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BNP Paribas Group : Results as at 31 March 2005

Strong Rise in Revenues and Profits
Net Banking Income: EUR 5.6 BN (+19.3% *)
Net Income Group Share: EUR 1.7 BN (+56.4% *)

Strong Growth
Across All Core Businesses

Accelerating revenue growth trending towards 5%
due to new sales and marketing systems and infrastructure

Strong growth in Net Banking Income (+13%)
due to buoyant organic growth (+6%), enhanced by acquisitions
New growth levers in emerging markets

Strong growth in Net Banking Income (+17%)
due to organic growth above 10% and added growth via acquisitions
Record levels of net new inflows

Among top industry performers
Revenues up 10%, Pre-tax Income up 35%
Positioned as a leader in highly technical business segments

* 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 Q1 2005 results calculated on the basis of IFRS accounting standards as adopted by the European Union for 2005 and a simulated restatement of Q1 2004 and Q4 2004 results on the basis of these same accounting standards. The corresponding simulated figures have not been audited. Figures for 1Q04, restated according to applicable 2004 IFRS accounting standards, appear in the detailed annexes but are not directly comparable to 1Q05 figures due to differences with applicable 2005 IFRS accounting standards.

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On 11 May 2005, the Board of Directors of BNP Paribas, in a meeting chaired by Michel Pébereau, reviewed the accounts for the first quarter of 2005.


BNP Paribas continues to demonstrate buoyant growth and recorded Net Banking Income of EUR 5,603 million in the first quarter 2005, up 19.3% from the first quarter 2004. Excluding BNP Paribas Capital 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 recorded capital gains this quarter significantly superior to those of Q1 2004, it is pertinent to analyse changes in net banking income, gross operating income and the cost/income ratio excluding BNP Paribas Capital., Net Banking Income grew 13.7%. This strong growth is the result of a combination of vigorous organic growth (which began in 2004) and the targeted acquisition strategy implemented by the Group (acquisitions realised in 2004 contributed EUR 140 million to revenues, representing three points of growth).

Changes in Operating Expenses and Depreciation trailed this trend and were limited to a rise of 8.6% versus first quarter 2004 (+5.2% at constant scope and exchange rates). Notably, since the start of 2005, the Group has recruited 2,400 people world-wide, of which 1,200 in France.

Gross Operating Income reached EUR 2,460 million, a rise of 36.5% from the first quarter 2004 (+21.9% excluding BNP Paribas Capital1). The Cost/Income ratio, at 59.8% excluding BNP Paribas Capital1, also improved by 2.7 points, confirming the extremely competitive position of the Group within the Euro zone.

Provisions, totalling EUR 103 million, are down 62.4% from first quarter 2004 levels, within a still favourable credit risk context.

Net Income Group Share rose 56.4% versus the first quarter 2004 (+57.8% at constant scope and exchange rates) to EUR 1,720 million.

Annualised return on equity after-tax was 23.8%. The Tier 1 ratio of Core Capital is estimated at 7.4% as at 31 March 2005.

All core businesses contributed to this healthy performance.