Annual - Report - BNP PARIBUS
Annual - Report - BNP PARIBUS
Annual - Report - BNP PARIBUS
MEETING SUPPORTING
OUR EMPLOYEES OUR CLIENTS
Our thanks to the photography agency La Despite the challenging financial climate
Company, which provided photos for this 2009 in 2009, BNP Paribas continued to play its
Annual Report, and to the three photographers essential role as a banker financing the
− Grégoire Korganow, Jean-Érick Pasquier and economy and its clients’ business development
Gérard Uféras – who travelled around the world – for retail, professional, and corporate clients
to meet BNP Paribas employees. Thanks also to alike. As proof of BNP Paribas’ commitment, this
the employees who took the time to speak with Annual Report contains thirty Short stories
them in Paris, Lyon, Brussels, London, Rome, illustrating some of the Bank’s concrete
New York, Boston, Hong Kong, Istanbul, Casa- actions for its clients in 2009. These eclectic
blanca, and Bahrain. short stories come from all four corners of the
world, passing from Europe to Asia and going
through the Maghreb, Caribbean, and United
States. They describe clients that the Bank
is proud to serve, as well as the exceptional
deals and best practices that have made
BNP Paribas the success it is today.
CONTENTS
MESSAGE FROM THE CHAIRMAN AND THE CEO / 02-05
BNP PARIBAS 10-YEAR BIRTHDAY / 06-07
BNP PARIBAS AROUND THE WORLD / 08-09
KEY FIGURES / 10-11
EXECUTIVE COMMITTEE / 12-13
THE BOARD OF DIRECTORS / 14-17
BNP PARIBAS AND ITS SHAREHOLDERS / 18-29
INNOVATION / 110-115
CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY / 116 -157
THE GROUP’S APPROACH / 118-125
HUMAN RESOURCES / 126-145
A PARTNER IN SOCIETY / 146-157
GLOSSARY / 158-167
02
2009 KEY A sharp
FIGURES rebound
NET EARNINGS
GROUP SHARE in 2009 net
5.8
BILLION EUROS
income mitment to help finance the French
economy. The Group’s loans to con-
sumers grew 5.1% during the year, and
NET BANKING INCOME its loans to companies expanded 3%.
Despite the sluggish economic cli-
40,191 mate in 2009, BNP Paribas performed
well during the year with a 93% re-
BNL completed its integration plan
in 20 09, thus exceeding the target
MILLION EUROS
bound in net income Group share to it set three years ago in spite of the
EUR 5,832 million. weaker-tha n - expected economic
GROSS OPERATING environment.
INCOME The Retail Banking business faced
16,851
strong headwinds in 2009 due to the Personal Finance demonstrated re-
global recession, but its employees put markable fl exibility and fully offset the
MILLION EUROS in a considerable effort to confront this rise in its cost of risk with higher gross
challenge. income.
NET INCOME
GROUP SHARE The Group’s Retail Banking strategy, At BancWest and Emerging Markets,
which aims to pool the resources and 20 09 was a particularly tough year
5,832 know-how of BNP Paribas’ worldwide
retail banking network, is now opera-
due to the persistently weak Ameri-
can economy and a severe recession
MILLION EUROS
tional, and has been enhanced by the in the Ukraine.
takeovers of Fortis Banque and BGL.
RETURN ON EQUITY These two subsidiaries’ employees BNP Paribas Fortis and BGL BNP Paribas
2009 ANNUAL REPORT MESSAGE FROM THE CHAIRMAN AND THE CEO 03
Investment Solutions took on a new Although BNP Paribas is one of the “BNP Paribas’
scale in 2009 thanks to its remarkable banks that best withstood the crisis,
resistance during the crisis. Total net in-
fl ows across all its businesses reached
the Group has decided to take proac-
tive measures to reform the variable
close client
EUR 25.5 billion in 2009, bringing the
annualised asset infl ow rate to 5.1% of
pay policy for its traders. These reforms
strictly adhere to the new national and
relationships are
assets under management. This rate
is higher than that in 2007 and nearly
international standards set forth by the
G20, and reflect the Group’s strong
the competitive
2.5 times that in 2008 (which was posi-
tive, extremely rare for a bank), prov-
desire for moderate compensation
schemes. For CIB as a whole, compen-
advantage that
ing that BNP Paribas’ appeal remained
strong throughout the fi nancial crisis.
sation represented 27.7% of revenue in
2009 – sharply lower than the ratio of
best weathered
Corporate & Investment Banking (CIB)
around 40% in previous years. the crisis.
boosted its profitability substantially
in 2009, fuelled in part by a return to
Our clients’ trust
more normal market conditions. How-
ever the main factor behind CIB’s
is our most
turnaround was the concerted effort
by all its employees. By scaling back
valuable asset.”
risky positions, controlling costs, and
refocusing its product line, CIB’s glo-
bal platform was able to return to solid
footing and make a sizable contribu-
tion to BNP Paribas’ 2009 profi t. This re-
markable performance underscores
the high quality and diversity of the
CIB platform, as well as the strength of
its customer-focused business model
and its ability to quickly adapt to new
market conditions.
04
Challenges
in 2010
One of the main challenges facing our
industry in 2010 will be to rebuild banks’
markets in order to become one of the
region’s leading players in asset man- THE GROUP’S
image, which has been severely dam-
aged by the crisis. All banks − even
agement and private banking. VALUES
those not significantly affected by the BNP Paribas’ close client relationships RESPONSIVENESS
crisis − have lessons to learn. Regulations are the competitive advantage that best
must also be intensified, but not to such weathered the crisis. The Group has al-
— Swiftly assessing
an excessive extent that banks can no ways been centred on its three traditional situations and
longer finance the economy. They also businesses, and our clients are grateful developments,
must convince their shareholders, cus- – their trust is our most valuable asset.
tomers, employees, and the broader
and identifying
This trust is built on BNP Paribas’ high-
society of the crucial role they play in quality products and services as well as opportunities
economic recovery as well as potential its extremely solid financial structure; the and threats
economic growth. Group has doubled its capital since the — Making decisions
start of the crisis. By continuing to focus
BNP Paribas’ development model has on its fundamental mission while main-
and taking effective
always been based on a balance taining a challenger spirit, BNP Paribas action
among its three core businesses − Retail stands to become the best-in-class in
Banking, Corporate & Investment Bank- terms of expanding sales, restoring the CREATIVITY
ing and Investment Solutions − all of public opinion of banks, and creating — Promoting initiative
which are dedicated to supporting the shareholder value.
real economy. Each business will strive and new ideas
to continue to combine meticulous risk — Rewarding people
management and cost control policies for their creativity
with a permanent drive for customer
satisfaction. COMMITMENT
Retail Banking as a whole, now opera-
— Devoting best efforts
tional, generates over EUR 18 billion of to customer service
annual revenue for the Group. Its priority and team success
in 2010 will be to continue to roll out its
integrated model through further joint
— Maintaining
investments and greater knowledge the highest standards
sharing. of behaviour
Corporate & Investment Banking’s AMBITION
business model is now more customer-
— Developing
focused than ever. After a buoyant 2009,
CIB will aim in 2010 to anchor its leader- an appetite
ship position in Europe, expand selec- for challenge
tively in North America, and leverage and leadership
the rapid growth in the Asian market.
— Working as a team
Investment Solutions will pursue its strat- to win a contest
egy to boost cross-selling with domestic in which the client
retail branches and win new customers.
A key challenge in 2010 will be the suc-
is judge
cessful integration of Fortis Banque, as
this merger dramatically increases the
scale of the asset management and
private banking businesses, establishes
a strategic partnership in insurance, and
expands the securities business’ plat-
form and network. Investment Solutions
will also continue to penetrate the Asian
2009 ANNUAL REPORT MESSAGE FROM THE CHAIRMAN AND THE CEO 05
BNP Paribas celebrates its 10-year birthday
BNP Paribas has continuously evolved over the ten years since it was
founded, adapting successfully to a rapidly-changing environment. The
Group has seized numerous opportunities along the way without losing sight
of its strategic goals, balanced business mix, careful risk management, and
effective cost-cutting measures.
19 9 9 –
1999- 2001 2002 2003 2004
2000
BNP and Paribas merge
In the Boardroom,
BNP Paribas acquires
its American subsidiary
BancWest, and on the
tennis court, the Bank
BNP Paribas expands
its Retail Banking network
in the Maghreb through
the opening of
BNP Paribas El Djazaïr
BNP Paribas splits
the roles of Chairman
and CEO, with Michel
Pébereau appointed as
the former and Baudouin
BNP Paribas acquires
Community First
Bankshares and Union
Safe Deposit Bank
in the United States of
after a long stock market becomes an official in Algeria, its specialised Prot as the latter. America, and BNP Paribas
battle to become Europe’s sponsor of the Davis Cup. financial services through Immobilier merges
9th-largest bank in terms the acquisitions of Facet with Abbey National
of market capitalisation and Consors (to reinforce France and Atis Real
with 80,000 employees. Cortal), and its Securities International in France.
business through the
acquisition of Cogent.
In the United States
of America, BancWest
becomes the 5th-largest
general services bank
in California following
its purchase of United
California Bank.
06
In 2000, BNP Paribas had 80,000 employees and operated primarily in France,
although it already had sites in 80 countries.
Ten years later, BNP Paribas has become the eurozone’s largest bank with four
domestic markets, a global footprint, a top-tier status, and over 200,000 employees.
This past decade has been punctuated with several milestones, some more
important than others, but all helping to turn BNP Paribas into a solid bank
with a human touch.
–20 09
2005 2006 2007 2008 2009
BNP Paribas acquires BNP Paribas acquires
BNL, Italy’s 6th-biggest
BNP Paribas introduces
three new brands:
BNP Paribas is named BNP Paribas buys
a 66% stake in BGL
Commercial Federal Global Bank of the Year
Corporation in the United bank (founded in 1913), BNP Paribas Personal 2008 by The Banker in Luxembourg, a 75%
States of America and propelling the Group into Investors (comprising magazine (a Financial stake in Fortis Banque,
buys a 50% stake in TEB, the top tier of European Cortal Consors, Times publication), and and a 25% stake in Fortis
the holding company banks with two domestic B*Capital, and a is one of the six top-rated Insurance Belgium
that owns Türk Ekonomi markets and 140,000 partnership with Geojit banks worldwide through Fortis Banque −
Bankasi, Turkey’s 10th- employees. in India), by Standard & Poor’s major transactions that
biggest private bank. BNP Paribas Investment (with an AA rating). further anchor the Group’s
The Group also buys Partners (an asset presence in Europe and
a 51% stake in UkrSibbank, management business), give it four domestic
Ukraine’s 3rd-largest bank and BNP Paribas markets: France, Italy,
in terms of assets. Personal Finance Belgium, and Luxembourg.
And acquisition of 19.2% (born from the merger By end-December,
equity interest in Nanjing of Cetelem and UCB). BNP Paribas has over
City Commercial Bank, 200,000 employees.
the 8th-largest city
commercial bank
in China.
BNP Paribas is one of Europe’s leading banking and financial services com-
panies with a global reach, and one of the 6 most solid banks in the
world according to Standard & Poor’s. All of the Group’s businesses oper-
ate across Europe, with France, Italy, Belgium, and Luxembourg compris-
ing its 4 Retail Banking domestic markets. BNP Paribas has one of the largest
international networks in the world with operations in over 80 countries.
BNP Paribas holds strong positions in each of its 3 businesses:
RETAIL BANKING
INVESTMENT SOLUTIONS
CORPORATE & INVESTMENT BANKING
08
… AND AROUND THE WORLD
ASIA OCEANIA
10,100
employees
700
employees
RESULTS
(IN MILLIONS OF EUROS)
WORKFORCE
31 December 2008 31 December 2009
World 173,200 201,700
Europe (including overseas department and territories) 132,700 159,800
10
Revenues
(in millions of euros)
40,191
27,943 31,037 27,376
21,854
16,851
10,878 12,273
8,485 8,976
7,308 7,822
5,852 5,832
3,021
Earnings
(in euros)
per share*
Return
(in %)
on equity**
** Return on equity is calculated by dividing
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)
20.2 21.2 19.6 by average equity attributable to equity
holders at 1 January and 31 December
Market capitalisation
(in billions of euros)
(source: Bloomberg)
RDPREESNIDAVE
PH PPEUTIVBEO
IILLIIP V
VIC E- ENT,
NIOR EXEC
SE CER
IAL OFFIC
CHIEF FINANC
FRÉDÉRIC LA
HEAD OF GROVENIR
UP HUMAN
RESOURCES
FABIO GALL
HEAD OF BN IA
L BC
12
BAUDOUIN PRO
T
CHIEF EXECUTIV
E OFFICER
E
APIASS VESTMENT
AELADAOIFNCOPRPORATE & IN MICHEL KON
H
BANKIN
G CHIEF RISK CZATY
OFFICER
URENT
JEAN-LAAFÉ
BHO NN ATING OFFICER
C IEF OPER
GEORGES
CHODRON
CHIEF OPE D
RATING O E COURCE N CLAMOR
E GI
JEA N
OHE LIANCE
FFICER L NA NG DIRECT
, AD OF COMP
DINATOR
MA CONTROL COOR
AND INTERNAL
14
JEAN-MARIE FRANÇOIS ALAIN DENIS JEAN-FRANÇOIS
GIANNO GRAPPOTTE JOLY KESSLER LEPETIT
(1) (1)
Principal function (1) : Principal function (1) : Principal function : Principal function : Principal function (1) :
Sales Associate Honorary Chairman of Director of Air Liquide Chairman and Chief Chairman of Conseil national
Legrand, Company Director Executive Officer of Scor SE de la comptabilité
• Born on 7 September 1952 • Born on 18 April 1938
• Elected to a three-year • Born on 21 April 1936 • Appointed on 23 May 2006 • Born on 25 March 1952 • Born on 21 June 1942
term by BNP Paribas • Appointed on 21 May 2008 • Term expires at the 2009 AGM • Appointed on 13 May 2009 • Appointed on 21 May 2008
employees on 5 February • Term expires at the 2011 AGM • First appointed to the Board • Term expires at the 2012 AGM • Term expires at the 2011 AGM
2009 • First appointed to the Board on 28 June 1995 • First appointed to the Board • First appointed to the Board
• First appointed to the Board on 4 May 1999 • Number of BNP Paribas on 23 May 2000 on 5 May 2004
on 15 March 2004 • Number of BNP Paribas shares held (2): 3,143 • Number of BNP Paribas • Number of BNP Paribas
(Jean-Marie Gianno shares held (2): 2,869 • Office address: shares held (2): 2,269 shares held (2): 8,461
was an employee • Office address: 75, quai d’Orsay • Office address: • Office address:
representative on the 128, avenue de Lattre-de- 75007 Paris, France 1, avenue du Général- 30, boulevard Diderot
Board of Banque Nationale Tassigny 87045 Limoges, de-Gaulle 75572 Paris Cedex 12,
de Paris from 1993 to 1999) France Alain Joly’s term of office 92074 Paris-La Défense France
• Number of BNP Paribas expired at the AGM on Cedex, France
13 May 2009 Functions
shares held (2): 10 Functions
Functions at 31 December 2009 (1)
• Office address: at 31 December 2009 (1)
at 31 December 2009 (1)
21, avenue Jean-Médecin Director of:
06000 Nice, France Director of:
Director of: Smart Trade Technologies SA,
Legrand, Legrand France Bolloré, Dassault Aviation, Shan SA
Functions Fonds Stratégique
at 31 December 2009 (1) Member of the Supervisory
d’Investissement, Invesco Ltd Member of:
Board of:
(United States) Board of the Qatar Financial
Member of: Michelin
Center Regulatory Authority
Comité des établissements Member of the Supervisory (Doha), Collège de l’Autorité
de crédit et des entreprises Board of: des Marchés Financiers,
d’investissement (CECEI), Yam Invest NV (Netherlands) Conseil de normalisation
Confrontation (a European
des comptes publics
think-tank) Non-Voting Director of:
Financière Acofi SA, Gimar
Finance & Cie SCA
Member of:
Commission Économique
de la Nation, Conseil
Économique et Social, Board
of Directors of Association
de Genève, Board of the
French Foundation for
Medical Research, Comité
des Entreprises d’Assurance,
Strategy Board of Comité
Européen des Assurances
Chairman of:
Reinsurance Advisory Board,
Global Reinsurance Forum,
Board of Directors of Siècle
(1) Functions shown in italics are not governed by French Act no. 2001-401 of 15 May 2001 concerning multiple directorships.
(2) At 31 December 2009.
Michel PÉBEREAU
Chairman of the Board of Directors
(6)
2009 700,000 29,728 3,598 733,326
(2008) (700,000) - (29,728) (1,671) (731,399)
Baudouin PROT
Chief Executive Officer
(6)
2009 950,000 90,318 5,212 1,045,530
(2008) (945,833) - (118,907) (5,064) (1,069,804)
Jean-Laurent BONNAFÉ
Chief Operating Officer
(6)
2009 563,172 51,638 3,329 618,139
(2008) (5) (166,667) - (18,958) (1,445) (187,070)
Total remuneration payable
3,113,570
to the Group’s corporate officers for 2009
(for 2008) (2,706,104)
(1) Remuneration actually paid in 2009.
(2) Variable remuneration payable for 2008 and 2009.
(3) The Chairman of the Board of Directors and the Chief Executive Officer do not receive directors’ fees from any Group companies other than from BNP Paribas SA,
and from Erbé in the case of the Chief Executive Officer. Directors’ fees received by the Chief Executive Officer from Erbé are deducted from his variable remuneration.
Georges Chodron de Courcel receives fees in his capacity as a director of BNP Paribas Suisse, Erbé and BNP Paribas Fortis. These fees are deducted from his variable remuneration.
Jean-Laurent Bonnafé receives fees in his capacity as a director of BNL and BNP Paribas Fortis. Given the executive duties he plays at BNP Paribas Fortis, the fees he receives
in his capacity as a director are not deducted from his variable remuneration. Conversely, the fees received by Jean-Laurent Bonnafé in his capacity as a director of BNL
are deducted from his variable remuneration.
(4) The Chairman of the Board of Directors, the Chief Executive Officer and the Chief Operating Officers each have a company car and a mobile telephone.
(5) For the period from 1 September to 31 December 2008.
(6) At the date of the AMF’s approval of the 2009 registration document, the Board of Directors of BNP Paribas had not yet determined the variable component of corporate officers’
remuneration for 2009. The Board of Directors’ decision will be presented in an update of the registration document and this report in due course.
— Directors who are not Group em- — The fees paid to Board Commit- a fixed fee of EUR 2,973 and a variable
ployees receive no remuneration tee members have also remai - fee of EUR 1,239 per meeting.
from BNP Paribas other than Direc- ned u ncha nged s ince 2 0 0 5 at — Based on the above, the Board
tors’ fees. (2) EUR 5,946, which includes a fixed fee has decided to grant a total of
— Directors’ fees have remained un- of EUR 2,973 and a variable fee of EUR 532,509 as Directors’ fees for 2009,
changed since 2005 at EUR 29,728 per EUR 495.50 per meeting. The Chair- compared with EUR 523,724 for 2008.
Director, half of which (EUR 14,864) is men of the Financial Statements The AGM on 18 May 2005 set the
fixed and the remainder is allocated Committee and the Internal Control, overall amount of Directors’ fees at
based on a fee of EUR 1,061.71 per Risk Management, and Compliance EUR 780,000.
meeting. The Chairman of the Board Committee are paid a fi xed fee of
does not receive any supplemental EUR 15,000 and a variable fee of
Directors’ fees. Directors living outside EUR 1,239 per meeting. The Chairmen
(1) AFEP-MEDEF Corporate Governance Code (Point 18).
France are paid 1.5 times the fi xed of the Corporate Governance and
(2) The Directors employed by the Group are Patrick
portion of Directors’ fees as compen- Nominations Committee and the Auguste, Jean-Marie Gianno, Michel Pébereau,
and Baudouin Prot.
sation for their additional expenses. Compensation Committee are paid
18
Changes
in share
ownership
Changes in the Bank’s ownership structure over the last three years are as follows:
Société Fédérale de Participations et — On 19 May 2009 (AMF disclosure at the time represented 9.83% of its
d’Investissement (SFPI) became a sha- no. 209C0702), SFPI disclosed that its share capital and 11.59% of its vo-
reholder in BNP Paribas at the time of the interest in BNP Paribas’ capital and ting rights. The disclosure stated that
integration of the Fortis group in 2009. voting rights had risen above the neither the Belgian government nor
During 2009, SFPI made two threshold 5% and 10% disclosure thresholds fol- SFPI were considering taking control
crossing disclosures to the Autorité des lowing its transfer of a 74.94% stake of BNP Paribas.
Marchés Financiers (AMF). in Fortis Banque SA/NV in return for On the same day (19 May 20 09) ,
121,218,054 BNP Paribas shares, which BNP Paribas informed the AMF (AMF dis-
28/02/07
28/02/09
30/04/07
31/10/07
31/12/07
28/02/08
30/04/08
30/06/09
30/06/07
31/08/07
31/08/08
31/10/08
31/12/08
3 0/04/09
31/08/09
31/10/09
31/12/09
20
AVERAGE MONTHLY SHARE PRICES AND MONTHLY HIGHS AND LOWS
SINCE JANUARY 2008*
HIGH
LOW
AVERAGE
Source: Datastream.
80
67.66
70 66.41 66.58 61.67 58.38
59.72 58.25 59.30 57.99 59.13
60 44.72 53.86 53.50 53.96 55.92 55.30
20
10
22.40
54.26
44.04
63.45
63.48
48.43
45.42
34.02
56.25
56.56
63.42
66.34
April 08 68.24
50.63
56.84
52.34
56.86
63.86
33.53
56.27
28.59
50.87
52.57
42.67
55.21
63.90
54.61
34.97
55.92
28.67
20.78
50.77
60.95
March 08 62.81
69.34
49.84
69.32
39.32
71.65
63.18
47.38
57.34
58.15
50.14
31.98
39.12
47.91
21.12
December 08
December 09
September 08
September 09
January 08
February 08
May 08
June 08
July 08
August 08
October 08
November 08
January 09
February 09
April 09
May 09
June 09
July 09
August 09
March 09
October 09
November 09
(*) Share prices have been adjusted to account for the capital increase with preferential subscription right issue carried out from 30 September to 12 October 2009.
However, the trend turned in early — Daily trading volume on Euronext of trading venues and growth in al-
2009, and the share price rose from Paris averaged 5,374,599 shares in ternative securities trading methods,
EUR 29.40 at 31 December 2008 to 2009, down 22.5% on the 2008 figure such as multilateral trading facilities
EUR 55.90 at 31 December 2009. This of 6,936,205. Rather than a decrease (MTFs) and systematic internalisers.
90.14% increase comfortably beat in liquidity, this reflects the implemen-
the 22.32% rise in the CAC 40 index, tation of MiFID (Markets in Financial
the 48.92% rise in the DJEuroStoxx Instruments Directive) which, from
Banks index and the 46.92% rise in the 1 November 2007, abolished the
DJStoxx Banks index over the same concentration rule requiring orders
period. to be routed through regulated mar-
kets. The abolition led to deregulation
Overall, since the financial crisis broke
in early July 2007, BNP Paribas’ share
price has fallen by 34.91% , slightly
less than the 34.99% decline in the TRADING VOLUME ON EURONEXT PARIS IN 2009
CAC 40 index. Over the same pe- (DAILY AVERAGE)
riod, the European and eurozone IN MILLIONS OF EUROS
IN THOUSANDS OF SHARES
bank indexes are down 56.71% and
52.59 % respectively. As a result,
BNP Paribas has outperformed the
eurozone bank index by 17.68% and
the European bank index by 21.8%.
246.5
265.4
6,286
5,605
4,662
3,447
4,481
3,869
9,464
6,887
166.2
192.0
5,753
3,573
338.1
7,422
221.2
189.4
215.0
207.0
329.1
151.5
197.3
March
April
January
May
June
July
August
September
October
November
(1) Based on the average number of shares outstanding during the year.
(2) Before dividends. Net book value based on the number of shares outstanding at year-end.
(3) Subject to approval at the Annual General Meeting of 12 May 2010.
(4) Dividend recommended at the Annual General Meeting expressed as a percentage of earnings per share.
(5) Registered during trading.
* Data in the above table have been adjusted to refl ect share issues with preferential subscription rights maintained:
— March 2006 (adjustment ratio = 0.992235740050131);
— from 30 September to 13 October 2009 (adjustment ratio = 0.971895).
shareholders
shares at end
Share price at of calculation Initial Effective
Investment the investment period investment annual rate of
Holding period date date (euros) (31/12/2009) multiplied by return
Since
18/10/1993 36.59 3.75 x5.73 +11.37%
Total Shareholder privatisation
Return (TSR): 16 years 03/01/1994 43.31 3.42 x4.41 +9.72%
15 years 03/01/1995 37.20 3.35 x5.04 +11.38%
Calculation parameters:
14 years 02/01/1996 33.57 3.28 x5.47 +12.90%
— dividends reinvested in BNP shares,
13 years 02/01/1997 30.40 3.19 x5.86 +14.57%
then in BNP Paribas shares; 50% tax
credit included until tax credit system 12 years 02/01/1998 48.86 3.09 x3.54 +11.09%
abolished in early 2005; 11 years 04/01/1999 73.05 3.03 x2.32 +7.93%
— preferential subscription rights exer- Since inception
cised in the March 2006 and October 01/09/1999 72.70 2.94 x2.26 +8.22%
of BNP Paribas
2009 capital increases; 10 years 03/01/2000 92.00 2.94 x1.79 +5.99%
— returns stated gross, i.e. before any
9 years 02/01/2001 94.50 2.86 x1.69 +6.03%
tax payments or brokerage fees.
8 years 02/01/2002 100.40 2.77 x1.54 +5.57%
Calculation results: 7 years 02/01/2003 39.41 1.34 x1.90 +9.62%
The following table indicates, for va- 6 years 02/01/2004 49.70 1.29 x1.45 +6.39%
rious periods ending 31 December 2009,
5 years 03/01/2005 53.40 1.24 x1.29 +5.30%
the total return on a BNP share, then a
BNP Paribas share, as well as the effec- 4 years 02/01/2006 68.45 1.19 x0.97 -0.66%
tive annual rate of return. 3 years 02/01/2007 83.50 1.14 x0.77 -8.55%
2 years 02/01/2008 74.06 1.10 x0.83 -8.71%
1 annual 02/01/2009 30.50 1.05 x1.93 +93.27%
22
BNP Paribas uses two comparative methods to measure the value created for shareholders, based on a medium- to long-term
investment period reflecting the length of time during which the majority of individual investors hold their BNP Paribas shares.
Total shareholder return on an investment Investment of EUR 53.40 on 1 january Investment of EUR 53.40 on 1 january
in BNP Paribas shares 2005 in a “Livret A” passbook account: 20 05 in 5 -year French government
Calculation basis The interest rate on the investment bonds:
date was 2.25% , reduced to 2% on The five-year BTAN interest rate on that
Initial investment = 1 share at the opening
1 August 2005. The interest rate was date was 3.0825%. At the end of each
price on 3 January 2005 = EUR 53.40
increased twice in 2006, to 2.25% on subsequent year, interest income is rein-
Dividends reinvested 1 February and to 2.75% on 1 August, vested in a similar note on the following
Preferential subscription rights exercised and to 3% on 1 August 2007. The inte- terms:
in the March 2006 and October 2009 rest rate was increased twice more in — 2.99393% (BTAN) in January 2006 for
capital increases. 2008, to 3.50% on 1 February and to 4% 4 years,
Value at 31 December 2009: 1.2363 sha- on 1 August. There were three changes — 3.89016% (BTAN) in January 2007 for
res at EUR 55.90, i.e. EUR 69.11. in 2009, with the interest rate being re- 3 years,
duced to 2.50% on 1 February, 1.75% on — 4.07272% (BTAN) in January 2008 for
29.4% increase in initial investment
1 May and 1.25% on 1 August. At 31 De- 2 years,
Effective rate of return: 5.30% per year cember 2009, this investment was worth — 3.049% in January 2009 for 1 year
EUR 60.73, an increase of EUR 7.33 (Euribor).
(+13.7%), as opposed to an increase At the end of fi ve years, the accrued
of EUR 15.71 (+29.4%) per BNP Paribas value of the investment is EUR 62.22,
share over the same period. an increase of EUR 8.82 (+16.5%), just
over half of the increase of EUR 15.71
(+29.4%) per BNP Paribas share over
the same period.
8.82
7.33
24
Shareholder
Liaison
Committee
to meet increasingly strict transparency
and regulatory disclosure requirements,
BNP Paribas regularly adds sections to its
website and improves existing sections
with enhanced content (particularly as
regards the glossary) and new functions.
The financial calendar gives the dates of
important forthcoming events, such as
the AGM, results publications and sha-
reholder seminars.
© Yves Denoyelle
After its formation in 2000, BNP Paribas in the Group’s various financial publica-
decided to create a Shareholder Liaison tions, inviting new candidates to come
Committee to help the Group improve forward. Any shareholder can become
communications with its individual sha- a candidate.
reholders. At the Shareholders’ Meeting In accordance with the Committee’s
that approved the BNP Paribas merger, Charter – i.e. the Internal Rules that all
the Chairman of BNP Paribas initiated the Committee members have adopted –
process of appointing members to this the Committee met twice in 2009, on
Committee, which was fully established 20 March and 25 September, in addi-
in late 2000. tion to taking part in the Annual General
Headed by Michel Pébereau, the Com- Meeting and attending the “Actionaria”
mittee includes ten shareholders who shareholder fair. The main topics of dis-
are both geographically and socio-eco- cussion included:
nomically representative of the indivi- — BNP Paribas’ ownership structure and
dual shareholder population, along with changes therein, particularly among
two employees or former employees. individual shareholders;
Each member serves a three-year term. — the periodical publications which
When their terms expire, announce- provide information on the Group’s
ments are published in the press and/or achievements and strategy;
3.26
3.01 dedicated web server, allowing them
to view registered share accounts and
2.53
Meetings.
1.16
1.16
1.09
1999
2000
2001
2002
2009
2003
2004
2005
2006
2007
2008
(1) Dividend recommended at the 12 May 2010 Annual General Meeting expressed as a percentage of earnings per share.
(2) Subject to their having previously signed a “brokerage service agreement” (free of charge).
26
Annual
General
Meeting
BNP Paribas held two General Meetings
of shareholders in 2009.
BREAKDOWN OF QUORUM
Quorum
Total number of shares issued
909,963,093 58.58%
excluding treasury stock
— On 13 May 2009, BNP Paribas held a quorum and the results of the votes
combined Ordinary and Extraordi- cast were posted online the day af-
nary General Meeting on fi rst call. ter the meeting. Information about
The text of the resolutions and the vi- the meeting was also published in
deo of the meeting can be viewed the specialist press and a specifi c
on the BNP Paribas website, which letter was sent to shareholders sum-
is where the original live webcast marising the meeting.
took place. The composition of the
BREAKDOWN OF QUORUM
Quorum
Number of ordinary shares (excluding treasury stock) 910,022,144 53.62 %
RATE OF APPROVAL
RESULTS
(%)
ORDINARY MEETING
Resolution 1: Approval of the consolidated balance sheet at 31 December 2008 and the
95.94%
consolidated profit and loss account for the year then ended
Resolution 2: Approval of the parent-company balance sheet at 31 December 2008 and the parent-
96.01%
company profit and loss account for the year then ended
Resolution 3: Appropriation of profit and distribution of dividends 97.62%
Resolution 4: Agreements and commitments governed by Article L. 225-38
92.75%
of the Code de Commerce
Resolution 5: Share buybacks 97.90%
Resolution 6: Renewal of the term of office of Claude Bébéar as a director 97.02%
Resolution 7: Renewal of the term of office of Jean-Louis Beffa as a director 77.25%
Resolution 8: Renewal of the term of office of Denis Kessler as a director 75.19%
Resolution 9: Renewal of the term of office of Laurence Parisot as a director 92.24%
Resolution 10: Renewal of the term of office of Michel Pébereau as a director 94.09%
EXTRAORDINARY MEETING
Resolution 11: Approval of the transfer of Fortis Banque SA shares 99.55%
Resolution 12: Approval of the transfer of BGL SA shares 99.54%
Resolution 13: Issue of ordinary shares to be given in exchange for unlisted securities tendered,
95.91%
up to a maximum of 10% of the capital
Resolution 14: Amendment of terms of B shares 99.62%
Resolution 15: Reduction in the Bank's capital by cancelling shares 98.89%
Resolution 16: Powers to carry out formalities 99.74%
The 2009 Annual General Meeting was reholder Liaison Committee, to donate
an additional opportunity for BNP Paribas EUR 10 for every investor attending the
to demonstrate its commitment to sustai- meeting or voting online, to the “Coup
nable development, and to social and de pouce aux projets du personnel” (a
environmental responsibility. BNP Paribas helping hand for employee projects)
seeks to create value consistently, to programme. The programme was spe-
show its quality and its respect not only cifically developed by the BNP Paribas
for “traditional” partners comprising Foundation to encourage public-inte-
shareholders, clients and employees, rest initiatives for which Bank staff per-
but also for the community at large. The sonally volunteer their time and efforts.
Group considered it appropriate that The sums collected (EUR 18,030 in 2009,
these principles be reflected in its Ge- including EUR 1,390 through internet
neral Meetings. As a result, a decision voting) are donated in addition to the
was taken, in conjunction with the Sha- funds that the Bank already grants to this
28
programme via the BNP Paribas Foun-
dation, which operates under the aegis
Notice of meetings
For combined Ordinary and Extraordinary Disclosure
of the Fondation de France. Total 2009
contributions were divided between
General Meetings:
— holders of registered shares are notifi ed by
post; the notice of meeting contains the
agenda, the draft resolutions and a postal
thresholds
62 projects (34 in 2008), all of which were voting form;
— holders of bearer shares are notifi ed via
initiated by BNP Paribas staff. The sums announcements in the press, particularly
awarded vary according to the scale of investor and fi nancial journals; in addition In addition to the legal thresholds, and
the project, its nature and the commit- to legal requirements, BNP Paribas in accordance with Article 7 of the Ar-
sends the following documents aimed at
ment of employees. The projects relate boosting attendance: ticles of Association, any shareholder,
mainly to education, international co- − notices of meetings and a postal voting whether acting alone or in concert, who
form for shareholders who own over a
operation, healthcare, disabilities, and certain number of shares (set at 250 comes to hold directly or indirectly at
help for disadvantaged and socially shares in 2009); these same documents least 0.5% of the capital or voting rights
may be accessed freely on the website;
excluded people. − letters informing shareholders about the of BNP Paribas, or any multiple of that
The allocation of funds is contained in
General Meeting and arrangements for percentage up to 5%, is required to no-
taking part.
the notice convening the next General In total, nearly 64,000 of the bank’s tify BNP Paribas by registered letter with
Meeting.
shareholders personally received the return receipt.
information needed to participate in 2009.
The procedures for BNP Paribas’ Gene- In addition, staff at all BNP Paribas retail
outlets is specifi cally trained to provide Once the 5% threshold is reached, sha-
ral Meetings are defined in Article 20 of the necessary assistance and carry out the
the Bank’s Articles of Association. required formalities. reholders are required to disclose any
The Board of Directors calls an Ordinary increase in their interest representing a
General Meeting at least once a year to Attendance at meetings multiple of 1% of the capital or voting
vote on the agenda set by the Board. Any holder of shares may gain admittance rights of BNP Paribas.
to a General Meeting, provided that shares
The Board may call Extraordinary Ge- have been recorded in their accounts for at
The disclosures described in the pre-
neral Meeting for the purpose of amen- least three days. Holders of bearer shares vious two paragraphs shall also apply
must in addition present an entry card or
ding the Articles of Association, and certificate stating the ownership of the
when the shareholding falls below the
especially to increase the Bank’s share shares. above-mentioned thresholds.
capital. Resolutions are adopted by a
two-thirds majority of shareholders pre- Voting In the case of failure to comply with
sent or represented.
Shareholders who are unable to attend a these disclosure requirements, the un-
General Meeting may complete and return
The Ordinary and Extraordinary General to BNP Paribas the postal voting form/proxy disclosed shares will be stripped of vo-
enclosed with the notice of meeting. This ting rights at the request of one or more
Meeting may be called in a single no- document enables them to either:
tice of meeting and held on the same — vote by post; shareholders who hold a combined
— give their proxy to their spouse or another interest of at least 2% of the capital or
date. BNP Paribas will hold its next Ordi- shareholder (individual or legal entity);
nary and Extraordinary General Mee- — give their proxy to the Chairman of the voting rights of BNP Paribas.
Meeting or indicate no proxy.
ting on 12 May 2010 (1). Shareholders or their proxies present at the
Meeting are given the necessary equipment
to cast their votes. Since the General Meeting
of 13 May 1998, BNP Paribas has used an
electronic voting system.
Retail Banking operates branch net- In early 2009, the Group pooled all its exchanges and joint projects substan-
works in France, Italy, the USA and Retail Banking activities into a single or- tially during 2009, notably at the initia-
emerging markets, together with spe- ganisation, BNP Paribas Retail Banking, tive of Distribution, Markets & Solutions
cialised financial services. It is divided with the aim of: (central mission responsible for business
into six operating entities: — providing clients with the benefits of development of the retail banking seg-
— French Retail Banking, the branch a truly global network; ment), Wealth Management Networks
network in France; — industrialising activities, pooling (central mission responsible for the de-
— BNL bc, the branch network in Italy; major investments and transferring velopment of Wealth Management
— BancWest, the branch network in the know-how and innovation between across the banking networks) and
USA; the banking networks and the spe- Retail Banking Information Systems.
— Emerging Markets, renamed Europe cialised personal finance and equip- Communities comprising employees
Mediterranean in December 2009, ment solutions businesses; from all operating units were set up to
the banking network covering the — promoting the Group’s expansion in facilitate the sharing of best practices
Mediterranean Basin, plus central these businesses, both through ac- and uptake of the Group’s models, no-
and eastern Europe; quisitions and organic growth; tably concerning multi-channel distri-
— Personal Finance, comprising the — developing cross-selling between bution and wealth management.
specialist consumer credit and mort- the networks and the specialised During 2010, the Retail Banking busi-
gage financing businesses; retail financing businesses, and with nesses in Belgium and Luxembourg in-
— Equipment Solutions, dedicated BNP Paribas’ other segments, nota- herited respectively from BNP Paribas
to fi nancing equipment purchases bly Corporate & Investment Banking Fortis and BGL BNP Paribas are set to
by companies (Arval, BNP Paribas and Investment Solutions. join the Retail Banking activity.
Lease Group). To support the expansion of BNP Paribas
Retail Banking, six central missions have
been created to provide operating
units with the benefit of their exper-
tise in cross-functional activities and
projects. Thanks to this organisation,
the operating entities increased their
32
Individual In addition, 13,500 new graduates
opened a special savings account
— the ISO 14001 certification received
by BNP Paribas’ “Welcome & Serv-
tic services, especially for savings ac- divisions in Morocco, Tunisia and
counts and personal insurance, FRB Algeria to lower the fees on online
focused on tailoring its products and transfers, simplify the procedure for
services to individual client needs. opening linked accounts, offer repa-
BNP Paribas, SA au capital de 2 198 641 552 euros - Siège social : 16 bd des Italiens, 75009 Paris - 662 042 449 RCS Paris - Identifiant CE FR 76 662 042 449 - ORIAS n° 07022735 - Photo : Morgane Le Gall - réf. AF 09 MCQ 06/C
All of FRB’s distribution channels im- triation assistance through Mondial
plemented targeted marketing cam- Assistance (so that clients can be
paigns based on individual client’s buried in their home country and
interests and plans for the future. ensure help for their loved ones), and
FRB took the following steps to respond set up the fi rst two “Banking With-
to clients’ top concerns: out Borders” centres in the Barbès
— given the challenging market cli- branch in Paris and the Canebière
mate, helping clients buy their branch in Marseille.
own homes was a top priority for
the Bank. The volume of mortgages FRB affirmed its moderate fee policy, TRAVAUX ASSURANCE DÉMÉNAGEMENT
issued by FRB grew 4% in 2009 to which makes it now one of the cheapest RÉNOVATION SURVEILLANCE INSTALLATION
NE FAITES PLUS UN PROJET SANS NOUS EN PARLER
EUR 11.1 billion, thanks to a steep banks in Metropolitan France (according www.bnpparibas.net
AVK^ZkV
ber of society:
8dbbZcXZg
concerted efforts by all distribution
BNP Paribas, SA au capital de 2 526 774 896 euros - Siège social : 16 bd des Italiens, 75009 Paris - 662 042 449 RCS Paris - Identifiant CE FR 76 662 042 449 - ORIAS n° 07022735 - Photo : Nathaniel Goldberg - réf. AF 09 MCQ 15/A.
channels (for example, 6,000 loans — by sponsoring the Immeubles en
passed through the Net Crédit Immo Fête event during the 10th annual
platform, 80% of which were for non- Fête des voisins, an initiative that en-
SOLUTIONS COMPLÉMENTAIRE SERVICES FINANCEMENT
FRB clients). FRB also introduced a courages neighbours to get to know D’ÉPARGNE SANTÉ PRATIQUES DE PROJETS
wide range of services related to each other, around 900 BNP Paribas
buying a home – such as insurance, branches hosted Café des voisins,
smoothed payment schedules, a neighbourhood coffee for staff to
and rental deposits for the young meet people living nearby and build
– through a major advertising cam- stronger community ties;
paign called Le mois de la maison — through Simplidons, a free service
(Focus-on-the-Home Month); allowing clients to make donations
— FRB reinforced its commitment to to 8 associations and human aid
young clients, whether students, organisations, BNP Paribas matched
interns, or new graduates. The vol- the donations made by new clients in
ume of student loans issued by FRB December to double the amount of Ne faites plus un projet retraite sans nous en parler
www.bnpparibas.net
rose 9% in 2009, and over 1,000 in- money received by the NGOs;
terns signed up for a special loan de-
veloped specifically for their needs.
34
The level of coverage provided by FRB strengthens
its foothold
Short story
BNP Paribas assurance des emprun- CONSOGLOBE
teurs, the Bank’s payment protection in the French market
insurance, was awarded by Dossiers de ENCOURAGING
l’Épargne for the fourth year in a row, The number of personal accounts at RESPONSIBLE
and was enhanced with a new unem-
ployment option.
FRB grew for the fourth year in a row, CONSUMER
FRB now offers a loan consolidation
with 145,000 new accounts opened
— bringing the total number of new
BEHAVIOUR
service, Regroupement de crédits accounts since 2005 to 900,000. ConsoGlobe’s website was
à la consommation, that lets clients This rapid expansion is the result of designed in 2005 with both
personal and professional goals
adjust their monthly payments to bet- BNP Paribas’ targeted new customer in mind. “On the one hand,
ter suit their needs. This popular service acquisition strategy, which is based on I wanted to start a business
was used to refinance over 11,000 loans the following: in areas that are important to me:
totalling almost EUR 200 million in 2009. ethics, the environment,
— continuously adding new branches
and responsible buying,”
Although all French banks are now au- so as to cover high-potential regions recalls Jean-Marie Boucher,
thorised to offer Livret A savings ac- effectively. In the past six years, FRB the Chairman and CEO of
counts, BNP Paribas is the only bank has opened 170 new branches, re- ConsoGlobe. “On the other hand,
to also offer related life insurance con- I saw that French consumers are
located 160, and upgraded around aware of the benefits of organic
tracts – a huge hit among its clients (see 1,000 to the new “Welcome & Serv- products but don’t have the
inset). ices” model. The Bank also intro- resources to act.” That is why he
duced a centralised maintenance decided to set up ConsoGlobe, a
website that sells organic products,
FRB continued to offer investments in programme in order to ensure that provides practical information,
guaranteed-capital funds during the branch equipment can last several and lets customers trade products
year, for clients looking for security in years; for free – while upholding the
an uncertain environment. These funds founder’s strong values of
— attracting more clients through
“responsible buying over excessive
have collected around EUR 1 billion of the online channel. BNP Paribas consumption, community support
inflows. revamped the “Devenir Client” over individualistic thinking, and
(“Become a Client”) section of its quality over quantity.” A way to
promote “a new kind of consumer
website, www.bnparibas.net (now behaviour.” FRB assisted Jean-
backed by advisors at the Client Marie at every step of the way,
Relation Centre), opened the Net “acting as a major, long-standing
partner that can provide both
Agence fully online branch, and
flexibility and excellent customer
successfully introduced online mort- service,” he adds.
gage applications;
— a proactive mortgage policy and
partnerships with the market’s key
advisors. One out of every five new
accounts opened by a major cli-
ent in 2009 was done so after the
client obtained a mortgage from
BNP Paribas;
— an active programme targeting the
young through numerous national
and local partnerships, coupled
with intensive marketing efforts and
special advisors for young clients. In
2009, 180,000 people between the
ages of 18 and 30 opened accounts
with BNP Paribas;
— BNP Paribas’ positioning as a family
bank, backed by relevant products
and services (services for couples,
a Livret A Baby savings account,
etc.).
contracts, up from an already impres- and freelance The Bank undertook major initiatives
sive 2008. High take-up for the euro
fund more than offset sluggish de-
mand for unit-linked contracts, and
professionals to help finance the economy, such as:
— the fourth consecutive BNP Pari-
bas Open House in April and May
bolstered BNP Paribas’ market share 2009, which led to the fi nancing of
in the G11 (group of the leading ban- Despite a challenging mar- 3,000 new projects and highlighted
cassurance companies); ket climate, BNP Paribas the most original and innovative ideas;
— mortgage loans outstanding leapt has anchored its status — a pledge made in September 2009
7.1% in 2009 reflecting strong mo- as a bank for the real to meet with any entrepreneur, shop-
mentum in spite of a grim climate. economy keeper, craftsman, or small business
BNP Paribas’ share of this market rose BNP Paribas has become a more at- owner within 48 hours after they con-
20 basis points; tractive bank. It has affirmed that it is tact the Bank; and
— BNP Paribas supported clients by both healthy and profitable, put more — a commitment made in October
providing consumer loans ; per- advisors out in the fi eld, expanded its 2009 to offer car financing under at-
sonal loan origination increased range of products and services, and as- tractive terms and simplified proce-
10% on the back of a 23% climb in car sured existing and potential clients that dures, since cars are the most com-
financing. it is a bank they can trust. mon asset owned by entrepreneurs
— The proof lies in the 96,000 entrepre- and freelance professionals.
Signifi cant gains were also seen in neurs and freelance professionals
sales of General Insurance products that decided to make BNP Paribas In terms of socially responsible
(up 6% in car insurance and up 15% in their bank in 2009. These new clients banking, in 2009 BNP Paribas:
home insurance), and of Protection expanded the Bank’s business with — strengthened its ties with APCE
products (up 67% for personal accident this segment by 2.6% , following a (Agence pour la création d’entreprise);
cover, excluding payment protection 2.7% increase in 2008. — sponsored a business acquisition
insurance). — BNP Paribas’ efforts to build personal award given by the CRA Association
relationships with small business own- (French Association of Business Buyers
ers through a proactive, novel, and and Sellers)
coordinated approach – including — began offering loans, in association
specific account managers for both with ADIE, to people wishing to set up
entrepreneurs and freelance pro- their own business; and
fessionals – continued to bear fruit — introduced special products and
throughout the year. The number services for small entrepreneurs.
of professional clients who have en-
tered into a personal banking rela-
tionship with BNP Paribas rose by over
2% in 2009, and by over 5% for private
banking alone.
36
BNP Paribas staff worked side-by-
side with their clients throughout
A commitment to
steadfast support Short story
2009, offering advice and helping GUILLAUMIE HABITATION
EUR 5 billion for 40,000 projects;
them take advantage of the
assistance measures introduced by
as of 31 December 2009, 11,800
projects representing EUR 1,270 CHERISHING
the French government. These efforts
million had been proposed
under this initiative.
LONG-TERM
included:
BNP Paribas, in association with
RELATIONSHIPS
— several speeches on economic sup- ADIE (Association pour le Droit à
l’Initiative Économique), issued
“My father was with BNCI, then
port initiatives, in association with BNP. And BNP Paribas is my
2,200 micro-loans between
OSEO (French innovation agency) June 2008 and June 2009, company’s main bank. We have
and SIAGI (a company that provides representing a volume a mutually trusting relationship
of EUR 6.6 million. where we can really listen to each
guarantees for small businesses); In 2009, 3,200 self contactors
other,” remarks Jean-Claude
opened a current office account.
and Guillaumie, head of Guillaumie
— active involvement in support pro- Habitation, a company that makes
grammes for farmers and forest in- timber homes. Environmental
protection is a priority for this
dustry workers in Aquitaine who suf- family-run business, which is
fered damages from cyclone Klaus. always on the leading edge. For
example, it is the first home builder
to construct timber homes meeting
In light of the current economic
the thermal building regulations
climate, BNP Paribas has decided set by France’s Grenelle de
to introduce a reasonable, l’environnement summit,
appropriate pricing policy. scheduled to go into effect in 2012.
These environmentally-certified
The Bank updated the terms of its cur- homes have walls that are three
rent accounts, limited the average in- times as thick as regular homes
crease in banking fees, and capped as well as wooden rather than
the fees on payment incidents, direct concrete floors – constituting a
breakthrough in the field of energy
debits, and bank bills of exchange. In savings. Guillaumie Habitation uses
addition, on 1 November 2009 the Bank a highly-productive manufacturing
brought forward the date on which system and plans to continue
upgrading its equipment, “thanks
funds are available following cheques
to funding provided by
issued and deposited, wire transfers is- BNP Paribas, of course”
sued and received, and bank card pay- emphasises Jean-Claude.
ments. Payments made with deferred
debit cards are now debited the fi rst
working day of the following month.
G 37
2009 ANNUAL REPORT RETAIL BANKING
Short story – again demonstrating the Bank’s aim
to become the best online bank by
A conveniently-located
bank
MINATEC 2012. This online service allows clients BNP Paribas has designed special areas
NURTURING to take out equipment financing loans
of up to EUR 21,500 for durations of
for some of its large city-centre branches
38
Corporate
and
institutional
clients
Business Centres forge
stronger client
relationships in 2009
Increasingly specialised client require-
ments have led BNP Paribas to differen-
tiate its marketing approach according
to the various segments of corporate cli-
ents and large associations. The aim is
to position French Retail Banking as the
leading bank for this clientele by draw-
ing on the wide array of services offered
by the Group as a whole.
40
A SUCCESSFUL
TRANSACTION
FOR THE KEY
ACCOUNTS TEAM
BNP PARIBAS STRUCTURED
THE FINANCING FOR AN
ACQUISITION BY ATALIAN,
DEMONSTRATING HOW THE
GROUP’S COMPLEMENTARY
BUSINESSES CAN WORK
TOGETHER TO SERVE ITS CLIENTS.
RETAIL BANKING 43
2009 ANNUAL REPORT RE
Short story
BIANCAMANO
FINANCING
WASTE
MANAGEMENT
The amount of waste generated
by modern society − which is
fortunately turning more and
more to recycling – is huge and
still growing. Therefore proper
waste management, as required
by environmental regulations,
is more crucial than ever –
prompting a boom in the waste
management industry. In Italy,
BNL provided EUR 60.5 million
of financing to Biancamano to
help it acquire, through its Aimeri
Ambiente subsidiary, its main rival
Manutencoop Servizi Ambientali.
The acquisition “made Aimeri
Ambiente Italy’s leading waste
management provider,” explain
its managers. In addition, its
parent company Biancamano is
currently “the only listed company
in Italy operating in the waste
management industry.” BNL
supported its client through “all
steps of the transaction” and
stood apart thanks to “the trusting
relationship we had with the
bank’s employees, as well as their
professionalism and the time they
took to prepare all the elements
needed,” add the managers.
Rome
44
Retail
& Private
Banking
ATMs (Automated Teller Machines) — Continuing enhancement of distribu-
to reduce queues in branches; tion capacity
• pursuing the reduction of current • 50 new branches opened in 2009;
accounts churn rate. • improving the sales platform with
— Improving credit quality: the roll-out of a “shared agenda”
• new Head Office organisation with to manage sales appointments,
a Retail Credit Department respon- introduction of suggested product
sible for credit risk management; lists, introduction of an alert list.
• new recovery processes to man-
age sensitive situations.
— Developing a new investment advi-
sory service:
• improved analysis and evaluation
of clients’ investment portfolios in
terms of risk and return;
• adapting the model to a broader
segment of clients and improving
service quality for the “Affluent”
segment. [quantify the range of
AuM for this segment].
The Retail Banking business has had to — Devising a new strategy in devel-
overcome a number of adverse factors oping and distributing investment
such as historically low interest rates, a products:
deteriorating asset quality, the impact • renewal of product offer reducing
of gross domestic product contraction product complexity and limiting
on credit demand, the limited recovery up-front pricing component;
expected from the asset management • launching new flexible bancas-
industry, which BNL bc has offset by fo- surance products coupling a tra-
cusing on the following top priorities in ditional and a unit-linked com-
the course of 2009: ponent where the client chooses
— Enlarging the current account asset allocation and risk profile;
ba se a nd improving cu stomer • keeping a focus on “formula funds”
satisfaction: whose performance is linked to
• transparently priced offer to attract predefined and objective criteria.
new customers;
• improving service quality with intro-
duction of a new internet banking
and of cutting edge multi-function
Corporate
banking
Similarly to Retail, the Corporate Bank-
ing business has had to face the difficul-
• cross-selling with CIB and Invest-
ment Solutions.
vest- Short story
LAVANDERIA
ties of a recessionary economic envi- — Successful client acquisition:
ronment, increased competition on the • targeted commercial actions lead-ead- BEING THERE
funding side especially with local au- ing to a higher net client acquisi- IN TOUGH TIMES
thorities, more stringent operating and tion than in the previous year. “It was not easy to overcome
administrative regulations. Neverthe- — Stronger commercial efficiency: the grief and get back to work,”
less, thanks to a significant commercial • start up of new Corporate contact recalls Corrado Giallonardo. Like
most residents of L’Aquila, Italy,
effort, BNL bc has managed to reinforce centre; he lost loved ones during the
its competitiveness and enhance its rel- • increasing net asset inflows for pri- horrible earthquake that struck the
ative strength in its domestic market: vate banking. region in April 2009. And his small
— Widespread adoption of value-risk — Leveraging the brand: dry cleaning business was hardly
spared; most of his customers
pricing models: • development of new advertis- were hotels and restaurants, so the
• enhancing efficiency in capital ing creativity for the Corporate earthquake put an abrupt stop
allocation; Division; to his business. “I needed to do
• confirming the capacity to support two things at the time: obtain an
• production of a full range of com-
extension of my loan repayments,
creditworthy clients; munication material; and find the money to upgrade
• generating a revenues growth rate • upgrade contacts with top customers: my equipment so that I could
outpacing that of loan volumes; bank’s senior management involve- quickly start-up again once the
economy recovered.” BNL has
• proposing ad hoc solutions to limit ment and attendance of specific many clients in the region and
credit quality deterioration through conventions and seminars. immediately stepped forward.
a dedicated team. “The people I spoke with at BNL
— C ro s s - s e l l i n g o f va l u e - a d d e d were very understanding, and they
had confidence in me and my
products: business goals,” explains Corrado.
• exploiting the potential of the re- “They found a way to reschedule
newed business model with a dedi- my loan payments so that I could
make plans for the coming years
cated support;
without having to worry.”
• significant growth in businesses that
are key for the Corporate strategy:
cash management and trade fi-
nance, structured finance, fixed
income (hedging derivatives);
46
Short story
EMPORIUM ARREDAMENTI
STIM
STIMULATING
ECONOMIC
ECO
RECOVERY
REC
Empo
Emporium
Em p ri Arredamenti, headed
by
b yA les
Alessandro Spaziani, is
ac orne
cornerstone of the local
e conom in L’Aquila, Italy, as it
economy
p ro
providesovide furnishings and advice
tto oe ntre
entrepreneurs opening new Milan
h ote
hotels els in the region. So when the
ssmall
mall town
to fell victim to a terrible
e arthq
earthquake in April 2009 that killed
sseveral
evveral hundreds of people, many
o
off its customers
cu found themselves
su udden unable to pay their bills.
suddenly
“II found myself with no cash at
tthe
he exa
exact time when my business
was ne needed to boost the local
econom
economy,” explains Alessandro.
BNL has been Emporium
Arreda
Arredamenti’s bank since 1993,
and assassisted the company so that
it could let its customers, hurt by
the earthquake,
ear pay their bills at
their owown pace and without any
pressure
pressure. “I’ve always found BNL to
be both comprehensive and very
profess
professional. The bank gave me
the financing
na capacity I needed to BNL
48
Recent
developments
US GDP picked up in the third quarter
of 2009 after four consecutive quarters
of decline, thanks to a massive federal
stimulus plan and an excessively ac-
commodating monetary policy that
kept the Fed Funds rate bet ween
0% and 0.25%.
Never theless, unemployment con-
tinued to climb throughout the year.
Household consumption and business
investment showed signs of enduring
weakness, while real estate prices be-
gan to stabilise in late 2009 after an
uninterrupted four-year freefall.
In this deeply grim and unstable eco-
nomic climate, BancWest took advan- Miami
50
Short story
TENESOL
DEVELOPING
RENEWABLE
ENERGY
“BNP Paribas was eager
to expand further into the solar
energy market, and Tenesol
was looking for a large financial
partner to help it move into
the next league,” explains
Hervé La Touche, Head of the
French Overseas Departments
& Territories Division at Tenesol,
EDF’s solar energy subsidiary.
Therefore it didn’t take long to
persuade BNP Paribas to finance
TEB/Istanbul
Tenesol’s solar power generators
in Guadeloupe, Martinique,
Guyana, Réunion Island, and
TEB/Istanbul
52
Mediterranean Other
Basin regions
Mediterranean Europe continued to in- BNP Paribas enhanced its risk manage-
vest in the Mediterranean Basin in 2009 ment in the Gulf region and reduced its
through the opening of 34 new branches exposure to the most troubled sectors,
and the installation of 54 new ATMs. but the region still carries a high cost of
It pursued its restructuring efforts in risk for the Group.
Libya, which include enhanced risk In Africa, BNP Paribas had to cope with
control procedures, the installation of difficult situations in Guinea and Mada-
BNP Paribas’ IT system, and the hiring of
key managers.
gascar, but saw good performance in
Ivory Coast. Short story
Mediterranean Europe also strength- In Asia, BNP Paribas helped its partner ETA AFYON TAVUKCULUK
ened its partnerships with other busi- Bank of Nanjing extend its Retail Banking
nesses during the year, through: operations to Shanghai, Beijing, and SPURRING
— synergies with Personal Finance several cities in the wealthy Jiangsu ENTREPRENEURS
resulting from the merger between province, and increased its stake in the Once upon a time a Turkish egg
Cetelem and Retail Banking opera- Vietnamese bank Orient Commercial producer dreamed of seeing his
tions in Algeria, and the new Personal Joint Stock Bank (OCB) from 10% to 15%. business across the Anatolia border
and into foreign markets. But he
Finance operations in Egypt; didn’t know how to proceed, so
— partnerships with Private Banking in he kept postponing his dream for
Morocco and Egypt; and another day. Until the morning
— new services for Moroccans living when a TEB knocked on his door,
and − drawing from his corporate
overseas, in association with French training on SME consulting –
Retail Banking. easily persuaded the budding
entrepreneur to take the leap.
“He wrote a full report on my
company’s potential in foreign
markets. He explained that there
was no need to worry, State aid
would be available, and that there
wasn’t too much paperwork to fill
BNP Paribas/Bahreïn
out. He said that such a step could
only be beneficial.” And he was
right; after a first test shipment of
eggs to Iraq, international sales
skyrocketed and the business now
sells just as many eggs overseas
as in Turkey. “It’s this kind of
service that sets TEB apart from
its competitors. TEB has been a
genuine guide for me, in both my
business as well as my personal
finances.”
BNP Paribas Personal Finance markets come a key partner for retail chains, - combating overindebtedness;
a comprehensive range of solutions service providers, banks and insurance - improving access to lending for as
available at the point of sale (stores, companies. many people as possible;
car dealerships), through authorised - supporting each customer with fl ex-
business providers (brokers, estate Pursuing responsible growth ible solutions;
agents, property developers) or directly For over fifty years, BNP Paribas Personal - handling every customer who runs
via its customer relations centres and Finance, via its main trading brand into difficulties.
over the internet. Cetelem, which was created in 1953, BNP Paribas Personal Finance makes
Furthermore, BNP Paribas Personal has been committed to Responsible information about personal finance
Finance has made partnerships an Lending ®. Its vision of personal finance available to the public on its website:
area of specialisation in its own right consists of making a sustained contri- www.moncreditresponsable.com.
underpinned by its expertise in provid- bution to improving the personal and
ing all types of financing and services social quality of consumers’ lives. From
geared to the activities and commer- 2004, Cetelem started to publicise in
cial strategy of its partners. As a result, France its commitment to four major
BNP Paribas Personal Finance has be- priorities:
54
2009, a year of A new start for
consolidation and Findomestic in Italy
efficiency improvements In 2009 BNP Paribas and Intesa Sanpao-
for the new organisation lo reached an agreement concerning
In 2009, BNP Paribas Personal Finance Findomestic, a consumer credit com-
made targeted changes to its business pany that was initially 50% -owned by
model in response to the global finan- each bank. Under the terms of the
cial crisis and the ensuing increase in agreement, Intesa Sanpaolo will sell
risk, tighter access to liquidity, and de- its 50% stake to BNP Paribas Personal
cline in loan applications. The Bank out- Finance in two stages:
lined three strategy initiatives for three — 25% before the end of 2009; and
different regions: the PF Inside initiative — the remaining 25% between 2011
for emerging countries outside the and 2013.
eurozone, which aims to ensure sustained The full integration of Findomestic will
growth with the backing of BNP Paribas; generate signifi cant synergies in Italy,
the Industrialisation initiative in devel- one of BNP Paribas’ four domestic Eu-
oped countries, which aims to boost the ropean markets, along with France, Bel-
Bank’s operational efficiency and com- gium, and Luxembourg.
petitiveness; and the Cetelem Bank ini-
tiative in France, which aims to increase
TEB/Istanbul
customer loyalty through an expanded
range of products and services.
These changes were implemented
throughout 2009, with significant progress
Cetelem breaks new
made in integrating BNP Paribas’
ground with its Crédit
operating divisions in Algeria, Egypt,
BNP Paribas Personal Responsable ® (socially
Ukraine, and Poland. BNP Paribas Per-
Finance strengthens its responsible lending)
sonal Finance also completed two
foothold in Germany products
In 2009 BNP Paribas Personal Finance Cetelem launched a new multimedia
major transactions during the year with
signed a major cooperation agree- advertising campaign in 2009 to pro-
the acquisition of a controlling interest
ment with Commerzbank, Germany’s mote its “socially responsible lending”
in Italy’s Findomestic, and the sign-
leading private bank, to jointly offer products, underscoring its role as a re-
ing of a cooperation agreement with
consumer credit in Germany, Europe’s sponsible company.
Germany’s Commerzbank to bolster
biggest market for personal fi nance,
BNP Paribas Personal Finance’s pres-
in 2010. The new joint venture will be
ence in the country.
Commerzbank’s exclusive provider
of consumer credit. It will start with a
staff of 500 employees based in Mu-
nich and Duisburg, and over EUR 2 bil-
lion of financing loans – making it a full
player in the consumer credit market.
The joint venture will be 50.1% -owned
by BNP Paribas Personal Finance and
49.9 % - owned by Commer zbank. It
will operate through multiple distri-
bution channels comprising around
14,0 0 0 customer contact points at
C o m m e r z b a n k b ra n c h e s , A l l i a n z
branches, and point-of-sale financ-
ing outlets.
Arval — In 2009 Arval unveiled Arval Analytics, — Arval has unveiled a new online
In 2009 Arval successfully limited the ef- a strategic online reporting system application, called Motor Trade, in
fects of the financial crisis on its credit that lets corporate clients continu- Spain and Italy that allows profes-
risk and maintained a great deal of its ously manage their fl eets. With this sionals to sell vehicles that were for-
sales momentum. system, fleet managers can track merly leased by companies in the
— Arval formed a partnership with their fleet’s TCO* and CO2 emissions – Arval Group. Motor Trade will be in-
Renault to speed the roll-out of joint, valuable data for decision-making. troduced in France and Germany in
innovative solutions under the elec- — Arval has introduced the first True early 2010.
tric vehicle project resulting from the Cost of Operations model in the — Arval has completely offset the CO2
Renault-Nissan merger. Arval is con- United Kingdom. This computer emissions of all its vehicles in every
vinced that electric cars are one model was developed in associa- country in which it operates.
way to tackle problems related to tion with Buckingham University, and
both energy and the environment, can help Arval clients manage their
and plans to offer car hire services fleets more effectively and cut costs. *TCO = Total Cost of Ownership .
to promote this clean technology. It won the 2009 Fleet News award
for the best initiative in the leasing
industry.
56
BNP Paribas Lease Group
2009 was an exceptional year for
BNP Paribas Lease Group in terms of
new partnerships, extensionss of exis-
ting partnerships, and new product
launches.
— Technology Solutions had ad an
outstanding year with six ix new
European partnership agree-
ments and over 30 national tional
agreements, involving com-
panies such as Alcatel Lucent, cent,
SAP, AXA, AutoDesk, HR Access,ccess,
Cisco, Dassault Systems, and
Epson France.
— Equipment & Logistics Solu- olu-
tions signed a cooperation tion
agreement in Germany with
Ammann, a large construc-
tion and public works com-
uc-
m- Short
S hortt story
y
pany. This agreement gives ves H&A LOCATION
BNP Paribas Lease Group
exclusive access, under the
up
THINKING OUT
OF THE BOX
name “A Finance,” to all off Ammann’s
below-market financing programmes.
ogrammes. Short
S hort story
story All it takes is a new idea. Leasing
— Real estate leasing had an n excellent COCA-COLA is used to finance cars, computers,
year in France. BNP Paribas ibas Lease and machinery − so why not wine
Group secured new real estate
LEVERAGING barrels? The founders of H&A
contracts totalling EUR 353 million SYNERGIES TO Location visited several wineries
in Bordeaux to sell their idea, and
and new leases totalling EUR 485 mil- BETTER SERVE found a very responsive audience.
lion thanks to competitive rates, tax CLIENTS “In the six years since the business
was created we have generated
incentives, and a heavy investment EUR 30 million of revenue, which
in its sales force. In May 2009, Coca-Cola Enterprises has let us expand into Burgundy
wanted to renew the leases on as well as other countries like
— BNP Paribas Lease Group introduced a large part of its corporate vehicle Spain, where we have been
a novel billing system for the copier fleet in Luxembourg and Belgium. very successful,” comment the
market, called Full Print Plan, that lets BNP Paribas Lease Group (BPLG) company’s managers. BNP Paribas
clients pay according to their actual worked closely with Coca-Cola is now H&A Locations’ main bank
Enterprises and the leasing business and provides 70% of its loans.
copy machine usage (i.e., an invoice of Fortis – which had just merged BPLG works hand-in-hand with
based on the number of copies) ra- with BNP Paribas – to offer the BNP Paribas’ retail branches to
ther than the length of their lease. same conditions and agreement offer leasing options through an
framework in both countries. original, win-win partnership; the
— BNP Paribas Lease Group, in conjunc- The resulting contract for 61 trucks branches sell the product to their
tion with the tractor maker Same was well-received by the client clients and share the risks with
Deutz-Fahr, introduced Agrorental, the and beneficial for BNP Paribas. BPLG. “The recognised efficiency
first full-service hire contract designed “BNP Paribas worked closely of BNP Paribas’ sales and
with us and our suppliers to make administrative staff quickly
for the agricultural industry. Agroren- the transaction as simple as prompted us to increase our
tal contracts include maintenance possible, and we knew they would volumes with the Bank,” explains
and repairs, and can help farmers deliver”, said the multinational. H&A.
reduce their equipment expenses by
providing and maintaining tractors in
good working condition.
Under the new ownership, the employ- — restoration of the commercial fran- a strategic partnership with Belgian
ees of BNP Paribas Fortis have all been chise with a recovery in net custom- market leader AG Insurance, in which
working hard to create a eurozone er asset inflows into retail networks, it holds a 25% stake. As from 2010, the
financial services leader. More than the stabilisation of assets under activities of BNP Paribas Fortis CIB and
1,000 successful integration projects management, successful rebrand- Investment Solutions will be integrated
were established under the leader- ing and commercial campaigns; with those of BNP Paribas CIB and In-
ship of an integration team, new gov- — enforcement of operational effi- vestment Solutions. Retail Banking
ernance procedures worked out and ciency measures. activities, including Retail & Private
measures taken that have instilled re- Banking and Corporate & Public Bank,
newed confidence in BNP Paribas Fortis The second half of 2009 saw the launch Belgium, will constitute, for their part, a
and improved performance across its of the reorganisation of BNP Paribas specific operational entity.
businesses. Among the measures taken Fortis around four core activities: Retail
were: & Private Banking, Corporate & Public Taken together, the measures are cre-
— establishment of new governance, Bank, Belgium, Corporate & Investment ating synergies that are expected to
with the appointment of executives, Banking and Investment Solutions. The reach EUR 900 million annually by 2012,
refined business segmentation and rebranding of signifi cant parts of the of which EUR 850 million refers to cost
integrated risk management; business in Belgium, Poland and other synergies driven by organisational, IT,
— improvement in risk profi le with re- countries where BNP Paribas Fortis has facility and procurement, as well as hu-
duced risk exposure and liquidity a presence also went ahead in the man resources measures. Staff reduc-
risk and funding fully returned to second half of 2009. In the insurance tion will be mainly the result of natural
normal; sector, BNP Paribas Fortis entered into attrition and voluntary departures.
Corporate
& Public Bank,
Belgium
BNP Paribas Fortis Corporate & Public A central team of more than 60 corpo-
Bank, Belgium, offers a comprehensive rate bankers, 200 relationship managers
range of local and international finan- at 24 Business Centres and skills officers
cial services to Belgian enterprises, ensure that BNP Paribas Fortis stays close
public entities and local authori- to the market. This team, combined with
ties. With 457 corporate clients and the European network of Business Cen-
34,100 midcap clients, it is the market tres managed within Corporate & In-
leader (1) in both those categories, and vestment Banking, enables BNP Paribas
is also a challenger in Public Banking Fortis to offer unified commercial man-
(1,300 clients). The offering includes agement to its Belgian clients locally
domestic banking products, specialist and abroad.
financial skills, and securities, insurance
and real estate services. Skills include
specialist ones such as trade services,
cash management, factoring and
leasing, as well as M&A and capital
(1) Source: 2009 Internal and Banque Nationale de
markets. Belgique data
62
Brussels
Short story
ELIA
SUPPORTING
CLEAN
ENERGY
Corporate When we switch on the lights
or boot up our computers, we
64
Fortis Bank Short story
DELHAIZE
Turkey JOINING
FORCES
BNP Paribas Fortis operates in Tur-
FOR BETTER
key via Fortis Bank Turkey, of which
CUSTOMER
it is the majority shareholder with SATISFACTION
94.11% of the shares. Retail Bank- Strength through unity. The
ing offerings consist of debit and USD 500 million syndicated
revolving credit managed by
credit cards, personal loans,
BNP Paribas Fortis for the American
and investment and insurance operations of Delhaize,
products distributed through a multinational Belgian retailer,
297 branches and via internet is one of the many examples of
the benefits brought by the merger
and phone banking. Corpo- between BNP Paribas and Fortis.
rate Banking services include Neither of the two groups, both of
international trade finance, which worked for Delhaize, could
asset and cash management, have fulfilled the role of lead
manager for the group. But thanks
credit services, factoring and leasing. to the merger, BNP Paribas Fortis
Through its commercial and small busi- was able to combine the local
ness banking departments, the bank of- service provided by Fortis to its
major Belgian clients with
fers various investment services to small-
BNP Paribas’ syndication expertise
and medium-sized enterprises. in New York. It thus became the co-
68
nies working in and from Luxembourg. A
specialised mid-market corporate team Short story
will be created, with services devoted AUTOFESTIVAL
to the public and semi-public sector, as
well as property development. MAKING
The Trading Room will continue to offer THE CUSTOMER’S
a comprehensive product range and LIFE EASIER
will provide clients with direct access to
the Group’s specialist expertise through Selling car loans in the currently
a competitively priced, professional beleaguered state of the auto
industry and the economy
infrastructure.
generally was never an easy bet.
In Corporate and Investment Banking, But that was without reckoning
clients will also benefit from all the ex- on the determination of BGL
pertise of BNP Paribas’ international BNP Paribas, which placed its
entire faith in Autofestival, the
network. New development opportuni- Luxembourg motor show held
ties will be explored by promoting the early each year. Apart from very
specific features offered by the Luxem- attractive low rates, BGL
SOLU
TIONS
Investment Solutions provides a unique range of solutions to meet all the
needs of institutional, corporate and retail investors:
— Asset management (BNP Paribas Investment Partners);
— Insurance (BNP Paribas Assurance);
— Wealth management (BNP Paribas Wealth Management);
— Savings and online brokerage (BNP Paribas Personal Investors);
— Securities services (BNP Paribas Securities Services);
— Real estate (BNP Paribas Real Estate).
During 2009, the Investment Solutions Asia, Latin America and the Middle suited to client expectations in terms of
businesses all held prominent positions East, through new implantations, ac- transparency, performance and secu-
in their market. quisitions, joint ventures and partnership rity, while meeting the strictest sustain-
Investment Solutions operates in 61 coun- agreements. able development standards.
tries and employs almost 26,000 people, Focused on their clients and looking to
with more than 70 different nationalities the future, BNP Paribas Investment Solu-
represented. It continues to expand its tions’ experts always endeavour to offer
international reach, mainly in Europe, the products and services that are best
Taking into account the assets man- strong growth over the last decade, BNP Paribas Investment Partners is
aged by Fortis Investments, this figure punctuated up by targeted acquisi- present in the major financial centres,
stands at EUR 518 billion and will lift tions and the creation of joint ven- including Paris, London, New York, To-
BNP Paribas Investment Partners into tures. This solid development reflects a kyo and Hong Kong. It also has first-rate
5th spot in the European asset man- clear multi-specialisation strategy and knowledge of new markets thanks to
ager rankings. a partnership approach which has its teams in Brazil, South Korea, China,
With 2,400 professionals serving clients enabled BNP Paribas Investment Part- India, Morocco, Turkey and Saudi
in more than 70 countries, BNP Paribas ners to consistently enrich its product Arabia. With 430 client relationship
Investment Partners draws on more and service offering with the support managers in 34 countries, BNP Paribas
than half a century of experience in of companies that are experts in their Investment Partners has a local pres-
asset management and has enjoyed particular field. ence that brings it closer to its clients.
72
Short story
ERAFP
PROMOTING
RESPONSIBLE
INVESTMENT
It’s a little-known fact that around
4.6 million French civil servants pay
into a supplemental pension fund
managed by ERAFP (Établissement
de retraite additionnelle de la
fonction publique). According
to Philippe Desfossés, ERAFP’s
Managing Director, “Investments
made based strictly on return
criteria ignore the social, economic,
and environmental consequences
FundQuest/Boston
of a company’s activities.”
Investing in this way is dangerous
because “an investment’s value
depends on its being sustainable
over the long-term. By evaluating
companies according to non-
A business
financial criteria, we can better
BNP Paribas Investment Partners’ busi- assess their risks and identify the
ness model generates revenues from a businesses and industries that will
74
BNP Paribas
Investment
Partners receives
two Socially
Responsible
Investment (SRI)
certifications
— Novethic, an SRI research
organisation, has certifi ed
3 BNP Paribas Investment
Partners funds. The Novethic
certification aims to
encourage transparency
in the management and
investment decisions of SRI
funds, and to offer retail
investors a simple tool for
identifying responsible funds.
— Three BNP Paribas Investment
Partners funds have also
been awarded France’s only
solidarity-based certification,
Finansol. These 3 funds
are focused on solidarity
investments, and include
BNP Paribas/Paris 2 employee savings plans.
New headquarters
at 14, rue Bergère,
Paris
BNP Paribas/Paris
76
BNP Paribas/Paris BNL/Rome
D I V Á M
providers and the financing businesses
of large car manufacturers), and ma- R Á
M E D Á L…ní
POMdělaŮt pŽři Ehledání nového zaměstn
jor retailers that have a partnership á
agreement with BNP Paribas Assurance.
Revenues from this channel totalled
EUR 4.9 billion in 2009, comprised of aneb co
EUR 2.1 billion from the savings business
and EUR 2.8 billion from the protection
business. This channel accounts for
77% of BNP Paribas Assurance’s protec-
tion revenues. In the protection business,
BNP Paribas Assurance has teamed
forces with Ubi Assicurazioni to offer
property and casualty insurance in Italy,
and has created a joint venture in Viet-
nam with Vietcombank and Seabank.
In the savings business, BNP Paribas
Assurance has reinforced its partner-
ships through a new joint venture with
Taiwan Cooperative Bank and an in-
crease in its stake in its South Korean
joint subsidiary with Shinhan Bank from
50% to 85%.
78
BNP Paribas/New York BNP Paribas/Paris
Significant
events
Agreement for the repurchase in the country through the start-up BNP Paribas Assurance launches
of Dexia Épargne Pension of VCLI, a new insurance company 3 new Socially Responsible
and acquisition of Ubi Assicurazioni structured as a joint venture between Investment (SRI) funds in France
In France, BNP Paribas Assurance BNP Paribas Assurance, Vietcombank, As part of its Corporate Social Respon-
signed an agreement to acquire Dexia Vietnam’s leading bank, and Seabank, sibility programme, BNP Paribas Assur-
Épargne Pension, the 3rd-largest player a bank that caters to SMEs. ance has added 3 SRI funds to the list of
in the French banking partner market, in funds that clients can choose from for
order to build up its distribution network Cardif brings over 100 European their life insurance savings plans.
and bolster its skills in savings funds. In partners together in Paris
Italy, BNP Paribas Assurance teamed At its third European Symposium in Paris Supporting the expansion
up with Fortis to buy 50% and one share in November 2009, Cardif brought to- of micro-insurance around the world
of Ubi Assicurazioni, one of the leaders gether over 100 partner banks and fi - BNP Paribas Assurance already offers
in non-life bancassurance. This trans- nancial institutions to discuss the topic micro-insurance in India through a part-
action will expand BNP Paribas Assur- “Bancassurance: it’s time to invent a nership with State Bank of India, and in
ance’s non-life insurance operations new client relationship.” The event in- 2009 bought a stake in PlaNet Guar-
in Italy. cluded talks from prestigious speak- antee, the micro-insurance division of
ers such as the economist Jean-Hervé PlaNet Finance.
Two new joint ventures in Asia Lorenzi, Bernard Spitz, Chairman of
In Taiwan, BNP Paribas Assurance the French insurance company fed-
formed a joint venture with Taiwan eration (Fédération Française des So-
Cooperative Bank (TCB), Taiwan’s 2nd- ciétés d’Assurances), Professor Avinash
largest bank, to sell savings products Persaud, an international expert in risk
and personal risk insurance at TCB’s management, and Michel Pébereau,
300 branches. In Vietnam, BNP Paribas Chairman of BNP Paribas.
Assurance established a presence
80
Greater visibility India, Middle East, Russia, and Brazil),
for Wealth Management and close sites in Panama and the
In response to 2009’s challenging mar- Bahamas (as announced in Septem-
ket climate, especially in the second ber 2009) in line with the guidelines
half, Wealth Management adjusted its set forth at the G20 meeting.
business model to suit the new environ-
ment while maintaining its key strategy Continue to invest
goals, which include: in operational efficiency
— extend the Wealth Management — set up an IT Skills Centre in Singapore
Networks (WMN) model to other in- to serve all WMI sites;
ternational regions; — install the main performance track-
— focus efforts on Wealth Management ing, reporting, and asset manage-
International (WMI) sites and markets ment software at new sites;
that have a critical size and offer at- — carry out a global review of the busi-
tractive growth potential; and ness’ IT systems and processes, in as-
— continue to implement strict risk man- sociation with Retail Banking, in order
to better share IT resources among
Short story
agement and cost control policies.
WMN sites.
Product and service PASCUAL
development Sustained, profitable
— begin offering new services, espe- growth PROMOTING
cially in the areas of wealth planning, In 2009, BNP Paribas Wealth Manage- SOCIAL
real estate, and loans; ment pursued its strategy focused RESPONSIBILITY
— develop a novel approach to portfo- on organic grow th and targeted
acquisitions. When you are one of the biggest
lio-building that divides investments
food companies in Spain, you don’t
into 3 groups: active investing, market In Europe, the business formed a strate- take nutrition and healthy eating
opportunities, and long-term capital gic partnership with Insinger de Beaufort lightly. This is why the Pascual
protection; and purchased a 58% stake in Insinger family, head of the company of
the same name, founded the
— preserve discretionary assets un- on 9 April 2009. This partnership secures
Tomás Pascual Nutrition and Health
der management by updating the WMI’s position in the Dutch domestic Institute, “a non-profit organisation
products and services offered and market and among its international cli- that aims to boost public
ents in London. In July 2009 BNP Paribas awareness about these important
introducing more flexibility in portfo-
issues,” explains its managers.
lio holdings; Wealth Management formed a part- The family believes firmly in the motto,
— maintain suffi cient transaction ac- nership with Piraeus bank in Greece to “Healthy body, healthy mind,”
tivity (equity, bonds, and structured expand its Wealth Management opera- and also created the Human
Values Research Centre (CIVSEM)
products), especially for fixed-in- tions in the country. WMN set up several
to study and develop human
come products; new private banking subsidiaries in 2009 well-being on a personal, social,
— continue to expand Fondation de – in Germany through a partnership with and professional level. These two
l’Orangerie, a foundation established Cortal Consors, in Morocco with BMCI, philanthropic organisations will
soon be brought under
in 2008 to help private wealth clients and in Belgium with BNP Paribas Fortis a single foundation, and Wealth
achieve their philanthropic goals. – based on the WMN model that has al- Management International (WMI)
ready proven highly successful in France will offer “its advice and services
to help set it up,” adds the family.
Clients and markets and Italy.
— segment clients to provide better
sales force coverage, and build up
strategic client segments (Key Cli-
ents, Business Owners, and Financial
intermediaries);
— win new clients and increase inflows
from France, Italy, and Asia;
— establish agreements to include
CIB (especially Corporate Finance)
on clients’ lists of recommended
suppliers;
— continue to improve client satisfac-
tion by accounting for changes
in client needs after the crisis has
passed;
— implement a new strategy for WMI:
boost coverage in the most promis-
ing markets (China, Southeast Asia,
82
Innovation Corporate Short story
GOODPLANET
Social SUPPORTING
Cortal Consors France awarded
for its innovative system for buying
Responsibility RESPONSIBLE
INVESTORS
physical gold online
Cortal Consors France is the first online Investing in funds or an
broker in France to allow clients to buy Cortal Consors and GoodPlanet equity portfolio can be a
Cortal Consors has become one of socially responsible action, as
physical gold in the form of gold bars or demonstrated by Cortal Consors
French Napoleon gold coins through its the founding members of GoodPlanet, through its Investir Utile programme
website, www.cortalconsors.fr. This novel created by Yann Arthus-Bertrand and (which ran for the 5th time in
along with BNP Paribas and Lombard 2009). During the fifteen days
service won the 2009 Innovation Award, of the programme, clients who
Retail Investors at the recent Paris Invest- Odier.
invest in any of 12 selected funds
ment Forum. are charged reduced entry
The Investir Utile (invest usefully) fees, which are subsequently
programme for responsible investing donated to GoodPlanet.org
(an environmental organisation
In December 2009, Cortal Consors and
founded by Yann Arthus-Bertrand)
B*capital introduced the Investir Utile to finance an environmental
(invest usefully) programme under project in India. Moreover, Cortal
which the two companies engage to Consors and its partner asset
management firms will supplement
Cortal Consors Spain goes mobile donate the transaction fees on clients’ clients’ entry fees to increase the
Cortal Consors Spain has introduced investments in certain stocks (through amount of money sent to the NGO.
B*capital) and funds (through Cortal “I liked the idea that my entry
an i-Phone application that lets users fees would be supplemented;
instantly access equity markets, deriva- Consors) to GoodPlanet – after add-
it benefits both me personally
tive markets, and trading applications. ing in their own contribution – for the and the project we are funding,”
purposes of financing environmental remarks Frédéric Sandei. “It gives
projects. meaning to my investment; I have
Cortal Consors and B*capital launch the impression that everyone wins.
Contracts For Difference (CFDs) In Luxembourg, BNP Pariba s Per- And I’m delighted to be able
Cortal Consors and B*capital have ex- sonal Investors introduced Green to contribute to the successful
World 95% , a certification issued by completion of a useful project,
panded their range of derivative prod- in whatever way I can,” he adds.
ucts in France to offer their most active BNP Paribas to help clients invest in com-
clients over 6,000 CFD shares on 22 in- panies committed to protecting the en-
ternational exchanges, as well as over vironment. 1% of the funds collected
150 currency pairs (Forex). are donated to GoodPlanet.
In Germany, Cortal Consors is the fi rst
online bank to offer CFD trading on a
regulated market, Contrex, Europe’s
leading CFD trading platform. Awards
Geojit BNP Paribas introduces
institutional brokerage services
Cortal Consors Germany voted
BNP Paribas Securities India Ltd., an insti-
the 2nd-best online broker in 2009
tutional brokerage joint venture between
Cortal Consors Germany was voted the
Geojit BNP Paribas and BNP Paribas,
2nd-best online broker in 2009, and held
has become the first broker in India to
its 1st-place position in the Day Trader
give its institutional clients full, direct ac-
and Futures Broker categories (source:
cess to the National Stock Exchange of
www.brokerwahl.de). Cortal Consors
India.
Germany was also named the second-
best direct bank in Germany by Deut-
sche Institut für Service-Qualität.
84
Global
expansion
continues
BNP Paribas Securities Services suc- East and America. It now operates in 28 give clients access to services at any
cessfully furthered its sales and marke- countries, 37 locations and 100 markets. time around the world. Furthermore, a
ting strategy in 2009 despite the grim The company built upon its Indian and new office in Morocco (a cooperation
economic climate, which was marked Singaporean operations, and began agreement with BMCI) was launched.
by an industry-wide slowdown, low in- derivatives clearing on the National
terest rates, and shrinking transaction Stock Exchange in Mumbai. Significant
volumes. mandates were won across the globe. In
BP2S strengthened its position in Europe addition, it obtained a banking licence
and extended its global presence, par- in Hong Kong. BP2S consolidated its
ticularly in Asia, but also in the Middle- “Follow the Sun” operating model, to
BNP Paribas/Paris
BNP Paribas/Paris
86
BNP Paribas/Grands Moulins de Pantin
Corporate social
responsibility
Short story
GRANDS MOULINS DE PANTIN
As part of its commitment to Corporate
Social Responsibility, BP2S replaced its LEVERAGING
year-end presents by donations to the
Institut Pasteur. This action supported
IN-HOUSE SKILLS
the global fi ght against infectious dis- When several skills reside within
eases in a number of countries. In addi- a single company, why not make
the most of them? BNP Paribas
tion, BP2S started its move to new global Securities Services (BP2S) needed
headquarters at the Grands Moulins de a new headquarter and
Pantin (near Paris), a renovated former BNP Paribas Real Estate
(BNPP RE) found the perfect spot,
flour mill, which conforms to the highest
Grands Moulins de Pantin, an
environmental standards. exceptional complex coupled
with an architectural gem.
In pursuit of excellence “BNPP RE assisted with several
steps of the project,” explains BP2S:
The company won several awards in 2009, “field research, land purchasing,
against stiff competition. These included finding architects, financing and
ICFA’s “European Mutual Fund Adminis- completing construction work,
trator of the Year” and “Custodian of the identifying specific safety needs,
locating investors, drafting leases,
Year – France”, and Funds Europe’s “Euro- etc”. For the complex design
pean Administrator of the Year”. The lat- and layout, BP2S consulted the
ter is chosen by fellow professionals. Also, future users of the office space
and their feedback “guided the
Global Finance considered BP2S “Best
choices we made in terms of
Sub-Custodian for western Europe”. This floor design, partitioning, and
is awarded on criteria such as quality of furniture.” After three years of work
service, technology platforms, business and an exemplary makeover by
the architecture firm Reichen &
continuity plans or knowledge of local Robert Associés, BP2S staff moved
regulations and practices. into 46,500 sq.m. of new, state-
of-the-art office space certified
with France’s High Environmental
Quality (HQE) standard. “All on
time and within budget.” What
more could you ask for?
88
A single brand 2 major projects
for BNP Paribas
for the real
estate activities BNP Paribas/Paris
By the end of the first quarter of 2009 In light of these changing market One important factor to BNP Paribas
and continuing throughout the rest of conditions, BNP Paribas Corporate CIB’s success is its balanced business
the year, conditions began to improve and Investment Banking (BNP Paribas model with a proactive capital mar-
and markets progressively normalise. CIB) acted with its hallmark adaptabi- kets franchise and a strong fi nancing
The capital markets were moving once lity and demonstrated once again its platform in selected areas of exper-
again: fixed-income markets, and es- tenacity and resilience. BNP Paribas tise. Another key to BNP Paribas CIB’s
pecially the debt markets, were very CIB had had the foresight early on to outstanding performance in 2009 was
active while the equity markets, where adjust its capital and risk manage- its client-centric approach serving cus-
the activity may not have been so ment strategies, monitor its market tomers in the economy. BNP Paribas
buoyant, returned to normal levels by risks closely and reduce its exposure CIB’s 13,000 corporate and institutional
the end of the year. Demand for flow signifi cantly. and right-sized its struc- clients have always been at the very
products continued to grow throu- ture where and when necessary. Fun- heart of its business model. BNP Paribas
ghout the year and in the third quarter, ding and liquidity management was CIB has over 16,0 0 0 employees in
there was increased demand for gua- proactive. Thanks to all these actions, more than 50 countries, all of whom
ranteed capital structured products. BNP Paribas CIB has been able to concentrated on providing clients
Clients were coming back to the Equi- leap ahead, posting high revenues, with the top-notch products and ser-
ty Capital Markets (ECM) for funding increasing market share and earning vices which they needed to weather
and in the financing businesses, liqui- prestigious awards and ranking across and maneuver throughout the tough
dity costs dropped and capital was no many of its businesses. times of 2009.
longer quite as scarce.
92
Adapting
p g our secondary markets
offering g to the
th new environment
The credit, interest
in rate and foreign
exchange markets ma have been deeply
transformed in 2009. Fixed Income’s
clients, in par particular institutional inves-
tors, have increasingly
inc looked to their
counterparties for scale, stability
bank counter
and the ability to offer simple and trans-
products as well as risk manage-
parent produc
solutions.
ment solution
Compared to many of its competitors,
BNP Paribas C CIB was in an excellent po-
sition to manage
mana the crisis and to help
its clients to manage
m it effectively. In a
volatile and uncertain environment,
with fears of o counterparty credit risk
running hig high, BNP Paribas CIB offered
its clients the benefit of having one
of the highest
hig credit ratings of any
In a year marked by major global
g bank, and a proven
extreme market
arket vola- track record
re as a consistently re-
tilit y and uncer taint y liable provider of cash and de-
for corporate e borrowers, rivative products across interest
BNP Paribas CIB led many rates, credit a and foreign exchange.
of the most notable cor- Recognising the challenges and op-
porate benchmark
chmark issues in portunities presented
p to investors by
US Dollars, Yen,
en, Swiss Francs, this new envirenvironment, BNP Paribas CIB
Sterling and, of course, Euros. fundamentally transformed its of-
has fundame
This was the year BNP Paribas
CIB arrived onn the Dollar market,
Short story fering to cate cater to a greater variety of
client needs. The cash and simple de-
ROLLS-ROYCE
leading many y of the key corporate tran- rivative products
prod platform has been
sactions in 2009
009 for issuers such as Bri- STANDING expanded to meet increasing investor
tish Petroleum (twice), Roche, AB InBev,
Telecom Italia, Sky, Anglo American,
OUT FROM demand, institutional sales teams have
been bolstered in all regions and the
WPP, France Télécom and EDF’s debut
THE CROWD strategy has been refocused in order
USD issue. In the core European curren- to capture large investor flows. Business
When engine manufacturer Rolls-
cies of EUR, GBP and CHF, BNP Paribas Royce decided to launch a with institutional clients has increased
CIB has the greatest market share with GBP 500 million ten-year bond signifi cantly thanks to the work of the
nearly 11% of all investment-grade cor- issue, it naturally put the deal out Institutional Relationship Management
to competitive tender among the
porate issuance by volume (Thomson banks. This was the first time that (IRM) team which serves as the inter-
Reuters-2009) – conclusive proof of the Rolls-Royce had come to the bond face between BNP Paribas CIB and ins-
strength of our multi-currency franchise. market with an issue since 2004 titutional investors as well as an active
and BNP Paribas was delighted
This was supplemented by a strong roster prospecting campaign by Fixed Income
to throw its resources into the fray.
of domestic business that included blue An initial selection resulted in a sales teams. Between December 2008
chip borrowers such as Time Warner Ca- shortlist of nine candidates, three and December 2009, there was been
ble, Boeing, Comcast and Coca-Cola of whom were finally selected. a marked increase in the share of
BNP Paribas was one of them,
Enterprises. tasked “more specifically with
BNP Paribas CIB’ business in foreign ex-
arranging the road show for change, interest rates and credit busi-
investors, led by two teams”, said ness from asset managers, insurance
a Rolls-Royce senior manager, firms and pension funds. Over the same
adding that CIB’s Fixed Income
teams were selected, “on the basis period, volumes from primary credit
of their excellent presentation and vanilla client business have also
but also because they were not increased sharply.
afraid to express an original,
independent point of view”. In the
end, he said with satisfaction, the
deal was “executed perfectly”.
94
Short story
HEIDELBERGCEMENT
PUTTING
EXPERTISE
TO WORK
FOR CLIENTS
When capital markets transactions
run into the billions of euros,
amateurs need not apply.
What clients want is impeccable
expertise and unfailing support.
So when the German cement giant
HeidelbergCement decided to
launch a share issue at a time when
its main shareholders were selling
out to institutional investors, it chose
the best banks to back it up.
BNP Paribas was on the list.
BNP Paribas was the joint
bookrunner for the deal, and
“played a major role in its success
BNP Paribas/Paris by helping us find the best structure
and placement strategy,” noted
HeidelbergCement’s CFO, Dr.
Corporate Finance BNP Paribas emerged as a leader, ac- Näger. “In addition, BNP Paribas’
powerful distribution network
After a depressed fi rst quarter, equity ting as bookrunner in 19 transactions in
and compelling ability to attract
markets benefited from an impres- 7 different countries (France, UK, Bel- investors were a clear advantage
sive rally worldwide beginning in early gium, Switzerland, Germany, Norway way during the placement phase”
March, fuelling a rise in investor confi - and Spain). Some significant issues ues he added.
dence and risk appetite. At the same include the Kf W exchangeable e
time, corporate and financial institutions bonds into Deutsche Post AG shares es
clearly needed capital which led to a (EUR 750 million, Germany), Eurazeo o
resumption in rights issues, capital in- exchangeable bonds into Danone e
creases and convertible bonds issues. shares (EUR 700 million, France), Ca- a-
BNP Paribas was involved as bookrun- ble & Wireless convertible bonds ds
ner in numerous European rights issues, (EUR 230 million, UK), REC convertible
ble
among which HSBC (GBP 12.8 billion), bonds (EUR 320 million, Norway), UCB CB
Gas Natural (EUR 3.5 billion), Lafarge senior unsecured convertible bonds nds
(EUR 1.5 billion), AXA (EUR 2.1 billion); in (EUR 500 million, Belgium), Clariant ant
the building material sector, BNP Paribas convertible bonds (CHF 300 million, on,
enjoyed a very significant market share, Switzerland).
with a senior role in all major rights issues On the Initial Public Offering (“IPO”)
O”)
(Heidelberg Cement, Lafarge, CRH, Hol- side, the market slightly reopened at the
cim, Cemex, Cementos Portland). These year-end and BNP Paribas CIB acted as
transactions highlight the combination bookrunner and joint lead managerr of
of BNP Paribas CIB’s ability to underwrite the largest IPO on Paris Euronext sincece
large transactions thanks to its balance 2007 (CFAO – EUR 927 million).
sheet, rating strength and the qua-
lity of its equity brokerage arm Exane
BNP Paribas, which enjoys a no. 5 Pan-
European equity sales ranking (Thomson
Extel 2009).
In Europe, equity-linked markets en-
joyed 79.8% growth (source: Thomson
Reuters). In this very buoyant market,
BNP Paribas/London
96
Global Equities and
Commodity Derivatives
(GECD)
The equity markets began to return to
normal levels of business and activ-
ity starting in the spring of 2009 and
BNP Paribas CIB’s revenues were as a
consequence more stable throughout
the rest of the year. In response to the
market turmoil that began in late 2007
and continued through early 20 09,
GECD shifted to a growth-controlled
business model, carefully monitoring
its strategic direction and constantly
adapting to the new market environ-
ment. The business was proactive in
decreasing its risks and making effi-
cient risk management decisions. As
a consequence, it has been able to
move forward with confidence. Unlike
many of its competitors, BNP Paribas’
Equity Derivatives business has been
able to maintain the full diversity of
its activities for its clients’ benefits but
adapted these activities to shifting cli-
ent demand.
The Equity Derivatives client-driven
business posted a good trading per-
formance thanks to these more favo-
rable market conditions that began
at the end of the first quarter, and
in light of strong de-risking measures
that it took. In the fl ow product areas
for clients, positions were successfully
managed through active trading with
reduced market risks compared to
previous years. The risk management
of the structured products books has
been refi ned to account for new mar-
ket and risk configurations, and this
has resulted in signifi cant increase in
BNP Paribas/London
revenues in these books, evidence of
the risk management capabilities of
BNP Paribas CIB’s Equity activity. prime brokerage franchise. This growth
BNP Paribas CIB has responded to has been undertaken in the context
increased client demand for simpler of BNP Paribas CIB’s strengthened risk
structured products and has success- management infrastructure.
fully marketed to retail network clients In Asia, BNP Paribas CIB has faced a
new, less volatile capital-guaranteed tough environment with a decrease in
products based on its own proprietary demand for flow products from private
indices which offer lower risk than the banks and increasing restrictions from
traditional pre-crisis solutions, and local regulators. However, this has
which help to protect the client against been compensated by increased ac-
issuer credit risk. The equity fl ow fran- tivity in its fl ow and convertible bonds
chise continues to grow: institutional businesses. Sustained cross-selling ef-
investor demand remains steady and forts and leveraging across all Asian
BNP Paribas CIB has been able to platforms has created synergies and
further develop its institutional client broadened the range of products
base. An important initiative began in BNP Paribas CIB offers. It was also able
2008, and which BNP Paribas CIB pur- to improve effi ciency in order to max-
sued in 2009, is the growth of its global imise the depth of its coverage.
98
ties in structured and trade finance and
well established corporate hedging
franchise, especially in oil and carbon
markets. In the Americas, BNP Paribas
CIB is focusing on the development of
physical gas and power capabilities
and has enjoyed continued growth of
its oil, gas and metals hedging business
across the region.
quidity via a conventional refinancing. The corporate acquisition finance solutions to clients so that they could
BNP Paribas CIB Structured Finance has business had a limited number of rapidly face the changing market con-
also been a major solution provider deals this year but some very sizeable ditions. It has adapted the structures to
for borrowers more comfortable with transactions for prime names and en- match banks’ requirements for shorter
the amend & extend contractual ex- larged club deals with good conditions. tenors, provided incentives to refinanc-
ecution alternative. BNP Paribas CIB’s Though market volumes were down ing and diversified the liquidity sources
energy and commodities finance significantly, BNP Paribas CIB played a in order to offer the best available terms
business has been one of the most leadership role in all the major acquisi- to its clients. Project Finance has been
consistent providers of financing to tion-driven “new money” transactions active across all sectors in all regions,
the commodity space for the past and has been one of the few banks advising and/or arranging landmark
thirty years. The recent turmoil of the that have been able to close acquisi- and ground-breaking transactions. R1
industry has reinforced BNP Paribas tion financing during the crisis: Centrica motorway PPP (EUR 1.016 billion). This
CIB’s leading position in the sector; (GBP 900 million), WPP (GBP 1.25 bn), transaction was the first “soft” mini
BNP Paribas CIB helped to restructure Gas Natural (EUR 19 bn). perm structure presented to the market,
for its clients some of the most delicate Al Qatrana (USD 334 million), TCI Sanmar
credit situations this industry has ever Project Finance has demonstrated (USD 672 million).
met. BNP Paribas CIB remained com- its prominent position in the field, as 2009 again saw high activity levels
mitted to new business throughout the evidenced by numerous remarkable in media and telecom finance, with
year and has continued to experience projects. As a leader in advising, struc- BNP Paribas arranging more loans in the
growth in its revenues. turing and syndicating project fi nanc- Telecom sector than any other bank
ings, Project Finance offered creative in Europe. Visible transactions led by
Structured Finance closed an 11.5-year Coface This contract is in line with the government of
Wind Farm Project backed facility of EUR 130 million and a 5-year Ethiopia’s energy policy; in response to the fast
in Ethiopia tied commercial facility to fund the Ashegoda paced growth of domestic demand its intention
120 megawatt Wind Farm Project for the Ethiopian is to potentially export electricity to neighbouring
Electricity Power Corporation as sole mandated countries. This is not only the largest contract
lead arranger (“MLA”) and facility agent. The bank signed by Vergnet, but also the largest contract
became involved in this transaction in May 2008; ever signed between France and Ethiopia.
since that time BNP Paribas supported the Vergnet
Group, a French contractor, in its bid process to
supply the wind turbines and their installation. This
Engineering Procurement Construction contract,
involving the sale and the installation of 120
1-megawatt GEV HP wind turbines over a period of
three years, with the first 30 units to be delivered
in 2010, will result in the largest wind farm in sub-
Saharan Africa.
100
Short story A carbon neutral
seminar
BNP Paribas include the USD 2 billion,
forward-start refi nancing of Qatar Tel-
MATIÈRE ecom and a GBP 350 million high yield
Structured Finance organised
bond for Virgin Media, reopening the
STAYING A STEP the first BNP Paribas carbon
neutral seminar in November sterling high yield market. As a result,
AHEAD AND in Évian (France). This offsite
gathered the 110 Structured BNP Paribas was awarded the title of
LOOKING AHEAD Finance top management
executives worldwide to discuss
2009, “EMEA Loan and Bond House
the perspectives and challenges of the Year ” by Telecom Finance
“BNP Paribas was the only bank facing the business, as well as
in 2007 to believe in Matière’s the objectives for the years to
magazine.
project to develop the Unibridge® come. In order to offset carbon
concept internationally”, recalls emissions associated with the
seminar, BNP Paribas will buy
In leveraged finance, BNP Paribas
Philippe Matière, Chairman and
Certified Emission Reduction CIB has been one of the leaders in
Chief Executive of the eponymous credits from the Youngduk wind
civil engineering group. He added farm in Korea, registered as a
the restructuring field (the Bank won
“We weren’t even clients of the Clean Development Mechanism the Restructuring Deal of the Year for
bank at the time, but BNP Paribas project and in operation since
the Monier transaction by Acquisition
supported us with a buyer credit May 2005. This project was
for a EUR 150 million project in the chosen for this carbon offset Monthly).
operation as it actually reduces
Philippines”. A good decision, emissions using a zero emission
20 09 has been bright year for the
as Unibridge ®, a revolutionary technology. This wind farm, a export finance activity in terms of pres-
concept in modular, easy to project finance transaction for
which
ence, closing challenging transactions
assemble steel bridges, was the
perfect solution to infrastructure BNP Paribas CIB acted as and entering new markets. BNP Paribas
mandated lead arranger in
development needs in the 2004, is using Vestas wind CIB signed transactions in countries
Philippines. “Obviously, when turbines for a total generation where it had been totally absent up
other similar projects came up capacity of 39.6MW. This project
in the Philippines, we went to was the first commercially until now, such as Ethiopia. More and
BNP Paribas, which had become operated windmill project in more players are present in the export
Korea and the fi rst limited-
our partner of choice”. As a recourse financing for a finance business which is no longer
result, the Group was appointed greenfield project arranged and limited to emerging markets. With an
lead manager for financing two fully underwritten by a foreign
new contracts won by Matière bank in Korea. outstanding allocated amount of
in the Philippines for the supply USD 11.8 billion and 70 deals arranged
of 418 more Unibridges® and 70 in 2009 (an increase of 118% on 2008’s
Unibridge Marine Applications®,
USD 5.4 billion and 58 deals), BNP Paribas
for a total of EUR 254 million.
Mr. Matière also stressed the CIB is ranked no. 1 global mandated
“perfect teamwork between his lead arranger for Export Credit Agency
daily relationship manager and b a c ke d t ra d e f i n a n ce l o a n s by
the BNP Paribas representative
in Manila. Without these two Dealogic. In a very challenging year this
highly professional people, things is a great achievement and it confirms
wouldn’t have gone so smoothly! ”, BNP Paribas CIB’s position as the un-
he said frankly. disputable worldwide leader in export
finance for the third consecutive year.
Derivatives
— “Most Innovative in Risk
Management and Most
Innovative in Interest Rate
Derivatives”, The Banker – 2009
— “Currency Derivatives House
of the Year”, AsiaRisk – 2009
— “Best Structured Products
House Asia”, The Asset Asia
− 2009
— “Derivatives House of the Year
Asia”, The Asset Asia – 2009
— “Index Innovation of the Year”,
Structured Products Americas
− 2009
102
form in the US, leveraging the estab--
A go-to lished North American energy & com--
2009 ANNUAL REPORT KLÉPIERRE & BNP PARIBAS PRINCIPAL INVESTMENTS 105
KLÉPIERRE
As a property owner, manager and developer, Klépierre offers major international retailers
an integrated European platform thanks to its 274 shopping centres in 13 continental Euro-
pean countries (France, Belgium, Norway, Sweden, Denmark, Italy, Greece, Spain, Portu-
gal, Poland, Hungary, Czech Republic and Slovakia). Altogether, the company manages
374 shopping centres through its Ségécé and Steen & Strøm subsidiaries, which rank as
the no. 1 shopping centre managers in continental Europe and Scandinavia respectively.
Klépierre also supports its tenants in out-of-town and city-centre locations in France through
Klémurs (real estate investment company in which Klépierre owns an 84.1% stake), which
was listed in December 2006.
Furthermore, Klépierre owns and manages a portfolio of office buildings concentrated in the
principal business districts of Paris and inner suburbs (5.3% of the portfolio at 31 December 2009).
Klépierre has 1,519 employees (including 961 outside France).
106
Blagnac:
a regional
shopping centre
in Toulouse,
France
The extension to the Blagnac
shopping centre opened for
La Gavia/Vallecas - Madrid
business in October 2008,
increasing the number of
stores to 118 and doubling
the centre’s sales area to
24,000 sq.m.. Klépierre invested
EUR 117 million in this project.
Blagnac is located in one of
Toulouse’s most attractive
Sales at Klépierre shopping centres held Klépierre invested a total of around suburbs, with an upper middle
up well in 2009 despite a sharp decline EUR 623.4 million in 2009. Klépierre also class population, several
international businesses, and
in overall consumer spending. Strong made EUR 384.0 million of targeted a nearby airport – making it
performance in the Group’s three main divestments during the year, mainly the city’s dominant shopping
centre.
regions (France, Scandinavia, and Ita- involving office buildings, minority stakes
ly) and countries such as Poland and in shopping centres, and isolated assets
the Czech Republic offset weakness in with low growth potential. These tran-
Spain and Hungary. The Group’s occu- sactions reflect the group’s active ma-
pation rate stood at 97.3% at 31 Decem- nagement of its real estate portfolio.
ber 2009.
14.7
and SNCF (the French national
shopping centre builders over the next railway operator) dating back
to 1996. 83 stores are scheduled
few years. to open in the fi rst quarter of
billion euros in assets 2012. 1.2 million people pass
through the train station every
Klépierre increased its presence in nor- day, as it is situated near
thern Italy through a long-standing
partnership with Finiper, an Italian
retailer, and in Scandinavia through
274
shopping centres owned
Paris’ leading business and
commercial district. Klépierre
expects to invest EUR 136 million
in this project.
2009 ANNUAL REPORT KLÉPIERRE & BNP PARIBAS PRINCIPAL INVESTMENTS 107
BNP PARIBAS
PRINCIPAL
INVESTMENTS
BNP Paribas Principal Investments includes BNP Paribas Capital,
along with the Listed Investment and Sovereign Loan Management
businesses.
BNP Paribas
Capital
BNP Paribas Capital manages the Group’s portfolio of unlisted investments outside
of the banking sector.
This portfolio had an estimated value of EUR 2.8 billion at 31 December 2009 and
is split into four segments:
— directly held strategic investments;
— directly held minority stakes;
— investments in funds;
— joint investments made simultaneously with funds or institutional investors.
108
TEB/Istanbul
BNP Paribas/London
2009 ANNUAL REPORT KLÉPIERRE & BNP PARIBAS PRINCIPAL INVESTMENTS 109
INNOV
110
ATION
Technological advancements, globalisation, environmental concerns: many challenges
lie ahead for both businesses and society. Faced with these challenges, BNP Paribas aims
to continuously seek out new sources of progress by encouraging ideas and initiatives.
For this reason, innovation has been a core component of the Group’s strategy for many
years. Innovation not only enables BNP Paribas to continuously improve the products and
services it offers, but also to find innovative solutions that facilitate the day-to-day tasks
of its employees.
In 2007, BNP Paribas launched its Spirit of Innovation programme to promote innovation
throughout the organisation. One of the programme’s main focuses is to reward innovative
achievement through the annual Innovation Awards.
These awards aim to encourage employee creativity and expertise, and reward inno-
vation in all its forms. This includes both the business innovation stemming from initiatives
taken by employees or groups of employees whose responsibility is to innovate, as well
as the Innov@ction initiative based on suggestions made by an employee or a group of
employees, regardless of their position, to improve products, services, or processes and
contribute to customer satisfaction.
SUSTAINABLE
DEVELOPMENT
ISO 14001 ENVIRONMENTAL CERTIFICATION
FOR THE “WELCOME & SERVICES” BRANCH MODEL
— French Retail Banking
BNP Paribas’ “Welcome & Services” branch model has obtained ISO 14001(1)
environmental certification. It is the first French bank to have its branch model
certified. “Welcome & Services” branches have a user-friendly yet functional interior
design and offer customers:
- greater availability of advisers;
- improved customer reception through dedicated employees; and
- broader time bands for ATM use (6 a.m. to 10 p.m. every day)
(1) ISO 14001 aims to help companies control their environmental impacts within a continuous progress approach.
PROCESS
PERFORMANCE
THE FUTUREBANK INITIATIVE
— Bank of the West, Retail Banking
The FutureBank Initiative aims to improve the Retail Banking business model
by upgrading and modernising the technological infrastructure.
112
MANAGERIAL
PRACTICES
CREATIVE CAFÉ AND INNOVATION CAMPUS
PROMOTING — TEB, Retail Banking
INNOVATION The Creative Café developed by TEB brings employees and customers together
for two days to exchange ideas about specific topics. Five sessions, each bringing
together 100 customers and 300 employees, generated more than 4,000 ideas, some
of which have since been put into practice. The Campus Innovation event brings
together employees and students in sessions designed to be both entertaining
and creative. The sessions take place on the campus and include contributions
from experts in the academic world. They also help identify new young talent.
EMPLOYEE
SATISFACTION
ECHO’ NET V2, THE GROUP’S NEW INTRANET
— BNP Paribas, Brand Communication & Quality Department
Echo’ Net is the BNP Paribas Group intranet. The Echo’ Net V2 project has made
the intranet more modern, interactive, flexible and personalised.
LANGUAGE LUNCHES
— BNP Paribas Technologies & Processes Department
BNP Paribas ITP – Technologies & Processes* combines the useful with the agreeable
by organising lunches for employees to practice and improve their language skills.
PRODUCTS AND
SERVICES EDF’S ACQUISITION OF BRITISH ENERGY
WITH NUCLEAR POWER NOTES
— BNP Paribas Corporate Finance, Corporate & Investment Banking
In 2008 EDF was prepared to abandon plans to purchase British Energy because
British Energy’s shareholders felt that the offer was too low. BNP Paribas Corporate
Finance helped EDF improve its offer by using Nuclear Power Notes. EDF was able to
finalise the acquisition thanks to this solution, which gave the shareholders a stake
in energy market prices and the returns from British Energy’s nuclear plants.
114
sont QuickTime
requis
pour décompre ™
et un
visionner
sseur
cette
image.
116
TE SOCIAL
ONMENTAL
SIBILIT Y
The full report on BNP Paribas’ social and
environmental responsibility is available
from the Sustanaible Development sec-
tion of the www.bnpparibas.com.
2009 ANNUAL REPORT CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY 117
THE GROUP’S
APPROACH
BNP Paribas/Lyon
Responsibility based on
core values and guiding
principles
BNP Paribas does not take its approach creativity, commitment, and ambition.
to sustainable development lightly. The These values unite individual actions into
Group’s economic, social, and environ- a cohesive Group-wide approach.
mental responsibilities are an integral
part of its business ethic and are rooted
in its founding values: responsiveness,
Operating procedures
Four unifying values Guiding principles by division, business line Day-to-day behaviour
and function
118
BNP Paribas,
a strong commitment
to sustainable development
BNP Paribas bases its sustainable deve- ble development club within ANVIE, the the founding members of the Enhanced
lopment efforts on targeted, consistent French association for interdisciplinary Analytics Initiative (EAI) through which
public commitments. In 2009, it actively research in humanities and social scien- it allocates 5% of its brokerage com-
pursued its participation in numerous ces in the business sector. missions to developing extra-fi nancial
initiatives, some of which are specific to BNP Paribas won the 2009 Alpha award research. BNP Paribas is involved in the
the banking sector and others of which for Best Diversity Report in the gender UK’s Business in the Community (BITC) or-
are more far-reaching. This allowed the equality category. The jury of CSR spe- ganisation, which brings together more
Group to promote sustainable develo- cialists judged that the 2008 report fully than 700 companies that promote res-
pment in a range of areas and at diffe- met the criterion of “good quality of in- ponsible corporate behaviour within
rent levels. formation provided to stakeholders on society.
managing diversity”. The Group’s commitment is evident
Global initiatives through its involvement in initiatives that
BNP Paribas has been a member of the Finance sector initiatives expand the reach of its main activities.
United Nations Global Compact since In 2008 BNP Paribas formally adopted At an international level, BNP Paribas In-
2003. The Compact’s ten principles the Equator Principles for its project vestment Partners signed the Principles
are embedded in the Group’s policies financing activities. These Principles for Responsible Investment (PRI), laun-
and guide all operating decisions. As constitute a benchmark for the finance ched under the auspices of UNEP Fi-
in previous years, the Group published sector to identify, assess, and manage nance. These Principles help companies
a Communication on Progress (COP) the social and environmental risks rela- incorporate environmental, social, and
report in 2009, presenting its ISO 14001 ted to project financing activities. They corporate governance issues into their
certification for the new Accueil & Ser- are based on the social and environ- investment decision-making processes.
vices branch model. mental performance criteria established
BNP Paribas contributes to the work of by the World Bank and the International
ORSE (the French research centre for Finance Corporation. BNP Paribas also
corporate social responsibility), EDE (a became a member of the Equator Prin-
coalition of French companies com- ciples Steering Committee in 2009.
mitted to implementing the Universal In association with the Institutional Inves-
Declaration of Human Rights), and EpE tors Group on Climate Change (IIGCC)
(a coalition of forty French companies and the Carbon Disclosure Project,
united by a commitment to the environ- B N P Pa ri b a s A s s et M a na g em ent
ment and sustainable development). (BNP PAM) encourages companies to
For several years now, the Group has consider climate change issues in their
also chaired meetings of the sustaina- investment decisions. BNP PAM is one of
France
Diversity
charter
Attracting talent
and motivating
our employees Cultivating our role
as a partner in society
BNP Paribas systematically maps all and input from other stakeholders.
issues involving the social and environ- The Group’s CSR policy is then put into
mental impacts of the Group’s business practice through the implementation of
activities on all its stakeholders. It then action plans at each division, business
carries out a diagnostic review, incor- unit, territory, and function. Any new
porating the results of self-assessments initiative is approved by the Executive
performed by each entity, ratings from Committee.
the extra-financial rating agencies,
1. Yearly update of the mapping of main issues and the related diagnostic review
2. Self-assessment
5. Implementation of yearly action plans
120
A Group-wide mission a direct link with managers throughout
All of BNP Paribas’ business units, which the Group and coordinates a network
operate in more than 80 countries of over 200 experts from all divisions,
around the world, play a role in the business units, territories, and functions.
Group’s approach. A Group-wide Cor-
porate Social and Environmental Dele-
gation oversees implementation of the
overall policy. The Delegation maintains
Managing
Director
Group
Retail Banking Compliance
Retail customers Reputational
risks
IS
Microfinance GHR
SRI Logistics support
Eco property CSR and social
management Delegation reporting
Sustainable
development
community
BCQ Corporate &
Integrating CSR Investment Banking
into external Project financing
communications Sector policies
Carbon finance
GFD ITP
Investor Environmental
relations reporting
Monitoring direct
impacts
Operating
Values Guiding principles procedures by division CSR
and business line
BNP Paribas/Lyon
122
Recognition by SRI rating SAM score has improved steadily since 2002,
agencies 2009 marked the eighth year in a row in especially with respect to economic
which BNP Paribas was included in both and environmental concerns.
BNP Paribas is included in the Dow Jones sustainability indices: the BNP Paribas’ inclusion in these ben-
DJSI World and DJSI Stoxx. In 2009, it was chmark sustainability indices is an ac-
all the main sustainability the only French bank to have been in- knowledgement of the effectiveness
indices: DJSI World, DJSI cluded in both these internationally of its Corporate Social Responsibility
Stoxx, ASPI Eurozone, renowned indices without interruption policy.
FTSE4Good Global 100, since 2002.
The companies included in the DJSI in-
FTSE4Good Europe 50, and dices are selected by means of an an-
Ethibel. It is one of only a nual survey. In 2009, the banking sector
handful of banks worldwide survey comprised 94 questions on topics
to feature in all these of economic, environmental, and social
concern. Sustainable Asset Manage-
indices. ment Inc. (SAM), a ratings agency, iden-
tifies the top companies in each sector
based on their replies.
Out of 2,500 companies rated, only 250
actually make it into the DJSI World in-
dex. In the banking sector, BNP Paribas
was one of only 11 European banks in-
cluded in the DJSI Stoxx index.
In 2009 BNP Paribas came in significant-
ly higher than the sector average in al-
most all segments of the survey, with an
overall score of 73 out of 100 compared
BMCI/Casablanca
with a sector average of 51. The Group’s
2009 51
73
90
2008 52 2004 42
71 62
89 84
2006 48 2002 31
68 59
84 78
124
Organised dialogue with stakeholders
Employees — More than 163,000 employees in 75 countries surveyed as part of the Global People Survey on the
working environment
— European Works Council
— Group Works Council in France
— Structured dialogue with trade unions
— Local BNP Paribas SA committees in France for making decisions at the appropriate level
— Mix City, an association of female executives
— Echo’Net intranet, which provides daily information on the Group’s strategy and projects to its
200,000 employees
— Flu pandemic campaign
Community — Participation in the business forum (Forum des Entreprises) with government representatives
— Over 1,300 partnerships formed by the Group’s retail banks in France, most notably with educational
establishments
— 124 local partnerships set up, including 41 in 2008, and 207 micro-businesses set up in 2009 through
the Projet Banlieues social outreach initiative
— Running ANVIE’s Sustainable Development Club
— Member of working groups run by ORSE, EpE, Medef, AFEV, FBF and Europlace (French associations
active in environmental and CSR issues)
— A new citizen’s blog, http://www.forachangingworld.com and the “En Région” site which describes
the Bank’s initiatives to help its customers in France
At end-December 2009, the Group had 201,740 net permanent paid (NPP) employees,
representing an increase of 28,552 NPP employees compared with 2008. This increase
was primarily attributable to the acquisition of Fortis Banque and BGL which consoli-
dated the Group’s presence in Europe. The Group’s worldwide workforce breaks down
as follows:
33% France
(nm Oceania)
(1) For human resources development data, the scope of this analysis is the total NPP workforce managed by BNP Paribas as
opposed to the consolidated workforce, which is limited to staff working for fully or proportionately consolidated entities
calculated pro rata to the consolidation percentage of each subsidiary:
126
BREAKDOWN BY GEOGRAPHIC AREA
2006 2007 2008 2009
France 57,123 64,080 64,217 64,635
Europe (excl. France) 53,461 62,473 68,542 95,201
North America 14,810 15,046 15,222 14,984
Asia 5,571 8,833 9,494 10,143
Africa 6,201 6,692 8,883 9,205
Latin America 2,924 3,287 3,957 4,801
Middle East 1,308 1,700 2,194 2,096
Oceania 513 576 679 675
TOTAL 141,911 162,687 173,188 201,740
The Group’s workforce in France remained stable in 2009 and now represents less
than one-third of the global workforce. The integration of Fortis Banque and BGL was
chiefly attributable for the increase in the Group’s headcount in Europe. In Eastern
Europe, the Group’s workforce was reduced significantly due to the extent of the
economic crisis affecting the region’s local markets.
Age pyramid
The Group’s age pyramid remains balanced overall. The lower age groups are pre-
dominant in most of the Group’s divisions, while the opposite is true of retail banking
in France and Italy, while the age pyramid of the Group’s retail banking operations
in Western Europe is predominantly comprised of older employees. (1)
(1) Statistical data at December 2009 (excl. TEB, Fundquest and Sahara Bank JSC).
2006
2007
2008
2009
Italy and Belgium where they will be used international careers as well
as by the superior working
on a Europe-wide scale. conditions, attractive
(*) United Kingdom, Italy, Russia, Turkey, Ukraine.
compensation and extensive
training offered by BNP Paribas.
Ensuring recruitment that meets
the specific needs of each business The distribution of hires in France by age
In a turbulent economic and financial profile was stable in terms of relative Work-study
environment, recruitment remained at a shares, with recent graduates accounting training for
high level in 2009. During the year, a total for 50%. There were 1,234 hires on work- students:
of 14,549 permanent hires were made by study contracts, including 764 in profes- a priority
the Group while 2,691 permanent hires sional internships and 470 in apprentice- In 2009, BNP Paribas’s
were made in France. ships, comparable to the levels in 2008. At work-study programme
was extended to a further
31 December 2009, 1,539 young people 1,000 students, bringing the
were employed under work-study con- total number of work-study
positions in the organisation
tracts in France. The number of trainees to 1,539. Students following
taken on under the VIE (Volontariat Inter- diploma and masters’ courses
receive work-study training
national en Entreprise) programme was in a specifi c business line
stable, with 190 volunteers sent on mis- and obtain the necessary
experience to ensure that
sions in 2009, compared with 205 in 2008. they are fully prepared for
The number of work placements for mas- the world of work when they
graduate. Students following
ter’s students amounted to approximately diploma and masters’ courses
1,200. receive work-study training
in a specifi c business line
and obtain the necessary
Close links with schools experience to ensure that
they are fully prepared for
and universities the world of work when
The Group maintained and reinforced its they graduate. Work-study
training not only helps to
policy of developing close ties with third- promote social mobility and
level institutions in France and Belgium professional insertion for
participants but also enables
BNL/Rome and implemented a wide range of in- them to receive a salary
novative approaches aimed at young during their studies and, in
some cases, to obtain grant
people. assistance from companies
for their university fees. The
scheme enables young people
from all social backgrounds
to obtain higher-level training
and to enter the workforce.
130
developed to assist staff in finding Louveciennes In 2009, the induction programme for
the training offering that best meets
training centre new hires was structured into three key
their needs. The Group training centre, elements:
in the magnifi cent setting — First steps: New hires are received
of Louveciennes near Paris,
Enhancing employees’ employability is a fully-fl edged corporate by their managers and by HR rep-
with the Group campus. It not only focuses resentatives. A specific training
on building competencies but
To confront the massive changes for also on providing a forum for tool has been developed which
banking sector business functions, the
sharing ideas and nurturing the couples new technologies and
corporate culture. The centre
Group has focused on enhancing em- caters to employees from all knowledge of the Group in a “se-
businesses, countries and rious game”. The so-called “Star-
ployees’ cross-business mobility. backgrounds. In 2009 close to
To this end, the support framework for 22,000 employees attended bank” game teaches about bank-
the centre to participate in ing activities as it is being played
employee mobility devised in 2008 was integration seminars, business-
rolled out at Group level with the follow- specific courses, cross- and can be used by BNP Paribas
functional training programmes entities throughout the world.
ing objectives: and major Group events.
— realising the value for the Group to The centre’s facilities have — Professionalism: This involves pre-
been upgraded to ensure paring staff to take up their func-
be gained from mobility in a context that they are environmentally
of ongoing and substantial changes friendly and that they comply tions and familiarising them with the
with sustainable development Group’s management principles.
within BNP Paribas; objectives.
— preparing employees for future — Perspectives: Introducing employees
mobility; to the wider Group and to their peers
— supporting business reorganisations within the organisation. This final
that involve employee mobility; phase generally includes an induc-
— fostering sharing and knowledge of tion seminar which provides partici-
the Group. pants with a strategic overview of
In 2009 a total of 14 sessions were organ- the Group.
ised for 145 people in order to support The induction programme also ensures
employees through major organisation- that new hires are introduced to
al changes. the organisation in a manner that is
BNP Paribas further facilitated access to consistent with their level of seniority
training in 2009 by providing upskilling and business function while ensuring
courses for eligible employees in France. compliance with the Group’s principles.
A total of 2,500 training sessions were or- It is particularly suitable for graduate
ganised during the year, resulting in the recruits as it marks the transition from
provision of 57,500 training hours. university into employment.
132
Deferred bonuses will be subject to per- tax treatment and social security ben- Employee
formance requirements over a number efits. In recognition of the demographic savings plans
of years and pegged to BNP Paribas’s trends prevailing in a wide variety of BNP Paribas organises
share price, in keeping with the Group’s nations, the Group has prioritised the employee savings schemes,
which are eligible for top-up
determination to promote sustainable issue of provision for retirement. In payments by the company
practices. France, several thousand employees and which provide a tax-
efficient savings vehicle
More generally, the Group’s remunera- subscribe to the Group retirement sav- for staff. Employees can
tion policy is founded upon principles ings plan (PERCO). Their savings be- choose the investment
vehicles that suit their
of fairness and transparency which are come available on retirement, in the objectives: funds invested
supported by: form of an annuity or a lump-sum pay- in BNP Paribas shares,
in diversified equities, in
— a uniform process for annual vari- ment. Top-up payments into PERCO bonds, or simply a blocked
able pay applying to worldwide amounted to EUR 3 million in 2009. cash account. In 2009, the
range of investment vehicles
operations; ■ Other company benefits proposed under the Group’s
— a strict delegation system which oper- The Group has a longstanding benefits employee savings scheme
was extended to include
ates in accordance with directives set policy which provides a high level of solidarity and socially
at Group level; protection for employees. These mech- responsible savings plans.
Amount payable
in respect of the year 2004 2005 2006 2007 2008 2009
listed
Minimum amount
2,945 3,772 4,696 4,728 1,738 3,782
per employee
Maximum amount
10,020 10,689 12,732 12,800 4,641 10,128
per employee
CAREER MANAGEMENT
Manager Human
Resources
BNP Paribas/London
134
Executive
development
seminars
The objectives for the PRISM
and NEXTEP programmes are
closely aligned with those of the
Group’s career management
process. They focus on creating
and nurturing a community
of senior executives in key
positions (PRISM) and ensuring
success in high-profile career
promotions (NEXTEP). The
aim is to ensure a linkage
between training and career
management policies and
that conditions are in place to
provide senior executives with
the skills they need to drive the
Group’s expansion. In 2009,
127 people took part in four
PRISM sessions which were
focused on individuals
taking up “manager of
managers” positions within
the organisation. In addition,
NEXTEP seminars were
organised for executives taking
up positions of increased
responsibility within the Group.
Anta Diagne
Diack, named BNP Paribas/London
“Best Female
Manager”
in Senegal
insights on team leadership while help- mal use is made of their existing skills.
Ms. Anta Diagne Diack, Deputy
CEO of BICIS, BNP Paribas’s
ing them to identify their potential for Thus, the Group’s performance evalu-
subsidiary in Senegal, was improvement. ation framework encourages dialogue
voted the “Best Female
Manager 2008” by the jury of
between employees and managers as
the 5th Cauris d’Or, an annual A dynamic mobility policy a key prerequisite for career manage-
business awards ceremony
organised by the Senegalese
Career mobility is not only a source of ment. More generally, the size, scale
employers’ federation, MEDS. competitive advantage for BNP Paribas. and breadth of the Group’s worldwide
A gala award ceremony was
held to present the prize on It is also the preferred means of adapt- operations provide ample opportunities
9 May 2009. Ms. Diack expressed ing human resources to organisational for career mobility. Despite the impact
her gratitude on receiving this
honour: “This award is symbolic. change. Mobility enables employees of the economic crisis, mobility oppor-
Through its decision, the panel to enrich their professional experience tunities were provided for several thou-
has chosen to reward a female
manager and to encourage and move ahead in their careers. Vari- sand employees in 2009.
her to pursue her efforts in her ous forms of career mobility are used A support framework has been devel-
professional and personal life.
Above and beyond the personal to develop employees’ potential in new oped for expatriate managers in or-
recognition, I am especially business lines and enable them to de- der to facilitate cross-border mobility.
delighted about the positive
impact that this may have on velop new capabilities: This comprises intercultural awareness
BICIS and BNP Paribas who gave — functional mobility. Mobility does training, support for spouses seeking
me the opportunity to succeed
in such a challenge.” not automatically involve a change employment, administrative assistance,
of position; it may also encompass etc. In addition, an internal job vacancy
professional development through postings service (“E-jobs”) is also being
the enrichment of skills, abilities and deployed at Group level. The number of
knowledge; job openings posted on E-jobs currently
— geographical mobility. This involves stands at around one thousand across
moving employees to new cities or, France, Italy and Spain.
in the case of international mobility, In other countries, particularly in Bel-
to another country; gium, France and Italy, the Group has
— inter-company mobility. Employees put in place dedicated structures (staff,
move from one Group entity to training, information, etc.) to promote
another. career mobility.
Although the diversity of the Group’s
businesses provides enormous scope for
career mobility, mobility decisions must
take account of employees’ individual
aspirations while ensuring that opti-
136
Diversity: a
patchwork of
local initiatives
throughout the
world
Diversity initiatives are being
pursued by Group entities in
a variety of countries. In the
United States, BNP Paribas’s
subsidiaries in New York have
established a Diversity Council
which organises high-profile
initiatives such as Diversity
Day (scheduled for 28 October
2009). In Bahrain, gender
equality is a key element in BNP Paribas/Paris
diversity initiatives and training
efforts. In the United Kingdom, Outreach to visible minorities Initiatives in favour of visible minorities
a Women’s Internal Network has
been established in London and in France are coordinated in partnership with
mirrors a similar Group initiative BNP Paribas organises a range of out- non-profit associations working in the
in France. In Belgium, Fortis took
steps to develop a diversity reach events for visible minorities in area of professional insertion. Please
policy as part of its integration France. These actions are designed to refer to the CSR Report under A partner
into the BNP Paribas Group.
A series of audits have been enable the Group to diversify its can- in society for more information on these
performed and working groups didate pool and to ensure that minor- partnerships.
established.
ity candidates are not dissuaded from
applying to join the organisation. To Gender equality in the workplace
promote equal opportunity, the Group In 20 0 4, a s required by the law,
participates in job fairs organised for BNP Paribas chose to examine the
visible minorities and in employment conditions under which gender equal-
diversity forums in underprivileged ar- ity was being upheld within the Bank’s
eas. These include IMS, Africagora, AFIJ, operations. Although well represented
the “Zéro Discrimination” initiative in in the workforce, in some cases wom-
Lyon, and the “Nos quartiers ont du tal- en face a “glass ceiling” which keeps
ent” project with the French employers’ them from rising above a certain level.
federation (MEDEF), etc. As in 2008, the In recognition of this issue, the Group
Group participated in the equal oppor- has committed itself to foster equality
tunity employment roadshow “Train pour of opportunity and treatment between
A diversity award l’emploi” organised in March 2009. This men and women at all stages of profes-
in France event enabled the ten companies taking sional life and to do more to promote
In 2009, BNP Paribas became part to meet job seekers who were pre- women into managerial and supervi-
the first and only French bank
to be awarded the French screened by public sector employment sory positions.
government’s “Label Diversité”. services, youth employment services and
This certificate recognises
the initiatives pursued by the associations involved in promoting equal Objective 2012: 20% of women in senior
Bank since the signature of its opportunities. management positions within the Group
Diversity Charter in 2004 and
rewards BNP Paribas for its Please refer to section 3.1.2: Ensuring re- Diversity management is a key com-
exemplary practices in terms of cruitment that meets the specific needs ponent of organisational efficiency. In
diversity in France. The “Spirit
of Diversity” policy covers of each business for more information on this area, the Group CEO has set an
18 forms of discrimination initiatives to promote non-discrimination ambitious goal. By 2012, women will oc-
which are prohibited by law:
origin, gender, age, marital and professional insertion. cupy 20% of the key management po-
status, pregnancy, physical BNP Paribas stepped up its actions to pro- sitions within the Group. This will entail
appearance, surname, health
status, disability, genetic mote diversity in the workforce in 2009. a concerted effort to promote at least
characteristics, lifestyle, During the year, the Group marked the 100 additional women to senior man-
sexual orientation, political
beliefs, membership of a trade tenth anniversary of its presence in the agement positions.
union and belonging or non- Seine-Saint-Denis department with an
belonging, whether actual or
assumed, to an ethic group, inauguration ceremony for the Grands
nation, race or religion. The Moulins de Pantin office complex.
award was conferred on
the recommendation of a
committee of representatives
from government, trade unions,
employer representative
bodies and France’s national
association of human
resources directors (ANDRH).
It recompenses the Group’s
determination to play a key role
in fostering social insertion,
equal opportunity, social bonds
and non-discrimination. FundQuest/Boston
Company
BNP Paribas/Bahrain
agreements
in France
BNP Paribas SA signed a long-term
within the organisation and within society. agreement on gender equality in
In France, the percentage of women Membership is open to all female execu- the workplace in July 2007. The
agreement replaced the previous
promoted into management positions tives with an employment status equiva- three-year agreement, signed in
(as defined in the banking industry col- lent to that of the French “cadre”. The as- April 2004. The agreement defi nes
the principles to be observed
lective agreement) or executive man- sociation’s purpose is to provide a forum to promote equal opportunity
agement positions (for subsidiaries not and gender equality at work. It
for exchange between members and the
provides for means of fostering
governed by that agreement) stood Group’s executive management bodies work-life balance and for bridging,
over a period of three years, pay
at 38% in 2009, versus 32% a year ear- as well as with other women’s groups in differences between men and
lier, and 28.5% in 2007. At BNP Paribas France and internationally. Its objective women working at the same
grades and with comparable levels
SA, the proportion of women execu- is to propose new “rules of the game” of qualifications, responsibility
tives has been rising steadily in recent and to develop new possibilities for the and professional effectiveness
as determined by performance
years; it was 38.8% in 2005, 40.3% in 2006, advancement of women and to assist evaluations. A budget of EUR 3
41. 4 % i n 2 0 07, 4 3.1% i n 2 0 0 8 a n d women in their day-to-day management million was set aside to reduce
salary differentials in 2008 and
44% in 2009. See NRE appendix – Social roles by promoting measures which facili- 2009. The initiative will be repeated
chapter for more information. By 2007, tate work-life balance. A wide range of in 2010.
BNP Paribas had already exceeded the activities are proposed: breakfast and
2010 target set within the banking indus- lunch meetings, awareness-raising work- BNP Paribas, the
try for the feminisation of managerial shops, training sessions and meetings with leading CAC 40
employment. As of end-2009, BNP Paribas motivational speakers who have specific listed company
had achieved its 44% goal, one year experience to share (www.association- for its level of
ahead of schedule. bnpparibas-mixcity.com). representation of
The Group’s operations in Italy have also As from 2008, the MixCity initiative was
women on its Board
of Directors
taken steps in this area. Thus, women spread to other countries, starting in Lux-
accounted for 37.9% of the workforce in embourg. In 2009, in the United Kingdom, A survey conducted by ORSE, the
French observatory on corporate
2009, versus 31.3% a year earlier. Women a Women’s Internal Network was estab- social responsibility, the French
accounted for 26.6% of managerial posi- lished in London while in the Gulf Region, Institute of Company Directors,
and the European Professional
tions and 10.7% of executive manage- a similar initiative was organised in Bah- Women’s Network – Paris, found that
ment teams. rain. Other networks are in the process of women accounted for 28.5% of the
members of the Board of Directors
being formed in Belgium and Spain. of BNP Paribas, making it a leader
Gender equality networks In London, the women’s networking group among its peers. Only four CAC 40
companies had boards with more
In France, the MixCity network was for- is coordinated by a steering committee of than 20% women directors.
mally incorporated as a non-profit asso- 25 women executives. The group has ini-
ciation — BNP Paribas MixCity. The objec- tially concentrated on mentoring efforts
tive is to create an active, value-added and on actions to increase the number
social network within the company and of women applying for positions in invest-
to serve as an advocate for diversity both ment banking.
138
Employment and
integration of persons
with disabilities in France
Integration of persons with disabilities
is a key aspect of the Group’s com-
mitment to social responsibility. To this
end, the Group strives to retain disabled
employees and to be more effective in
hiring disabled professionals.
140
Listening
to employees
“ By asking us to
participate in this
survey, BNP Paribas
has demonstrated
that it is committed
to achieving
improvements.
It gives me the
feeling of working
for a company that
is attentive to its
employees.”
BNP Paribas/Bahrain
A formal
psychological
support
programme
This dedicated assistance unit
was created in France in 2008
as part of BNP Paribas’s effort
to provide support for victims,
and members of the public
suffering from trauma as well as
staff members, service providers
and clients in the wake of hold-
ups, violence, hostage-taking,
workplace suicides, attacks,
terrorism, landslides, fires,
explosions and other natural
disasters. A 24-hour hotline is
available seven days a week
BNP Paribas/London and provides psychological
assistance to individuals
throughout France and French
overseas territories on behalf of
The open-ended question concern- variety of suggestions for locally-based BNP Paribas and its subsidiaries.
ing the direction for change within the initiatives. The service is available for
all employees and service
organisation elicited 32,152 responses The Group’s CSR policy was cited as the providers working in the Group’s
(52% of respondents). In addition to ex- second-most motivating factor for em- premises in France.
pressing satisfaction at being able to ployees, next to leadership. The empha-
participate in a worldwide survey, em- sis placed on the Group’s commitment
ployees also expressed a wide range to CSR was consistent across the entire
of expectations which were carefully Group irrespective of the business line or
analysed in order to plan the direction function in which employees operate,
for future initiatives. The numerous sug- age, hierarchical level, employment
gestions helped to enrich the content of status (managerial or line positions)
action plans for Group entities. and regardless of whether staff belong
Despite the turbulent economic climate, to special population groups.
the survey results demonstrated the ex- In the current economic crisis, the sur-
tent of employees’ commitment to the vey results underline the contrast be-
organisation and their confidence in the tween employees’ perceptions of the
strategic choices of its executive man- Group’s responsibility and the negative
agement. Employees consider that the treatment of the banking industry in the
Group is well positioned to meet future French media.
challenges.
In relation to BNP Paribas’s commitment
to corporate social and environmental
responsibility, employee perceptions
were even more favourable in relation
to 2008 and their comments provided a
142
Корпоративный журнал BNP Paribas 4° квартал 2009 N°31
Всё внимание
ИННОВАЦИИ
Это образ мышления
на мнение
МНЕНИЕ
Что ждёт кредитно-
инвестиционные банки?
ДУЭТ
От Дакара до Каира
сотрудников
Internal communications: Protecting employee health and its effects can be seen in the reduc-
contributing to social responsibility The Group’s occupational health poli- tions in both the number and length of
Internal communications efforts had to cy goes beyond simply complying with leaves of absence in the wake of at-
respond to an unprecedented range changing legislative requirements. The tacks and in requests for transfer to an-
of challenges in 2009, including a sys- major components of the policy are risk other position subsequent to an attack.
tematically negative treatment of the mitigation and support for employees In 2009, 46 employees received medical
banking industry in the French media. who are at-risk or who have become assistance after an attack. Five of them
Throughout the turmoil of the financial unfit for work. were referred to specialists for psycho-
crisis, BNP Paribas took all available op- logical help.
portunities to keep its staff informed by Preventing occupational hazards
circulating memos and informative bro- Prevention begins with an assessment of On behalf of the French Retail Banking
chures outlining the Group’s strategy. occupational hazards: violence in bank Division, BNP Paribas SA’s occupational
In 2009 a series of communication ac- branches, musculoskeletal disorders, air health department participated in a
tivities were targeted at employees conditioning and ventilation malfunc- working group set up to help to prevent
using a variety of media: “Ambition”, tions. A multidisciplinary team set up in and manage customer incivility and to
the Group’s in-house magazine is pub- 2006 pools the skills and knowledge of its assist and support customer-facing staff.
lished in English, French, Italian, Dutch members to prevent these risks and deal In the area of prevention, for example,
and Russian and serves as a source with pathologies stemming from multiple behaviour training is provided which
of news about BNP Paribas as well as factors. This approach to working condi- combines role-playing games and ex-
insights into its strategy. “Starlight ”, the tions offers greater opportunity for pre- periencing sharing exercises. Staff learns
in-house video channel, is devoted to vention and fosters concerted action. how to identify factors that lead to ag-
BNP Paribas innovations. Programming is In 2009, particular emphasis was placed gressiveness, apply techniques for han-
presented in a six-minute newsflash for- on the following areas: dling confrontational situations and cope
mat. Clips can be viewed each month — the approach to hazard evaluation with feelings of anger and humiliation. In
on the Group’s intranet sites in French, and prevention (mandatory docu- 2009 close to 2,300 persons participated
English and Italian. Since 2009 a news- ment required by the French minis- in incivility awareness training. Assist-
flash in Dutch has also been introduced. terial order of 5 November 2001); ance and support for employees are
A weekly newsletter, “Flash Groupe” is — the quality of ventilation and air provided by management. Psychologi-
circulated to staff in 15 territories and conditioning; cal and medical assistance is provided
provides a round-up of key news issues — lighting, office floor plate ergonomics by the occupational health department.
each week. Similarly, an annual review and new technologies (e.g. WiFi); In cases where death threats are made,
is also published while the Group’s busi- — ergonomics of staff workstations an emergency psychological support
ness-to-employee intranet was over- for employees working in Welcome team is mobilised. Similarly, administra-
hauled in 2008. The intranet website re- & Services retail banking branches; tive and legal assistance is provided for
corded 104 million page views in 2009. — ergonomic enhancements for call employees having to notify social secu-
Finally, a dedicated electronic newslet- centres in Lille and Paris. rity or policy authorities of workplace ac-
ter covering CSR issues is published on Medical assistance to employees that cidents or civil and criminal complaints.
the Group’s intranet each month. have been victims of attacks, in par- Specific initiatives are pursued to mitigate
ticular in the Paris region, is provided in other occupational hazards: information
conjunction with the city’s emergency campaigns, training, design ergonomics,
medical services This initiative has been remedial ergonomics and alert proce-
progressively reinforced in recent years, dures. In 2009, the Group stepped up its
144
BNP Paribas/New York BNP Paribas/Lyon
The Group’s entities outside France fo- taining positive labour relations. Labour ■ Belgium
cus efforts on the mitigation of occu- protests organised at national level had In recognition of their shared concerns
pational hazards and improving access no impact on the continuity of opera- for enterprise growth and in a spirit of
to care for employees through partner- tions. Mandatory negotiations in con- mutual respect, management and
ships with local health authorities. In nection with the annual wage bargain- staff representatives pursued an ongo-
Ukraine, employees of UkrSibbank who ing round led to an agreement signed ing dialogue on labour relations issues
were exposed to radiation following with three labour unions. For more infor- in order to prepare formal meetings of
the Chernobyl disaster qualify for ben- mation, please refer to the NRE appen- representative bodies.
efit payments and additional leave, dix – Social chapter – item 20: Employee This transparent approach helped to
and their health is closely monitored as relations and collective bargaining. lead to the decision taken by Fortis’s
part of an initiative run by the Ukrainian The other major development of the employee representative bodies in the
authorities. year was the ongoing reforms to em- second half of 2009 to support BNP Pari-
BNP Paribas is an active member of ployee representative bodies. In the bas’s acquisition of Fortis Bank and, in
Sida Entreprises, an association bring- wake of the negotiations concluded the second half, to back the ratification
ing together leading French investors in 2008, 100 works councils at national of the Group’s industrial plan by the
in Africa to help resolve ongoing prob- and local level were combined into works council of Fortis.
lems in the areas of AIDS prevention and 10 regional works councils. In addition, Thanks to the trust established, a dozen
access to treatments. These difficulties a significant number of meetings were collective bargaining agreements were
persist despite the financial aid provid- held with social partners to discuss the concluded within BNP Paribas Fortis.
ed to affected countries. BNP Paribas integration of Fortis. A number of these agreements were
helps to set up inter-company groups Finally, several meetings of the Labour made necessary by the industrial plan.
in the West African countries where it is Rights Commission were convened to Agreements covered areas such as
present, through its network of associ- discuss employer subsidies for commut- working time reduction, job security and
ated banks (BICI). ing in accordance with the terms of the functional mobility as well as the finan-
French law on social security financing cial status of employees of BNP Paribas’s
Developing harmonious labour for 2009 as well as employee savings, Belgian branch following the transfer of
relations across the countries in the presentation of the total compen- its operations to BNP Paribas Fortis.
which the Group operates that are sation report, the results of the agree- ■ Luxembourg
consistent with the Group’s values ment on the employment of persons In Luxembourg, the key area of focus
■ France with disabilities. for dialogue with employee represent-
In 2009, the Labour Rights Commission, ■ Italy atives during 2009 was the industrial
BNP Paribas SA’s labour information In 2009, wide-ranging negotiations and plan for the integration of BGL within
and negotiation body, met on 37 occa- consultative meetings were engaged BNP Paribas. This plan was presented
sions and negotiated the signature of with labour representative bodies to to employee representatives and ap-
14 company-wide agreements. Some examine restructuring proposals for a proved on 25 November 2009.
of these agreements were designed to number of BNP Paribas entities in Italy. In addition, agreements were also
improve or continue employee benefit Thanks to the synergies achieved with signed with the Luxembourg Ministry of
plans and management-employee dia- BNL, these negotiations enabled the Labour covering the secondment of BGL
logue, while others strengthen employ- planned reorganisations to be imple- employees to BNP Paribas Luxembourg
ee representation on various bodies. mented without need for workforce as well as agreements with the four larg-
The ongoing financial crisis had a reductions. est trade union bodies in the financial
major impact on labour relations in The negotiations also gave rise to the services sector covering the extension
France. Trade unions stepped up their signature of a framework agreement of the provisions of the 2009 collective
campaigns on the themes of preserv- on security measures for bank branches bargaining agreement for bank em-
ing jobs and purchasing power, reduc- and on classifications, staffing, compa- ployees for the 2010 financial year.
ing salary differentials and combating ny benefits and training.
social inequality.
Despite the deteriorating economic cli-
mate, BNP Paribas succeeded in main-
146
Micro-insurance Skills-based
As an adjunct to its microfi nance ac- volunteer work
tivities, BNP Paribas Assurance has be- MicroFinance Sans Frontières and JACadie,
come a shareholder of PlaNet Guaran- BNP Paribas’ two skills-based volunteer
tee, a subsidiary of PlaNet Finance, set schemes launched in 2007, began to
up in 2007 to develop micro-insurance produce results as early as 2008.
for MFIs. From January to October 2009, JACadie is an association that sup-
PlaNet Guarantee worked with 8 partner ports micro-entrepreneurs financed by
MFIs in 7 countries, providing insurance the ADIE. The scheme is partnered by
for 125,000 micro-entrepreneurs. It also the BNP Paribas Association of Retirees
initiated 10 research and development (ADR), which has 21,000 members. In
projects in 12 countries. two years, it has provided the ADIE with
skills support from some one hundred
volunteers throughout France. Over a
NGO Enda in Tunisia period of eighteen months, 2,000 peo-
Microfinance funds ple have received information about
The market in microfinance investment the scheme, 500 have expressed an in-
funds is growing rapidly and now rep- terest, 200 have been interviewed and
resents USD 6.6 billion managed by A BNP Paribas one hundred have been accepted as
103 investment vehicles. There are
initiative in Indonesia
new volunteers for the ADIE. With en-
some one hundred funds, 25 of which In August 2009, BNP Paribas granted couragement from BNP Paribas and
its fi rst micro-loan to MBK Ventura,
are commercial in nature. Since 2005, an MFI, for the equivalent of USD 1 million. the ADR, the experiment has been
as part of its responsible investing offer- To avoid exposing MBK Ventura to any further developed by creating a new
currency risk, BNP Paribas made the loan
ing, BNP Paribas Wealth Management available in local currency. MBK Ventura “Skills-based Volunteer and Outreach”
has given its French and international was fi rst founded in 2003 and grants loans association in November 2009. The new
to low-income Indonesian households
clients the opportunity of investing in a to fi nance their micro-business ventures. association recruits volunteers from
microfinance fund that supports 8 mil- In December 2008, it was ranked no.1 among among active employees as well as
the 1,300 MFIs listed by the World Bank
lion micro-borrowers in over 50 develop- (MixMarket) on criteria of profi tability, retirees and has extended its voluntary
ing countries. transparency and governance. Among its support to other organisations beyond
projects in 2010, MBK Ventura is planning to
In early 2009, BNP Paribas launched launch an Islamic microfi nance operation. microfinance, such help for children
Obli Etheis, its first microfinance mutual The loan granted by BNP Paribas will help and the disabled.
10,000 families.
fund. Obli Etheis invests 5% to 10% of its Microfinance Sans Frontières (MFSF)
assets in microfinance and has received provides MFIs in emerging countries
the seal of approval from Finansol, the with technical support. It has organised
French solidarity finance organisation. more than 20 missions since its creation
This portion of the fund, which repre- in 2007 in partnership with organisations
sents about EUR 3.7 million, is reinvested and networks such as SIDI, Horus, Pami-
in a fund, which has an impact on more ga, Agroinvest and the Aga Khan Foun-
than 3,500 micro-entrepreneurs in the dation. To date, more than one hundred
South countries. volunteers have expressed an interest
in making their skills available to MFSF.
In 2009, BNP Paribas Fortis established
contact with MFSF, which resulted in the
recruitment of some fifty new potential
volunteers.
As a result of its growing success, MFSF
has restructured its organisation. Since
MBK Ventura in Indonesia
December 2009, it has become an of-
ficial association with an employee pro-
vided by the Bank, which will enable
it to develop its activity and missions
abroad.
148
© Romain Joly
Stronger network
co-ordination
Within BNP Paribas, new foundations
have been established and the existing
Fortis Foundations integrated, demon-
strating the Bank’s aim of developing
its corporate philanthropy actions and
extending the benefits to civil society
well beyond the borders of France. The
BNP Paribas Foundation provides these
foundations with its expertise, notably by
sitting on their boards of governors.
There are now nine foundations work-
ing actively alongside the BNP Paribas
Foundation: BNL Foundation, BNP Paribas
Switzerland Foundation, BNP Paribas
Brazil Foundation, BMCI Foundation,
Cetelem Foundation and the Fortis
Foundations in Belgium, France, Lux-
embourg and Poland. They all help en-
rich the Bank’s corporate philanthropy
policy, in addition to the many initia-
tives developed and managed directly
by the Bank’s various entities in France
and abroad.
Against this background, the BNP Paribas
Foundation has strengthened its co-ordi-
nation and control over this network. An
initial seminar took place in June 2009,
bringing together everyone involved
in corporate philanthropy throughout
Europe. One of its key objectives was
to create a shared vision of corporate
philanthropy and to ensure that all com-
mitments are coherent and consistent.
Three major themes were identified,
which can be used by each business
ADIE’s support to micro-entrepreneurs line and country to develop corporate
philanthropy programs that meet the
needs they have identified in their own
BNP Paribas Foundation: prises a college of founders made up environment.
stronger governance of Bank representatives and a college In social support, the following
structure of four experienced outside people se- types of project are more especially
The BNP Paribas Foundation has ex- lected for their expertise (Jean-Laurent encouraged:
panded its activities substantially in the Casanova, Pascal Dreyer, Dominique — projects in favour of education,
past few years. Its areas of involvement Ferriot and Giacomo Scalisi). Each social inclusion and disability;
have been broadened to encompass steering committee (culture, health, — involving employees in outreach
new programs and its reach now ex- international outreach, environment, programs;
tends well beyond France. Projet Banlieues and Helping Hand for — financing medical and scientific
The Foundation has also established a employee projects) met three times dur- research programs.
new governance structure tailored to ing the year. The main focuses of cultural support
these new challenges. In January 2009, In 2009, the BNP Paribas Foundation had are:
Alain Papiasse, Head of Corporate a total budget of EUR 3.5 million for all — preserving and promoting our cul-
and Investment Banking (CIB), was ap- its programs. The budget was divided tural heritage;
pointed Chairman of the Foundation. equally between cultural initiatives and — support for innovation in the per-
The Executive Committee, which has outreach and health programs. forming arts.
been restructured and given broader Environmental support encompasses:
objectives, met twice in 2009. It com- — support for scientific initiatives.
150
rooms made available by the National Employee commitment urgency in Mali, the association has
Education Ministry in Casablanca’s El Id- decided to help Malian schoolchildren.
rissi school, and will provide the children Extension of the Helping Hand The school in Kersignané, an isolated vil-
with educational and medical support. program in France and abroad lage in the southern part of the country,
The finance provided by BNP Paribas The Helping Hand program supports has no access to energy. The associa-
Corporate Philanthropy will help launch general interest projects run personally tion plans to equip it with photovoltaic
a pilot class. by BNP Paribas employees. The pro- lighting to enable the children to follow
gram provides funding and support for catch-up and support classes in the
associations in which employees are evenings. The project will be fi nalised
involved on a volunteer basis. In 2009, in July 2010 when the solar panels will
the three project selection sessions be installed in the presence of Afrique
were highly successful, with 86 propos- Lémou members.
als presented by employees involved
in voluntary work. All in all, 62 outreach In Switzerland, BNP Paribas launched
initiatives were selected and fi nancial the Helping Hand program for the first
backing of EUR 162,000 provided for time in 2004. Don du Chœur, an associ-
projects as diverse as organising sports ation in which Aurélie, aged 24, is a vol-
breaks for youngsters from deprived unteer, organises concerts each year
neighbourhoods, purchasing educa- in order to collect funds for projects to
tional material for a school in Mali, sup- help children and support education
porting medical research projects and in several Asian and African countries.
renovating a specialised education The finance provided in 2009 by the
centre for disabled children in Tunisia. BNP Paribas Switzerland Foundation
L’éclairage de l’espoir is an example of helped drive forward another major
a Helping Hand project supported by project: the construction of a primary
the BNP Paribas Foundation in France. school and a water well for 270 children
Following a trip to Mali, Koudiéji created in the village of Ta Pen in Cambodia.
an association called Afrique Lémou
to develop education and healthcare
in the poor countries of Africa. Since
then, she has worked tirelessly to collect
funds and run humanitarian projects for
children in need. Given the desperate
152
Permanent Support Committee and
the Mohammed-VI Environmental Pro-
tection Foundation, and is a founding
member of the Initiatives Association.
The Foundation’s social commitment
is expressed through four actions. The
fi rst involves the inclusion of people in
diffi culties through training and artis-
tic activities. The second aims to help
disabled people in their daily lives by
providing support from specialised as-
sociations. The third focuses on medical
research and help for the impoverished
SOS Children’s Villages
sick through support for Moroccan re-
search scientists. The fourth is devel-
oping BNP Paribas Employee Helping
Hand projects within the subsidiary.
UBCI and SOS Children’s Villages BNL and support for L’Aquila
For the second year running in 2009, earthquake victims
UBCI, the Bank’s Tunisian subsidiary, On 9 July 2009 in the town of L’Aquila
supported the SOS Children’s Villages in Italy, BNP Paribas and BNL took part
association by organising a drawing in the inauguration of the Arti e Spet-
competition in three SOS Villages in tacolo association’s Sale per lo Spet-
Gammarth, Siliana and Mahrès. The tacolo, in the presence of a number
theme this year was the Environment. of celebrities. Sale per lo Spettacolo,
SOS Children’s Villages, an association which is financed by the banks, was cre-
that helps vulnerable children with no ated after the earthquake that ravaged
parental care, brought together a jury the Italian region of Abruzzo on 6 April
of artists, volunteers and employees 2009. L’Aquila was particularly badly hit
of the bank. Prizes were awarded to with the loss of 299 lives, thousands of
154
Vanessa Hayes, Cancer Genetic
Group, Children’s Cancer Institute
Australia (CCIA): studying facial
cancer in the Tasmanian devil to
advance research into human
cancers
In 2009, the Foundation extended its
initial backing for Vanessa Hayes by
financing her research work on the Tas-
manian devil, a carnivorous marsupial
native to Tasmania, in partnership with
the Children’s Cancer Institute. Since
the end of the 1990s, facial cancer has
killed a huge number of Tasmanian
devils, threatening the very survival of
the species.
Vanessa Hayes set up the first laboratory
capable of sequencing the tumour’s
DNA. The lab houses all the technology
and equipment required for sequencing.
Her research consists of studying the
mechanisms involved in this highly ag-
gressive contagious tumour, which kills
within the space of six months and is
responsible for the disappearance
La Boudeuse
of half the species in ten years. By se-
quencing the tumour’s DNA in infected
animals, she hopes to advances re-
search into human cancers. Environment This offi cial expedition, commissioned
by Jean-Louis Borloo, Minister of Ecology
and Sustainable Development, will end
in January 2011.
Support for the The BNP Paribas Foundation is in-
la Boudeuse Earth-Ocean volved with the scientific side of the
expedition expedition.
156
French choreograph Abou Lagraa, artis-
tic director of La Baraka Company, sup-
ported by BNP Paribas Foundation since
2006, was asked by the Algerian Minis-
try of Culture to build a cultural bridge
across the Mediterranean between
France and Algeria. Throughout 2009,
several events were organised in Algeria
as a precursor to the project, support-
ed jointly by BNP Paribas El Djazaïr and
the BNP Paribas Foundation. In 2010,
this three-year co-operation program
between the two countries will bring
together a contemporary ensemble
of twenty dancers within the Algerian
National Ballet and create a new ballet
called Nya, which will have its European
premiere at the biennial international
dance festival in Lyon.
For producer Aurélien Bory, artistic direc-
tor of Compagnie 111 and seven-year
partner of the BNP Paribas Foundation,
2009 was a year of consecration, par-
ticularly with his show Seven-Board of
Cunning. Created in December 2007
in Dalian, China, this show is the result
of an amazing collaboration between
the French producer and some fifteen
Chinese dancers and acrobats from
the Dalian opera. Its title, Seven-Board
Elizabeth Kontomanou, the 17th Saint-Louis Jazz festival in Senegal
of Cunning, is the literal translation of
“Qi Qiao Ban”, Chinese for the popular
Support for the performing ally acclaimed musicians supported by puzzle we know as “Tangram”. After an
arts the Foundation — such as singer Eliza- international tour, the show was given
beth Kontomanou and Simon Goubert’s a triumphal welcome in summer 2009
Jazz transcends national borders… drum quartet — giving them the oppor- during its Asian tour from Hong Kong to
BNP Paribas is one of the rare patrons of tunity to meet and play along with Sen- Singapore.
jazz, not just in France but also increas- egalese musicians in events organised As part of the French Season in Brazil,
ingly in other countries. by the festival. Franco-Ivorian choreograph Georges
In 2009, the BNP Paribas Foundation Lastly, building on the BNP Paribas Foun- Momboye, supported in his contem-
forged a new partnership with the Saint- dation’s ongoing support for jazz musi- porary works by the BNP Paribas Foun-
Germain-des-Prés jazz festival, which cians over the past ten years or so, the dation, presented his flagship show
held its 9th edition in May. Discovery BMCI Foundation (Banque Marocaine Boyakodah in a number of Brazilian
of young musicians, novel encounters pour le Commerce et l’Industrie) spon- towns including Rio de Janeiro, São
between experienced musicians, con- sored the Tanjazz festival, which took Paulo, Porto Alegre, Curitiba and Re-
certs in unexpected venues, attend- place in Tangiers in June 2009, for the cife. The tour was made possible by the
ance of a very broad public — these are second consecutive year. co-operation between the BNP Paribas
just some of the strengths that united the Foundations in France and Brazil. It ena-
festival and the BNP Paribas Foundation Contemporary dance and circus bled the Brazilian public to share some
in a community spirit. around the world moments of intense emotion provided
Banque Internationale pour le Com- For many years now, BNP Paribas has by the Momboye Company’s 35 musi-
merce et l’Industrie du Sénégal (BICIS), developed a bold policy in the field cians and dancers.
BNP Paribas’s subsidiary in Senegal, has of contemporary circus arts and cho-
been sponsoring the Saint-Louis jazz reographic expression, supporting art-
festival in Senegal for almost ten years ists and their companies to help make
now. BICIS recently strengthened its sup- them known to a broader public. In
port for the festival with the help of the 2009, three of its partners chose to em-
BNP Paribas Foundation. This partner- bark on an international adventure in
ship, which first began in 2008, enabled three different continents.
the festival to attract some internation-
Accretion Reverse of dilution. Accretion is where a corporate action (share buyback or issue of
shares in a smaller proportion than the increase in income following a merger or public
tender offer, for example) leads to an increase in earnings per share.
ADR (American Negotiable certificates representing one or several shares. Their face value is stated in
Depositary Receipt) dollars and interest is also payable in dollars. ADRs allow American investors to buy sha-
res in foreign-based companies that are not quoted on an American Stock Exchange.
Arbitrage Activity that consists of attempting to profit by price differences on the same or similar
financial assets. For example, in the case of a takeover bid, where the predator offers a
price that exceeds the price at which the target’s shares are trading.
Attribution right Right to receive bonus shares issued in connection with a capital increase paid up by
capitalising retained earnings. Attribution rights are quoted.
B2B or BtoB Business to Business: sales of products or services by one company to another.
B2E portal Intranet site for Group employees. The home page includes a browser, links to services
and a wealth of information concerning the various functions within the Group, practical
information for employees and career information.
Bond/Debenture Debt security whereby the issuer undertakes to pay the lender a fixed capital sum at a
specific future date, plus twice-yearly or annual interest payments. Interest payments —
generally at fixed rates — may vary over the life of the bond. Debentures are unsecured
bonds.
Capital Amount of cash or assets contributed by shareholders, plus any profits, retained earnings
or premiums transferred to the capital account. The capital may be increased or redu-
ced during the life of the company.
Capital increase A method of increasing a company’s shareholders’ equity. The capital may be increased
by issuing new shares for cash or in exchange for assets, such as shares in another
company. Alternatively, it may be increased by capitalising additional paid-in capital,
retained earnings or profits and either raising the par value of existing shares or issuing
new shares without consideration. Existing shareholders may have a pre-emptive right
to subscribe for the new shares or this right may be cancelled. A capital increase may
be carried out to give new investors an opportunity to become shareholders. All capital
increases must be authorised in advance by the shareholders, in Extraordinary General
Meeting.
158
Cash Flow Cash generated by operations that can be used to finance investment without raising
equity or debt capital.
CIB Corporate and Investment Banking, a BNP Paribas core business that provides financing,
advisory, and capital markets services.
Co-branding The practice of using two or more brand names to develop and/or promote a product
or service.
Consolidated net Net income of the Group after deducting the portion of the profits of subsidiaries attri-
income butable to minority shareholders.
Convertible bond Bond convertible into the issuer’s shares on terms set at the time of issue.
Corporate Governance Series of principles and recommendations to be followed by the management of listed
companies.
Coupon The coupon represents the right of the holder of a security to collect an amount corres-
ponding to the revenue distributed on the security for a given year.
Custody fee Fee received by a bank or broker to hold and service securities recorded in a securities
account. Custody fees are payable annually in advance. They are not refunded if the
securities are sold during the year, but no fees are payable on securities deposited during
the year until the beginning of the next year.
CVR (Contingent Value Financial instrument generally issued in connection with the acquisition of a listed com-
Rights Certificate) pany, guaranteeing the value of the underlying security at a pre-determined date. The
CVR entitles the shareholder of the target to receive an amount equal to the positive
difference between the offer price and a “reference” price.
Dilution Impact on the rights attached to a share of the issue of securities (in connection with
a capital increase, a merger, a stock-for-stock tender offer or the exercise of rights),
assuming that there is no change in the total income of the issuer.
Dividend Portion of net profit that the Annual General Meeting decides to distribute to sharehol-
ders. The amount of the dividend is recommended by the Board of Directors. It represents
the revenue on the share and the amount can vary from one year to the next depending
on the company’s results and policy.
Euronext SA Company that operates the Paris, Brussels and Amsterdam Stock Exchanges. Euronext SA
establishes market rules, decides to accept or reject listing applications and manages
all trading technologies.
FCP (Fonds Commun Fund invested in stocks, bonds and/or money-market securities. A FCP is similar to a SICAV,
de Placement) but is not a separate legal entity. FCPs are generally smaller than SICAVs and are easier to
manage. They are subject to less restrictive regulations and can be more specialised.
Free Cash Flow Cash available after fi nancing operations and investments, available to pay down
debt.
160
Free Float The amount of capital which is not under the control of stable shareholders. In other
words, capital that can be freely bought and sold and is therefore available to investors,
excluding for example shares held by the State, or shares that are subject to sharehol-
ders’ pacts and so on. On 1 December 2003, the stocks that make up the CAC 40 index
became weighted according to their free floats, as opposed to their market capitalisa-
tions. This change was born out of a desire to be consistent with the major world market
indexes which already function in this manner, and to ensure greater comparability
between industries and shares. BNP Paribas has a free float of 95% – one of the highest
on the Paris stock market.
Gain/loss on securities Positive/negative difference between the sale price of a security and the purchase
price.
Goodwill Difference between the cost of shares and the Group’s equity in the fair value of the
underlying net assets.
Hedge Funds Funds that take both long and short positions, use leverage and derivatives and invest
in many markets.
IFU (Imprimé Fiscal French tax return issued by a bank or broker, listing all the securities transactions carried
Unique) out on behalf of the taxpayer and all the coupon payments made to the tax payer.
Institutional investor Financial institution which, by definition or by virtue of its articles of association, is required
to hold a certain proportion of its assets in stocks and shares. Examples include insurance
companies and pension funds.
Investment club A variable- or split-capital company, which enables its members to jointly manage a
portfolio of marketable securities formed from an initial investment and/or regular ca-
pital contributions. Clubs benefit from a favourable regime in respect of capital gains
tax. The FNACI (national Federation of Investment Clubs), which is located at 39, rue
Cambon, 75001 Paris, provides on request all the information required for the launching
and smooth running of these clubs.
Investment Solutions A BNP Paribas division comprising six businesses: Asset Management, Insurance, Private
Banking, Online Savings and Trading, Securities Services, and Real Estate.
LBO Leveraged Buy Out. Company acquisition fi nanced primarily by debt. In practice, a
holding company is set up to take on the debt used to finance the acquisition of the
target. The interest payments due by the holding company are covered by ordinary or
exceptional dividends received from the acquired target.
Liquidity Ratio between the volume of shares traded and the total number of shares in issue.
Market capitalisation Value attributed to a company by the stock market. Market capitalisation corresponds
to the share price multiplied by the number of shares outstanding.
Market-maker/ Market- Market-makers commit to maintaining firm bid and offer prices in a given security by
making contracts standing ready to buy round lots at publicly-quoted prices. Market-making contracts
generally concern mi d-cap stocks and are intended to enhance the stocks’ liquidity.
In France, Market-making contracts (contrats d’animation) are entered into between
Euronext, the issuer and a securities dealer.
MONEP (Marché Paris traded options market, including CAC 40 index options and equity options.
d’Options Négociables
de Paris)
OAT (Obligation French government bonds.
Assimilable du Trésor)
OCEANE (Obligation Bond convertible for new shares or exchangeable for existing shares of the issuer.
Convertible en Actions
Nouvelles ou Existantes)
162
OPA (Offre Publique French acronym for a public tender offer for cash.
d’Achat)
OPE (Offre Publique French acronym for a public stock-for-stock tender offer.
d’Échange)
OPF (Offre à Prix Fixe) French acronym for a public offering of securities at a set price.
OPR (Offre Publique French acronym for a compulsory buyout offer (final stage in a squeeze-out).
de Retrait)
OPRA (Offre Publique French acronym for an offer to buy out the minority shareholders of a company that is
de Rachat d’Actions) already largely controlled (first stage in a squeeze-out).
Option Contract giving the buyer the right (but not the obligation), to purchase or sell a security
at a future date, at a price fixed when the option is written (exercise price), in exchange
for a premium paid when the option is purchased. Options to purchase a security are
known as calls and options to sell a security are known as puts.
OPV (Offre Publique French acronym for a public offering of securities at a set price.
de Vente)
ORA (Obligation French acronym for equity notes, representing bonds redeemable for shares.
Remboursable
en Actions)
P/E Price/Earnings ratio. Ratio between the share price and earnings per share. The p/E
serves to determine the multiple of earnings per share represented by the share price.
Par value The par value of a share is the portion of capital represented by the share.
PEA (Plan d’Épargne French name for personal equity plans. Savings products designed to promote private
en Actions) share ownership, invested in shares of companies that have their headquarters in a
European Union country or in units in qualifying unit trusts. Revenues and capital gains
are exempt from personal income tax and capital gains tax provided that the savings
are left in the plan for at least five years. Investments in PEAs are capped at EUR 120,000
per individual.
PEE (Plan d’Épargne French name for employee share ownership plans. Payments into the plan and reinves-
Entreprise) ted interest are exempt from personal income tax provided that they are left in the plan
for at least five years (with early withdrawal allowed in certain specific cases). Surrender
gains are also exempt from personal income tax.
Preference shares Preference shares are shares that pay dividends at a specified rate and have a prefe-
rence over ordinary shares in the payment of dividends and the liquidation of assets.
They do not carry voting rights.
Price guarantee When a company acquires control of a listed target, it is required to offer the target’s
minority shareholders the opportunity to sell their shares at the same price as that re-
ceived by the sellers of the controlling interest. The offer must remain open for at least
fifteen trading days.
Primary market Market where newly-issued securities are bought and sold.
Prime Brokerage Activity consisting of providing a wide range of services to hedge funds, including finan-
cing, securities settlement/delivery, custody, securities lending/borrowing, etc.
Public tender offer Offer to buy shares of a company, usually at a premium above the shares’ market price,
for cash or securities or a combination of both. Where only a small proportion of the
company’s shares are traded on the market and the offer is followed by a compulsory
buyout, the process is known as a “squeeze-out”.
Quorum General Meetings can take place only if there is a quorum. For Ordinary General Mee-
tings, on first call there is a quorum if the shareholders present and represented hold at
least 1/4 of the voting rights. There is no quorum requirement on second call. For Extraor-
dinary General Meetings, the quorum corresponds to 1/3 of the voting rights on first call
and 1/4 on second call. For Combined Meetings, the quorum requirements depend on
whether the resolutions are “ordinary” or “extraordinary”.
Quotation The quotation determines the price of a security on the market at a given point in time.
Prices are generally quoted on a continuous basis throughout the day (from 9:00 a.m. to
5:30 p.m.), providing a real-time indication of the prices at which the security concerned
is changing hands. Continuous quotation allows market players to closely track market
trends. Quotations for securities with a low trading volume are made once a day.
Rating/rating agencies A rating represents an assessment of the default risk on debt securities. The rating awar-
ded to an issuer has a direct impact on the issuer’s borrowing costs. Changes in ratings
also have a significant impact on the issuer's share price. The main rating agencies are
Standard & poor’s, Moody’s and Fitch.
Report On the Euronext Paris market, transaction allowing an investor to carry forward a buy or
sell position from one deferred settlement date to the next.
164
Retail Banking A BNP Paribas division comprising French Retail Banking, BNL bc, BancWest, Emerging
Markets (now Mediterranean Europe), Personal Finance, and Equipment Solutions.
ROE Return on Equity. Ratio between consolidated net income and consolidated sharehol-
ders’ equity.
Secondary market Market where securities are bought and sold subsequent to their issue.
Settlement SFPI/FPIM Monthly date when transactions with deferred settlement (Service de Règlement Différé)
are unwound (or extended). This date corresponds to the fifth trading day before the
last trading day in the month. Société Fédérale de Participations et d’Investissement/
Federale Participatie en InvesteringsMaatschappij: a public interest company acting
on behalf of the Belgian government.
Share A share is a transferable security representing a portion of the capital of a limited com-
pany or a partnership limited by shares. Ownership of shares is evidenced by an entry in
the issuer’s share register (registered shares) or in a securities account kept in the holder’s
name by a bank, stockbroker or other accredited intermediary (bearer shares). Shares
quoted on the stock exchange are also referred to as “equities”.
SICAV (Société Variable capital investment company that manages a portfolio of securities on behalf of
d’Investissement its shareholders. Shares may be purchased or redeemed at any time. The shares are not
à Capital Variable) listed but their value (corresponding to the company’s net asset value per share) varies
each day based on changes in the value of the securities held in the portfolio.
SICOVAM (Société Now renamed Euroclear France. Organisation responsible for clearing securities tra-
Interprofessionnelle des, centralising all stock market transactions and facilitating the transfer of securities
pour la Compensation between member institutions.
des Valeurs Mobilières)
Solvency ratio Measure of a company’s ability to meet its medium- and long- term obligations.
Subordinated debt A debt whose repayment is contingent on the prior repayment of all other secured or
unsecured creditors. In exchange for the additional risk, subordinated creditors receive
a higher interest rate than other creditors.
Trade Centre Specialised sales force set up by BNP Paribas to partner its corporate customers’ inter-
national development. The Trade Centres offer importers and exporters a wide range
of customised services based on the “one-stop-shopping” principle.
Treasury shares Shares held by the issuer. Treasury shares are stripped of voting and dividend rights and
are not taken into account in the calculation of earnings per share.
UCITS Undertaking for Collective Investment in Transferable Securities. Term covering unit trusts
and variable capital investment companies.
166
Warrant Certificate issued on a stand-alone basis or strippable from another security (share,
bond) giving the holder the right to acquire securities (share, bond). Warrants issued by
financial institutions acting as market-maker give the holder the right to purchase (call
warrant) or sell (put warrant) various underlyings (interest rate, index, currency, equities) at
a fixed exercise price during a fixed exercise period. Although these warrants constitute
options, they cannot be sold short.
Work Flow Process automation technology allowing the sequential transmission of digital docu-
ments and files to the various people responsible for processing the data.
Yield Indicator of the return on an investment, expressed in percent. For shares, the yield cor-
responds to the ratio between the last dividend paid and the last share price.
Press Relations
Email: [email protected]
Tel.: +33 (0)1 40 14 40 02
+33 (0)1 57 43 79 95
6 May 2010
Release of Q1 2010 figures
12 May 2010
Annual General Meeting
2 August 2010
Release of H1 2010 results
For more information and to receive the latest BNP Paribas investor updates (press releases, earnings releases,
Investor Day announcements, etc.), please visit www.invest.bnpparibas.com.
* For shareholders who have already signed a stock market services contract (free of charge).
** Dates are subject to change.
168
Design and Publication
Brand, Communications and Quality - BNP Paribas
Photo credits
– Grégoire Korganow, Jean-Érick Pasquier and Gérard Uféras,
Corbis, Getty Images,
Cover photos
Front cover (from the left to the right and from top to bottom): BNP Paribas in London;
BNP Paribas Securities Services at Grands Moulins de Pantin (near Paris); a street in Hong Kong;
BNP Paribas Investment Partners, rue Bergère in Paris; BNP Paribas Fortis in Brussels;
a street in New York; a street in London; BNL branch in Rome; a bridge in Istanbul;
a sight of Rome; BNP Paribas in the United Arab Emirates.
Back cover (from top to bottom): BNP Paribas in Bahrain; BNP Paribas branch in Lyon;
BNP Paribas CIB in New York; BNP Paribas in Paris.
HEAD OFFICE: 16, boulevard des Italiens, 75009 Paris (France)
Tel: +33 1 40 14 45 46
Ref. D2AR10.04