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Notification by the ECB of the 2021 Supervisory Review and Evaluation Process (SREP)

BNP Paribas has received the notification by the European Central Bank of the outcome of the 2021 Supervisory Review and Evaluation Process (SREP), which states the capital requirements on a consolidated basis for the Group.

The Common Equity Tier 1 (CET1) requirement that the Group has to respect as from 1st March 2022 on a consolidated basis is 9.27% (excluding the Pillar 2 guidance), which includes 1.50% for the G-SIB buffer, 2.50% for the Conservation buffer, 0.74% for the Pillar 2 requirement and including 0.03% of countercyclical buffer. The requirement for the Tier 1 Capital is 11.02%. The requirement for the Total Capital is 13.35% (of which 1.32% for the Pillar 2 requirement).

The Pillar 2 requirement of 1.32% includes an add-on of 0.07% related to non-performing exposures on aged loans granted before 26 April 2019. The Group books provisions on these non-performing exposures based on an analysis of the intrinsic risk of loss according to applicable accounting standards and the latter could differ from the new supervisory expectations based on a fixed calendar of progressive provisioning1. Excluding this add-on, the Pillar 2 requirement remains unchanged at 1.25% compared to SREP 2020.

The Group is well above these regulatory requirements.

1. Addendum to the ECB Guidance to banks on non-performing loan published in March 2018 and Communication on supervisory coverage expectations for NPEs published in August 2019

BNP Paribas is the European Union's largest bank and a leading international banking player. It has a presence in 68 countries and more than 193,000 employees, including nearly 148,000 in Europe. The Group has key positions in its three operating divisions: Retail Banking for all the Group's retail banking networks and several specialised businesses, including BNP Paribas Personal Finance and Arval; Investment & Protection Services for savings, investment and protection solutions; and Corporate & Institutional Banking, which focuses on corporate and institutional clients. With a strong diversified and integrated business model, the Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through financing, investment, savings and protection services. In Europe, BNP Paribas comprises four domestic markets: Belgium, France, Italy and Luxembourg. The Group is rolling out its integrated retail banking model across Mediterranean basin countries, Turkey, Eastern Europe and the West Coast of the United States. As a leading international banking player, the Group has leading platforms and businesses in Europe, a strong presence in the Americas region, and a solid and fast growing business in Asia Pacific.BNP Paribas implements throughout all of its activities a Corporate Social Responsibility approach, enabling it to contribute to the construction of a sustainable future, while ensuring the Group's performance and stability.

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