BNP Paribas' CEO Discusses Q4 2011 Results - Earnings Call Transcript

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BNP Paribas Spons Ad (OTCQX:BNPQY) Q4 2011 Earnings Call February 15, 2012 9:30 AM ET


Ladies and gentlemen welcome to the presentation of BNP Paribas Consolidated Results 2011. Jean-Laurent Bonnafé, CEO of the group who will present the results along with COOs, Chief Operating Officers, Georges de Courcel, Phili Bordenave and François Villeroy de Galhau. A Q&A session will conclude the presentation with some of the questions in the room and then we will take questions from the conference call. Therefore I'm asking you to turn off your phone because the presentation is webcast live both on Internet and over the phone.

Thank you very much and then now leaving the floor to Jean-Laurent Bonnafé.

Jean-Laurent Bonnafé

Thank you, good afternoon. So, I will start with an overview of the key figures for the, our Group in 2011. 2011 has been characterized by a top profit environment, the Eurozone crisis and tensions on liquidity. In this context BNP Paribas has taken swift and decisive actions to adapt to this changing environment, already reaping initial benefits by year end. If you should look at numbers, we achieved reduced revenues above €42 billion, minus 3.4% compared to 2010. The net of income is €6,050 million, is a drop of 22.9% compared to 2010 and we posted a return on equity of 8.8%, minus 3.5 point as compared to 2010.

In terms of performance per share, the net book value per share improved to €58.2, that is 5% increase compared to 2010. Again I would say nice growth looking at the general circumstances of 2011 and the dividend payment should be €1.2 per share corresponding to a pay-out of 25%. We significantly strengthen our solvency, shown by the 90 basis points increase of our common equity Tier 1 ratio to 10.1% in the Basel 2 universe and this equates to 9.6% from the Basel 2.5.

Finally, we have taken actions to downsize the balance sheet as you know, and as shown by the 12% reduction in our cash balance sheet mostly achieved in the second half of the year.

Now if you move to, let's say what have been the three main issues in 2011. Well, first the exposure to the European sovereign debt, to that respect we provision our Greek debt exposure in the end to 75%. So this is in the last quarter in the range of €600 million on top of what we did before and we significantly reduced our sovereign exposure all over the year up by 28%.

In terms of market conditions, pension and liquidity and refinancing, well we have put an adaptation plan to reduce our net funding requirements in U.S. dollars reducing it by 24% and we have also increased our medium and long-term funding program from €25 billion to €53 billion and extended the average maturity to close to six years.

By year end our funding needs for customer’s activity were more than covered by several funding resources. This is at the global level of the group but also in the U.S. dollar universe. To address the increased solvency requirements by the EBA we deployed a deleveraging plan aiming at achieving our 9% common equity Tier 1 ratio under fully loaded Basel 3 by early 2013.

In fact by the end of 2011 we already reached the EBA target six months in advance. So this is the global overview of our group for 2011. I do believe this is a satisfactory set of results.

Philippe Bordenave will give you and will present you in a more detailed way both the liquidity, the financing and the results for last year. Then François will present you all our businesses for the domestic market area. We'll be back again for international retail banking and personal finance. Georges will cover investment solution and CIB. Then again, Philippe will explain you how to reach and how to get that 10% fully loaded Basel 3 target by year end. And then I will conclude the presentation.

So I'll be back in a minute.

Philippe Bordenave

Good afternoon. If you remember our day averaging plan and you'll remember that we had elaborated 80% of the plan. And now we have well, fully detained all the actions we want to take. And you see that the compliment is coming into CIB field mostly, essentially indeed. And so out of the total of 100 basis points, that is our target 57, more than half is coming from CIB. And those 100 basis points are the equivalent of 79 billion risk-weighted assets to be taken off.

We have achieved 32 basis points and 25 billion risk-rated assets [prediction] in equivalent in one half meaning that we are in line, but if in line with the target because it's first one, slightly below one-third is the first quarter, so quarter over starting. So we feel being quite in line with the target.

On the liquidity side, the result is quite spectacular in terms of U.S. dollar. As you can see we have reduced the assets denominated in U.S. dollar by $113 billion from $370 billion to $257 billion in six months. This of course occurring in the context where I would say short-term resources in dollars were dwindling very sharp as well on the liability side.

How did we achieve that, basically into two half? The first half was the sharp decline of dollar funding needs of CIB minus $57 billion due to the adaptation plan and so this, the half was a reduction of the structural needs of it basically. So, you can look at those 57 as being broadly as the same as 53 of funding needs of the customer activity reduction that you see at the bottom of the columns. 22 reduction in consumer loans and 31 reduction in trading assets. And so this is really structural, below the black line in the middle and the result was that BNP Paribas swung from a shortfall to a $90 billion surplus of total funding in dollars during this period.

And the other half another $57 billion came from a bit more easy, came from the $57 billion of U.S. dollars that used to be swept into other currencies at the time where we had a lot of excess dollar deposits especially from many market funds, that we were largely swapping into the currency than reusing in other currencies in the treasury business.

And of course one of very [abuse] move was to stop that kind of swaps destroying dollars and hence reducing the dollar effect by $57 billion. I would now stress that, well, despite the difficult context we have also continued to implement ongoing actions. First as the integration plan of BNP Paribas Fortis, we have already achieved €1.1 billion synergies which is a close from the target, very close to target that for the end of 2012 of €1.2 billion.

And so we have increased this final target by €300 million to €1.5 billion and this is going to be the last chapter of the integration in 2012. And it's also going to be helped by final €300 million of restructuring costs as well. So these results and this integration that was already successful, confirm our ability and know-how in terms of integration.

Moving to the [accounts] and sales now, first you’re seeing that there is a lot of exceptional items and we’re going to go through each of them because you have time to look at them. Just I would like to stress that if you make the total of the one-off revenues for the year its €35 million only pluses and minuses are broadly offsetting each other. And the same for the operating expenses, the net fees only plus €14 billion. So at the end the big run-off that is really not offset by anything is the big provision for Greece that came in three parts as you remember. So, €3.2 billion cost of risk and an additional €200 million through the associated companies.

Net of this one-off element, the downward trend already seen in 2010 was confirmed in 2011 in terms of cost of risk. Cost of risk shows 26 (Inaudible) net of ex-Greece. And the growth trend has been one of stabilization during the year, within the different quarters. And, while similar in most businesses of course, excluding Greece and so at these levels we can say that the cost of risk arrived at a level close to that of the average of the credit cycle that we have shown over the last 10 years or so, a bit more than 50 basis points.

The first quarter with all that was marked by, well, very challenging market conditions everybody knows that. And in spite of those difficult market conditions revenues showed a good resilience and contracted only by 6% to €9.7 billion, and cost were down by 3%. But again the real heat was on the cost of risk which increased by 30% to €1.5 billion due to the additional Greece provisions bringing them to 75%. And so with this provision the fourth quarter closed with a net profit of €765 million, half of the level of the first quarter of 2010.

Looking now at the annual accounts, total revenues amounted to €42 billion, down only 3% on 2010, with costs being reduced by 1.5%. Again, the cost of risk suffered from implement on Greek debt and the net profit is down by 22% at €6 billion.

The resilience [approaching] performance of our business in a very challenging environment in the second half enable us to achieve a return on equity of 8.8% and a return on tangible equity of 11.1% that is close to the cost of capital I think and I think this is encouraging for the future.

If we look at what went down in terms of revenues, to explain the minus (Inaudible) revenues, you see that revenues from retail banking were up, an increase of 1.5% with all our retail businesses achieving a positive performance. Investment solutions also showed higher revenues with €26.3 billion, up 2.8% in 2010 despite an increasingly difficult market environment in the second half of the year.

And indeed the decline is coming from CIB, lower at €9.7 billion due to the impact of adverse market conditions in the second part of the year, but also due to one-off losses incurred on the sale of sovereign debt and of €5 billion of credits in the framework of the leveraging plan.

So, netting losses in the sale of sovereign debt we have put that in grey. Europe revenues showed a decrease limited to 12.6%, a decent performance for such a year I think.

So I hand it over to François for more details about retail.

François Villeroy de Galhau

Hey, good afternoon. First sorry for my voice, I got a bad cold in Paris not in London but I will try to comment on our core business, which are retail banking activities into domestic markets which showed a very strong performance in 2011.

Let me first comment on France with some snapshots in this slide. First, regarding our volumes and activities we achieved rather impressive growth of deposits of plus 8.4% higher than the growth of our loans. If I look at our revenues, we had as an average plus 1.7% in 2011. A bit slowdown in the last quarters due to the evolution of our fees negative evolution of financial fees due to the condition on financial markets and also as a bank card fees due to a new regulation issued by the antitrust authority.

We kept meanwhile a strong discipline on our operating expenses. There was a one-off exceptional affect in the fourth quarter due to an exception in profit sharing, which represent as a whole 0.6%. If we take off this exceptional affect we have a growth of operating expenses of 0.4% only for the whole year.

At the end of the year it means an increase of our pretax income of 12.5%. We have, as you can see on the right exactly the same figure for the fourth quarter saw very robust performance despite the address economies environment.

If we now look now at the Italy, we had also a good growth of loans with a selected credit policy very risk aware oriented on some sectors. We had a negative evolution of our deposits but consistent and a bit better as you can see, the evolution of the market. The performance we are quite satisfied with, because there was some kind of deposits war in Italy, we didn't want to enter it like some competitors. But we remained in line and a bit better than the market.

The growth of our revenues regarding BML was plus 2.6%, which is a very good figure in the economic slowdown we had in Italy, balanced between margin of interests and fees, and the growth of the pre-tax income was much better with 16.2% due also to the strong performance you can see on the right regarding our cost income ratio. You know probably this curve, year-after-year since we implemented the acquisition of BML, we decreased strongly the cost income ratio, and in 2011 for the first year the performance of BML was better than the one of its peers in Italy. So, cost of risk was stable and it helps to deliver this positive performance in 2011.

I’ll now come to balance, which is as you know Belgium and Luxembourg in retail banking. Here again we had a very good performance in deposits with an average growth of 7.5%, a growth of loans which is lower as an average 5.5% and a growth of revenues which is the strongest of our domestic markets with 4.9% driven mainly by the growth of the volume of deposits.

So, pretax income had a sharp increase of almost 19% due also to the diminution of our cost income ratio, which is still a bit higher in Belgium and in other domestic market but we manage in 2011 to decrease it by two percentage points. We had also cost of risk contraction which contributed to deliver this strong income growth. You can see that the growth of the pretax income was especially strong in the fourth quarter but the figure for the year is more representative.

If I now turn to our action plan regarding 2011, I will not comment in detail through the slide. Perhaps two snapshots, the first one is the adaptation of our savings product offers to be consistent with the expectation of our customers and with new regulation of (inaudible). This means, among others more on balance sheet offer with long-term savings and we were quite successful already in 2011.

Second, in parallel with our commercial policy we are very committed to improve our operating efficiency. We announced in 2011 plans for cost-cutting for the three years to come. So, till 2014 in Italy, Belgium and Luxembourg for Belgium that represents up to 200 million cost savings in the three years to come. So this is in a nutshell our view for domestic markets.

And I will give the floor again to Jean-Laurent.

Jean-Laurent Bonnafé

Well so, Europe-Mediterranean, this division showed quite a dynamic commercial activity in 2011 driven by volume growth, deposits were particularly strong growing by nearly 12% with a significant contribution from Turkey.

Our loan growth was also stand at 7% despite the continuing reduction in Ukraine minus 20%. Our focus is now in Turkey, our integration plan for TEB is proceeding ahead of schedule and the operational merger has been successfully completed as well as the streamlining of the network.

Looking at the P&L revenues were slightly higher and they actually increased by 2% if we exclude Ukraine. And if you consider the sole Mediterranean area then decrease was in excess of 10%. Operating cost were higher by 4.5% due to continuing commercial investments and for example we have opened 46 branches in the Mediterranean out of which 32 in Morocco.

Thanks to the construction in cost of risk, pretax income was sharply higher at €111 million. So in Europe-Med countries we continued to pursue our selective development. Moving to the U.S. our bank has continued to show a dynamic business activity in a gradually improving economic environment.

Deposits increased significantly by 6.6%, while loans were slightly lower resulting from lower mortgage loans but we don't incorporate loans. We have continued to expand the customer relation organization with the launch of mobile banking services for example and the introduction of the wealth management structure.

Revenues slightly increased on the like-for-like basis despite the negative effect of regulatory changes on commissions. Operating costs were affected again by new regulatory constraints.

Thanks to the cost the strong decrease in the cost of risk in the end pre-tax income was up by nearly 27% versus 2010 making a strong rebound in the contribution of BancWest to the group results.

If we look now at 2012, for BancWest we expect to benefit from improving economic environment. We shall continue to invest in strengthening our wealth management offer and we aim to capitalize on business investments in the SME and corporate segments.

For the Europe-Med area, we intend to continue to deploy the integrated medal on the selective basis. We shall particularly focus on developing cost business platform such as the multichannel and the fixed-income platform, while at the same time we will keep operating expenses under control.

Resuming on Turkey, we intend to consolidate our position in a very attractive market. This means, first of all completing the implementation of the integration plan and also reap the full benefit of cost selling with other group businesses and I'm thinking particularly of wealth management, insurance, with investment solutions and, trade finance and fixed income with CIB. To sum it up, in 2012 we expect them to reap additional benefit from more selective business development approach.

So for personal finance then, in 2011 personal finance started to adjust its business model to the new operating environment. In France we have made a significant effort within credit access to people on temporary contracts while at the same time providing preventive solutions to customers facing difficulties.

And on top of that Cetelem Banque has succeeded in gaining over 25,000 new clients, leveraging on asset gathering and the sale of protection insurance. As I mentioned, we are adapting our mortgage businesses to the new regulation by integrating this type of activity with our domestic markets and discontinuing other activities with the exception of the partnership with Santander.

In Russia we have signed a major partnership with the country's leading bank Sberbank, which we expect to become operational on the third quarter of this year. In terms of P&L this has translated in a moderate revenue growth. This has been hampered by the impact of new regulations. And thanks to a contraction in cost of fees, pretax income has shown a significant improvement of 34% compared to the previous year.

In a nutshell, in 2011 personal finance has proven to be a socially responsible player, while at the same time adapting its business model to the new regulation.

Looking out at 2012, we shall continue to adapt the models into the new environment. In France we shall continue to change and fine tune the business model while planning to expand the sale of savings and protection insurance products.

We continue to put in place actions to facilitate credit access and to start implementing the business partnership with BPCE, that is to say, the operating platform that is producing and engineering the consumer loans.

In Italy, we shall roll out the Cetelem bank model to Findomestic Banca. This will imply upgrading customer relationship management, marketing deposit accounts and developing the marketing of mortgages and termed accounts within BML and insurance products with (Inaudible). We shall also look at developing new sources of growth in particular in Germany, Brazil, Central Europe and Russia as I said with Sberbank. In Belgium, after the cross sale with (inaudible) bank we are thinking to partnership with Banque de la Poste and by looking to extent the personal finance inside to emerging markets.

And now, over to Georges de Courcel, who will take us through the performance of investment solutions and CIB.

Georges Chodron de Courcel

Thank you Jean-Laurent, good afternoon. I will make some comments about investment solutions, then about CIB. First concerning investment solution, you can see that our asset under management has decreased of €60 billion, why? First of all, we have bad performance effect due to the fact that stock markets fall during the second half of 2011.

This means minus €34 billion and then we have some, a lot of outflows in asset management business. As you know in continental Europe there were a lot of asset outflows in asset management mainly in money market funds but also in equity funds. So, this is for asset management but for all the other businesses wealth management, personal investors and insurance, we enjoyed asset inflows.

And I would like to make a specific comment about insurance, as you know we have suffered a little on the first quarter in life insurance in France. We had some asset outflows. The good news is now that for the, as we are right now at half of the first quarter of 2012, we have now, we enjoying now positive inflows in life insurance in France. I think it is due to specific events in the Eurozone for the first quarter. So I think it's a very good news for 2012. So, globally we have mixed performances concerning asset inflows and asset outflows but the market in the earlier months was not favorable at all.

If we look at the figures of the net income and revenues, you can see that globally for investment solutions the revenues were up 3%, mostly flat for wealth and asset management, growing in insurance and in security services. In asset management we have decreased, unfortunately the revenues decreased of about 10% compared to 2010 because of what I mentioned, asset outflows.

We naturally work to deliver another pension plan reducing costs, I will come back just in a second. We intend to reduce cost of late 10% in asset management 2012 compared to 2011. And naturally we continue to develop in emerging countries because the asset management is very good in emerging countries. In all the businesses as I mentioned the revenues are up. We naturally continue, as you know in BNP Paribas, we continue to have always cost optimization. And so our pretax income excluding Greece is minus 6% compared to 2010. So, globally we continue to show that our business in investment solutions is resilient despite a very challenging environment for 2011.

So our action plan is very simple, to continue to invest and to adapt in those businesses. We think those businesses are very good trends in medium-term, even if we have to manage the cost in asset management, as I mentioned we're going to reduce the cost in asset management of 10%, but we continue to develop naturally in alternative investment and in energy market debts and equity at the level of asset management.

We continue to develop by organic growth in security services mainly in Asia and naturally in wealth management, we continue to enjoy a very good cost selling with our domestic market as François explained, but also in other part of the world mainly Asia when we have good development. So, globally we adapt quickly, but we continue to invest to develop in those very good businesses.

So, now I come to CIB, as you can imagine it is really revolution in the CIB business model all over the world for all the banks, and so as Philippe mentioned first of all we have to deliver the adaptation plan, we explained last November. So in U.S. dollar we have reduced sharply our funding needs. Our objective was, our target was to reduce by €60 billion end of 2012. We have achieved end of €57 billion end of 2011 and so we have increased the target from €60 billion €65 billion by the end of 2012. And naturally we have also to reduce our risk weighted assets.

It is interesting to see that in Basel 2 the end of 2010 we were at €187 billion in terms of risk-rated asset. After BASEL 2.5 we remain let's say at €197 billion due to first of all the increase of BASEL 2.5, let's us say only $57 billion. It's a huge amount but not so huge compared to some competitors. And our other pension plans, €22 billion in capital market and in financial activities, plus €5 billion in those adaptation measures.

So globally, at the end we have delivered a pretax income of €3.6 billion for the whole year, and for the first quarter we were just at the breakeven, which was not so bad due to the very, very difficult environment. So globally, we have delivered what we have said and as always at he level of BNP Paribas.

Coming quickly to global (inaudible) of our revenues you can see that the second half of the year was very difficult, mainly in fixed income due to the Euro crisis. Naturally, you see that we are not at all at the same level that we were in 2010 due to source difficulties on top of that due to the fact that we have sold some sovereign bonds. We have explained that in November. It was in October. (inaudible) and due to the loan sales because we have also explained that in our plan, we had to sell some loans.

So globally, we see naturally the impact was a crisis of our adaptation plan. If we look at the beginning of the year, as of today, as there is a kind of “normalization” in the euro market and due to the fact that we are very active also in our debt capital market activities, let’s say the beginning of the year is not so bad. In 2012, we will see after what will happen. It’s difficult to have some anticipation, but let’s say we seem to be in a better trend, mainly in financial activities.

Expenses and cost income ratio. As you know we continue to be one of the best in the world in terms of cost income ratio, which stood at 63%. If we exclude the losses related to the sale of the sovereign debt, which is really one-off, and the additional costs due to the adaptation plans, the cost income ratio stood at 56%. So you see that we continue to be around 60% as we have always expressed to the market.

And global [enterprise], we have changed a little our organization, pointing a lot about regionalization because we think it’s much better to be closer to the client region by region. So globally, we will continue to be at the best level in terms of efficiency, not only for 2011 but naturally for 2012.

I’ll go quickly on capital markets of 2011. You can see that, as I mentioned, fixed income at let's say a very difficult second half due to the crisis of eurozone. Excluding the impact of losses from sovereign bond sales, we are at minus 18.8%. Equities and Advisory, it was a good resilience because it was only minus 7% despite a difficult second half of the year. Naturally, we have managed cutting expenses minus 12.5% if we exclude the bank levies in England and in France and the cost of the adaptation plan.

So all in all, the pretax income of capital market activities stood at €1.2 billion. So globally, we can see that we continue to enjoy a very good client business. Despite unfavorable markets, we are still in a reasonable good position.

Just to comment about value at risk, we continue to stay globally at low level €50 million despite the fact of the parameters of the market are a little higher due to the relativity of the market. And what is important is that we have no day of losses greater than value at risk in 2011. If you remember, in 2008 we had very, very few days compared to a lot of competitors. So that shows you that our internal model seems to be very strong and the calculation of value at risk is strong at the level of BNP Paribas. I think it's important to mention that.

Turning to financing business, let's say that we had to adapt quickly to the new environment. Clearly, we have reduced the origination, mainly for long term loans denominated in U.S. dollar, but globally, naturally we are much more selective because we have to adapt our business model. I will come back in a second.

So globally the revenues are down, minus 4.7% if we exclude the impact of the losses from asset sales. And operating expenses are minus 3.2% if we exclude bank levies and cost of adaptation plan.

So all in all, I think we posted a good performance with a pretax income of €2.6 billion for the whole year. So I will mention quickly what are our targets for 2012 and after. Clearly our target is to be on track in the new business environment beginning of 2015.

As you have seen, we have expressed at a global level as a group that we wanted to be at 9% in terms of Tier 1 ratio fully loaded Basel 3. So naturally it implies that CIB has to make big moves. So globally, first of all we have to adapt our business. As we will see more of this intermediation in the market, we have to make a lot of synergies with this fixed income which are complex at the level of PNB Paribas and financing business, what we call originate and distribute. So distribute through our fixed income platform, thanks to our institutional clients.

So clearly, we are in this process. And the equity and advisory, naturally, we have to continue to strengthen our franchise, working closely between primary equity market, distribution and much more simple, let's say liquid products.

So globally we want to be on top end of 2012 to be more efficient in the new environment, which ask less liquidity consumption and not too much capital use.

So globally, naturally, it will have some cost. First of all, non-recurring cost, we will continue to have restructuring costs, $200 million in 2012, but we would generate in full year basis $450 million of synergies of reduction of course, and naturally, of course we will continue to sell some loans, we expect probably minus €650 due to disposals.

Naturally, as we are reducing the portfolio, we had mentioned that we will lose some recurring revenues because we will have less – let's say, not such a big portfolio. As we have mentioned in November, we expect a loss of minus €1.4 billion before the positive impact of repricing.

Let's say that in 2012 the positive impact of repricing will be low. Probably we will enjoy that mainly in 2013. And naturally we have to manage the regulation.

So all-in-all, after doing so, we think we are in a very good position to manage the new environment with a very good client franchise. And we let's say a good at the end compared to a lot of competitors, a good return on equity because we think that some competitors will have some difficulties to manage not only Basel 2.5 but also Basel 3.

So globally, we have adapted CIB very quickly and we will be on target the beginning of 2015.

Now I leave the floor to Philippe for some global figures.

Philippe Bordenave

So you know slide, in deed its very similar to the one I have shown at the beginning of the presentation but the difference is that, at the beginning of the transition it was about a dollar only and here it's about the whole of the balance sheet, all the currencies included. And so the comparison between the end of 2010 and the end of 2011 in the dollar slide it was since June in comparison you have seen to. Just here what is to be noted is that at the level of the whole of the group, the surplus here, it doesn’t work, okay, the $31 billion instead of $19 billion we have of course a much bigger surplus of stable funding over the funding in of customer activity.

Then the evolution of our figure is somewhat similar so we decreased and starting from the bottom, you see that we decreased the customer loans by €10 billion. You may remember that in dollars it was $22 billion. So it means that, indeed the dollar, the whole of the decrease comes from the dollars and the right stock kept going up slightly especially in the domestic market as you are seen. While in the trading assets the decrease was of early overall because you see the decrease was by €61 billion and the dollar part was $30 billion roughly $30 billion. So, the traders really made a lot of efforts in order to address them and reduce, compress their inventories in order to adapt to the new liquidity constraints and to adapt to the new regulations.

Then the fixed-income securities have also been reduced by a big figure, €70 billion. In that figure of course you have this around €30 billion sale of sovereigns, sovereign debt, and this is in that chapter. Then the Interbank assets were reduced by €11 billion as well. And the only category that is increasing, the one at the top, is the deposits with central banks, moving up from €31 billion to €55 billion as we saw that it was necessary while have increased deposits at central banks in order to be, because this at the end of the day is the real, the most liquid assets possible.

And so we have of course the ECB, but also at the Fed, in that figure you have $38 billion at the Fed, so it’s very big. We increased this under the amount of a dollar deposited at the Fed overnight. And you have also the Bank of Japan and other central banks. So everywhere we have kind of buffers of very, very liquid assets in order to be ready to whatever may happen. And then overall, it was a reduction to the tune of €130 billion, minus 12%, showing a very rapid adjustment to the new regulatory end market environment.

Now if you add them, the €55 billion deposits with central banks in yellow, with unencumbered assets eligible to central bank that can be brought to the central bank windows in order to get additional liquidity, it bring you to €160 billion of liquid assets reserves immediately available.

And given the deleverage we have done during the year, at the end of the year it accounts for 85% of the short-term wholesale funding. So really, it’s huge and we can face any further shrinking of wholesale funding, by the way we faced a significant one already. So, we are ready to see even more without any trouble.

And now about the medium and long-term funding especially, in 2011 we all along kept a continued access to medium and long-term diversified funding despite the crisis, you remember that we even increased the program from €35 million €43 billion of which we issued €8 billion in after July precisely during the crisis.

For 2012, the program is €20 million. It’s significantly reduced due to the adaption plan because our needs are reducing as well. And we have already completed €5 billion of new issues. As at the end of January indeed in two months because we’re taking into account what we did in December, as well because we closed the program last year at the end of November. So we keep issuing roughly €2 billion to €3 billion per month on a pure private placement basis, mostly private placement, retail bank, the placement is our own retail network as well and a few other ways with the private nature I would say like long-term reports placements through the CRH.

The average maturity is satisfactory, 6.7 years, so we don't have any problem with maturity. The cost is increasing, 122 basis points and this is clearly an issue for us. But while it would be even more costly in the public market so we are, I would say the program was, I would say, it is meant to be achievable without the need to resort to public issues in case the [credit] markets would remain too expensive throughout the year.

Switching to solvency, as we have already mentioned we further improved our common equity Tier 1 ratio and exceeded EBITDA targets six months in advance and we are at 9.6%. What is important to see, and if you take one step back and you look at the chart on the right you see that our capital base was roughly doubled in three years, with the ratio moving up from 5.4% to 9.6%, but indeed in Basel 2 its 10.1%. 9.6% is under the Basel 2.5 also. Apple for Apple it's 10.1% so almost doubled.

And the equity itself, the common equity itself went up from 29 to 58. And so we doubled the equity, while the risk-rated assets were moving up much, much less but Italy is more or less stabilized. And again, the switch over to Basel 2.5 generated an inflation of €32 billion. You remember we had said that it would be in the region of €40 billion at the end of €32 billion essentially capital market because well, and at the same time the deleveraging plan and adaptation plan has generated a reduction of €25 billion in terms of risk-rated assets of which precisely €8 billion related to the lower inflation resulting from the implication of the Basel 2.5 rules.

So, we have almost, well plus 32 minus 25 if you want we have almost, I would say balanced one with the other. Now from here we have to be at 9% at the end of the year or at the very beginning of next year on the Basel 3, fully loaded, fully loaded. So, how are we going to do that? So we start from 9.6% and first we deduct the 40 basis points consumption or reduction corresponding to the buffer set by the EBA for the mark-to-market of (Inaudible).

We keep that assumption at this stage. Then the bill of switch to Basel 3 is currently being evaluated at 180 basis points. So, it's a bit more than what we had said in the past. This is, the question is, it’s a moving target and the [text] is still debated. We have new proposals from the Parliament or new compromise [text] brought down by the Presidency, Danish Presidency.

So currently our best estimate is 180. We have the adaptation plan that is bringing back 68 basis points, in all 100 minus the 32 we already achieved. And then, we have the assumption of a straight dividend for both years that is adding 20 basis points. And the organic generation for, during 2012, we have taken the consensus, groomed our consensus as usual in that kind of situation, with the assumption of sales ratio of 25% to gain in 2012. And this gives 72 basis points totalling 9%. So it's an ambitious target, but it's a target that is achievable.

And I leave the floor to Jean-Laurent for the conclusion.

Jean-Laurent Bonnafé

Well. Again our group has very well balanced business mix with half retail, one-third CIB, one-sixth investment solution. We believe that this business mix has represented a key element of finding resilience, we no Europe flows throughout the crisis. As illustrated by the pie chart on the right hand side of the slide, even after the switch to Basel 3, to Basel 2.5 leading to higher capital markets risk-rated assets, the group business mix is not alter and we continue to represent a crucial factor of stability and resilience going forward.

So may be it’s not so scientific as an approach but in the end for bank it might be for the long run, quite efficient to stay and to keep such a well balanced portfolio of activities.

Again, if we look at the net book value per share and this is another way to say more or less just the same, this business model I’ve just mentioned has allowed us to increase year-after-year the debt value per share, we’ve reached now €58.2. Over the cycle, five years the average yearly growth is 6.3% and last year even in a very challenging environment, we get an increase of 5% from €55.5 to €58.2. So, again a very robust model, that can be seen easily in terms of profit or in terms of ability to increase the net value per share.

Now, looking at the dividend well proposed to the board that will propose to the General Assembly, a dividend payment of €1.2 per share corresponding to a 25 payout ratio. In addition we first keep auction to our shareholders. BNP Paribas earnings generation capacity enabled us to pay dividend year-after-year throughout the crisis. And this year in particular BNP Paribas stands as one of the few banks confirming the payment of a significant dividend. So, this also means that at least three quarters of the earnings would be invested in the company to bolster our capacity to finance clients and strengthen solvency.

For 2012, few messages, few key messages. First, we have to strengthen financial solidity, as we’re going to complete our deleveraging plan, consolidate again our liquidity position and arrive at the beginning of 2013 end of the year in fact with a very strong sovereignty position compared to the competition. Second, we intent to further pursue commercial developments expanding cross selling and innovation in our domestic markets, bolstering our business in fast growing areas such as Asia-Pacific, and generally, capitalizing on our global organization, our leading market position and our strong customer relations.

Last but not least, we shall continue to focus on improving on operating efficiency by promoting synergies, opportunities, continuing to invest on a very selective basis, and streamlining platforms. Hence 2012 will be a year fully dedicated to laying the foundation to be well positioned in approaching 2013.

And to conclude this presentation, three messages. In 2011, we have achieved good operating performances, especially in the retail bank and retail banking, but not only in the retail banking. Second, we have swiftly adapted to the new regulatory environment. And third, BNP Paribas remains a solid bank which is well positioned to service and finance its clients going forward.

So thank you very much for your attention and now we will take your questions.

Question-and-Answer Session

Thibault Nardin – Morgan Stanley

Hello, Thibault Nardin for Morgan Stanley. I’ve got a few questions. The first one is on the U.S. end markets. I mean we have seen some of the U.S. end markets going back to some European banks. And I would like to know if BNP Paribas actually re-shoot from commercial paper with this in a sense? And what will be, if you see a long-term ambition as BNP on this kind of funding sources if it could directly reengineer some kind of activity there? Second question will be on Italy, we have some again, loans growing, deposit falling, its quite clear that you don't want to participate to a condition on deposit but spending up is starting to get quite big, so it would be a concern on definite fronts? And finally as well as just as a quicker graph in terms of funding spread (inaudible) on the credit markets and I’m sure if you could add a bit more visibility on the nature of this private placements as I said about as surely unsecured? Thank you.

Jean-Laurent Bonnafé

Philippe will take the point for anything related to liquidity. For Italy you will see that the intra-group funding from BNP Paribas to BML end of the year has decreased. So we're looking at the balance and if we do not like to get to high prices for deposits in the end we have to come to the conclusion that you cannot lose too many market shares. So, we need to be balanced in this approach and in terms of lending, well in the end we’re originating loans in a very selective way in Italy and even in a challenging environment in Italy the BML model is efficient. You can see it on the cost income and even if the we stay with towards such high cost of risk compared to France our balance that are absolutely excellent. Well, the generating machine for BML is absorbing the risk. So in the end you get a net profit, so this is the way we’re looking at Italy.

Now, Philippe, for the funding.

Philippe Bordenave

Yes, about the commercial paper market in the U.S. we have yes, we have seen volumes growing back again a little bit since the beginning of the year. While, we are although we are hoping, I mean we are posting prices and if they come, they come, if they don't come, they don't come. I think they have (inaudible) so that also suffered some reduction in their own volumes, because the returns that now is extremely low and sometimes even slightly negative of the management fee.

And so in a world that is characterized we still kind of reintermediation of banks I mean the total amount they have to manage probably is not going to be what it used to be as well. So we are taking some more easily to come and we're using it and short-term assets as well in front of that, so we're flexible with that respect.

For the private placement, the bulk of what we sell in the private placement is structured issues because in the total, our derivatives business the equity derivatives of (Inaudible) derivatives, certain of our clients, they need support of investment. They can't deal, either they don't want to or they can’t because of their own [dialogue] deal in derivative, in pure derivatives, so they won’t support, investment support and so we are providing the issuer if you want that is the, so it’s a kind of a synergy between the market teams, the structure derivate teams and the treasury or the (inaudible) management. And so it’s, the bulk of it is not collateralized (inaudible) not at all.

Unidentified Analyst

Hi, good afternoon gentlemen (inaudible). So my first question will be related to the [LTO] of February. So, basically if you could explain us how, give us some guidance on, whether you have created any new collateral or whether you’re expecting a new collateral under the new rules? And now my second question would be about the state of your synergies. You’re saying its $300 million, so how much of that you expect from revenues and how much you would expect from cost? And another question also related to the 180 basis points index from Basel 3, you said there is going to be more than what you expected initially. So if you could give some color on where the impact would come from and which are your new assumptions because I remember when you used to give a guidance on Basel 3, you used to say it was between $5 billion and $7 billion impact in terms of capital. And then about $70 billion, so it would be $70 billion in terms of risk-rated assets. So if you could explain about that, about your host of something has changed? And also, if you are also accounting for the (inaudible) directive or not in those 180 basis points? And finally also if you have any kind of target for revenues in the heavy business for this year? Thank you.

Jean-Laurent Bonnafé

I would take the Fortis point and then Philippe anything related to the ratios and the (Inaudible) and Georges about savings. So for the Fortis roughly we are can say one-third revenues, two-third cost, you have more or less the detail. Part of it is coming from the end of the Turkish brand that has been delayed by 18 months. So these results are coming after 2012. But on top of it even if we did a lot we’re the first in the (Inaudible) within Fortis while recovered additional situation in which Fortis and BNP Paribas can either cross sell or share common platform, so this is basically the explanation.

Philippe Bordenave

And (inaudible) of February’s concern, we are still studying the collateral rules in detail because one of the characteristic of what is on the (inaudible) is that the collateral is enlarged but the new categories of collateral as assorted with big (Inaudible) very big (Inaudible) so that maybe they can be used better in cover booms, in market cover booms. Also we have to make a very fine tuned assessment of the optimization of all this.

And so this is, well what we can say about the end of February. And as for Basel 3, yes, we have said, I mean the tax exchange as well certain number of clarifications have been given and then the CRB4 project was somewhat different and is somewhat different from the Basel text, but of course we are basing our calculation on the CRB4 project because this is what we're going to have to comply with.

And just to give one example, I think we'll have give to detail more when we’ll have the final text. But just to give one example of big change, it's about the insurance when we have set €5 billion to €7 billion capital deductions. We were planning some kind of additional deduction for the insurance holding business and today with the last compromised proposal of the Danish Presidency nothing is deducted from the numerator, but the full investment would be weighted at the denominator. So it's a complete change, and so we for the same topic, so I think it's better not to give more too much detail, and because it could be changed every day or every week, well, we’re giving a kind of envelope that seems to towards as relevant at this stage I think.

Unidentified Analyst

(Question Inaudible)

Jean-Laurent Bonnafé

Okay, if we come back to slide 28 [Barbara], I can make some comments. First of all, we have no official target for 2012, because it’s so difficult to target. If we have targets for 2011, probably, we would have been haunted. So perhaps I can you give you some personal feelings of an old man having seen a lot of crisis like in CIB.

First of all bad news, the bad news are the fact that in financial business, probably, we will not continue to deliver 1 billion of course revenues each quarter, why? Because, as I mentioned during my presentation, as we will reduce the portfolio the level of revenues will be lower. But then the question from sending financing business is when the re-pricing will occur and in what magnitude, which is not so easy, we see some re-pricing in some type of business, in some others not. What we’ll see is some competitors of medium size a number of day. So let’s say, it will be difficult to anticipate exactly it’s a magnitude and the timing, but probably, not 1 billion equivalent.

Then continuing to capital market activity clearly, we think, and I think, that the kind of the second half is not at all the kind for CIB or BNP Paribas because we are to suffer of a very strong Euro crisis as you know and probably the euro will not collapse because we have got some, let’s say competitor, U.S. competitors, some of them saw that the Euro will collapse. It is not my feeling. And so we see that, we see clients coming back to BNP Paribas, as we mentioned when they not get from the other clients. So, globally my feeling is the time will be much better 2012. In what magnitude, it’s very difficult to express but, so all-in-all my feeling is that we will not come back to 2010 but probably we will deliver a much better situations at the second half of 2011.

Unidentified Analyst

(Question Inaudible)

Jean-Laurent Bonnafé

The underlying revenue is naturally not only as one loss of the specific losses. But as we are very cautious, first of all we reduced cost, which is ever better what (inaudible) so we have management of BNP Paribas.

Unidentified Analyst

So, and could I ask, for our question with respect to the LTRO, if it’s appropriate. So going with the because I know this is a collateral, the available central bank (Inaudible) collateral went from €170 billion to €150 billion, so should I consider that the difference would account for your participation in the first LTRO or not entirely, so is it based on that difference?

Jean-Laurent Bonnafé

We participate within the first LTRO indeed. I don’t know exactly the same figure but it played a role certainly in that, so we through the LTRO if you want we have some kind of change composition of the buffer. We’ve left product (Inaudible) and more deposits at the central bank and as I said we felt that appropriate. And yes, there is some kind of relation between the two figures, certainly.

Unidentified Analyst

Yes, hello, thank you. I have just two questions. The first one is related again to the LTRO. Would you (inaudible) using it’s based on your activity in Italy, I mean or would you use it from headquarters? This is of course to fulfill the spending gap. The second question is related to your ROE, currently the market expectation as you would based on consensus were about 90.5%. How fast would you expect this to grow and what would be the main driver to get to an improvement?

Jean-Laurent Bonnafé

About the first question, it’s easy to answer. We participated with all three main banks of the group in the LTRO, in Italy, in Belgium and in France.

Philippe Bordenave

Return on equity well obviously in 2012 we will not have the one-off of 2011 especially on the sovereign debt. So, this is one point that is positive. The underlying economy in Europe, going to be slow. The economy is slowing down. This is not a recession but the economy is slowing down. This is the second point but on the (inaudible) start of the year is okay. So, well the target you gave to us is something new, it’s not the target from BNP Paribas.

Kinner Lakhani – Citigroup

It is Kinner from Citi. First question just on slide 27, just wanted to better understand the deleveraging. So we have the $12 billion benefit on financing on the mitigation and we have $5 billion of loan sales. So just wanted to make sure I understand that the difference related to the loan roll off. And if that is the case, what kind of loan roll-off we would expect per quarter on average let’s say in 2012. So I’m trying to get a better understanding of the mix between how much you need to sell and how much is natural attrition in terms of the deleveraging? Second question is, historically you’ve provided some guidance at least in terms of top line outlook for the domestic retail networks France in particular. If you can provide any color on that? And the third question maybe what’s your views on the political landscape and what it means to the French bank as we stand today and what your read of the situation is today?

Jean-Laurent Bonnafé

One element I found on your first question is the cost, we I mean we have no preset on sale because we don’t want to be (inaudible) of the preset scheme and because we don’t want to sell our asset at bargain prices. So we have limits to the prices we are ready to accept. You have seen that in the second half in practice or in the third quarter, in the first quarter of 2011 we have sold $5 billion around, cost of $150 million, so three basis points and 3%, sorry 3% discount. That is something we had told you that probably could be 3% and 5%, so we try and limit that cost of selling our assets. And we’ll keep doing that, so depending on the demand, so we make more or less, sometimes we may slow down the new production of loans more or less and so this is something that has to be managed on a week-by-week basis.

Philippe Bordenave

For the (inaudible) barrier that means that never (Inaudible) at the level of BNP Paribas. About the, I would say the landscape in France, I mean all dimensions related to the banking industry there is nothing specific about, but France. I mean you have the worker rule, we have the (Inaudible) rule, you have to (inaudible) workshop. So there is nothing specific about France, but there is an election, this is a Presidential election, this the main election in France. So, as usual this kind of subject is given a lot of attention, but there is nothing specific about France. So this is the way we are looking at the situation, it's obvious that to find an economy especially on Basel 2 you need to have strong banks in terms of 70 you need to have strong banks that can bring customer to do capital market all over the place. So it's obvious that all these businesses are mainly the businesses were developing commercial businesses, so we're not, we do not feel at risk in that respect. Regarding...

Kinner Lakhani – Citigroup

So, just on the revenue…

Philippe Bordenave

What the top line in the result, that’s…

François Villeroy de Galhau

Regarding your question we never give outlooks for it. So (Inaudible) to come including in our domestic market, only some personal and qualitative use, obviously there is a slowdown in our main market. So this will break our revenues but if you look on the opposite side, we have strong reprising actions especially of our loans which will help us. We are still committed to improve our cost income ratio on our most important market. And regarding the risk it’s always difficult to have a forecast on risk but we had a level of risk especially low in France and Belgium in 2011. What we would expect for 2012 would be a stabilization or a slight increase.

Unidentified Analyst

Thanks, so usually you give the guidance in terms of (inaudible) between the revenue growth and the cost growth. Can you give us a little bit more on that side please?

Philippe Bordenave

Yes, we believe that in 2012 we will be in between the regular one point and half a point in liaison with the situation in Italy because already in Italy looking at the reside and not at the top line side. What is the key driver in Italy is the cost of resell. So looking at that we should get next year in between half and the full point. So this is the situation.

Jean-Laurent Bonnafé

If you look more specifically to France, it could be helped by problem, we headed the end of 2011 with this one-off effect of so-called Sarkozy premium profit sharing agreement which is really one-off and it’s very probable we won’t have to pay next year, this year. So it will help to that effect.

Unidentified Analyst

Thank you (inaudible). One first, quick question on your total assets so which reduced by 5% in the last quarter as it is big part of the reduction coming from the fixed income securities €45 billion. Part of it is, well, (Inaudible) and what is the other the part of it is? And second question regarding your payout policy so you basically have reduced from the both services to 25%. It is a new model we’ve seen in Basel 3 and the (Inaudible) context we are in? Thanks.

Jean-Laurent Bonnafé

To answer the second point and then Philippe the first point. The payout level is in line I would say the global situation of the bank and the need to increase solvency capital. And this is a way to be ready at once. So there is nothing that is said about the future. This is just the fact that with this level of profit, the clever move is to try to increase equity. It’s the far, by far the best way to run the company and this has nothing to do with any political circumstances. But on top of it increasing solvency just to finance customers so this might be linked to the fact that banks has to deliver what is (Inaudible) from them by I would say the public opinion that is financing the economy. But the decision on the payout is purely, the fact that we manage the bank to be ready as soon as possible that is to say buyer-end, and for the deleveraging.

Philippe Bordenave

Yeah. As we saw on the beyond the governance we saw (inaudible) from the banking group. And also, while part of the in portfolio, for example or some kind of part of that protfolios that had been reclassified as well from the fixed income in 2008 a few things like that.

Andrew Lim – Espirito Santo

Okay, it’s Andrew Lim at Espirito Santo. I just wanted to get more clarity of the impact of deleveraging on the revenues and the stability of the CIB business? You’re already delevered about half of the risk-rated assets, (inaudible) and CIB 22 out of the 45, and but if anything actually the revenues in, as [buyers] rates and capital markets and financing, proven quite well in the quarter.

So I was just wondering, out of the 500 million in cuts on gross operating income from your assets or (Inaudible) indication for CIB, how much can we expect of that to be included already in the fourth quarter? Or is there some sort of a delay maybe into the first quarter of this year? That’s my first question. And secondly, and the Basel 3 impact, the 180 bits, could you just aggregate that from between the impact of capital deductions and our RWA inflation? And then thirdly, your CIB trading bar actually went up in the fourth quarter which was a surprise to me. Is that a function of the market conditions or is that a function of the capital allocated to the division? Thanks.

Jean-Laurent Bonnafé

Pertaining your last question is a function of the market conditions, the relativity of the parameters not at all of the capital allocation, not at all.

Philippe Bordenave

You know that the value at risk is calculated based on the actual parameters of the last three months especially the last three months of the recent period. And as there was a big crisis since August, I mean parameters wasn’t quite lot so even if you keep the same progress position the same level of risk it translates into higher value at risk. So, this is very, very simple.

Georges Chodron de Courcel

Perhaps, I can comment a little concerning the revenue generated by capital market activities. It’s very difficult to see what is written and what (Inaudible) financing of capital markets, financing, the first question, okay, so I’m certainly in the slide. Globally we have seen that compared to the beginning of the recurring activities of 2011 we will lose 1.5 billion in global year due to the reduction of our portfolio. But on the opposite we see the beginning of the repricing, the difficulties is to know exactly at what type of level, at what speed we will see exactly this repricing. We don’t anticipate a lot of 2012.

Andrew Lim – Espirito Santo

Are you saying that the 1.5 billion impact has yet to be incurred? None of that has actually occurred yet in the fourth quarter

Georges Chodron de Courcel


Philippe Bordenave

Negligible, because we sold towards the end of the year

Andrew Lim – Espirito Santo

Right, right.

Philippe Bordenave

And hence the carrying gain, the loss of the carrying gain if you, is relatively small in 2011, was small and is going to be more important in the year to come. So, then with the (Inaudible) the specifics of the loans we have sold, but maybe, I know but maybe as you said we have sold half of what was expected to be or we had reduced half of what was expected to be reduced. And hence maybe the impact in 2012 will be closed to half the total impact.

Jean-François Neuez – Goldman Sachs

Hi, this is Jean-François Neuez from Goldman Sachs. Just have a few quick questions please. The first one is since the beginning of the year, we’ve seen decent tightening of spreads in the sovereign markets in particular in the Italian bond. I just wanted to know if you plan to resume your disposal process. The second thing is on the CIB revenues and without having to have an outlook or guidance in the sense, I just wanted to know where the similar conditions to the beginning of 2009, were reoccurring again in the beginning of this year that could provide maybe one-off tailwinds at least (inaudible)? And my next question is I saw this morning a headline that (inaudible) was not for sale. I suppose you wouldn’t take it if it was sale as you normally do. Nevertheless do you have vocation to control the company which has now taken obviously you started it yourself nice, fairly big company. And I just wondered if, I just wanted to know if longer term in your stable business means you always show it the importance of that has grown at some point (Inaudible) consider. And lastly, how you got the guidance for the tax rate of 2012, please?

Jean-Laurent Bonnafé

About (Inaudible) we have no location, we are just a commercial bank, there is no, there is the earning generation and seven customers location I don’t know if this is a worth for us. (Inaudible) is no longer part of the operational business of BNP Paribas for years, five, six, seven years, its part of the investment portfolio. So we are looking at this company in this way. We have the majority of this company. And on top of looking at this company as an investment, we are also looking at the company for its own interest.

So we will see what will happen one day, is that we are staying in this position is that we are doing something else. So investing this, we will see more but this company is part of the investment portfolio of the bank and (Inaudible) with that. And new generation from this company to the group so for the time being is totally okay. For Italy we believe that there is a number of very strong powerful measures that are going on. We have all seen Italy improving. We believe that Italy will continue to improve that is it. On the other hand, we have a portfolio to manage government loans, we are looking at this portfolio on a global approach mainly looking at the potential sensitivity and the productivity of the bank consuming the new rules from Bazzel 3. So there is nothing particular about Italy, while it moves to the end of October last year. Objectively the situation is improving, it can be measured up to the level of interest paid by Italy or the tenures maturity coming down from more than seven to close to five, five and a half. So it is a huge move. And this is not just removing the market, this is based upon a number of measures requirements from Europe, decision from the governing bodies and some kind of normalization of the situation, so well.

And globally, if you look at that portfolio, we will continue to manage this portfolio in an opportunistic way. This is the way we are managing the situation. Concerning CIB, we are not at all interested in the situation in the beginning of 2012 compared to the beginning of 2009, we will not enjoy (inaudible) growth some one-off gain because if you are member at the end to rates, of to rate it was sometimes very difficult to mark to the market some specific situation, or some specific position which was not at all the case, end of 2011. What we joined the is the beginning of 2012 is off let to seeing first of all to dept. capital market is very active and so we benefit a bit, we continue to benefit year after year of this situation because of the addition of the market in Europe, which will encourage you to Basel 3.

So globally, our clients business activities, it is good. And then on top of that, as I mentioned, in the first quarter, some clients in U.S., in Asia were “afraid of the eurozone banks”. And so I have seen that BNP Paribas is still a strong bank, has a very good rating compared to lot of other banks. They come back to us which is absolutely normal but which was not the case at the last – during the last quarter of 2011, so that we come back to a normal situation for BNP Paribas. And the situation was the last quarter was absolutely not normal for BNP Paribas.

Unidentified Company Representative

You had a question about the tax rate. So as the guidance, it’s not (inaudible), it’s roughly 28% to 30%, something like that, slightly below 30% probably.

Robin Down – HSBC

Hi, it’s Robin Down from HSBC. I want to follow-up on (inaudible) question because you didn’t really saw any problems in the [October] last year, I mean – I think Luxemburg is – has seen the results down. Was that because of the lack of liquidity or that because you are globally you are happy with the sovereign debt profile, that currently is down? The two issues arise in this, one is well not we should be looking for, that is the disposal of the potential sovereign bonds, if you do restart a cell program in this year, and then and perhaps much more (inaudible) looking ahead three years so the account rules coming in Europe, obviously what we – I think one scenario almost what your appetite is in terms of liquidity measured, your appetite is the holding sovereign bonds because if you competently (inaudible) six months, you done with the hold of sovereign bonds of, you will hold more of your liquidity in the form of cash with Deutsche bank they have called a big year of reduction in doing that. I mean, perhaps could you just expose that how you feel about (inaudible) as part of your liquidity portfolio going forward so what the cost impact that might be on a completely unrelated (inaudible)but I know you get so confused with the Fortis PPAs. I can see that you have accelerated or you’ve taken an additional PPA release in the fourth quarter clearly to do with (inaudible). Could you just remind us (inaudible) could you just remind us where we stand there with Fortis PPA of the fair value adjustments? Is there anything [most confident] in 2012?

Unidentified Company Representative

On that technical question the last technical question to start with. Yes we well it was also part of the selling effort. So we sold also as I said is part of the portfolios, so it creates some write backs on the PPA. And the regular amortization of we should keep bringing around 600 million next year this year I mean and then it will (inaudible) it will be (inaudible) and dropped to very small figure. About the (inaudible) portfolio as we said we want to get opportunistic and so we are not going to sell at the very (inaudible)to everybody is completely panic than the price we are really at very low and so it was not the right time to sell in November and December clearly from now (inaudible).

So we’ll keep this opportunistic approach and we are not excluding (inaudible) gains from some – but we have done a lot already and the current levels are much more sustainable than they were last year. So we are not in hurry though.

Guillaume Tiberghien – Exane BNP Paribas

Hi, it’s Guillaume Tiberghien from Exane BNP Paribas. I got two questions one relates to the corporate center if I strip out the fair value gain on that in Q4 and the two items of BPA as well as a small gain on hybrid you actually have negative revenues this quarter and I think normally you generate about 200 million per quarter. So it is nearly swing of 1 billion per year if we annualize the fair price. So can you maybe explain where we stand because (inaudible) before earnings [activity] and the other one is relating to acquisitions. Fortis acquisition is now pretty much in the bag in terms of integration and I appreciate you have to make a lot of efforts on solvency, but if you find that particularly in Italy, banks that may not be too expensive what would be your (inaudible) for acquisitions in Italy. Thank you.

Unidentified Company Representative

Well, then I will start with the first question. The (inaudible) what happened this quarter is very specific to the quarter and indeed we had to face I would say additional liquidity costs during this quarter and those due to the fact we have increased the (inaudible) of central banks on the short-term area. We have increased the central bank deposits and not very well as I narrated and this creates some cost and on the medium and long-term as well they have increased our program as I said and have to (Inaudible) was relatively more expensive. So it’s a technical delay between the time where we have (installed) those additional course and the time where we are (Inaudible) to the businesses. So those (Inaudible) are going either to come down if markets come back to normality on the three levels progressively or they went to back into the businesses this year. About Italy, there is nothing special about Italy but as we have said we’re totally investing this 2012 year adapting the business model, adapting to the new regulation and serving already existing customers also, this is the 2012 year deficit, there is no room for any (Inaudible) just being clear about that.

Jeremy Sigee – Barclays Capital

Jeremy Sigee from Barclays Capital. I just want to come back on the questions of funding and regulation. On funding what are the prospects you think for restarting public deficits in size and positioning ourselves back among the sort of leaders in that prices and how important is that to you and what you think the preconditions are for playing that role. And then second one just come back on to regulation in the French context, what are your expectations around the financial transactions tax, I mean acts and your potential actions?

Unidentified Company Representative

On funding, we’re rendering to give you the level we’ll find right, what is and when the market is coming giving a better access to the Europe based banks there is no reason why we didn’t issue gain on the public market, the only thing is that we feel that there was prior where it was really two expenses and not. I would said, not expectable for us as we have alternative sources. But we make on that,

Jeremy Sigee – Barclays Capital

Is your view that you could, you could [prepare] your program through the measures you’ve been pursuing so far private placements your network

Unidentified Company Representative

Yes, the program has been design that will be achievable without any need to use the public market if so, we wanted to achieve that. So we are free and that’s important to as we know flexibility.

Jeremy Sigee – Barclays Capital


Unidentified Company Representative

If not specific issue for an issue for particular situation because probably respects will equity transactions today if not completely clear, but clearly not just specific issue for French market an issue. So, probably some equity, so the equity is listed in Paris and perhaps of some derivates and those are good today that completely clear. But clearly in the level being is not an issue (Inaudible) final clients, but, this is the situation.

Unidentified Analyst

Thank you. It’s John (inaudible) just one quick follow-up on France retail revenue growth. And the effect, we’ve indicated intense to keep interest rates to low till 14, if we do something similar. Do you have any issues with maturing hedges that you got your net interest margin that could lead to problems with net interest income growth? Thanks.

Unidentified Company Representative

Nothing special, we’re well managing ALM position of the French Italy in quite productive way depending on the situation so we’re prepared to a new move, whatsoever so its complex situation looking at the balance sheet of a French bank because you’ve regulated products, you have fixed rates but that moving so several (Inaudible) its a business.

Unidentified Analyst

Two quick questions just about, regarding the liquid asset reserve of 160 billion so you’ve increased your reserve for central bank deposits. Just to understand if you can give some color of how you actually managed this overtime. You mentioned that (55%) of your short-term cash resources is that something you want to increase or return as a percentage or would have more central bank deposits overtime versus the intangible assets just to understand how this is managed from (Inaudible) perspective. Secondly coming back on the risk weighted assets impact that is typically the 10 billion capital market (deposit) 2.5, if you can get some color on what this is coming from and what kind of mitigation it is really (Inaudible) and should we expect some as well (Inaudible) three and lastly on your provisions you mentioned that provisions for 2012 would be probably stable to slightly increased to give any additional color by divisions and this is coming from but no finance (inaudible) normalization CIB. Thanks

Unidentified Company Representative

The first question will, we are faced a huge crisis in the significant half of last year and so reacted as fast as possible that will be on the self side. Now if it’s clear that with deposits definitely some sort of banks not remunerated. And there is no need to keep so such a huge profile once it seems would stabilize and come down. So, we will have we are going to follow the where the market is evolving. First we are going to follow also to have a kind of proposition between these (inaudible) our short-term funding keeps going down we need less the firm as well. And so these systems we are going to mange in order to try and optimize between the security and cost as always. So it’s difficult to deliver more than that it will depend on the circumstances. You ask about the mitigations how we mitigated that was a question so while taking to

Unidentified Analyst

Is coming back to basically slide 27, where you showed about the 2.5 impact on CIB, which is $37 billion and that 2.5 in capital markets, the allocation trend reduce it by $10 billion. If you could get some color on the $10 billion

Unidentified Company Representative

$10 billion – the $10 billion its about you know a 10 plus reducing some certain activities that are hit by Basel 2.5 like the correlation looks like (Inaudible). And you know developing other activities that are not impacted like debt capital market. So, we, the businesses you know are changing the type of business they are doing. And some times also with the same business the way they are doing it.

For example, with less inventories less cash inventories and more derivatives – for the hedging. So they are trying to change the business and the way they are conducting it. In order to make that as efficient as possible as to optimize it, with regard the new regulations that’s quite normal. And as it source businesses are conducted on a relatively short-term basis. And they are doing that towards the end sales before the new regulation comes into force.

Unidentified Company Representative

(Inaudible) naturally not only BNP Paribas but also banks, are reducing let’s say also banks inventory. So at the end they are (Inaudible) repricing, which is an increasing we don’t ask. As we have always mention naturally at the lines of cost will be paid by the investors because all the banks are reducing the inventories because the inventories are costly in term of Basel 2.5 and hardly in term of Basel 3. So as all the banks are doing so it’s possible to do so. It would not has been possible to do so. If BNP Paribas would have been alone in this target, but if you hear what all the competitors are expressing in term of mitigation of the Basel 2.5 action. You see that’s sort of mitigation, the relative position as a mitigation of BNP Paribas is much slower than the mitigation of some big competitors in Europe. So, it’s much easier to do so, now it was not possible to do so two years ago.

Unidentified Analyst

And how much should we expect if you continue going into Basel 3 to mitigate part of Basel 3, yeah, I think in a Basel you never really gave mitigation risk weighted assets.

Unidentified Company Representative

First of all, we don’t know the exact [pools] concerning basis here. We have to remain that, so today it’s too early to answer the question, perhaps we will be able to answering some (inaudible). But globally also banks will reduce the position today we don’t expect what will happen, I think with your positive things in the market mainly since the beginning of the year, let’s say (inaudible) in the market are mitigating to the Basel 2.5 because everything is clear so I anticipate that it will beat a same situation concerning Basel 3, but not in the beginning of the year, but after today it difficult to have a quantitative answer. But I am cautiously optimistic that, some market will change for also banks, so today perhaps I will answer in August.

Unidentified Analyst

Okay. Thanks. And the last question.

Unidentified Company Representative

The last question was, could you repeat it briefly. (inaudible) Basically is what we while we can look at the slide on the cost of risk. We had seen a kind of a stabilizing trend at the level of the group and more or less as you can see at the level of each of business line quarter-after-quarter. So, the improvement trend has kind of stopped fees and as are replaced by a kind of stabilization trend. So, I think that given the fact that the growth in Europe is nearly to be in the U.S. very, very big in that very brilliant in 2012 while we expect that trend to continue and the best kind of stabilization maybe slightly or (inaudible)


We will now take our next question from Sébastien Lemaire with Société Générale. Please go ahead.

Sébastien Lemaire – Société Générale

Good afternoon gentlemen. I have four quick questions please. First I just wanted to come back on the 180 basis point impact on Basel 3 on a regulatory capital. I just wondering what (inaudible) of the insurance capital charge you have assumed in your calculations to reach the 180 basis points and to cover all the moving parts apart from insurance expanding to higher impact of Basel 3? This is my first question.

Second, inside the underlying trading revenue we are quite impressive in Q4 especially this is (inaudible) because we also have a surprise in the capital markets division. I'm just wondering why cards have been not adjusted more inline with revenue growth in Q4?

Third question, on French Retail I guess that it was kind of a disappointment in terms of the revenue I just wanted to note that was basically a trend or just every quarter (inaudible) its not to make some judgment on a single quarter but it would be helpful? And the final question would be the breakdown of risk rated asset by division. It would be helpful say if you could delight it to us. Thank you.

Unidentified Company Representative

But the regulatory capital, as I said that well we try and monitor what’s happening on the regulatory funds and indeed, we had issued these first estimates one year ago almost one year ago already, it was 100 and at that time we were seeing 140 basis points for 1000 suites and now as it stands now, we say 180 in that evaluation, there has been a lot of clarifications of and changes up and down not only in particular indeed as you say, the insurance treatment that seems now to evolve towards the waiting of the capital invested in the interim business while at the time, it was more about a reduction from the capital (inaudible) so this is, but at this stage we are based on well our estimates on the so called danish compromise that is under table for this question (inaudible) level but we’ll this is the way we did.

Unidentified Analyst

Okay and just in terms of waiting of the insurance capital charge, could you just give a number?

Unidentified Company Representative

Rating is I think from 270% if I’m right. It's the same rating as the private equity business because by definition it's not listed, so I see 270%.

Unidentified Analyst

Thank you.

Unidentified Company Representative

I think the best way is to look at the cost of the second half, not only quarter-by-quarter. And as I mentioned, the cost/income ratio for the second half was 63%, the reserve, (inaudible) the lessees. Basically, (inaudible) lessees it was 59%. That's the reason why I mentioned around 60%, which is I think a good level, and the third quarter was too low. We had explained that there was an exceptional provision if I remember that (inaudible) took back so globally. Those sink about 60% globally for the second half, which is not reliable.

I think your last question was about the revenues of French Retail Banking. We should perhaps go to slide 53, if we can have it. And you can see that there is a sharp difference between the evolution of net interest margin in the fourth quarter, which remains strongly positive with 2.4%. We could expect this evolution to remain positive in this year.

There was a re-pricing action and/or dimension. The evolution of commissions has been negative, minus 2.7% due to two main factors I mentioned. First, financial fees, this is strongly dependent with the situation of financial markets and due also to a new factor which would play a role in 2012, which is a diminishing of bank card fees.

This is a new regulation by the antitrust authority. So this is clearly historic for the fourth quarter, where we were a bit hampered by the evolution of fees and it’s not a question of interest margins.


The next question is from Anke Reingen from Royal Bank of Canada.

Anke Reingen – RBC

I have a few questions. The first is on CIB and the outlook on earnings. I understand that some [affiliate's] moving parts but I just want to make sure I’m in the right way. If I take first half of 2011 pretax profit for the year and make the adjustments in Q4, take out the $1.4 billion of revenue hit at the cost synergies of $460 million, I come to about $1 billion pretax profit per quarter.

Is this like, longer term the right way to think about it through any re-pricing benefit? And then I was wondering the targets, there it seems the equity is allocated at 7%, so will this increase to 9% or 10% over time? And then on 25 billion of delivered risk rated assets reduction, I just wondered, you say its $5 billion from sales. How much is this in risk rated asset terms?

And then lastly, just on deposit trends in your sort of like core retail businesses, the volumes and French retail (inaudible) and P&L came down quarter-on-quarter and I just wondered if this, like your strategy continues to be not to compete on price at the extent of losing deposits or is there some seasonality in here? Thanks.

Unidentified Company Representative

Perhaps (inaudible) it’s a question on deposits in Italy. If you look at the figures, two alignments, first the evolution of deposits. Slide 56 is slightly better in the last quarter than used to be for the whole year. So it's for us a good sign that our policy of not entering the deposits role as aggressively as our competitors has been a good one.

The other element is that if you look at the evolution of the whole market, we remain in line with the whole market. We even slightly increased our market share regarding deposits. So it’s for us a very good sign that BNP Paribas reputation and image and the quality of our customer relations helped us to keep our clients and deposit, despite not offering always the most aggressive prices. So, we are clearly committed to keep this policy. We think it's the right mix.

Unidentified Company Representative

Just coming back to the figures. (inaudible) question about the risk weighted assets per business, its on page 89 (inaudible), it’s a percentage of $614 billion, so you just can have the figures. And your first question, I’ve missed your first question.

Unidentified Company Representative

The impact on the deleveraging from say, refinance stood well. I believe we were given, or we could say about this impact, that’s it.

Unidentified Company Representative

No, I don't think we can understand all the moving parts because I mean, clearly as it [rides], if I look at the future profitability of SIB business, if I tie 2011 pretax, add back the one-offs, take off the 1.4 billion revenue loss, add back the cost synergies, and then I have about 1 billion pretax per quarter. I mean I’m not trying to get guidance here, but is this the right way to think about it? Thank you.

Unidentified Company Representative

As I mentioned, we have no guidance concerning CIB, because we have never gave a guidance concerning CIB business because as I mentioned, I repeat, I am an old man, I’ve have seen so many crisis, so many relativity that I think it would be very dangerous to make anything, especially in this change of environment. You have to see that the competition is changing, we are – there are less competitors, some competitors encourage this liquidity. So it’s very difficult to make the differentiation because between the global decrease in the revenue pools, and a fact that a lot of competitors are disappearing or decreasing the situation globally. I mentioned that the financing activities we will see less revenues, you have all the figures, I don’t want to comment anymore, it depends on the speed and the level of the repricing. And so, you will see that quarter after quarter.

And second concerning the capital market activities, I repeat, BNP Paribas is well positioned compared to some competitors because we have very strong clients business activities and not at all appropriate direct selling that we see and so clients work lot with BNP Paribas. And so we will see not at the end of the day, but at the end of this year, at the end of 2015 that BNP Paribas will succeed after the crisis because BNP Paribas as you know is a growing company. We continue quarter after quarter to deliver revenues we see what we make and so there is no (inaudible) in the BNP Paribas not that we work as, we are boring so no (inaudible) no specific problem, and you will see that quarter-after-quarter, so I have no comments on that. Sorry to (inaudible)

Anke Reingen – RBC

Got it.


We will now take our next question from Alex Koagne from Natixis. Please go ahead.

Alex Koagne – Natixis Securities

Yes, good morning everybody, this is Alex Koagne from Natixis. I just have two remaining question. The first one is on revenue investment in Saudi, from our under pending in (inaudible) the €1.4 billion revenue loss was linked to the verdiction in (inaudible) should understand that the €15 billion additional value-added this quarter will not lead to any revenue less? The second one is on your (inaudible) policy or absolutely you are becoming a more or lets say closer since you are decreasing the lower of the peer ratio and even offer (inaudible), I'm just wondering what has the decision made you more cautious, I mean what is the reason behind you becoming a more cautious in arena? Thank you.

Unidentified Company Representative

I didn't get the first question. So,

Alex Koagne – Natixis Securities


Unidentified Company Representative

On to the second one, dividend out, we are 25%, the only limited number of banks that we lost dividend this year. So, even 25% should be considered as high because, the dividend you need to have a relevant earnings and profit capacity. What is the main driver behind this move it to affect that one of the main objective of the group is to sanction the capital base because we've really want to be ready by year-end to enter into new, I would say by adding for the banking industry from the first day at the right level not even to deal with problems or any issues coming from the pesos.

So, we want to turn the page, this would be done by year-end and this is why we came to the conclusion that 25% is fair enough. If you compare this detail to other large banks you can fairly understand that is of the same magnitude most banks offered something between 10% and 20% and continue to affect that part of the dividend is going to be paid in share 25% in the end online, inline with what has been given by other large banks are so.

This is some kind of an equity freedom, so there is no (inaudible) nothing this is a balance between giving dividend to the shareholders and the fact that the company need to be prepared as soon as possible. So nothing else, nothing more

Alex Koagne – Natixis Securities

Thank you. Yes, my fourth question I mean the (inaudible) reduction in CRD will lead to €1.4 billion revenue loss in your Q3, my understanding was that the revenue losses was linked to 30 billion (inaudible) reduction. As of today in CIB, the reduction would be 45 billion, which mean that we have 15 billion more. And I was just wondering whether this would lead to in year-on-year attrition or not?

Unidentified Company Representative

When we say risk-weighted assets, the risk-weighted assets are equivalent. And we don’t exclude to have some kind of sale of some part of the businesses with have some goodwill that would create capital with you know.

Alex Koagne – Natixis Securities

Okay, okay.

Unidentified Company Representative

With the equivalent risk-weighted assets.

Alex Koagne – Natixis Securities

Okay. Thanks.


We will take our final question today from Omar Fall from UBS. Please go ahead.

Omar Fall – UBS

Good afternoon. I’m Omar Fall from UBS, three questions please. Just the cost of risk, rising, financing, still at the modest level at 28 basis points. Can you give us some detail on whether these, which has a few lumpy files, and what’s the risk of you making the cycle work it through your deleveraging in some of the industries you are targeting like we have the self finance, auto finance, et cetera?

Second question, just on the fixed income revenue, which is surprisingly strong, almost best in class in the quarter at 6% Q-on-Q, can you give some additional color on how you manage this given the bias that you have to the European rates business and deleveraging given creating assets of decreased maturity as well. I think you made – have started and doing that, but I [can’t] hear.

And a final question from what is the – to the fiscal one on the LTRO, but some of you Chairman and auditors have stated that the long-term benefits are staying away from it’s reputation et cetera outlays the potential short-term P&L in the benefits for those banks they can manage it. So when you are thinking of the amounts you may borrow forward in the LTRO. Do you see any constrains on the (inaudible) size that you will borrow or for you it’s a free launch the stigma has been removed and it doesn’t matter? Thank you.

Unidentified Company Representative

Sorry, the sound is very bad and certainly the last question about the LTRO. We see the LTRO as really a technical way of trying and bringing some liquidity into Europe and so we have taken it as something that we could use and we have no – there is no deal or no given deal or we do exactly what we want to with that LTRO and the first thing obviously was to use it in order to stabilize the funding of our portfolios. We are using it – if we look back at the slide do you remember the slide with the balance sheet, the total balance sheet that was that I presented a few minutes ago.

Omar Fall – UBS

It’s 36.

Unidentified Company Representative

36 and do you see that it’s the fixed income situated above the line and so they are (inaudible) refunded through short-term as said here. So the LTRO for us was an opportunity to stabilize this short-term funding instead of bringing that kind of securities to the market or sometimes to the San Diego, three months or six months, it was an opportunity to study that exactly for three years with the possibility to (inaudible) until one year, so it’s very convenient. So we – we maintain by the way in the 188, the difference we got from the first (inaudible) we maintained that, that short-term funding because we see that as just a way to make sure that there is a short-term funding from the UCB stabilize for three years. In the way we look at it, it’s not really more than that because it’s just the kind of way to fund the liquid assets we have and that’s it, so there is no other constraint on the (inaudible) and I think that psychologically it plays a significant role, because it shows that the UCB was ready to make sure that the market would work properly and with the care of the market, and that’s very important.

Omar Fall – UBS

Concerning one of other question.

Unidentified Company Representative

Request of these at the level of CIB financing, probably, we can move it to the base of 49, let’s see there is nothing in relation with the de-leveraging not at all, and if you look at the cost of this, it is very low of all along the year. So, we have some slight increase in specific provisions at the end of the year, but this not at all a trend. A trend is a level, the average level of the year 2011, which is very low. And so, there is nothing specific and nothing in relation with the de-leveraging. What we can add is that as we work to let with large corporate and large institution, we don’t see anything specific and that will – that’s clean and there is nothing specific, and so that’s the reason why we constantly repeat that. We don’t see at the neighbor of CIB any reason to see the cost of risk increasing in 2012. So your first question or your second question I don’t remember was if I had correctly understood, why revenues, so let’s say so good in the first quarter on 15 competitors, to some competitor? I don’t know about the competitors, what I can repeat and constantly repeat is that we are the clients’ business model and so the revenues are linked to the activities of our clients. So globally, it was not so good in the first quarter, as I mentioned, it would be much better in the first quarter of 2012. So all in all, our client base, specifically on our domestic market, but also in U.S. and in Asia continue to (inaudible) in the first quarter and we have no specific procreative saving, and so that’s all in all, we thing it was not so bad but quite at the level of fixed internal.

Omar Fall – UBS

Okay. Thank you.

François Villeroy de Galhau

Okay. Thank you very much, Philippe will tell you a few words.

Philippe Bordenave

Yes, I would like to reassess we are all here today and then I would like to just first to see important, because your intellectuals are going to change indeed. First we like to introduce Lars Machenil, he is going to be my follower, may be you can stand up. He was always going to become CFO of BNP Paribas starting the beginning of March, as was already said. Second, I would like to give you a scoop and so that is a better we'll move into the group so she will stop being your main (inaudible) in the Investor Relation as the Head of the Investor Relation team. (inaudible) came in 2005 in the team and became the Head of the Team in 2008 and so she spends I would say three relatively good years and (inaudible) seven and for relatively bad year the crisis years and so she went through a (inaudible) and I think she made a great job, a very good job. So, I didn't get you if you will have your own opinion I guess but to our leasing as you made a very good job as a prime ware (inaudible) tremendously increase under the demand for informations and the pressure on the Investor Relation teams increased considerably.

She was extremely dedicated to you I think you are, you know that you can give a phone call at any time in the day or even in the night and the week ends and (inaudible) and she spent a (inaudible) supposed to be in allocation but she work for most everyday I think in the train to answer to some worries of the market. And she have the good knowledge of the market before coming to Investor Relations team, having worked in the past (inaudible) I mean in the structure product, selling structure product and building structure product. And she is a professional, I think is very big and she otherwise been seeing very trying to provide you with the old information you wanted to have within the disclosure that has a borders, so the borders nobody is allowed to go over, but within those borders I think she was really trying to do a best in order to provide you with information. So she will move back to business job of the private banking you may know that she was coming from private banking and she will go back to private banking as the head of the front-line banking so very important position in the bank.

And she had a lot of fun I think, but it's time for another challenge. So she will be replaced by (inaudible) as well, first Stephan has been working with BNP Paribas of 20 years around. So he is a (inaudible) of BNP Paribas and he work in (inaudible) very well and recently was more in CIB and very recently he was just leaving the position of head of the leverage finance Europe. So he knows the lot of financing business with CIB, and so I'm sure that this experienced all his experienced is going to help him to end position.

I wouldn't wanted to take this opportunity, he will take this new position in mid-March, but we wanted to tell you now because we (inaudible).

Jean-Laurent Bonnafé

So, thank you very much Beatrice and great success in the private bank. Beatrice will join the group of top executive for BNP Paribas by year end so this is 99% ratio, this is one of our targets. Thank you very much for attending the presentation.

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