,437 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 536,690 277,367 26,864 8,758 4,437 5,442 191 133 1,454 232 5 281,206 27,055 8,758 4,437 2 Financial undertakings 46,999 10,545 1,367 30 934 721 0 0 208 3 0 10,813 1,367 30 934 3 Credit institutions 18,347 3,348 12 0 9 9 0 0 1 0 0 3,349 12 0 9 4 Loans and advances 5,493 1,742 3 0 3 2 0 0 0 0 0 1,742 3 0 3 5 Debt securities 7,678 1,378 0 0 0 0 0 0 0 0 0 1,378 0 0 0 6 Equity instruments 5,176 227 9 0 6 7 0 0 1 0 0 228 9 0 6 7 Other financial corporations 28,653 7,198 1,355 30 925 712 0 0 208 3 0 7,464 1,355 30 925 8 of which investment firms 8,212 2,495 515 24 447 110 0 0 190 3 0 2,738 515 24 447 9 Loans and advances 2,895 748 127 6 82 14 0 0 13 3 0 813 127 6 82 10 Debt securities 4,708 1,716 385 18 365 95 0 0 177 0 0 1,894 385 18 365 11 Equity instruments 609 31 3 0 0 0 0 0 0 0 0 31 3 0 0 12 of which management companies 5,517 2,977 520 6 477 602 0 0 18 0 0 3,001 520 6 477 13 Loans and advances 3,545 2,309 405 5 365 566 0 0 16 0 0 2,331 405 5 365 14 Debt securities 882 493 109 1 108 32 0 0 0 0 0 493 109 1 108 15 Equity instruments 1,090 175 7 0 5 4 0 0 1 0 0 176 7 0 5 16 of which insurance undertakings 14,923 1,725 320 0 1 0 0 0 0 0 0 1,725 320 0 1 17 Loans and advances 7,420 803 170 0 1 0 0 0 0 0 0 803 170 0 1 18 Debt securities 4,038 440 117 0 0 0 0 0 0 0 0 440 117 0 0 19 Equity instruments 3,465 482 33 0 0 0 0 0 0 0 0 482 33 0 0 20 Non-financial undertakings 166,761 34,945 8,053 807 3,502 4,721 191 133 1,245 229 5 38,517 8,244 807 3,502 21 Loans and advances 160,350 32,781 7,376 806 3,167 4,613 188 126 1,226 227 5 36,333 7,564 806 3,167 22 Debt securities 1,962 1,387 569 1 320 95 3 7 12 2 0 1,401 572 1 320 23 Equity instruments 4,449 777 108 0 16 14 0 0 8 0 0 783 108 0 16 24 Households 311,173 231,857 17,444 7,922 0 0 0 0 0 0 0 231,857 17,444 7,922 0 25 of which loans collateralised by residential immovable property 207,123 207,123 17,444 7,922 0 207,123 17,444 7,922 0 26 of which building renovation loans 4,942 4,942 4,942 27 of which motor vehicle loans 19,792 19,792 19,792 28 Local government financing 11,756 19 0 0 0 0 0 0 0 0 19 0 0 0 29 Housing financing 0 30 Other local government financing 11,756 19 0 0 0 0 0 0 0 0 19 0 0 0 31 Collateral obtained by taking possession: residential and commercial immovable properties 191 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 739,821 33 Financial and Non-financial undertakings 281,298 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 135,458 35 Loans and advances 133,902 36 of which loans collateralised by commercial immovable property 46,009 37 of which building renovation loans 0 38 Debt securities 420 39 Equity instruments 1,136 40 Non-EU country counterparties not subject to NFRD disclosure obligations 145,840 41 Loans and advances 140,851 42 Debt securities 4,537 43 Equity instruments 452 44 Derivatives 20,930 45 On demand interbank loans 8,543 46 Cash and cash-related assets 2,544 47 Other categories of assets (e.g. Goodwill, commodities etc.) 426,506 48 Total GAR assets 1,276,702 277,367 26,864 8,758 4,437 5,442 191 133 1,454 232 5 281,206 27,055 8,758 4,437 49 Assets not covered for GAR calculation 1,173,632 50 Central governments and Supranational issuers 173,763 51 Central banks exposures 196,875 52 Trading book 802,995 53 Total assets 2,450,334 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees 40,931 11,721 4,569 439 2,612 2,112 178 213 442 278 10 13,166 4,746 439 2,612 55 Assets under management 302,872 37,976 13,312 882 5,456 4,896 500 326 21 1,321 27 44,816 14,025 882 5,456 56 of which debt securities 114,326 25,767 8,337 659 2,947 3,191 371 223 13 256 18 29,468 8,708 659 2,947 57 of which equity instruments 80,724 12,246 4,975 223 2,509 1,705 130 103 11 1,065 9 15,135 5,105 223 2,509 in millions of euros 31 December 2023 Total [gross] carrying amount Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) of which environmentally sustainable (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 660,050 290,828 19,383 10,111 4,561 1,332 410 292,159 19,793 10,111 4,561 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 659,823 290,828 19,383 10,111 4,561 1,332 410 292,159 19,793 10,111 4,561 2 Financial undertakings 82,051 7,248 1,207 1,116 928 48 8 7,296 1,215 1,116 928 3 Credit institutions 12,674 978 0 0 0 978 0 0 0 4 Loans and advances 1,356 253 0 0 0 253 0 0 0 5 Debt securities 6,137 725 725 6 Equity instruments 5,181 0 7 Other financial corporations 69,377 6,270 1,207 1,116 928 48 8 6,318 1,215 1,116 928 8 of which investment firms 47,567 3,550 613 613 457 34 4 3,584 618 613 457 9 Loans and advances 31,470 2,181 283 283 135 34 4 2,215 287 283 135 10 Debt securities 11,305 1,368 330 330 322 1,368 330 330 322 11 Equity instruments 4,792 12 of which management companies 8,039 2,239 503 503 470 14 3 2,254 506 503 470 13 Loans and advances 6,424 2,226 503 503 470 14 3 2,240 506 503 470 14 Debt securities 752 14 14 15 Equity instruments 863 0 0 16 of which insurance undertakings 13,771 480 92 0 0 480 92 0 0 17 Loans and advances 5,727 3 0 0 0 3 0 0 0 18 Debt securities 3,445 0 0 0 19 Equity instruments 4,599 477 92 477 92 20 Non-financial undertakings 258,850 55,919 18,176 8,995 3,634 1,283 402 57,202 18,578 8,995 3,634 21 Loans and advances 250,750 50,224 15,741 7,856 3,104 1,263 396 51,487 16,137 7,856 3,104 22 Debt securities 2,045 1,442 1,121 1,121 521 0 0 1,442 1,121 1,121 521 23 Equity instruments 6,055 4,253 1,314 18 10 20 6 4,273 1,320 18 10 24 Households 307,637 227,656 227,656 0 25 of which loans collateralised by residential immovable property 208,499 208,499 208,499 26 of which building renovation loans 4,617 4,617 4,617 27 of which motor vehicle loans 14,540 14,540 14,540 28 Local government financing 11,286 4 4 29 Housing financing 30 Other local government financing 11,286 4 4 31 Collateral obtained by taking possession: residential and commercial immovable properties 227 32 Assets excluded from the numerator for GAR calculation (covered in the denominator) 530,952 33 Financial and Non-financial undertakings 190,696 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 60,919 35 Loans and advances 59,684 36 of which loans collateralised by commercial immovable property 24,358 37 of which building renovation loans 38 Debt securities 177 39 Equity instruments 1,058 40 Non-EU country counterparties not subject to NFRD disclosure obligations 129,776 41 Loans and advances 125,265 42 Debt securities 4,207 43 Equity instruments 305 44 Derivatives 21,814 45 On demand interbank loans 7,139 46 Cash and cash-related assets 2,694 47 Other categories of assets (e.g. Goodwill, commodities etc.) 308,610 48 Total GAR assets 1,191,002 290,828 19,383 0 10,111 4,561 1,332 410 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 292,159 19,793 0 10,111 4,561 49 Assets not covered for GAR calculation 1,161,082 50 Central governments and Supranational issuers 141,256 51 Central banks exposures 300,225 52 Trading book 719,602 53 Total assets 2,352,085 Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees 126,240 18,184 9,368 5,735 3,545 241 124 18,425 9,492 5,735 3,545 55 Assets under management 294,086 82,902 14,130 1,029 6,260 1,237 326 84,139 14,456 1,029 6,260 56 of which debt securities 153,372 37,045 8,764 823 4,029 495 117 37,540 8,881 823 4,029 57 of which equity instruments 65,146 16,640 4,685 205 2,228 742 209 17,382 4,894 205 2,228 ➤TABLE NO. 62: GAR: sector information (stocks, eligibility and alignment measured on a CapEx basis) Breakdown by sector in millions of euros 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WMR + CE + P + BE) Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) 1 A – Agriculture, forestry and fishing 135 0 0 0 0 0 0 0 139 0 2 B – Mining and quarrying 166 58 2 0 0 1 0 0 252 59 3 B.05 – Mining of coal and lignite 0 0 0 0 0 0 0 0 0 0 4 B.06 – Extraction of crude petroleum and natural gas 142 47 0 0 0 0 0 0 225 47 5 B.07 – Mining of metal ores 0 0 0 0 0 0 0 0 0 0 6 B.08 – Other mining and quarrying 12 2 2 0 0 1 0 0 15 2 7 B.09 – Mining support service activities 12 10 0 0 0 0 0 0 12 10 8 C – Manufacturing 8,965 1,983 1,251 10 5 287 82 1 9,829 1,993 9 C.10 – Manufacture of food products 727 10 35 0 1 14 0 0 738 10 10 C.11 – Manufacture of beverages 284 33 40 0 0 15 0 0 325 33 11 C.12 – Manufacture of tobacco products 0 0 0 0 0 0 0 0 0 0 12 C.13 – Manufacture of textiles 4 1 0 0 0 0 0 0 4 1 13 C.14 – Manufacture of wearing apparel 152 0 0 0 0 0 0 0 152 0 14 C.15 – Manufacture of leather and related products 25 1 0 0 0 1 0 0 25 1 15 C.16 – Manufacture of wood and of products of wood and cork 52 3 0 0 0 0 0 0 52 3 16 C.17 – Manufacture of paper and paper products 141 3 0 0 0 1 0 0 145 3 17 C.18 – Printing and reproduction of recorded media 42 0 0 0 0 0 0 0 43 0 18 C.19 – Manufacture of coke and refined petroleum products 221 190 0 0 0 3 0 0 223 190 19 C.20 – Manufacture of chemicals and chemical products 440 49 119 0 1 2 1 0 491 50 20 C.21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations 554 1 7 0 0 4 80 0 782 1 21 C.22 – Manufacture of rubber products 221 38 42 0 0 4 0 0 239 38 22 C.23 – Manufacture of other non-metallic mineral products 251 53 15 4 0 8 0 0 285 57 23 C.24 – Manufacture of basic metals 601 160 367 0 0 2 0 0 621 160 24 C.25 – Manufacture of fabricated metal products, except machinery and equipment 169 34 8 0 0 1 0 0 184 34 25 C.26 – Manufacture of computer, electronic and optical products 266 33 5 0 0 120 1 0 408 33 26 C.27 – Manufacture of electrical equipment 974 329 272 2 2 57 0 0 1,064 331 27 C.28 – Manufacture of machinery and equipment n.e.c. 318 68 9 0 0 41 0 0 360 68 28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 2,150 615 188 0 0 0 0 0 2,179 615 29 C.30 – Manufacture of other transport equipment 808 294 5 0 1 13 1 1 917 294 30 C.31 – Manufacture of furniture 4 0 0 0 0 2 0 0 6 0 31 C.32 – Other manufacturing 65 4 44 0 0 0 0 0 65 4 32 C.33 – Repair and installation of machinery and equipment 496 63 92 3 0 1 0 0 521 67 33 D – Electricity, gas, steam and air conditioning supply 5,201 2,589 1,024 37 66 21 10 0 5,591 2,626 34 D35.1 – Electric power generation, transmission and distribution 4,781 2,412 1,024 37 51 16 3 0 5,116 2,449 35 D35.11 – Production of electricity 3,301 1,394 952 0 12 14 2 0 3,579 1,394 36 D35.2 – Manufacture of gas; distribution of gaseous fuels through mains 214 145 0 0 1 0 2 0 263 145 37 D35.3 – Steam and air conditioning supply 206 33 0 0 15 4 4 0 212 33 38 E – Water supply; sewerage, waste management and remediation activities 649 197 13 13 43 38 67 0 754 210 39 F – Construction 1,327 272 110 1 1 41 0 0 1,389 273 40 F.41 – Construction of buildings 745 184 94 0 0 13 0 0 764 184 41 F.42 – Civil engineering 266 48 14 1 0 24 0 0 304 48 42 F.43 – Specialised construction activities 315 40 3 1 1 3 0 0 321 41 43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 3,696 402 489 5 7 125 51 0 3,949 407 44 H – Transportation and storage 2,091 462 354 7 7 50 1 0 2,551 469 45 H.49 – Land transport and transport via pipelines 711 163 194 2 4 4 1 0 756 164 46 H.50 – Water transport 221 15 19 0 0 0 0 0 252 15 47 H.51 – Air transport 337 5 0 0 0 0 0 0 337 5 48 H.52 – Warehousing and support activities for transportation 818 276 142 5 4 46 0 0 1,201 281 49 H.53 – Postal and courier activities 5 3 0 0 0 0 0 0 5 3 50 I – Accommodation and food service activities 218 55 75 4 0 0 0 1 219 59 51 L – Real estate activities 2,560 592 285 23 0 28 0 0 2,636 614 52 K – Financial and insurance activities 2,891 258 64 0 1 201 9 0 3,065 259 53 Exposures to other sectors (NACE codes J, M - U) 7,045 1,184 1,053 92 2 455 8 1 8,143 1,275 Breakdown by sector in millions of euros 31 December 2023 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WMR + CE + P + BE) Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD Non-Financial corporates (Subject to NFRD) SMEs and other NFC not subject to NFRD [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount [Gross] carrying amount Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCA) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (WTR) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CE) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (PPC) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) Exposures eligible for the taxonomy Of which environ- mentally sustainable (CCM + CCA + WTR + CE + PPC + BIO) 1 A – Agriculture, forestry and fishing 24 0 24 0 2 B – Mining and quarrying 231 152 2 0 232 152 3 B.05 – Mining of coal and lignite 0 0 0 0 4 B.06 – Extraction of crude petroleum and natural gas 192 144 192 144 5 B.07 – Mining of metal ores 6 0 6 0 6 B.08 – Other mining and quarrying 13 2 1 0 13 2 7 B.09 – Mining support service activities 20 6 1 0 21 6 8 C – Manufacturing 6,174 1,511 201 140 6,375 1,651 9 C.10 – Manufacture of food products 143 4 1 0 143 4 10 C.11 – Manufacture of beverages 117 31 117 31 11 C.12 – Manufacture of tobacco products 0 0 0 0 12 C.13 – Manufacture of textiles 1 0 4 1 4 1 13 C.14 – Manufacture of wearing apparel 7 0 7 0 14 C.15 – Manufacture of leather and related products 7 2 7 2 15 C.16 – Manufacture of wood and of products of wood and cork 18 4 18 4 16 C.17 – Manufacture of paper and paper products 63 1 31 23 95 24 17 C.18 – Printing and reproduction of recorded media 19 2 19 2 18 C.19 – Manufacture of coke and refined petroleum products 139 67 1 0 140 68 19 C.20 – Manufacture of chemicals and chemical products 502 98 9 2 511 99 20 C.21 – Manufacture of basic pharmaceutical products and pharmaceutical preparations 130 8 0 0 131 8 21 C.22 – Manufacture of rubber products 156 4 16 2 172 5 22 C.23 – Manufacture of other non-metallic mineral products 154 48 26 22 180 70 23 C.24 – Manufacture of basic metals 523 129 16 9 539 138 24 C.25 – Manufacture of fabricated metal products, except machinery and equipment 124 20 3 1 127 21 25 C.26 – Manufacture of computer, electronic and optical products 126 19 1 0 127 19 26 C.27 – Manufacture of electrical equipment 724 263 0 0 724 263 27 C.28 – Manufacture of machinery and equipment n.e.c. 317 73 5 1 322 74 28 C.29 – Manufacture of motor vehicles, trailers and semi-trailers 1,417 263 87 79 1,503 342 29 C.30 – Manufacture of other transport equipment 1,022 357 0 0 1,022 357 30 C.31 – Manufacture of furniture 6 0 6 0 31 C.32 – Other manufacturing 58 3 1 0 59 3 32 C.33 – Repair and installation of machinery and equipment 400 114 1 0 400 114 33 D – Electricity, gas, steam and air conditioning supply 5,556 2,520 5,556 2,520 34 D35.1 – Electric power generation, transmission and distribution 5,284 2,443 5,284 2,443 35 D35.11 – Production of electricity 4,296 1,572 4,296 1,572 36 D35.2 – Manufacture of gas; distribution of gaseous fuels through mains 144 72 144 72 37 D35.3 – Steam and air conditioning supply 128 5 128 5 38 E – Water supply; sewerage, waste management and remediation activities 234 117 2 1 236 118 39 F – Construction 1,364 437 2 1 1,366 438 40 F.41 – Construction of buildings 824 225 1 0 825 225 41 F.42 – Civil engineering 270 50 3 1 273 51 42 F.43 – Specialised construction activities 268 162 0 0 268 162 43 G – Wholesale and retail trade; repair of motor vehicles and motorcycles 3,507 1,228 169 59 3,677 1,287 44 H – Transportation and storage 1,457 432 10 3 1,467 435 45 H.49 – Land transport and transport via pipelines 465 97 3 1 468 98 46 H.50 – Water transport 208 36 208 36 47 H.51 – Air transport 16 3 16 3 48 H.52 – Warehousing and support activities for transportation 765 294 7 2 772 297 49 H.53 – Postal and courier activities 3 1 3 1 50 I – Accommodation and food service activities 58 1 6 0 63 1 51 L – Real estate activities 1,647 338 770 158 2,417 496 52 K – Financial and insurance activities 6,113 2,226 25 9 6,138 2,235 53 Exposures to other sectors (NACE codes J, M - U) 29,555 9,215 96 31 29,651 9,245 ➤TABLE NO. 63: GAR Stock KPI (measure based on CapEx) % (of covered assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total assets covered of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 51.68% 5.01% 1.63% 0.83% 1.01% 0.04% 0.02% 0.27% 0.04% 0.00% 52.40% 5.04% 1.63% 0.83% 21.90% 2 Financial undertakings 22.44% 2.91% 0.06% 1.99% 1.53% 0.00% 0.00% 0.44% 0.01% 0.00% 23.01% 2.91% 0.06% 1.99% 1.92% 3 Credit institutions 18.25% 0.07% 0.00% 0.05% 0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 18.25% 0.07% 0.00% 0.05% 0.75% 4 Loans and advances 31.72% 0.05% 0.00% 0.05% 0.04% 0.00% 0.00% 0.00% 0.00% 0.00% 31.72% 0.05% 0.00% 0.05% 0.22% 5 Debt securities 17.95% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 17.95% 0.00% 0.00% 0.00% 0.31% 6 Equity instruments 4.39% 0.18% 0.00% 0.12% 0.13% 0.00% 0.00% 0.01% 0.00% 0.00% 4.41% 0.18% 0.00% 0.12% 0.21% 7 Other financial corporations 25.12% 4.73% 0.10% 3.23% 2.48% 0.00% 0.00% 0.72% 0.01% 0.00% 26.05% 4.73% 0.10% 3.23% 1.17% 8 of which investment firms 30.38% 6.27% 0.29% 5.45% 1.34% 0.00% 0.00% 2.31% 0.04% 0.00% 33.34% 6.27% 0.29% 5.45% 0.34% 9 Loans and advances 25.84% 4.38% 0.20% 2.85% 0.50% 0.00% 0.00% 0.43% 0.11% 0.00% 28.09% 4.38% 0.20% 2.85% 0.12% 10 Debt securities 36.46% 8.18% 0.38% 7.75% 2.03% 0.00% 0.00% 3.76% 0.00% 0.00% 40.23% 8.18% 0.38% 7.75% 0.19% 11 Equity instruments 5.04% 0.55% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 5.04% 0.55% 0.00% 0.00% 0.02% 12 of which management companies 53.96% 9.43% 0.11% 8.65% 10.91% 0.00% 0.00% 0.33% 0.00% 0.00% 54.39% 9.43% 0.11% 8.65% 0.23% 13 Loans and advances 65.14% 11.43% 0.14% 10.30% 15.98% 0.00% 0.00% 0.46% 0.00% 0.00% 65.77% 11.43% 0.14% 10.30% 0.14% 14 Debt securities 55.90% 12.31% 0.13% 12.19% 3.58% 0.00% 0.00% 0.00% 0.00% 0.00% 55.90% 12.31% 0.13% 12.19% 0.04% 15 Equity instruments 16.03% 0.60% 0.00% 0.42% 0.38% 0.00% 0.00% 0.14% 0.00% 0.00% 16.17% 0.60% 0.00% 0.42% 0.04% 16 of which insurance undertakings 11.56% 2.14% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 11.56% 2.14% 0.00% 0.01% 0.61% 17 Loans and advances 10.83% 2.29% 0.00% 0.01% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 10.83% 2.29% 0.00% 0.01% 0.30% 18 Debt securities 10.90% 2.90% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 10.90% 2.90% 0.00% 0.00% 0.16% 19 Equity instruments 13.91% 0.95% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 13.91% 0.95% 0.00% 0.00% 0.14% 20 Non-financial undertakings 20.96% 4.83% 0.48% 2.10% 2.83% 0.11% 0.08% 0.75% 0.14% 0.00% 23.10% 4.94% 0.48% 2.10% 6.81% 21 Loans and advances 20.44% 4.60% 0.50% 1.97% 2.88% 0.12% 0.08% 0.76% 0.14% 0.00% 22.66% 4.72% 0.50% 1.97% 6.54% 22 Debt securities 70.73% 28.99% 0.04% 16.31% 4.84% 0.14% 0.36% 0.61% 0.10% 0.00% 71.41% 29.14% 0.04% 16.31% 0.08% 23 Equity instruments 17.46% 2.42% 0.00% 0.36% 0.31% 0.00% 0.00% 0.17% 0.00% 0.00% 17.61% 2.42% 0.00% 0.36% 0.18% 24 Households 74.51% 5.61% 2.55% 74.51% 5.61% 2.55% 12.70% 25 of which loans collateralised by residential immovable property 100.00% 8.42% 3.82% 100.00% 8.42% 3.82% 8.45% 26 of which building renovation loans 100.00% 100.00% 0.20% 27 of which motor vehicle loans 100.00% 100.00% 0.81% 28 Local government financing 0.16% 0.16% 0.48% 29 Housing financing 30 Other local government financing 0.16% 0.16% 0.48% 31 Collateral obtained by taking possession: residential and commercial immovable properties 0.01% 32 Total GAR assets 21.73% 2.10% 0.69% 0.35% 0.43% 0.02% 0.01% 0.11% 0.02% 0.00% 22.03% 2.12% 0.69% 0.35% 21.91% % (of covered assets) 31 December 2023 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total assets covered of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) of which towards taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sector (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 44.08% 2.94% 1.53% 0.69% 0.20% 0.06% 44.28% 3.00% 1.53% 0.69% 28.05% 2 Financial undertakings 8.83% 1.47% 1.36% 1.13% 0.06% 0.01% 8.89% 1.48% 1.36% 1.13% 3.49% 3 Credit institutions 7.72% 7.72% 0.54% 4 Loans and advances 18.65% 0.01% 0.01% 18.65% 0.01% 0.01% 0.00% 0.06% 5 Debt securities 11.82% 11.82% 0.26% 6 Equity instruments 0.00% 0.22% 7 Other financial corporations 9.04% 1.74% 1.61% 1.34% 0.07% 0.01% 9.11% 1.75% 1.61% 1.34% 2.95% 8 of which investment firms 7.46% 1.29% 1.29% 0.96% 7.53% 1.30% 1.29% 0.96% 2.02% 9 Loans and advances 6.93% 0.90% 0.90% 0.43% 7.04% 0.91% 0.90% 0.43% 1.34% 10 Debt securities 12.11% 2.92% 2.92% 2.85% 12.11% 2.92% 2.92% 2.85% 0.48% 11 Equity instruments 0.20% 12 of which management companies 27.86% 6.26% 6.26% 5.84% 28.04% 6.30% 6.26% 5.84% 0.34% 13 Loans and advances 34.65% 7.83% 7.83% 7.31% 34.88% 7.88% 7.83% 7.31% 0.27% 14 Debt securities 1.80% 0.00% 0.00% 0.00% 1.80% 0.03% 15 Equity instruments 0.04% 16 of which insurance undertakings 3.49% 0.67% 0.00% 0.00% 3.49% 0.67% 0.59% 17 Loans and advances 0.06% 0.01% 0.00% 0.01% 0.24% 18 Debt securities 0.15% 19 Equity instruments 10.37% 1.99% 0.00% 0.00% 10.37% 1.99% 0.20% 20 Non-financial undertakings 21.60% 7.02% 3.48% 1.40% 0.50% 0.16% 22.10% 7.18% 3.48% 1.40% 11.01% 21 Loans and advances 20.03% 6.28% 3.13% 1.24% 0.50% 0.16% 20.53% 6.44% 3.13% 1.24% 10.66% 22 Debt securities 70.51% 54.80% 54.81% 25.45% 70.51% 54.81% 54.81% 25.45% 0.09% 23 Equity instruments 70.23% 21.70% 0.30% 0.16% 70.57% 21.80% 0.26% 24 Households 74.00% 74.00% 13.08% 25 of which loans collateralised by residential immovable property 100.00% 100.00% 8.86% 26 of which building renovation loans 100.00% 100.00% 0.20% 27 of which motor vehicle loans 100.00% 100.00% 0.62% 28 Local government financing 0.48% 29 Housing financing 30 Other local government financing 0.48% 31 Collateral obtained by taking possession: residential and commercial immovable properties 32 Total GAR assets 24.42% 1.63% 0.85% 0.38% 0.11% 0.03% 24.53% 1.66% 0.85% 0.38% 28.06% ➤TABLE NO. 64: GAR Flow KPI (measure based on CapEx) % (compared to flow of total eligible assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total new assets covered Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling GAR – Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 10.93% (6.08)% 1.10% 0.10% (3.34)% 0.18% (0.11)% (0.11)% (0.19)% 0.00% 1.06% (11.57)% (2.25)% (0.14)% (125.33)% 2 Financial undertakings (9.41)% (0.46)% 3.10% (0.02)% (1.92)% 0.02% 0.00% 0.00% (0.01)% 0.00% (9.66)% (0.24)% 1.39% 0.06% (35.68)% 3 Credit institutions 41.77% 0.21% 0.00% 0.16% 0.16% 0.00% 0.00% 0.00% 0.00% 0.00% 40.17% 0.02% 0.00% 0.02% 5.77% 4 Loans and advances 36.01% 0.07% 0.00% 0.07% 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 36.08% 0.03% 0.00% 0.03% 4.21% 5 Debt securities, including UoP 42.37% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 42.40% 0.00% 0.00% 0.00% 1.57% 6 Equity instruments (4,660.65)% (190.10)% 0.00% (126.74)% (137.30)% 0.00% 0.00% 0.00% 0.00% 0.00% (2,728.51)% (1.06)% 0.00% 0.00% (0.01)% 7 Other financial corporations (2.28)% (0.36)% 2.67% 0.01% (1.63)% 0.02% 0.00% 0.00% (0.01)% 0.00% (2.72)% (0.20)% 1.20% 0.05% (41.45)% 8 of which investment firms 2.68% 0.25% 1.50% 0.03% (0.19)% 0.01% 0.00% 0.00% (0.01)% 0.00% 1.25% 0.36% 0.81% 0.16% (40.06)% 9 Loans and advances 5.02% 0.55% 0.97% 0.18% 0.07% 0.02% 0.00% 0.00% (0.01)% 0.00% 4.01% 0.55% 0.76% 0.27% (29.08)% 10 Debt securities, including UoP (5.28)% (0.83)% 4.73% (0.64)% (1.45)% 0.00% 0.00% 0.00% 0.00% 0.00% (9.81)% (0.22)% 1.54% (0.21)% (6.71)% 11 Equity instruments (0.73)% (0.08)% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (0.17)% 0.00% 0.00% 0.00% (4.26)% 12 of which management companies (29.25)% (0.68)% 19.71% (0.29)% (23.30)% 0.13% 0.00% 0.00% 0.00% 0.00% (10.22)% (1.98)% 6.74% (1.70)% (2.57)% 13 Loans and advances (2.89)% 3.40% 17.30% 3.64% (19.16)% 0.11% 0.00% 0.00% 0.00% 0.00% 11.64% (0.55)% 5.94% (0.33)% (2.93)% 14 Debt securities, including UoP 367.51% 83.23% 0.86% 82.37% 24.19% 0.00% 0.00% 0.00% 0.00% 0.00% 368.43% 26.18% 0.75% 25.53% 0.13% 15 Equity instruments 77.07% 2.89% 0.00% 2.04% 1.85% 0.00% 0.00% 0.00% 0.00% 0.00% 49.34% 0.01% 0.00% 0.00% 0.23% 16 of which insurance undertakings 108.00% 19.78% 0.00% 0.05% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 116.37% 15.04% (0.02)% 0.05% 1.17% 17 Loans and advances 47.25% 10.02% 0.00% 0.03% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 49.68% 6.92% (0.01)% 0.04% 1.72% 18 Debt securities, including UoP 74.13% 19.72% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 69.38% 13.60% 0.00% 0.00% 0.60% 19 Equity instruments (0.43)% 5.18% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% (7.80)% 2.16% 0.00% 0.00% (1.15)% 20 Non-financial undertakings 22.78% 10.99% 8.89% 0.14% (3.73)% 0.23% (0.14)% (0.14)% (0.25)% (0.01)% 9.67% 3.57% 5.07% (0.20)% (93.73)% 21 Loans and advances 19.30% 9.25% 7.80% (0.07)% (3.71)% 0.23% (0.14)% (0.14)% (0.25)% (0.01)% 7.40% 2.95% 4.56% (0.35)% (92.01)% 22 Debt securities, including UoP 65.40% 661.19% 1,341.26% 240.31% (113.68)% (3.33)% (8.47)% (8.47)% (2.35)% 0.00% (96.28)% 260.55% 639.58% 153.77% (0.09)% 23 Equity instruments 216.38% 75.09% 1.13% (0.39)% 0.41% 0.39% 0.00% 0.00% 0.00% 0.00% 143.15% 25.09% 0.57% 0.04% (1.64)% 24 Households 118.76% 493.21% 223.97% 0.00% 118.76% 493.21% 223.97% 3.60% 25 of which loans collateralised by residential immovable property 100.00% (1,267.19)% (575.44)% 0.00% 100.00% (1,267.19)% (575.44)% (1.40)% 26 of which building renovation loans 100.00% 0.00% 100.00% 0.33% 27 of which motor vehicle loans 100.00% 100.00% 5.35% 28 Local government financing 3.16% 0.01% 0.01% 0.01% 0.01% 0.01% 3.20% 0.48% 29 Housing financing 30 Other local government financing 3.16% 0.01% 0.01% 0.01% 0.01% 0.01% 3.20% 0.48% 31 Collateral obtained by taking possession: residential and commercial immovable properties (0.04)% 32 Total GAR assets 10.93% (6.07)% 1.10% 0.10% (3.34)% 0.18% (0.11)% (0.11)% (0.19)% 0.00% 8.89% (5.90)% 1.10% 0.93% (125.36)% ➤TABLE NO. 65: KPI off-balance sheet exposures (stocks, measure based on CapEx) % (compared to total eligible off-balance sheet assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) 14.26% 5.56% 0.53% 3.18% 2.57% 0.22% 0.26% 0.54% 0.34% 0.01% 16.02% 5.77% 0.53% 3.18% 2 Assets under management (AuM KPI) 7.22% 2.53% 0.17% 1.04% 0.93% 0.10% 0.06% 0.00% 0.25% 0.01% 8.52% 2.67% 0.17% 1.04% % (compared to total eligible off-balance sheet assets) 31 December 2023 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) 14.71% 7.58% 4.64% 2.87% 0.20% 0.10% 0.00% 0.00% 14.90% 7.68% 0.00% 4.64% 2.87% 2 Assets under management (AuM KPI) 18.98% 3.24% 0.24% 1.43% 0.28% 0.07% 0.00% 0.00% 19.27% 3.31% 0.00% 0.24% 1.43% ➤TABLE NO. 66: KPI off-balance sheet exposures (flows, measure based on CapEx) % (compared to total eligible off-balance sheet assets) 31 December 2024 Climate Change Mitigation (CCM) Climate Change Adaptation (CCA) Water and marine resources (WTR) Circular economy (CE) Pollution (PPC) Biodiversity and Ecosystems (BIO) TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of Proceeds Of which transitional Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which enabling Of which Use of Proceeds Of which transitional Of which enabling 1 Financial guarantees (FinGuar KPI) 7.58% 5.63% 0.00% 6.21% 1.09% (2.19)% (0.06)% (0.25)% (0.52)% (0.33)% (0.01)% 6.17% 5.56% 6.21% 1.09% 2 Assets under management (AuM KPI) (511.37)% (9.31)% 0.00% (1.67)% (9.15)% 41.65% 1.98% 3.71% 0.23% 15.04% 0.30% (447.59)% (4.90)% (1.67)% (9.15)% The following tables relate to information linked to financing of nuclear energy and fossil fuel activities, as a complement to the GAR stock KPI in its two measures (turnover based and CapEx based), according to the requirements of the Delegated Act of July 2022. ➤TABLE NO. 67: Nuclear and fossil gas related activities 31 December 2024 Nuclear energy related activities 1. The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. YES 2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. YES 3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. YES Fossil gas related activities 4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. YES 5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES 6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES 31 December 2023 Nuclear energy related activities 1. The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle. YES 2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production, as well as their safety upgrades, using best available technologies. YES 3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades. YES Fossil gas related activities 4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels. YES 5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels. YES 6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels. YES ➤TABLE NO. 68: Taxonomy-aligned economic activities (denominator of GAR Stock, measured on a turnover basis) Economic activities in millions of euros 31 December 2024 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 255 0.02% 255 0.02% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 10 0.00% 10 0.00% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 23,230 1.82% 23,031 1.80% 199 0.02% 8. Total applicable KPI 23,495 1.84% 23,296 1.82% 199 0.02% Economic activities in millions of euros 31 December 2023 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 241 0.02% 241 0.02% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 9 0.00% 9 0.00% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 9,005 0.76% 8,888 0.75% 117 0.01% 8. Total applicable KPI 9,254 0.78% 9,137 0.77% 117 0.01% ➤TABLE NO. 69: Taxonomy-aligned economic activities (numerator of GAR Stock, measured on a turnover basis) Economic activities in millions of euros 31 December 2024 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 255 1.09% 255 1.09% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 10 0.04% 10 0.04% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI 23,230 98.87% 23,031 98.03% 199 0.85% 8. Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI 23,495 100% 23,296 99.15% 199 0.85% Economic activities in millions of euros 31 December 2023 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 241 2.60% 241 2.63% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 9 0.09% 9 0.09% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI 9,005 97.31% 8,888 97.27% 117 100.00% 8. Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI 9,254 100% 9,137 100% 117 100% ➤TABLE NO. 70: Taxonomy-eligible but not taxonomy-aligned economic activities (denominator of GAR Stock, measured on a turnover basis) Economic activities in millions of euros 31 December 2024 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 3. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 4. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 184 0.01% 184 0.01% 0.00% 5. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 4 0.00% 4 0.00% 0.00% 6. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 250,970 19.66% 247,634 19.40% 3,336 0.26% 8. Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator 251,158 19.67% 247,822 19.41% 3,336 0.26% Economic activities in millions of euros 31 December 2023 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 3. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 86 0.01% 86 0.01% 0.00% 4. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 85 0.01% 85 0.01% 0.00% 5. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 5 0.00% 5 0.00% 0.00% 6. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 267,740 22.48% 267,258 22.44% 481 0.04% 8. Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator 267,915 22.50% 267,434 22.45% 481 0.04% ➤TABLE NO. 71: Taxonomy non-eligible economic activities (denominator of GAR Stock, measured on a turnover basis) Economic activities in millions of euros 31 December 2024 TOTAL Amount % 1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 2. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 3. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 67 0.01% 4. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 5. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 6. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 260,951 20.44% 8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 261,018 20.44% Economic activities in millions of euros 31 December 2023 TOTAL Amount % 1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 2. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 3. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 70 0.01% 4. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 5. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 6. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 382,811 32.14% 8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 382,881 32.15% ➤TABLE NO. 72: Taxonomy-aligned economic activities (denominator of GAR Stock, measured on a CapEx basis) Economic activities in millions of euros 31 December 2024 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 54 0.00% 54 0.00% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 420 0.03% 420 0.03% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 1 0.00% 1 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 26,580 2.08% 26,389 2.07% 191 0.02% 8. Total applicable KPI 27,055 2.12% 26,864 2.10% 191 0.02% Economic activities in millions of euros 31 December 2023 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 51 0.00% 51 0.00% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 400 0.03% 400 0.03% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 19,341 1.62% 18,931 1.59% 410 0.03% 8. Total applicable KPI 19,793 1.66% 19,383 1.63% 410 0.03% ➤TABLE NO. 73: Taxonomy-aligned economic activities (numerator of GAR Stock, measured on a CapEx basis) Economic activities in millions of euros 31 December 2024 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 54 0.20% 54 0.20% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 420 1.55% 420 1.55% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 1 0.00% 1 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI 26,580 98.24% 26,389 97.54% 191 0.71% 8. Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI 27,055 100% 26,864 99.29% 191 0.71% Economic activities in millions of euros 31 December 2023 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the numerator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 51 0.26% 51 0.27% 0.00% 3. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 400 2.02% 400 2.06% 0.00% 4. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0.00% 5. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 6. Amount and proportion of taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the numerator of the applicable KPI 19,341 97.72% 18,931 97.67% 410 100.00% 8. Total amount and proportion of taxonomy-aligned economic activities in the numerator of the applicable KPI 19,793 100% 19,383 100% 410 100% ➤TABLE NO. 74: Taxonomy-eligible but not taxonomy-aligned economic activities (denominator of GAR Stock, measured on a CapEx basis) Economic activities in millions of euros 31 December 2024 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 3. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 4. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 92 0.01% 92 0.01% 0.00% 5. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 0 0.00% 0.00% 6. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 255,661 20.03% 250,410 19.61% 5,251 0.41% 8. Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator 255,754 20.03% 250,502 19.62% 5,251 0.41% Economic activities in millions of euros 31 December 2023 TOTAL CCM + CCA Climate change mitigation (CCM) Climate change adaptation (CCA) Amount % Amount % Amount % 1. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 2. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 3. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 52 0.00% 52 0.00% 0.00% 4. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 26 0.00% 26 0.00% 0.00% 5. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 6. Amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activity referred to in Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 0.00% 0.00% 7. Amount and proportion of other taxonomy-eligible but not taxonomy-aligned economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 272,289 22.86% 271,367 22.78% 922 0.08% 8. Total amount and proportion of taxonomy eligible but not taxonomy-aligned economic activities in the denominator 272,367 22.87% 271,445 22.79% 922 0.08% ➤TABLE NO. 75: Taxonomy non-eligible economic activities (denominator of GAR Stock, measured on a CapEx basis) Economic activities in millions of euros 31 December 2024 TOTAL Amount % 1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 2. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 398 0.03% 3. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 39 0.00% 4. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 5. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 6. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 255,237 19.99% 8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 255,675 20.03% Economic activities in millions of euros 31 December 2023 TOTAL Amount % 1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 2. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 378 0.03% 3. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 39 0.00% 4. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 5. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0 0.00% 6. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to Delegated Regulation 2021/2139 in the denominator of the applicable KPI 0.00% 7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6 above in the denominator of the applicable KPI 382,464 32.11% 8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the applicable KPI 382,881 32.15% Report on the certification of sustainability information and verification of the disclosure requirements under Article 8 of Regulation (EU) 2020/852, relating to the year ended December 31, 2024 This is a free translation into English of the statutory auditors’ report on the certification of sustainability information and verification of the disclosure requirements under Article 8 of Regulation (EU) 2020/852 of the Company issued in French and it is provided solely for the convenience of English-speaking users. This report should be read in conjunction with, and construed in accordance with, French law and the H2A guidelines on “Limited assurance engagement - Certification of sustainability reporting and verification of disclosure requirements set out in Article 8 of Regulation (EU) 2020/852". To the Annual General Meeting of BNP Paribas, This report is issued in our capacity as statutory auditors of BNP Paribas. It covers the sustainability information and the information required by Article 8 of Regulation (EU) 2020/852, relating to the year ended December 31, 2024 and included in the section entitled “Sustainability statements” of the management report set out in Chapter 7.1 of the 2024 Universal Registration Document (hereinafter the “Sustainability statements”). Pursuant to Article L. 233-28-4 of the French Commercial Code, BNP Paribas is required to include the above-mentioned information in a separate section of its management report. This information has been prepared in the context of the first-time application of the aforementioned Articles, a context characterized by uncertainties regarding the interpretation of the laws and regulations, the use of significant estimates, the absence of established practices and frameworks in particular for the double-materiality assessment, and an evolving internal control system. This information enables an understanding of the impact of the activity of the Group on sustainability matters, as well as the way in which these matters influence the development of the business of the Group, its performance and position. Sustainability matters include environmental, social and corporate governance matters. Pursuant to Article L. 821-54 paragraph II of the aforementioned Code, our responsibility is to carry out the procedures necessary to issue a conclusion, expressing limited assurance, on: compliance with the sustainability reporting standards adopted pursuant to Article 29 b of Directive (EU) 2013/34 of the European Parliament and of the Council of 14 December 2022 (hereinafter ESRS for European Sustainability Reporting Standards) of the process implemented by BNP Paribas to determine the information reported, and compliance with the requirement to consult the social and economic committee provided for in the sixth paragraph of Article L. 2312-17 of the French Labor Code; compliance of the sustainability information included in the Sustainability statements with the requirements of Article L. 233-28-4 of the French Commercial Code, including the ESRS; and compliance with the reporting requirements set out in Article 8 of Regulation (EU) 2020/852. This engagement is carried out in compliance with the ethical rules, including independence, and quality control rules prescribed by the French Commercial Code. It is also governed by the H2A guidelines on “Limited assurance engagement - Certification of sustainability reporting and verification of disclosure requirements set out in Article 8 of Regulation (EU) 2020/852". In the three separate sections of the report that follow, we present, for each of the sections of our engagement, the nature of the procedures that we carried out, the conclusions that we drew from these procedures and, in support of these conclusions, the elements to which we paid particular attention and the procedures that we carried out with regard to these elements. We draw your attention to the fact that we do not express a conclusion on any of these elements taken individually and that the procedures described should be considered in the overall context of the formation of the conclusions issued in respect of each of the three sections of our engagement. Finally, where deemed necessary to draw your attention to one or more disclosures of sustainability information provided by BNP Paribas in Sustainability statements, we have included an emphasis of matter(s) paragraph hereafter. Limits of our engagement As the purpose of our engagement is to express limited assurance, the nature (choice of techniques), extent (scope) and timing of the procedures are less than those required to obtain reasonable assurance. Furthermore, this engagement does not provide guarantee regarding the viability or the quality of the management of BNP Paribas, in particular it does not provide an assessment, of the relevance of the choices made by BNP Paribas in terms of action plans, targets, policies, scenario analyses and transition plans, which would go beyond compliance with the ESRS reporting requirements. It does, however, allow us to express conclusions regarding the Entity’s process for determining the sustainability information to be reported, the sustainability information itself, and the information reported pursuant to Article 8 of Regulation (EU) 2020/852, as to the absence of identification or, on the contrary, the identification of errors, omissions or inconsistencies of such importance that they would be likely to influence the decisions that readers of the information subject to this engagement might make. Any comparative information that would be included in the Sustainability statements is not covered by our engagement. Compliance with the ESRS of the process implemented by BNP Paribas to determine the information reported, and compliance with the requirement to consult the social and economic committee provided for in the sixth paragraph of Article L. 2312-17 of the French Labor Code. Nature of procedures carried out Our procedures consisted in verifying that: the process defined and implemented by BNP Paribas has enabled it, in accordance with the ESRS, to identify and assess its impacts, risks and opportunities related to sustainability matters, and to identify the material impacts, risks and opportunities, that lead to the publication of information disclosed in the Sustainability statements, and the information provided on this process also complies with the ESRS. We also checked the compliance with the requirement to consult the social and economic committee. Conclusion of the procedures carried out On the basis of the procedures we have carried out, we have not identified any material errors, omissions or inconsistencies regarding the compliance of the process implemented by BNP Paribas with the ESRS. We inform you that, as of the date of this report, the consultation of the social and economic committee provided for in the sixth paragraph of Article L. 2312-17 of the French Labor Code has not yet been performed. Emphasis of matter Without qualifying the conclusion expressed above, we draw your attention to paragraph 7.1.1.3.A entitled "Description of the processes to identify and assess material impacts, risks, and opportunities" of the Sustainability statements, which specifies that the double materiality assessment process and its results will be reviewed annually and may therefore evolve. Elements that received particular attention We present hereafter below the elements that have been the subject of particular attention on our part concerning the compliance with the ESRS of the process implemented by BNP Paribas to determine the information published. Concerning the identification of stakeholders Information relating to the identification of stakeholders is mentioned in paragraph 7.1.1.2.B entitled "Interests and views of stakeholders" of the Sustainability statements. We obtained an understanding of the analysis conducted by the Entity to identify the stakeholders who may affect the entities within the scope of the information or may be affected by them, through their activities and direct or indirect business relationships across the value chain. We interviewed the appropriate persons and inspected the available documentation in order to assess: the consistency of the main stakeholders identified by the Entity with the nature of its activities taking into account its business relationships and value chain; the consistency of the description provided regarding the organization of the dialogue with the stakeholders and the consideration of their interests and viewpoints with our knowledge of the mechanisms implemented by the Entity. Concerning the identification of impacts, risks and opportunities Information relating to the identification of impacts, risks and opportunities (“IRO”) is mentioned in paragraph 7.1.1.3 entitled "Material impacts, risks and opportunities" of the Sustainability statements. We obtained an understanding of the process implemented by the Entity to identify actual or potential impacts (negative or positive) risks and opportunities, in relation to the sustainability matters mentioned in paragraph AR 16 of the "Application requirements" of ESRS 1, and those specific to the Entity, as presented in table No 6 set out in paragraph 7.1.1.3.B entitled "Material impacts, risks and opportunities and their interaction with strategy and business model" of the Sustainability statements. In particular, we assessed the approach implemented by the Entity to determine its impacts, which may be a source of risks or opportunities, including the consideration of the stakeholders’ interests and viewpoints. We obtained an understanding of the IROs identified by the Entity, including in particular a description of their distribution within the Entity’s own operations and its value chain, as well as their time horizon (short, medium or long term), and assessed the consistency of this list with our knowledge of the Entity. Concerning the assessment of impact materiality and financial materiality Information relating to the assessment of impact materiality and financial materiality is mentioned in paragraph 7.1.1.3.A entitled "Description of the processes to identify and assess material impacts, risks and opportunities" of the Sustainability statements. Through interviews and inspection of the available documentation, we obtained an understanding of the process implemented by the Entity to assess impact materiality and financial materiality, and assessed its compliance with the criteria defined by ESRS 1. We assessed the way in which the Entity established and applied the materiality criteria of the information defined by ESRS 1, including the setting of thresholds, to determine the following material information published: under the indicators relating to material IROs identified in accordance with the relevant thematic ESRS; as entity-specific disclosures. Compliance of the sustainability information included in the Sustainability statements with the requirements of Article L.233-28-4 of the French Commercial Code, including the ESRS Nature of procedures carried out Our procedures consisted in verifying that, in accordance with legal and regulatory requirements, including the ESRS: the disclosures provided enable an understanding of the general basis for the preparation and governance of the sustainability information included in the Sustainability statements, including the basis for determining the information relating to the value chain and the exemptions from disclosures used; the presentation of this information ensures its readability and understandability; the scope chosen by BNP Paribas for providing this information is appropriate; and on the basis of a selection, based on our analysis of the risks of non-compliance of the information provided and the expectations of users, this information does not contain any material errors, omissions or inconsistencies, i.e. that are likely to influence the judgement or decisions of users of this information. Conclusion of the procedures carried out Based on the procedures we have carried out, we have not identified material errors, omissions or inconsistencies regarding the compliance of the sustainability information included in the Sustainability statements, with the requirements of Article L. 233-28-4 of the French Commercial Code, including the ESRS. Emphasis of matter Without qualifying the conclusion expressed above, we draw your attention to the information provided in the "Scope 3 emissions of financed operations" paragraph of Note 7.1.2.3.D of the Sustainability statements, which details the financial assets excluded from the calculation scope of scope 3, category 15 financed greenhouse gas emissions. Elements that received particular attention Information provided in application of environmental standards (ESRS E1 to E5) Information published in relation to climate change (ESRS E1) is mentioned in paragraph 7.1.2 entitled “Climate change" of the Sustainability statements. We present hereafter the elements that have been the subject of particular attention on our part concerning the compliance of this information with the ESRS. Our work consisted, in particular, in: conducting interviews with the appropriate persons, to assess whether the description of the policies, actions and targets implemented by the Entity covers climate change mitigation and adaptation; assessing the appropriateness of the disclosures provided in paragraph “7.1.2 Climate change" of the Sustainability statements and its overall consistency with our knowledge of the ntity. With regard to the information published on the greenhouse gas emissions overview: we assessed the consistency of the scope considered for the greenhouse gas emissions assessment with the scope of the consolidated financial statements, activities in its own operations and across the value chain, upstream and downstream; we obtained an understanding of the greenhouse gas emissions inventory protocol used by the Entity to draw up its greenhouse gas emissions overview; with regard to scope 3 emissions, we assessed: the information on the inclusions and exclusions of the various categories; the information collecting process; we assessed the emission factors used and the calculation of the related conversions, as well as the calculation and extrapolation assumptions, taking into account the uncertainty inherent in the state of scientific or economic knowledge and in the quality of the external data used; we verified the arithmetical accuracy of the calculations used to prepare this information. With regard to our verification of the components of the transition plan for climate change mitigation, our work mainly consisted in: assessing whether the information published in accordance with the components of the transition plan provides an appropriate description of the key assumptions, including perimeter and limits, it being specified that we are not required to express an opinion on the appropriateness or the level of ambition of this transition plan’s objectives; assessing whether the components of the transition plan are in line with the strategic plan as approved by governing bodies. Compliance with the reporting requirements set out in Article 8 of Regulation (EU) 2020/852 Nature of procedures carried out Our procedures consisted in verifying the process implemented by BNP Paribas to determine the eligible and aligned nature of the activities of the entities included in the consolidation. They also involved verifying the information reported pursuant to Article 8 of Regulation (EU) 2020/852, which involves checking: the compliance with the rules applicable to the presentation of this information to ensure that it is readable and understandable; on the basis of a selection, the absence of material errors, omissions or inconsistencies in the information provided, i.e. information likely to influence the judgement or decisions of users of this information. Conclusion of the procedures carried out Based on the procedures we have carried out, we have not identified any material errors, omissions or inconsistencies relating to compliance with the requirements of Article 8 of Regulation (EU) 2020/852. Emphasis of matter Without qualifying the conclusion expressed above, we draw your attention to paragraph 7.1.3.3. entitled "Methodology for alignment qualification under the European Taxonomy" of the Sustainability statements, which presents the main methodological choices made by the Company to assess the alignment of housing loans. Elements that received particular attention Concerning the alignment of eligible activities Information on the alignment of activities is set out in paragraph 7.1.3.3 entitled "Methodology for alignment qualification under the European Taxonomy" of the Sustainability statements. Our procedures consisted, in particular, in: assessing the choices made by the Entity as to whether or not to take into account communications from the European Commission on the interpretation and implementation of certain provisions of the Green Taxonomy Framework; conducting interviews with the appropriate persons in order to obtain an understanding of the general principles of alignment applied by the Entity, from the Green Taxonomy Framework. Concerning key performance indicators and accompanying information The key performance indicators and accompanying information are set out in paragraph 7.1.3.4 entitled "Alignment indicator at 31 December 2024" of the Sustainability statements. With regard to the assets included in the calculation of the Green Asset Ratio (GAR) presented in the regulatory tables, we mainly assessed the consistency of the main aggregates with data from other supervisory statements. With regard to the other amounts making up the various indicators of eligible and/or aligned activities (the numerators), we tested the compliance with the alignment methodology for the selection of exposures. Finally, we assessed the consistency of the information set out in paragraph 7.1.3 entitled "Aligned activities within the meaning of the European Taxonomy" of the Sustainability statements with our knowledge of the measures implemented by the Entity. Paris-La Défense, March 20, 2025 The Statutory Auditors French original signed by Deloitte & Associés Jean-Vincent Coustel Julien Rivals Ernst & Young et Autres Olivier Drion 7.2Vigilance plan Framework and governance Regulatory framework Law No. 2017-399 of 27 March 2017 on the duty of care of parent companies and of companies using subcontractors applies to BNP Paribas and requires a vigilance plan to be established and implemented to identify and prevent the risk of serious violations of human rights and fundamental freedoms, and of harm to human health and safety and to the environment. The law also requires the preparation of an annual report on the effective implementation of the Group’s vigilance plan. BNP Paribas’ vigilance plan applies to all subsidiaries controlled by the Group and is published in its Universal registration document. BNP Paribas updates its vigilance plan each year, in particular by drawing on best practices in this area, and reports on its framework for monitoring the measures implemented and assessing their effectiveness in section 5 of this chapter. Elaboration of the vigilance plan Drafting and approval process BNP Paribas’ vigilance plan is drafted under the lead of the Company Engagement Department, in charge of the CSR strategy, with contributions from: the Human Resources Department (HR) with regard to the Group’s employees; the Technology & Operational Performance (TOP) Department, including the central Procurement & Performance (P&P) team for BNP Paribas' suppliers and subcontractors; the main business lines within BNP Paribas’ three divisions (Commercial, Personal Banking & Services - CPBS, Investment & Protection Services - IPS, and Corporate & Institutional Banking - CIB) for the distribution of financial products and services to individuals and for financing, investment and business advisory activities; the Finance, Compliance, RISK and LEGAL Departments, which contribute to overseeing the Group’s environmental, social and governance (ESG) issues. The Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) reviews BNP Paribas’ vigilance plan and issues recommendations to the Group’s Board of directors. Among other duties, the CGEN is responsible for monitoring CSR issues and for the integration of the CSR issues into the fulfilment of the Group’s missions. The Group’s Board of directors, which has a specific role with regard to CSR, is responsible for approving the BNP Paribas’ vigilance plan. Internal and external contributions to the BNP Paribas’ vigilance plan BNP Paribas’ vigilance plan is prepared taking into account the Group’s business model, the specificities of its activities and geographical locations, as well as the information and requests of its stakeholders. The vigilance plan is therefore updated on an annual basis, fed by these elements and an ongoing dialogue, in particular with its employees and representative bodies, its investors and its customers, as well as with civil society, including NGOs (see section 4.1 Dialogue with stakeholders). BNP Paribas has identified 21 extra-financial issues for the Group and ranked them according to the importance given to each of these issues, on the one hand, by its employees and on the other hand, by its external stakeholders. Internal perception was collected from more than 1,200 Group employees, while external perception was assessed through the analysis of the publications of BNP Paribas’ main peers, more than 2,500 regulations applicable to its activities and regions, more than 20,000 industry press articles and more than 450 million messages posted on X (formerly Twitter). The chart below distinguishes between three categories of issues: crucial, major and important. ➤Representation of BNP Paribas’ extra-financial issues according to their importance for its stakeholders The interests and points of view of certain Group stakeholders are also taken into account through the double materiality exercise required by the Corporate Sustainability Reporting Directive (CSRD) regulation. CSR Strategy & Governance Given its scope and the issues involved, the vigilance plan is part of BNP Paribas’ CSR strategy and relies on its dedicated governance. Purpose and Strategic Plan Contributing to a more sustainable and responsible economy is at the heart of BNP Paribas’ purpose. The Group’s ambition is to contribute to the transition of the entire economy to a more responsible and sustainable model, meeting the needs of the population without damaging ecosystems, in line with the 17 United Nations Sustainable Development Goals (SDGs). In early 2022, BNP Paribas launched its strategic plan entitled GTS (Growth, Technology, Sustainability), one of whose three pillars is to accelerate and mobilise all of the Group’s business lines around the challenges of sustainable finance. The Group has set itself ambitious objectives in terms of energy transition, biodiversity, social inclusion, and sustainable savings, investments and financing by 2025 (see CSR dashboard presented in section 7.1.1 General information, 2.a Strategy, business model and value chain of the Group’s Sustainability statements). 2024 was a new year of acceleration in the shift of BNP Paribas’ financing from the energy sector to low-carbon energies(142), mainly renewable energies, which already accounted for 76% of its total credit exposure to the energy production sector at 30 September 2024. The Group’s objective is for this share to reach 90% by 2030. CSR Policy and Governance The Group as a whole is involved in monitoring ESG issues. A Sustainable Finance Strategic Committee that meets every two months, chaired by the Chief Executive Officer of BNP Paribas, validates the overall sustainable finance strategy and decides on the commitments made by the Group. This committee met five times in 2024. The CSR policy is managed by the Company Engagement Department, represented on the Group Executive Committee, which regularly decides on CSR issues. BNP Paribas’ Board of directors determines BNP Paribas’s business orientations and supervises their implementation by the Executive Management, taking the social, environmental and governance issues of BNP Paribas’ activities into consideration. CSR-related topics were specifically addressed 34 times in 2024 by the Board of directors and during meetings of the Corporate Governance, Ethics, Nominations and CSR Committee (CGEN) and the Internal Control, Risk Management and Compliance Committee (CCIRC). General reference frameworks BNP Paribas’ approach is guided by the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Convinced of the importance of collective action, the Group is a member of the United Nations Principles for Responsible Banking (PRB)(143), the United Nations Global Compact and the Principles for Responsible Investment (PRI) through its subsidiaries BNP Paribas Asset Management, BNP Paribas Real Estate Investment Management and BNP Paribas Cardif. The Group is also a signatory of the Equator Principles. Reference frameworks and Group’s environmental involvement BNP Paribas has been committed to the fight against climate change since 2010 and is committed to aligning its activities with the objectives of the 2015 Paris Agreement. It has continuously reduced its support for fossil fuels and at the same time accelerated its financing for low-carbon energies. To define its environmental and climate-related objectives, the Group relies in particular on: benchmark scientific work, such as that of the IPCC (Intergovernmental Panel on Climate Change) and IPBES (Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services); forward-looking scenarios compatible with the objective of collective carbon neutrality in 2050, such as the International Energy Agency (IEA)’s Zero Net Emissions by 2050 Scenario. The document “BNP Paribas environmental framework”(144) aims to describe the environmental approach adopted by BNP Paribas in its three areas of action: climate and energy transition, natural capital and biodiversity, and circular economy. BNP Paribas is also committed to preserving biodiversity through its financing and investment policies, a constructive dialogue with its clients, the coalitions in which it participates, philanthropy and support for research. The Group published its position in the document “BNP Paribas and the preservation of biodiversity"(145) in order to clarify its challenges on this topic. Reference frameworks and Group's involvement in human and social rights The Group’s commitments in terms of human rights are based on the provisions of international standards for the protection of human rights, and in particular the International Bill of Human Rights, the ten fundamental conventions of the International Labour Organization, the recommendations of the United Nations Guiding Principles on Business and Human Rights, and the ten principles of the Global Compact. The Group wishes to promote respect for human rights in its sphere of influence and to treat all its employees with dignity. Through its Code of conduct(146), the document “BNP Paribas and Human Rights”(147) and the Global Agreement signed with UNI Global Union on 4 November 2024(148) (in the continuity of the Global Agreement signed in 2018), the Group recognises and undertakes to respect the highest standards of conduct and ethics, anti-corruption, respect for human rights and environmental protection, regardless of its activities. Our vigilance approach As part of the preparation of its vigilance plan, BNP Paribas conducted risk mappings and a review of its existing risk assessment and control process and tools, on a scope consistent with the text of the law. 1The risk universe The activities of BNP Paribas’ corporate clients may involve risks in relation to human rights and fundamental freedoms, the health and safety of individuals and the environment. In line with its CSR commitments, the Group has included in its reasonable vigilance approach the risks of serious violations of human rights and fundamental freedoms, and of harm to the health and safety of individuals and to the environment, considering in particular the following issues: issues related to human rights and fundamental freedoms: prohibition of child labour; prohibition of forced labour; respect for the rights of local communities, the right to property, the right to privacy, freedom of association and collective bargaining; non-discrimination, respect for diversity, gender equality and inclusion; respect for the right to an adequate standard of living; respect for adequate wages and fair and favourable working conditions; issues related to the health and safety of individuals: physical and mental health and safety at work for employees and consumers; environmental issues: climate change; GHG emissions (CO2, methane, etc.); pollution and water scarcity; air pollution; soil pollution and quality; scarcity and depletion of commodities; waste production; degradation of ecosystems and biodiversity. BNP Paribas also considers in its approach issues related to business ethics, compliance with laws and regulations and the protection of the interests of its clients. Various risk identification exercises were carried out within the scope of the duty of care: risks related to employees, purchasing categories related to suppliers and subcontractors, and BNP Paribas’ banking and financial activities, including the distribution of financial products and services to individuals and financing, investment and advisory activities for the Group's corporate clients. 1.1Mapping of risks concerning employees In 2024, the Group is present in 64 countries. With regard to all the human rights risks that could impact its employees, the Group has relied on indicators based on reference sources provided by Verisk Maplecroft, enabling it to determine a level of criticality by risk type (arithmetic average of each theme by country, updated annually): risks related to freedom of association and collective bargaining, including freedom of association and trade union negotiations, and freedom of assembly; risks of discrimination, inequality and exclusion, including discrimination in the workplace, minority rights, gender minorities, and women’s rights; occupational health and safety risks; risks related to working conditions, including adequate wages, decent working time, child labour and forced labour. At the end of 2024, the breakdown of BNP Paribas’ workforce by social risk category and the level of criticality in the countries in which the Group operates is as follows: Criticality (score from 0 to 10) Freedom of association and collective bargaining Discrimination, inequality and exclusion Occupational health and safety Working conditions Very high (≤ 2.5) 0% 0% 0% 0% High (> 2.5 and ≤ 5) 0.5% 5.8% 7.4% 0.3% Medium (> 5 and ≤ 7.5) 24.6% 33.6% 16.6% 25.8% Low (> 7.5) 74.9% 60.7% 76.0% 73.9% Total 100% 100% 100% 100% On the basis of these analyses, more than 87% of the Group’s workforce is located in countries with a low or medium criticality on all the social risk themes selected. 1.2Mapping of risks concerning suppliers and subcontractors The central Procurement & Performance (P&P) team has set up an ESG risk mapping of the Group’s non-production purchasing categories(149). This mapping is the result of a market approach led by Afnor in 2018, adapted by BNP Paribas to its own purchasing subcategories such as intellectual services, software, IT equipment, employee travel, databases, data centres, office supplies, etc. Purchasing categories and subcategories are classified according to four levels of criticality based on the following risks: fair practices and ethics: fraud and corruption, protection of personal data, property rights and patents; human rights and social conditions: child labour, forced labour and modern slavery, discrimination, health and safety, working conditions and freedom of association; environment: climate change and greenhouse gases, damage to biodiversity, depletion of natural resources, pollution (water, air, soil), waste and end-of-life management. In assessing the level of risk, the mapping adds indications on the type of production and the context related to the country (supply chain, business environment). The breakdown of BNP Paribas’ purchasing subcategories by level of criticality at the end of 2024 is as follows: Criticality Purchasing subcategories % of total Corresponding amount In thousands of euros % of total Very high 15 6% 262,411.76 3% High 44 19% 858,661.67 9% Medium 134 57% 7,294,110.58 79% Low 43 18% 819,988.46 9% Total 236 100% 9,235,172.46 100% This analysis covers 93% of the expenditure base at the end of 2024 (EUR 9.89 billion). Purchasing subcategories with a very high level of criticality are mainly in the real estate sector (works, waste management, etc.) or in technology (IT equipment, servers, telecoms, etc.). With regard to production purchases, an analysis was carried out at the level of the subsidiaries concerned by specific purchases, which made it possible to identify the ESG risks of the main suppliers and to prioritise the measures to be implemented. 1.3Mapping of risks concerning the distribution of financial products and services to individual customers The Group has identified the following main risks in the distribution of financial products and services to its individual customers: the risk of discrimination in access to products and services; the risk of inadequate decisions made by customers and of indebtedness that would significantly impact their financial situations and living conditions, due in particular to a lack of transparent, clear and non-misleading information; the risk of infringement of the protection of their personal data and their right to privacy. 1.4Mapping of risks concerning financing, investment and advisory activities for corporate clients The activities of BNP Paribas’ corporate clients may involve risks in relation to human rights and fundamental freedoms, the health and safety of individuals and the environment. Since 2010, BNP Paribas has gradually deepened and expanded its system to manage the ESG risks that may affect its financing, investment and advisory activites for corporate clients. Initially focused on the most sensitive sectors from an ESG point of view (with the development of sectoral policies(150)), the system now covers all sectors of the economy in which the Group has clients. To identify risks related to corporate clients, the Group relies on risk factors related to the countries and risk factors related to the business sector. 1.4.1Risk related to the countries of operation of corporate clients A level of environmental and social risk was defined for each country in which the corporate clients of the Group operate on the basis of reference sources provided by Verisk Maplecroft and Reporters Without Borders, and issued by recognised international organisations and NGOs, such as the International Labour Organization, the World Bank, the United Nations Environment Programme, Human Rights Watch, Transparency International and the World Resources Institute. 15 indicators cover the following topics: child labour; forced labour; rights to land, property and housing; freedom of association and collective bargaining; decent wages; decent working time; migrant workers; occupational health and safety; environmental regulatory framework; biodiversity and protected areas; deforestation; waste management; water quality; water stress; freedom of the press. The 15 indicators are weighted, which gives the breakdown of the countries of operation of the Group’s corporate clients according to the following four levels of environmental and social risk (data from May 2024): Level of environmental and social risk Countries of operation of corporate clients % of total Very high 8 6% High 29 22% Medium 39 29% Low 57 43% Total 133 100% 1.4.2Risk related to the business sectors of corporate clients For each business sector, BNP Paribas has analysed the ones that had salient risks related to human rights and fundamental freedoms, the health and safety of individuals and the environment. These risks have been defined according to a methodology for rating the level of severity and occurrence of each risk, which is based on the United Nations Guiding Principles reporting reference framework. The level of risk inherent in each business sector has then been determined based on the presence of salient risks. All business sectors of the Group’s corporate clients are covered, including those that do not present intrinsic salient environmental and social risks, such as finance or insurance. Those with at least one risk are detailed below according to the number of salient environmental and social risks: Business segments of corporate clients Human rights and fundamental freedoms Health and safety of individuals Environment Total Agriculture, food, tobacco 7 1 6 14 Materials and minerals 6 1 6 13 Energy excluding electricity 4 1 6 11 Transport and storage 6 1 4 11 Suppliers (electricity, gas, water, etc.) 3 1 6 10 Equipment excluding IT 5 1 4 10 Chemicals excluding pharmaceuticals 3 2 3 8 Construction and public works 6 1 1 8 Information Technology (IT) 6 0 1 7 Consumer goods 4 0 2 6 Healthcare and pharmaceutical industry 2 2 1 5 Hotels, tourism, leisure 3 1 1 5 Automotive 0 1 1 2 Total 55 13 42 110 It should be noted that the same risk may exist for different sectors, such as the risk related to water pollution (present in the Materials and Minerals and Agriculture sectors, among others) or the risk of forced labour (present among others in the Construction and Public Works sector and in the Consumer goods sector). These risk analyses enable: on the one hand, to provide a more specific framework for the business sectors of the Group’s corporate clients that carry salient environmental and social risks; on the other hand, to develop financing and investments in activities with a positive impact. In addition, certain activities may be considered cross-functional in several sectors and are in this case treated as being exposed to all the risks of these sectors. This is the case, for example, for activities related to defence. With regard to the specific activity of project financing, in accordance with the Equator Principles, major industrial and infrastructure projects are subject to systematic analyses of their environmental and social impacts. They are rated by risk level: projects graded A present significant risks and systematically involve enhanced due diligence with both an internal (via CIB ESG team) and external (by an independent consultant supporting investors) perspective; those graded B present more limited risks; and those graded C present minimal or no risks. The table below details the project financing analysed in 2024: 2024 Number of transactions concerned in the year(151) 44 Number of grade A transactions in the year 1 Number of grade B transactions in the year 37 Number of grade C transactions in the year 6 2Procedures for regular assessment of the situation of subsidiaries, SUPPLIERS OR subcontractors, with regard to risk mapping The Group made an inventory of its existing systems and compared them with the elements required for the development of the vigilance plan and its risk mapping, which made it possible to ensure that the main risks were properly covered through existing systems for employees, main suppliers and sub-contractors and banking and financial activities, including the distribution of financial products and services to individual customers and financing, investment and advisory activities to corporate clients. BNP Paribas’ Risks ID process covers: all sets of activities and exposures, on and off-balance sheet, as well as new products and activities; all risk types and all geographies; all business lines and legal entities. ESG dimensions are taken into account as risk factors, i.e. likely to trigger, promote or exacerbate the occurrence of a risk, whether financial or extra-financial (see section 5 Risks and capital adequacy – Pillar 3 of this Universal registration document, Appendix 5: Environmental, social and governance risk). The internal control plan (described in section 5 of the vigilance plan) is applicable to all the systems detailed in this section and makes it possible to regularly assess the situation of the Group’s entities. These controls also make it possible to monitor the risk mitigation actions and measures described in section 3 of the vigilance plan. 2.1The system concerning employees In order to assess and prevent the risks that could impact its employees, the Group relies on Group-level Human Resources policies, which apply up to the Group's highest level and to its subsidiaries, and on agreements negotiated with employee representative bodies, in particular on the Global Agreement which covers all employees, as well as Group-level or regional-level charters. These policies focus on the issues of freedom of association, non-discrimination, health and safety at work and working conditions. In addition, as part of the new Global Agreement signed between the BNP Paribas Group and UNI Global Union in November 2024, a joint committee was created to monitor the implementation of the commitments made in the agreement. This committee may also meet in order to contribute to the continuous improvement of the Group’s vigilance plan for the part relating to BNP Paribas' employees. 2.2The system concerning suppliers and subcontractors Within the Procurement Function, several teams deal with ESG risks related to suppliers and subcontractors. In accordance with the deployment of the law on the duty of care, BNP Paribas articules its ESG risk management system for its suppliers and subcontractors around the following items, in line with the ESG risk mapping for purchasing categories: ESG questionnaire templates used to assess ESG risks (Generic Due Diligence) when entering into relationships with external suppliers representing a contract value of more than EUR 200,000 (from the first euro for outsourced service providers), and during calls for tenders (assessment of ESG performance with a minimum weighting of 15% of ESG criteria, raised in 2023, compared with a minimum of 5% in 2022); the use of ESG evaluation questionnaires in calls for tenders and the inclusion of their results in the overall assessment of suppliers are included in the Procurement Function’s control plan; a sustainable sourcing charter, setting out the reciprocal commitments of the Group and its suppliers and subcontractors from an environmental and social standpoint. This charter commits suppliers to promoting and enforcing the same principles with their own suppliers and subcontractors. Membership of this charter is part of the onboarding process with external suppliers; supplier risk monitoring rules, targeting certain ESG criteria used during the onboarding process and completed by thematic regulatory watches and external ESG ratings; on-site audits of targeted suppliers entrusted to an independent service provider on sensitive purchasing categories and organised by the central Procurement & Performance (P&P) team as part of a sectoral initiative conducted with other banks in France. This framework set up within the central Procurement & Performance teams is gradually being rolled out to the other Procurement Function teams. In addition to this system, BNP Paribas, a signatory in France of the Charter for Responsible Supplier Relations (RFAR) promoted by the Mediation of Companies under the Ministry of the Economy and Finance, has been awarded the RFAR label for three Group entities since July 2024 for a three-year cycle (BNP Paribas SA, BNP Paribas Personal Finance France and BNL in Italy). As part of the commitments of the RFAR Charter, internal mediators independent from the Purchasing departments, whose contact details are published on the respective institutional websites, offer a means of recourse in the event of disagreement. A specific system has been set up by BNP Paribas Real Estate given the specific nature of its activity with supplier charters adapted to each of its business lines (BNP Paribas Real Estate sustainable sourcing charter). 2.3The system related to the distribution of financial products and services to individuals The BNP Paribas Code of conduct sets out a set of rules aimed at maintaining a high level of ethics, particularly in business relationships and customer-related activities. In particular, it includes the steps to be taken to ensure fair treatment of customers and support people in financial difficulty to find a solution to their situation that suits all parties. Non-discrimination in access to financial services is included in the internal policy for the protection of the interests of clients (PIC). This subject constitutes a specific area of expertise within the Compliance Function, which monitor these issues. The PIC policy, for which a summary is available on BNP Paribas' website(152), defines the rules of organisation and conduct that must be applied by the Group throughout the relationship with BNP Paribas' customers, and at all stages of the product and service life cycle. In addition, BNP Paribas is committed to its clients to being exemplary in the protection of their personal data. With the development of the global digital economy, regulators and data protection authorities around the world have considered that rapid technological change requires appropriate laws and regulations for data protection and their privacy. Data protection laws are thus being strengthened globally, some of which are applicable to a large number of Group entities (e.g. GDPR) and compliance with data protection rules has a paramount importance for BNP Paribas. The Group has strict internal procedures governed by the Group Data Office and RISK Departments to oversee the processing of personal data and implement best practices in this area. 2.4The system related to corporate financing activities 2.4.1Global system ESG risks related to corporate financing and investment activities are managed under the lead of the Group’s Risk Appetite Framework, a Group risk management framework validated by Executive Management, which includes ESG risks (see the representation of the overall ESG risk management system below). Considering the ESG aspect to be one of the Group’s major challenges and a fundamental component of the client knowledge, the Group has generalised the integration of ESG evaluation criteria into the client life cycle: in the process of entering into a relationship (Know Your Client – KYC process) and during the various stages of the relationship, such as the granting of loans or the annual review. These steps are also an opportunity to verify compliance with the exclusion lists. The general credit policy, as well as the specific credit policies, include ESG criteria. Since 2021, the ESG Assessment has provided a more systematic and comprehensive assessment of ESG topics along the entire credit chain: from the onboarding to the grant of a credit, monitoring and reporting. By covering five environmental (climate, pollution and biodiversity), social (labour rights and human rights of local communities and consumers) and governance (business ethics) dimensions across several questions, adapted to the client's sector of activity, the tool provides a global overview of the client's ESG profile, which is complemented by the analysis of controversies. It helps decision-making through the usual credit processes, in strengthening and documenting ESG due diligence at the counterparty, transaction and collateral levels. Initially launched for the Group's large corporate clients, the ESG Assessment framework was enlarged in 2024 to medium-sized companies (companies with turnover of over EUR 50 million, selected on risk-based criteria) and to financial institutions. Additional ESG risk assessment tools also exist for certain client companies for which the ESG Assessment is not deployed, such as questionnaires related to the law on the duty of care. These apply in particular to corporate clients operating in countries with very high or high environmental and social risks, and in sectors with salient risks, as defined by the mapping related to the Group's banking and financial activities (see sections 1.4.1 Risk related to the countries of operation of corporate clients and 1.4.2 Risk related to the business sectors of corporate clients). ➤Representation of the overall ESG Risk Management system These various assessment tools make it possible to qualify the level of risk associated with the duty of care for each corporate client or activity and to manage the associated risk management measures. These measures include sectoral policies, specific ESG analyses and activity restriction or exclusion lists. They are differentiated according to investment and financing activities and are summarised in the table below. It is all these measures that enable to minimise the risk for the Group of being associated with a serious violation of human rights and the environment via its financial activities. The Group has also published its responsible business principles charter(153) for its corporate clients, thus reaffirming BNP Paribas’ will to engage with clients whose business practices demonstrate a high level of governance and responsibility with respect to human rights and fundamental freedoms, the health and safety of individuals, and the environment. 2.4.2The system related to project financing As a signatory to the Equator Principles alongside 128 other financial institutions worldwide (at end 2024), and in its role as a financial service provider and advisor, BNP Paribas works with its clients to identify, assess, and manage the risks and environmental and social impacts linked with major industrial and infrastructure projects. According to these principles, the negative impacts of these projects on communities, ecosystems or the climate must be avoided or minimised, mitigated and/or offset. Projects graded A present significant risks and systematically involve enhanced due diligence with both an internal (via CIB ESG team) and external (by an independent consultant supporting investors) perspective; those graded B present more limited risks; and those graded C have minimal or no risks. (see the table in section 1.4 Mapping of risks concerning financing, investment and advisory activities for corporate clients). 2.5The system related to investment activities The Group’s asset management subsidiary, BNP Paribas Asset Management, and the Group’s insurance subsidiary, BNP Paribas Cardif, implement their ESG strategies, which include, among other things, the application of the Group’s sectoral policies (see section 1.4 Mapping of risks concerning financing, investment and advisory activities for corporate clients). BNP Paribas Asset Management’s Global Sustainability strategy(154), launched in 2019 and updated in December 2023, details the way in which ESG issues are deployed in investment strategies. It is based on the exclusion of certain sectors, engagement and dialogue (stewardship) as well as responsible business conduct and a long-term perspective. In order to promote ESG best practices within the companies in which the asset management company invests on behalf of clients, BNP Paribas Asset Management exercises its voting rights as a shareholder at Annual General Meetings. 3Appropriate actions to mitigate risks or prevent serious harm 3.1Concerning the Group's employees The Group’s commitments in terms of employee rights concern: freedom of association and collective bargaining: the Global Agreement includes the Group’s commitments in this area; social dialogue is particularly developed within the scope of the European Works Council (covering more than 70% of the Group’s workforce); non-discrimination, the fight against inequality and exclusion: these issues are at the heart of the Group’s Code of conduct, in particular the “Respect for People” chapter, which aims to combat inappropriate behaviour. They are also integrated into the recruitment and career management processes. Lastly, gender equality is one of the commitments of the Global Agreement; occupational health and safety: all employees benefit from a reference corpus on the personal and property safety, which notably establishes fundamental principles in terms of safety and security, under the Global Agreement, all employees are covered in terms of healthcare, death and disability insurance and benefit from a minimum period of maternity leave. The new agreement includes minimum provisions for all for paid paternity leave, and for the settling-in leave, the We Care occupational health and well-being programme has boosted the actions in the prevention of psychosocial risks, risks related to a sedentary lifestyle and actions to promote employee mental health; working conditions: BNP Paribas is attentive to compliance with the prohibition of forced labour within the Group and monitors employees under the age of 18 (the Group had one employee aged 17 in the United Kingdom at the end of December 2024). Employment is managed under collective agreements. In addition, respect for work-life balance is incorporated in the European Agreement on the prevention of work-related stress and the European Remote Working Charter. With regard specifically to the risks of discrimination and the promotion of respect for persons, the Group has taken several measures to combat discrimination and promote respect for persons. This includes: an awareness-raising module entitled “Diversity, Equality & Inclusion” included in the mandatory Conduct Journey training; an objective relating to compliance with the Code of conduct assigned annually to all employees; the strengthening and global deployment of the “Respect for Persons” policy; communication to employees on whistleblowing channels and dedicated training courses for managers; raising employee awareness through Inclusion Days on equal opportunities, prejudice, disability and financial inclusion. In order to mitigate psychosocial risks, the Group: continues its preventive actions around the health and well-being at work of its employees while adapting its managerial practices within the framework of the We Care programme; sets up programmes related to the prevention of psychosocial risks and work-related stress; has continued to support its employees towards a hybrid way of working including remote working by adapting managerial practices. In order to promote professional equality, the Group: has set itself ambitious gender diversity targets at all levels of the organisation by 2025: 40% of women on the Group Executive Committee (ExCo) and Senior Management Positions (SMP), and 35% of women in the IT line by 2030 as part of the Women in IT programme; has continued its actions based on the development of employee skills, in roles that are structurally unbalanced in terms of gender (such as IT, Data, Digital, market activities within CIB); has carried specific equal pay measures for several years now, notably as part of the Mandatory Annual Negotiations at BNP Paribas SA in France. 3.2Concerning BNP Paribas’ suppliers and subcontractors In addition to the system described in section 2.2 The system concerning suppliers and subcontractors, the Procurement Function has set up: contracts covering requirements on environmental and social criteria which, since 2018, have also included the option of ending contractual relations if suppliers do not comply with the Group’s ESG requirements; training for the Procurement Function: in 2024, 96% of the employees of the entities included in the annual reporting were trained in one or other of the mandatory training modules (Human Rights in the Company or Sustainability Basics); ESG objectives in the annual objectives of the buyers of the central Procurement & Performance (P&P) teams. This framework set up within the central P&P team is gradually being rolled out to the other Procurement teams. In France, as part of its Diversity & Inclusion policy, the Group has a committed policy to promote the development of purchases from the STPA (protected and adapted work sector) and SIAE (sector for inclusion through economic activity) structures. BNP Paribas SA’s agreement in France on the employment, professional integration and retention of people with disabilities includes the objective of reaching EUR 2 million in revenue excluding tax by 2025 with the STPA. This agreement was renewed for a period of three years (2023-2025), and approved by the French Ministry of Labour. This commitment to diversity in procurement is gradually being extended to the entire social entrepreneurship sector. The BNP Paribas Group, part of the Collectif d’Entreprises pour une économie plus inclusive(155) (business collective for a more inclusive economy), aims to increase its inclusive purchases in France by 30% by 2025 (from STPAs and SIAEs), compared to 2022. With regard to its suppliers specific to the real estate business, BNP Paribas Real Estate has put in place an appropriate sustainable sourcing charter, signed by the suppliers, which mentions the salient environmental and social risks identified. To address the specific nature of its purchases and suppliers, Arval has defined a sustainable sourcing plan that will be implemented from 2025, including a supplier assessment, training for buyers and community outreach for suppliers. 3.3Concerning the distribution of financial products and services to individuals BNP Paribas deploys several actions to mitigate the risks related to its distribution of products and services to individuals. The Group: optimises the sale of products and services adapted to the needs and situation of customers, according to the rules defined by the policy for the protection of the interests of clients (PIC); ensures that the information provided is clear, transparent and non-misleading and enables customers to make informed decisions; ensures the accuracy of information relating to the environmental or social characteristics of the products offered; prioritises the interests of customers rather than those of the Group or its employees; guarantees the protection of the personal data of individual customers and respect for their right to privacy; trains employees (particularly front office and management) to the protection of the interests of clients and the protection of their personal data; deploys a system for listening to the voice of customers on a broad and continuous basis; manages customer complaints; ensures non-discrimination in the access of individual customers to financial products and services, by improving access to credit and insurance and by supporting customers who are vulnerable due to their disability or financial situation; implements a financial inclusion approach through specific offers such as Nickel and by supporting Microfinance Institutions: Nickel’s offer, available in five European countries (France, Spain, Belgium, Portugal and Germany), enables the opening of an account with an IBAN, an unconditional payment card and home insurance available online, support for Microfinance Institutions, with microloans benefiting people in 13 countries in 2024, including many new emerging countries; prevents the risk of indebtedness, in particular by supporting individual customers in managing their budget and by offering financial education solutions (for example the AXELLE online platform of Commercial & Personal Banking in France or the Responsible Budget programme of BNP Paribas Personal Finance in Belgium, France and Italy). Commercial & Personal Banking in France also offers the “Forfait de Compte” solution for people in a financially vulnerable situation(156). This specific offer was created to control their budget with a range of banking products and services at a moderate price and to limit fees in the event of payment incidents and account irregularities. 3.4Concerning financing, investment and advisory activities for corporate clients The risk mitigation and serious harm prevention system is based on the Group's financing and investment sectoral policies(157). These policies cover the sectors of agriculture, defence, nuclear energy, palm oil, mining, wood pulp, oil and gas, energy production from coal, and are subject to changes to better take into account the new challenges of the sectors covered. They are supplemented by internal application guides. For example, the oil and gas policy was reinforced in 2023 to include conventional oil and gas resources. In addition, the Group’s risk mitigation and serious harm prevention system also relies on specific actions implemented with regard to risk mapping, such as the management of controversies concerning environmental, social and governance issues. BNP Paribas Asset Management and BNP Paribas Cardif use collaborative dialogue (working groups or coalitions whose members cooperate to act jointly with companies) to encourage improvements in practices. For example, these two entities are members of the Climate Action 100+ initiative and, as such, regularly engage in dialogue with companies ranked among the world’s top greenhouse gas emitters to improve their climate change governance and strategy. BNP Paribas Asset Management is also a founding member of the initiative Nature Action 100. 3.4.1Activity restriction according to the severity of the environmental and social impacts BNP Paribas has defined strict ESG criteria in many sectors, compliance with which determines the activity with its corporate clients, whether at the level of a client (which does not comply with the prohibitive criteria of a sectoral policy), a sub-sector (unconventional hydrocarbons), or a sector as a whole (such as tobacco). In order to identify the companies presenting the highest environmental and social risks, the Group defines and applies sectoral policies, while managing activity restriction lists according to the level of ESG risks observed, i.e. a list of excluded companies (1,753 at end 2024) and a list of companies placed under monitoring (983 at end-2024). Companies placed on the monitoring list are subject to an engagement by the Group to make lasting changes to their practices and reduce their ESG risks. For excluded companies, the Group prohibits any financing or investment relationship. BNP Paribas has also compiled an exclusion list(158) of specific goods and activities that the Group is unwilling to finance, such as tobacco. These lists are periodically updated using data supplied by clients and external sources, and by analysing the key controversies involving corporate clients accused of serious violations of human rights and the environment. With regard to the reduction in BNP Paribas' support for fossil fuels: since end 2017, the Group stopped supporting companies and infrastructure whose primary business is exploration, production and export of gas/oil from shale, oil from tar sands or gas/oil production in the Arctic. In 2022, BNP Paribas decided to no longer provide products and services to companies where more than 10% of the activity is related to tar sands and shale oil and gas; in 2020, BNP Paribas announced a strategy for a complete exit from the thermal coal value chain by 2030 in the European Union and OECD countries, and by 2040 in the rest of the world. Sectoral policies covering the mining and dedicated infrastructure sectors were also reviewed; 2024 was a new year of acceleration in the shift of BNP Paribas’ financing of the energy sector to low-carbon, mainly renewable energy sources(159), which already accounted for 65% of the Group’s total credit exposure to the energy production sector on 30 September 2023. At the end of September 2024, they represented 76%. In line with its strategy of sharply accelerating the financing of the energy transition, BNP Paribas has set itself the target of ensuring that low-carbon energies make up 90% of its credit exposure to energy production by 2030. The continuous action to accelerate new loans to low-carbon energies and the divestment of fossil fuels will make it possible to achieve the 2030 objective. With regard to combatting deforestation: in early 2021, BNP Paribas strengthened its commitment to combatting deforestation through its policy on agriculture(160), the scope of which includes all financial products and services provided by the Group, including participation in the issuance of bonds; in accordance with its sector policy on agriculture, BNP Paribas will only provide financial products or services to companies producing or purchasing beef or soybeans in the Brazilian Amazon and Cerrado that have adopted and implemented a “zero-deforestation” strategy in their production and supply chain by 31 December 2025 at the latest, and if they have, by that date, full traceability of their direct and indirect value chain in these regions. Clients’ compliance with the mandatory criteria mentioned in this policy will be assessed following the publication of Annual Reports or client audits during 2026; since 2021, an analysis of the portfolio of producers, meat packers and traders involved in the value chain of beef from Brazil has been carried out in order to assess their progress and engage in a dialogue; in addition, in 2022, BNP Paribas announced that it would not finance any greenfield or brownfield oil and gas projects, nor any associated infrastructure in the Amazon or Arctic regions. 3.4.2Project financing The Group has been a signatory of the Equator Principles since 2008. These aim to avoid, reduce, mitigate or offset the negative impacts of major industrial or infrastructure projects on communities, ecosystems and the climate, with additional measures in certain countries. For all of its project financing activities, BNP Paribas encourages its clients to obtain the Free, Prior and Informed Consent (FPIC) of the local communities impacted by their projects. Specific restrictions concerning protected areas (such as those listed by the IUCN) are also included in the Group’s financing and investment policies. 3.4.3ESG controversies' management As part of the assessments of corporate clients, the Group identifies and analyses client-related ESG controversies (see section 2.4 The system related to corporate financing activities). When a controversy arises concerning one of its clients, the Group first takes a risk approach according to the geography and criticality of the subject. An internal analysis combines the available information, in connection with the business line hierarchy and the Group’s Company Engagement Department, in order to estimate the severity of the controversy and to determine the list of questions that the client must answer. After contact with the latter, their additional responses and any action plan (taking into account the time horizon) are analysed in order to reach a final decision: continue the activity if everything is deemed satisfactory; suspend operations if doubts remain (with request for the implementation of a remediation plan and monitoring until satisfaction); exclusion if the situation cannot be remedied. BNP Paribas also deepens its sector analyses on controversies affecting an entire sector. The Group then issues internal recommendations as to the criteria to be monitored, and specific questions are included in the assessment system for clients in these sectors. 3.5Alignment of the credit and investment portfolios with the net-zero objective in 2050 Pursuing its commitments to combat global warming, BNP Paribas has decided to gradually align its credit and investment portfolios with the objective of financing a carbon-neutral economy by 2050, which corresponds to a temperature increase limited to 1.5°C compared to the pre-industrial era. 3.5.1Significant resources for applying the Group’s climate vigilance BNP Paribas has dedicated a large number of employees from several teams to help implementing the Group’s alignment strategy: the Climate Analytics & Alignment (C2A) team is made up of employees from the Group’s Company Engagement Department and CIB Global Banking EMEA. It develops and deploys methodologies for aligning portfolios by business sector, in accordance with market standards, and calculates metrics at the level of the Group's credit portfolio to manage it in the targeted sectors and establish an external reporting; the Low-Carbon Transition Group (LCTG), created in 2021, is a global platform bringing together an ecosystem of nearly 250 specialised bankers who support clients - companies and international institutions - in accelerating their transition to a sustainable and low-carbon economy. A continuum of banking and non-banking solutions is therefore provided for the decarbonisation of the economy, and particularly the energy, mobility and industry sectors. In addition to renewable energies and nuclear, the Bank is developing specific expertise to support the development of new value chains such as batteries, green hydrogen and low-carbon fuels, as well as CO2 sequestration. At the same time, the Low-Carbon Transition for SMEs & MidCaps (LCTM) is a team created in 2022 dedicated to this customer segment and which aims, with the CPBS sales teams, to accelerate support for the sustainable transition of clients and contribute to managing the Group’s credit portfolio in line with its climate commitments; the CSR network, which operates in the divisions, business lines, branch networks, functions and subsidiaries to facilitate the deployment of the CSR policy throughout the Group, with more than 300 employees devoting all or most of their time to managing CSR issues; the RISK Function, which continuously performs a second-line control over credit and counterparty risks, market risk, interest rate and foreign exchange rate risks on the banking book, liquidity risks, insurance risks, and operational risk, including technological and cybersecurity risks, data protection risks, modelling risks and environmental and social risk factors, as well as the associated governance risks; the Finance, RISK and ALM Treasury Functions have created a shared team called Stress Testing & Financial Simulations (STFS), responsible for rolling out stress testing activities, ICAAP (Internal Capital Adequacy Assessment Process) tests and internal capital tests together with financial planning across the Group’s entities and activities. Stress test methodologies are tailored to the main categories of risk and are subject to independent review. 3.5.2Decarbonisation objectives for nine of the highest-emitting sectors In the Sustainability statements published in 2025, BNP Paribas presents in detail the stages of the alignment of its credit and investment portfolios. These statements explain the strategy implemented by the Group and stipulate what data is used, the methodologies for calculating the alignment trajectory and the methods for managing the portfolio. The Sustainability statements detail (in section 7.1.2 Climate change) the Group’s progress in achieving its targets for the reduction of financed greenhouse gas (GHG) emissions in nine business sectors. These nine sectors, which are all among the highest emitters, are as follows: power generation, for which the Group has undertaken to: increase the share of renewable energies in the energy mix that it finances to reach more than 66% in 2025 and reduce the share of coal in the energy mix that it finances to less than 5% in 2025, reduce the CO2 intensity of its financing by at least 30% in 2025 compared to 2020; oil and gas, for which the Group has undertaken to: reduce its credit exposure to oil exploration and production activities by 80% between September 2022 and 2030, reduce its credit exposure to gas exploration and production activities by 30% between September 2022 and 2030, reduce its financed GHG emissions in absolute value for the oil and gas sector by 70% in 2030 compared to September 2022; automotive, for which the Group has undertaken to: increase the share of electrified vehicles in the automotive mix that it finances to reach more than 25% by 2025, reduce the CO2 intensity of its financing by at least 25% in 2025 compared to 2020; steel, for which the Group has undertaken to: reduce the CO2 intensity of its financing by at least 25% in 2030 compared to 2022; aluminium, for which the Group has undertaken to: reduce the intensity of GHG emissions of its financing by at least 10% in 2030 compared to 2022; cement, for which the Group has undertaken to: reduce the CO2 intensity of its financing by at least 24% in 2030 compared to 2021; aviation, for which the Group has undertaken to: reduce the intensity of GHG emissions of its financing by at least 18% in 2030 compared to 2022; shipping, for which the Group has undertaken to: reduce the intensity of GHG emissions of its financing by 23% to 32% in 2030 compared to 2022; commercial real estate, for which the Group has undertaken to: reduce the intensity of GHG emissions of its financing by 31% to 41% in 2030 compared to 2022; the Group also published the GHG emissions intensity, at the end of 2022 and at the end of 2023, of its financing in the residential real estate sector. In 2022, BNP Paribas Asset Management and BNP Paribas Cardif published their net-zero commitments: regarding BNP Paribas Asset Management’s investments, these commitments are as follows: reduce the carbon footprint (scopes 1 and 2) of its investments in scope (around 50% of assets under management to date, with the objective of reaching 100% over time), by 30% by 2025 and by 50% by 2030 (compared to 2019), align the relevant investments (also around 50% of assets under management to date) with the “net zero” principle: 60% by 2030 (aligned or in the process of aligning with the “net zero” objective) and 100% by 2040, substantially increase investment solutions in climate and environmental issues, dialogue with clients on their net-zero transition; regarding BNP Paribas Cardif’s investments, these commitments are as follows: reduce the carbon footprint of directly held equity and corporate bond portfolios by at least 23% by 2024 (compared to 2020), reduce the carbon intensity of directly held office buildings by at least 12% by 2030 (compared to 2020), achieve a carbon intensity of less than 125 g of CO2/kWh for electricity producers in directly-held equity and bond portfolios by the end of 2024, allocate at least EUR 800 million per year to environment-themed investments; regarding shareholder engagement or stewardship, these commitments are as follows: support the climate action of companies (by including climate considerations in the voting policy, by supporting relevant shareholder proposals in this area), dialogue with companies individually and collectively on their climate strategy and the ambition to achieve net zero GHG emissions, advocate for a climate lobbying policy aligned with the Paris Agreement. 3.6Sustainable finance activities The Group’s CSR strategy is structured to contribute to achieving the United Nations’ 17 Sustainable Development Goals (SDGs). This strategy involves supporting all customers, individuals, companies and institutions, in their transition to a low-carbon economy, respectful of the planet’s resources and enabling the respect of human rights and the inclusion of the most vulnerable. To this end, the Group continues to expand the range of products and services to support and even accelerate this transition including: sustainable loans, for which the internal classification is based on external market standards such as those of the Loan Market Association and the European Taxonomy in Europe; sustainable bonds, according to the guidelines of the International Capital Market Association (ICMA), including, among others, green bonds and social bonds; sustainable investment funds, which make it possible to direct investments towards assets incorporating ESG criteria, in other words funds classified as articles 8 and 9 according to the Sustainable Finance Disclosure Regulation (SFDR), whether they promote environmental or social characteristics (article 8), or have a sustainable investment objective (article 9); financing for low-carbon energy production; support for impact enterprises (including microfinance institutions): through banking services or investment, through financing, in particular with impact bonds, which enable the financing of innovative projects led by associations or impact enterprises, with a payment for results model dependent on social, environmental and development indicators, or the circular economy. 4Dialogue with stakeholders and whistleblowing mechanism 4.1Dialogue with stakeholders Dialogue with stakeholders is at the heart of BNP Paribas’ social and environmental responsibility. The Group’s commitment to maintaining an open and constructive dialogue with its stakeholders aims first and foremost to better identify and understand the interests, points of view and expectations of its stakeholders, as well as the impacts of its activity. The Group can thus take them into consideration in the evolution of its product and service offering, in line with the real needs of its customers, the evolution of its business lines and the definition of its strategy. This dialogue is also key to informing stakeholders of the Group’s decisions and actions, and to explaining them, with the aim of transparency and clarity. The Group identifies several stakeholders of different types and with different levels of interaction. In particular, can be noted its customers (individuals, professionals, companies and institutions), its employees and employee representative bodies, its shareholders (individual and institutional investors), its suppliers, financial and extra-financial rating agencies, regulatory bodies and public authorities, civil society and its organisations. BNP Paribas has implemented a structured approach to dialogue with its stakeholders and relies on several internal policies governing relations with them to frame its approach. For example: with regard to customers, the clients' interests protection policy defines the rules of organisation and conduct that must be applied by the Group throughout the relationship with the customer, and at all stages of the life cycle of products and services; the BNP Paribas sustainable sourcing charter sets out the Group’s ethical principles and commitments with its suppliers. In addition, each type of stakeholder has identified contacts within BNP Paribas, at the level of a function or business line. The Group adapts and deploys several channels of dialogue with its stakeholders, the main ones of which are listed below. Customers are in contact with the Group’s dedicated sales teams according to their profile and needs. Their interests and points of view are collected as part of the Advocacy programme to listen to the voice of customers (for example Net Promoter Score, relationship surveys, transactional surveys). These channels of dialogue are supplemented by the processing of complaints at the level of each Group entity and by the services of independent mediators; for employees and employee representative bodies, the Group’s Human Resources are the main contacts. The interests and points of view of employees are gathered through targeted surveys, social dialogue, employee networks and the whistleblowing platform. The Global Agreement, renewed in 2024, provides for the possibility of specific exchanges with, in particular, the trade union federation UNI Global Union, within a dedicated annual monitoring committee; for shareholders (individual and institutional investors) and financial and extra-financial rating agencies, the dedicated contacts are Investor Relations and Financial Information (RIIF) and the ESG Transparency & Performance team (ESG T&P) within the Company Engagement Department for ESG topics. BNP Paribas presents its CSR strategy to investors several times a year and regularly keeps extra-financial analysts informed; for BNP Paribas suppliers, the Procurement & Performance (P&P) teams organise regular monitoring meetings to collect feedback and implement progress plans. The central team also organises annual events dedicated to the Group’s key suppliers and conducts satisfaction surveys (SME Pacte barometer), which are also channels for reporting information and dialogue. As a signatory in France of the Responsible Supplier Relations Charter (RFAR) promoted by the Mediation of Companies, BNP Paribas also has independent internal purchasing mediators in France and Italy, whose contact details are published on the Group’s institutional websites and BNL's, and which offer a remedy channel in the event of a dispute; regulatory bodies and public authorities hold regular discussions with the Institutional Affairs department, in accordance with the charter for responsible lobbying to public authorities(161); civil society and its organisations are in contact with the teams of the Company Engagement department and the business lines. Within the Company Engagement Department, a team is dedicated to relations with advocacy NGOs. All of these discussions enable the Group to better understand its impacts on people and the environment and the associated expectations of its stakeholders, to focus its actions on vigilance issues and to strengthen their effectiveness. 4.2Whistleblowing framework BNP Paribas Group pays particular attention to the concerns of customers, employees, shareholders, suppliers and society as a whole. The Group is committed to listening, understanding and seeking to respond to the concerns raised by its stakeholders in a fair and effective manner. BNP Paribas employees should report any effective or suspected breach of the Code of conduct, Group policies and procedures, or regulations. Employees can report issues to their line manager or another manager, or to Human Resources for issues relating to respect for persons, or to a Compliance alert channel. Any suspicion by a BNP Paribas employee of a serious or potentially serious violation of human rights and fundamental freedoms, the health and safety of individuals, and the environment may be reported according to this whistleblowing system, except when specified otherwise by local regulations or procedures. The whistleblowing system is open to Group employees and external third parties via the “BNP Paribas Whistleblowing Platform”, accessible on the BNP Paribas intranet and institutional website(162). The protection of whistleblowers against the risk of retaliation was strengthened in 2022, in line with the transposition of the European Directive 2019/1937. Any person that needs to know of an alert during its processing is formally committed to respecting the confidentiality of the information relating to the whistleblower and any person involved. In addition, the Group guarantees the protection of whistleblowers against the risk of retaliation, and any person considering themselves the victim of retaliation may issue an alert that will be dealt with according to the standards defined by the Human Resources Department. This protection applies regardless of the channel used by the whistleblower. The whistleblowing system is presented in the mandatory Code of conduct training course. Alerts are analysed and processed, with 278 alerts reported via the Compliance alert channels in 2024. 5System for monitoring the measures implemented and assessing their effectiveness ➤Table of indicators monitored and report on operational implementation Topic Indicator 2024 2023 Risk(s) addressed Employees Number of Pulse surveys carried out during the year, number of countries concerned and average participation rate 46 surveys in 62 countries with an average participation rate of 72% 71 surveys in 57 countries with an average participation rate of 71% Risks related to working conditions, freedom of association and collective bargaining, risks of discrimination, inequality and exclusion, risks related to health and safety at work Percentage of employees who completed ethics or conduct training during the year 98.1% Between 96% and 99% Risks related to non-compliance with fair practices and ethics, fraud and corruption Employment rate of employees with disabilities 3.2%(1) 3%(2) Risks of discrimination, inequality and exclusion Suppliers and subcontractors Number of ESG evaluations of external suppliers carried out in a new relationship context 5,214 5,312 Risks related to non-compliance with the principles set out in the BNP Paribas sustainable sourcing charter: fair practices and ethics: fraud and corruption, protection of personal data, property rights and patents; respect for human rights and social conditions; environmental protection Distribution of financial products and services to individuals Number of surveys conducted during the year among individual customers in the four Domestic Markets (France, Belgium, Italy and Luxembourg) 7.3 million surveys sent by e‑mail. In addition, nearly 850,000 feedback items were collected via live surveys on digital channels (pop-in, pop-up) 7 million surveys sent by email. In addition, nearly 800,000 feedback items were collected via live surveys on digital channels (pop-in, pop-up) Risks of discrimination in access to products and services Risks of inadequate customer decisions and indebtedness Percentage of beneficiaries of the specific “Forfait de Compte” offer from Commercial & Personal Banking in France, out of the total number of customers identified as financially vulnerable 19.7% 19.5% Risks of non-accessibility to financial products and services, covering both non-discrimination and contribution to social inclusion through financial inclusion Financing, investment and advisory activities to corporate clients Number of companies on the activity restriction lists, of which excluded and monitored companies 2,736 companies of which 1,753 excluded and 983 under monitoring 1,718 companies of which 1,432 excluded and 286 under monitoring Risks related to human rights and fundamental freedoms Risks related to the health and safety of individuals Risks related to the environment Number of resolutions during the year opposed by BNP Paribas Asset Management at Annual General Meetings for ESG reasons Opposition to 2,294 resolutions proposed by 371 companies Opposition to 1,521 resolutions proposed by 271 companies Risks related to human rights and fundamental freedoms Risks related to the health and safety of individuals Risks related to the environment Share and amount of low-carbon energies in the Group’s financing of energy production at the end of the year, of which renewable 76% (at end September 2024) EUR 36.8 billion, of which EUR 34.2 billion for renewable energies 65% (at end September 2023) EUR 32 billion, of which EUR 28.8 billion for renewable energies Risks related to the environment: climate change and greenhouse gases, damage to biodiversity, resource depletion Whistleblowing mechanism Number of alerts received by the Compliance Function through the whistleblowing system 278 333 Risks related to human rights and fundamental freedoms Risks related to the health and safety of individuals Risks related to the environment Dialogue with stakeholders Number of interactions during the year with advocacy NGOs 182 183 Number of interactions during the year with investors on ESG topics 87 96 Data collected in the Social Reporting campaign, which covers 95% of the Group's employees in FTE as of 31/12/2024. Employment rate in the entities covered by the Social Reporting campaign that specifically report monitoring the number of employees with disabilities in their workforce (covering 91% of the Group’s employees in FTE as of 31/12/2023. 5.1Employees In addition to the indicators concerning BNP Paribas' employees listed in the table above and the three indicators relating to the Group’s social responsibility included in the CSR dashboard (presented in section 7.1.1 General information 2.a Strategy, business model and value chain in the Group's Sustainability statements), other objectives are monitored by the Group with regard to its employees. As part of the Global Agreement, a joint monitoring committee responsible for the implementation of the Agreement meets once a year to assess the progress made under the agreement and to take stock of the past year on the basis of a grid of indicators by country and geographical area. In terms of gender pay equality, the Group set a dedicated budget of EUR 10 million for BNP Paribas SA over two years in 2022, renewed at the BNP Paribas SA Mandatory Annual Negotiations in France in 2024 with EUR 10 million to be divided equally over 2025 and 2026. BNP Paribas remains attentive to its employees through Pulse surveys, with 46 surveys carried out in 62 countries, with increasingly high participation rates within the Group. In 2024, it was a 72% participation rate on average among nearly 173,000 employees surveyed. The vast majority of surveys launched in 2024 by the Group’s various business lines and entities incorporated three common questions related to employee engagement, in particular pride in belonging to the Group, adherence to the strategy and involvement in work. The overall engagement score based on the consolidation of all local engagement scores(163) reached a high level of nearly 85 out of 100 (stable compared to 2023). The Group also listens to employees through their representatives. Indeed, the Group’s desire is to be part of a constructive social dialogue, which goes beyond the organisational levels, from the subsidiaries to the SA, from the Group in France and beyond our borders. These discussions with employee representatives cover key topics such as strategy, results and transformation projects. The Group invests heavily in the training of its employees, particularly on ESG topics, for which specific monitoring has been put in place. In 2024, 77,270 Group employees attended Sustainability Academy training and specific training on respect for human rights in the conduct of business was rolled out to 1,600 targeted employees. Since its launch at the end of 2022, more than 130,000 Group employees have been trained as part of the Sustainability Academy. 5.2Suppliers and subcontractors The number of ESG evaluations of suppliers and subcontractors carried out in a new relationship context is an indicator monitored by BNP Paribas for this category of stakeholders. In 2024, 5,214 ESG evaluations were carried out (compared to 5,312 in 2023). Another indicator, the number of suppliers belonging to the priority monitoring quadrant (sensitive suppliers list) that have adhered to its sustainable sourcing charter, is also monitored. At the end of 2024, 2,007 suppliers had signed this sustainable sourcing charter (compared to 1,287 at the end of 2023). These figures concern around 30 Procurement teams located in 25 different countries that contributed to responsible purchasing reporting in 2024. At BNP Paribas Real Estate in 2024, 81% of suppliers signed the sustainable sourcing charter (compared to 45% in 2022). 5.3Distribution of financial products and services to individuals With regard to the broad and continuous system to listen to customers deployed by the Group in 2024, in the four Domestic Markets (France, Belgium, Italy and Luxembourg), 7.3 million e-mail surveys were sent to customers to collect their feedback, with a return rate of 7%. In addition, nearly 850,000 feedback items were collected via live surveys on digital channels (pop-in, pop-up). With regard to the Group's financial inclusion offers, at the end of 2024: in France, 19.7% of customers identified as financially vulnerable by Commercial & Personal Banking in France benefited from its dedicated “Forfait de Compte” offer, which aims to contribute to the improvement of their financial situation with adapted banking services and a cap on a set of costs; Nickel has achieved more than 4.3 million accounts opened since its creation, up by more than 706,000 accounts in one year; BNP Paribas’ direct support for microfinance reached EUR 468.8 million in loans and investments for 22 Microfinance Institutions (MFIs) in 13 countries. At the end of September 2024, this represented nearly 700,000 active beneficiaries (of partner MFIs) indirectly supported by BNP Paribas. 5.4Financing, investment and advisory activities for corporate clients At the end of 2024, the system for financing and investment activities for corporate clients as well as the restriction of activity according to the severity of the environmental and social impacts produced the following results: ESG Assessment questionnaires were conducted with medium-sized corporate clients (companies with turnover of over EUR 50 million, selected on risk-based criteria) and financial institutions; at the end of 2024, the restriction of activity lists included 2,736 companies (compared to 1,718 in 2023), of which 1,753 companies were excluded and 983 monitored; in 2024, BNP Paribas Asset Management voted at 2,063 Annual General Meetings, abstaining or opposing around 35% of these resolutions (compared to 36% in 2023), and supporting 85% of shareholder proposals on climate change and 97% of those on social topics. In 2024, BNP Paribas Asset Management opposed 2,294 resolutions proposed by 371 companies, primarily due to environmental or biodiversity-related considerations; in 2024, 96% of BNP Paribas Cardif’s general assets in euros in France were subject to an ESG analysis. With regard to sustainable financing and activities with a positive impact, the results are as follows: sustainable loans, for an amount of EUR 133 billion at the end of 2024; sustainable bonds, for an amount of EUR 106 billion at the end of 2024, for which BNP Paribas was the world leader at the end of 2024 according to Dealogic; assets under management under articles 8 and 9 of the SFDR in BNP Paribas Asset Management’s open-ended funds distributed in Europe reached EUR 285 billion at the end of 2024; financing for the production of low-carbon, mainly renewable energy: at the end of September 2024, this financing represented EUR 36.8 billion, of which EUR 34.2 billion for renewable energy sources, i.e. 76% of the Group’s energy production financing; support for impact enterprises (including Microfinance Institutions), which exceeded EUR 2 billion at end-2024, with support for 3,119 impact enterprises. With regard to the alignment of the credit portfolio, given the relative weighting of each sector in the Group’s credit exposure, the average results for end-2024 in the nine business sectors for which the Group has set intermediate targets are in line with BNP Paribas’ ambition to finance a carbon neutral economy by 2050 (see section 3.5 Alignment of the credit and investment portfolios with the net-zero objective in 2050): ➤Results observed at the end of 2024 concerning the alignment of BNP Paribas’ CREDIT portfolio Sector Metric Reference base [year at 31/12 unless otherwise stated] Most recent result [year at 31/12] Target [year at 31/12] Oil & gas Exploration-production credit exposure in billions of euros Oil: 5.0 Gas: 5.3 [Q3 2022] Oil: 2.1 Gas: 2.7 [2024] Oil: ≤ 1 (-80%) Gas: ≤ 3.7 (-30%) [2030] Financed emissions of the sector (exploration‑ production and refining) in MtCO2e 27.3 [Q3 2022] 9.5 [2024] ≤ 8.2 (-70%) [2030] Power generation gCO2/kWh 208 [2020] 129 [2024] ≤ 146 (-30%) [2025] Share of renewable energy in the electricity mix calculated by capacity 57% [2020] 70% [2024] ≥ 66% [2025] Share of coal in the electricity mix calculated by capacity 10% [2020] 4% [2024] ≤ 5% [2025] Automotive gCO2/km WLTP(1) 183 [2020] 145 [2024] ≤ 137 (-25%) [2025] Share of electrified vehicles(2) 4% [2020] 16% [2024] ≥ 25% [2025] Steel tCO2/t of crude steel 1.6 [2022] 1.5 [2024] ≤ 1.2 (-25%) [2030] Aluminium tCO2e/t aluminium 6.2 [2022] 5.3 [2024] ≤ 5.6 (-10%) [2030] Cement tCO2/t of cement product 0.67 [2021] 0.63 [2023] ≤ 0.51 (-24%) [2030] Aviation gCO2e/RTK(3) 956 [2022] 904 [2023] ≤ 785 (-18%) [2030] Shipping AER (Annual Efficiency Ratio) in gCO2e/ dwt.nm 8.3 [2022] 8.2 [2023] 5.6 - 6.4 (-32 to -23%) [2030] Commercial Real estate kgCO2e/m2 28.4 [2022] 27.7 [2023] 16.7 - 19.5 (-41 to -31%) [2030] Residential Real estate kgCO2e/m2 Group: 35.5 France: 20.2 Belgium: 59.7 Italy: 34.4 [2022] Group: 35.0 France: 19.7 Belgium: 58.4 Italy: 33.1 [2023] - WLTP: Worldwide Harmonised Light Vehicle Test Procedures defined by the United Nations Economic Commission for Europe. Electrified vehicles: plug-in hybrid vehicles, battery electric vehicles, vehicles equipped with fuel cells. Revenue Tonne Kilometre. For more details on the scopes and scenarios used, see the full table “Summary of baselines, emissions and targets in intensity and absolute value of the main sectors emitting the most greenhouse gases” in section 7.1.2 Climate change in the Group’s Sustainability reports. In addition, concerning investments, BNP Paribas Asset Management and BNP Paribas Cardif each analysed the impact of their respective investment portfolios on biodiversity for the third year in 2024(164), making it possible to identify engagement targets for the voting team and for the asset managers. Three years after the publication of its first biodiversity roadmap in 2021, BNP Paribas Asset Management published an update of this roadmap in December 2024(165) which details its progress to date. 5.5Operational scope BNP Paribas carries out actions to reduce its direct environmental impacts, with the aim of being consistent with its commitments in its financing and investment activities, setting an example and raising the awareness of its employees. Thus, BNP Paribas has measured its energy consumption and greenhouse gas emissions within its operational scope (scope 1, scope 2 and scope 3 for business travel) since 2012 and is gradually reducing them by reducing energy consumption for its premises, less energy-consuming IT equipment and supervision of business travel, as well as by developing the use of low-carbon energies. With regard to 2024, the Group’s greenhouse gas emissions (expressed in tonnes of CO2 equivalent per full-time equivalent – FTE) amounted to 1.48 teqCO2 per FTE (compared to 1.56 teqCO2 per FTE in 2023). 5.6Interactions with the Group’s external stakeholders Interactions with our stakeholders are key for the Group. Their number is constantly changing, with in particular: 182 interactions with advocacy NGOs in 2024, on topics such as climate, fossil fuels and human rights; 87 interactions with investors in 2024, on various topics such as portfolio alignment, ESG risk management, sectoral policies and CSR governance. 5.7System's controls Risk management is central to the banking business and is one of the cornerstones of operations for BNP Paribas. The Group has an internal control system covering all types of risks to which it may be exposed, including environmental and social risks, organised around three complementary lines of defence. The vigilance plan is based on this system, which makes it possible to verify compliance with procedures and the implementation of appropriate measures if necessary. The operational entities, supported by the Company Engagement, HR and TOP Departments, constitute a first line of defence; they are responsible for their risks and are the primary players in permanent control. The risk management system, which includes ESG risks, is operated by the first line of defence, which forms the first-level control system. The three integrated functions exercising second-level control (second line of defence) are: RISK, responsible for organising and overseeing the overall risk management system (including ESG risks); Compliance, responsible for organising and overseeing the non-compliance risk control system; LEGAL, responsible for organising and overseeing the legal risk control system. The permanent control system is shown below: General Inspection is the third line of defence: the General Inspection is responsible for periodic control, performs the internal audit function and contributes to the protection of the Group by independently acting as its third line of defence on all Group entities and in all areas, including ESG. A dedicated ESG expertise line oversees the coordination of ESG topics across General Inspection. In order to verify the strict application of ESG risk management tools, BNP Paribas has rolled out a CSR operational control plan which establishes a continuous improvement process. This control plan, linked to the application of sectoral policies, exclusion and monitoring lists, and questionnaires on the duty of care, is applied to the Group’s business lines and functions. In addition, BNP Paribas' 2024 Sustainability statements are audited with a limited assurance report by the statutory auditors. Our commitment to continuous improvement BNP Paribas’ vigilance approach is part of a drive for continuous improvement. As such, the Group will complete, where necessary, its identification, control and management tools for identified risks, and will report on them each year in its Universal registration document. 7.3Statement on modern slavery and human trafficking Introduction This Statement outlines the steps that BNP Paribas has taken to ensure that human trafficking(166) and modern slavery(167) are not taking place in its business or in any of its supply chains. It also refers to the risk management processes that the Group has put in place in the context of its financing and investment activities, which govern the potential cases of human rights violations that may affect the activities of its clients. This Statement is for the financial year ended 31 December 2024. The Board and the Director and Chief Executive Officer attest annually that the Group complies with this Statement through the information provided by the respective departments of corporate social responsibility (CSR), Procurement & Performance and Human Resources (HR). This Statement applies to all companies within the BNP Paribas Group that are required to have a slavery and modern trafficking statement. Those who have chosen to prepare their own declaration are not concerned. THE BNP Paribas Group BNP Paribas is Europe’s leading provider of banking and financial services. It operates in 64 countries and employs 177,952 full-time equivalent workforce. It holds key positions in its three main areas of activity: Corporate & Institutional Banking (personalised solutions for our corporate and institutional customers), Commercial, Personal Banking & Services (network of commercial & personal banks in the Eurozone and the Europe-Mediterranean zone, as well as some of the Group’s specialised business lines(168), and Investment & Protection Services (expertise in savings, investment and protection solutions). More information on BNP Paribas operations can be found in section 1.4 Presentation of operating divisions and business lines. The Group purchases nearly EUR 10 billion of expenditures worldwide broken down into nine categories: Real Estate, Market Data, Marketing & Communication, Consumables & General Services, Banking Services, Professional Services, Technology, Transaction fees and Travel. Risks of modern slavery & human trafficking Academic studies, field investigations and recent news coverage have all clearly demonstrated that all sectors, industries and areas may be affected, to varying degrees, by these types of serious infringements to human rights. In this regard, risk assessment policies devoted to the matter of modern slavery practices need to be multi-factorial (with complementary thematic screenings performed, on sector & industry, products & services, geographical and entity level) and regularly updated, in order to tackle this complex issue as fully and efficiently as possible. The risk-assessment process BNP Paribas implements to address the risks of modern slavery and human trafficking takes into account the vastly different situations of its stakeholders and is complemented by the ad hoc monitoring and regular discussions performed by Group teams on this subject. Workforce’s inherent risks Concerning Group employees, the risks of modern slavery and human trafficking were considered very low, most of them being highly qualified professionals. Suppliers’ inherent risks As a bank, BNP Paribas’ supply chains are mainly focused on indirect procurements and expenditure (consulting services, IT services, security, IT equipment, office furniture, promotional items, cleaning and catering services). Depending on the procurement categories, supply chains may be simple or very complex, with human rights related risks being higher, and more difficult to monitor, where supply chain arrangements are complex. Based on the non-production expenses(169) risk mapping tool developed by BNP Paribas, less than 20% (in spending) of the Group procurement categories are at high or very high risk in terms of human rights and labour conditions (including modern slavery and child labour). As for production purchases, an analysis was carried out at the level of the subsidiaries concerned by specific purchases, which made it possible to identify the ESG risks of their main suppliers and to prioritise the measures to be implemented. Financing and investment activities’ inherent risks BNP Paribas meets the needs of millions of individual and professional customers, entrepreneurs, small, medium and large companies in business sectors facing multiple environmental, social and governance (ESG) challenges. The Group also operates in countries where legal and governance systems are at diverse levels of development. This diversity of context calls for structured, comprehensive and expert-driven review and analysis processes, in order to identify potential risks of modern slavery and human trafficking in BNP Paribas clients’ activities, or in the activities of the entities in which BNP Paribas invests on the behalf of its clients. BNP Paribas policy on modern slavery and human trafficking Respect for human rights is one of the pillars on which BNP Paribas’ CSR strategy is based. The Group has committed itself to the promotion of the following principles and standards that form the basis of its activities: the United Nations Sustainable Development Goals; the Ten Principles of the United Nations Global Compact; the United Nations Guiding Principles on Business and Human Rights (United Nations Guiding Principles); the internationally-accepted OECD Guidelines for multinational enterprises; the internationally-accepted standards of human rights, as defined in the International Bill of Human Rights; the core labour standards set out by the International Labour Organization. These public commitments are backed by internal policies implemented at Group level, with the goal of handling the many subjects revolving around social, environmental and governance matters, including human rights. These policies include: BNP Paribas Group Code of conduct; BNP Paribas and Human Rights (released in 2024); the BNP Paribas Sustainable Sourcing Charter; the BNP Paribas Asset Management Business Conduct Policy (updated in 2024); the BNP Paribas Responsible Business Principles. Early and efficient identification of modern slavery risks is the first step towards its prevention, alleviation and remediation, and calls for specific policies and practices. In this regard, BNP Paribas has taken the following steps and actions in order to exert its duty of care with all due seriousness. Towards its employees BNP Paribas is committed to providing a motivating working environment in which all employees are treated with fairly and with respect. In particular, the Group focuses on respect and the need to apply the most stringent norms of professional behaviour, and rejects all forms of discrimination. BNP Paribas’ policies and procedures notably include an annual review of high-risk countries in terms of human rights, as well as a monitoring of employees under the age of 18 (in 2024 the Group had only one such employee, aged 17 and working in the United Kingdom). In addition, the Group’s policies and procedures notably include a diversity and inclusion policy as well as fair remuneration principles (excluding any form of discrimination) at the time of recruitment and during employees’ tenure within the Group. In accordance with the Global Agreement concluded in 2024, the Group ensures that all its employees receive a decent wage(170). The BNP Paribas Code of conduct, which applies to all employees, reaffirms the Group’s commitment to changing behaviour. The Group’s “Respect for people” policy aims to combat inappropriate behaviour, in particular harassment and discrimination. Thus, every employee within the Group has to treat all individuals with respect, to ensure that interactions with them are professional, to listen and to consider their contributions, even if they express different opinions. In the wake of its 2018 commitments, taken with UNI Global Union and materialised in the Global Agreement(171), the Group renegotiated a new agreement that was signed in November 2024 for a period of 4 years. This agreement enables the Group to put in place an ambitious plan to help improve the quality of life and working conditions of all employees and, in so doing, to achieve greater equality and inclusive growth. Awareness and training BNP Paribas took part in the development of an awareness-raising e-learning module called “Human Rights into Business”, co-created with the other members of the French association Entreprises pour les Droits de l’Homme (Businesses for Human Rights – EDH). This e-learning module is mandatory for all employees who directly contribute to the promotion of human rights. It is available in eight languages and freely accessible to all Group employees. Raising concerns The Group pays particular attention to the concerns of customers, employees, shareholders, suppliers and society as a whole. The Group is committed to listening, understanding and seeking to respond to the concerns raised by its stakeholders in a fair and effective manner. BNP Paribas employees should report any effective or suspected breach of laws, regulations, the Code of conduct, Group policies or procedures. As part of the “Respect for people” policy aimed at preventing discrimination, harassment and violence at work, the Group has initiated several actions, including measures to inform and raise awareness among employees and managers, and to professionalise the Human Resources sector. Employees can report issues via a single and secure platform, the BNP Paribas Whistleblowing Platform, or, for alerts not in relation with the “Respect for people” policy, to their line manager. The framework implemented by BNP Paribas includes both prevention measures (the awareness-raising module “Diversity, Equality & Inclusion”, assignment of an annual objective relating to the Code of conduct, training of managers on their roles and duties, etc.) and remediation (disciplinary and accompanying measures, monitoring over time and protection against reprisals). Any violation or suspected violation of human rights in the context of the Group’s activities or its suppliers may be reported in the Group’s whistleblowing system, except if local regulations or procedures prevent this. Pursuant to 2016-1691 law of December 9, 2016 (“Sapin II law”), amended by 2022-401 law of March 21, 2022 (“Waserman law”), the Group’s whistleblowing system is open to the Group’s employees and external third parties through the BNP Paribas Whistleblowing Platform, which can be accessed on the intranet and BNP Paribas corporate website. The whistleblowing policy guarantees employees exercising their right to raise an alert protection against reprisal for having raised an internal alert, in accordance with the terms of the policy. A summary note(172) on whistleblowing is available on the BNP Paribas Group website. Towards its suppliers Within the Procurement & Performance Function, dedicated teams address ESG risks linked to suppliers and subcontractors through the following framework: a responsible purchasing policy that aligns the Function’s objectives with the Group’s CSR objectives, as expressed in the Group purpose; the definition by the Function of a normative reference framework. This framework includes: an ESG risk mapping tool encompassing 13 themes, including modern slavery and child labour, allowing the identification of procurement categories at high environmental or social risk, a Sustainable Sourcing Charter, setting out the reciprocal commitments of the Group and its suppliers and subcontractors from an environmental and social standpoint, This Charter commits suppliers to promote these principles towards their own suppliers and subcontractors and have them comply with these standards. The onboarding process of external suppliers includes the signing of this Charter. contractual clauses requiring compliance with the ILO conventions in supplier contract standard templates in all countries where suppliers are located, allowing contract termination in case of non-compliance by the suppliers of the Group ESG requirements, ESG questionnaire models, used during the onboarding of new suppliers and during calls for tenders, and including environment, ethics and human rights targeted questions. External ESG scorings can also be used as a complementary source of information. BNP Paribas Procurement Norms set a minimum weight of 15% for CSR-related criteria in calls for tenders, supplier monitoring rules, targeting ESG criteria used during the selection process and completed by the thematic regulatory watches and external ESG ratings, and training for employees of Procurement & Performance(173). Towards its clients (financing and investment activities) BNP Paribas strives to reduce potential violation of social and environmental rights, including human rights, from its financing and investment activities These provisions are based on: the development of financing and investment policies managing the Group’s activities in sectors with significant ESG issues; the respect of the United Nations Guiding Principles in the financing and investment activities; the respect of the Equator Principles for major industrial and infrastructure projects; the integration of ESG criteria in the Know Your Customer (KYC) process; the progressive integration of ESG criteria in lending and rating policies; the development and use of management and monitoring tools for these risks, including specific questionnaires for activities with salient environmental and social risks; the training of financing and investing business lines and control functions on the ESG risk framework; an operational control plan. In addition to the tools described above, an ESG Assessment framework has been deployed since 2021. It enables the identification, assessment and monitoring of the performance and ESG risks of corporate customers, in a sector-specific manner, with a common approach within the Group for a given customer segment. The ESG Assessment covers five major extra financial topics, including respect for human rights, and is used from the onboarding (as part of the KYC process) and throughout the business relationship. Implemented initially towards the Group’s large corporate clients, the ESG Assessment is also being gradually deployed towards corporate clients with a turnover exceeding EUR 50 million, and financial institutions. Assessing effectiveness Acknowledging the challenges of assessing and addressing modern slavery and human trafficking issues, BNP Paribas remains committed to the review and enhancement of its own processes and policies, in order to continually improve their range and effectiveness. For employee-targeted policies BNP Paribas tracks the effectiveness of its actions in this field through the number of employees who have received specific training on the respect of human rights in business practices. In 2024, more than 1,600 Group employees performed this training. For supplier-targeted policies The number of ESG assessments of suppliers and subcontractors carried out as part of onboarding is an indicator monitored by BNP Paribas for this category of stakeholders. In 2024, 5,214 ESG assessments were conducted (compared to 5,312 in 2023). Another indicator, the number of suppliers belonging to the Sensitive Suppliers List who have signed BNP Paribas’ Responsible Sourcing Charter, is also monitored. By the end of 2024, 2,007 suppliers had done so (compared with 1,287 at the end of 2023). For financing and investment activities The opening and maintenance of a high-quality dialogue between the Group and the entities it finances or in which it invests, plays an important role in monitoring and remedying certain issues, including those relating to human rights. The changes in exclusion and monitoring lists (i.e. the companies with which the Group does not wish to maintain commercial relations or invest in, or which are subject to increased monitoring, which may result from serious violations of human rights) is another indicator monitored by BNP Paribas. At the end of 2024, these lists numbered 2,703 legal entities (1,752 under exclusion and 951 under monitoring), against 1,718 at the end of 2023. Process of consultation for preparing this statement The information on this statement has been prepared thanks to the work and collaboration of relevant subject matter specialists, as well as members of the BNP Paribas CSR network, reaching through all functions, business lines and countries of the Group, where applicable. The Company Engagement Direction and the LEGAL Function have coordinated this collaborative process over the past year, and in particular have consulted the designated contacts and experts for the United Kingdom and Australia. Conclusion This statement has been used by BNP Paribas to establish the annual statements required by the Modern Slavery Act 2015 of the United Kingdom and Modern Slavery Act 2018 (Cth) of Australia. The annual statement can be found on the Publications page of the Group website(174) (https://group.bnpparibas/publications). This statement for the Group was approved by the Board of BNP Paribas SA as the parent entity on 25 February 2025. Jean-Laurent BONNAFÉ Director and Chief Executive Officer Jean LEMIERRE Chairman of the Board of directors 7.4SASB and TCFD standards The table below takes into account the codified standards of the Sustainability Accounting Standards Board (SASB) for the “Commercial Banking” category. It should be noted that the SASB standards present, at this stage, a “United States”-oriented approach to defining the criteria. This table best represents the information and data mapping according to the SASB indicators for Commercial & Personal Banking. Note that this mapping has not been audited. Domain SASB indicator SASB code of the indicator References of information and data available in the Universal registration document and the 2024 annual financial report Data security Description of the approach to identify and address data security risks FN-CB-230a.2 Chapter 2.4 Internal control: p123 to 133, in particular p131 “Management of risks related to information and communication technologies” and “Management of risks related to the protection of personal data” Chapter 5.9 Operational risk: p555-556 “Cybersecurity and technology” Financial inclusion and capacity building (1) Number and (2) amount of outstanding loans eligible for programmes to promote the development of small businesses and local authorities FN-CB-240a.1 Chapter 5.4 Credit risk: p405 table 25 “Gross credit risk exposure by asset class and approach” (1) Number and (2) amount of past due loans or loans with unrecognised interest eligible for programmes to promote small business and community development FN-CB-240a.2 Chapter 5.4 Credit risk: p405 table 25 “Gross credit risk exposure by asset class and approach type” Number of fee-free bank accounts opened for previously unbanked or under-banked individual customers FN-CB-240a.3 Chapter 7.1.1.2.A Strategy, business model and value chain: p692-693 “CSR management dashboards” and “2024 Results" Chapter 7.1.5.3.A Metrics and targets related to opportunities: p772 Number of participants in financial education initiatives for unbanked, underbanked or underserved customers FN-CB-240a.4 Incorporation of ESG factors in credit analysis Commercial and industrial credit exposure by industry FN-CB-410a.1 Chapter 5.4 Credit risk: p413 table 28 “Credit risk exposure by asset class and approach type” Description of the approach for integrating environmental, social and governance (ESG) factors into the credit analysis FN-CB-410a.2 Chapter 5.4 Credit risk: p376 “Credit risk management system – Consideration of social and environmental responsibility (CSR)” Chapter 5.11 Environmental, social and governance risk Chapter 5 appendix 5 Environmental, Social and Governance risk: p621 Chapter 7.1.1.1.D Due Diligence Approach: p688 Chapter 7.1.1.3 Material Impacts, Risks and Opportunities: p697 to 705 Corporate ethics Total amount of monetary losses resulting from legal proceedings related to fraud, insider trading, antitrust practices, anti-competitive behaviour, market manipulation, abusive practices or other financial industry laws or regulations FN-CB-510a.1 Chapter 4.6 Notes to the financial statements prepared in accordance with IFRS as adopted by the European Union: p294-295 Note 8.c “Legal and arbitration proceedings” Chapter 2.4 Internal control: p123 to 133, in particular p128-130 “Compliance”, p130 “Legal”, p131-132 “Risk and Permanent Control” and p132-133 “Periodic control” Description of whistleblower policies and procedures FN-CB-510a.2 Chapter 7.1.1.2.A Policies related to consumers and end-users: p766-767 Chapter 7.1.6.1.A Corporate culture and business conduct policies: The whistleblowing system: p777-778 Chapter 7.2.4.2 Whistleblowing framework: p892-893 Risk management system Global Systemically Important Bank (G-SIB) score, by category FN-CB-550a.1 Chapter 5.2 “Capital management and capital adequacy”: p383-384 “Requirements related to banking regulations and banking supervision” https://invest.bnpparibas/en/document/notification-by-the-ecb-of-the-2023-srep Chapter 5 Appendix 3: counter-cyclical capital buffer and G-SIB buffer p614 Description of the approach for integrating the results of mandatory and internal stress tests into capital adequacy planning, long-term organisational strategy and other operational activities FN-CB-550a.2 Chapter 5.2 “Capital management and capital adequacy” Chapter 5.3 Risk management: p396 to p404 in particular “Stress tests” Chapter 5.4 Credit risk: p411 “Stress tests – credit risk” Chapter 5.6 Counterparty risk: p502 “Stress tests and adverse correlation risk” Chapter 5.7 Market risk: p527 “Stress tests – market risk” Chapter 5.8 Liquidity risk: p537-538 “Stress tests and liquidity reserve” Activity metrics (1) Number and value (2) of loans by segment: a) retail customers and b) small businesses FN-CB-000.A Chapter 1.4 Presentation of operating divisions and business lines: p8 to p19 Chapter 6 Notes to the parent company financial statements: p649-650 note 3.b “Customer transactions” (1) Number and value (2) of loans by segment: a) retail customers, b) small business and c) corporate clients FN-CB-000.B Chapter 5.4 Credit risk: p460-461 table 48 “Performing and non-performing exposures and corresponding provisions (EU CR1)” TCFD cross-reference table TCFD recommendations BNP Paribas Sustainability statements Page Governance a) Board’s oversight of climate-related risks and opportunities 7.1.1.1.a. Role of administrative, management and supervisory bodies in sustainability 684 b) Management’s role in assessing and managing climate-related risks and opportunities 7.1.1.1.a. Role of administrative, management and supervisory bodies in sustainability 7.1.1.1.b. Integration of sustainability-related performance in incentive schemes 684 688 Strategy a) Climate-related risks and opportunities the organisation has identified over the short, medium, and long term 7.1.1.3. Material impacts, risks and opportunities 7.1.1.3.a. Description of the processes to identify and assess material impacts, risks and opportunities 7.1.1.3.b. Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.2.1.b. Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.2.1.c. Description of the resilience of the Group’s strategy and business model to climate risks 697 699 702 710 711 b) Impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning 7.1.1.3.a. Description of the processes to identify and assess material impacts, risks and opportunities 7.1.1.3.b. Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.2.1.a. Transition plan for climate mitigation 7.1.2.1.b. Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.2.1.c. Description of the resilience of the Group’s strategy and business model to climate risks 7.1.2.2.a. Policies related to climate change mitigation and adaptation 7.1.2.2.b. Synthesis of actions related to climate change policies 7.1.2.2.c. Actions related to the management of climate impacts and risks 7.1.2.2.d. Group actions related to climate change opportunities 7.1.2.2.e. Resources dedicated to the transition 7.1.2.3.a. Group’s metrics and targets related to its impact on climate change 7.1.2.3.b. Group's metrics and targets related to its climate change opportunities 699 702 706 706 710 714 716 716 719 720 721 725 c) Resilience of the organisation’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario 7.1.1.3.a. Description of the process to identify and assess material impacts, risks and opportunities 7.1.1.3.b. Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.2.1.b. Material impacts, risks and opportunities and their interaction with strategy and business model 7.1.2.1.c. Description of the resilience of the Group’s strategy and business model to climate risks 699 702 710 711 Risk management a) Organisation’s processes for identifying and assessing climate-related risks 7.1.1.3. Material impacts, risks and opportunities 7.1.1.3.a. Description of the process to identify and assess material impacts, risks and opportunities 697 699 b) Organisation’s processes for managing climate-related risks 7.1.2.2.a. Policies related to climate change mitigation and adaptation 7.1.2.2.b. Synthesis of actions related to climate change policies 7.1.2.2.c. Actions related to the management of climate impacts and risks 7.1.2.2.d. Group actions related to climate change opportunities 7.1.2.2.e. Resources dedicated to the transition 7.1.2.3.a. Group’s metrics and targets related to its impact on climate change 7.1.2.3.b. Group’s metrics and targets related to its climate change opportunities 714 716 716 719 720 721 725 c) How processes for identifying, assessing, and managing climate-related risks are integrated into the organisation’s overall risk management 7.1.1.1.c. Risk management and internal controls over sustainability reporting 7.1.1.3. Material impacts, risks and opportunities 688 697 Metrics and targets a) Metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process 7.1.2.2.b. Synthesis of actions related to climate change policies 7.1.2.2.c. Actions related to the management of climate impacts and risks 7.1.2.2.d. Group actions related to climate change opportunities 7.1.2.2.e. Resources dedicated to the transition 7.1.2.3.d. Gross greenhouse gas emissions 7.1.2.3.e. Greenhouse gas removal and mitigation projects, financed through carbon credits 716 716 719 720 726 730 b) Scope 1, scope 2, and scope 3 greenhouse gas (GHG) emissions, and the related risks 7.1.2.3.d. Gross greenhouse gas emissions 726 c) Targets used by the organisation to manage climate-related risks and opportunities and performance against targets 7.1.2.3.a. Group’s metrics and targets related to its impact on climate change 7.1.2.3.b. Group’s metrics and targets related to its climate change opportunities 721 725 (1) https://group.bnpparibas/en/group/our-businesses-and-expertise/corporate-institutional-banking (2) https://group.bnpparibas/en/group/our-businesses-and-expertise/commercial-personal-banking-services (3) https://group.bnpparibas/en/group/our-businesses-and-expertise/investment-protection-services (4) According to the ESRS sectors defined by the DRAFT of the European ESRS SEC 1 standard published on 12 September 2024 by EFRAG. (5) “Sustainable Finance Disclosure Regulation”: European regulation on sustainability-related disclosures in the financial services sector, which came into force in March 2021, which imposes transparency obligations on sustainable investment funds; Article 8 funds: products promoting environmental or social characteristics; “Article 9” funds: products with a sustainable investment objective. (6) https://cdn-group.bnpparibas.com/uploads/file/BNP_Paribas_environmental_framework_2024.pdf (7) Examples: implementation of practices that are more respectful of biodiversity upstream in the supply chains of agricultural commodities, increase in the share of agricultural commodities that do not contribute to deforestation, rehabilitation of quarries after exploitation, etc. (8) Computed with a location-based approach (9) Dealogic 2024: total of sustainable, green and social bonds, sustainability-linked bond as well as green and social loans, ESG-linked loans, sustainability-linked loans. (10) Still including the post-Brexit UK. (11) European Federation of Credit and Financial Institutions Executives. (12) In line with the 10 principles of the Global Compact and 17 United Nations Sustainable Development Goals, the United Nations Guiding Principles on Business and Human Rights (UNGPs), OECD guidelines, internationally accepted human rights standards as defined in the International Bill of Human Rights and the International Labour Organization’s (ILO) core labour conventions on the principles and fundamental labour rights. (13) Correspondence tables between the different Risk ID parameters make it possible to map risk events to one or more ESG topics, without double counting. (14) RCP (Representative Concentration Pathway): greenhouse gas emission scenarios used by the Intergovernmental Panel on Climate Change (IPCC) to determine possible climate changes. (15) SSP (Share Socio-economic Pathways): socio-economic declination of the IPCC’s RCP scenarios. (16) ICAAP (Internal Capital Adequacy Assessment Process): a capital requirement banking exercise. (17) European Central Bank. (18) European Banking Authority. (19) https://www.efrag.org/sites/default/files/sites/webpublishing/SiteAssets/Explanations%20December%202024.pdf. (20) According to Dealogic's Sustainable Finance review of 2024. (21) https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32020R1818 (22) Risk & Development Policy Committee. (23) The statement, in written form, of the overall level and types of risks that a financial institution is willing to accept or avoid to achieve its business objectives. (24) Physical climate risks include the direct consequences of climatic hazards, e.g. floods, storms, etc. (25) Energy Performance Certificate. (26) General equilibrium models consider all elements (markets, sectors) simultaneously. They aim to understand how the decisions of individuals, businesses, and governments influence each other and how these interactions determine prices, quantities, and the allocation of resources in the economy. (27) Representative Concentration Pathway are climate change scenarios used by the Intergovernmental Panel on Climate Change (IPCC). RCP scenarios are four reference scenarios for the evolution of radiative forcing up to 2100. RCP 8.5 scenario represents a trajectory where GHG emissions continue to increase throughout the 21st century, leading to a significant increase in the concentration of CO2 in the atmosphere and a rise in global temperatures of more than 4°C by 2100. RCP 8.5 is the most pessimistic scenario, while RCP 2.6 predicts warming below 2°C in 2100. (28) The NGFS (Network for Greening the Financial System) develops scenarios aligned with global warming trajectories based on the integrated assessment model “IAM REMIND”: IAM simulates climate policy scenarios and studies their impact on society and the environment, REMIND explores how climate objectives could be achieved. (29) International Swaps and Derivatives Association. (30) https://www.isda.org/a/YHlgE/Climate-Scenario-Analysis-in-the-Trading-Book-%E2%80%93-Phase-II.pdf (31) https://asset.mediahub.bnpparibas/is/content/bnpparibas/2023_PandP_Charte_Achats_Responsables_En (32) According to Dealogic’s 2024 Sustainable Finance Review. (33) IEA: International Energy Agency. (34) RBL: Reserve-Based Lending. (35) FPSO: Floating Production, Storage and Offloading. (36) kWh: kilowatt-hour. (37) Electrified vehicles: plug-in hybrid vehicles, battery electric vehicles, fuel cell vehicles. (38) Worldwide harmonized Light vehicles Test Procedure. (39) Clinker is an essential component in the manufacture of cement. It is produced by firing a mixture of limestone and clay at high temperatures in a kiln. (40) Revenue Tonne Kilometre: unit of traffic measurement corresponding to one metric tonne of payload carried one kilometre. (41) Deadweight ton times nautical miles. (42) The process of replacing old or obsolete components with newer ones by changing the technology without changing the function. (43) For BNP Paribas, the definition of sustainable agricultural practices includes, among others, organic farming, soil conservation agriculture, agroecology, regenerative agriculture. (44) Gigawatt-hours. (45) Market-based method: This approach reflects the GHG emissions of the electricity that the company has chosen on the market. This means that scope 2 carbon emissions will depend on the scope 1 carbon intensity of the electricity provider. (46) Location-based method: This approach uses the average emission factor of the region or country where the electricity is consumed. For example, if the electricity consumption is in France, the company can use the emission intensity of the French energy mix, which is mainly nuclear. (47) Intergovernmental Panel on Climate Change. (48) The World Business Council for Sustainable Development. (49) Professional activities emit other greenhouse gases such as CO2, CH4, N2O and fluorinated gases. (50) Computed with a location-based approach. (51) Sustainable Finance Disclosure Regulation. (52) Article 29 – Law No. 2019-1147 of 8 November 2019 on energy and climate. (53) High Quality Liquidity Assets. (54) Climate Change Mitigation, Climate Change Adaptation, sustainable use and protection of Water and Marine Resources, transition to a Circular Economy, Pollution prevention and control, Protection & restoration of Biodiversity & Ecosystems. (55) Regulation (EU) 2020/852 of 18 June 2020, Delegated Regulation (EU) 2021/2139 of 4 June 2021, Delegated Regulation (EU) 2021/2178 of 6 July 2021, Delegated Regulation (EU) 2022/1214 of 9 March 2022, Delegated Regulation (EU) 2023/2486 of 27 June 2023, Delegated Regulation (EU) 2023/2485 of 27 June 2023 amending Delegated Regulation (EU) 2021/2139. (56) Regulation (EU) 2020/852 of 18 June 2020. (57) Commission notice of European Commission of 8 November 2024. (58) Non-Financial Reporting Directive 2014/95/EU of 22 October 2014. (59) Commission notice of European Commission of 8 November 2024. (60) Approach based on the technical screening criteria applicable to retail clients, as described by Annex V to Delegated Regulation (EU) 2021/2178 (61) The four other environmental objectives are Sustainable use and protection of Water and Marine Resources, transition to a Circular Economy, Pollution prevention and control, Protection & restoration of Biodiversity & Ecosystems. (62) https://invest.bnpparibas/en/document/aligned-activities-under-the-meaning-of-the-european-taxonomy-2024 (63) As described in Annex 2 of the Commission Implementing Regulation UE 2022/2453 of 30 November 2022, template 7 Mitigation actions: assets for the calculation of the GAR. (64) Share of women in the SMP (Senior Management Position) population, Number of solidarity hours performed by employees over 2 rolling years and share of employees who completed at least four training courses during the year. (65) The ILO Fundamental Conventions are as follows: C029 – Forced Labour Convention, 1930 (No. 29); C087 – Freedom of Association and Protection of the Right to Organise Convention, 1948 (No. 87); C098 – Right to Organise and Collective Bargaining Convention, 1949 (No. 98); C100 – Equal Remuneration Convention, 1951 (No. 100); C105 – Abolition of Forced Labour Convention, 1957 (No. 105); C111 – Discrimination (Employment and Occupation) Convention, 1958 (No. 111); C138 – Minimum Age Convention, 1973 (No. 138); C155 – Occupational Safety and Health Convention, 1981 (No. 155); C182 – Worst Forms of Child Labour Convention, 1999 (No. 182); C187 – Promotional Framework for Occupational Safety and Health Convention, 2006 (No. 187). (66) Including the interest of clients, financial security, market integrity, conflicts of interest, professional ethics, respect for persons, protection of the Group, commitment to society, and the fight against corruption and influence peddling. (67) Signed in 2018 and a new agreement signed in 2024. (68) For more information on this system, see section 2.c Processes to remediate negative impacts and channels for own workers to raise concerns in this chapter. (69) For more information, see section 3.j Health and safety metrics in this chapter. (70) Of the Social Reporting. (71) For more information on reporting channels and support measures, see section 2.c Processes to remediate negative impacts and channels for own workers to raise concerns in this chapter. (72) For more information on the content of this agreement and its implementation within the Group, see in particular sections 2.a Policies related to own workforce and 2.d Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions in this chapter. (73) For more information on this topic, see chapter 7.1.6 Business conduct, section 1.a Corporate culture and business conduct policies. (74) For more information on this topic, see chapter 7.1.6 Business conduct, section 1.a Corporate culture and business conduct policies. (75) Group survey conducted every 2 years among all Group employees: employees on permanent contracts for more than 3 months, 175,000 employees surveyed in 2023 and more than 90,000 respondents. (76) Of the Social Reporting. (77) Five Management Principles: the manager federates and gives meaning, is customer-oriented, promotes inclusion and respect for the Code of conduct, supports and empowers in awareness of the risks and promotes transversality and agility. (78) HRBP: Human Resources Business Partner, HR Manager, Individual HR Manager or local equivalents. (79) Based on data collected from local HR experts in charge of social protection issues, covering 95% of the Group’s total headcounts. (80) Based on data collected from local HR experts in charge of social protection issues, covering 95% of the Group’s total headcounts. (81) Examples: Ukraine, New Caledonia. (82) Of the Social Reporting. (83) Of the Social Reporting. (84) Of the Social Reporting. (85) Of the Social Reporting. (86) Within the scope of BNP Paribas SA. (87) Of the Social Reporting. (88) For more information, see section 3.a Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities in this chapter. (89) The G100 brings together around a hundred people, corporate officers and senior executives holding key responsibilities within the Group. The members of the G100 include, among others, heads of divisions, main business lines, commercial banking networks, Group functions, geographies and strategic countries in which the Group operates. (90) ExCo: Group Executive Committee. (91) The Group’s Senior Management Position (SMP) population is made up of employees holding approximately 3,000 positions considered to have the greatest impact from a strategic, commercial, functional and expertise perspective. (92) The Leaders for Change (LfC) population is made up of the members of the main Group-level cross-functional Executive Committees considered to make a major contribution to its functioning and developments. See the paragraph Development programmes dedicated to the Group’s Leaders and Talents in this section. (93) 54% are women among the non-managerial population. (94) Volontariat International en Entreprise: International Volunteering in Business is a French type of contract, carried outside of France. (95) Talents (Leaders for Tomorrow or LfT) are identified as part of an initiative launched at the end of 2015 to develop them and prepare them to take over the members of the transversal Executive Committees across the Group’s businesses, functions and regions (LfC). There are nearly 7,000 of them in 3 categories (Emerging, Advanced or Top), and are selected according to a rigorous Group process by their managers and HR on the basis of their skills, experiences, sources of motivation and personal predispositions as well as personal attributes (“Leadership Profile”), which the Group considers necessary to become leaders. (96) With nearly 25,000 people at Group level. (97) For more information on the monitoring of employee training and skills development activities, see section 3.i Training and skills development metrics in this chapter. (98) Employees eligible for an annual performance review are only employees on permanent contracts who joined the Group before 30 June of the year (recruited before this date). Those recruited after this date will be reviewed in the following period. (99) A transversal mobility is an inter-entity or inter-business Group internal mobility. (100) This has been included in the commitments to social and environmental responsibility in the new Global Agreement. (101) Fresks of Climate, Biodiversity, Circular Economy, Mobility and 2tonnes Workshop. (102) As such, in 2024, more than 9,000 of the Group’s key employees (SMP, Talents or local key resources) have benefited from an allocation under this plan. (103) For employees subject to provisions and special regulatory provisions, this loyalty plan is adapted in accordance with the requirements of the European CRD Directive. (104) SMP, LfC, G100, ExCo. (105) For more information on the development of the strategic plan, see chapter 7.1.1 General disclosures, section 2.a Strategy business model and value chain.. (106) Leavers correspond to employees (in physical headcounts and PTC only) who have left the Group during the year. (107) Data collected by the Group Finance teams in FTE at the end of the period. (108) European Federation of Credit and Financial Institutions Executives. (109) Including the United Kingdom. (110) Only the fixed remuneration for full-time equivalent working time (excluding overtime). (111) The adequate wage is calculated on a basis covering approximately 96% of the Group’s employees. The remuneration considered concerns the fixed remuneration. (112) Based on data collected on state schemes by an external service provider covering 95% of the Group’s employees and data collected from local HR experts in charge of social protection issues, in particular for corporate schemes. (113) A disability, according to the French definition (Law No. 2005-102 of 11/02/2005 and article L.114 of the Code of Social Action and Families) or any comparable definition according to the local legislation applicable outside France, is any limitation of activity or restriction of participation in life in society suffered in their environment by a person due to a substantial alteration, of one or more physical, sensory, mental, cognitive or psychological functions, a multiple disability or a disabling health disorder. Data collected in the Social Reporting campaign covering 95% of the Group's employees in FTE as of 31/12/2024. (114) Employees in Permanent Term contract (PTC) who joined the Group before 01/07/2024, present at 31/12/2024, and using the About Me Group tool to evaluate their performance. In relation to the headcount reported in section 3.b in this chapter, the percentage of employees who participated in a performance evaluation represents 84% of Group employees. (115) Data collected in the Social Reporting campaign, which covers 95% of the Group’s employees in FTE as of 31/12/2024. (116) Interdepartmental Regional Directorate for the Economy, Employment, Labour and Solidarity. (117) The absenteeism rate does not include maternity, paternity, adoption and parental leave. (118) The term neurodivergence refers to neurological functioning that differs from the norm. (119) Of the Social Reporting. (120) The gender pay gap is calculated on a basis covering approximately 96% of the Group’s employees. The remuneration taken into account concerns the 2024 gross annual fixed remuneration as well as the gross variable remuneration awarded at the beginning of 2024 for 2023 performance. (121) Increases and promotions awarded in 2024 on a basis covering approximately 93% of Group employees who joined before 01/01/2023. (122) The ratio of the total annual remuneration of the highest earner to the median total annual remuneration of all employees (excluding the highest earner). The median remuneration is calculated on a basis covering approximately 96% of the Group's employees. The remuneration considered concerns the 2024 gross annual fixed remuneration as well as the gross annual variable remuneration awarded at the beginning of 2024 for 2023 performance. (123) The areas covered by the “Respect for Persons” are in particular acts contrary to the principle of non-discrimination, acts constituting moral or sexual harassment, sexist behaviour, sexual touching, rape, assaults, non-compliance with safety rules. (124) These countries cover nearly 80% of the countries for which “Respect for Persons” alerts have been raised in 2024. (125) The data privacy protection is a synonym of the personal data protection. (126) https://secure.ethicspoint.eu/domain/media/en/gui/110837/index.html (127) https://group.bnpparibas/en/data-protection (128) The concept of “need-to-know” is an information security principle that states that access to certain sensitive information should be limited only to the persons who need it to perform their specific tasks. (129) https://nickel.eu/fr/communique-presse/premier-rapport-dimpact (in French) (130) https://cdn-group.bnpparibas.com/uploads/file/220204_bnpp_compliance_codeofconduct_2022_eng.pdf (131) https://cdn-group.bnpparibas.com/uploads/file/bnpparibas_compliance_code_of_tax_conduct_2023.pdf (132) https://secure.ethicspoint.eu/domain/media/en/gui/110837/index.html (133) https://cdn-group.bnpparibas.com/uploads/file/declaration_zero_tolerance_jan_2022_en.pdf (134) https://cdn-group.bnpparibas.com/uploads/file/exec_summary_bnpp_gi_procedure_v_en_review_ep_june_2024.pdf (135) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1). (136) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation “CRR”) (OJ L 176, 27.6.2013, p. 1). (137) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No 596/2014 (OJ L 171, 29.6.2016, p. 1). (138) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (“European Climate Law”) (OJ L 243, 9.7.2021, p. 1). (139) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided and published (OJ L 406, 3.12.2020, p. 1). (140) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in Implementing Regulation (EU) 2021/637 as regards the disclosure of Environmental, social and governance risks (OJ L 324,19.12.2022, p. 1). (141) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17). (142) Low-carbon energies including electricity from renewable and nuclear sources. The scope of low-carbon energies could evolve according to technological progress to gradually go beyond the production of energy and include other steps in the value chain such as transport, storage or distribution of low-carbon energy. (143) https://cdn-group.bnpparibas.com/uploads/file/bnp_paribas_2023_prb_reporting.pdf. (144) https://cdn-group.bnpparibas.com/uploads/file/BNP_Paribas_environmental_framework_2024.pdf (145) https://group.bnpparibas/uploads/file/biodiversity_position_2021.pdf. (146) https://cdn-group.bnpparibas.com/uploads/file/220131_bnpp_compliance_codeofconduct_2022_fr.pdf including customer interests, financial security, market integrity, conflicts of interest, professional ethics, respect for colleagues, protection of the Group, commitment to society, and the fight against corruption and influence peddling. (147) https://cdn-group.bnpparibas.com/uploads/file/bnpparibas_and_human_rights.pdf (148) https://cdn-group.bnpparibas.com/uploads/file/agreement_on_the_fundamental_rights_and_global_social_floor_of_the_bnp_paribas_group.pdf (149) Production purchases correspond to purchases of goods and services specific to a commercial activity (for example, purchases of Arval vehicles), as opposed to non-production purchases. (150) https://group.bnpparibas/en/our-commitments/transitions/financing-and-investment-policies. (151) Preliminary data available as of 31 January 2025. (152) https://cdn-group.bnpparibas.com/uploads/file/summary_of_global_policy_framework_of_bnp_paribas_pic_veng_nov_2021_1.pdf. (153) https://group.bnpparibas/uploads/file/bnpp_responsible_business_principles_ven.pdf. (154) BNP Paribas Asset Management Global Sustainability Strategy 2023-2025, https://doc finder.bnpparibas-am.com/api/files/4b10d1ad-901d-4bbe-8a7c-007ad48c450e. (155) https://www.collectif-economie-plus-inclusive.fr. (156) The situation of financial vulnerability is assessed on the basis of criteria defined by the regulations (articles L.312-1-3 and R.312-4-3 of the French Monetary and Financial Code) based on events of which BNP Paribas is aware. (157) https://group.bnpparibas/en/our-commitments/transitions/financing-and-investment-policies. (158) https://cdn-group.bnpparibas.com/uploads/file/bnpparibas_csr_exclusion_list.pdf. (159) Renewable energy, including wind and marine energy, photovoltaic solar energy, concentrated solar energy, hydroelectricity, geothermal energy, bioenergy (including biofuels except for first generation);Low-carbon energies including electricity from renewable and nuclear sources. The scope of low-carbon energies could evolve according to technological progress to gradually go beyond the production of energy and include other steps in the value chain such as transport, storage or distribution of low-carbon energy. (160) https://cdn-group.bnpparibas.com/uploads/file/bnpparibas_csr_sector_policy_agriculture.pdf (161) https://cdn-group.bnpparibas.com/uploads/file/charter_representation_bnpp_uk_july2022.pdf (162) https://group.bnpparibas/en/direct-access/whistleblowing. (163) Covering 90% of all Group employees at 31 December 2024. (164) Cardif Assurance Vie: https://www.bnpparibascardif.com/c/document_library/get_file?uuid=6c1e7eaa-e4d8-002d-d1c5-6ddc6c6c66de&groupId=348001.Cardif Assurance Retraite: https://www.bnpparibascardif.com/c/document_library/get_file?uuid=1fb5d935-f1d5-85eb-8a6b-83fee0aece39&groupId=348001. BNP Paribas Asset Management: https://docfinder.bnpparibas-am.com/api/files/d7877194-bc40-44ed-afa9-57bc17c81a01.Real Estate Investment Management: BNP-Paribas-REIM_ESG-report-2023_VFINAL-Web.pdf. (165) https://docfinder.bnpparibas-am.com/api/files/5a588f17-f044-4b52-bd2c-9d4921b08bad (166) “Recruitment, transportation, transfer, harbouring or receipt of persons, by means of the threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation”, United Nations Convention against Transnational Organized Crime. (167) “Slavery is the status or condition of a person over whom any or all of the powers attaching to the right of ownership are exercised.” United Nations Convention on Slavery. (168) Arval, BNP Paribas Leasing Solutions, BNP Paribas Personal Finance, BNP Paribas Investors, new digital business lines (Nickel, Floa, Lyf). (169) “Production expenses” refer to purchases of goods and services specific to a commercial activity. (170) The Group defines decent wage as the adequate wage level to cover the basic needs of an employee and his or her family, in particular in terms of housing, food, health, education, transport, means of communication and precautionary savings. To this end, BNP Paribas relies on a leading organisation in this field, the Fair Wage Network, which has been active on decent wages issues since 2009. The decent wage is calculated on the basis of the individual compensation data managed in the Group tool and covers approximately 175,000 employees present in the Group as at 30/09/2024.Only fixed remuneration is taken into account. (171) In September 2018, BNP Paribas signed a comprehensive and ambitious agreement with UNI Global Union, the International Trade Union Federation of the Services Sector. With this agreement, BNP Paribas committed to the strengthening of fundamental rights at work and the establishment of a common global social foundation for its employees, on the following main themes: Human rights, social dialogue and trade union rights; Social and environmental responsibility; Employment and skills management; Gender equality; Promotion of diversity and inclusion; Prevention and fight against moral and sexual harassment; Health and quality of working life. (172) Summary of the system – BNP Paribas’whistleblowing procedure (https://cdn-group.bnpparibas.com/uploads/file/2024_09_summary_of_bnp_paribas_wb_framework.pdf). . (173) In the process of being rolled out for the Australian Purchasing function. (174) BNP Paribas also publishes its statement on modern slavery and human trafficking on the Modern slavery statement registry, a platform run by the British government. General information 8.1Documents on display 8.2Material contracts 8.3Dependence on external parties 8.4Significant changes 8.5Investments 8.6Information on locations and businesses in 2024 8.7Founding documents and Articles of Association 8.8Statutory auditors’ report on related party agreements 8.9Person responsible for auditing the financial statements 8.10Person responsible for the Universal registration document 8.1Documents on display This document is available on the BNP Paribas website, https://invest.bnpparibas/en/, and the Autorité des Marchés Financiers (AMF) website, https://www.amf-france.org/en. Any person wishing to receive additional information about the BNP Paribas Group can request documents, without commitment, as follows: by writing to: BNP Paribas – Finance & Strategy Investor Relations and Financial Information Palais du Hanovre 16 rue de Hanovre – CAT03B2 75002 Paris FRANCE by calling: +33 (0)1 40 14 63 58 BNP Paribas’ regulatory information can be viewed at: https://invest.bnpparibas.com/en/regulated-information. Head office: 16, boulevard des Italiens, 75009 Paris, France Legal form: BNP Paribas is a limited company authorised as a bank under the provisions of the French Monetary and Financial Code (Book V, Title 1) on banking institutions. Legal identity identifier: R0MUWSFPU8MPRO8K5P83 Law governing its activities: BNP Paribas is a company incorporated under French law and operates in many countries, both in Europe and outside Europe. Many foreign regulations can therefore govern its activities. Country of origin: France 8.2Material contracts To date, BNP Paribas has not entered into any material contracts – other than those entered into during the normal course of business – that create an obligation or commitment for the entire Group. 8.3Dependence on external parties To date, BNP Paribas is not dependent on external parties. 8.4Significant changes There have been no significant changes in the Group’s financial or business situation since the end of the last financial year for which audited financial statements were published, and in particular since the signature of the Statutory Auditors’ report on the consolidated financial statements on 20 March 2025. 8.5Investments Investments since 1 January 2022 that are individually valued at over EUR 500 million and considered material at Group level are as follows: Country Announcement date Transaction Transaction amount Comments France 21 December 2024 Signing by BNP Paribas Cardif and AXA of the Share Purchase Agreement for the acquisition by BNP Paribas Cardif of 100% of AXA IM and a long-term partnership to manage a large part of AXA’s assets. With the combined contribution of BNP Paribas’ asset management platforms, the newly formed business would become a European leader in the management of long-term savings for insurers and pension funds, with a total amount of c. €1,500bn of assets under management, of which €850bn assets from long-term savings €5.1bn Subject to approvals from relevant authorities France 14 April 2024 Acquisition by BNP Paribas Group, through its insurance subsidiary BNP Paribas Cardif, of Fosun Group’s stake of 17 million shares in Ageas, complemented by subsequent market acquisition of 4.5 million Ageas shares Fosun: c. €730m Market: Not public Spain n.c. Acquisition by Banco Cetelem of Orange Bank in Spain of a portfolio of loans for the financing of mobile devices Not public In parallel of the takeover of Orange Bank’s business in Spain Canada 16 December 2022 Participation of BNP Paribas SA in a capital increase organised via a private placement by Bank of Montreal, in the amount of CAD 750 million for a price of CAD 118.60 per share CAD 750m In connection with the acquisition of Bank of the West by BMO Financial Group. Disposal in 2023 8.6Information on locations and businesses in 2024 In accordance with article L.511-45 of the French Monetary and Financial Code and Decree No. 2014-1657 of 29 December 2014, credit institutions, financial holding companies, mixed financial holding companies and investment firms are obliged to disclose information about their locations and activities, included in their scope of consolidation, in each State or territory. I.Locations by Country Locations Business 1. European Union member States Austria Arval Austria GmbH Arval BNPP Asset Management Europe (Austria branch) (Ex- BNPP Asset Management France (Austria branch)) Asset Management BNPP Leasing Solutions GmbH Leasing Solutions BNPP Personal Finance (Austria branch) Personal Finance BNPP SA (Austria branch) Corporate and Institutional Banking Cardif Assurance Vie (Austria branch) Insurance Cardif Assurances Risques Divers (Austria branch) Insurance CNH Industrial Capital Europe GmbH Leasing Solutions Stellantis Bank SA (Austria branch) Personal Finance Belgium AG Insurance Insurance Alpha Crédit SA Personal Finance Arval Belgium NV SA Arval Astridplaza Insurance Axepta BNPP Benelux Retail Banking Bancontact Paytoniq Company Retail Banking BASS Master Issuer NV Retail Banking Batopin Retail Banking Belgian Mobile ID Retail Banking BNPP 3 Step IT (Belgium branch) Leasing Solutions BNPP Asset Management Be Holding Asset Management BNPP Asset Management Europe (Belgium branch) (Ex- BNPP Asset Management France (Belgium branch)) Asset Management BNPP B Institutional II Asset Management BNPP Fortis Retail Banking BNPP Fortis Factor NV Retail Banking BNPP Fortis Film Finance Retail Banking BNPP FPE Belgium Retail Banking BNPP FPE Management Retail Banking BNPP Lease Group Belgium Leasing Solutions BNPP Partners for Innovation Belgium Property Companies (Property used in operations) and Others BNPP Real Estate Belgium SA Real Estate Services BNPP SA (Belgium branch) Corporate and Institutional Banking BNPPF Credit Brokers (Ex- Demetris NV) Retail Banking Cardif Assurance Vie (Belgium branch) Insurance Cardif Assurances Risques Divers (Belgium branch) Insurance CNH Industrial Capital Europe (Belgium branch) Leasing Solutions Credissimo Retail Banking Credissimo Hainaut SA Retail Banking Crédit pour Habitations Sociales Retail Banking Eos Aremas Belgium SA NV Personal Finance Epimede Retail Banking ES Finance Leasing Solutions Esmee Master Issuer Retail Banking Financière des Paiements Électroniques (Belgium branch) New Digital Businesses FL Zeebrugge Leasing Solutions Fortis Lease Belgium Leasing Solutions FScholen Corporate and Institutional Banking Gambit Financial Solutions Asset Management Immobilière Sauveniere SA Retail Banking Isabel SA NV Retail Banking Locadif Arval Microstart Retail Banking Private Equity Investments (a) Retail Banking Sagip Retail Banking Sowo Invest SA NV Retail Banking Terberg Leasing Justlease Belgium BV Arval Bulgaria BNPP SA (Bulgaria branch) Corporate and Institutional Banking Cardif Assurance Vie (Bulgaria branch) Insurance Cardif Assurances Risques Divers (Bulgaria branch) Insurance Czech Republic Arval CZ SRO Arval BNPP Cardif Pojistovna AS Insurance BNPP Cardif Services SRO Insurance BNPP Personal Finance (Czech Republic branch) Personal Finance BNPP SA (Czech Republic branch) Corporate and Institutional Banking Denmark Arval AS Arval BNPP Cardif Livforsakring AB (Denmark branch) Insurance BNPP Factor AS Retail Banking BNPP Leasing Solutions AS Leasing Solutions BNPP SA (Denmark branch) Corporate and Institutional Banking Cardif Forsakring AB (Denmark branch) Insurance Ekspres Bank AS Personal Finance Finland Arval OY Arval BNPP SA (Finland branch) Corporate and Institutional Banking France 2SF - Société des Services Fiduciaires Retail Banking AEW Immocommercial Insurance Agathe Retail France Insurance Antin Participation 5 Property Companies (Property used in operations) and Others Aprolis Finance Leasing Solutions Artegy Leasing Solutions Arval Fleet Services Arval Arval Service Lease Arval Arval Trading Arval Autonoria DE 2023 Personal Finance Axa Banque Financement Personal Finance Banque de Wallis et Futuna Retail Banking Becquerel Insurance BNP Paribas SA Banking BNPP 3 Step IT Leasing Solutions BNPP Actions Croissance ISR Insurance BNPP Actions Euro ISR Insurance BNPP Actions Monde ISR Insurance BNPP Actions Patrimoine ISR Insurance BNPP Agility Fund Equity SLP Asset Management BNPP Agility Fund Private Debt SLP Asset Management BNPP AM International Hedged Strategies Asset Management BNPP Antilles Guyane Retail Banking BNPP Aqua Insurance BNPP Asset Management Europe (Ex- BNPP Asset Management France) Asset Management BNPP Asset Management Holding Asset Management BNPP Best Selection Actions Euro ISR Insurance BNPP Cardif Insurance BNPP Convictions Insurance BNPP Dealing Services Asset Management BNPP Développement Retail Banking BNPP Développement Humain Insurance BNPP Développement Oblig Retail Banking BNPP Diversipierre Insurance BNPP Euro Climate Aligned Insurance BNPP Factor Retail Banking BNPP Financial Markets Corporate and Institutional Banking BNPP France Crédit Insurance BNPP Global Senior Corporate Loans Insurance BNPP Home Loan SFH Property Companies (Property used in operations) and Others BNPP Immobilier Promotion Real Estate Services BNPP Immobilier Résidences Services Real Estate Services BNPP Indice Amérique du Nord Insurance BNPP Indice France ESG Insurance BNPP Infrastructure Investments Fund Insurance BNPP IRB Participations Europe-Mediterranean BNPP Lease Group Leasing Solutions BNPP Nouvelle-Calédonie Retail Banking BNPP Obliselect Euro Dec 2028 Insurance BNPP Partners for Innovation Property Companies (Property used in operations) and Others BNPP Partners For Innovation Global Connect Property Companies (Property used in operations) and Others BNPP Personal Finance Personal Finance BNPP Procurement Tech Property Companies (Property used in operations) and Others BNPP Public Sector SA Property Companies (Property used in operations) and Others BNPP Real Estate Real Estate Services BNPP Real Estate Conseil Habitation & Hospitality Real Estate Services BNPP Real Estate Consult France Real Estate Services BNPP Real Estate Financial Partner Real Estate Services BNPP Real Estate Investment Management France Real Estate Services BNPP Real Estate Property Management France SAS Real Estate Services BNPP Real Estate Transaction France Real Estate Services BNPP Real Estate Valuation France Real Estate Services BNPP Réunion Retail Banking BNPP Select Asset Management BNPP Sélection Dynamique Monde Insurance BNPP Selection Patrimoine Responsable Insurance BNPP Smallcap Euroland ISR Insurance BNPP Social Business France Insurance C Santé Insurance Cafineo Personal Finance Capital France Hotel Insurance Cardif Alternatives Part I Insurance Cardif Assurance Vie Insurance Cardif Assurances Risques Divers Insurance Cardif BNPP AM Emerging Bond Insurance Cardif BNPP AM Euro Paris Climate Aligned Insurance Cardif BNPP AM Global Environmental Equity Insurance Cardif BNPP AM Sustainable Euro Equity Insurance Cardif BNPP AM Sustainable Europe Equity Insurance Cardif BNPP IP Signatures Insurance Cardif CPR Global Return Insurance Cardif Edrim Signatures Insurance Cardif IARD Insurance Cardif Retraite Insurance Cardimmo Insurance Carma Grand Horizon SARL Insurance Carrefour Banque Personal Finance Cedrus Carbon Initiative Trends Insurance Cent ASL Arval Centre Commercial Francilia Insurance CFH Bercy Insurance CFH Bercy Hotel Insurance CFH Bercy Intermédiaire Insurance CFH Boulogne Insurance CFH Cap d’Ail Insurance CFH Montmartre Insurance CFH Montparnasse Insurance Claas Financial Services Leasing Solutions CNH Industrial Capital Europe Leasing Solutions Cofica Bail Personal Finance Cofiparc Arval Cofiplan Personal Finance Compagnie pour le Financement des Loisirs Retail Banking Construction-Sale Companies (c) Real Estate Services Copartis Retail Banking Corosa Insurance Crédit Moderne Antilles Guyane Personal Finance Crédit Moderne Océan Indien Personal Finance Défense CB3 SAS Insurance Diversipierre DVP 1 Insurance Domofinance Personal Finance DVP European Channel Insurance DVP Green Clover Insurance DVP Haussmann Insurance DVP Heron Insurance EP L Insurance EP1 Grands Moulins Insurance Eurotitrisation Corporate and Institutional Banking Evollis Personal Finance Exane Asset Management Corporate and Institutional Banking Exane Finance Corporate and Institutional Banking FCT Juice Corporate and Institutional Banking FCT Lafayette 2021 Property Companies (Property used in operations) and Others FCT Laffitte 2021 Property Companies (Property used in operations) and Others FCT Opera 2023 Property Companies (Property used in operations) and Others FCT Pulse France 2022 Arval FCT Pyramides 2022 Property Companies (Property used in operations) and Others Financière des Paiements Électroniques New Digital Businesses Financière du Marché Saint-Honoré Corporate and Institutional Banking Floa New Digital Businesses Foncière Partenaires Insurance Fondev (Ex- FDI Poncelet) Insurance Fondo BNPP Aqua Protetto Insurance Fonds d’Investissements Immobiliers pour le Commerce et la Distribution Insurance Fortis Lease Leasing Solutions FP Cardif Convex Fund USD Insurance GIE BNPP Cardif Insurance GIE BNPP Real Estate Real Estate Services GIE Groupement Auxiliaire de Moyens Property Companies (Property used in operations) and Others GIE Groupement d’Etudes et de Prestations Property Companies (Property used in operations) and Others GIE Ocean Retail Banking GPinvest 10 Insurance Harmony Prime Insurance Hemisphere Holding Insurance Hibernia France Insurance Icare Insurance Icare Assurance Insurance JCB Finance Leasing Solutions Jivago Holding Retail Banking Korian et Partenaires Immobilier 1 Insurance Korian et Partenaires Immobilier 2 Insurance Loisirs Finance Personal Finance Louveo Arval Lyf SA New Digital Businesses Lyf SAS New Digital Businesses MGF Leasing Solutions Nanterre Arboretum Real Estate Services Natio Énergie 2 Leasing Solutions Natio Fonds Ampère 1 Insurance Natiocredibail Leasing Solutions Neuflize Vie Insurance Neuilly Contentieux Personal Finance New Alpha Cardif Incubator Fund Insurance Noria 2021 Personal Finance Noria 2023 Personal Finance Noria De 2024 Personal Finance Opéra Rendement Insurance Parilease Corporate and Institutional Banking Partecis Retail Banking Paylib Services Retail Banking Permal Cardif Co Investment Fund Insurance Personal Finance Location Personal Finance Pixel 2021 Leasing Solutions Portzamparc Retail Banking Preim Healthcare SAS Insurance Public Location Longue Durée Arval PWH Insurance Reumal Investissements Insurance Rueil Ariane Insurance Same Deutz Fahr Finance Leasing Solutions SCI 68/70 rue de Lagny Montreuil Insurance SCI Batipart Chadesrent Insurance SCI Biv Malakoff Insurance SCI BNPP Pierre I Insurance SCI BNPP Pierre II Insurance SCI Bouleragny Insurance SCI Cardif Logement Insurance SCI Citylight Boulogne Insurance SCI Clichy Nuovo Insurance SCI Défense Etoile Insurance SCI Défense Vendôme Insurance SCI Etoile du Nord Insurance SCI Fontenay Plaisance Insurance SCI Imefa Velizy Insurance SCI Nantes Carnot Insurance SCI Odyssée Insurance SCI Pantin Les Moulins Insurance SCI Paris Batignolles Insurance SCI Paris Cours de Vincennes Insurance SCI Paris Grande-Armée Insurance SCI Paris Turenne Insurance SCI Portes de Claye Insurance SCI Rue Moussorgski Insurance SCI Rueil Caudron Insurance SCI Saint-Denis Landy Insurance SCI Saint-Denis Mitterrand Insurance SCI Saint-Denis Jade Insurance SCI SCOO Insurance SCI Vendôme Athènes Insurance Secar Insurance Services Épargne Entreprise Insurance Services Logiciels d’Intégration Boursière Securities Services SNC Batipart Mermoz Insurance SNC Batipart Poncelet Insurance SNC Natiocredimurs Leasing Solutions SNC Taitbout Participation 3 Corporate and Institutional Banking Société Francaise d’Assurances sur la Vie Insurance Société Orbaisienne de Participations Corporate and Institutional Banking Stellantis Bank SA Personal Finance Tikehau Cardif Loan Europe Insurance United Partnership Personal Finance Uptevia SA Corporate and Institutional Banking Valeur Pierre Épargne Insurance Valtitres FCP Insurance Velizy Holding Insurance Germany Arval Deutschland GmbH Arval AssetMetrix Securities Services BGL BNPP (Germany branch) Retail Banking BNPP 3 Step IT (Germany branch) Leasing Solutions BNPP Asset Management Europe (Germany branch) (Ex- BNPP Asset Management France (Germany branch)) Asset Management BNPP Emissions Und Handels GmbH Corporate and Institutional Banking BNPP Factor GmbH Retail Banking BNPP Lease Group (Germany branch) Leasing Solutions BNPP Real Estate Consult GmbH Real Estate Services BNPP Real Estate GmbH Real Estate Services BNPP Real Estate Holding GmbH Real Estate Services BNPP Real Estate Investment Management Germany GmbH Real Estate Services BNPP Real Estate Property Development & Services GmbH Real Estate Services BNPP Real Estate Property Management GmbH Real Estate Services BNPP SA (Germany branch) Corporate and Institutional Banking Cardif Assurance Vie (Germany branch) Insurance Cardif Assurances Risques Divers (Germany branch) Insurance CFH Berlin GP GmbH Insurance Claas Financial Services (Germany branch) Leasing Solutions CNH Industrial Capital Europe (Germany branch) Leasing Solutions Diversipierre Germany GmbH Insurance Financière des Paiements Électroniques (Germany branch) New Digital Businesses Horizon Development GmbH Insurance ID Cologne A1 GmbH Insurance ID Cologne A2 GmbH Insurance JCB Finance (Germany branch) Leasing Solutions MGF (Germany branch) Leasing Solutions OC Health Real Estate GmbH Insurance PF Services GmbH Personal Finance Seniorenzentren Reinbeck Oberursel München Objekt GmbH Insurance Seniorenzentrum Butzbach Objekt GmbH Insurance Seniorenzentrum Heilbronn Objekt GmbH Insurance Seniorenzentrum Kassel Objekt GmbH Insurance Seniorenzentrum Wolfratshausen Objekt GmbH Insurance Stellantis Bank SA (Germany branch) Personal Finance Greece Arval Hellas Car Rental SA Arval BNPP SA (Greece branch) Corporate and Institutional Banking Hungary Arval Magyarorszag KFT Arval BNPP SA (Hungary branch) Corporate and Institutional Banking Ireland Aries Capital DAC Corporate and Institutional Banking BGZ Poland ABS1 DAC Europe-Mediterranean BNPP Fund Administration Services Ireland Ltd Securities Services BNPP Ireland Unlimited Co Corporate and Institutional Banking BNPP Prime Brokerage International Ltd Corporate and Institutional Banking BNPP Real Estate Advisory and Property Management Ireland Ltd Real Estate Services BNPP SA (Ireland branch) Corporate and Institutional Banking BNPP Vartry Reinsurance DAC Corporate and Institutional Banking Darnell DAC Insurance Greenval Insurance DAC Arval Madison Arbor Ltd Corporate and Institutional Banking Matchpoint Finance PLC Corporate and Institutional Banking SME Alternative Financing DAC Asset Management Italy Arval Service Lease Italia SPA Arval AutoFlorence 1 SRL Personal Finance AutoFlorence 2 SRL Personal Finance AutoFlorence 3 SRL Personal Finance Banca Agevolarti SPA (Ex- Artigiancassa SPA) Retail Banking Banca Nazionale Del Lavoro SPA Retail Banking BCC Vita SPA Insurance BNL Leasing SPA Leasing Solutions BNPP 3 Step IT (Italy branch) Leasing Solutions BNPP Asset Management Europe (Italy branch) (Ex- BNPP Asset Management France (Italy branch)) Asset Management BNPP BNL Equity Investment SPA Retail Banking BNPP Cardif Vita Compagnia di Assicurazione E Riassicurazione SPA Insurance BNPP Lease Group (Italy branch) Leasing Solutions BNPP Lease Group Leasing Solutions SPA Leasing Solutions BNPP Real Estate Advisory Italy SPA Real Estate Services BNPP Real Estate Investment Management Germany GmbH (Italy branch) Real Estate Services BNPP Real Estate Investment Management Italy SPA Real Estate Services BNPP Real Estate Investment Management Luxembourg SA (Italy branch) Real Estate Services BNPP Real Estate Property Management Italy SRL Real Estate Services BNPP Rental Solutions SPA Leasing Solutions BNPP SA (Italy branch) Corporate and Institutional Banking Cardif Assurance Vie (Italy branch) Insurance Cardif Assurances Risques Divers (Italy branch) Insurance CFH Algonquin Management Partners France Italia Insurance CFH Milan Holdco SRL Insurance Claas Financial Services (Italy branch) Leasing Solutions CNH Industrial Capital Europe (Italy branch) Leasing Solutions Diamante Re SRL Corporate and Institutional Banking EMF IT 2008 1 SRL Retail Banking Era Uno SRL Retail Banking Eutimm SRL Retail Banking Financit SPA Retail Banking Findomestic Banca SPA Personal Finance Florence Real Estate Developments SPA Personal Finance Florence SPV SRL Personal Finance Fundamenta Insurance Horti Milano SRL Real Estate Services Immera SRL Retail Banking International Factors Italia SPA Retail Banking JCB Finance (Italy branch) Leasing Solutions MGF (Italy branch) Leasing Solutions Permicro SPA Retail Banking Servizio Italia SPA Retail Banking Sviluppo HQ Tiburtina SRL Retail Banking Sviluppo Residenziale Italia SRL Real Estate Services Tierre Securitisation SRL Retail Banking Vela OBG SRL Retail Banking Worldline Merchant Services Italia SPA Retail Banking Luxembourg AM Select Asset Management Arval Luxembourg SA Arval Batipart Participations SAS Insurance BGL BNPP Retail Banking BNPP Asset Management Luxembourg Asset Management BNPP Easy Asset Management BNPP Flexi I Asset Management BNPP Fortis Funding SA Retail Banking BNPP Funds Asset Management BNPP Lease Group Luxembourg SA Retail Banking BNPP Leasing Solutions Leasing Solutions BNPP Real Estate Advisory & Property Management Luxembourg SA Real Estate Services BNPP Real Estate Investment Management Luxembourg SA Real Estate Services BNPP SA (Luxembourg branch) Corporate and Institutional Banking BNPP SB Re Retail Banking Cardif Lux Vie Insurance CFH Alexanderplatz Hotel SARL Insurance CFH Berlin Holdco SARL Insurance CFH Hostel Berlin SARL Insurance CFH Hotel Project SARL Insurance Compagnie Financière Ottomane SA Retail Banking Ecarat De SA Personal Finance Exane Solutions Luxembourg SA Corporate and Institutional Banking Greenstars BNPP Corporate and Institutional Banking Le Sphinx Assurances Luxembourg SA Retail Banking Luxhub SA Retail Banking PBD Germany Auto Lease Master SA Personal Finance Rubin SARL Insurance Schroder European Operating Hotels Fund 1 Insurance Securasset SA Corporate and Institutional Banking Seniorenzentren Deutschland Holding SARL Insurance Single Platform Investment Repackaging Entity SA Corporate and Institutional Banking Société Immobilière du Royal Building SA Insurance Theam Quant Asset Management Visalux Retail Banking Volantis SARL Corporate and Institutional Banking Netherlands Arval BV Arval BNPP 3 Step IT (Netherlands branch) Leasing Solutions BNPP Asset Management Europe (Netherlands branch) (Ex- BNPP Asset Management France (Netherlands branch) Asset Management BNPP Cardif BV Insurance BNPP Factoring Support Retail Banking BNPP Islamic Issuance BV Corporate and Institutional Banking BNPP Issuance BV Corporate and Institutional Banking BNPP Leasing Solutions NV Leasing Solutions BNPP Personal Finance BV Personal Finance BNPP Real Estate Advisory Netherlands BV Real Estate Services BNPP SA (Netherlands branch) Corporate and Institutional Banking Cardif Assurance Vie (Netherlands branch) Insurance Cardif Assurances Risques Divers (Netherlands branch) Insurance CNH Industrial Capital Europe BV Leasing Solutions Dynamic Credit Group BV Asset Management Heffiq Heftruck Verhuur BV Leasing Solutions Phedina Hypotheken 2010 BV Personal Finance Poland Arval Service Lease Polska SP ZOO Arval BNPP Asset Management Europe (Poland branch) Asset Management BNPP Bank Polska SA Europe-Mediterranean BNPP Faktoring Spolka ZOO Europe-Mediterranean BNPP Group Service Center SA Europe-Mediterranean BNPP Lease Group SP ZOO Leasing Solutions BNPP Leasing Services Leasing Solutions BNPP Real Estate Poland SP ZOO Real Estate Services BNPP SA (Poland branch) Corporate and Institutional Banking Cardif Assurances Risques Divers (Poland branch) Insurance Claas Financial Services (Poland branch) Leasing Solutions CNH Industrial Capital Europe (Poland branch) Leasing Solutions Portugal Arval Service Lease Aluger Operational Automoveis SA Arval BNPP Factor (Portugal branch) Retail Banking BNPP Lease Group (Portugal branch) Leasing Solutions BNPP Personal Finance (Portugal branch) Personal Finance BNPP Real Estate Investment Management Germany GmbH (Portugal branch) Real Estate Services BNPP Real Estate Portugal Unipersonal LDA Real Estate Services BNPP SA (Portugal branch) Corporate and Institutional Banking Cardif Assurance Vie (Portugal branch) Insurance Cardif Assurances Risques Divers (Portugal branch) Insurance Cardif Support Unipessoal Lda Insurance Exeo Aura & Echo Offices Lda Real Estate Services Expo Atlantico EAII Investimentos Imobiliarios SA Corporate and Institutional Banking Expo Indico EIII Investimentos Imobiliarios SA Corporate and Institutional Banking Financière des Paiements Électroniques (Portugal branch) New Digital Businesses Services Logiciels d’Intégration Boursière (Portugal branch) Securities Services Romania Arval Service Lease Romania SRL Arval BNPP Leasing Solutions IFN SA Leasing Solutions BNPP Personal Finance (Romania branch) Personal Finance BNPP SA (Romania branch) Corporate and Institutional Banking Cardif Assurance Vie (Romania branch) Insurance Cardif Assurances Risques Divers (Romania branch) Insurance Central Europe Technologies SRL Personal Finance Slovakia Arval Slovakia SRO Arval BNPP Personal Finance (Slovakia branch) Personal Finance Spain Arval Service Lease SA Arval Autonoria Spain 2019 Personal Finance Autonoria Spain 2021 FT Personal Finance Autonoria Spain 2022 FT Personal Finance Autonoria Spain 2023 FT Personal Finance Banco Cetelem SA Personal Finance BNPP 3 Step IT (Spain branch) Leasing Solutions BNPP Factor (Spain branch) Retail Banking BNPP Lease Group (Spain branch) Leasing Solutions BNPP Real Estate Investment Management Germany GmbH (Spain branch) Real Estate Services BNPP Real Estate Investment Management Spain SA Real Estate Services BNPP Real Estate Spain SA Real Estate Services BNPP SA (Spain branch) Corporate and Institutional Banking Cardif Assurance Vie (Spain branch) Insurance Cardif Assurances Risques Divers (Spain branch) Insurance Cariboo Development SL Real Estate Services Cetelem Gestion AIE Personal Finance Cetelem Servicios Informaticos AIE Personal Finance Claas Financial Services (Spain branch) Leasing Solutions CNH Industrial Capital Europe (Spain branch) Leasing Solutions Financière des Paiements Électroniques (Spain branch) New Digital Businesses GCC Consumo Establecimiento Financiero de Credito SA Personal Finance International Development Resources AS Services SA Personal Finance Kantox European Union SL Corporate and Institutional Banking Noria Spain 2020 FT Personal Finance Ribera Del Loira Arbitrage Corporate and Institutional Banking Securitisation funds UCI and RMBS Prado (b) Personal Finance Servicios Financieros Carrefour EFC SA Personal Finance Union de Creditos Inmobiliarios SA Personal Finance Wapiti Development SL Real Estate Services XFERA Consumer Finance EFC SA Personal Finance Sweden Alfred Berg Kapitalforvaltning AS (Sweden branch) Asset Management Arval AB Arval BNPP Cardif Livforsakring AB Insurance BNPP Leasing Solutions AB Leasing Solutions BNPP SA (Sweden branch) Corporate and Institutional Banking Cardif Forsakring AB Insurance Cardif Nordic AB Insurance Ekspres Bank AS (Sweden branch) Personal Finance 2. Other European countries Guernsey BNPP SA (Guernsey branch) Corporate and Institutional Banking BNPP Suisse SA (Guernsey branch) Corporate and Institutional Banking Jersey BNPP SA (Jersey branch) Corporate and Institutional Banking Kosovo TEB SH A Europe-Mediterranean Monaco Arval Fleet Services (succ. Monaco) Arval BNPP SA (Monaco branch) Retail Banking Norway Alfred Berg Kapitalforvaltning AS Asset Management Arval AS Norway Arval BNPP Cardif Livforsakring AB (Norway branch) Insurance BNPP Leasing Solution AS Leasing Solutions BNPP SA (Norway branch) Corporate and Institutional Banking Cardif Forsakring AB (Norway branch) Insurance Drypnir AS Asset Management Ekspres Bank AS (Norway branch) Personal Finance Russia Arval LLC Arval BNPP Bank JSC Corporate and Institutional Banking Switzerland Arval Schweiz AG Arval BNPP Leasing Solutions Suisse SA Leasing Solutions BNPP SA (Switzerland branch) Corporate and Institutional Banking BNPP Suisse SA Corporate and Institutional Banking Cardif Assurance Vie (Switzerland branch) Insurance Cardif Assurances Risques Divers (Switzerland branch) Insurance United Kingdom Allfunds Group PLC Securities Services Arval UK Group Ltd Arval Arval UK Leasing Services Ltd Arval Arval UK Ltd Arval BNP PUK Holding Ltd Corporate and Institutional Banking BNPP 3 Step IT (United Kingdom branch) Leasing Solutions BNPP Asset Management UK Ltd Asset Management BNPP Commercial Finance Ltd Retail Banking BNPP Fleet Holdings Ltd Arval BNPP Lease Group Ltd (Ex- BNPP Lease Group PLC) Leasing Solutions BNPP Leasing Solutions Ltd Leasing Solutions BNPP Real Estate Advisory & Property Management UK Ltd Real Estate Services BNPP Real Estate Facilities Management Ltd Real Estate Services BNPP Real Estate Investment Management Ltd Real Estate Services BNPP Real Estate Investment Management UK Ltd Real Estate Services BNPP Real Estate Property Development UK Ltd Real Estate Services BNPP SA (United Kingdom branch) Corporate and Institutional Banking BNPP Trust Corp. UK Ltd Securities Services Cardif Insurance Holdings PLC Insurance Claas Financial Services Ltd Leasing Solutions CNH Industrial Capital Europe Ltd Leasing Solutions Creation Consumer Finance Ltd Personal Finance Creation Financial Services Ltd Personal Finance Fortis Lease UK Ltd Leasing Solutions Harewood Helena 1 Ltd Asset Management Harewood Helena 2 Ltd Insurance Impax Asset Management Group PLC Asset Management JCB Finance Holdings Ltd Leasing Solutions Kantox Holding Ltd Corporate and Institutional Banking Kantox Ltd Corporate and Institutional Banking Manitou Finance Ltd Leasing Solutions Parker Tower Ltd Real Estate Services Pinnacle Pet Holdings Ltd Insurance Pulse UK 2024 PLC Arval REPD Parker Ltd Real Estate Services Stellantis Financial Services UK Ltd Personal Finance Ukraine Joint Stock Company Ukrsibbank Europe-Mediterranean 3. Africa & Mediterranean basin Algeria BNPP El Djazair Europe-Mediterranean Cardif El Djazair Insurance Bahrain BNPP SA (Bahrain branch) Corporate and Institutional Banking Botswana RCS Botswana Pty Ltd Personal Finance Kuwait BNPP SA (Kuwait branch) Corporate and Institutional Banking Morocco Arval Maroc SA Arval Banque Marocaine pour le Commerce et l’Industrie Europe-Mediterranean Banque Marocaine pour le Commerce et l’Industrie Banque Offshore Europe-Mediterranean BDSI Europe-Mediterranean BMCI Leasing Europe-Mediterranean Namibia RCS Investment Holdings Namibia Pty Ltd Personal Finance Qatar BNPP SA (Qatar branch) Corporate and Institutional Banking Saudi Arabia BNPP Investment Co KSA Corporate and Institutional Banking BNPP SA (Saudi Arabia branch) Corporate and Institutional Banking South Africa BNPP Personal Finance South Africa Ltd Personal Finance BNPP SA (South Africa branch) Corporate and Institutional Banking RCS Cards Pty Ltd Personal Finance Türkiye Bantas Nakit AS Europe-Mediterranean BNPP Cardif Emeklilik AS Insurance BNPP Cardif Hayat Sigorta AS Insurance BNPP Cardif Sigorta AS Insurance BNPP Finansal Kiralama AS Leasing Solutions BNPP Fortis Yatirimlar Holding AS Europe-Mediterranean BNPP Yatirimlar Holding AS Europe-Mediterranean TEB ARF Teknoloji Anonim Sirketi Europe-Mediterranean TEB Arval Arac Filo Kiralama AS Arval TEB Faktoring AS Europe-Mediterranean TEB Finansman AS Europe-Mediterranean TEB Holding AS Europe-Mediterranean TEB Yatirim Menkul Degerler AS Europe-Mediterranean Turk Ekonomi Bankasi AS Europe-Mediterranean United Arab Emirates BNPP Real Estate (United Arab Emirates branch) Real Estate Services BNPP SA (United Arab Emirates branch) Corporate and Institutional Banking 4. Americas Argentina BNPP SA (Argentina branch) Corporate and Institutional Banking Bermuda Decart Re Ltd Corporate and Institutional Banking Brazil Arval Brasil Ltda Arval Banco BNPP Brasil SA Corporate and Institutional Banking BNPP Asset Management Brasil Ltda Asset Management BNPP EQD Brazil Fund Fundo de Investmento Multimercado Corporate and Institutional Banking BNPP Proprietario Fundo de Investimento Multimercado Corporate and Institutional Banking Cardif do Brasil Seguros e Garantias SA Insurance Cardif do Brasil Vida e Previdencia SA Insurance Cardif Ltda Insurance Cetelem Servicos Ltda Personal Finance Luizaseg Seguros SA Insurance NCVP Participacoes Societarias SA Insurance Canada BNPP IT Solutions Canada Inc. Corporate and Institutional Banking BNPP SA (Canada branch) Corporate and Institutional Banking Corporation BNPP Canada (Ex- BNPP Canada Corp.) Corporate and Institutional Banking Chile Arval Relsa SPA Arval Bancoestado Administradora General de Fondos SA Asset Management BNPP Cardif Seguros de Vida SA Insurance BNPP Cardif Seguros Generales SA Insurance BNPP Cardif Servicios y Asistencia Ltda Insurance Comercializadora de Vehiculos SA Arval Rentaequipos Leasing SA Arval Colombia Arval Relsa Colombia SAS Arval BNPP Colombia Corporacion Financiera SA Corporate and Institutional Banking Cardif Colombia Seguros Generales SA Insurance Cardif Servicios de Colombia SAS Insurance Mexico BNPP Mexico Holding Corporate and Institutional Banking BNPP Mexico SA Institucion de Banca Multiple Corporate and Institutional Banking Cardif Mexico Seguros de Vida SA de CV Insurance Cardif Mexico Seguros Generales SA de CV Insurance Cetelem SA de CV Personal Finance Peru BNPP Cardif Compania de Seguros y Reaseguros SA Insurance Rentaequipos Leasing Peru SA Arval USA BNPP Asset Management USA Holdings Inc. Asset Management BNPP Asset Management USA Inc. Asset Management BNPP Capital Services Inc. Corporate and Institutional Banking BNPP Financial Services LLC Securities Services BNPP Fortis (United States branch) Corporate and Institutional Banking BNPP RCC Inc. Corporate and Institutional Banking BNPP SA (United States branch) Corporate and Institutional Banking BNPP Securities Corp. Corporate and Institutional Banking BNPP US Investments Inc. Corporate and Institutional Banking BNPP US Wholesale Holdings Corp. Corporate and Institutional Banking BNPP USA Inc. Corporate and Institutional Banking BNPP VPG Brookline Cre LLC Corporate and Institutional Banking BNPP VPG EDMC Holdings LLC Corporate and Institutional Banking BNPP VPG Express LLC Corporate and Institutional Banking BNPP VPG I LLC Corporate and Institutional Banking BNPP VPG II LLC Corporate and Institutional Banking BNPP VPG III LLC Corporate and Institutional Banking BNPP VPG IV LLC Corporate and Institutional Banking BNPP VPG Master LLC Corporate and Institutional Banking FSI Holdings Inc. Corporate and Institutional Banking Starbird Funding Corp. Corporate and Institutional Banking 5. Asia & Pacific Australia BNPP Fund Services Australasia Pty Ltd Securities Services BNPP SA (Australia branch) Corporate and Institutional Banking China Bank of Nanjing Europe-Mediterranean BNPP ABC Wealth Management Co Ltd Asset Management BNPP China Ltd Corporate and Institutional Banking BNPP Securities China Ltd Corporate and Institutional Banking BOB Cardif Life Insurance Co Ltd Insurance BON BNPP Consumer Finance Co Ltd Personal Finance Cetelem Business Consulting Shanghai Co Ltd Personal Finance Genius Auto Finance Co Ltd Personal Finance Haitong Fortis Private Equity Fund Management Co Ltd Asset Management HFT Investment Management Co Ltd Asset Management JFL BNPP Agriculture And Technology Financial Leasing Co Ltd Leasing Solutions Securitisation funds Genius (d) Personal Finance Securitisation funds Wisdom (e) Personal Finance Zhejiang Wisdom Puhua Financial Leasing Co Ltd Personal Finance Hong Kong BNPP Arbitrage Hong Kong Ltd Corporate and Institutional Banking BNPP Asset Management Asia Ltd Asset Management BNPP Finance Hong Kong Ltd Corporate and Institutional Banking BNPP SA (Hong Kong branch) Corporate and Institutional Banking BNPP Securities Asia Ltd Corporate and Institutional Banking India Baroda BNPP AMC Private Ltd Asset Management BNPP India Holding Private Ltd Corporate and Institutional Banking BNPP India Solutions Private Ltd Corporate and Institutional Banking BNPP SA (India branch) Corporate and Institutional Banking BNPP Securities India Private Ltd Corporate and Institutional Banking Geojit Technologies Private Ltd Personal Investors Indonesia Andalan Multi Guna PT Corporate and Institutional Banking Bank BNPP Indonesia PT Corporate and Institutional Banking BNPP Asset Management PT Asset Management BNPP Sekuritas Indonesia PT Corporate and Institutional Banking Japan BNPP Asset Management Japan Ltd Asset Management BNPP SA (Japan branch) Corporate and Institutional Banking BNPP Securities Japan Ltd Corporate and Institutional Banking Cardif Life Insurance Japan Insurance Cardif Non-Life Insurance Japan Insurance Malaysia BNPP Malaysia Berhad Corporate and Institutional Banking BNPP SA (Malaysia branch) Corporate and Institutional Banking New Zealand BNPP Fund Services Australasia Pty Ltd (New Zealand branch) Securities Services Philippines BNPP SA (Philippines branch) Corporate and Institutional Banking Republic of Korea BNPP SA (Republic of Korea branch) Corporate and Institutional Banking BNPP Securities Korea Co Ltd Corporate and Institutional Banking Cardif Life Insurance Co Ltd Insurance Singapore BNPP Real Estate Singapore Pte Ltd Real Estate Services BNPP SA (Singapore branch) Corporate and Institutional Banking BPP Holdings Pte Ltd Corporate and Institutional Banking Taiwan BNPP Asset Management Taiwan Co Ltd Asset Management BNPP Cardif TCB Life Insurance Co Ltd Insurance BNPP SA (Taiwan branch) Corporate and Institutional Banking BNPP Securities Taiwan Co Ltd Corporate and Institutional Banking Cardif Assurance Vie (Taiwan branch) Insurance Cardif Assurances Risques Divers (Taiwan branch) Insurance Thailand BNPP SA (Thailand branch) Corporate and Institutional Banking Viet Nam BNPP SA (Viet Nam branch) Corporate and Institutional Banking At 31 December 2024, 13 Private Equity investment entities versus 14 Private Equity investment entities at 31 December 2023. At 31 December 2024, the securitisation funds UCI and RMBS Prado include 13 funds (FCC UCI 11, 12, 14 to 17, RMBS Prado VII to XI, Green Belem I et RMBS Belem No 2) unchanged from 31 December 2023. At 31 December 2024, 102 Construction-sale companies (71 Full and 31 Equity) versus 117 Construction-sale companies (82 Full and 35 Equity) at 31 December 2023. At 31 December 2024, the securitisation funds Genius include 8 funds (Generation 2024-1-4 Retail Auto Mortgage Loan Securitisation, Generation 2023-2 to 5 Retail Auto Mortgage Loan Securitisation) versus 11 funds (Generation 2021-4 Retail Auto Mortgage Loan Securitisation, Generation 2022-1 to 5 Retail Auto Mortgage Loan Securitisation, Generation 2023-1 to 5 Retail Auto Mortgage Loan Securitisation) at 31 December 2023. At 31 December 2024, the securitisation funds Wisdom include 10 funds (Wisdom Puhua Leasing 2022-2 à 3 Asset-Backed Securities, Wisdom Puhua Leasing 2023-2 Asset-Backed Notes, Wisdom Puhua Leasing 2023-1 & 2 Asset-Backed Securities, Wisdom Puhua Leasing Xinghe 2023-1 Asset-Backed Securities, Wisdom Puhua Leasing Xinghe 2024-1 à 4 Asset-Backed Securities) versus 13 funds (Wisdom Puhua Leasing 2021-2 & 3 Asset-Backed Securities, Wisdom Puhua Leasing 2022-1 Asset-Backed Notes, Wisdom Puhua Leasing 2022-1 to 3 Asset-Backed Securities, Wisdom Puhua Leasing 2023-1 & 2 Asset-Backed Notes, Wisdom Puhua Leasing 2023-1 & 2 Asset-Backed securities, Wisdom Puhua Leasing Zhixing 2023-1 & 2 Asset-Backed Notes, Wisdom Puhua Leasing Xinghe 2023-1 Asset-Backed Securities) at 31 December 2023. II.DATA by country The financial data by country correspond to the contribution of fully consolidated entities under exclusive control to the Group’s consolidated financial statements established under IFRS standards. Whereas the current tax is determined based on the tax income, calculated based on local standards, and which can be different from the IFRS contribution. The financial headcount corresponds to Full-Time Equivalents (FTE) at 31 December 2024 in fully consolidated entities under exclusive control. FY 2024 (in million of EUR) Financial headcount as at 31 December 2024 Revenues Public subsidies received Income before Tax Current tax expense Defered tax Corporate income tax European Union member States Austria 79 0 21 (3) (2) (5) 212 Belgium 4,955 0 1,911 (301) (223) (524) 12,386 Bulgaria 27 0 16 (2) 0 (2) 98 Czech Republic 84 0 45 (7) (7) (14) 420 Denmark 125 0 (5) (7) 0 (7) 275 Finland 11 0 3 (1) 0 (1) 46 France 12,855 0 1,741 40 (51) (11) 54,112 Germany 2,787 0 1,180 (253) (118) (371) 5,908 Greece 15 0 3 0 (2) (2) 86 Hungary 56 0 11 (2) (1) (3) 147 Ireland 336 0 189 (29) 1 (28) 531 Italy 5,282 0 1,885 (260) (392) (652) 15,380 Luxemburg 1,658 0 828 (198) 18 (180) 3,537 Netherlands 604 0 324 (62) (31) (93) 1,128 Poland 2,013 0 783 (177) 17 (160) 9,681 Portugal 183 0 89 (26) (4) (30) 9,221 Romania 92 0 53 (9) (2) (11) 689 Slovakia 15 0 1 0 (2) (2) 427 Spain 1,276 0 513 (116) (37) (153) 4,996 Sweden 165 0 (1) (12) 2 (10) 355 Other European countries Guernsey 14 0 5 0 0 0 31 Jersey 31 0 (1) 0 0 0 250 Kosovo 59 0 29 (3) 0 (3) 618 Monaco 30 0 (37) (12) 0 (12) 182 Norway 66 0 (1) (2) 1 (1) 180 Russia 79 0 70 (16) 2 (14) 79 Switzerland 405 0 4 (10) (3) (13) 921 Ukraine 332 0 173 (98) 5 (93) 4,237 United Kingdom 3,898 0 1,397 (415) (18) (433) 7,369 Africa & Mediterranean basin Algeria 111 0 51 (19) 2 (17) 1,152 Bahrain 8 0 (54) 0 0 0 252 Botswana 2 0 2 (1) 0 (1) 7 Kuwait 2 0 0 (1) 0 (1) 2 Morocco 372 0 86 (38) (7) (45) 2,855 Namibia 1 0 0 0 0 0 10 Qatar 38 0 23 (3) 0 (3) 23 Saudi Arabia 46 0 62 (9) 0 (9) 54 South Africa 153 0 20 (6) 0 (6) 1,301 Turkey 1,052 0 28 (89) 6 (83) 9,031 United Arab Emirates 126 0 69 (15) (1) (16) 135 Americas Argentina 82 0 53 (4) 0 (4) 80 Bermuda 0 0 0 0 0 0 0 Brazil 298 0 38 (26) 12 (14) 1,484 Canada 64 0 56 (14) (2) (16) 1,226 Chile 96 0 64 (27) 10 (17) 554 Colombia 72 0 37 (23) 2 (21) 468 Mexico 178 0 94 (18) (2) (20) 359 Peru 43 0 30 (2) (8) (10) 220 United States of America 4,646 0 2,062 (325) (127) (452) 3,628 Asia & Pacific Australia 265 0 95 (34) (2) (36) 489 China 200 0 75 (14) 0 (14) 555 Hong Kong 981 0 38 (18) 3 (15) 2,348 India 391 0 284 (116) (1) (117) 12,210 Indonesia 61 0 32 (11) (1) (12) 159 Japan 702 0 447 (142) 6 (136) 628 Malaysia 42 0 24 (6) 0 (6) 86 New Zealand 21 0 8 (2) 0 (2) 53 Philippines 0 0 0 0 0 0 9 Republic of Korea 115 0 30 20 (32) (12) 306 Singapore 833 0 329 (64) 5 (59) 1,789 Taiwan 218 0 133 (16) (5) (21) 699 Thailand 29 0 9 (2) 0 (2) 82 Viet Nam 51 0 33 (7) 1 (6) 97 GROUP TOTAL 48,831 0 15,487 (3,013) (988) (4,001) 175,853 8.7Founding documents and Articles of Association SECTION I FORM – NAME – REGISTERED OFFICE – CORPORATE PURPOSE Article 1 BNP PARIBAS is a French Public Limited Company (société anonyme) licensed to conduct banking operations under the French Monetary and Financial Code, Book V, Section 1 (Code Monétaire et Financier, Livre V, Titre 1er) governing banking sector institutions. The Company was founded pursuant to a decree dated 26 May 1966. Its legal life was extended to 99 years with effect from 17 September 1993. Apart from the specific rules relating to its status as an establishment in the banking sector (Book V, Section 1 of the French Monetary and Financial Code - Code Monétaire et Financier, Livre V, Titre 1er), BNP PARIBAS shall be governed by the provisions of the French Commercial Code (Code de Commerce) concerning commercial companies, as well as by these Articles of Association. Article 2 The registered office of BNP PARIBAS shall be located in Paris (9th arrondissement), at 16, Boulevard des Italiens (France). Article 3 The purpose of BNP PARIBAS shall be to provide and carry out the following services with any individual or legal entity, in France and abroad, subject to compliance with the French laws and regulations applicable to credit institutions licensed by the Credit Institutions and Investment Firms Committee (Comité des Etablissements de Crédit et des Entreprises d’Investissement): any and all investment services, any and all services related to investment services, any and all banking transactions, any and all services related to banking transactions, any and all equity investments, as defined in the French Monetary and Financial Code Book III – Section 1 (Code Monétaire et Financier, Livre III, Titre 1er) governing banking transactions and Section II (Titre II) governing investment services and related services. On a regular basis, BNP PARIBAS may also conduct any and all other activities and any and all transactions in addition to those listed above, in particular any and all arbitrage, brokerage and commission transactions, subject to compliance with the regulations applicable to banks. In general, BNP PARIBAS may, on its own behalf, and on behalf of third parties or jointly therewith, perform any and all financial, commercial, industrial or agricultural, personal property or real estate transactions directly or indirectly related to the activities set out above or which further the accomplishment thereof. SECTION II SHARE CAPITAL - SHARES Article 4 The share capital of BNP PARIBAS shall stand at 2,261,621,342 euros divided into 1,130,810,671 fully paid-up shares with a nominal value of 2 euros each. Article 5 The fully paid-up shares shall be held in registered or bearer form at the shareholder’s discretion, subject to the French laws and regulations in force. The shares shall be registered in an account in accordance with the terms and conditions set out in the applicable French laws and regulations in force. They shall be assigned by transfer from one account to another. The Company may request disclosure of information concerning the ownership of its shares in accordance with the provisions of article L. 228-2 of the French Commercial Code (Code de Commerce). Without prejudice to the legal thresholds set in article L. 233-7, paragraph 1 of the French Commercial Code (Code de Commerce), any shareholder, whether acting alone or in concert, who comes to directly or indirectly hold at least 0.5% of the share capital or voting rights of BNP PARIBAS, or any multiple of that percentage less than 5%, shall be required to notify BNP PARIBAS by registered letter with return receipt within the timeframe set out in article L. 233-7 of the French Commercial Code (Code de Commerce). Above 5%, the disclosure obligation provided for in the previous paragraph shall apply to 1% increments of the share capital or voting rights. The disclosures described in the previous two paragraphs shall also apply when the shareholding falls below the above-mentioned thresholds. Failure to report either legal or statutory thresholds shall result in the loss of voting rights as provided for by article L. 233-14 of the French Commercial Code (Code de Commerce) at the request of one or more shareholders jointly holding at least 2% of the Company’s share capital or voting rights. Article 6 Each share shall grant a right to a part of ownership of the Company’s assets and any liquidation surplus that is equal to the proportion of share capital that it represents. In cases where it is necessary to hold several shares in order to exercise certain rights, and in particular where shares are exchanged, combined or allocated, or following an increase or reduction in share capital, regardless of the terms and conditions thereof, or subsequent to a merger or any other transaction, it shall be the responsibility of those shareholders owning less than the number of shares required to exercise those rights to combine their shares or, if necessary, to purchase or sell the number of shares or voting rights leading to ownership of the required percentage of shares. SECTION III GOVERNANCE Article 7 The Company shall be governed by a Board of Directors composed of: Directors appointed by the Ordinary General Shareholders’ Meeting There shall be at least nine and no more than eighteen Directors. Directors representing employees as well as Directors representing employee shareholders shall not be included when calculating the minimum and maximum number of Directors. They shall be appointed for a three-year term. When a Director is appointed to replace another Director, in accordance with applicable French laws and regulations in force, the new Director’s term of office shall be limited to the remainder of the predecessor’s term. A Director’s term of office shall end at the close of the Ordinary General Shareholders’ Meeting convened to deliberate on the financial statements for the previous financial year and held in the year during which the Director’s term of office expires. Directors may be re-appointed, subject to the provisions of French law, in particular with regard to their age. Each Director, with the exception of Directors representing employees and Directors representing employee shareholders, must own at least 10 Company shares. Directors elected by BNP PARIBAS SA employees The status of these Directors and the related election procedures shall be governed by articles L. 225-27 to L. 225-34 of the French Commercial Code (Code de Commerce) as well as by the provisions of these Articles of Association. There shall be two such Directors – one representing executive staff and the other representing non-executive staff. They shall be elected by BNP PARIBAS SA employees. They shall be elected for a three-year term. Elections shall be organised by the Executive Management. The timetable and terms and conditions for elections shall be drawn up by the Executive Management in consultation with the national trade union representatives within the Company such that the second round of elections shall be held no later than fifteen days before the end of the term of office of the outgoing Directors. Each candidate shall be elected on a majority basis after two rounds held in each of the electoral colleges. Each application submitted during the first round of elections shall include both the candidate’s name and the name of a substitute, if any. Applications may not be amended during the second round of elections. The candidates shall belong to the electoral college where they stand for election. Applications other than those presented by a trade union representative within the Company must be submitted together with a document including the names and signatures of one hundred electors belonging to the electoral college where the candidate is running for election. Director representing employee shareholders Where the report presented by the Board of Directors at the Annual General Meeting, in accordance with article L. 225-102 of the French Commercial Code, establishes that shares held by company employees or by employees of related companies within the meaning of article L. 225-180 of said Code, account for over 3% of the Company’s share capital, a Director representing the employee shareholders is appointed by the Ordinary Shareholders’ Meeting in accordance with the procedures set out in current regulations as well as by these Articles of Association. Candidates for election to the office of Director representing employee shareholders are selected on the following basis: when the voting right attached to the shares held by the employees, and former employees, referred to in article L. 225-102 of the French Commercial Code is exercised by the Supervisory Board, or Boards, of one, or more, mutual funds (FCPE), the Board, or Boards, of the FCPE or FCPEs, jointly selects two candidates; when the voting right attached to the shares, held directly or via an FCPE by the employees, and where applicable, former employees, as referred to in article L. 225-102 of the French Commercial Code, is exercised directly by said employees, they appoint two candidates, given that each employee shareholder will have the same number of votes as the number of shares that they directly, or indirectly, hold. The two employees with the most votes are appointed as candidates. Only employee shareholders or employees who are members of the Supervisory Board of an FCPE holding company shares may be selected as candidates. Each candidate must be presented together with a replacement who meets the same requirements as the said candidate. The Board of Directors presents the candidates to the Annual General Meeting under separate resolutions and, where applicable, approves the resolution relating to its preferred candidate. The Ordinary General Meeting of Shareholders decides, under the conditions of quorum and majority applicable to the appointment of any member of the Board of Directors, on the appointment of the Director representing the employee shareholders. Out of the candidates referred to above, the one who has received the most votes from shareholders present, or represented, at the Ordinary General Meeting of Shareholders, will be appointed as Director representing employee shareholders. This Director’s term and the conditions under which the term of office is exercised are exactly the same as for Directors appointed by the Annual General Meeting. Should the Director cease to be an employee, or in the event of a vacancy arising due to death or resignation of office, the term of office of the Director representing employee shareholders ends automatically. Under these circumstances, the Director representing the employee shareholders shall be replaced at the next Ordinary Annual General Meeting. Should the next Annual General Meeting be held within four months of the date on which the term of office is expected to end, the replacement is appointed at the next Annual General Meeting. The new Director is appointed by the Annual General Meeting for the remainder of his/her predecessor’s term of office. Should the Director cease to be an employee, or in the event of a vacancy arising due to death or resignation from office, the replacement’s term of office automatically ends and new candidates must be selected as described above. The candidates selected by this process shall be voted on by shareholders at the next Annual General Meeting. The new Director is appointed by the Annual General Meeting as described above. This Director’s term of office and the conditions under which the directorship is exercised are identical to those of Directors appointed by the Annual General Meeting. Should the next Annual General Meeting be held within six months of the date on which the replacement’s term of office is due to end, the replacement is appointed at the next Annual General Meeting. Under the different circumstances mentioned above, the Board of Directors may meet and validly deliberate until the date on which the Director representing the employee shareholders is replaced. The provisions of the first paragraph of 3/ shall cease to apply when, at year-end, the percentage of capital owned by Company employees and employees of related companies under the aforementioned article L. 225-102, accounts for less than 3% of the share capital, given that the term of office of any Director appointed in accordance with this article shall end on its expiry date. Detailed procedures relating to the organisation and holding of the vote by all the shareholders referred to in the aforementioned article L. 225-102, particularly with regard to the timetable for the selection of candidates, are approved by the Executive Management directly, or by delegation. Article 8 The Chairman of the Board of Directors shall be appointed from among the members of the Board of Directors. Upon proposal from the Chairman, the Board of Directors may appoint one or more Vice-Chairmen. Article 9 The Board of Directors shall meet as often as necessary in the best interests of the Company. Board meetings shall be convened by the Chairman. Where requested by at least one-third of the Directors, the Chairman may convene a Board meeting with respect to a specific agenda, even if the last Board meeting was held less than two months before. The Chief Executive Officer (CEO) may also request that the Chairman convene a Board meeting to discuss a specific agenda. Board meetings shall be held either at the Company’s registered office, or at any other location specified in the notice of meeting. Notices of meetings may be communicated by any means, including verbally. The Board of Directors may meet and make valid decisions at any time, even if no notice of meeting has been communicated, provided all its members are present or represented. Article 10 Board meetings shall be chaired by the Chairman, by a Director recommended by the Chairman for such purpose or, failing this, by the oldest Director present. Any Director may attend a Board meeting and take part in its deliberations by videoconference (visioconférence) or all telecommunications and remote transmission means, including Internet, subject to compliance with the conditions set out in applicable legislation at the time of its use. Decisions within the remit of the Board of Directors referred to by article L. 225-37 French Commercial Code (Code de Commerce) may be taken by means of written consultation. Any Director who is unable to attend a Board meeting may ask to be represented by a fellow Director, by granting a written proxy, valid for only one specific meeting of the Board. Each Director may represent only one other Director. At least half of the Board members must be present for decisions taken at Board meetings to be valid. Should one or both of the offices of Director elected by employees remain vacant, for whatever reason, without the possibility of a replacement as provided for in article L. 225-34 of the French Commercial Code (Code de Commerce), the Board of Directors shall be validly composed of the members elected by the General Shareholders’ Meeting and may validly meet and vote. Members of the Company’s Executive Management may, at the request of the Chairman, attend Board meetings in an advisory capacity. A permanent member of the Company’s Central Social and Economic Committee, appointed by said Committee, shall attend Board meetings in an advisory capacity, subject to compliance with the provisions of French laws in force. Decisions shall be made by a majority of Directors present or represented. In the event of a split decision, the Chairman of the meeting shall have the casting vote, except as regards the proposed appointment of the Chairman of the Board of Directors. The Board of Directors’ deliberations shall be recorded in minutes entered in a special register prepared in accordance with French laws in force and signed by the Chairman of the meeting and one of the Directors who attended the meeting. The Chairman of the meeting shall appoint the Secretary to the Board, who may be chosen from outside the Board’s members. Copies or excerpts of Board minutes may be signed by the Chairman, the Chief Executive Officer, the Chief Operating Officers (COOs) or any representative specifically authorised for such purpose. Article 11 The Ordinary General Shareholders’ Meeting may grant Directors’ remuneration under the conditions provided for by French law. The Board of Directors shall split these fees among its members. The Board of Directors may grant exceptional compensation for specific assignments or duties performed by the Directors under the conditions applicable to agreements subject to approval, in accordance with the provisions of articles L. 225-38 to L. 225-43 of the French Commercial Code (Code de Commerce). The Board may also authorise the reimbursement of travel and business expenses and any other expenses incurred by the Directors in the interests of the Company. SECTION IV DUTIES OF THE BOARD OF DIRECTORS, THE CHAIRMAN, THE EXECUTIVE MANAGEMENT AND THE NON-VOTING DIRECTORS (CENSEURS) Article 12 The Board of Directors shall determine the business strategy of BNP PARIBAS and supervise the implementation thereof. Subject to the powers expressly conferred on the Shareholders’ Meetings and within the limit of the corporate purpose, the Board shall handle any issue concerning the smooth running of BNP PARIBAS and settle matters concerning the Company pursuant to its deliberations. The Board of Directors shall receive from the Chairman or the Chief Executive Officer all of the documents and information required to fulfil its duties. The Board of Directors’ decisions shall be carried out either by the Chairman, the Chief Executive Officer or the Chief Operating Officers, or by any special representative appointed by the Board. Upon proposal from the Chairman, the Board of Directors may decide to set up committees responsible for performing specific tasks. Article 13 The Chairman shall organise and manage the work of the Board of Directors and report thereon to the General Shareholders’ Meeting. The Chairman shall also oversee the smooth running of BNP PARIBAS’s management bodies and ensure, in particular, that the Directors are in a position to fulfil their duties. The remuneration of the Chairman of the Board shall be freely determined by the Board of Directors. Article 14 The Board of Directors shall decide how to organise the Executive Management of the Company: the Executive Management of the Company shall be conducted, under his responsibility, either by the Chairman of the Board of Directors or by another individual appointed by the Board of Directors and who shall have the title of Chief Executive Officer. Shareholders and third parties shall be informed of this choice in accordance with the regulatory provisions in force. The Board of Directors shall have the right to decide that this choice be for a fixed term. Once the Board of Directors has decided to dissociate the functions of Chairman and Chief Executive Officer, the Chairman shall be deemed to have automatically resigned at the close of the General Shareholders’ Meeting held to approve the financial statements for the year in which he reaches seventy-five years of age. However, the Board may decide to extend the term of office of the Chairman of the Board until the close of the General Shareholders’ Meeting held to approve the financial statements for the year in which he reaches seventy-six years of age. The Chief Executive Officer shall be deemed to have automatically resigned at the close of the General Shareholders’ Meeting held to approve the financial statements for the year in which he reaches sixty-five years of age. However, the Board may decide to extend the term of office of the Chief Executive Officer until the close of the General Shareholders’ Meeting held to approve the financial statements for the year in which he reaches sixty-six years of age. In the event that the Board of Directors decides that the Executive Management shall be conducted by the Chairman of the Board, the provisions of these Articles of Association concerning the Chief Executive Officer shall apply to the Chairman of the Board of Directors who will in such case have the title of Chairman and Chief Executive Officer. He shall be deemed to have automatically resigned at the close of the General Shareholders’ Meeting held to approve the financial statements for the year in which he reaches sixty-five years of age. Article 15 The Chief Executive Officer shall be vested with the broadest powers to act in all circumstances in the name of BNP PARIBAS. He shall exercise these powers within the limit of the corporate purpose and subject to those powers expressly granted by French law to Shareholders’ Meetings and the Board of Directors. He shall represent BNP PARIBAS in its dealings with third parties. BNP PARIBAS shall be bound by the actions of the Chief Executive Officer even if such actions are outside the scope of the corporate purpose, unless BNP PARIBAS can prove that the third party knew that the relevant action was outside the scope of the corporate purpose or had constructive knowledge thereof in view of the circumstances. The publication of the Company’s Articles of Association alone shall not constitute such proof. The Chief Executive Officer shall be responsible for the organisation and procedures of internal control and for all information required by French law regarding the internal control report. The Board of Directors may limit the powers of the Chief Executive Officer, but such limits shall not be binding as against third parties. The Chief Executive Officer may delegate partial powers, on a temporary or permanent basis, to as many persons as he sees fit, with or without the option of redelegation. The remuneration of the Chief Executive Officer shall be freely determined by the Board of Directors. The Chief Executive Officer may be removed from office by the Board of Directors at any time. Damages may be payable to the Chief Executive Officer if he is removed from office without a valid reason, except where the Chief Executive Officer is also the Chairman of the Board of Directors. In the event that the Chief Executive Officer is a Director, the term of his office as Chief Executive Officer shall not exceed that of his term of office as a Director. Article 16 Upon proposal from the Chief Executive Officer, the Board of Directors may, within the limits of French law, appoint one or more individuals, who shall have the title of Chief Operating Officer, responsible for assisting the Chief Executive Officer. In agreement with the Chief Executive Officer, the Board of Directors shall determine the scope and term of the powers granted to the Chief Operating Officers. However, as far as third parties are concerned, the Chief Operating Officers shall have the same powers as the Chief Executive Officer. When the Chief Executive Officer ceases to perform his duties or is prevented from doing so, the Chief Operating Officers shall, unless the Board of Directors decides otherwise, retain their functions and responsibilities until a new Chief Executive Officer is appointed. The remuneration of the Chief Operating Officers shall be freely determined by the Board of Directors, at the proposal of the Chief Executive Officer. The Chief Operating Officers may be removed from office by the Board of Directors at any time, at the proposal of the Chief Executive Officer. Damages may be payable to the Chief Operating Officers if they are removed from office without a valid reason. Where a Chief Operating Officer is a Director, the term of his office as Chief Operating Officer may not exceed that of his term of office as a Director. The term of office of the Chief Operating Officers shall expire at the latest at the close of the General Shareholders’ Meeting convened to approve the financial statements for the year in which the Chief Operating Officers reach sixty-five years of age. However, the Board may decide to extend the term of office of the Chief Operating Officers until the close of the General Shareholders’ Meeting held to approve the financial statements for the year in which they reach sixty-six years of age. Article 17 Upon proposal from the Chairman, the Board of Directors may appoint one or two non-voting Directors (censeurs). Non-voting Directors shall be convened to and take part in Board meetings in an advisory capacity. They shall be appointed for six years and may be reappointed for further terms. They may also be removed at any time under similar conditions. They shall be selected from among the Company’s shareholders and may receive a remuneration determined by the Board of Directors. SECTION V SHAREHOLDERS’ MEETINGS Article 18 General Shareholders’ Meetings shall be composed of all shareholders. General Shareholders’ Meetings shall be convened and deliberate subject to compliance with the provisions of the French Commercial Code (Code de Commerce). As an exception to the last paragraph of article L. 225-123 of the French Commercial Code (Code de Commerce), each share carries one voting right, and no double voting rights are conferred. They shall be held either at the registered office or at any other location specified in the notice of meeting. They shall be chaired by the Chairman of the Board of Directors, or, in his absence, by a Director appointed for this purpose by the Shareholders’ Meeting. Any shareholder may, subject to providing proof of identity, attend a General Shareholders’ Meeting, either in person, or by returning a postal vote or by designating a proxy. Taking part in the meeting is subject to the shares having been entered either in the BNP PARIBAS’ registered share accounts in the name of the shareholder, or in the bearer share accounts held by the authorised intermediary, within the timeframes and under the conditions provided for by the French regulations in force. In the case of bearer shares, the authorised intermediary shall provide a certificate of participation for the shareholders concerned. The deadline for returning postal votes shall be determined by the Board of Directors and stated in the notice of meeting published in the French Bulletin of Compulsory Legal Announcements (Bulletin des Annonces Légales Obligatoires – BALO). At all General Shareholders’ Meetings, the voting right attached to the shares bearing beneficial rights shall be exercised by the beneficial owner. If the Board of Directors so decides at the time that the General Shareholders’ Meeting is convened, the public broadcasting of the entire General Shareholders’ Meeting by videoconference (visioconférence) or all telecommunications and remote transmission means, including Internet, shall be authorised. Where applicable, this decision shall be communicated in the notice of meeting published in the French Bulletin of Compulsory Legal Announcements (Bulletin des Annonces Légales Obligatoires – BALO). Any shareholder may also, if the Board of Directors so decides at the time of convening the General Shareholders’ Meeting, take part in the vote by videoconference (visioconférence) or all telecommunications and remote transmission means, including Internet, subject to compliance with the conditions set out in the applicable laws at the time of its use. If an electronic voting form is used, the shareholder’s signature may be in the form of a secured digital signature or a reliable identification process safeguarding the link with the document to which it is attached and may consist, in particular, of a user identifier and a password. Where applicable, this decision shall be communicated in the notice of meeting published in the French Bulletin of Compulsory Legal Announcements (Bulletin des Annonces Légales Obligatoires – BALO). SECTION VI STATUTORY AUDITORS Article 19 At least two principal auditors shall be appointed by the General Shareholders’ Meeting for a term of six financial years. Their term of office shall expire after approval of the financial statements for the sixth financial year. SECTION VII ANNUAL FINANCIAL STATEMENTS Article 20 The Company’s financial year shall start on 1st January and end on 31st December. At the end of each financial year, the Board of Directors shall draw up annual financial statements and write a management report on the Company’s financial position and its business activities during the previous year. Article 21 Net income for the year is composed of income for the year minus costs, depreciation, amortizations and impairment. The distributable profit is made up of the year’s profit, minus previous losses as well as the sums to be allocated to the reserves in accordance with French law, plus the profit carried forward. The General Shareholders’ Meeting is entitled to levy all sums from the distributable profit to allocate them to all optional, ordinary or extraordinary reserves or to carry them forward. The General Shareholders’ Meeting may also decide to distribute sums levied from the reserves at its disposal. However, except in the event of a capital reduction, no amounts may be distributed to the shareholders if the shareholders’ equity is, or would become following such distribution, lower than the amount of capital plus the reserves that are not open to distribution pursuant to French law or these Articles of Association. In accordance with the provisions of article L. 232-18 of the French Commercial Code (Code de Commerce), a General Shareholders’ Meeting may offer to the shareholders an option for the payment, in whole or in part, of dividends or interim dividends through the issuance of new shares in the Company. SECTION VIII DISSOLUTION Article 22 Should BNP PARIBAS be dissolved, the shareholders shall determine the form of liquidation, appoint the liquidators at the proposal of the Board of Directors and, in general, take on all of the duties of the General Shareholders’ Meeting of a French Public Limited Company (société anonyme) during the liquidation and until such time as it has been completed. SECTION IX DISPUTES Article 23 Any and all disputes that may arise during the life of BNP PARIBAS or during its liquidation, either between the shareholders themselves or between the shareholders and BNP PARIBAS, pursuant to these Articles of Association, shall be ruled on in accordance with French law and submitted to the courts having jurisdiction. 8.8Statutory auditors’ report on related party agreements Annual General Meeting held to approve the financial statements for the year ended December 31, 2024 This is a translation into English of a report issued in French and it is provided solely for the convenience of English-speaking users. This report should be read in conjunction with, and construed in accordance with, French law and professional auditing standards applicable in France. To the Annual General Meeting of BNP Paribas, In our capacity as statutory auditors of your Company, we hereby present to you our report on related party agreements. We are required to inform you, on the basis of the information provided to us, of the terms and conditions of those agreements indicated to us, or that we may have identified in the performance of our engagement, as well as the reasons justifying why they benefit the Company. We are not required to give our opinion as to whether they are beneficial or appropriate or to ascertain the existence of other agreements. It is your responsibility, in accordance with Article R. 225-31 of the French Commercial Code (Code de commerce), to assess the relevance of these agreements prior to their approval. We are also required, where applicable, to inform you in accordance with Article R. 225-31 of the French Commercial Code (Code de commerce) of the continuation of the implementation, during the year ended December 31, 2024, of the agreements previously approved by the annual general meeting. We performed those procedures which we deemed necessary in compliance with the professional guidance issued by the French Institute of Statutory Auditors (Compagnie nationale des commissaires aux comptes) relating to this type of engagement. These procedures consisted in verifying the consistency of the information provided to us with the relevant source documents. Agreements submitted for approval to the Annual General Meeting We hereby inform you that we have not been notified of any agreements authorized and concluded during the year ended December 31, 2024 to be submitted to the annual general meeting for approval in accordance with Article L. 225-38 of the French Commercial Code (Code de commerce). Agreements previously approved by the Annual General Meeting In accordance with Article R. 225-30 of the French Commercial Code (Code de commerce), we have been notified that the implementation of the following agreements, which were approved by the annual general meeting in prior years, continued during the year ended December 31, 2024. With M. Jean-Laurent Bonnafé, Director and Chief Executive Officer of your Company Non-compete agreement Nature, purpose and conditions At its meeting on February 25, 2016, your Board of Directors authorized the conclusion of a non-compete agreement between your Company and M. Jean-Laurent Bonnafé. Under this agreement, in the event that M. Jean-Laurent Bonnafé ceases to hold a position with your Company or carry out any work for its benefit, he undertakes not to exercise, directly or indirectly, any professional activity for a period of twelve months for the benefit of a banking, investment or insurance firm whose securities are admitted to trading on a regulated market in France or abroad, or for the benefit of a banking, investment or insurance firm in France whose securities are not admitted to trading on a regulated market. As consideration for this agreement, M. Jean-Laurent Bonnafé will receive an indemnity equal to 1.2 times the total of the fixed and variable remuneration (excluding multi-annual variable remuneration) he received during the year preceding his departure. One-twelfth of the indemnity would be paid each month. This agreement was concluded in order to protect the interests of your Company, its employees and its shareholders in the event of M. Jean-Laurent Bonnafé’s departure. Paris-La Défense, March 20, 2025 The Statutory Auditors French original signed by DELOITTE & ASSOCIES Damien Leurent Jean-Vincent Coustel ERNST & YOUNG et Autres Olivier Drion 8.9Person responsible for auditing the financial statements Statutory Auditors Deloitte & Associés 6, place de la Pyramide 92908 Paris-La Défense Cedex Ernst & Young et Autres Tour First - TSA 14 444 92037 Paris-La Défense Cedex Deloitte & Associés was re-appointed as Statutory Auditor at the Annual General Meeting of 14 May 2024 for a six-year period expiring at the close of the Annual General Meeting called in 2030 to approve the financial statements for the year ending 31 December 2029. It was first appointed at the Annual General Meeting of 23 May 2006. Deloitte & Associés is represented by Damien Leurent and Jean-Vincent Coustel. Ernst & Young et Autres was appointed as Statutory Auditor at the Annual General Meeting of 14 May 2024 for a six-year period expiring at the close of the Annual General Meeting called in 2030 to approve the financial statements for the year ended 31 December 2029. Ernst & Young et Autres is represented by Olivier Drion. Deloitte & Associés and Ernst & Young et Autres are registered as Statutory Auditors with the Versailles and Centre Regional Association of Statutory Auditors and placed under the “Haute autorité de l’audit”. 8.10Person responsible for the Universal registration document Person responsible for the Universal registration document and the annual financial report Mr. Jean-Laurent BONNAFÉ, Chief Executive Officer of BNP Paribas. Statement by the person responsible I hereby declare that, to the best of my knowledge, the information contained in the Universal registration document is in accordance with the facts and contains no omission likely to affect its import. I further declare that, to the best of my knowledge, the financial statements and consolidated financial statements are prepared in accordance with applicable accounting standards and give a true and fair view of the assets, liabilities, financial position, and profit or loss of the Company and all the entities included in the consolidation, and that the information provided in the management report (the contents of which are set out in the concordance table attached in chapter 9 of the annual financial report) includes a fair review of the development and performance of the business, profit or loss and financial position of the Company and all the entities included in the consolidation, and that it describes the principal risks and uncertainties that they face and it is prepared in accordance with applicable sustainability standards. Paris, 20 March 2025 Chief Executive Officer Jean-Laurent BONNAFÉ Tables of concordance Universal registration document Annual financial report (including the Management Report and the Report on Corporate governance) Universal registration document In order to assist readers of the Universal registration document, the following table of concordance cross-references the main headings required by the Delegated Regulation (EU) 2019/980 (Annex I), supplementing European Regulation 2017/1129 known as “Prospectus 3” and refers to the pages of this Universal registration document on which information relating to each of the headings is mentioned. Headings as listed by Annex I of Delegated Regulation (EU) No. 2019/980 Page 1. PERSONS RESPONSIBLE 1.1. Person responsible for the Universal registration document 939 1.2. Statement of the person responsible for the Universal registration document 939 1.3. Statement or report attributed to a person as an expert 1.4. Information from a third party 1.5. Approval from a competent authority 1 2. STATUTORY AUDITORS 938 3. RISK FACTORS 340-354 4. INFORMATION ABOUT THE ISSUER 4-7 5. BUSINESS OVERVIEW 5.1. Principal activities 8‑19 ; 231‑235 ; 912‑930 5.2. Principal markets 8‑19 ; 231‑235 ; 912‑930 5.3. History and development of the issuer 6‑7 5.4. Strategy and objectives 168‑169 5.5. Possible dependency 910 5.6. Basis for any statements made by the issuer regarding its competitive position 8‑19 ; 142‑153 5.7. Investments 295‑297 ; 674 ; 911 6. ORGANISATIONAL STRUCTURE 6.1 Brief description 4 ; 689 6.2. List of significant subsidiaries 303‑320 ; 666‑672 ; 912‑928 7. OPERATING AND FINANCIAL REVIEW 7.1. Financial condition 170 ; 190‑195 ; 636‑637 7.2. Operating results 142‑153 ; 160‑161 ; 174‑185 ; 190 ; 232 ; 636 8. CAPITAL RESOURCES 8.1. Issuer’s capital resources 194‑195 ; 336‑337 ; 663 8.2. Sources and amounts of cash flows 193 8.3. Borrowing requirements and funding structure 170 ; 534‑551 8.4. Information regarding any restrictions on the use of capital resources that have materially affected, or could materially affect, the issuer’s operations N/A 8.5. Anticipated sources of funds N/A 9. REGULATORY ENVIRONMENT 333 ; 356 10. TREND INFORMATION 168‑169 ; 911 10.1. Main recent trends 168‑169 ; 911 10.2. Trends likely to have a material impact on the issuer’s outlook 168‑169 ; 911 11. PROFIT FORECASTS OR ESTIMATES 11.1. Published earnings forecasts and estimates N/A 11.2. Statement on the main forecast assumptions N/A 11.3. Statement on the comparability of information N/A 12. ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES, AND SENIOR MANAGEMENT 12.1 Administrative and management bodies 33‑51 ; 79‑85 ; 95 ; 115 ; 122 12.2 Administrative and management bodies’ conflicts of interest 56‑58 ; 73‑74 ; 81‑82 13. REMUNERATION AND BENEFITS 13.1. Amount of remuneration paid and benefits in kind granted 87‑115 ; 281‑288 ; 299 13.2. Total amounts set aside or accrued by the issuer or its subsidiaries to provide pension, retirement or similar benefits 87‑115 ; 281‑288 ; 299 14. BOARD PRACTICES 14.1. Date of expiry of the current terms of office 35‑51 14.2. Information about members of the administrative bodies’ service contracts with the issuer N/A 14.3. Information about the Audit Committee and Remuneration Committee 68‑69 ;75‑77 14.4. Corporate governance regime in force in the issuer’s country of incorporation 52‑69 14.5. Potential material impacts on the Corporate governance 49 ; 79‑85 15. EMPLOYEES 15.1. Number of employees 4 ; 661 ; 690 ; 737 ; 752‑756 15.2. Shareholdings and stock options 22‑29 ; 87‑115 ; 216‑217 15.3. Description of any arrangements for involving the employees in the capital of the issuer 16. MAJOR SHAREHOLDERS 16.1. Shareholders owning more than 5% of the issuer’s capital or voting rights 20‑21 16.2. Existence of different voting rights 20 16.3. Control of the issuer 20‑21 16.4. Description of any arrangements, known to the issuer, the operation of which may at a subsequent date result in a change of control of the issuer 21 17. RELATED PARTY TRANSACTIONS 86‑115 ; 229 ; 300‑302 ; 936‑937 18. FINANCIAL INFORMATION CONCERNING THE ISSUER’S ASSETS AND LIABILITIES, FINANCIAL POSITION, AND PROFITS AND LOSSES 18.1. Historical financial information 5 ; 24 ; 142‑322 ; 635‑674 18.2. Interim and other financial information N/A 18.3. Auditing of historical annual financial information 323‑329 ; 675‑680 18.4. Pro forma financial information N/A 18.5. Dividend policy 25 ; 27‑28 ; 144 ; 665 18.6. Legal and arbitration proceedings 294‑295 18.7. Significant change in the issuer’s financial or trading position 911 19. ADDITIONAL INFORMATION 19.1. Share capital 20 ; 289‑290 ; 659‑660; 931 ; 948 19.2. Memorandum and Articles of association 931‑936 20. MATERIAL CONTRACTS 910 21. DOCUMENTS AVAILABLE 910 Headings as listed by Annex I of European Commission Delegated Regulation (EU) No. 2019/980 Pursuant to Annex I of Delegated Regulation (EU) 2019/980, the following items are incorporated by reference: the annual financial statements for the year ended 31 December 2023 and the associated Statutory Auditors’ report, the consolidated financial statements for the year ended 31 December 2023 and the associated Statutory Auditors’ report, the management report (the contents of which are set out in the concordance table attached in chapter 9 of the annual financial report) of Registration Document No. 24-0158 filed with the AMF on 22 March 2024. The information is available via the following link: https://invest.bnpparibas/en/document/universal-registration- document-2023; the annual financial statements for the year ended 31 December 2022 and the associated Statutory Auditors’ report, the consolidated financial statements for the year ended 31 December 2022 and the associated Statutory Auditors’ report, the management report (the contents of which are set out in the concordance table attached in chapter 9 of the annual financial report) of Registration Document No. 23-0143 filed with the AMF on 24 March 2023. The information is available via the following link: https://invest.bnpparibas/en/document/universal-registration- document-2022; the annual financial statements for the year ended 31 December 2021 and the associated Statutory Auditors’ report, the consolidated financial statements for the year ended 31 December 2021 and the associated Statutory Auditors’ report, the management report (the contents of which are set out in the concordance table attached in chapter 9 of the annual financial report)of Registration Document No. D.22-0156 filed with the AMF on 25 March 2022. The information is available via the following link: https://invest.bnpparibas/en/document/universal-registration- document-and-annual-financial-report-2021; Annual financial report (including the Management Report and the Report on Corporate governance) In order to assist readers of the annual financial report, the following table cross-references the information required by article L.451-1-2 of the French Monetary and Financial Code. Annual financial report Page Statement by the person responsible for the Universal registration document 939 The concordance table below makes it possible to identify in this Universal registration document the information that constitutes the management report of the Company (including the report on Corporate Governance) and the consolidated management report, as required by legal and regulatory provisions. I. Company and Group Business and Situation(1) Information (reference texts) Page Company and Group position over the past year (L.232-1 II and L.233-26 of the French Commercial Code) 4-5; 142-161; 168-170; 190-322; 636-674 Objective and comprehensive analysis of business performance, results and position of the Company and Group (L.232-1 II and L.233-26 of the French Commercial Code) 142-161; 168-170; 190-322; 636-674 Key financial performance indicators for the Company and Group (L.232-1 II and L.233-26 of the French Commercial Code) 142-161; 168-185 Foreseeable developments of the Company and Group (L.232-1 II and L.233-26 of the French Commercial Code) 168-169 Key events occurring between the financial year-end and the preparation date of the management report (L.232-1 II and L.233-26 of the French Commercial Code) 911 Company and Group research and development activities(2) (L.232-1 II and L.233-26 of the French Commercial Code) N/A Equity investments in, or takeovers of, companies that have their head office in France (L.233-6 and L.247-1 I of the French Commercial Code) 674 Business and results for the Company as a whole, Company subsidiaries and companies it controls by branch of activity (L.233-6 and L.247-1 I of the French Commercial Code) 8-19; 142-161 Existing branches of the Company and of Group companies (L.232-1 II and L.233-26 of the French Commercial Code) 912-930 Information on Company locations and businesses (L.511-45 and R.511-16-4 of the French Monetary and Financial Code) 303-320; 912-930 II. Risk factors and characteristics of internal control procedures Information (reference texts) Page Description of the main risks and contingencies faced by the Company and Group (L.232-1 II and L.233-26 of the French Commercial Code) 340-359 Objectives and policy for hedging each main transaction category by the Company and Group (L.232-1 II and L.233-26 of the French Commercial Code) 528-532 Exposure to price, credit, liquidity and cash flow risks of the Company and Group (L.232-1 II and L.233-26 of the French Commercial Code) 398-551 III. Information on share capital Information (reference texts) Page Name of individuals or legal entities holding directly or indirectly more than 5% of the share capital or voting rights and changes arising during the year (L.233-13 of the French Commercial Code) 20-21 Name of companies controlled and share of the Company’s share capital held by them (L.233-13 of the French Commercial Code) 303-320 Employee share ownership status (L.225-102 of the French Commercial Code) 20-21 Share disposals made to regularise cross-shareholdings (L.233-29 and R.233-19 of the French Commercial Code) N/A Information on share buyback transactions undertaken by the Company (L.225-211 of the French Commercial Code) 116-120; 289; 652 Any adjustments made to securities giving access to share capital (L.225-181, L.228-99, R.225-137, R.228-91 of the French Commercial Code) N/A Summary of transactions carried out by corporate officers, executives, certain company managers and persons with close connections to them during the past year and which have been the subject of a declaration (223-26 of the AMF General Regulation, L.621-18-2 and R.621-43-1 of the French Monetary and Financial Code) 115 IV. Other accounting, financial and legal information Information (reference texts) Page Information on payment terms (L.441-14 and D.441-6 of the French Commercial Code) 654 Expenses and charges referred to in Article 39.4 of the French General Tax Code (223 quater of the French General Tax Code) 674 Amount of dividends distributed for the prior three years and revenue distributed eligible for the 40% tax reduction (243 bis of the French General Tax Code) 24; 27-28 Injunctions or fines for anti-competitive practices (L.464-2 of the French Commercial Code) 904-905 Information on financial instruments with an agricultural commodity as their underlying and measures taken by the Company to prevent this having a significant impact on agricultural commodity prices (L.511-4-2 of the French Monetary and Financial Code) N/A Amount and features of loans financed or distributed by the Company or distributed as defined in III of Article 80 of the Planning Act for Social Cohesion Law No. 2005-32 of 18 January 2005 and hence covered by public guarantees (L.511-4-1 of the French Monetary and Financial Code) N/A Return on Company assets (R.511-16-1 of the French Monetary and Financial Code) 393 V. Sustainability information and vigilance plan Information (reference texts) Page Sustainability information of the Group (L.233-28-4, L.232-6-3 and R.232-8-4 of the French Commercial Code as transposed into French law in accordance with the publication requirements of the European Directive 2022/2464 of 14 December 2022 amending Regulation (EU) 537/2014 and Directives 2004/109/EC, 2006/43/EC and 2013/34/EU) 682-873 Essential intangible resources (L.232-1 II and L.233-26 of the French Commercial Code) N/A Information on actions to promote the link between the Nation and the armed forces (L.22-10-35 of the French Commercial Code) 750 Information on the impact of the Company and the Group’s activities on the fight against tax evasion (L.22-10-35 of the French Commercial Code) 777 Information for companies operating at least one facility listed under article L.515-36 of the French Environmental Code (L.232-1-1 of the French Commercial Code) N/A Information required under article 8 of Regulation (EU) 2020/852 entitled “Taxonomy Regulation” 732-736; 800-873 Vigilance plan (L.225-102-1 of the French Commercial Code) 878-898 VI. Report on Corporate Governance Information (reference texts) Page Information on the remuneration policy for directors and corporate officers (L.22-10-8 of the French Commercial Code) 87-94 Information on the remuneration and benefits in kind of the directors and corporate officers (L.22-10-9 Of the French Commercial Code) 95-108 Holding conditions for free shares allocated to corporate officers (L.225-197-1 of the French Commercial Code) N/A Conditions for exercising and holding options granted to directors and corporate officers (L.225-185 of the French Commercial Code) N/A List of all directorships and positions held in any company by each director and corporate officer during the year (L.22-10-10 and L.225-37-4 1° of the French Commercial Code) 35-50 Agreements entered into by one of the Company’s directors or corporate officers and a subsidiary of the Company (L.22-10-10 and L.225-37-4 2° of the French Commercial Code) 52 Summary table of capital increase delegations (L.22-10-10 and L.225-37-4 3° of the French Commercial Code) 116-120 Arrangements for exercising General Management (L.22-10-10 and L.225-37-4 4° of the French Commercial Code) 54-55 Composition, and conditions governing the preparation and organisation of the work, of the Board of directors (L.22-10-10 1° of the French Commercial Code) 35-49; 53-54, 61-69 Description of the diversity policy applied to the members of the Board of directors, as well as the objectives, how the policy was implemented and results obtained during the past financial year (L.22-10-10 2° of the French Commercial Code) 55-59; 79-85 Information on the way to ensure balanced representation of men and women in Management bodies and gender balance results 60; 749-750; 757-758; 884 Any limits to the powers of the Chief Executive Officer imposed by the Board of directors (L.22-10-10 3° of the French Commercial Code) 55 Corporate Governance Code prepared by corporate representative organisations to which the Company refers (L.22-10-10 4° of the French Commercial Code) 52 Arrangements for shareholder participation at the General Shareholders’ Meeting (L.22-10-10 5° of the French Commercial Code) 28-32 Description of the procedure relating to current agreements concluded under normal conditions put in place by the Company and its implementation (L.22-10-10 6° and L.22-10-12 of the French Commercial Code) 86 Main characteristics of the internal control and risk management systems of the Company and the Group as part of the process of preparing financial information (L.22-10-10 7° of the French Commercial Code) 123-139 Items that could have an impact in case of a public tender offer (L.22-10-11° of the French Commercial Code) 120 Annexes Page Table summarising Company results over the last 5 years (R.225-102 of the French Commercial Code) 673 Statutory Auditors’ report on the certification of sustainability information (L.233-28-4 III of the French Commercial Code) and on the verification of the disclosure requirements of the information provided for in article 8 of Regulation (EU) 2020/852 874-877 Statutory Auditors’ report on the Board of directors’ report on Corporate Governance (L.22-10-71 of the French Commercial Code) 121 FINANCIAL STATEMENTS Page Financial statements 636-674 Statutory Auditors’ report on the parent company financial statements 675-680 Consolidated financial statements 190-322 Statutory Auditors’ report on the consolidated financial statements 323-329 (1) Information on events after the Board of directors’ meeting of 3 February 2025 is not included in the management report. (2) Some of the corresponding activities and investments fall within the scope of the research tax credit base accounted in the section entitled “corporate income tax”.