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BNP Paribas Group: Results as at 31 december 2005

Very solid growth(1) in the business (data excluding BNP Paribas Capital)

Net Banking Income: 21.5 billion euros (+14.6%)
Gross Operating Income: 8.1 billion euros (+20.7%)
Cost/Income Ratio: 62.2% (- 1.9pt)

Net Income Group Share: 5,852 million euros (+25.1%)
After-tax ROE: 20.2 % (+2.2pts)

Earnings per share: 7.02 euros (+26.3%)
Dividend per share: 2.60 euros (+30%)

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Each of the Group's operational core businesses contributed to this powerful dynamic:

- French Retail Banking grew the number of its individual customer accounts by 155,000. Its robust organic growth helped boost its revenues(2) 6.2% to 5.45 billion euros.

- International Retail Banking and Financial Services, combining organic growth (115 new branches opened worldwide) and acquisitions (especially in the U.S. and Turkey), grew its revenues to 6.0 billion euros, up 19.3%

- With a record 34.1 billion euros in net asset inflows, Asset Management and Services reaped the benefits of a positive business cycle and grew its revenues 16.7% to 3.6 billion euros.

- Corporate and Investment Banking saw its customer revenues rise substantially and its net banking income jump 16.3% to 6.4 billion euros.

Shareholders will be asked to approve a dividend of 2.60 euros per share, up 30%, at the General Meeting of Shareholders.

On 14 February 2006, the Board of Directors of BNP Paribas, in a meeting chaired by Michel Pébereau, examined the Group's results for the fourth quarter 2005, and approved the accounts for the 2005 fiscal year.


In the fourth quarter 2005, the revenue growth dynamic observed in the first nine months of the year continued at an ever faster pace: net banking income grew 17.7% to 5,622 million euros. Excluding BNP Paribas Capital(3), growth was 19.1% (11.4% at constant scope and exchange rates).

Operating expenses and depreciation (3,669 million euros) grew 14.3% (6.0% at constant scope and exchange rates, excluding BNP Paribas Capital).

Gross operating income soared 24.7% (+22.1% at constant scope and exchange rates, excluding BNP Paribas Capital) to 1,953 million euros.

Net income group share totalled 1,335 million euros (+22.9%).


In 2005, the global economy experienced another year of sustained growth with corporates remaining in excellent financial health and equity markets in Europe and Asia rising sharply.

BNP Paribas' substantial global expansion enabled it to take advantage of this positive business cycle and to post sharply higher revenues. The Group's net banking income rose 14.1% to 21,854 million euros. Excluding BNP Paribas Capital(3), growth equals 14.6%. This growth is the result of a combination of vigorous organic growth (+11.2% at constant scope and exchange rates, excluding BNP Paribas Capital) and the accelerating effect of acquisitions, which delivered roughly 3.4 points in net banking income growth.

At 13,369 million euros, operating expenses and depreciation was up 11.1%, or 6.8% at constant scope and exchange rates, excluding BNP Paribas Capital. Gross operating income thus rose 19.2% to 8,485 million euros and the cost/income ratio improved 1.6 points, at 61.2%. Excluding BNP Paribas Capital(3), gross operating income rose 20.7% (+19.3% at constant scope and exchange rates) and the cost/income ratio improved 1.9 points, at 62.2%.

Net additions to provisions (610 million euros) fell 28.0% and operating income rose sharply, 25.5%, to 7,875 million euros.

Non-operating items contributed 549 million euros, up 15.1% compared to 2004. The tax burden rose 29.3% to 2,138 million euros and the share of minority interests was stable at 434 million euros.

The net income group share, 5,852 million euros, was up 25.1%. It takes into account a 30% increase in the Regulated Profit-Sharing. After-tax return on equity was 20.2%. Earnings per share came to 7.02 euros, up 26.3%.

The Board of Directors will propose at the Shareholders Meeting to pay a dividend of 2.60 euros, a 30% increase compared to last year.

As at 31 December 2005, the Group's international capital adequacy ratio was 11.0% and the Tier 1 ratio was 7.6%.

1) All growth rates and comparisons indicated in this presentation are on a comparable accounting standard basis, except where expressly stated. These figures are the result of a comparison of 4Q05 and 2005 annual results calculated on the basis of IFRS accounting standards as adopted by the European Union for 2005 and a simulated restatement of 4Q04 and 2004 annual results on the basis of these same accounting standards. The corresponding simulated figures have not been audited. The 4Q04 and 2004 annual figures, restated according to applicable 2004 IFRS accounting standards, appear in the detailed appendices but are not directly comparable to 4Q05 and 2005 annual figures due to differences with applicable 2005 IFRS accounting standards.

2) including 100% of revenues from French Private Banking.

3) According to IFRS accounting standards, capital gains realised on investments, notably private equity investments, are to be included in net banking income. As BNP Paribas Capital records capital gains that vary widely depending upon the quarters, it is relevant to analyse changes in net banking income, gross operating income and the cost/income ratio excluding BNP Paribas Capital.