BNP Paribas SA : Fixed Income Presentation – January 2024
Strong Solvency & Funding
Disclaimer
The figures included in this presentation are unaudited.
On
This presentation includes forward-looking statements based on current beliefs and expectations about future events. Forward-looking statements include financial projections and estimates and their underlying assumptions, statements regarding plans, objectives and expectations with respect to future events, operations, products and services, and statements regarding future performance and synergies. Forward-looking statements are not guarantees of future performance and are subject to inherent risks, uncertainties and assumptions about
The information contained in this presentation as it relates to parties other than
The sum of values contained in the tables and analyses may differ slightly from the total reported due to rounding. The alternative performance measures are defined in the press release published jointly with the 3Q23 results presentation.
Photo credits (cover page): onlyyouqj; HBS; A_B_C; Adam (Adobe stock).
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Fixed Income Presentation - |
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SOLVENCY & FUNDING: 2023
SOLVENCY & FUNDING: 2024
3Q23 HIGHLIGHTS
APPENDIX
Fixed Income Presentation -
A Business Model Well Diversified by Country and Business No country, business or industry concentration
Gross Commitments1 by region as at
IPSCorporate
Specialised
33%
20%
16%
10% 9%
7%
5%
|
|
|
North |
Asia Rest of |
|
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America Pacific the world |
CentreBusinesses (CPBS)
6%6% 17%
|
35% |
36% |
Commercial |
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CIB |
& Personal |
|
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Banking |
(CPBS)
- A balanced business model: a clear competitive advantage in terms of revenues & risk diversification
- An integrated business model fueled by cooperation between Group Businesses
- Strong resilience in changing environment
1. Total gross commitments, on and off balance sheet, unweighted of €1,820bn as at 30.06.23; 2. CRD 5
Fixed Income Presentation -
3Q23 - Solid financial structure
CET1 ratio: 13.4%1 as at
- 3Q23 results after taking into account a 60% payout ratio, net of changes in risk-weighted assets: +20 bps
- Impact from the launch of the second tranche of the 2023 share buyback programme (€2.5bn): -40 bps
- Overall limited impact of other effects on the ratio
Leverage ratio2: 4.5% as at
High liquidity coverage ratio3: 138% as at
High-quality liquid assets (HQLA) at a high level: €370bn as of
- ~70% in deposits at central banks
- ~30% in mostly "level 1" debt securities
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Organic |
|
|
growth: |
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13.6% |
+20 bps |
13.4%
Share
buybacks:
-40 bps
|
|
|
1. CRD 5; including IFRS 9 transitional arrangements; see slide 73 of 3Q23 results presentation; 2. Calculated in accordance with Regulation (EU) 2019/876; 3. LCR at the end of the period calculated in accordance with Regulation (CRR) 575/2013, Art. 451a; 4. Liquid market assets or eligible assets at central banks (counterbalancing capacity), taking into account prudential standards, notably US standards,
minus intra-day payment system needs
Fixed Income Presentation -
Liquidity: a diversified base of deposits and disciplined, prudent and proactive management
Favourable positioning and integrated & diversified model
supporting stability of resources
Base of deposits supported by the Group's diversification, its long-term approach to clients, and its leading positions in flows
- #1 European in cash management - #1 in securities services in EMEA - #1 private bank in the
Eurozone - Deposits diversified by geographies, entities and currencies:CPBF (26%), CPBB (17%), other Commercial & Personal Banking (19%), Global Banking (23%), Securities Services (11%) and IPS (5%)
- Deposits diversified by client segment:46% from retail deposits, of which ~2/3 insured, 42% from corporates, of which 20% operational, and 12% from financial clients1, of which 84% operational
Prudent and proactive management
- Measures and monitoring done at various levels (consolidated, sub-consolidated and by entity): by currencies, on horizons from 1 day to 20+ years, using internal and regulatory metrics, and based on normal and stressed conditions
- Indicators integrated into the operating management of business lines(budgetary process, customerfollow-up,origination, pricing, etc.)
Change in HQLA (€bn)
425 446 419 370
276
Change in immediately available liquidity reserve2 (€bn)
432 452 461 439
309
1. Excluding non-operational deposits under one month; 2. Liquid market assets or eligible assets in central banks (counterbalancing capacity), taking into account prudential standards, notably US standards, minus intra-day payment system needs
Fixed Income Presentation -
- CET1 ratio requirement1 as of
30.09.23 (2022 Supervisory
Review and Evaluation Process (SREP)): 9.79% of RWA
-
- Of which Pillar 2 requirement (P2R) of 0.88%
- Of which Conservation buffer of 2.50% and G-SIB buffer of 1.50%
- Of which Countercyclical capital buffer of 0.41%
- Excluding Pillar 2 guidance (P2G), non public
- CET1 ratio of 13.4% as at 30.09.23, 365 bps above
September 2023 regulatory requirement
CET1 Ratio
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13.4% |
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9.79% |
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0.41% |
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1.50% |
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2.50% |
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0.88% |
|
|
4.50% |
|
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Minimum Requirement |
BNPP as at |
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from |
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Countercyclical buffer2 |
|
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GSIB buffer |
CET1 total |
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Conservation buffer |
|
|
P2R |
|
|
Pillar 1 |
1. See Press Release on the notification by the
Fixed Income Presentation -
- Total capital ratio requirement1(2022 Supervisory Review and
Evaluation Process (SREP)): 13.98% of RWA as of
-
- Of which Pillar 2 requirement (P2R) of 1.57%
- Of which Conservation buffer of 2.50% and G-SIB buffer of 1.50%
- Of which Countercyclical capital buffer of 0.41%
- Excluding Pillar 2 guidance (P2G), non public
- Total capital ratio of 17.8% as at 30.09.23, ~383bps above
September 2023 regulatory requirement
AT1 and Tier 2 at 4.4% of RWA -
- Of which Additional Tier 1 layer at 2.1%
- Of which Tier 2 layer at 2.3%
Total Capital Ratio
17.8%
13.98%
0.41%
1.50%
2.50%
1.57%
8.00%
|
Minimum Requirement |
BNPP as at |
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from |
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Countercyclical buffer2 |
|
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GSIB buffer |
Total Capital |
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Conservation buffer |
|
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P2R |
|
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Pillar 1 |
1. See Press Release on the notification by the
Fixed Income Presentation -
~€124.5bn of prudential Total Capital as at
17.8%
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2.3% |
€15.8bn |
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2.1% |
€14.7bn |
€124.5bn
13.4% €94.0bn
CET 1
Additional Tier 1
Tier 2
Fixed Income Presentation -
Medium/Long Term Regulatory Funding 2023
Continued presence in debt markets
2023 MLT regulatory issuance plan: €18.5bn
~120% of the regulatory issuance plan realised as at
Capital instruments plan: €3.5bn; AT1 €4.0bn issued1
$1bn (issued in 2022, as pre-funding for the 2023 plan), PerpNC52, at 9.25% (sa, 30/360); equiv. 5Y US Treasuries+496.9 bps- €1.25bn, PerpNC7.43, at 7.375% (sa, Act/Act); equiv. mid-swap€+463.1 bps
SGD600m , PerpNC52, at 5.90% (sa, Act,365); equiv. 5Y mid-swapSORA-OIS+267.4 bps$1.5bn , PerpNC52, at 8.50% (sa, 30/360); equiv. 5Y US Treasuries+435.4 bps
Senior Debt plan: €15bn:
Non-Preferred: €6.0bn issued1, including
- £850m, 9.4Y bullet,
UK Gilt+215 bps - €1bn, 6NC54, « Green », mid-swap€+145 bps
- €1bn, 8NC75, « Green », mid-swap€+137 bps
- ¥27.2bn, 6NC54, mid-swap Tonar+105 bps
- €1.5bn, 9NC86, mid-swap€+160 bps
Preferred: €12.2bn issued1, including
- €1.25bn, 8NC75, mid-swap€+92 bps
CHF335m , 5Y bullet, CHF mid-swap+75 bps$1.75bn , 6NC54, 5Y US Treasuries+145 bps- €1bn, 6NC54, mid-swap€+78 bps
- €1.25bn, 10Y bullet, mid-swap€+118 bps
CHF225m , 6Y bullet, CHF mid-swap+80 bpsA$300m , 6NC54 (Fixed/Frn), BBSW+170 bps$1.50bn , 6NC54, 5Y US Treasuries+150 bps- £750m, 6NC54,
UK Gilt+155 bps - ¥121.9bn, 5Y bullet, mid-swap Tonar+60 bps
- ¥3.2bn, 7Y bullet, mid-swap Tonar+61 bps
- ¥4.6bn, 10Y bullet, mid-swap Tonar+62 bps
- €1.5bn, 9NC86, mid-swap€+95 bps
Other Secured Debt
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Covered bonds: €3.5bn; €3.7bn issued: |
Securitizations: €3.1bn; €1.9bn issued |
- €1bn, 7Y bullet mid-swap€+22 bps,
BNP Paribas Home Loan SFH - €1.7bn, 5Y bullet mid-swap€+15 bps,
BNP Paribas Home Loan SFH - €1bn, 5Y bullet mid-swap€+32 bps,
BNP Paribas Fortis SA
1. € valuation based on historical FX rates for cross-currency swapped issuances and on trade date for others; 2. Perpetual, callable on year 5, and every 5 year thereafter; 3. Perpetual, callable on year 7.4, and every 5 year thereafter; 4. 6-years maturity callable on year 5 only; 5. 8-years maturity callable on year 7 only; 6. 9-years maturity callable on year 8 only
Fixed Income Presentation -
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