The bank
for a changing
world
BNP PARIBAS FORTIS SA/NV
ANNUAL REPORT
2022
Sustainable banking in all its aspects is an essential pillar of our Positive Banking approach.
That is why this Annual Report was produced in an environmentally friendly way from recycled papers.
INTRODUCTION
BNP Paribas Fortis is a limited liability company (naamloze vennootschap (NV)/société
office address at Warandeberg 3, 1000 Brussels and registered under number BE VAT
0403.199.702 (hereinafter referred to as the ‘bank’ or as ‘BNP Paribas Fortis’).
The BNP Paribas Fortis annual report 2022 contains both the audited consolidated and
non-consolidated financial statements, preceded by the report of the Board of Directors,
the statement of the Board of Directors and a section on corporate governance including
the composition of the Board of Directors. The audited BNP Paribas Fortis consolidated
financial statements 2022, with comparative figures for 2021, prepared in accordance
with International Financial Reporting Standards (IFRS) as adopted by the European
Union, are followed by the audited non-consolidated financial statements 2022 of
BNP Paribas Fortis, prepared on the basis of the rules laid down in the Belgian royal
decree of 23 September 1992 on the annual accounts of credit institutions.
The BNP Paribas Fortis annual report 2022 is available in English, French and Dutch. The
English version is the original one while the other versions are unofficial translations.
Every effort has been made to ensure that the language versions correspond to one
another. If one difference should exist, the English version would take precedence.
It is considered that the information included in the note 7.j ‘Scope of consolidation’,
together with the information included in the report of the Board of Directors and
in the corporate governance statement, complies with the requested information in
article 168, §3 of the Belgian act of 25 April 2014 on the legal status and supervision
of credit institutions.
CONTENTS
Introduction 3
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022 9
Report of the Board of Directors 10
A word from the Chairman and the CEO 10
Economic context 14
Core Businesses 15
Corporate Social Responsibility (CSR) 22
Changes in the scope of consolidation 26
BNP Paribas Fortis credit ratings at 10/02/2023 26
Forward-looking Statements 26
Comments on the evolution of the results 27
Comments on the evolution of the balance sheet 29
Liquidity and solvency 31
Principal risks and uncertainties 31
Statement of the Board of Directors 32
Corporate Governance Statement 33
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2022 45
Profit and loss account for the year ended 31 December 2022 46
Statement of net income and change in assets and liabilities recognised directly in equity 47
Balance sheet at 31 December 2022 48
Cash flow statement for the year ended 31 December 2022 49
Statement of changes in shareholders’ equity between 1 January 2021 and 31 December 2022
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022 51
1 Summary of significant accounting policies applied by BNP Paribas Fortis 52
1.a Accounting standards 52
1.b Segment reporting 53
1.c Consolidation 53
1.d Translation of foreign currency transactions 58
1.e Net interest income, commissions and income from other activities 58
1.f Financial assets and liabilities 59
1.g Property, plant, equipment and intangible assets 71
1.h Leases 73
1.i Assets held for sale and discontinued operations 74
1.j Employee benefits 74
1.k Share-based payments 75
1.l Provisions recorded under liabilities 76
1.m Current and deferred tax 76
1.n Cash flow statement 77
1.o Use of estimates in the preparation of the financial statements 77
5
2 Notes to the profit and loss accountfor the year ended 31 December 2022 79
2.a Net interest income 79
2.b Commission income and expense 80
2.c Net gain on financial instruments at fair value through profit or loss 81
2.d Net gain on financial instruments at fair value through equity 82
2.e Net income from other activities 82
2.f Other operating expenses 82
2.g Cost of risk 83
2.h Net gain on non-current assets 92
2.i Corporate income tax 93
3 Segment information 94
3.a Operating segments 94
3.b Information by operating segment 95
3.c Country-by-country reporting 96
4 Notes to the balance sheet at 31 December 2022 97
4.a Financial assets, financial liabilities and derivatives at fair value through profit or loss 97
4.b Derivatives used for hedging purposes 99
4.c Financial assets at fair value through equity 103
4.d Measurement of the fair value of financial instruments 103
4.e Financial assets at amortised cost 113
4.f Impaired financial assets (Stage 3) 118
4.g Financial liabilities at amortised cost due to credit institutions and customers 119
4.h Debt securities and subordinated debt 119
4.i Current and deferred taxes 120
4.j Accrued income/expense and other assets/liabilities 121
4.k Equity-method investments 122
4.l Property, plant, equipment and intangible assets used in operations, investment property 125
4.m Goodwill 126
4.n Provisions for contingencies and charges 128
4.o Offsetting of financial assets and liabilities 129
4.p Transfers of financial assets 132
5 Commitments given or received 134
5.a Financing commitments given or received 134
5.b Guarantee commitments given by signature 134
5.c Securities commitments 134
5.d Other guarantee commitments 135
6 Salaries and employee benefits 137
6.a Salary and employee benefit expenses 137
6.b Post-employment benefits 137
6.c Other long-term benefits 144
6.d Termination benefits 144
6
7 Additional information 145
7.a Contingent liabilities: legal proceedings and arbitration 145
7.b Business combinations and other changes of the consolidation scope 145
7.c Minority interests 146
7.d Significant restrictions in subsidiaries, associates and joint ventures 148
7.e Structured entities 149
7.f Compensation and benefits awarded to BNP Paribas Fortis’ corporate officers 152
7.g Other related parties 156
7.h Financial instruments by maturity 158
7.i Fair value of financial instruments carried at amortised cost 159
7.j Scope of consolidation 161
7.k Fees paid to the statutory auditors 168
7.l Events after the reporting period 169
RISK MANAGEMENT AND CAPITAL ADEQUACY 171
1 Risk management organisation 173
2 Risk measurement and categories 175
3 Capital adequacy 177
4 Credit and counterparty credit risk 180
5 Market risk 185
6 Sovereign risks 188
7 Operational risk 189
8 Compliance and reputation risk 190
9 Liquidity risk 191
REPORT OF THE ACCREDITED STATUTORY AUDITOR 193
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED) 203
Report of the Board of Directors 204
Comments on the evolution of the balance sheet 204
Comments on the evolution of the income statement 205
Proposed appropriation of the result for the accounting period 206
Information regarding related party transactions 207
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2022 (NON-CONSOLIDATED) 211
OTHER INFORMATION 217
7
8
BNP PARIBAS FORTIS
CONSOLIDATED ANNUAL REPORT 2022
10
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
REPORT OF THE BOARD OF DIRECTORS
A word from the Chairman and the CEO
*
Excluding retreated items (RI), i.e. at constant scope, constant exchange rates and excluding other one-off results.
The invasion of Ukraine and the resulting humanitarian crisis and geopolitical tensions to a large
extent determined the face of 2022. These also had a serious effect on Belgium’s economy and
its citizens, mainly due to the energy crisis and the consequent soaring inflation. Although the
Belgian economy has proved resilient, the general situation has impacted growth, leading to a sharp
slowdown. Meanwhile we note that the transition to sustainable energy, mobility and housing is
becoming more urgent. In these circumstances, our market positioning and range of products and
services nevertheless enabled us to protect, support and advise our customers throughout 2022,
a year in which our bank also celebrated its 200th anniversary. A constant theme in our history
has been that we have always been able to help our customers grow by continually adapting and
staying ahead. With the acquisition of bpost bank in January 2022 we have added a new chapter in
this regard, in which we will build an enhanced offer through the proximity and service capabilities
of bpost bank and the expertise and products of BNP Paribas Fortis.
In 2022 we kept up our momentum and maintained a positive dynamic across all our activities. Net
profit came to 3,161 million euros, a very good result which equates to an almost 19%* increase
on 2021. Revenues were up 17%* at 9,642 million euros, while the rise in operating costs - mainly
attributable to higher banking taxes and inflation - came to 11%*. Our consolidated cost-income ratio
improved to 52.6% from the previous year’s 54.4%.
Commercial & Personal Banking in Belgium achieved an improvement in its pre-tax income thanks
to a rise in volumes, increased revenues due to a return to higher interest rate levels, and higher
commissions in, among other fields, transaction banking. Lending to customers rose by 14.8% (7.5%*)
versus 2021, to 135 billion euros. Deposits, standing at 162 billion euros at year-end, were up 9.2%
(1.2%*). Meanwhile our Corporate Banking business achieved a good performance, especially in
Global Markets.
Profits at Arval rose sharply due to, inter alia, higher prices for second-hand cars. Leasing Solutions
and Personal Finance performed well with increased pre-tax income driven by higher volumes,
although margins were under pressure at Personal Finance. Despite higher operating expenses
driven by inflation, our Turkish subsidiary TEB posted a higher profit on the back of a very strong
increase in lending, higher interest income and very strong results in Global Markets. Meanwhile BGL
in Luxemburg posted a rise in net profit thanks to higher interest income and commission income.
In spite of the volatile economic climate, the bank’s cost of risk fell by 11%* to 14 basis points,
illustrating our clear and proactive long-term risk policies.
Our capital position, with a CET1 ratio of 17.2%, is excellent and our liquidity, with a coverage ratio
(LCR) of 126% as at 31 December 2022, remained very satisfactory. These figures reflect our ability to
finance future growth and help individual customers, families, businesses and non-profit organisations
to carry out their projects.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Accelerated rollout of our 2025 Strategic Plan
The challenges we face – the transition to a low-carbon economy, new mobility solutions, advanced
payment technologies, how and what we want to invest in – cover every facet of our society and lives.
With a stronger commitment to transformation levers and technological excellence, from information
systems to data to artificial intelligence, we want to strengthen the resilience and agility of the
Belgian economy and its citizens to meet these challenges and unlock growth potential. We want to
combine technology and innovation with the enhanced expertise of our employees to improve the
customer experience and our operational efficiency.
The accelerated implementation of the BNP Paribas Fortis Strategic Plan 2025, supported by technol-
ogy and the human expertise in our bank, is designed to ensure a pragmatic and consistent approach
to providing our customers with the means to realise their projects. Although the current environment
is fragile and challenging, we are seeing continuing customer agility and resilience, which our Strategic
Plan seeks to stimulate. The three pillars of our Plan – growth, accessibility and sustainability – are
central to the further development of our banking services.
Growth
We see seamless, efficient payment solutions as key to enabling merchants and companies to achieve
growth. Accordingly, we have brought together Trade Finance, Cash Management, Factoring and Fixed
Income in a single business called Transaction Banking. In Belgium, we currently hold a 40% market
share in Factoring and Easy2Cash, our 100% digital factoring service for SMEs, saw a 130% rise in
contracts in 2022 compared to the year before. Relying on new technology and the international
presence of the BNP Paribas Group, we intend to further strengthen our position in Transaction
Banking for companies.
With already more than 1 million home and other risk insurance contracts we are continuing our
efforts to reposition BNP Paribas Fortis as bancassurer. Following the launch of a dedicated insurance
offering for professionals and companies, we continue to invest in insurance expertise and in 2023
we plan to double the number of certified staff working in non-life insurance professionals. On the
digital insurance front, user-friendliness is our watchword. Currently some 35% of our insurance
policies are purchased online and in most cases loss or damage claims are handled via a single
contact moment on Easy Banking App or Easy Banking Web.
We introduced 30 new insurance packages and launched new Touring Go and Touring Move On travel
assistance insurance policies. We broadened our range of solutions by providing the Homiris home
protection system.
Meanwhile we created an all-in-one digital pack called Hello bank! Pro, designed to help those
wishing to start up a business. One year after its launch, Hello bank! Pro numbers 2,300 self-employed
professional clients and, in collaboration with Xerius, we have to-date helped 330 people to set up
their own independent business. In total the bank helped some 18,000 beginning entrepreneurs on
their way in 2022, and as of this year we are rolling out a new all-in-one approach, with 300 of our
experts assisting clients in the launch and development of their business.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Accessibility
We intend to remain the most accessible bank in Belgium, with our customer advisors as the central
element in customer relations alongside digital systems providing a real-time, personalised and
highly-intuitive experience.
In early 2024 we will be rolling out new service models, combining the convenience of a close-knit
network of local sales points of bpost with the skills and expertise of BNP Paribas Fortis staff.
Customers will be able to choose basic banking services provided through Nickel (via now 415 sales
partners, expected to rise to 1,400 within five years); to go fully digital with Hello bank!; or have easy
access to daily banking services at 657 bpost branches. BNP Paribas Fortis branches will be oriented
towards expert advice on appointment, while 16 Client Houses will meet the needs of Private Banking
and Entrepreneur clients.
In this respect, while preparing to welcome on board some 600,000 bpost bank customers, our
acquisition of bpost bank represents an important expansion of our ability to provide first-class
assistance and accessibility to all types of customers.
In 2022 we received 4.7 million branch visits (6.7 million incl. bpost bank), alongside 1.2 billion
contacts via App and Web (incl. bpost bank customers), plus 3.5 million Easy Banking Centre and
Client Service Centre calls. One in two sales were finalised entirely via digital channels. Our Easy
Banking App is becoming increasingly popular, with some 2.1 million customers – 10% more than at
end-2021 – now actively using and loving it. Customers are showing particular appreciation for the
Budget Management Module that we recently added to the App, which provides a precise overview of
outgoings, broken down into a dozen categories. The module has now over 500,000 users per month
and consulting firm Sia Partners named it as ‘Best in class on the market’ in 2022.
Going forward, ‘Easy Cashback’, our new in-app reward programme service to be launched this year
in partnership with Paylead, will provide consenting clients with automatic cashback rewards and
a frictionless experience when making in-store and online purchases with their BNP Paribas Fortis
payment card at partnering merchants across Belgium.
Sustainability
During 2022 we continued to provide our customers with all manner of financing solutions in the
fields of sustainable construction and renovation, sustainable mobility, socially- and environmentally-
responsible investment products and advice to companies on transition measures towards more
sustainable practices.
It is our aim to substantially increase the percentage of loans we grant for projects that meet ESG
criteria. We manage a portfolio of ESG-loans to companies totalling 15.1 billion euros, of which
2.9 billion euros for renewable energy-related projects. Moreover, we are seeing increased take-up
of our Sustainable Impact Loans, whereby favourable credit terms are applied when sustainability-
related targets are met. In addition, in our Private Equity business, which has a target of one billion
euros worth of investment by 2025, we also give preference where possible to ESG-oriented funds
and companies.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
When investing in sustainability-oriented projects, our corporate clients are able to draw on the
expertise and support of our Sustainable Business Competence Centre. In 2022 the SBCC provided
assistance in formulating sustainable financing applications worth a total of 470 million euros.
BNP Paribas Fortis is the Belgian market leader in the provision of sustainable investments for
private individuals. At end-2022 we had 38.3 billion euros worth of ‘Towards Sustainability’ invest-
ment products under management, with 79% of our clients with a securities or retirement savings
account investing in Towards Sustainability products. Moreover, part of the income from this is
channelled into good causes via our ‘Impact Together’ fund. In this way, since 2015 some 360,000
customers of the bank have made a 15 million euro contribution to 150 projects supported by the
King Baudouin Foundation.
In the field of sustainable mobility, we assiduously promote the use of electrified vehicles. Fully 19% of
the fleet managed by our Leasing subsidiary Arval now consists of electrified vehicles. The leasing of
e-bikes saw a 30% rise. Arval has set a target of having 50% of its fleet composed of energy-efficient
cars by 2025.
Through our acquisition of e-mobility software specialist Optimile, we are also able to offer Mobility
as a Service (MaaS) and Charging as a Service (Caas). Currently there are some 16,000 connected
charging points in Belgium with Optimile’s software, +168% vs. 2021, while the Optimile pass gives
access to more than 300,000 charging points all over Europe.
We would like to thank all our colleagues for the great dedication and commitment they have shown
in helping to achieve these excellent results. We’re also glad to say that we have begun the year
2023 with the successful rollout of our new commercial organisation, which will enable us to respond
even more rapidly in the services we provide to our customers.
We are a solid bank that can count on the largest franchise in Belgium to serve the broadest and most
diverse customer base. Combined with the power of tech and the expertise of our people, we have
all building blocks in place to accelerate the successful rollout of our 2025 Strategic Plan, focusing
on growth, accessibility, and sustainability.
We hired over 500 Positive Bankers in 2022, and we intend to employ a further 1,500 new staff by
2025 in order to strengthen our teams. Realising our ambition to keep developing and providing
best-in-class banking services and the technology needed to underpin them is going to depend
crucially on the skills and expertise of our people.
We intend to do everything to be the partner of choice for all our customers going forward. This
remains our exclusive focus, and we would like to thank all of them for the trust they continue to place
in BNP Paribas Fortis. More than ever BNP Paribas Fortis is the engine of the sustainable economy.
Max Jadot
Chairman of the Board of Directors
Michael Anseeuw
Chief Executive Officer
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Economic context
to an excellent first six months, and due also to the final lifting
of measures designed to combat the coronavirus pandemic.
The second half of the year on the other hand was affected
by the consequences of the war in Ukraine, which impacted
the global economy, especially that of Europe given its close
geographical proximity to the conflict and its strong depend-
ency on Russian gas. The sharp rise in the price of energy came
on top of the other price rises already making themselves felt
since mid-2021 in line with the clear rebound in economies all
over the world. As a result, Belgian inflation had risen to over
13% by October before subsequently showing a slight decline.
It was not long before these sky-rocketing price rises made a
serious dent in the confidence of Belgium’s economic actors,
notwithstanding the automatic wage-indexing policy in
force in this country. The soaring energy bills rapidly led to
expectations of a sharp rise in costs in the months to come,
dampening the outlook for businesses. It therefore came as
no surprise that investment fell throughout the year as most
businesses found themselves facing considerable challenges
to maintain competitiveness and profitability. Many firms are
now saying that they will focus more on automation and digital
tools in the long term. The geopolitical situation proved to be
so fraught throughout the year that confidence among Belgian
households fell even lower than in March 2020, when the
first lockdown due to the epidemic was imposed. Confidence
did however rise again towards the end of the year, when it
became clear that energy prices and inflation had probably
already passed their peak.
The employment market continued to benefit from the strong
economic growth recorded in 2021 and plenty of jobs continued
to be created during 2022. The unemployment rate now stands
at 5.5%, although there remains a considerable mismatch
between the jobs on offer and those seeking employment, as
is the case in a number of countries where, in many sectors,
the pandemic appears to have led people to alter their view of
the world of work. The list of sectors suffering from employee
shortages never stopped lengthening from month to month,
giving rise to strike action and wage claims in several key
sectors of the economy such as transport and healthcare.
Most European countries were hit by the same inflationary
shock in 2022, so that growth weakened everywhere during
the second half of the year, with the consequence that a reces
-
sion during the next few months can no longer be ruled out.
Meanwhile the USA managed to achieve a relatively good
performance, thanks largely to its energy independence.
Moreover, the US moved quickly to alleviate the shortage of
Russian gas in Europe by providing huge volumes of liquefied
natural gas to European countries at extremely high prices,
which garnered billions of dollars over the year.
Unsurprisingly, the unprecedented surge in prices all over
the world led to soaring interest rates. In the United States,
the Federal Reserve (Central Bank) raised its main policy
rate seven times during the year, from 0.25% to 4.5%, while
in Europe, the European Central Bank (ECB) imposed four
consecutive hikes between July and December, taking the
refinancing rate for banks borrowing funds from the ECB
from 0% to 2.5%. At the same time, the ECB decided to reduce
the volume of liquidity pumped into the banking system
during the pandemic crisis, which resulted in the balance
sheets of the main monetary financial institutions starting to
slim down again.
The inflationary shock was so sudden that the bond markets
were seriously affected by it throughout the year. Within the
space of a few months, 10-year US government bond yields
rose from 1.5% to 3.3%, while in Europe 10-year yields climbed
from 0.3% at the start of 2022 to 3.2% by end-December. In
Belgium, 10-year government bond yields rose from 0.2%
to 3.1% over the year. In the wake of these developments,
mortgage loan interest rates rose substantially, sometimes
bringing real estate markets to a full stop in those countries
where mortgage lending is subject to variable interest rates.
Belgium has avoided this scenario because the vast majority
of mortgages are granted at fixed rates, which explains the
strong resilience of this market in 2022, following an already
extremely dynamic year 2021 when very low interest rates,
coupled with a desire for more living space, prompted many
Belgians to invest in real estate throughout the pandemic
period. The rise in real estate prices slowed slightly in 2022,
but is still running at 5% per annum, having reached the very
substantial rate of increase of 8% for 2021.
The new rise in long-term interest rates is a source of concern
as regards to the management of public finances, since the
pandemic had already brought about a worsening of the
budget deficit and government debt situations in many coun-
tries, including Belgium , which saw its budget deficit climb
to 9% in 2021 and remain above 5% in 2022. Going forward,
it will be important to see what impact a recession might
have, especially as central banks have decided to reduce the
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
size of their balance sheets, to better control inflation. This
implies that governments which need to raise funds in 2023
will no longer be able to count as a matter of course on their
central banks to purchase their bonds, but will once again
need to convince private investors that they are managing
their economies in a sound manner.
Meanwhile the Belgian banking sector continued during
2022 to fulfil its role of financing economic activity, with a
substantial rise in the volume of loans granted during the
year. During the first nine months, total outstanding lending
to private individuals and corporate clients reached 250 and
150 billion euros worth of credit respectively. This represents
an increase of some 8% in lending to households and 10% in
loans to businesses in a single year.
Core Businesses
employed a total of 10,400 FTEs in Belgium.
Retail Belgium
BNP Paribas Fortis Retail banking activities comprise banking
services to a range of client types, including individual custom-
ers, self-employed people and those in the liberal professions,
small and medium-sized companies, local businesses, cor-
porate clients and non-profit organisations. Retail Belgium
provides its services via two networks, which operated in
2022 under a segmented business approach: Retail & Private
Banking Belgium and Corporate Banking Belgium.
Retail & Private Banking Belgium
BNP Paribas Fortis is the No. 1 bank for retail customers in
Belgium and has a strong position in the professional clients
and small-business sectors, with 3.35 million customers.
BNP Paribas Fortis is also the leading Private Bank in Belgium.
Fintro has more than 351,000 customers.
Retail & Private Banking serves individual customers, entre-
preneurs, and small and medium-sized businesses through its
various networks, as part of a hybrid banking strategy in which
customers can choose to do their banking either in-branch or
using digital channels:
The physical network comprises 342 branches (of which
153 are independent) and 16 Banque des Entrepreneurs
(small business banking) centres. In addition, there
are 206 Fintro branches operated under franchise, and
657 bpost bank branches (100% owned) operated in part-
nership with Bpost. The 342 BNP Paribas Fortis branches
are organised into 32 branch groups divided between
nine regions.
RPB’s digital platform provides online banking (Easy
Banking) and mobile banking (2.7 million total aggregate
active users, including Fintro), and manages a network of
878 ATMs (including Fintro ATMs).
BNP Paribas Fortis owns a stake in Batopin, a joint venture
with KBC, ING and Belfius, with each partner owning 25%.
Batopin is installing bank-neutral CASH points across
Belgium in locations where customer footfall is expected
to be high. Batopin currently has 483 ATMs in operation,
and the number is rising every week.
The bank is also available for customers thanks to the
Easy Banking Centre which handles up to 70,000 customer
calls per week.
The offer is completed by the digital banking service Hello
bank! which has more than 518,000 customers.
Private Banking services are aimed at individual customers
with invested assets of more than 250,000 euros. Within
Private Banking, the Wealth Management Department caters
to customers with invested assets of more than 5 million
euros. Private Banking customers are served via 30 Private
Banking centres, one Private Banking Centre by James (Private
Banking centre providing remote services through digital chan-
nels) and two Wealth Management centres.
BNP Paribas Fortis continued to develop its digital services and
improve the customer experience in 2022, particularly through
the Easy Banking remote banking app. New features and
improved performance led to the Easy Banking App being rated
4.6 out of 5 for the iOS version and 4.5 for Android. Automation
and AI are now fully deployed in the Customer Service Centre,
allowing the bank to handle the growing volume of queries
from customers and staff members as efficiently as possible.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
From 1 January 2023, BNP Paribas Fortis has a new com-
mercial organisation based around three customer segments:
Retail Banking for personal and self-employed customers,
served by a multidisciplinary team;
Affluent & Private Banking for personal and self-employed
customers with more than 85,000 euros of assets, who
each have a dedicated relationship manager;
Corporate Banking for business clients with a dedicated
relationship manager. The Enterprises business line serves
small and medium-sized businesses while Corporate
Coverage handles large corporations, public-sector entities
and institutional clients.
In 2022, BNP Paribas Fortis acquired Bpost’s 50% stake in bpost
bank, taking its total interest to 100%. At the same time, Bpost and
BNP Paribas Fortis signed an exclusive, seven-year commercial
agreement under which Bpost will continue to offer BNP Paribas
Fortis services and products in its network of post offices.
The bank is more determined than ever to be
a trusted financial partner for customers
In 2022, we were more determined than ever to stand by
our customers against a background that saw the country
gradually emerge from the acute COVID-19 phase but having
to face a nascent energy crisis due to the war in Ukraine. We
therefore stepped up our communication campaigns, towards
both our private individual customers and our self-employed
professional clients, with a view to providing them with the
most personalised and relevant service possible.
Given the economic situation, the energy crisis and the
changing regulations, we stepped up our Financial Wellbeing
outreach to private individual customers, with four distinct
areas of action: creating and constantly revising the content
of the My Life pages on our Easy Banking Web (EBW); providing
a range of sales materials to our sales force on the themes of
My Mobility, My Budget, My Future and My Housing; producing
a newsletter sent out to individual customers and also setting
up targeted leads in order to create opportunities for contact
with customers experiencing financial difficulties or in need of
assistance in managing their budget – with a particular focus
on solutions for financing home renovation/insulation works
designed to reduce their energy bills.
We also ran information campaigns on the launch of the new
Bancontact Visa debit card and the rollout of a new network
of CASH point ATMs.
Towards more sustainable mobility
As part of our policy of actively promoting the transition to a
more sustainable world, we focused – among other things – on
sustainable mobility, running a high-profile internal commu-
nication drive and a large-scale external publicity campaign,
involving frequent TV and radio spots, use of digital channels,
plus posters at our branches and direct marketing. In addi-
tion, we created a web-seminar – aimed at our self-employed
professional clients – looking at changes in the tax treatment
of work-related travel, and also made those clients frequent
special offers, in partnership with our Arval subsidiary, for ‘top
deals’ on electric vehicles. Determined to fulfil our role as a
trusted partner to our customers, on mobility issues as well as
other questions, the bank published in December the results
of a large-scale survey among 2,000 Belgians, enquiring into
how their choice of transport options, including the transition
towards zero-emission vehicles, is evolving. Results revealed
that close to half of all those Belgians surveyed wished to
switch to an electric car by 2029, provided that a number of
improvements are made in terms of the range of vehicles on
offer, lower prices for bottom-of-the-range vehicles, wider
availability of recharging infrastructure, and greater battery-
related driving autonomy. The survey results also underlined
that consumers expect the banks to play a proactive part in
assisting the transition.
Banking and insurance services: our repositioning
drive continues
In 2022 we also continued our drive to reposition BNP Paribas
Fortis as the preferred partner for both banking and insur-
ance solutions, for both private individual customers and
self-employed professionals. We ran advertising campaigns
on TV, radio and the digital media and also engaged in direct
communication with our customers, placing emphasis on the
broad range of solutions available, further boosted by our
partnership with alarm system and remote monitoring expert
Homiris, whose alarm systems enable customers to obtain a
discount on their home insurance policy, also underlining the
greater ease of use thanks to, inter alia, new digital functional-
ity in our Easy Banking App (EBA) that enables customers
for example to subscribe to Touring services, submit loss or
damage claims, or sign up to insurance policies, all on line.
Meanwhile, in November, the bank, together with insurance
group AG, signed an in-principle agreement with the non-profit
organisation Touring Club Royal de Belgique for the transfer
of all operational and commercial activities of the Touring
group to a limited liability company called Touring SA and
the acquisition of the shares of Touring SA by AG (75%) and
BNP Paribas Fortis (25%).
17
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
In addition, we launched an initial large-scale campaign
designed to promote insurance solutions provided by AG for
self-employed professionals that are now integrated into our
portfolio, enabling clients to sign up directly with the bank for
those policies and services. For this purpose, we developed an
online tool to help customers choose the right occupational
insurance solution. We also expanded our portfolio of solutions
for 2nd Pillar pensions, incorporating ‘Tak 23’-type products
into our offer range.
More targeted investment assistance
We also continued to build out and promote our MyExperts
expertise platform, which enables Private Banking, Wealth
Management and Priority Exclusive clients to access articles
and web-seminars designed to help them take the right invest-
ment decisions. We have now broadened the range of subjects
covered to include information precisely geared to the needs of
entrepreneurs and members of the liberal professions.
At the same time, we decided to close down the Lucy online
investment platform.
In line with our policy of promoting sustainable and socially-
responsible investments, we launched during the year a new
philanthropic fund entitled Impact Together, embedded within
the King Baudouin Foundation, which is financed solely by
revenue from the sustainable investment solutions offered by
the bank. This replaces the Venture Philanthropy Fund, whose
profile was not sufficiently high. The money thus collected is
intended to provide long-term backing to local organisations,
specifically supporting one-off projects, plus also intervening
to help mitigate natural disasters or alleviate crisis situations.
Following the adoption of new EU legislation on sustainable
investment, the bank has now adjusted its approach so as to
systematically gauge customers’ interest in opting for sustain-
able investment solutions. Inter alia, new terminology has
been adopted in order to distinguish ‘sustainable’ investments
from ‘socially-responsible’ investments.
Continuous development of our digital solutions
for managing day-to-day tasks
In order to make life easier for our customers, we also
continued during 2022 to build out our digital tools, offering
customers greater autonomy in managing their day-to-day
needs, including adjusting transaction limits on cards and
launching Personal Finance Management, a tool that helps
customers to manage their budget. In addition, we ran an
advertising campaign on TV, digital media and the social net-
works, designed to promote the full range of digital solutions
available on our EBA. We also conducted direct campaigns
aimed specifically at our entrepreneur clients, highlighting
the Easy Banking Business and Easy Banking Business mobile
platforms, which provide advanced functionality for helping
to run a business. At the same time, we continued to com-
municate regularly on the bank’s accessibility via our digital
Click to call and Easy Banking App, plus video calls.
Last but not least, we continued during the year to help
educate our customers in the safe use of digital tools and
processes, stepping up our fraud prevention and phishing
avoidance campaigns with new videos posted on our Easy
Banking Website.
Promoting digital payment solutions
Following the entry into force on 1 July 2022 of a new law
requiring retailers and merchants to offer a digital payments
option to their customers, we took a number of initiatives to
highlight our digital payment acceptance solutions for our
clients in these sectors. In close partnership with our subsidi-
ary Axepta and payment platform Payconiq, we stepped up our
appearances at trade fairs and salons, and conducted several
direct communication campaigns to enable our clients to find
the solution that best matches their needs.
We also worked during the year to promote the Loyalty solu-
tions provided by our partner Joyn. Complementing payment
solutions, these Loyalty solutions enable digitalisation of
customer relations and help to boost business by facilitating
merchants’ promotional efforts vis-à-vis their customers. In
support of this aim, we ran a wide-ranging drive to activate
the Joyn solutions at our own premises in order to increase
familiarity with and foster ambassadorship of this type of
solution among our staff.
Stepping up outreach to business starters
Determined to play to the full our role in helping to develop
the local economy, during the year we stepped up our efforts
to reach out to business starters, a process begun in 2021,
via both the BNP Paribas Fortis and Hello bank! brands. We
ran fresh advertising campaigns on radio and digital media to
promote our solutions and highlight our expertise in support-
ing future entrepreneurs. At the same time, we developed a
web-seminar aimed at business starters, focusing on the circu-
lar economy, and created a number of video clips highlighting
various aspects of our expertise for young entrepreneurs, in
partnership with the Goed Bezig! (Good job!) broadcast on the
Dutch-speaking TV business channel KanaalZ.
18
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Our expertise widely recognised again
On 13 July, BNP Paribas Fortis was named ‘Best Bank in
Belgium’ and ‘Best Investment Bank in Belgium’ at the 2022
Awards for Excellence ceremony hosted by the celebrated
international finance magazine Euromoney. These awards are
designed to honour banks that show leadership, innovation
and dynamism in the markets where they operate.
On 4 November, leading financial magazine The Banker – part
of the Financial Times group – named BNP Paribas Fortis ‘Best
Private Bank in Belgium’.
On 29 November, publisher Global Finance conferred its Best
SME Bank Award 2023 on BNP Paribas Fortis for the Belgian
market, in recognition of our commitment to supporting small
and medium-sized businesses in Belgium.
Corporate Banking
With its well-developed, diversified and integrated business
and service model, the BNP Paribas Fortis Corporate Banking
division is well equipped to serve a wide range of clients,
including small and medium-sized companies, Belgian and
other European corporates, financial institutions, institutional
investors, public entities and local authorities. Corporate
Banking (CB) serves an extensive and diversified clientele
among large and medium-sized companies and is the market
leader in these two categories. CB is also a strong challenger
in the public sector category.
Our Relationship Managers are central to the Corporate
Banking relationship model. CB deploys a wide variety of
experts who are able to provide all kinds of bespoke banking
solutions and services to their dedicated portfolios of clients.
Within the Corporate Banking division, the Commercial
Banking team serves SMEs and MidCaps through a network
of 14 Business Centres across the country. Relationships
with Large Corporates, Financial Institutions and Public
Institutions are handled by dedicated central teams based at
our Headquarters in Brussels.
Providing a wide range of both traditional and bespoke special-
ised solutions and services and drawing on the international
network of the BNP Paribas Group across 65 countries, CB
continues to meet the precise financing, transaction banking,
investment banking and insurance needs of its clients in
Belgium and abroad.
A financial partner helping corporates navigate
through uncertainty
In 2022, Corporate Banking continued to play a major role in
providing support to the Belgian economy. Our Transaction
Banking unit was able to provide notable assistance to
clients seeking to navigate through a disrupted supply chain
environment brought about by geopolitical events while our
Global Markets specialists helped clients to hedge their risks,
with regard to interest rates, currency volatility or inflation.
Meanwhile our Private Equity teams continued throughout
the year to invest in Belgian companies in line with our
‘2025 Strategy’.
An organisation adapting in order to sustain
continuous growth
During the year, the Corporate Banking division pursued its roadmap
for digital transformation and process efficiency improvement.
CB also further enhanced its servicing model by accelerating the
rollout of digital capabilities and remote contact channels.
Our partnerships with EMAsphere and Climact are good exam-
ples of how CB is bringing continuous added value to its clients
by broadening the scope of the solutions offered to corporate
clients beyond the confines of traditional banking services.
2022 was also the year of preparation for the bank’s new
commercial organisation, whereby enterprises benefiting
from a dedicated relationship manager will be served by
Corporate Banking as from 2023. This adapted model will
help us to strengthen our relationships with clients as part
of our strategy towards 2025.
A trusted partner to assist corporates towards
more sustainable business models
With our Sustainable Business Competence Centre, Corporate
Banking is firmly positioning itself as the Sustainable Corporate
Bank. During the year the division stepped up its efforts to help
clients make the transition to more sustainable practices and
business models and to invest in transformative projects needed
to address the huge challenges of harmful climate change and
shrinking biodiversity. We devoted ever-greater attention to the
fields of energy transition, decarbonisation, biochemistry, and
the circular and regenerative economy. CB also stepped up its
expertise regarding the regulatory framework of the EU Green
Deal and Environmental, Social and Corporate Governance (ESG)
business criteria. Our partnership with Climact is an important
development here, enabling us to provide our corporate clients
with a means of measuring the carbon footprint of their activities.
19
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
In 2022, BNP Paribas Fortis carried off for the third year in
a row the title of Belgium’s Best Investment Bank, conferred
by Euromoney magazine as part of its annual Awards for
Excellence. In addition, Corporate Banking received several
excellence awards from Coalition Greenwich: Share Leader and
Quality Leader for Large Corporate Banking and Large Corporate
Cash Management (2021) and for Trade Finance (2022).
Arval
Arval is a BNP Paribas Fortis subsidiary specialised in full-
service vehicle leasing and new sustainable mobility solutions.
Arval provides its corporate clients – ranging from large inter-
national corporates to small and medium-sized enterprises
– its partners, their employees, plus also individual customers,
with flexible solutions to help make their journeys seamless
and sustainable.
At end-2022, Arval had permanent establishments in
30 countries, employing more than 8,000 staff, leasing close
to 1.6 million vehicles (an 8.3%
*
increase versus end-2021),
including 296,676 electrified vehicles. The company mainly
does business in Europe, where it holds a leading position.
It has also entered into a number of strategic partnerships
through the Element-Arval Global Alliance, the world leader
in this sector with more than three million leased vehicles
in 53 countries. In 2022, Arval made two new acquisitions:
BCR Fleet Management in Romania (3,800 vehicles); and
Terberg Business Lease in the Netherlands and Belgium
(38,000 vehicles).
In 2022, Arval continued to provide its customers with innova-
tive products and services such as Arval Connect, a powerful
solution to help customers control their costs and acceler-
ate their energy transition, and Arval Adaptiv, an innovative
flexible car subscription offering for private customers. In
addition, during the year Arval extended its first international
biodiversity project ‘1 Electrified Vehicle = 1 Tree’ – which was
launched in eight Arval countries in 2021 – to all remaining
countries where the company operates. As of end-December
2022, the planting of 207,995 trees had been financed
in this way.
*
Growth rate at end-2022 vs. end-2021. Excluding the acquisitions of TBLG and of the operating lease activities of BCR in Romania, organic growth was +5.5%
at end-2022 vs. end-2021.
BNP Paribas Leasing Solutions
BNP Paribas Leasing Solutions helps both companies and
members of the professions to develop their businesses by
providing them with leasing and financing solutions, together
with a range of services designed to meet their needs.
The expert teams of BNP Paribas Leasing Solutions support
and assist:
Equipment manufacturers and business software pub-
lishers, providing them with exclusive, comprehensive
solutions designed to support and boost the sales achieved
by their distribution networks and/or dealerships;
Distributors, dealers and integrators of business equip-
ment, providing them with sales support solutions plus a
wide range of financial products and services designed to
meet the needs of their customers;
Businesses, local authorities, members of the professions
and craftsmen and -women, providing solutions for financ-
ing their investments in equipment.
BNP Paribas Leasing Solutions provides assistance to players in
the real economy by financing purchases of all major types of
business and professional equipment, including for the agricul-
tural, medical, logistics and IT sectors, and also helps clients
make the transition to more environmentally-friendly prac-
tices by financing both the purchase of equipment designed
to make a positive impact and circular economy enterprise.
At end-2022, BNP Paribas Leasing Solutions was named
European Lessor of the Year for a record seventh time by
Leasing Life, the leading magazine reporting on the Leasing
profession in Europe, also winning the award for Best Energy
Transition Financing Program of the Year conferred by the
same publication.
BGL BNP Paribas
BNP Paribas in Luxembourg offers a comprehensive range of
financial products and services tailored to the needs of all its
customers in Luxembourg and is the largest employer in the
Luxembourg financial sector.
20
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
BGL BNP Paribas activities
The BGL BNP Paribas Retail Banking business line provides
private individuals, self-employed professionals and entrepre-
neurs with products and services ranging from daily banking
needs to financing, plus also savings and bancassurance
solutions and investment products. It has one of the widest
ranges of retail banking products in Luxembourg, including
private leasing.
BGL BNP Paribas Banque Privée provides clients resident in
Luxembourg or the Greater Region with comprehensive and
customised financial and wealth management solutions.
The Wealth Management business line targets an interna-
tional client base, in particular business owners and families,
assisting them with their specific needs through tailored
asset and financial management solutions, in addition to a
suite of high-quality services: investment advice; discretion-
ary management; wealth planning and organisation; asset
diversification and financing.
Through the Corporate Banking business line, BGL BNP Paribas
is Luxembourg’s number one banking partner for large firms,
the public sector and institutions, social organisations, real
estate professionals and startups. The product range is
structured around various specific areas, including Financing
(classic, project, transfers & acquisitions, real estate), Trade
(letters of credit, documentary credit), Cash Management
(cash pooling, multibank cash management tools, cards
programs, etc), Rate (exchange or interest) risk coverage and
Escrow Accounts. As part of the BNP Paribas Group, BGL BNP
Paribas also provides its corporate clients with access to the
full spectrum of the Group’s specialist business expertise
and services.
Corporate and Institutional Banking provides corporate and
institutional clients with products and services related to the
capital and financing markets in Luxembourg.
BGL BNP Paribas Development was created in 2021 to support
Luxembourg businesses by acquiring minority stakes in com-
panies. Through direct investment in unlisted Luxembourg
commercial, industrial and technology firms, the bank aims
to play a supportive role in their organic and external growth
plans and assist them with business transfers.
Türk Ekonomi Bankası A.Ş. (TEB)
BNP Paribas Fortis operates in Turkey through TEB. On
30 September 2022, TEB, which provides the full range of
BNP Paribas Group Retail products and services in Turkey,
stood 10
th
in the country’s deposit bank rankings in terms of
market share of deposits and loans.
In 2022, TEB continued to diversify and enrich its products,
services and campaigns, in order to be able to offer customer-
oriented solutions. We also expanded our range of services and
products through our digital channels. TEB applies a human-
centric design and customer journey methodology and runs
advocacy programmes designed to obtain and make good
use of customer insights. A key factor in this respect is the
meticulous monitoring of customer habits and customer acqui-
sition channels. In addition to transactional and relational Net
Promotor Score (NPS) studies, we continue to gather insights
and improve customer experience through ad-hoc research
and communication with our customers through all channels,
with 200,000 registered communication exchanges in 2022. In
the benchmark NPS research conducted independently every
year, TEB was ranked in the top three in its Turkish retail
banking peer group for the fifth year in a row.
At the close of 2022, TEB Digital Channels were serving just
under 2.65 million active online customers, with 87% of
personal loans and 66% of time deposit accounts opened via
the CEPTETEB Digital Banking Platform. CEPTETEB continued
to develop its digital channel experience during the year,
expanding the customer base and launching new features on
the CEPTETEB Mobile Application and the TEB FX platform.
Incorporating the latest technology and innovations, CEPTETEB
also features chatbot platforms named TELEPATİ and Fon
Danışmanım (My Fund Advisor), an automated, algorithm-
driven portfolio builder for funds.
TEB focused special attention on digital banking for elderly
people. TEB has been very active in becoming the first choice
for retired persons and by the end of 2022 TEB had increased
its retiree customer base by 147% compared to 2021. TEB
encourages increasing digital activity among the retired by
making system developments to simplify the processes and
deliver further ease of use for all retired customers. Mobile app
activity among retired CEPTETEB users increased during the
year, with 66% of this customer segment now using the app.
21
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
At the end of 2021 TEB launched a Currency Protected TRY Time
Deposit Account, a YUVAM
*
Account and a Foreign Currency/
Gold Conversion TRY Time Deposit Account, becoming one of
the first banks in Turkey to offer these products via a mobile
application. TEB contacted potential customers with a view
to promoting these innovative accounts through Relationship
Managers, Digital Relationship Managers, SMS, email, push
notifications, banners and digital channels. By end-2022 our
market share in Currency Protected TRY Time Deposit Accounts
had reached 2.57%, up from 1.39% in December 2021.
Retail customers with foreign exchange and gold assets were
offered ‘Marifetli’ accounts, a daily term account that enables
the capital and interest to be reinvested each day. The account
offers attractive ‘welcome’ interest rates and the option of
investing in a mutual fund with additional interest rate. In
2022, TEB welcomed some 57,000 new Marifetli customers,
plus also more than 50,000 new mutual fund customers.
Throughout 2022, TEB continued to focus on mass affluent
customers. Asset thresholds were increased to minimum
300,000 TRY, digitalisation was expanded, and the invest-
ment product offer widened, resulting in greater customer
loyalty and a 28% increase in customer numbers year-on-year.
Privileges offered to this client segment via CEPTETEB Digital
Banking had a positive impact on digital activity, with 80%
of affluent customers now actively using the mobile app.
TEB also bolstered its aim of becoming the main bank for
Turkish lawyers, enhancing its ‘Lawyer Package’ by adding
pension contributions to lawyers’ cashflow, and making agree-
ments with 52 law societies to reach legal professionals all
over Turkey.
Private Banking
TEB Private Banking revived the TEB Private Banking Angel
Investment Platform designed to offer clients advisory services
that include alternative investment products and innovative
ideas. The platform brings entrepreneurs and potential inves-
tors together at face-to-face customer events, helping to raise
mutual awareness and unlock business potential. In 2022, TEB
Private Banking won prestigious global awards, including a
Euromoney first prize in Capital Markets Investment Advisory,
the title of ‘Best Private Bank in Turkey’ for the fourth time
at the World Finance Banking Awards, the ‘Most Innovative
Private Bank’ award at the International Finance Awards (for
*
YUVAM: a Turkish lira account that encourages non-resident persons and their companies abroad to bring their savings to Turkey by offering a Central Bank
guarantee of protection against exchange rate volatility.
the fifth time) and the ‘Best Digital Innovator of the Year’
award at the PWM Wealth Tech Awards.
SME Banking
TEB has always focused on SMEs, because of the important
role they play in Turkey’s economic growth. Aided by the
worldwide presence and expertise of the BNP Paribas Group,
TEB offers exclusive tailor-made financial and non-financial
products and services to SMEs by acting as a consultant
bank rather than following the classical banking approach.
We offer a wide range of customised products to SMEs, such
as foreign trade packages, project financing and derivative
products. A digital service model has been established with
the aim of enabling SME clients to perform daily banking,
cash management and investment transactions through
CEPTETEB İŞTE without having to visit a branch, while also
offering customised advice by dedicated and well-trained
relationship managers. In line with the accelerated digital
transformation that is shaping the banking sector and chang
-
ing clients’ demands and expectations, SME Banking focuses
on digitalisation, innovation, creativity and the optimisation
of business processes, working with fintechs and startups
both on digital transformation projects which require high
software competency and on the development of new financial
products and services.
In addition to the SME and Agricultural Banking business lines,
TEB provides financial solutions to startups, and offers specific
banking approaches to meet the needs of local government
and the gold trade. Under its Municipality Banking approach,
TEB SME Banking offers financial solutions to local govern-
ment, including credit lines for projects in such areas as solar
energy investment, environmentally-friendly transportation
systems and solid waste treatment facilities. The specific Gold
Banking service enables customers who deal with gold produc
-
tion or gold trading, including jewelry retailers, wholesalers
and exporters, to obtain Gold Loans to finance their capital
needs, while the Gold Deposit Account is designed to enable
customers who choose to invest their savings in gold to buy
and sell this precious metal by the gramme.
22
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
TEB Start-up Banking has established ‘Startup Houses’ in seven
large cities to support technology-based startups, the most
comprehensive and widespread entrepreneurship programme
in Turkey. TEB SME Banking also supports projects that have a
positive impact on the environment and/or society. Within the
scope of sustainable finance, TEB SME Banking offers financ-
ing solutions to SMEs and municipalities for the financing of
green projects such as renewable energy, energy efficiency, the
circular economy, waste management and renovation projects
designed to reduce carbon emissions.
Corporate Banking
TEB Corporate Banking provides services including interna-
tional trade finance, structured finance, cash management,
credit services and hedging of currency, interest-rate and
commodity risk. TEB provides its services through foreign
trade centres staffed with experienced specialists and also
through 11 corporate branches, five of which are located in
Istanbul, specifically designed to meet the requirements of
multinational companies.
In a fast-transforming world with new technological develop-
ments, where customer expectations and requirements are
changing at a rapid pace, TEB Corporate Banking focused hard
during 2022 on maintaining product quality and the overall
customer experience at the highest level by anticipating and
responding to those changing customer expectations and
needs. During the year, we succeeded in maximising customer
satisfaction by meeting our customers’ diverse needs through
our sales channels.
Corporate Social Responsibility (CSR)
As a trusted partner to its customers, the bank works closely
with them to help create a fairer, more sustainable world.
Our Corporate Social Responsibility
(CSR) actions are based around
four themes:
Transition to carbon neutrality
BNP Paribas has set itself the aim of financing a carbon-
neutral economy by 2050. In 2021, the group signed up to
the Net-Zero Banking Alliance, thus committing to aligning
the greenhouse gas (GHG) emissions arising both from the
activities it finances and also from its own investment portfolio
with the Paris Agreement. The group has published an initial
analysis and climate alignment report, which sets out its
targets for reducing the intensity of GHG emissions arising
from its lending activities in three of the highest-emitting
sectors: electricity generation, oil & gas production and the
automobile industry. This constitutes a first step; we will
address seven other sectors by 2024.
Natural capital and biodiversity
The depletion of biodiversity and natural capital has environ-
mental, economic and human repercussions. Determined to
help protect worldwide biodiversity, BNP Paribas continues
to adopt targeted policies designed to combat such problems
as deforestation. The group is a member of various coali-
tions, including the Taskforce for Nature-related Financial
Disclosures, which seeks to ensure global consistency in
companies’ reporting on their nature-related risks and
opportunities. BNP Paribas also finances actions that help
protect biodiversity, currently aiming to dedicate 4 billion
euros worth of financing by 2025 to businesses pursuing
biodiversity targets.
In Belgium, the bank’s continuing support for Natagora
and Natuurpunt once again this year enabled these two
environmental protection non-profits to expand their nature
reserves and thus help to protect biodiversity in this country.
In addition, some 10,000 trees were planted by bank staff on
16 December to mark its 200
th
anniversary.
The circular economy
Every economy generates waste and pollution and depletes
primary resources. In order to preserve biodiversity and
combat climate change it is therefore essential to promote
the circular economy. By prioritising the recovery and recon-
ditioning of end-of-life products, the circular economy enables
human society to reduce its consumption of non-renewable
resources and diminish waste-production. To this end,
BNP Paribas Fortis has forged a partnership with international
non-profit CO
2
Value Europe, whose purpose is to capture,
recycle and use CO
2
as a primary resource, working towards
a circular economy in carbon.
23
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Inclusiveness
BNP Paribas Fortis is determined to help combat inequality of
all kinds and promote the development of an inclusive society
in which everyone can find their place.
Digital inclusion is becoming increasingly important in order
to enable everyone to participate fully in our society. For this
reason, in 2020 BNP Paribas Fortis launched DigitAll, the
first-ever Belgian alliance – bringing together social welfare
organisations, public bodies and private enterprises – for the
purpose of combating digital exclusion. In early 2022, DigitAll
unveiled MobiDig, a mobile toolbox containing digital equip-
ment, the aim being to facilitate social organisations to reach
out to their target public to help them acquire competence
in the use of digital tools. Meanwhile, the Digital Inclusion
by Design Index, another tool developed by DigitAll, enables
designers of digital tools and services to a) assess to what
extent they lend themselves to digital inclusion and then
b) work to make them more accessible to a public not fully
familiar with such tools and services.
BNP Paribas Fortis’ sustainability-
promotion policies are geared to five
strategic priorities:
Sustainable and responsible investing
At end-2022, assets under off-balance-sheet management
bearing the ‘Towards Sustainability’ label totalled 38.30 billion
euros. Some 64.6% of all new investments in funds carried
out in 2022 were in products that meet the ‘Towards
Sustainability’ criteria.
Sustainable real estate
BNP Paribas Fortis is the first large Belgian bank to apply the
European Union’s Energy Efficient Mortgage (EEM) label. The
bank offers preferential credit terms to individual customers
who opt for environmentally and socially sustainable real
estate projects. At end-2022, mortgage loans granted by the
bank carrying the EEM label totalled 4.95 billion euros.
In 2022, Energy Loans (i.e. loans to finance works designed
to save energy) accounted for 45% of the bank’s total lending
for property renovation purposes.
*
Clients of BNP Paribas Fortis SA/NV (including loans granted by Alpha Credit and Leasing Solutions to these clients), bpost banque and the Factoring businesses.
**
Loans whose charging mechanism is linked to improvements in a company’s ESG performance indicators.
Meanwhile, Energy Loans granted by BNP Paribas Fortis during
the year totalled 352 million euros, compared with 205 million
euros in 2021, a 72% increase year-on-year.
Corporate Sustainability Transition
The bank aims to substantially increase the proportion of its
loans that are granted for projects which meet Environment,
Social and Governance (ESG) criteria. As at 31 December
2022, the amount of outstanding ESG lending to BNP Paribas
Fortis
*
clients totalled 15.1 billion euros. This figure also
includes lending that meets the definition of Sustainability-
Linked Loans.
**
ESG loans include 5.7 billion euros for company projects in
the fields of renewable energy (51% of the total), recycling,
sustainable construction or property renovation and ‘soft’
mobility, plus also 3.5 billion euros worth of lending to the
non-market sector: hospitals, schools, universities, social
enterprises and charitable organisations.
The bank calls on the skills of a vast network of experts in
order to assist these businesses and organisations in making
their transition towards a more sustainable activity model.
Corporate clients are able to draw on the skills of our staff at
the Sustainable Business Centre (SBCC) and obtain their assis-
tance in carrying out environmentally and socially sustainable
projects. In 2022, the SBCC assisted with 106 loan requests
totalling 470 million euros worth of sustainable financing.
The BNP Paribas group’s networks on sustainability matters –
the Low-Carbon Transition Group and the Network of Experts
in Sustainability Transitions (NEST) also place their expertise
at the disposal of the bank’s corporate clients.
Meanwhile, the Sustainable Business Approach unit embed-
ded in our Retail & Private Banking division is staffed by a
network of 160 advisors who drive and promote the bank’s
sustainability strategy vis-à-vis both individual customers and
entrepreneur and small business clients.
With its recognised expertise in this field, plus its extensive
international connections, the bank took part during 2022 in
various debt issuance operations with a sustainability com-
ponent, including acting as Bookrunner for a 1 billion euro
Dual Tranche Green Bond issue by VGP and as Joint Global
Coordinator for a 500 million euro Sustainable Bond issue
by Cofinimmo.
24
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Determined to support the economy in an ethical manner,
BNP Paribas Fortis has adopted a set of sector-related
policies, setting out strict rules governing investment and
financing operations in sensitive sectors. Accordingly, the
bank declines to finance or invest in companies that do not
fulfil certain conditions relating to human rights and the
environment. However, before denying such companies our
services, we always attempt to engage with them in dialogue
so as to encourage them to change their practices. Out of the
541 proposed transactions submitted to Company Engagement
and Compliance for in-depth analysis during 2022, 12 were
rejected due to their non-compliance with the bank’s sector-
specific policies.
Sustainable mobility
BNP Paribas Fortis encourages both its individual customers
and business clients to choose more sustainable modes of
transport by offering them financing, leasing, insurance and
assistance solutions. For example, Individual customers benefit
from preferential credit terms when they purchase electric
vehicles. As at 31 December 2022, one in three new car loans
was for a low-emission vehicle. BNP Paribas Fortis leasing
subsidiary Arval offers company clients operational leasing
and consultancy services to help them set up alternative
mobility solutions. As at 31 December 2022, 7.05% of the
Arval fleet in Belgium was made up of 100%-electric vehicles,
which accounted for 28.4% of total orders. Some 18.39% of
Arval-managed vehicles registered in 2022 were 100%-electric.
Following the bank’s acquisition, in tandem with AG, of the
equity of Touring SA (a transaction scheduled for finalisation in
mid-2023) and the reorganisation of shareholdings in Optimile,
in which each of those three companies held a 33% stake,
BNP Paribas Fortis will become the majority shareholder in
Optimile, thus concretising our intention of becoming a serious
player in sustainable mobility. Optimile provides software
solutions for businesses wishing to ‘mobility as a service’ to
their employees, and also software solutions for charging
up electric vehicles – known as ‘charging infrastructure as
a service’.
Social inclusiveness
The stated purpose of social enterprises – which operate in
fields such as adapted work, the circular economy, energy
efficiency and decarbonisation – is to provide a solution to a
specific social problem. As at end-2022, BNP Paribas Fortis
numbered some 458 social entrepreneurs among its clients
and had 128 million euros worth of credit outstanding to
social enterprises. The bank further stepped up its commit-
ment to this sector by taking a stake in social investment
fund Trividend.
BNP Paribas Fortis also supports financial inclusion through
microStart. This micro-lender, of which the bank is a co-
founder, makes small loans and provides various kinds of
assistance to persons who wish to set up or further develop
their own business but are unable to obtain financing through
traditional banking channels. Since its inception in 2011,
microStart has to-date granted some 6,780 loans worth a total
of 55 million euros to micro-entrepreneurs, thus supporting
some 4,890 business projects and enabling the creation or
continuation of over 9,000 jobs. The year 2022 saw 555 new
micro-loans totalling some 6 million euros granted, and
microStart’s expert staff also provided 1,460 micro-entre-
preneurs with practical assistance, entirely free-of-charge.
Meanwhile, in pursuit of its policy of commitment to inclusion
and diversity, the bank signed up to the Open@Work charter,
as part of a network of Belgian companies that are deter-
mined to help create, through targeted policies and practical
action, an inclusive working environment that is welcoming
to LGBTQIA+ persons.
The Diversity Weeks 2022 were kicked off at a joint event
hosted by Solvay and BNP Paribas Fortis. The event provided
an opportunity to share practical experiences, testimonies and
good practice, starting with a video featuring the two CEOs,
Ilham Kadri and Max Jadot.
Drawing on the findings of the Diversity Barometer, a tool
which helps to measure progress on indicators for, among
other issues, the ‘glass ceiling’, BNP Paribas Fortis has drawn
up specific action plans for each type of post, with a view to
improving inter alia gender equality at all levels of the bank.
Meanwhile the BNP Paribas Fortis Foundation Fund, which
is embedded inside the King Baudouin Foundation Fund,
continues to help combat social exclusion among young
people and children from precarious backgrounds. Every
year the 10 Champions programme allocates support worth
50,000 euros over a period of two years to 10 charitable
organisations working in this field.
2022 saw the launch of a new philanthropic fund called Impact
Together, whose aim is to help create a more sustainable and
socially responsible world by working along three specific
lines: long-term strengthening of local organisations; financial
assistance to projects run by social or environmental organisa-
tions; and urgent response to help alleviate crisis situations.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
In 2022, the bank donated part of the fees arising from
Sustainability- and Social Responsibility-oriented investment
funds to a number of non-profit organisations and charitable
bodies. Accordingly, a total of 538,170 euros was transferred to
Natagora/Natuurpunt, the Belgian Red Cross, the Anti-Cancer
Foundation and microStart during the year.
BNP Paribas Fortis staff also mobilised during the year to
provide assistance to victims of the war in Ukraine. Their huge
contributions to the group’s Rescue & Recovery Fund, which
were then matched by the group, plus a supplementary dona-
tion of 500,000 euros to the King Baudouin Foundation by our
Private Banking division, resulted in a total of 656,556 euros
being donated to this cause.
Meanwhile the bank’s #ourjob2 campaign encourages staff to
make a practical contribution to environmental protection and
society at large. This commitment has been taken to a new
level by a volunteering programme called 1MillionHours2Help,
launched by the BNP Paribas group, which enables every
employee to devote one half-day of working time to a project
on a voluntary basis. In 2022, some 9,785 bank employees
took part in the #ourjob2 campaign. 7,355 of them provided a
total of 29,305 hours of voluntary work. For each participation
in #ourjob2, the bank arranges for the WeForest organisation
to plant a tree as part of a reforestation project in Zambia.
Together with trees planted under initiatives by other
departments of the bank, a total 125,874 trees have been
planted since 2017. In addition, for each participation in the
1MillionHours2Help programme the bank began in 2022 to
finance the restoration of one square metre of natural environ-
ment by either Natagora or Natuurpunt. This means a total
of 7,355 m
2
of nature restored during the last year alone,
plus also a further 657 m
2
due to registrations with the new
#ourjob2 platform dedicated to volunteering.
In late April, the festivities held to mark the bank’s 200
th
anni-
versary were kicked off by Positive Impact Day, during which
some 6,700 staff took part in 390 local Sustainability activities.
In addition to these five strategic priorities, BNP Paribas Fortis
makes strenuous efforts to reduce its own environmental
footprint.
The bank set out from the beginning to ensure that the new
headquarters building in the heart of Brussels, which was
inaugurated in 2021, would be exemplary from an environ-
mental point of view. Accordingly, we are now in the process of
obtaining an ‘Excellent’ certification according to the Building
Research Establishment Environmental Assessment Method
(BREAAM). The building has already received a MIPIM award
in the Best Office and Commercial Development category.
With an energy consumption rate just one-seventh as high as
the previous headquarters, and equipped with a 5,500 square
metre ‘green’ roof and photovoltaic panels, the new building
has a parking garage which gives pride of place to recharg-
ing stations for electric vehicles and also provides 330 slots
reserved for bicycles.
Meanwhile ever more of our staff are opting for a rechargeable
hybrid or 100%-electric car. At end-2022, just under 30% of the
fleet of private staff vehicles leased from Arval were electric
vehicles – either 100%-electric or rechargeable hybrids. At
that date, 79.5% of car orders waiting for delivery were for
electric vehicles.
Since 2015, BNP Paribas Fortis has been making 100% use of
‘green’ electricity in all its central buildings, branches and
regional headquarters. Since 2012, the bank has reduced its
CO2 emissions by 68% and its paper consumption by 80%.
Fully 99.5% of all paper used is certified FSC or PEFC, or is
recycled paper.
Additional information
BNP Paribas Fortis discloses comprehensive and updated
information about the bank’s Corporate Social Responsibility
on its corporate website (https://www.bnpparibasfortis.com/
our-commitment) together with the publication of an annual
Corporate Social Responsibility report since 2015.
BNP Paribas Fortis contributes to the BNP Paribas Group’s
strategic initiatives. More information is available in the
chapter 7 of the BNP Paribas Group’s universal registration
document (“Information concerning the economic, social,
civic and environmental responsibility of BNP Paribas”), in
its “Task Force on Climate Disclosure (TCFD) report”, and on
its corporate website.
26
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Changes in the scope of consolidation
Information on the changes in the scope of consolidation
is provided in note 7.b ‘Business combinations and other
changes of the consolidation scope’ and note 7.j ‘Scope of
consolidation’.
BNPParibas Fortis credit ratings at 10/02/2023
Long-term Outlook Short-term
Standard & Poor’s A+ Stable Outlook A-1
Moody’s A2 Stable Outlook P-1
Fitch Ratings AA- Stable Outlook F1+
The table above shows the main BNP Paribas Fortis credit
ratings and outlook on 10 February 2023.
Each of these ratings reflects the view of the rating agency
specifically at the moment when the rating was issued; any
explanation of the significance of a given rating is to be
obtained from the rating agency which issued it.
Forward-looking Statements
It should be noted that any statement of future expectations
and other forward-looking elements are based on the com-
pany’s current views and assumptions including a certain
degree of risk and uncertainty, especially given the current
general economic and market conditions.
27
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Comments on the evolution of the results
BNP Paribas Fortis realised a net income attributable to
equity holders of 3,161 million euros in 2022, compared to
2,593 million euros in 2021, up by 568 million euros or 22%.
Please note that the comments in the present section have
been written by referring to the financial statements and the
respective notes. For a more business oriented analysis, please
refer to the Press Release of BNP Paribas Fortis available on
the corporate website. This analysis focuses on the underlying
evolution, which excludes scope changes (acquisition, sale and
transfer of activities), foreign exchange impacts and one-off
results. By excluding these effects, BNP Paribas Fortis showed
an increasing underlying net income attributable to equity
holders by 19% compared to 2021.
Operating income amounted to 4,242 million euros in 2022, up
by 766 million euros or 22% compared to 3,476 million euros
in 2021. The increase was the result of higher revenues by
1,230 million euros or 15%, also higher costs by (495) million
euros or 11% and a decrease of the cost of risk by 31 million
euros or (9%).
Non-operating items (share of earnings of equity-method
entities, net gain or loss on non-current assets and goodwill)
were up by 256 million euros whereas the corporate income
tax increased by (458) million euros.
The comparison between 2022 and the 2021 results was
impacted by the following elements:
the pandemic crisis (in 2021), the invasion of Ukraine
(in 2022) and the higher inflation affecting the Belgian,
European and world economy;
few scope changes, including mainly the full consolidation
of bpost bank effective since first January 2022;
foreign exchange variations, and more in particular
the further material depreciation of the Turkish lira
against Euro (from 10.49 EUR/TRY on average in 2021 to
20.02 EUR/TRY on average in 2022);
the application of IAS 29 “Financial Reporting in
Hyperinflationary Economies” in Turkey, effective first
January 2022.
Based on the segment information, 45% of the revenues
were generated by banking activities in Belgium, 38% by
the Specialised Businesses made of Arval, Leasing Solutions
and Personal Finance (Alpha Crédit in Belgium), 7% by
banking activities in Luxembourg and 10% by banking activi-
ties in Turkey.
Net interest income reached 4,866 million euros in 2022,
an increase of 172 million euros or 4% compared to 2021.
Excluding the scope changes (161 million euros) and the
foreign exchange effect of the Turkish lira ((295) million euros),
the net interest income increased by 306 million euros.
In Belgium, the net interest income increased, supported
by the normalisation of interest rates and by the growth
of customer loans and deposits. In other banking activities,
the net interest income increased in Luxembourg, supported
by the normalisation of the interest rates, and decreased in
Turkey, because of the depreciation of the Turkish lira. In the
Specialised Businesses, there was an overall decrease driven
by the net interest expenses of Arval while the net interest
income increased at Leasing Solutions and remained stable
at Personal Finance.
Net commission income amounted to 1,410 million euros
in 2022, up by 15 million euros or 1% compared to 2021.
Excluding the scope changes (8 million euros) and the foreign
exchange effect of the Turkish lira ((52) million euros), net
commission income increased by 59 million euros.
In Belgium there was an increase of the net commissions,
mainly in banking fees and partly offset by a decrease of
financial fees. In other activities, the net commissions also
increased and were supported by the banking activities in
Luxembourg, with a small increase in Turkey despite the mate-
rial depreciation of the Turkish lira.
Net results on financial instruments at fair value through
profit or loss stood at 413 million euros, up by 217 million
euros compared to 2021. Excluding the foreign exchange effect
of the Turkish lira (76 million euros), net results on financial
instruments at fair value through profit or loss increased by
141 million euros.
This increase was mainly driven by the banking activities in
Turkey, servicing clients in a context of strong volatility in
currency exchange rates and interest rates.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Net results on financial instruments at fair value through
equity amounted to 40 million euros in 2022, increasing by
3 million euros compared to 2021.
The 2022 result in Belgium was marked by higher capital gains
than in 2021, mainly on the disposal of fixed-income securities,
partly offset by lower capital gains in Luxembourg and Turkey.
Net gain or loss on the derecognition of financial assets at
amortised cost totalled (2) million euros in 2022 compared
to 2 million euros in 2021.
Net income from insurance activities totalled 71 million euros
in 2022 compared to 80 million euros in 2021.
Net income from other activities totalled 2,844 million
euros in 2022, increasing by 836 million euros or 42% com-
pared to 2021.
The main contributor remains Arval that achieved a very good
performance, thanks to a further expansion of the financed
fleet and the still high used car prices.
Salary and employee benefit expenses amounted to
(2,591) million euros in 2022 an increase of (189) million euros
compared to 2021. Excluding the scope changes ((34) million
euros) and the foreign exchange effect of the Turkish lira
(94 million euros), there was an increase of (249) million euros.
In Belgium, there were more staff expenses, with an increase
mainly attributable to the impact of inflation mitigated by
the decrease of the FTEs. In other banking activities, there
was a contained increase in Luxembourg where the increase
mainly due to inflation was mitigated by a further decrease of
FTEs and a pronounced increase in Turkey in hyperinflation.
In the Specialised Businesses, there was an overall increase
mainly to support the growth of the activities with an impact
of inflation more pronounced in some countries.
Other operating expenses amounted to (2,084) million euros
in 2022, i.e. an increase of (270) million euros compared to
2021. Excluding the scope changes ((91) million euros) and the
foreign exchange impact of the Turkish lira (59 million euros),
the operating expenses increased by (238) million euros.
In Belgium, the other operating expenses increased mainly
due to the banking taxes, from (316) million euros in 2021 to
(402) million euros in 2022. In other activities, there was an
overall increase of the other operating expenses due among
others to the unfavourable impact of the inflation, especially in
Turkey. The increase is otherwise driven by the growth of the
activities in the Specialised Businesses as well as the increase
of banking taxes in Luxembourg.
Depreciation charges stood at (397) million euros in 2022,
versus (361) million euros compared to previous year, i.e. an
increase of (36) million euros. The increase is located in
Belgium and at Arval.
Cost of risk totalled (328) million euros in 2022, i.e. a decrease
of 31 million euros compared to 2021. Excluding the scope
changes ((33) million euros) and the foreign exchange impact
of the Turkish lira (31 million euros), there was a decrease of
33 million euros.
In Belgium, cost of risk decreased mainly thanks to less
provisions on non-performing loans, a positive evolution
compared to last year, partly offset by a material increase of
the provisions on performing loans reflecting the deterioration
of the macroeconomic environment linked among others to
the invasion of Ukraine, the higher inflation and the sharp
increase in interest rates.
In other activities, despite the deterioration of the macroeco-
nomic environment, there was an overall limited decrease of
the cost of risk driven by lower provisions on performing loans
offset by more provisions on non-performing loans mainly in
Turkey, despite the material depreciation of the Turkish lira,
and at Leasing Solutions and Arval.
Share of earnings of equity-method entities amounted
to 292 million euros in 2022, compared to 322 million
euros in 2021.
The decreased contribution from equity-method entities was
mainly attributable to the participation in BNP Paribas Asset
Management, impact by the market performance in 2022 and
an exceptional capital gain in 2021, and by the change of
consolidation, from equity-method to full consolidation, of
bpost bank in 2022.
Net gain or loss on non-current assets and Goodwill amounted
to 301 million euros in 2022 versus 15 million euros in 2021.
The increase mainly reflects the 245 million euros positive
impact of a badwill recognized on bpost bank as a result of
the change of consolidation.
29
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
According to IAS 29 in connection with the hyperinflation situ-
ation of the economy in Turkey, the line Results from monetary
positions reported in Net gain or loss on non-current assets
mainly includes the effect of the evolution of the consumer
price index in Turkey on the valuation of non-monetary assets
and liabilities ((400) million euros) and on accrued income
from the Turkish government bonds portfolio indexed to infla-
tion and held by Turk Ekonomi Bankasi AS (431 million euros,
reclassified from interest margin).
Corporate income tax in 2022 totalled (1,210) million euros
compared to (752) million euros, an increase of (458) million
euros. Excluding the share of earnings of equity-method enti-
ties (reported net of income taxes) and the badwill on bpost
bank, the effective tax rate stood at 28% in 2022 compared
to 22% in 2021.
Net income attributable to minority interests amounted
to 464 million euros in 2022, compared to 468 million
euros in 2021.
Comments on the evolution of the balance sheet
The total balance sheet of BNP Paribas Fortis amounted
to 350.4 billion euros as at 31 December 2022, up by
8.7 billion euros or 3% compared with 341.6 billion euros at
31 December 2021.
Based on the segment information, 65% of the assets were
contributed by banking activities in Belgium, 21% by the spe-
cialised businesses, 9% by banking activities in Luxembourg,
4% by banking activities in Turkey and 1% by other segments.
Assets
Cash and amounts due from central banks amounted to
39.0 billion euros, decreased by (22.3) billion euros compared
to 31 December 2021, mainly in Belgium and related, among
others, to the partial reimbursement of the TLTRO III (Targeted
Longer-Term Refinancing Operations) resulting in a lower cash
position at the National Banking of Belgium.
Financial instruments at fair value through profit or loss stood
at 12.3 billion euros, down by (1.3) billion euros compared to
31 December 2021. The decrease is driven by less reverse
repos for (1.7) billion euros, partly offset by the increase of
0.3 billion euros in ‘Derivative financial instruments’ that was
mainly related to the increase of the interest rate curve which
impacted in a symmetrical way both the fair value of derivative
financial instruments on the asset and liability side.
Derivatives used for hedging purposes increased by 4.5 billion
euros and amounted to 6.5 billion euros, reflecting the increase
of the interest rate curve. ‘Derivatives used for hedging
purposes’ on the liability side increased by 6.5 billion euros.
In both cases, the increase is mainly located in Belgium
and Luxembourg.
Financial assets at fair value through equity decreased by
(2.0) billion euros to 5.9 billion euros following the reimburse-
ments and disposals of government bonds, mainly in Belgium.
Financial assets at amortised cost amounted to 241.2 billion
euros as at 31 December 2022, up by 27.9 billion euros com-
pared with 213.2 billion euros as at 31 December 2021.
‘Loans and advances to customers’ amounted to 216.8 billion
euros, up by 22.7 billion euros mainly related to the increase
of mortgage loans, term loans and factoring loans granted by
BNP Paribas Fortis and the full consolidation of bpost bank
following the acquisition of the remaining 50% previously held
by Bpost. Loans and advances to customers also strongly
increased in all other activities.
In addition, ‘Loans and advances to credit institutions’
increased by 3.8 billion euros due to an increase in Belgium
and at Arval.
‘Debt securities at amortised cost’ increased by 1.4 billion
euros especially in Belgium with the full consolidation
of bpost bank.
Remeasurement adjustment on interest-rate risk hedged
portfolios amounted to (0.9) billion euros compared to
1.8 billion euros at 31 December 2021. This evolution is due
to the increase of the interest rates in 2022 with an evolution
mainly in Belgium.
30
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Current and deferred tax assets amounted to 1.2 billion euros,
down by (0.1) billion euros compared to 1.3 billion euros at
31 December 2021.
Accrued income and other assets stood at 11.5 billion euros
as at 31 December 2022, up by 2.3 billion euros compared to
9.2 billion euros at 31 December 2021. The increase of the
margin calls, which is mainly located in Belgium, explained
most of the evolution.
Equity-method investments amounted to 2.6 billion euros,
down by (1.2) billion euros compared to 3.8 billion euros at
31 December 2021. The decrease is mainly related to changes
in assets and liabilities recognised directly in equity in an
unfavourable market context and increasing interest rates.
Property, plant and equipment and Investment property
amounted to 29.6 billion euros as at 31 December 2022,
up by 3.4 billion euros compared to 26.1 billion euros at
31 December 2021 mainly related to the growth of the
financed fleet at Arval.
Liabilities and Equity
Deposits from central banks stood at 2.4 billion euros, up by
1.9 billion euros compared to 0.4 billion euros at 31 December
2021, mainly in Belgium.
Financial instruments at fair value through profit or loss
decreased by (3.9) billion euros, totalling 18.5 billion euros
as at 31 December 2022 compared to 22.4 billion euros at
31 December 2021. The decrease is mainly explained by the
repo activity in Belgium.
Financial liabilities at amortised cost amounted to
277.5 billion euros as at 31 December 2022, up by 6.7 billion
euros compared with 270.8 billion euros at 31 December 2021.
‘Deposits from customers’ stood at 212.7 billion euros, up by
13.7 billion euros mostly attributable to Belgium (10.9 billion
euros) resulting mainly from the full consolidation of bpost
bank, with an increase on current and saving accounts, as well
as an increase in Luxembourg (1.2 billion euros) and Turkey
(1.4 billion euros) driven by term accounts.
‘Deposits from credit institutions’ decreased by (10.3) billion
euros mainly due to the reimbursement of (10) billion euros
of the participation to the TLTRO III (Targeted Longer-Term
Refinancing Operations) in Belgium, partly offset by an
increase of deposits from credit institutions at Arval.
‘Debt securities’ increased by 3.4 billion euros, due to issuance
of debt securities at Arval.
‘Subordinated debt’ stood at 2.3 billion euros as at
31 December 2022, the same amount as at 31 December 2021.
Remeasurement adjustment on interest-rate risk hedged
portfolios amounted to (5.2) billion euros compared to
0.5 billion euros at 31 December 2021. This evolution is due
to the increase of the interest rates in 2022, with an evolution
mainly in Belgium and in Luxembourg.
Current and deferred tax liabilities amounted to 1.1 billion
euros, up by 0.3 billion euros compared to 0.8 billion euros at
31 December 2021.
Accrued expenses and other liabilities stood at 11.4 billion
euros as at 31 December 2022, up by 3.4 billion euros com-
pared to 8.0 billion euros at 31 December 2021. An increase
of 1.5 billion euros is due to an increase in margin calls
in Belgium.
Provisions for contingencies and charges came in at 3.8 billion
euros, decreased by (0.4) billion euros compared with the
4.2 billion euros at 31 December 2021.
Shareholders’ equity amounted to 25.4 billion euros as at
31 December 2022, down by (0.5) billion euros compared with
25.9 billion euros at 31 December 2021. The total capital,
retained earnings and net income for the period were mainly
impacted by the net income attributable to shareholders for
this year 2022 (3.2 billion euros), by the dividend distributed
by BNP Paribas Fortis in the first half of the year of 2022 ( (2.6)
billion euros), and by a negative evolution of (1.2) billion euros
related to changes in assets and liabilities recognised directly
in equity, mainly related to equity-method investments and
mainly due to the context of unfavourable market context and
increasing interest rates.
At 1 January 2022, the first-time application of IAS 29 resulted
in a 170 million euros increase in Equity, of which 222 million
euros in “Changes in assets and liabilities recognised directly
in equity – exchange differences”.
Minority interests stood at 5.7 billion euros as at 31 December
2022, compared to the situation end 2021 at 5.3 billion euros.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Liquidity and solvency
BNP Paribas Fortis’ liquidity remained sound,
with customer deposits standing at 213 billion
euros and customer loans at 217 billion euros.
Customer deposits consist of the ‘due to custom-
ers’ figure excluding ‘repurchase agreements’.
Customer loans are loans and receivables
due from customers excluding ‘debt securities
at amortised cost’ and ‘reverse repurchase
agreements’.
BNP Paribas Fortis’ solvency stood well above
the minimum regulatory requirements. At
31 December 2022, BNP Paribas Fortis’ phased-
in Basel III Common Equity Tier 1 ratio (CET1
ratio) stood at 17.2%. Total risk-weighted assets
amounted to 122.5 billion euros at 31 December
2022, of which 100.4 billion euros are related
to credit risk, 1.4 billion euros to market risk
and 7.9 billion euros to operational risk, while
counterparty risk, securitisation and equity risk
worked out at 1.0 billion euros, 0.7 billion euros
and 11.1 euros billion respectively.
Principal risks and uncertainties
BNP Paribas Fortis’ activities are exposed to a
number of risks, such as credit risk, market risk,
liquidity risk and operational risk. To ensure
that these risks are identified and adequately
controlled and managed, the bank adheres to a
number of internal control procedures and refers
to a whole array of risk indicators, which are
further described in the Chapter ‘Risk manage-
ment and capital adequacy’ of the BNP Paribas
Fortis consolidated financial statements 2022
and in the BNP Paribas Fortis ‘Pillar 3 dis-
closure’ 2022.
BNP Paribas Fortis is involved as a defendant in
various claims, disputes and legal proceedings in
Belgium and in some foreign jurisdictions, arising
in the ordinary course of its banking business,
as further described in note 7.a ‘Contingent
liabilities: legal proceedings and arbitration’ to
the BNP Paribas Fortis consolidated Financial
Statements 2022.
32
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
The Board of Directors of BNP Paribas Fortis declares that, to the best of its knowledge, the BNP Paribas
Fortis consolidated financial statements and the BNP Paribas Fortis non-consolidated financial
statements give a true and fair view of the assets, liabilities, financial position and profit and loss
of BNP Paribas Fortis and the undertakings included in the consolidation and that the information
herein contains no omissions likely to modify significantly the scope of any statements made.
The Board of Directors of BNP Paribas Fortis also declares that, to the best of its knowledge, the
report of the Board of Directors includes a fair review of the development, results and position of
BNP Paribas Fortis and the undertakings included in the consolidation, together with a description
of the principal risks and uncertainties with which they are confronted.
The BNP Paribas Fortis consolidated financial statements and the BNP Paribas Fortis non-consolidated
financial statements as at 31 December 2022 will be submitted to the annual General Meeting of
Shareholders for information and for approval on 20 April 2023.
Brussels, 9 March 2023
The Board of Directors of BNP Paribas Fortis
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
CORPORATE GOVERNANCE STATEMENT
BNP Paribas Fortis complies with the ‘2020 Belgian Code on Corporate Governance’ (hereafter referred to as the ‘Code’).
The Code can be consulted on https://www.corporategovernancecommittee.be/en.
1. Compliance with the Code
BNP Paribas Fortis is of the opinion that it complies with
the large majority of the requirements of the Code. The main
remaining deviation relates to principle 8 of the Code “The
company shall treat all shareholders equally and respect
their rights“. The reason that makes the company unable to
comply with all the provisions of principle 8 of the Code lies
within the structure of the shareholdership of BNP Paribas
Fortis. Specifically, BNP Paribas SA , a public limited company
(‘société anonyme’/’naamloze vennootschap’), having its
registered office address at Boulevard des Italiens 16,
75009 Paris, France, registered under number 662 042 449 RCS
Paris, holds 99.94% of the shares of BNP Paribas Fortis. The
remaining 0.06% of the shares is held by minority sharehold-
ers. Nevertheless, BNP Paribas Fortis communicates on an
ongoing basis with its various stakeholders through its website
and other media and actively answers to the questions raised
by its minority shareholders in the framework of the general
shareholders’ meetings.
BNP Paribas Fortis’ Corporate Governance Charter is available
on its public website.
BNP Paribas SA itself is a Euronext-listed company, which
implies that BNP Paribas Fortis, its directors and its staff, must
take into account certain legal provisions on the disclosure of
sensitive information to the market. The Board of Directors
of BNP Paribas Fortis is anyway determined to protect the
interests of all shareholders of BNP Paribas Fortis at all times
and will provide them with the necessary information and
facilities to exercise their rights, in compliance with the Code
on companies and associations.
BNP Paribas Fortis did not receive any transparency declara-
tions within the meaning of the Law of 2 May 2007 on the
disclosure of significant shareholdings.
2. Governing bodies
Board of Directors
Role and responsibilities
In general, the Board of Directors is responsible for BNP Paribas
Fortis in accordance with the applicable law. In particular,
and in accordance with article 23 of the law of 25 April 2014
on the legal status and supervision of credit institutions and
stockbroking firms (the ‘Banking Law’), the Board of Directors
defines and supervises among others:
the strategy and goals of BNP Paribas Fortis;
the risk policy (including the risk tolerance) of
BNP Paribas Fortis;
the organization of BNP Paribas Fortis for the provision of
investment services and activities;
the integrity policies;
BNP Paribas Fortis’ Internal Governance Memorandum,
Corporate Governance Charter and the Policy on Suitability
assessments.
Size and membership criteria
The Board of Directors of BNP Paribas Fortis consists of no
less than five (5) and no more than thirty-five (35) directors
(legal persons cannot be members of the Board of Directors).
Directors are appointed for one (1) or more renewable periods,
each individual period covering no more than four (4) full
accounting years of BNP Paribas Fortis.
The composition of the Board of Directors of BNP Paribas Fortis
has to be balanced in terms of (i) skills and competences, (ii)
gender, (iii) age, and (iv) executive and non-executive directors,
whether independent or not. The Board of Directors cannot
consist of a majority of executive directors.
As at 9 March 2023, the Board of Directors of BNP Paribas
Fortis is made up of sixteen (16) members, seven (7) of
which are women.
It moreover includes ten (10) non-executive directors, four (4)
of them being independent directors within the meaning of
the Banking law and six (6) executive directors.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
All directors must at all times be fit (‘passende deskun-
digheid’/‘expertise adéquate’) and proper (‘professionele
betrouwbaarheid’//‘honorabilité professionelle’) for the exer-
cise of their function. All are preselected and assessed based
on a predefined list of selection criteria. In general, a director
is considered to be ‘fit’ if he has the knowledge, experience,
skills and professional behaviour suitable for the exercise of
his director’s mandate. A director is considered to be ‘proper‘
if there are no elements suggesting differently and if there is
no reason to question the reputation of the concerned director.
BNP Paribas Fortis will assess and determine the suitability
of each nominee director (including in case of a mandate
renewal) prior to his (re-)appointment. BNP Paribas Fortis
will assess all directors continuously during their directorship,
at least once a year at the occasion of the periodic suitability
assessment, and every time a new element requires so.
The decision is subject to a separate suitability assessment,
performed by the competent supervisor.
Composition
As at 9 March 2023, the composition of the Board of Directors
is as follows:
JADOT Maxime
Chairman of the Board of Directors. Non-executive director.
Member of the Board of Directors since 13 January 2011.
The current board member mandate has been renewed on
18 April 2019.
It will expire at the end of the 2023 annual general meeting
of shareholders.
ANSEEUW Michael
Chairman of the Executive Board. Executive director.
Member of the Board of Directors since 19 April 2018.
The current board member mandate has been renewed on
21 April 2022.
It will expire at the end of the 2026 annual general meeting
of shareholders.
d’ASPREMONT LYNDEN Antoinette
Independent non-executive director.
Member of the Board of Directors since 19 April 2012.
The current board member mandate has been renewed on
23 April 2020.
It will expire at the end of the 2024 annual general meeting
of shareholders.
AUBERNON Dominique
Non-executive director.
Member of the Board of Directors since 21 April 2016.
The current board member mandate has been renewed on
23 April 2020.
It will expire at the end of the 2024 annual general meeting
of shareholders.
BEAUVOIS Didier
Executive director.
Member of the Board of Directors since 12 June 2014.
The current board member mandate has been renewed on
18 April 2019.
It will expire at the end of the 2023 annual general meeting
of shareholders.
BOOGMANS Dirk
Non-executive director.
Member of the Board of Directors since 1 October 2009.
The current board member mandate has been renewed on
23 April 2020.
It will expire at the end of the 2024 annual general meeting
of shareholders.
de CLERCK Daniel
Executive director.
Member of the Board of Directors since 12 December 2019.
The board member mandate will expire at the end of the
2023 annual general meeting of shareholders.
DE PLOEY Wouter
Independent non-executive director.
Member of the Board of Directors since 1 December 2022.
It will expire at the end of the 2026 annual general meeting
of shareholders.
DUTORDOIR Sophie
Non-executive director.
Member of the Board of Directors since 30 November 2010.
The current board member mandate has been renewed on
18 April 2019.
It will expire at the end of the 2023 annual general meeting
of shareholders.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
LECLERCQ Anne
Independent non-executive director.
Member of the Board of Directors since 21 April 2022.
The board member mandate will expire at the end of the
2026 annual general meeting of shareholders.
MERLO Sofia
Non-executive director.
Member of the Board of Directors since 21 April 2016.
The current board member mandate has been renewed on
23 April 2020.
It will expire at the end of the 2024 annual general meeting
of shareholders.
VAN AKEN Piet
Executive director.
Member of the Board of Directors since 3 June 2016.
The current board member mandate has been renewed on
23 April 2020.
It will expire at the end of the 2024 annual general meeting
of shareholders.
VAN WAEYENBERGE Titia
Independent non-executive director.
Member of the Board of Directors since 18 April 2019.
The board member mandate will expire at the end of the
2023 annual general meeting of shareholders.
VARÈNE Thierry
Non-executive director.
Member of the Board of Directors since 14 May 2009.
The current board member mandate has been renewed on
23 April 2020.
It will expire at the end of the 2024 annual general meeting
of shareholders.
VERMEIRE Stéphane
Executive director.
Member of the Board of Directors since 19 April 2018.
The current board member mandate has been renewed on
21 April 2022. It will expire at the end of the 2026 annual
general meeting of shareholders.
WILIKENS Sandra
Executive director.
Member of the Board of Directors since 21 April 2022.
The board member mandate will expire at the end of the
2026 annual general meeting of shareholders.
Between 1 January 2022 and 31 December 2022, the composi
-
tion of the Board of Directors was as follows:
DAEMS, Herman
Chairman of the Board of Directors until 31 December 2022.
JADOT, Maxime
Executive director and chairman of the Executive Board
until 31 December 2022.
ANSEEUW, Michael
Executive director
d’ASPREMONT LYNDEN, Antoinette
Independent non-executive director
AUBERNON, Dominique
Non-executive director
BEAUVOIS, Didier
Executive director
BOOGMANS, Dirk
Independent non-executive director until 21 April 2022.
Non-executive director since that date.
de CLERCK, Daniel
Executive director
DECRAENE, Stefaan
Non-executive director until 22 October 2022.
DE PLOEY, Wouter
Independent non-executive director since 1 December 2022.
DUTORDOIR, Sophie
Independent non-executive director until 30 November 2022.
Non-executive director since that date.
LECLERCQ, Anne
Independent non-executive director since 21 April 2022.
MERLO, Sofia
Non-executive director
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
VAN AKEN, Piet
Executive director
VAN WAEYENBERGE, Titia
Independent non-executive director
VARÈNE, Thierry
Non-executive director
VERMEIRE, Stéphane
Executive director
WILIKENS, Sandra
Executive director since 21 April 2022.
Attendance at meetings
The Board of Directors held fifteen (15) meetings in 2022.
Attendance at these meetings was as follows:
Director
Number of
Meetings
Attended
DAEMS, Herman 15
JADOT, Maxime 15
ANSEEUW, Michael 14
d’ASPREMONT LYNDEN, Antoinette 15
AUBERNON, Dominique 13
BEAUVOIS, Didier 13
BOOGMANS, Dirk 15
de CLERCK, Daniel 15
DECRAENE, Stefaan (until 22 October 2022) 8
DE PlOEY, Wouter (since 1 December 2022) 1
DUTORDOIR, Sophie 14
LECLERCQ, Anne (since 21 April 2022) 10
MERLO, Sofia 14
VAN AKEN, Piet 15
VAN WAEYENBERGE, Titia 15
VARENE, Thierry 15
VERMEIRE, Stéphane 14
WILIKENS, Sandra (since 21 April 2022) 10
Assessment of the Board of Directors and of
the directors
At least once a year, the Governance and Nomination
Committee and the Board of Directors perform an evaluation
of the Board of Directors and of all directors. At the occasion
of this evaluation, any element that may impact the suit-
ability assessment performed previously, as well as the time
dedicated and the efforts delivered to perform one’s mandate
properly, is reviewed. As part of this annual evaluation, recom-
mendations on how to manage and resolve any identified
weaknesses are formulated.
The last evaluation process of the Board of Directors ended in
October 2022 and the one of the directors individually ended
in February 2023.
Remuneration
Information regarding the total remuneration for the cor-
porate year 2022, including the remunerations, benefits in
kind and pension plans, of all directors, paid and payable by
BNP Paribas Fortis, can be found in note 7.f ‘Compensation
and benefits awarded to BNP Paribas Fortis’ corporate officers’
to the BNP Paribas Fortis Consolidated Financial Statements.
Executive Board
Role and responsibilities
In accordance with article 24 of the Banking Law and
article 21 of the Articles of association of BNP Paribas
Fortis, the Board of Directors has set up an Executive Board
(‘Directiecomité’/’Comité de Direction’). The members of
the Executive Board are hereafter referred to as the ‘execu-
tive directors’.
Size and membership criteria
The Executive Board is exclusively composed out of executive
directors of BNP Paribas Fortis. Taking into account article 24,
§2 of the Banking Law, the total number of members of the
Executive Board must be inferior to half of the total number
of directors. In addition, the Executive Board must keep the
number of its members within limits, ensuring that it operates
effectively and with the requisite flexibility.
Since all members of the Executive Board are to be considered
as effective leaders, certain suitability criteria apply in addition
to the suitability criteria generally imposed upon directors.
The decision whether or not to appoint a member of the
Executive Board belongs to the competence of the Board of
Directors. It will rely on a recommendation of the Governance
and Nomination Committee. The decision will be subject to a
separate suitability assessment subsequently performed by
the competent supervisor.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Composition
As at 9 March 2023, the composition of the Executive Board
is as follows:
ANSEEUW Michael
Executive director and chairman of the Executive Board
BEAUVOIS Didier
Executive director
de CLERCK Daniel
Executive director
VAN AKEN Piet
Executive director
VERMEIRE Stéphane
Executive director
WILIKENS Sandra
Executive director
Other Board of Directors’ committees
Article 27 of the Banking Law provides that the Board of
Directors must set up four (4) board committees: an audit
committee, a risk committee, a remuneration committee and
a nomination committee.
The existence of these committees does not in any way impinge
upon the Board’s right to set up further ad hoc committees
to deal with specific matters, as and when the need arises.
The Board of Directors has used this right to set up a.o. an
ad hoc board committee composed of three (3) directors and
chaired by an independent director to assess, if and when
necessary, whether an intended transaction falls within the
scope of article 72 of the Banking Law and ascertain that the
requirements of said article are complied with.
This right is also used by the Board of Directors when, in the
context of intra-group transactions, it sets up a special board
committee in accordance with its internal corporate govern-
ance policies (for more information reference is made to the
chapter ‘Information regarding related party transactions’).
Each board committee has an advisory function towards the
Board of Directors.
Besides the ad hoc committee that convenes within the frame-
work of article 72 of the Banking Law and of which the Chief
Risk Officer is a member while being an executive director, all
members of the other committees are non-executive direc-
tors. In addition to the criteria applicable to non-executive
directors, the chairperson of a committee must also meet the
requirements of his function.
The criteria to be met by directors composing a board com-
mittee are similar to those of the other directors.
The appointment of these committees’ members is further
based on (i) their specific competencies and experience, in
addition to the general competency requirements for any
board members, and (ii) the requirement that each committee
must, as a group, possess the competencies and experience
needed to perform its tasks.
A specific committee (the Governance and Nomination
Committee – see further) will assess whether the suitability
requirements applicable to the members and chairperson of
each committee are met. For this assessment, the Governance
and Nomination Committee will take into account the induc-
tion program that BNP Paribas Fortis will provide to any new
member of these committees.
The four (4) committees function in accordance with the
organisation set out below.
Audit committee (AC)
In accordance with article 27 of the Banking Law, BNP Paribas
Fortis is required to set up a separate AC to assist the Board
of Directors with audit related matters.
Role and responsibilities
The competences of the AC are set forth in the Banking Law
and are listed in the Code on companies and associations. It
concerns, in general, the following domains: finance, internal
control and risk management, internal and external audit. The
AC shall, upon request of the Board of Directors, assist (and
make recommendations to) the Board of Directors in all audit
and accounting related matters.
Membership criteria
In addition to the suitability requirements for non-executive
directors, the members of the AC must collectively have the
necessary skills and competences relating to BNP Paribas
Fortis’ activities and to audit and accounting. At least one (1)
member of the AC must have an expertise in audit and/or
accounting. Both independent directors, currently members
of the BNP Paribas Fortis AC, have a specific expertise in audit
and accounting.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Composition
The AC is composed of at least three (3) non-executive direc-
tors, of which at least two (2) directors are independent within
the meaning of the Banking law.
The chairperson of the AC must be an independent director.
The chairpersons of the AC and RC (see below) meet on a
regular basis with the chairpersons of the AC’s and RC’s of
the most important entities within the governance perimeter
of BNP Paribas Fortis.
Composition as at 9 March 2023:
Wouter De Ploey (non-executive, independent director),
chairman
Dominique Aubernon (non-executive director)
Anne Leclercq (non-executive, independent director)
Attendance at meetings
The AC met nine (9) times in 2022. Attendance was as follows:
Committee Member
Number of
meetings
attended
d’ASPREMONT LYNDEN, Antoinette
(until 30 November 2022)
9
DE PLOEY Wouter (since 1 December 2022) NA
AUBERNON, Dominique 9
BOOGMANS, Dirk (until 21 April 2022) 2
LECLERCQ Anne (since 21 April 2022) 7
Risk committee (RC)
In accordance with article 27 of the Banking Law, BNP Paribas
Fortis is required to set up a separate RC to assist the Board
of Directors with risk related matters.
Role and responsibilities
The competences of the RC are set forth in the Banking Law
and concern: (i) the strategy and risk appetite, (ii) the price
setting, and (iii) the remuneration policy. The RC shall, upon
request of the Board of Directors, assist (and make recommen-
dations to) the Board of Directors in all risk related matters.
Membership criteria
In addition to the suitability requirements for non-executive
directors, the members of the RC must individually have the
required knowledge, expertise, experience and skills in order
to be able to understand and apprehend BNP Paribas Fortis’
risk strategy and tolerance.
Composition
The RC is composed of at least three (3) non-executive direc-
tors, of which at least two (2) directors are independent within
the meaning of the Banking law.
The chairperson of the RC must be an independent director.
The chairpersons of the AC and RC meet on a regular basis with
the chairpersons of the AC’s and RC’s of the most important
entities within the governance perimeter of BNP Paribas Fortis.
Composition as at 9 March 2023:
Anne Leclercq (non-executive, independent director),
chairwoman
Dominique Aubernon (non-executive director)
Titia Van Waeyenberge (non-executive, independent director)
Attendance at meetings
The RC met eight (8) times in 2022. Attendance was as follows:
Committee Member
Number of
meetings
attended
BOOGMANS, Dirk (until 21 April 2022) 3
LECLERCQ, Anne (since 21 April 2022) 5
AUBERNON, Dominique 8
VAN WAEYENBERGE, Titia 8
Governance and nomination committee (GNC)
In accordance with article 27 of the Banking Law, BNP Paribas
Fortis is required to set up a separate GNC to assist the Board
of Directors with governance and nomination related matters.
Role and responsibilities
The competences of the GNC are set forth in the Banking Law
and the regulations of the Belgian National Bank. They concern
the expression of a relevant and independent judgment on
the composition and functioning of the Board of Directors
and the other management bodies of BNP Paribas Fortis, and
specifically on the individual and collective expertise of their
members, their integrity, reputation, independence of mind
and time commitment.
Membership criteria
In addition to the suitability requirements for non-executive
directors, the members of the GNC have collectively and
individually the necessary skills and competences in the field
of governance and nomination regulation and practices within
the Belgian banking sector.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Composition
The GNC is composed of at least three (3) non-executive
directors, of which at least two (2) directors are independent
within the meaning of the Banking law.
The chairperson of the GNC must be an independent director.
Composition as at 9 March 2023:
Antoinette d’Aspremont Lynden, (non-executive,
independent director), chairwoman
Maxime Jadot (non-executive director)
(since January 1, 2023)
Titia Van Waeyenberge (non-executive,
independent director)
Attendance at meetings
The GNC met nine (9) times in 2022. Attendance was
as follows:
Committee Member
Number of
meetings
attended
DUTORDOIR, Sophie (until 30 November 2022) 8
d’ASPREMONT LYNDEN, Antoinette
(since 1 December 2022)
1
DAEMS, Herman (until December 31, 2022) 8
VAN WAEYENBERGE, Titia 9
Remuneration committee (RemCo)
In accordance with article 27 of the Banking Law, BNP Paribas
Fortis is required to set up a separate RemCo to assist the
Board of Directors with remuneration related matters.
Role and responsibilities
The competences of the RemCo are set forth in the Banking
Law. They concern the expression of a relevant and independ-
ent judgement on the remuneration policies, reward practices
and related incentives, taking into account BNP Paribas Fortis’
risk management, equity needs and liquidity position.
Membership criteria
In addition to the suitability criteria for non-executive direc-
tors, the members of the RemCo individually and collectively
have the necessary skills, competences and expertise in the
field of remuneration, and in particular those applicable to
the Belgian banking sector.
Composition
The RemCo is composed of at least three (3) non-executive
directors, of which at least two (2) directors are independent
within the meaning of the Banking law.
The chairperson of the RemCo must be an independent director.
Composition as at 9 March 2023:
Antoinette d’Aspremont Lynden (non-executive,
independent director), chairwoman
Sofia Merlo (non-executive director)
Titia Van Waeyenberge (non-executive,
independent director)
Attendance at meetings
The RemCo met eight (8) times in 2022. Attendance was
as follows:
Committee Member
Number of
meetings
attended
DUTORDOIR, Sophie (until 30 November 2022) 7
d'ASPREMONT LYNDEN, Antoinette 8
MERLO, Sofia 6
VAN WAEYENBERGE, Titia
(since 1 December 2022)
1
Executive Committee
BNP Paribas Fortis has set up an Executive Committee, in
order to assist the Executive Board with the fulfilment of its
missions and responsibilities and to advise the Executive Board
as the case may be.
The Executive Committee currently consists of eleven (11)
members, of which six (6) are executive directors. It brings
together the Executive Board and the five (5) key heads of
businesses and support functions.
Composition as at 9 March 2023:
Michael ANSEEUW
Executive director, chairman of the Executive Board/
Executive Committee, chief executive officer
Didier BEAUVOIS
Executive director, member of the Executive Committee,
chief corporate banking
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Pierre BOUCHARA
Member of the Executive Committee, chief financial officer
Marc CAMUS
Member of the Executive Committee, chief information officer
Daniel de CLERCK
Executive director, member of the Executive Committee,
chief operating officer
Christophe GALIMARD
Member of the Executive Committee, chief compliance officer
Laurent LONCKE
Member of the Executive Committee, chief retail banking
Khatleen PAUWELS
Member of the Executive Committee, head of client
service center
Piet VAN AKEN
Executive director, member of the Executive Committee,
chief risk officer
Stéphane VERMEIRE
Executive director, member of the Executive Committee,
chief private banking and wealth management
Sandra WILIKENS
Executive director, member of the Executive Committee,
chief human resources officer
3. Internal Control Procedures
Missions and Activities of the Finance
Department – Finance Charter
The Finance Function, under the authority of the Chief
Financial Officer, reporting to the Chief Executive Officer, is
responsible for preparing and processing accounting and
financial information. This responsibility is further defined in
a specific Charter and consists of:
Elaborating financial information and ensuring that pub-
lished financial and prudential information is accurate and
fairly stated, in accordance with regulatory framework
and standards;
Providing Executive Management with the necessary infor-
mation for the financial steering at organizational levels;
Defining accounting, performance management and
selected prudential policies and lead their opera-
tional insertion;
Defining, deploying and supervising the permanent control
framework associated with financial information;
Assisting Executive Management in defining the entity’s
strategy, benchmarking the entity’s performance and
initiating and investigating merge & acquisition operations;
Proceeding to the analysis and the financial structuring
of the external and internal acquisition, partnership and
divestment projects;
Managing the financial communications, ensuring a high
quality and a clear perception by the markets;
Monitoring changes to the regulatory/prudential frame
-
work; elaborate and communicate the entity’s position
statements thereupon;
Coordinating banking supervisory issues, notably relation-
ship with the ECB;
Defining/running the Finance function’s organization and
monitor its resources and costs;
Driving the Target Operating Model implementation,
contribute to the definition of the functional architec-
ture and the design of Finance systems and proceed to
their deployment.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Producing financial information
Policies and rules
The local financial statements for each entity are prepared
under local GAAP while the BNP Paribas Fortis Consolidated
Financial Statements are prepared under International
Financial Reporting Standards (IFRS) as endorsed by the
European Union.
A dedicated team within Accounting & Reporting (A&R), section
of the Finance department, draws up the accounting policies
based on IFRS as endorsed by the European Union and to be
applied by all BNP Paribas Fortis entities. These are aligned
with BNP Paribas Group accounting policies. This A&R team
monitors regulatory changes and prepares new internal
accounting policies in line with the level of interpretation
necessary to adapt them to the operations carried out by
BNP Paribas Fortis. A BNP Paribas Group accounting manual
is available, together with additional documentation and
guidance related to the specific BNP Paribas Fortis products
and scope. This IFRS accounting manual is distributed to
all accounting and reporting teams. It is regularly updated
to reflect regulatory changes. The dedicated A&R team also
handles requests for specific accounting analysis made by the
local entities and the Core Businesses/Business Lines.
The Management Control department follows up the manage-
ment accounting and reporting rules as determined by BNP
Paribas Group Finance.
At Finance level, the changes in the prudential reporting are
followed up by the Financial Management department and dis-
cussed during the Prudential Affairs Coordination Committee.
The reporting principles and rules associated with solvency
are within the remit of Risk Management, and those associated
with liquidity are within the remit of ALM – Treasury.
Preparation of financial information
There are two distinct reporting channels involved in the
process of preparing financial information:
the financial accounting and reporting channel: the
particular responsibility of this channel is to perform the
entities’ financial and cost accounting, and to prepare the
BNP Paribas Fortis’ consolidated financial statements in
compliance with the policies and standards. It also pro-
duces information on solvency and liquidity, ensuring that
it is consistent with the accounting at each level. This
channel certifies the reliability of the information produced
by using dedicated control tools and by applying internal
certification procedures (described below) at the first level
of control;
the management accounting and reporting channel: this
channel prepares the management information (from
the Divisions/OEs/business lines compiled from the data
per entity) that is relevant to the economic management
of activities, complying with the established internal
principles and standards. It ensures the consistency of
the management data with the accounting data, at every
level. This channel is also responsible for the preparation
of solvency and liquidity ratios and for their analysis. This
channel certifies the reliability of the information produced
by applying internal certification procedures (described
below) at the first level of control.
BNP Paribas Group Finance designs, distributes and admin-
isters the reporting tools for the two channels. These tools
are designed to suit the channels’ individual objectives and
necessary complementarity, and provide information for the
entire BNP Paribas Group. In particular, BNP Paribas Group
Finance promotes the use of standard accounting and report-
ing systems in the BNP Paribas Group entities. The systems are
designed at BNP Paribas Group level and progressively rolled
out. This approach promotes the sharing of information and
facilitates the implementation of cross-functional projects in
the context of the development of pooled account processing
and synthesis within the BNP Paribas Group.
For the preparation of liquidity-related data as well as sol-
vency data, the bank has adopted the principle of integrating
internal management data and those required for regulatory
reporting, based on the following building blocks:
governance involving Finance, ALM-Treasury and Risk
Management;
policies and methodologies applicable as required by
regulations;
dedicated tools ensuring data collection and the produc-
tion of internal and regulatory reports.
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BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
Permanent control - Finance
Internal control within the Finance Function
Internal control at Finance is certified by a dedicated second
level of control team that is supported by specialized tools,
encompassing accounting controls and other operational
permanent control areas. The basis of their controls is the
control results and certification of the first level of control
done in the operational departments and other functions.
The mission of this team is to ensure, on a permanent basis,
the reliability of the processes used for producing and validat-
ing the financial figures for BNP Paribas Fortis, and to ensure
compliance with the legal and regulatory reporting require-
ments. Next to performing this second level of control, the
department’s activities consist of maintaining relations with
the external auditors and ensuring that their recommenda-
tions are correctly applied throughout BNP Paribas Fortis.
Internal Certification Process
BNP Paribas Fortis monitors the accounting and reporting risk
through a certification process, whose purpose is to report
on the quality of the information provided in the different
reporting systems. The results of the certification process
related to the financial reporting are presented quarterly to
the BNP Paribas Fortis Audit Committee.
Based on general rules, set by BNP Paribas Group, each entity
submitting a reporting package is required to certify the accu-
racy of the reporting package on a quarterly basis, using the
Finance Accounting Control Tool, an application designed to
support the certification process across the BNP Paribas Group.
Certificates are made up of standardized questions, included
in a generic control plan, addressing the main accounting and
financial risk areas.
Permanent control within Finance provides a level of comfort
to the CFO, BNP Paribas Group Finance, the BNP Paribas
Fortis Audit Committee, the external auditors and also the
National Bank of Belgium that the internal control measures
are being properly maintained, by performing a second level
of control on these certificates and ensuring the final valida-
tion by the CFO.
The certification process encompasses:
the certification that the accounting and reporting data are
reliable and comply with the BNP Paribas Group account-
ing and reporting policies;
the certification that the accounting and reporting internal
control system designed to ensure the quality of data is
operating effectively.
This internal certification process forms part of the overall
permanent control monitoring system and enables the
BNP Paribas Fortis Finance department to be informed of
any incidents relating to the preparation of the financial
statements, to monitor the implementation by the accounting
entities of appropriate corrective measures and, if necessary,
to book appropriate provisions. As regards BNP Paribas Fortis
in Belgium, the certification process is supported by an exten-
sive set of sub-certificates which cover all activities that may
generate accounting and financial risks for the company.
The certification system is also used in liaison with Risk
Management for information forming part of the regulatory
reporting on credit risk and solvency ratios. Those contributing
to the reports attest that they have complied with the stand-
ards and procedures and that the data used are of appropriate
quality. They further describe the results of the controls carried
out at the various stages of producing the reports, including
the accounting data to credit-risk data reconciliation. On the
same principles, a certification system has been installed
for liquidity-related data. The various contributors report on
compliance with standards and the results of key controls
performed to ensure the quality of the reporting.
Control of the value of financial instruments
and the use of valuation in determining the
results of market activities and accounting
reports
The Finance department delegates the determination and
control of market value or models of financial instruments
to the various departments involved in measuring financial
instruments within the overall process of monitoring market
risk and management data. However, it remains the respon-
sibility of the Finance department to oversee the accuracy of
these operations.
43
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
The purpose of these control procedures within Finance is:
to ensure that transactions involving financial instruments
are properly recorded in BNP Paribas Fortis’ financial and
management data;
to guarantee the quality of the measurement and report-
ing of financial instruments used both in preparing the
financial and management accounts and in managing and
monitoring market and liquidity risks; and
to ensure that the results of market transactions are
accurately determined and correctly analysed.
Periodic control – General Inspection
General Inspection has a team of inspectors who are special-
ists in accounting and finance audit. This reflects its strategy
of strengthening audit capability in accountancy, as regards
both the technical complexity of its work and its coverage of
accounting risk.
Its action plan is based on the remote accounting internal
control tools available to BNP Paribas Fortis and the risk
evaluation chart set up by General Inspection.
The core aims of the team are as follows:
to constitute a hub of accounting and financial expertise
in order to reinforce the capability of General Inspection
when carrying out inspections in such areas;
to identify via risk assessments and inspect risk areas at
the level of BNP Paribas Fortis.
Relations with the statutory auditors
In 2022, the accredited statutory auditor was PwC
Bedrijfsrevisoren bv / PwC Reviseurs d’Entreprises srl, repre-
sented by Mr. Jeroen BOCKAERT.
The statutory auditor is appointed by the Annual General
Meeting of Shareholders, based on advice from the Audit
Committee, proposal by the Board of Directors and after
approval of the Works Council.
The statutory auditor is required to issue an audit report every
financial year, in which he gives his opinion regarding the
true and fair view of the consolidated financial statements
of BNP Paribas Fortis and its subsidiaries. A summary of the
control findings and recommendations is presented to the
Audit Committee in the ‘2022 Internal Control findings &
recommendations’ document.
Next to this report, the statutory audit issues an Internal
Control Report describing the review of the functioning of the
internal control environment for this entity.
The statutory auditor also carries out specified procedures for
the BNP Paribas Group auditors and audit/review procedures
for the prudential regulator.
As part of their statutory audit assignment and based on his
audit tasks, he :
examines any significant changes in accounting standards
and presents his recommendations to the Audit Committee
regarding choices that have a material impact;
presents his findings, observations and recommendations
for improving the internal control system to the relevant
Bank entities and to Finance.
The Audit Committee of the Board of Directors is informed
about any accounting choices that have a material impact on
the financial statements, so that they can submit these choices
to the Board of Directors for a final decision.
44
BNP PARIBAS FORTIS CONSOLIDATED ANNUAL REPORT 2022
4. Conflicts of Interest
In addition to the legal provisions on conflicts of interest in
the Code on companies and associations, BNP Paribas Fortis
is required to comply with the provisions of the Banking Law
and the substance of a number of circular letters issued by
the National Bank of Belgium (NBB) whose purpose is to
avoid conflicts of interest between BNP Paribas Fortis and its
directors or executive management, inter alia in relation to
external functions exercised; as well as to contracts, transac-
tions and loans.
In addition, BNP Paribas Fortis has in place a general integrity
policy and specific codes of conduct regarding conflicts of
interest, which state that the attainment of commercial,
financial, professional or personal objectives must not stand
in the way of compliance with the following basic principles:
1.
customers’ interests (this includes understanding custom
-
ers’ needs, ensuring the fair treatment of customers and
protecting the customers’ interests, …);
2.
financial security (this includes fighting against money
laundering, against external bribery & corruption and
terrorist financing, sanctions & embargoes…);
3.
market integrity (this includes promoting free and fair
competition, complying with market abuse rules,…);
4.
professional ethics (this includes avoiding conflicts of
interests in outside activities, taking measures against
internal bribery and corruption,…);
5.
respect for colleagues (this includes applying best
standards in professional behavior, rejecting any forms of
discrimination and ensuring the safety of the workplace);
6.
group protection (this includes building and protecting
the BNP Paribas Group’s long-term value, protecting the
Group’s information, communicating responsibly,…);
7.
involvement with society (this includes promoting the
respect for human rights, protecting the environment and
combating climate change and acting responsibly in public
representation).
Finally, BNP Paribas Fortis directors have been assessed by
the relevant supervisor before their formal appointment, in
accordance with the Banking Law. Before issuing its approval
for an appointment, the relevant supervisor conducts an
assessment which involves verifying that certain conflicts of
interest do not exist.
BNP PARIBAS FORTIS CONSOLIDATED
FINANCIAL STATEMENTS 2022
Prepared in accordance with International Financial
Reporting Standards as adopted by the European Union
46
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2022
Profit and loss account for the year ended 31 December 2022
In millions of euros | Note | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Interest income | 2.a | ||
Interest expense | 2.a | ( | ( |
Commission income | 2.b | ||
Commission expense | 2.b | ( | ( |
Net gain or loss on financial instruments at fair value through profit or loss | 2.c | ||
Net gain or loss on financial instruments at fair value through equity | 2.d | ||
Net gain or loss on the derecognition of financial assets at amortised cost | ( | ||
Net income from insurance activities | |||
Income from other activities | 2.e | ||
Expense on other activities | 2.e | ( | ( |
REVENUES | |||
Salary and employee benefit expenses | 6.a | ( | ( |
Other operating expenses | 2.f | ( | ( |
| Depreciation, amortisation and impairment of property, plant and equipment | 4.l | ( | ( |
| and intangible assets | |||
GROSS OPERATING INCOME | |||
Cost of risk | 2.g | ( | ( |
OPERATING INCOME | |||
Share of earnings of equity-method entities | 4.k | ||
Net gain or loss on non-current assets | 2.h | ||
Goodwill | 4.m | ||
PRE-TAX INCOME | |||
Corporate income tax | 2.i | ( | ( |
NET INCOME | |||
of which net income attributable to minority interests | |||
NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS |
47
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2022
Statement of net income and change in assets and liabilities recognised
directly in equity
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Net income for the period | ||
Changes in assets and liabilities recognised directly in equity | ( | ( |
Items that are or may be reclassified to profit or loss | ( | ( |
Changes in exchange rate items | ( | |
| Changes in fair value of financial assets at fair value through equity | ||
Changes in fair value recognised in equity | ( | ( |
Changes in fair value reported in net income | ( | ( |
| Changes in fair value of investments of insurance activities | ||
Changes in fair value recognised in equity | ( | |
Changes in fair value reported in net income | ( | |
| Changes in fair value of hedging instruments | ||
Changes in fair value recognised in equity | ( | |
Changes in fair value reported in net income | ( | ( |
Income tax | ( | |
Changes in equity-method investments | ( | ( |
Items that will not be reclassified to profit or loss | ( | ( |
| Changes in fair value of financial assets at fair value through equity | ||
Changes in fair value recognised in equity | ||
Debt remeasurement effect arising from BNP Paribas Fortis issuer risk | ||
Remeasurement gains (losses) related to post-employment benefit plans | ( | ( |
Income tax | ||
Changes in equity-method investments | ||
Total | ||
Attributable to equity shareholders | ||
Attributable to minority interests |
48
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2022
Balance sheet at 31 December 2022
In millions of euros | Note | 31 December 2022 | 31 December 2021 |
| Assets | |||
Cash and balances at central banks | |||
Financial instruments at fair value through profit or loss | |||
Securities | 4.a | ||
Loans and repurchase agreements | 4.a | ||
Derivative financial instruments | 4.a | ||
Derivatives used for hedging purposes | 4.b | ||
Financial assets at fair value through equity | |||
Debt securities | 4.c | ||
Equity securities | 4.c | ||
Financial assets at amortised cost | |||
Loans and advances to credit institutions | 4.e | ||
Loans and advances to customers | 4.e | ||
Debt securities | 4.e | ||
Remeasurement adjustment on interest-rate risk hedged portfolios | ( | ||
Financial investments of insurance activities | |||
Current and deferred tax assets | 4.i | ||
Accrued income and other assets | 4.j | ||
Equity-method investments | 4.k | ||
Property, plant and equipment and Investment property | 4.l | ||
Intangible assets | 4.l | ||
Goodwill | 4.m | ||
Total assets | |||
| Liabilities | |||
Deposits from central banks | |||
Financial instruments at fair value through profit or loss | |||
Securities | 4.a | ||
Deposits and repurchase agreements | 4.a | ||
Issued debt securities | 4.a | ||
Derivative financial instruments | 4.a | ||
Derivatives used for hedging purposes | 4.b | ||
Financial liabilities at amortised cost | |||
Deposits from credit institutions | 4.g | ||
Deposits from customers | 4.g | ||
Debt securities | 4.h | ||
Subordinated debt | 4.h | ||
Remeasurement adjustment on interest-rate risk hedged portfolios | ( | ||
Current and deferred tax liabilities | 4.i | ||
Accrued expenses and other liabilities | 4.j | ||
Technical reserves and other insurance liabilities | |||
Provisions for contingencies and charges | 4.n | ||
Total liabilities | |||
| Equity | |||
Share capital, additional paid-in capital and retained earnings | |||
Net income for the period attributable to shareholders | |||
Total capital, retained earnings and net income for the period attributable to shareholders | |||
Changes in assets and liabilities recognised directly in equity | ( | ( | |
Shareholders' equity | |||
Minority interests | 7.c | ||
Total equity | |||
Total liabilities & equity |
49
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2022
Cash flow statement for the year ended 31 December 2022
In millions of euros | Note | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Pre-tax income | |||
Non-monetary items included in pre-tax net income and other adjustments | |||
Net depreciation/amortisation expense on property, plant and equipment and intangible assets | |||
Impairment of goodwill and other non-current assets | ( | ||
Net addition to provisions | |||
Share of earnings of equity-method entities | ( | ( | |
Net expense (income) from investing activities | ( | ( | |
Net expense from financing activities | |||
Other movements | |||
| Net increase in cash related to assets and liabilities generated by operating | ( | ||
| activities | |||
Net increase in cash related to transactions with customers and credit institutions | ( | ||
Net increase in cash related to transactions involving other financial assets and liabilities | ( | ||
Net decrease in cash related to transactions involving non-financial assets and liabilities | ( | ( | |
Taxes paid | ( | ( | |
Net increase (decrease) in cash and equivalents generated by operating activities | ( | ||
Net increase in cash related to acquisitions and disposals of consolidated entities | |||
Net decrease related to property, plant and equipment and intangible assets | ( | ( | |
Net increase (decrease) in cash and equivalents related to investing activities | ( | ||
Net decrease in cash and equivalents related to transactions with shareholders | ( | ( | |
| Net increase (decrease) in cash and equivalents generated by other financing | ( | ||
| activities | |||
Net decrease in cash and equivalents related to financing activities* | ( | ( | |
Effect of movement in exchange rates on cash and equivalents | ( | ( | |
Net increase in cash and equivalents | ( | ||
Balance of cash and equivalent accounts at the start of the period | |||
Cash and amounts due from central banks | |||
Due to central banks | ( | ( | |
On-demand deposits with credit institutions | 4.e | ||
On-demand loans from credit institutions | 4.g | ( | ( |
Balance of cash and equivalent accounts at the end of the period | |||
Cash and amounts due from central banks | |||
Due to central banks | ( | ( | |
On-demand deposits with credit institutions | 4.e | ||
On-demand loans from credit institutions | 4.g | ( | ( |
Net increase in cash and equivalents | ( | ||
| Additional information: | |||
Interest paid | ( | ( | |
Interest received | |||
Dividend paid/received | ( | ( |
* Changes in liabilities arising from financing activities other than those arising from cash flows amount to EUR 53 million, due to foreign exchange and
revaluation effect, for respectively EUR 87 million and EUR (63 ) million
50
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2022
Statement of changes in shareholders’ equity between 1 January 2021 and
31 December 2022
In million
of euros
Capital and retained
earnings
Changes in assets and
liabilities recognised
directly in equity that
will not be reclassified
to profit or loss
Changes in assets and liabilities
recognised directly in equity that
may be reclassified to profit or
loss
Total Shareholders' equity
Minority interests (note 7.c)
Total consolidated equity
Share capital
Subordinated equity instruments
Non distributed reserves
Total capital and retained earnings
Financial instruments designated as at fair value
through equity
Own-credit valuation adjustment of debt securities
designated as at fair value through profit or loss
Remeasurement gains (losses) related to post-
employment benefits plans
Total
Exchange rate
Financial instruments at fair value through equity
Financial investments of insurance activities
Derivatives used for hedging purposes
Total
| Capital and | ||||||||||||||||
| retained earnings | ( | ( | ( | ( | ( | ( | ||||||||||
| at 1 January 2021 | ||||||||||||||||
Other movements | - | |||||||||||||||
Dividends | - | ( | ( | - | ( | ( | ( | |||||||||
| Changes in assets | ||||||||||||||||
| and liabilities | ( | ( | ( | ( | ( | ( | ( | ( | ( | |||||||
| recognised | ||||||||||||||||
| directly in equity | ||||||||||||||||
| Net income | ||||||||||||||||
| for 2021 | ||||||||||||||||
Capital and retained earnings | ( | ( | ( | ( | ( | ( | ||||||||||
| at 31 December | ||||||||||||||||
| 2021 | ||||||||||||||||
IAS 29 impact | ( | ( | ||||||||||||||
Capital and retained earnings | ( | ( | ( | ( | ( | ( | ||||||||||
| at 1 January 2022 | ||||||||||||||||
Other movements | ( | ( | ( | ( | ( | |||||||||||
Dividends | ( | ( | - | - | ( | ( | ( | |||||||||
Realised gains or losses reclassified | ( | ( | ||||||||||||||
| to retained | ||||||||||||||||
| earnings | ||||||||||||||||
| Changes in assets | ||||||||||||||||
| and liabilities | ( | ( | ( | ( | ( | ( | ( | |||||||||
| recognised | ||||||||||||||||
| directly in equity | ||||||||||||||||
| Net income | ||||||||||||||||
| for 2022 | ||||||||||||||||
Capital and retained earnings | ( | ( | ( | ( | ( | ( | ||||||||||
| at 31 December | ||||||||||||||||
| 2022 |
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 2022
Prepared in accordance with International Financial
Reporting Standards as adopted by the European Union
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||||
| In millions of euros | Income | Expense | Net | Income | Expense | Net |
Financial instruments at amortised cost | 7,185 | (2,141) | 5,044 | 6,251 | (1,735) | 4,516 |
Deposits, loans and borrowings | 5,945 | (1,866) | 4,079 | 4,976 | (1,499) | 3,477 |
Repurchase agreements | 57 | (36) | 21 | 63 | (36) | 27 |
Finance leases | 1,073 | (93) | 980 | 981 | (86) | 895 |
Debt securities | 110 | - | 110 | 231 | - | 231 |
Issued debt securities and subordinated debts | - | (146) | (146) | - | (114) | (114) |
Financial instruments at fair value through equity | 71 | - | 71 | 93 | - | 93 |
Debt securities | 71 | - | 71 | 93 | - | 93 |
| Financial instruments at fair value through profit or loss | 4 | (35) | (31) | 8 | (30) | (22) |
| (Trading securities excluded) | ||||||
Cash flow hedge instruments | 221 | (227) | (6) | 175 | (174) | 1 |
Interest rate portfolio hedge instruments | 755 | (957) | (202) | 490 | (374) | 116 |
Lease liabilities | - | (10) | (10) | - | (10) | (10) |
Net interest income/expense | 8,236 | (3,370) | 4,866 | 7,017 | (2,323) | 4,694 |
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||||
| In millions of euros | Income | Expense | Net | Income | Expense | Net |
Customer transactions | 135 | (82) | 53 | 107 | (83) | 24 |
Securities and derivatives transactions | 1,040 | (278) | 762 | 930 | (227) | 703 |
Financing and guarantee commitments | 181 | (27) | 154 | 160 | (18) | 142 |
Asset management and other services | 643 | (26) | 617 | 750 | (45) | 705 |
Others | 276 | (452) | (176) | 252 | (431) | (179) |
Net Commission income/expense | 2,275 | (865) | 1,410 | 2,199 | (804) | 1,395 |
Of which net commission income related to trust and similar activities through which BNP Paribas Fortis | 431 | (4) | 427 | 472 | (2) | 470 |
holds or invests assets on behalf of clients, trusts, pension and personal risk funds or other institutions | ||||||
Of which commission income and expense on financial instruments not measured at fair value through profit or loss | 370 | (131) | 239 | 390 | (144) | 246 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Trading Book | (46) | 162 |
Interest rate and credit instruments | (35) | 3 |
Equity financial instruments | (286) | 136 |
Foreign exchange financial instruments | 288 | (19) |
Loans and repurchase agreements | (13) | 42 |
Other financial instruments | - | - |
Financial instruments designated as at fair value through profit or loss | 371 | (103) |
Other financial instruments at fair value through profit and loss | 80 | 143 |
Debt instruments | (24) | 15 |
Equity instruments | 104 | 128 |
Impact of hedge accounting | 8 | (6) |
Fair value hedging derivatives | (1,533) | 338 |
Hedged items in fair value hedge | 1,541 | (344) |
Net gain or loss on financial instruments at fair value through profit or loss | 413 | 196 |
| 2.d Net gain on financial instruments at fair value through equity | ||
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
| Net gain on debt instruments | 19 | 16 |
Dividend income on equity instruments | 21 | 21 |
Net gain or loss on financial instruments at fair value through equity | 40 | 37 |
| (1) Interest income from debt instruments is included in ‘Net interest income’ (Note 2.a), and impairment losses related to potential issuer default are included |
ear to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||||
Income | Expense | Net | Income | Expense | Net | |
Net income from investment property | 35 | (9) | 26 | 86 | (15) | 71 |
Net income from assets held under operating leases | 13,040 | (10,287) | 2,753 | 12,326 | (10,461) | 1,865 |
Other net income | 893 | (828) | 65 | 996 | (924) | 72 |
Total net income from other activities | 13,968 | (11,124) | 2,844 | 13,408 | (11,400) | 2,008 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
External services and other operating expenses | (1,567) | (1,400) |
| Taxes and contributions | (517) | (414) |
Other operating expenses | (2,084) | (1,814) |
| Stage 1 presumption | Deterioration from origination | Stage 2 presumption | ||
| leading to transfer to Stage 2 | ||||
| One year probabilityof default | ||||
| Retail | One year probability | One year probability of default at origination > 4 | One year probability | |
| of default* < 0.25% | or | of default > 10% | ||
| Previous | Rating downgrade ≥ 6 notches | |||
| criteria | Small and | |||
| Medium | Rating downgrade ≥ 6 notches | |||
| Entreprises | Rating ≤ 4- | Rating ≥ 9+ | ||
Large Corporates | Rating downgrade ≥ 3 notches | |||
| Lifetime PiT probability of default | ||||
| One year PiT probability | Lifetime PiT probability of default at origination > 3 | One year PiT probability | ||
| New criteria | of default** < 0.3% | or | of default > 20% | |
| Variation of lifetime PiT probability of default sinds | ||||
| origination > 400 bps |
nnual averages | ||||
| crises) were adapted in order to extract information on the | |
| medium-term impacts on macroeconomic environment and | |
| thus minimise excessive short-term volatility. | |
In 2020, line scenario reduced the loss of income for the eurozone by an amount | the medium-term perspective adopted for the base- |
88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
n millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Net allowances to impairment | (311) | (353) |
Recoveries on loans and receivables previously written off | 28 | 23 |
Losses on irrecoverable loans | (45) | (29) |
Total cost of risk for the period | (328) | (359) |
n millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Cash and balances at central banks | (4) | (6) |
Financial instruments at fair value through profit or loss | (3) | 7 |
Financial assets at fair value through equity | 15 | (6) |
Financial assets at amortised cost | (316) | (346) |
of which loans and receivables | (312) | (343) |
of which debt securities | (4) | (3) |
Other assets | (7) | 6 |
Financing and guarantee commitments and other items | (13) | (14) |
Total cost of risk for the period | (328) | (359) |
Cost of risk on unimpaired assets and commitments | (156) | (79) |
of which Stage 1 | (115) | 22 |
of which Stage 2 | (41) | (101) |
Cost of risk on impaired assets and commitments - Stage 3 | (172) | (280) |
| Net | Impairment | Effect of exchange | |||
| 31 December | allowance to | provisions | rate movements | ||
| In millions of euros | 2021 | impairment | used | and other items | 31 December 2022 |
| Assets impairment | |||||
Amounts due from central banks | 12 | 5 | - | (2) | 15 |
Financial instruments at fair value through profit or loss | 10 | 2 | - | (4) | 8 |
Impairment of financial assets at fair value through equity | 32 | (15) | - | 2 | 19 |
Financial assets at amortised cost | 3,048 | 307 | (258) | (30) | 3.067 |
of which loans and receivables | 3,044 | 303 | (258) | (29) | 3.060 |
of which debt securities | 4 | 4 | - | (1) | 7 |
Other assets | 10 | - | (1) | - | 9 |
Total impairment of financial assets | 3,112 | 299 | (259) | (34) | 3,118 |
of which Stage 1 | 268 | 91 | - | (3) | 356 |
of which Stage 2 | 483 | 24 | - | (30) | 477 |
of which Stage 3 | 2,361 | 184 | (259) | (1) | 2,285 |
| Provisions recognised as liabilities | |||||
Provisions for commitments | 230 | 11 | - | 1 | 242 |
Other provisions | 29 | 1 | - | (1) | 29 |
| Total provisions recognised for credit | 259 | 12 | - | - | 271 |
| commitments | |||||
of which Stage 1 | 44 | 22 | - | - | 66 |
of which Stage 2 | 66 | 19 | - | - | 85 |
of which Stage 3 | 149 | (29) | - | - | 120 |
Total impairment and provisions | 3,371 | 311 | (259) | (34) | 3,389 |
| Net | Impairment | Effect of exchange | |||
| allowance to | provisions | rate movements | |||
In millions of euros | 1 January 2021 | impairment | used | and other items | 31 December 2021 |
| Assets impairment | |||||
Amounts due from central banks | 10 | 7 | - | (5) | 12 |
Financial instruments at fair value through profit or loss | 19 | (3) | - | (6) | 10 |
Impairment of financial assets at fair value through equity | 24 | 7 | - | 1 | 32 |
Financial assets at amortised cost | 3,124 | 342 | (245) | (173) | 3,048 |
of which loans and receivables | 3,121 | 339 | (245) | (171) | 3,044 |
of which debt securities | 3 | 3 | - | (2) | 4 |
Other assets | 19 | (9) | (1) | - | 10 |
Total impairment of financial assets | 3,196 | 344 | (246) | (183) | 3,112 |
of which Stage 1 | 315 | (15) | - | (32) | 268 |
of which Stage 2 | 449 | 85 | - | (51) | 483 |
of which Stage 3 | 2,432 | 274 | (246) | (100) | 2,361 |
| Provisions recognised as liabilities | |||||
Provisions for commitments | 217 | 15 | - | (2) | 230 |
Other provisions | 19 | (6) | - | 16 | 29 |
| Total provisions recognised for credit | 236 | 9 | - | 14 | 259 |
| commitments | |||||
of which Stage 1 | 55 | (10) | - | (1) | 44 |
of which Stage 2 | 51 | 15 | - | - | 66 |
of which Stage 3 | 130 | 4 | - | 15 | 149 |
Total impairment and provisions | 3,432 | 353 | (246) | (169) | 3,371 |
| Impairment on | Impairment on | |||
| assets subject to | assets subject to | Impairment | ||
| 12-month Expected | lifetime Expected | on doubtful | ||
| Credit Losses | Credit Losses | assets | ||
| In millions of euros | (Stage 1) | (Stage 2) | (Stage 3) | Total |
At 31 December 2021 | 253 | 455 | 2,340 | 3,048 |
Net allowances to impairment | 86 | 39 | 182 | 307 |
Financial assets purchased or originated during the period | 114 | 95 | - | 209 |
| Financial assets derecognised during the period | (42) | (63) | (205) | (310) |
Transfer to Stage 2 | (34) | 196 | (46) | 116 |
Transfer to Stage 3 | (3) | (24) | 238 | 211 |
Transfer to Stage 1 | 33 | (192) | (6) | (165) |
| Other allowances/reversals without stage transfer | 18 | 27 | 201 | 246 |
Impairment provisions used | - | - | (258) | (258) |
Effect of exchange rate movements and other items | (1) | (32) | 3 | (30) |
At 31 December 2022 | 338 | 462 | 2,267 | 3,067 |
| Impairment on | Impairment on | |||
| assets subject to | assets subject to | Impairment | ||
| 12-month Expected | lifetime Expected | on doubtful | ||
| Credit Losses | Credit Losses | assets | ||
| (Stage 1) | (Stage 2) | (Stage 3) | Total | |
At 31 December 2020 | 301 | 430 | 2,392 | 3,123 |
Net allowances to impairment | (22) | 79 | 285 | 342 |
Financial assets purchased or originated during the period | 114 | 116 | - | 230 |
| Financial assets derecognised during the period | (54) | (77) | (357) | (488) |
Transfer to Stage 2 | (27) | 229 | (57) | 145 |
Transfer to Stage 3 | (3) | (50) | 279 | 226 |
Transfer to Stage 1 | 20 | (134) | (9) | (123) |
| Other allowances/reversals without stage transfer | (72) | (5) | 429 | 352 |
Impairment provisions used | - | - | (245) | (245) |
Effect of exchange rate movements and other items | (26) | (54) | (92) | (172) |
At 31 December 2021 | 253 | 455 | 2,340 | 3,048 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Net gain on investments in consolidated undertakings | 7 | 1 |
Net gain on tangible and intangible assets | 18 | 13 |
Result from monetary position | 31 | - |
Net gain on non-current assets | 56 | 14 |
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||
| Reconciliation of the effective tax expense to the theoretical tax | In millions | In millions | ||
| expense at standard tax rate in Belgium | of euros | Tax rate | of euros | Tax rate |
| Corporate income tax expense on pre-tax income at standard tax rate | (1,074) | 25.00% | (873) | 25.00% |
Impact of differently taxed foreign profits | 13 | (0.3%) | 5 | (0.1%) |
Impact of dividends and disposals taxed at reduced rate | 17 | (0.4%) | 15 | (0.4%) |
Other items | (166) | 3.9% | 101 | (2.9%) |
Corporate income tax expense | (1,210) | 28.16% | (752) | 21.54% |
of which Current tax expense for the year to 31 December | (853) | (526) | ||
Deferred tax expense for the year to 31 December (Note 4.i) | (357) | (226) |
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||||||||||
Revenues | 4,337 | 697 | 910 | 3,694 | 4 | 9,642 | 4,204 | 681 | 633 | 2,889 | 5 | 8,412 |
Operating expense | (2,798) | (396) | (433) | (1,441) | (4) | (5,072) | (2,505) | (380) | (364) | (1,326) | (2) | (4,577) |
Cost of risk | (95) | 20 | (71) | (176) | (6) | (328) | (120) | (2) | (66) | (156) | (15) | (359) |
Operating Income | 1,444 | 321 | 406 | 2,077 | (6) | 4,242 | 1,579 | 299 | 203 | 1,407 | (12) | 3,476 |
Non-operating items | 264 | 3 | (18) | 73 | 271 | 593 | 20 | - | 1 | 10 | 306 | 337 |
Pre-tax income | 1,708 | 324 | 388 | 2,150 | 265 | 4,835 | 1,599 | 299 | 204 | 1,417 | 294 | 3,813 |
31 December 2022 | 31 December 2021 | |||||||||||
Assets | 226,806 | 31,222 | 14,960 | 74,790 | 2,614 | 350,392 | 226,250 | 32,735 | 13,731 | 65,729 | 3,203 | 341,648 |
of which investments in associates and Joint ventures | 731 | 96 | 5 | 98 | 1,642 | 2,572 | 841 | 97 | 3 | 91 | 2,777 | 3,809 |
Liabilities | 210,796 | 25,156 | 13,549 | 68,884 | 956 | 319,341 | 209,725 | 26,695 | 12,865 | 60,762 | 404 | 310,451 |
FTE (**) as | |||||||
| In millions of euros, | Pre-tax | Deferred | Corporate | at 31 Dec. | |||
| Year to 31 Dec. 2022 | Revenues | income | Current tax | tax | income tax | 2022 | Nature of activities |
Belgium | 4,617 | 1,853 | (168) | (218) | (386) | 12,059 | |
| of which: BNP Paribas Fortis | |||||||
| SA/NV (Including Bass & | 3,943 | 1,579 | (91) | (236) | (327) | 10,400 | Credit institution |
| Esmée Master Issuer NV) | |||||||
Turkey | 962 | 503 | (319) | 36 | (284) | 9,399 | |
| of which: Türk Ekonomi | 788 | 354 | (298) | 75 | (223) | 8,666 | Credit institution |
Bankası AS Luxembourg | 732 | 348 | (73) | 8 | (65) | 2,100 | |
of which: BGL BNP Paribas | 688 | 315 | (81) | 11 | (70) | 2,012 | Credit institution |
France | 939 | 404 | (18) | (96) | (114) | 3,489 | |
| of which: Arval Service | 478 | 216 | (8) | (56) | (64) | 1,928 | Leasing firm |
| Lease | |||||||
Germany | 278 | 156 | (26) | (19) | (45) | 790 | |
Poland | 82 | 46 | (4) | (5) | (9) | 577 | |
United Kingdom | 501 | 324 | (48) | (14) | (62) | 1,222 | |
Spain | 338 | 225 | (28) | (30) | (58) | 988 | |
The Netherlands | 140 | 77 | (20) | 1 | (20) | 615 | |
Italy | 637 | 406 | (109) | (15) | (123) | 1,133 | |
Other | 416 | 201 | (40) | (5) | (44) | 2,159 | |
Total | 9,642 | 4,543 | (853) | (357) | (1,210) | 34,531 |
31 December 2022 | 31 December 2021 | |||||||
| In millions of euros | ||||||||
Securities | 388 | - | 988 | 1,376 | 372 | - | 945 | 1,317 |
Loans and repurchase agreements | 2,502 | - | 56 | 2,558 | 4,213 | 2 | 67 | 4,282 |
| Financial assets at fair value through profit | 2,890 | - | 1,044 | 3,934 | 4,585 | 2 | 1,012 | 5,599 |
| or loss | ||||||||
Securities | 603 | - | - | 603 | 159 | - | - | 159 |
Deposits and repurchase agreements | 7,415 | 147 | - | 7,562 | 12,900 | 160 | - | 13,060 |
Issued debt securities (note 4.h) | - | 2,388 | - | 2,388 | - | 3,028 | - | 3,028 |
Of which subordinated debt | - | 675 | - | 675 | - | 931 | - | 931 |
Of which non subordinated debt | - | 1,713 | - | 1,713 | - | 2,097 | - | 2,097 |
Financial liabilities at fair value through profit or loss | 8,018 | 2,535 | - | 10,553 | 13,059 | 3,188 | - | 16,247 |
31 December 2022 | 31 December 2021 | |||
| Positive | Negative | Positive | Negative | |
| market value | market value | market value | market value | |
Interest rate derivatives | 5,718 | 5,783 | 5,736 | 4,595 |
Foreign exchange derivatives | 2,172 | 2,102 | 1,522 | 1,468 |
Credit derivatives | - | - | - | 2 |
Equity derivatives | 491 | 82 | 777 | 60 |
Other derivatives | - | - | - | - |
Derivative financial instruments | 8,381 | 7,967 | 8,035 | 6,125 |
31 December 2022 | 31 December 2021 | |||||||
| In millions of euros | ||||||||
Interest rate derivatives | 35,546 | 57,541 | 221,567 | 314,654 | 84,115 | 27,387 | 333,860 | 445,362 |
Foreign exchange derivatives | 207 | - | 109,637 | 109,844 | 49 | 9 | 121,333 | 121,391 |
Credit derivatives | - | - | 9 | 9 | - | - | 17 | 17 |
Equity derivatives | 186 | - | 1,196 | 1,382 | 1,223 | - | 1,404 | 2,627 |
Other derivatives | - | - | - | - | - | - | - | - |
Derivative financial instruments | 35,939 | 57,541 | 332,409 | 425,889 | 85,387 | 27,396 | 456,614 | 569,397 |
31 December 2022 | 31 December 2021 | |||||
| Notional | Positive | Negative | Notional | Positive | Negative | |
| In millions of euros | amounts | fair value | fair value | amounts | fair value | fair value |
| Fair value hedges | 193,607 | 6,324 | 9,438 | 129,750 | 1,779 | 3,094 |
Interest rate derivatives | 193,321 | 6,317 | 9,424 | 129,343 | 1,772 | 3,088 |
Foreign exchange derivatives | 286 | 7 | 14 | 407 | 7 | 6 |
Cash flow hedges | 15,369 | 175 | 254 | 15,909 | 188 | 121 |
Interest rate derivatives | 2,639 | 47 | 123 | 3,831 | 35 | 15 |
Foreign exchange derivatives | 12,730 | 128 | 131 | 12,078 | 153 | 106 |
Other derivatives | - | - | - | - | - | - |
Net foreign investment hedges | - | - | - | 200 | 15 | - |
Foreign exchange derivatives | - | - | - | 200 | 15 | - |
Derivatives used for hedging purposes | 208,976 | 6,499 | 9,692 | 145,859 | 1,982 | 3,215 |
| 31 December 2022 | ||||||||
Hedging instruments | Hedged instruments | |||||||
Fair value hedges of identified instruments | 11,711 | 269 | 1,940 | (1,648) | 9,492 | 1,529 | 2,395 | 56 |
| Interest rate derivatives hedging the interest rate risk | 11,304 | 263 | 1,934 | (1,649) | 9,453 | 1,532 | 2,023 | 58 |
related to Loans and receivables | 876 | 15 | 273 | (244) | 856 | 244 | - | - |
Securities | 8,449 | 178 | 1,660 | (1,463) | 8,597 | 1,288 | - | - |
Deposits | 33 | 1 | - | - | - | - | 34 | - |
Debt securities | 1,946 | 69 | 1 | 58 | - | - | 1,989 | 58 |
| Foreign exchange derivatives hedging the interest rate | 407 | 6 | 6 | 1 | 39 | (3) | 372 | (2) |
and foreign exchange risks related to Loans and receivables | - | - | - | - | - | - | - | - |
Securities | 39 | 3 | 1 | 3 | 39 | (3) | - | - |
Deposits | 22 | - | - | - | - | - | 23 | - |
Debt securities | 346 | 3 | 5 | (2) | - | - | 349 | (2) |
Interest-rate risk hedged portfolios | 118,039 | 1,510 | 1,154 | 149 | 29,385 | 309 | 57,943 | 458 |
| Interest rate derivatives hedging the interest rate risk | 118,039 | 1,510 | 1,154 | 149 | 29,385 | 309 | 57,943 | 458 |
related to (1) Loans and receivables | 47,581 | 385 | 806 | (309) | 29,385 | 309 | - | - |
Securities | - | - | - | - | - | - | - | - |
Deposits | 70,458 | 1,125 | 348 | 458 | - | - | 57,943 | 458 |
| Foreign exchange derivatives hedging the interest rate | - | - | - | - | - | - | - | - |
and foreign exchange risks related to Loans and receivables | - | - | - | - | - | - | - | - |
Deposits | - | - | - | - | - | - | - | - |
Total fair value hedge | 129,750 | 1,779 | 3,094 | (1,499) | 38,877 | 1,838 | 60,338 | 514 |
| 31 December 2022 | Maturity date | ||
| In millions of euros | Less than 1 year | Between 1 to 5 years | Over 5 years |
Fair value hedges | 56,237 | 77,456 | 59,914 |
Interest rate derivatives | 56,194 | 77,213 | 59,914 |
Foreign exchange derivatives | 43 | 243 | - |
Cash flow hedges | 11,024 | 3,645 | 700 |
Interest rate derivatives | 170 | 1,769 | 700 |
Foreign exchange derivatives | 10,854 | 1,876 | - |
Other derivatives | - | - | - |
Net foreign investments hedges | - | - | - |
Foreign exchange derivatives | - | - | - |
| Maturity date | |||
Less than 1 year | Between 1 to 5 years | Over 5 years | |
Fair value hedges | 20,797 | 52,801 | 56,152 |
Interest rate derivatives | 20,581 | 52,610 | 56,152 |
Foreign exchange derivatives | 216 | 191 | - |
Cash flow hedges | 12,212 | 3,197 | 500 |
Interest rate derivatives | 1,627 | 1,704 | 500 |
Foreign exchange derivatives | 10,585 | 1,493 | - |
Other derivatives | - | - | - |
Net foreign investments hedges | 100 | 100 | - |
Foreign exchange derivatives | 100 | 100 |
31 December 2022 | 31 December 2021 | |||
| of which changes | of which changes | |||
| in value taken | in value taken | |||
| Fair value | directly to equity | Fair value | directly to equity | |
Debt securities | 5,739 | (70) | 7,547 | 25 |
Governments | 1,029 | (3) | 2,791 | 21 |
Other public administrations | 2,390 | (20) | 2,408 | 22 |
Credit institutions | 1,653 | (18) | 1,641 | 4 |
Other | 667 | (29) | 707 | (22) |
Equity securities | 138 | 91 | 314 | 256 |
Total financial assets at fair value through equity | 5,877 | 21 | 7,861 | 281 |
| 31 December 2022 | ||||||||||||
| Instruments at fair value through | Financial assets at fair value | |||||||||||
| Trading Book | profit or loss not held for trading | through equity | ||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |
Securities | 358 | 30 | - | 388 | 166 | 99 | 723 | 988 | 5,307 | 560 | 10 | 5,877 |
Governments | 102 | - | - | 102 | - | - | - | - | 980 | 11 | - | 991 |
Asset Backed Securities | - | - | - | - | - | 71 | - | 71 | - | 394 | - | 394 |
Other debt securities | 150 | 30 | - | 180 | - | 24 | 140 | 164 | 4,199 | 155 | - | 4,354 |
| Equities and other equity | 106 | - | - | 106 | 166 | 4 | 583 | 753 | 128 | - | 10 | 138 |
| securities | ||||||||||||
| Loans and repurchase | - | 2,403 | 99 | 2,502 | - | 5 | 51 | 56 | - | - | - | - |
| agreements | ||||||||||||
Loans | - | - | - | - | - | 5 | 51 | 56 | - | - | - | - |
Repurchase agreements | - | 2,403 | 99 | 2,502 | - | - | - | - | - | - | - | - |
Financial assets at fair value | 358 | 2,433 | 99 | 2,890 | 166 | 104 | 774 | 1,044 | 5,307 | 560 | 10 | 5,877 |
Securities | 603 | - | - | 603 | - | - | - | - | ||||
Governments | 603 | - | - | 603 | - | - | - | - | ||||
Other debt securities | - | - | - | - | - | - | - | - | ||||
| Equities and other equity | - | - | - | - | - | - | - | - | ||||
| securities | ||||||||||||
Borrowings and repurchase agreements | - | 7,415 | - | 7,415 | - | 147 | - | 147 | ||||
Borrowings | - | 13 | - | 13 | - | 147 | - | 147 | ||||
Repurchase agreements | - | 7,402 | - | 7,402 | - | - | - | - | ||||
| Issued debt securities | - | - | - | - | - | 1,711 | 677 | 2,388 | ||||
| (Note 4.h) | ||||||||||||
| Subordinated debt | - | - | - | - | - | 675 | - | 675 | ||||
| (Note 4.h) | ||||||||||||
| Non subordinated debt | - | - | - | - | - | 1,036 | 677 | 1,713 | ||||
| (Note 4.h) | ||||||||||||
Financial liabilities at fair value | 603 | 7,415 | - | 8,018 | - | 1,858 | 677 | 2,535 | ||||
| 31 December 2021 | ||||||||||||
| Instruments at fair value through | Financial assets at fair value | |||||||||||
| Trading Book | profit or loss not held for trading | through equity | ||||||||||
| In millions of euros | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
Securities | 320 | 46 | 5 | 371 | 195 | 164 | 587 | 946 | 6,826 | 838 | 197 | 7,861 |
Governments | 113 | - | - | 113 | - | - | - | - | 2,658 | 87 | - | 2,745 |
Asset Backed Securities | - | - | - | - | - | 120 | - | 120 | - | 528 | - | 528 |
Other debt securities | 165 | 46 | 5 | 216 | - | 41 | 97 | 138 | 4,051 | 223 | - | 4,274 |
| Equities and other equity | 42 | - | - | 42 | 195 | 3 | 490 | 688 | 117 | - | 197 | 314 |
| securities | ||||||||||||
| Loans and repurchase | - | 3,961 | 253 | 4,214 | - | 11 | 57 | 68 | - | - | - | - |
| agreements | ||||||||||||
Loans | - | - | - | - | - | 11 | 57 | 68 | - | - | - | - |
Repurchase agreements | - | 3,961 | 253 | 4,214 | - | - | - | - | - | - | - | - |
Financial assets at fair value | 320 | 4,007 | 258 | 4,585 | 195 | 175 | 644 | 1,014 | 6,826 | 838 | 197 | 7,861 |
Securities | 159 | - | - | 159 | - | - | - | - | ||||
Governments | 159 | - | - | 159 | - | - | - | - | ||||
Other debt securities | - | - | - | - | - | - | - | - | ||||
| Equities and other equity | - | - | - | - | - | - | - | - | ||||
| securities | ||||||||||||
Borrowings and repurchase agreements | - | 12,799 | 101 | 12,900 | - | 160 | - | 160 | ||||
Borrowings | - | 14 | - | 14 | - | 160 | - | 160 | ||||
Repurchase agreements | - | 12,785 | 101 | 12,886 | - | - | - | - | ||||
| Issued debt securities | - | - | - | - | - | 2,030 | 998 | 3,028 | ||||
| (Note 4.h) | ||||||||||||
| Subordinated debt | - | - | - | - | - | 931 | - | 931 | ||||
| (Note 4.h) | ||||||||||||
| Non subordinated debt | - | - | - | - | - | 1,099 | 998 | 2,097 | ||||
| (Note 4.h) | ||||||||||||
Financial liabilities at fair value | 159 | 12,799 | 101 | 13,059 | - | 2,190 | 998 | 3,188 | ||||
| In millions of euros | ||||||||
| Balance Sheet | |||||||
| valuation | |||||||
| (In millions | Range of | ||||||
| of euros) | unobservable | ||||||
| Main unobservable | input across | ||||||
| Valuation technique | inputs for the | Level 3 | |||||
| Main product types composing the | used for the product | product types | population | ||||
| Level 3 stock within the risk class | types considered | considered | considered | ||||
| Floors and caps on inflation rate or | Volatility of | 1.0% to 11.7% | |||||
| on the cumulative inflation (such as | Inflation pricing | cumulative inflation | (a) | ||||
| Interest rate | redemption floors), predominantly | model | Volatility of the year | ||||
161 | 109 | on European and Belgian inflation | 0.4% to 3.3% | ||||
| derivatives | on year inflation rate | ||||||
| Forward volatility products such as | Interest rates option | Forward volatility of | 0.6% to 1.2% | (a) | |||
| volatility swaps, mainly in euro | pricing model | interest rates |
Financial assets | Financial liabilities | ||||||
At 31 December 2021 | 306 | 644 | 197 | 1,147 | 171 | 998 | 1,169 |
Purchases | - | 143 | - | 143 | - | - | - |
Issues | - | - | - | - | - | 18 | 18 |
Sales | - | (47) | (180) | (227) | - | - | - |
| Settlements | (123) | 14 | - | (109) | (87) | (226) | (313) |
Transfers to Level 3 | 74 | - | - | 74 | 96 | - | 96 |
Transfers from Level 3 | (5) | (5) | - | (10) | - | - | - |
| Gains or (losses) recognised in profit or loss with respect | (7) | 26 | - | 19 | - | (113) | (113) |
| to transactions expired or terminated during the period | |||||||
| Gains or (losses) recognised in profit or loss with respect | 16 | - | - | 16 | (63) | - | (63) |
| to unexpired instruments at the end of the period | |||||||
| Changes in fair value of assets and liabilities recognised | - | - | - | - | - | - | - |
| directly in equity | |||||||
- Items related to exchange rate movements | - | (1) | (3) | (4) | - | - | - |
- Changes in assets and liabilities recognised in equity | - | - | (4) | (4) | - | - | - |
At 31 December 2022 | 261 | 774 | 10 | 1,045 | 117 | 677 | 794 |
31 December 2022 | 31 December 2021 | |||
| Potential impact | Potential impact | Potential impact | Potential impact | |
| In millions of euros | on income | on equity | on income | on equity |
Fixed-income securities | +/-1 | +/-0 | +/-1 | +/-0 |
Equities and other equity securities | +/-6 | +/-0 | +/-5 | +/-2 |
Loans and repurchase agreements | +/-2 | +/-3 | ||
Derivative financial instruments | +/-6 | +/-11 | ||
Interest rate and foreign exchange derivatives | +/-6 | +/-11 | ||
Credit derivatives | +/-0 | +/-0 | ||
Equity derivatives | +/-0 | +/-0 | ||
Other derivatives | +/-0 | +/-0 | ||
Sensitivity of Level 3 financial instruments | +/-15 | +/-0 | +/-20 | +/-2 |
31 December 2022 | 31 December 2021 | |||||
| Impairment | Carrying | Impairment | Carrying | |||
| In millions of euros | Gross value | (note 2.g) | amount | Gross value | (note 2.g) | amount |
Loans and advances to credit institutions | 11,288 | (68) | 11,220 | 7,458 | (64) | 7,394 |
On demand accounts | 5,794 | - | 5,794 | 3,417 | (1) | 3,416 |
| Loans | 2,629 | (68) | 2,561 | 3,070 | (63) | 3,007 |
Repurchase agreements | 2,865 | - | 2,865 | 971 | - | 971 |
Loans and advances to customers | 219,777 | (2,992) | 216,785 | 197,082 | (2,980) | 194,102 |
On demand accounts | 4,224 | (540) | 3,684 | 4,094 | (500) | 3,594 |
Loans to customers | 194,351 | (1,954) | 192,397 | 172,538 | (1,985) | 170,553 |
Finance leases | 21,202 | (498) | 20,704 | 20,450 | (495) | 19,955 |
Repurchase agreements | - | - | - | - | - | - |
Total loans and advances at amortised cost | 231,065 | (3,060) | 228,005 | 204,540 | (3,044) | 201,496 |
31 December 2022 | 31 December 2021 | |||||
| Impairment | Carrying | Impairment | Carrying | |||
| In millions of euros | Gross value | (note 2.g) | amount | Gross value | (note 2.g) | amount |
Governments | 9,351 | (6) | 9,345 | 8,210 | (4) | 8,206 |
Other public administrations | 2,212 | - | 2,212 | 1,919 | - | 1,919 |
Credit institutions | 1,117 | - | 1,117 | 1,149 | - | 1,149 |
Other | 478 | (1) | 477 | 438 | - | 438 |
Total debt securities at amortised cost | 13,158 | (7) | 13,151 | 11,716 | (4) | 11,712 |
31 December 2022 | 31 December 2021 | |||||
| Impairment | Carrying | Impairment | Carrying | |||
| Gross value | (note 2.g) | amount | Gross value | (note 2.g) | amount | |
Loans and advances to credit institutions | 11,288 | (68) | 11,220 | 7,458 | (64) | 7,394 |
Stage 1 | 11,177 | (2) | 11,175 | 7,293 | (1) | 7,292 |
Stage 2 | 42 | (1) | 41 | 100 | (1) | 99 |
Stage 3 | 69 | (65) | 4 | 65 | (62) | 3 |
Loans and advances to customers | 219,777 | (2,992) | 216,785 | 197,082 | (2,980) | 194,102 |
Stage 1 | 193,193 | (330) | 192,863 | 168,002 | (248) | 167,754 |
Stage 2 | 22,317 | (461) | 21,856 | 24,780 | (454) | 24,326 |
Stage 3 | 4,267 | (2,201) | 2,066 | 4,300 | (2,278) | 2,022 |
Debt securities | 13,158 | (7) | 13,151 | 11,716 | (4) | 11,712 |
Stage 1 | 13,155 | (7) | 13,148 | 11,712 | (4) | 11,708 |
Stage 2 | 3 | - | 3 | 4 | - | 4 |
Stage 3 | - | - | - | - | - | - |
Total financial assets at amortised cost | 244,223 | (3,067) | 241,156 | 216,256 | (3,048) | 213,208 |
115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
| 31 December 2022 | |||||||||||||||
| Accumulated impairment, accumulated negative | |||||||||||||||
| Gross carrying amount | changes in fair value due to credit risk | ||||||||||||||
Performing | Non performing | Performing | Non performing | ||||||||||||
In millions of euros | |||||||||||||||
Loans and advances subject | 8,499 | 8,135 | 230 | 882 | 363 | 190 | 150 | (133) | (32) | (8) | (20) | (101) | (45) | (36) | 24 |
| to moratorium | |||||||||||||||
Of which Households | 3,039 | 2,982 | 7 | 183 | 57 | 10 | 16 | (7) | (3) | - | (2) | (4) | - | (1) | 7 |
of which collateralised | |||||||||||||||
| by residential | 2,979 | 2,925 | 7 | 173 | 53 | 9 | 15 | (6) | (2) | - | (1) | (3) | - | (1) | 7 |
| immovable | |||||||||||||||
| property | |||||||||||||||
Of which Non-financial | 5,264 | 4,964 | 218 | 657 | 300 | 176 | 133 | (123) | (28) | (7) | (18) | (95) | (44) | (35) | 15 |
| corporations | |||||||||||||||
of which small and Medium-sized | 2,455 | 2,331 | 145 | 372 | 124 | 45 | 33 | (71) | (17) | (5) | (12) | (55) | (16) | (9) | 10 |
| Enterprises | |||||||||||||||
of which collateralised | |||||||||||||||
| by commercial | 2,973 | 2,839 | 97 | 310 | 134 | 88 | 114 | (36) | (7) | (2) | (4) | (29) | (20) | (24) | 3 |
| immovable | |||||||||||||||
| property | |||||||||||||||
| In response to the sanitary crisis, several moratoria have been granted to clients. Those moratoria mostly consist in payment | |||||||||||||||
116
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
| 31 December 2022 | |||||||||
| Gross carrying amount | |||||||||
| Residual maturity of moratoria | |||||||||
| Number | Of which: | Of | > 9 months | ||||||
| In millions of | of | legislative | which: | > 3 months | > 6 months | <= 12 | |||
| euros | obligors | moratoria | expired | <= 3 months | <= 6 months | <= 9 months | months | > 1 year | |
Loans and advances | |||||||||
for which moratorium was offered | 106,516 | 8,509 | |||||||
Loans and advances subject | 106,333 | 8,499 | 583 | 8,499 | - | - | - | - | - |
| to moratorium | |||||||||
| (granted) | |||||||||
| of which: | 3,039 | 265 | 3,039 | - | - | - | - | - | |
| Households | |||||||||
| of which: | |||||||||
| Collateralised | |||||||||
| by residential | 2,979 | 229 | 2,979 | - | - | - | - | - | |
| immovable | |||||||||
| property | |||||||||
| of which: | |||||||||
| Non-financial | 5,264 | 318 | 5,264 | - | - | - | - | - | |
| corporations | |||||||||
| of which: | |||||||||
Small and Medium-sized | 2,455 | 292 | 2,455 | - | - | - | - | - | |
| Enterprises | |||||||||
| of which: | |||||||||
| Collateralised | |||||||||
| by commercial | 2,973 | 19 | 2,973 | ||||||
| immovable | |||||||||
| property | |||||||||
2 December 2020
117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
| 31 December 2022 | ||||
| Maximum | ||||
| amount | Gross carrying | |||
| Gross carrying amount | of the guarantee | amount | ||
| that can be | ||||
| considered | ||||
| Public | Inflows to | |||
| of which: | guarantees | non-performing | ||
| forborne | ||||
| In millions of euros | received | exposures | ||
| Newly originated loans and advances subject to public | 111 | 6 | 88 | 9 |
| guarantee schemes | ||||
of which: Households | 3 | |||
of which: Collateralised by residential immovable property | 1 | |||
of which: Non-financial corporations | 107 | 6 | 84 | 8 |
of which: Small and Medium-sized Enterprises | 68 | 5 | ||
of which: Collateralised by commercial immovable property | 23 | 2 | ||
n millions of euros | 31 December 2022 | 31 December 2021 |
Gross investment | 22,541 | 21,749 |
Receivable within 1 year | 7,215 | 6,869 |
Receivable after 1 year but within 5 years | 13,956 | 13,561 |
Receivable beyond 5 years | 1,370 | 1,319 |
Unearned interest income | (1,339) | (1,299) |
Net investment before impairment | 21,202 | 20,450 |
Receivable within 1 year | 6,648 | 6,330 |
Receivable after 1 year but within 5 years | 13,285 | 12,903 |
Receivable beyond 5 years | 1,269 | 1,217 |
Impairment provisions | (498) | (495) |
Net investment after impairment | 20,704 | 19,955 |
| 31 December 2022 | ||||
| Stage 3 assets | ||||
Gross value | Impairment | Net | Collateral received | |
Loans and advances to credit institutions (note 4.e) | 69 | (65) | 4 | - |
Loans and advances to customers (note 4.e) | 4,267 | (2,201) | 2,066 | 1,589 |
Debt securities at amortised cost (note 4.e) | - | - | - | - |
Total amortised cost impaired assets (Stage 3) | 4,336 | (2,266) | 2,070 | 1,589 |
Financing commitments given | 108 | (25) | 83 | 29 |
Guarantee commitments given | 199 | (66) | 133 | 71 |
Total off-balance sheet impaired commitments (Stage 3) | 307 | (91) | 216 | 100 |
| 31 December 2021 | ||||
| Stage 3 assets | ||||
| In millions of euros | Gross value | Impairment | Net | Collateral received |
Loans and advances to credit institutions (note 4.e) | 65 | (62) | 3 | - |
Loans and advances to customers (note 4.e) | 4,300 | (2,278) | 2,022 | 1,548 |
Debt securities at amortised cost (note 4.e) | - | - | - | - |
Total amortised cost impaired assets (Stage 3) | 4,365 | (2,340) | 2,025 | 1,548 |
Financing commitments given | 159 | (30) | 129 | 46 |
Guarantee commitments given | 250 | (90) | 160 | 89 |
Total off-balance sheet impaired commitments (Stage 3) | 409 | (120) | 289 | 135 |
| Gross value Impaired financial assets (Stage 3) | ||
In millions of euros | 31 December 2022 | 31 December 2021 |
Opening balance | 4,365 | 5,111 |
Transfer to Stage 3 | 1,089 | 1,313 |
Transfer to Stage 1 or Stage 2 | (336) | (598) |
Amounts Written offs | (293) | (269) |
Other changes | (489) | (1,192) |
Closing balance | 4,336 | 4,365 |
n millions of euros | 31 December 2022 | 31 December 2021 |
Deposits from credit institutions | 46,295 | 56,610 |
On demand accounts | 1,702 | 1,478 |
| Interbank borrowings | 43,021 | 51,100 |
Repurchase agreements | 1,572 | 4,032 |
Deposits from customers | 212,692 | 199,037 |
On demand deposits | 94,358 | 97,120 |
Savings accounts | 88,837 | 84,934 |
Term accounts and short-term notes | 29,443 | 16,983 |
Repurchase agreements | 54 | - |
In millions of euros | 31 December 2022 | 31 December 2021 |
Negotiable certificates of deposit and other debt securities | 9,950 | 9,342 |
Bond issues | 6,302 | 3,536 |
Total debt securities at amortised cost | 16,252 | 12,878 |
n millions of euros | 31 December 2022 | 31 December 2021 |
Debt securities | 1,713 | 2,097 |
Subordinated debt | 675 | 931 |
Total debt securities and subordinated debt at fair value through profit or loss | 2,388 | 3,028 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Redeemable subordinated debt | 2,283 | 2,296 |
Undated subordinated debt | - | - |
Total subordinated debt measured at amortised cost | 2,283 | 2,296 |
n millions of euros | 31 December 2022 | 31 December 2021 |
Current taxes | 121 | 94 |
Deferred taxes | 1,120 | 1,248 |
Current and deferred tax assets | 1,241 | 1,342 |
Current taxes | 301 | 138 |
Deferred taxes | 782 | 630 |
Current and deferred tax liabilities | 1,083 | 768 |
| In millions of euros | ||||||
Financial instruments | (87) | 49 | 64 | (8) | 1 | 19 |
Provisions for employee benefit obligations | 101 | (28) | - | 69 | (22) | 120 |
Unrealised finance lease reserve | (165) | (43) | - | - | (4) | (212) |
Credit risk impairment | 510 | 28 | - | - | (4) | 534 |
Tax loss carryforwards | 625 | (205) | - | - | 2 | 422 |
Other items | (366) | (158) | - | - | (21) | (545) |
Net deferred taxes | 618 | (357) | 64 | 61 | (48) | 338 |
Deferred tax assets | 1,248 | 1,120 | ||||
Deferred tax liabilities | 630 | 782 |
n millions of euros | 31 December 2022 | 31 December 2021 |
Guarantee deposits and bank guarantees paid | 4,437 | 2,478 |
Collection accounts | 74 | 53 |
Accrued income and prepaid expenses | 1,188 | 971 |
Other debtors and miscellaneous assets | 5,768 | 5,686 |
Total accrued income and other assets | 11,467 | 9,188 |
Guarantee deposits received | 2,262 | 840 |
Collection accounts | 567 | 438 |
Accrued expense and deferred income | 2,191 | 1,880 |
Lease liabilities | 291 | 287 |
Other creditors and miscellaneous liabilities | 6,094 | 4,567 |
Total accrued expense and other liabilities | 11,405 | 8,012 |
122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
| 31 December | 31 December | |||||||
| Year to 31 Dec. 2022 | 2022 | Year to 31 Dec. 2021 | 2021 | |||||
| In millions of euros | ||||||||
Joint ventures | 13 | 119 | 132 | 134 | 15 | 30 | 45 | 115 |
| Associates | 279 | (1,216) | (937) | 2,438 | 307 | (34) | 273 | 3,694 |
Total equity-method entities | 292 | (1,097) | (805) | 2,572 | 322 | (4) | 318 | 3,809 |
31 December 2022 | 31 December 2021 | |||||
| Equity- | Equity- | |||||
| Country of | method | method | ||||
| In millions of euros | registration | Activity | Interest % | investments | Interest % | investments |
| Joint ventures | ||||||
| bpost bank | Belgium | Retail banking | 100% | - | 50% | 111 |
| Associates | ||||||
AG Insurance | Belgium | Insurance | 25% | 744 | 25% | 1,851 |
BNP Paribas Asset Management | France | Asset management | 30.9% | 854 | 30.9% | 960 |
BNPP Bank Polska | Poland | Retail banking | 24.1% | 572 | 24.1% | 597 |
123
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Total net income | 592 | 586 |
Changes in assets and liabilities recognised directly in equity | (4,458) | 59 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Total assets | 73,688 | 82,056 |
Total liabilities | 71,091 | 75,028 |
Net assets of the equity associate | 2,597 | 7,028 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Total net income | 240 | 135 |
Changes in assets and liabilities recognised directly in equity | (9) | (28) |
In millions of euros | 31 December 2022 | 31 December 2021 |
Total assets | 2,934 | 3,175 |
Total liabilities | 2,201 | 2,112 |
Net assets of the equity associate | 733 | 1,063 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Total net income | 76 | 43 |
Changes in assets and liabilities recognised directly in equity | (115) | (190) |
In millions of euros | 31 December 2022 | 31 December 2021 |
Total assets | 31,116 | 27,472 |
Total liabilities | 28,800 | 25,072 |
Net assets of the equity associate | 2,316 | 2,400 |
| 31 December 2022 | |||
| BNP Paribas Asset | |||
| In millions of euros | Management | BNP Paribas Bank Polska SA | AG Insurance |
| Cost of capital | |||
Adverse change (+10 basis points) | (15) | (8) | (28) |
Positive change (-10 basis points) | 15 | 8 | 28 |
| Cost/income ratio | |||
Adverse change (+1%) | (21) | (15) | - |
Positive change (-1%) | 21 | 15 | - |
| Cost of risk | |||
Adverse change (+5%) | - | (5) | - |
Positive change (-5%) | - | 5 | - |
| Long-term growth rate | |||
Adverse change (-50 basis points) | (47) | (13) | (100) |
Positive change (+50 basis points) | 53 | 14 | 115 |
31 December 2022 | 31 December 2021 | |||||
| Accumulated | Accumulated | |||||
| depreciation, | depreciation, | |||||
| Gross | amortisation | Carrying | Gross | amortisation | Carrying | |
| In millions of euros | value | and impairment | amount | value | and impairment | amount |
Investment property | 260 | (128) | 132 | 291 | (136) | 155 |
Land and buildings | 2,812 | (1,529) | 1,283 | 3,043 | (1,702) | 1,341 |
Equipment, furniture and fixtures | 707 | (519) | 188 | 708 | (528) | 180 |
Plant and equipment leased as lessor under operating leases | 38,360 | (10,680) | 27,680 | 33,588 | (9,317) | 24,271 |
Other property, plant and equipment | 481 | (183) | 298 | 378 | (181) | 197 |
Property, plant and equipment | 42,360 | (12,911) | 29,449 | 37,717 | (11,728) | 25,989 |
of which right of use | 722 | (419) | 303 | 793 | (523) | 270 |
Purchased software | 307 | (235) | 72 | 230 | (185) | 45 |
Internally-developed software | 1,127 | (753) | 374 | 926 | (607) | 319 |
Other intangible assets | 95 | (73) | 22 | 53 | (27) | 26 |
Intangible assets | 1,529 | (1,061) | 468 | 1,209 | (819) | 390 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Future minimum lease payments receivable under non-cancellable leases | 8,205 | 7,762 |
Payments receivable within 1 year | 3,609 | 3,369 |
Payments receivable after 1 year but within 5 years | 4,570 | 4,341 |
Payments receivable beyond 5 years | 26 | 52 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Carrying amount at start of period | 767 | 722 |
Acquisitions | 96 | 31 |
Divestments | (4) | - |
Impairment recognised during the period | - | - |
Exchange rate adjustments | (13) | 13 |
Other movements | 2 | 1 |
Carrying amount at end of period | 848 | 767 |
Gross value | 986 | 919 |
Accumulated impairment recognised at the end of period | (138) | (152) |
| Impairment recognised | ||||||
| Carrying amount | during the period | Acquisitions of the period | ||||
| 31 December | 31 December | Year to 31 | Year to 31 | Year to 31 | Year to 31 | |
| In millions of euros | 2022 | 2021 | Dec. 2022 | Dec. 2021 | Dec. 2022 | Dec. 2021 |
AlphaCredit | 22 | 22 | - | - | - | - |
Axepta | 28 | 31 | - | - | - | 31 |
Factoring | 6 | 6 | - | - | - | - |
BNP Paribas Leasing Solutions | 146 | 148 | - | - | - | - |
Wealth Management Luxemburg | 38 | 38 | - | - | - | - |
Arval | 608 | 522 | - | - | 96 | - |
Total goodwill | 848 | 767 | - | - | 96 | 31 |
Axepta | |||||
| In millions of euros | ||||||
Provisions for employee benefits | 3,500 | 157 | (331) | (322) | 5 | 3,009 |
of which post-employment benefits (Note 6.b) | 3,133 | 129 | (255) | (293) | 7 | 2,721 |
of which post-employment healthcare benefits (Note 6.b) | 91 | 2 | (2) | (29) | - | 62 |
of which provision for other long-term benefits (Note 6.c) | 74 | 17 | (19) | - | (1) | 71 |
| of which provision for voluntary departure, early retirement | 189 | 1 | (50) | - | (1) | 139 |
| plans, and headcount adaptation plan (Note 6.d) | ||||||
of which provision for share-based payment | 13 | 8 | (5) | - | - | 16 |
Provisions for home savings accounts and plans | - | - | - | - | - | - |
Provisions for credit commitments | 272 | - | - | - | 11 | 283 |
Provisions for litigation | 58 | (5) | (16) | - | (2) | 35 |
Other provisions for contingencies and charges | 379 | 131 | (65) | - | 10 | 455 |
Total provisions for contingencies and charges | 4,209 | 283 | (412) | (322) | 24 | 3,782 |
| 31 December 2022 | ||||||
| In millions of euros | ||||||
| Assets | ||||||
Financial instruments at fair value through profit or loss | 19,962 | (1,148) | 18,814 | (11,337) | (1,767) | 5,710 |
Securities | 1,376 | - | 1,376 | - | - | 1,376 |
Loans and repurchase agreements | 3,706 | (1,148) | 2,558 | (865) | (1,010) | 683 |
| Derivative financial instruments (including derivatives | 14,880 | - | 14,880 | (10,472) | (757) | 3,651 |
| used for hedging purposes) | ||||||
Financial assets at amortised cost | 241,156 | - | 241,156 | (968) | (1,131) | 239,057 |
of which repurchase agreements | 2,865 | - | 2,865 | (968) | (1,131) | 766 |
Accrued income and other assets | 11,467 | - | 11,467 | - | (896) | 10,571 |
of which guarantee deposits paid | 4,437 | - | 4,437 | - | (896) | 3,541 |
Other assets not subject to offsetting | 78,955 | - | 78,955 | - | - | 78,955 |
Total assets | 351,540 | (1,148) | 350,392 | (12,305) | (3,794) | 334,293 |
| 31 December 2022 | ||||||
| In millions of euros | ||||||
| Liabilities | ||||||
Financial instruments at fair value through profit or loss | 29,360 | (1,148) | 28,212 | (11,981) | (5,384) | 10,847 |
Securities | 603 | - | 603 | - | - | 603 |
Deposits and repurchase agreements | 8,710 | (1,148) | 7,562 | (1,509) | (4,773) | 1,280 |
Issued debt securities | 2,388 | - | 2,388 | - | - | 2,388 |
| Derivative financial instruments (including derivatives | 17,659 | - | 17,659 | (10,472) | (611) | 6,576 |
| used for hedging purposes) | ||||||
Financial liabilities at amortised cost | 258,986 | - | 258,986 | (324) | (1,026) | 257,636 |
of which repurchase agreements | 1,626 | - | 1,626 | (324) | (1,026) | 276 |
Accrued expense and other liabilities | 11,405 | - | 11,405 | - | (793) | 10,612 |
of which guarantee deposits received | 2,262 | - | 2,262 | - | (793) | 1,469 |
Other liabilities not subject to offsetting | 20,738 | - | 20,738 | - | - | 20,738 |
Total liabilities | 320,489 | (1,148) | 319,341 | (12,305) | (7,203) | 299,833 |
| 31 December 2021 | ||||||
| In millions of euros | ||||||
| Assets | ||||||
Financial instruments at fair value through profit or loss | 17,391 | (1,775) | 15,616 | (7,662) | (2,392) | 5,562 |
Securities | 1,317 | - | 1,317 | - | - | 1,317 |
Loans and repurchase agreements | 6,057 | (1,775) | 4,282 | (1,933) | (2,074) | 275 |
| Derivative financial instruments (including derivatives | 10,017 | - | 10,017 | (5,729) | (318) | 3,970 |
| used for hedging purposes) | ||||||
Financial assets at amortised cost | 213,208 | - | 213,208 | (438) | (470) | 212,300 |
of which repurchase agreements | 971 | - | 971 | (438) | (470) | 63 |
Accrued income and other assets | 9,188 | - | 9,188 | - | (1,392) | 7,796 |
of which guarantee deposits paid | 2,477 | - | 2,477 | - | (1,392) | 1,085 |
Other assets not subject to offsetting | 103,636 | - | 103,636 | - | - | 103,636 |
Total assets | 343,423 | (1,775) | 341,648 | (8,100) | (4,254) | 329,294 |
| 31 December 2021 | ||||||
| In millions of euros | ||||||
| Liabilities | ||||||
Financial instruments at fair value through profit or loss | 27,362 | (1,775) | 25,587 | (7,541) | (11,793) | 6,253 |
Securities | 159 | - | 159 | - | - | 159 |
Deposits and repurchase agreements | 14,835 | (1,775) | 13,060 | (1,812) | (10,495) | 753 |
Issued debt securities | 3,028 | - | 3,028 | - | - | 3,028 |
| Derivative financial instruments (including derivatives | 9,340 | - | 9,340 | (5,729) | (1,298) | 2,313 |
| used for hedging purposes) | ||||||
Financial liabilities at amortised cost | 255,647 | - | 255,647 | (559) | (3,240) | 251,848 |
of which repurchase agreements | 4,032 | - | 4,032 | (559) | (3,240) | 233 |
Accrued expense and other liabilities | 8,012 | - | 8,012 | - | (213) | 7,799 |
of which guarantee deposits received | 840 | - | 840 | - | (213) | 627 |
Other liabilities not subject to offsetting | 21,205 | - | 21,205 | - | - | 21,205 |
Total liabilities | 312,226 | (1,775) | 310,451 | (8,100) | (15,246) | 287,105 |
31 December 2022 | 31 December 2021 | |||
| Carrying amount | Carrying amount | Carrying amount | Carrying amount | |
| of transferred | of associated | of transferred | of associated | |
| In millions of euros | assets | liabilities | assets | liabilities |
| Securities lending operations | ||||
| Financial instruments at fair value through profit | 42 | - | - | - |
| or loss | ||||
Financial assets at amortised cost | 2,777 | - | 3,316 | - |
Financial assets at fair value through equity | - | - | 97 | - |
| Repurchase agreements | ||||
| Financial instruments at fair value through profit | 176 | 176 | 71 | 71 |
| or loss | ||||
Financial assets at amortised cost | 4,159 | 4,159 | 6,280 | 6,280 |
Financial assets at fair value through equity | 202 | 202 | 1,622 | 1,622 |
Total | 7,356 | 4,537 | 11,386 | 7,973 |
| 31 December 2022 | |||||
| Carrying amount | Carrying amount | Fair value of | Fair value of | ||
| of transferred | of associated | transferred | associated | ||
| In millions of euros | assets | liabilities | assets | liabilities | Net position |
| Securitisation | |||||
Financial instruments at fair value through profit or loss | - | - | - | - | - |
Financial assets at amortised cost | 31,969 | 1,655 | 29,305 | 1,615 | 27,690 |
Financial assets at fair value through equity | - | - | - | - | - |
Total | 31,969 | 1,655 | 29,305 | 1,615 | 27,690 |
| 31 December 2021 | |||||
| Carrying amount | Carrying amount | Fair value of | Fair value of | ||
| of transferred | of associated | transferred | associated | ||
| In millions of euros | assets | liabilities | assets | liabilities | Net position |
| Securitisation | |||||
Financial instruments at fair value through profit or loss | - | - | - | - | - |
Financial assets at amortised cost | 31,862 | 1,655 | 32,864 | 1,639 | 31,225 |
Financial assets at fair value through equity | - | - | - | - | - |
Total | 31,862 | 1,655 | 32,864 | 1,639 | 31,225 |
In millions of euros | 31 December 2022 | 31 December 2021 |
| Financing commitments given | ||
- to credit institutions | 231 | 193 |
- to customers | 52,726 | 51,727 |
Confirmed financing commitments | 41,107 | 40,275 |
Other commitments given to customers | 11,619 | 11,452 |
Total financing commitments given | 52,957 | 51,920 |
of which Stage 1 | 48,328 | 45,947 |
of which Stage 2 | 4,521 | 5,814 |
of which Stage 3 | 108 | 159 |
| Financing commitments received | ||
- from credit institutions | 6,537 | 3,053 |
- from customers | 199 | 209 |
Total financing commitments received | 6,736 | 3,262 |
n millions of euros | 31 December 2022 | 31 December 2021 |
| Guarantee commitments given | ||
- to credit institutions | 2,488 | 2,665 |
- to customers | 15,685 | 15,795 |
Property guarantees | - | - |
Sureties provided to tax and other authorities, other sureties | 12,334 | 12,648 |
Other guarantees | 3,351 | 3,147 |
Total guarantee commitments given | 18,173 | 18,460 |
of which Stage 1 | 15,647 | 15,912 |
of which Stage 2 | 2,327 | 2,298 |
of which Stage 3 | 199 | 250 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Securities to be delivered | 409 | 209 |
Securities to be received | 460 | 181 |
In millions of euros | 31 December 2022 | 31 December 2021 |
| Financial instruments (negotiable securities and private receivables) lodged with central | 24,301 | 30,107 |
| banks and eligible for use at any time as collateral for refinancing transactions after haircut | ||
Used as collateral with central banks | 18,303 | 28,138 |
Available for refinancing transactions | 5,998 | 1,969 |
Securities sold under repurchase agreements | 10,212 | 18,874 |
Other financial assets pledged as collateral for transactions with credit institutions, financial customers | 20,437 | 22,038 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Financial instruments received as collateral (excluding repurchase agreements) | 6,364 | 9,416 |
of which instruments that BNP Paribas Fortis is authorised to sell and reuse as collateral | 1,028 | 962 |
Securities received under repurchase agreements | 6,341 | 6,872 |
136
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Fixed and variable remuneration, incentive bonuses and profit-sharing | (1,973) | (1,806) |
Employee benefit expense | (604) | (583) |
Payroll taxes | (14) | (13) |
Total salary and employee benefit expenses | (2,591) | (2,402) |
| In millions of | |||||||||||
| euros, at 31 | |||||||||||
| December 2022 | |||||||||||
Belgium | 2,664 | - | 2,664 | (50) | (2,394) | - | 220 | (2,394) | - | (2,394) | 2,614 |
United Kingdom | 135 | - | 135 | (177) | - | - | (42) | (42) | (42) | - | - |
Turkey | 139 | 63 | 202 | (295) | - | 157 | 64 | - | - | - | 64 |
Others | 142 | 29 | 171 | (133) | (2) | - | 36 | (7) | (5) | (2) | 43 |
TOTAL | 3,080 | 92 | 3,172 | (655) | (2,396) | 157 | 278 | (2,443) | (47) | (2,396) | 2,721 |
Belgium | 3,095 | - | 3,095 | (66) | (2,930) | - | 99 | (2,930) | - | (2,930) | 3,029 |
United Kingdom | 221 | - | 221 | (288) | - | - | (67) | (67) | (67) | - | - |
Turkey | 134 | 32 | 166 | (238) | - | 104 | 32 | - | - | - | 32 |
Others | 187 | 46 | 233 | (162) | (1) | - | 70 | (2) | (1) | (1) | 72 |
TOTAL | 3,637 | 78 | 3,715 | (754) | (2,931) | 104 | 134 | (2,999) | (68) | (2,931) | 3,133 |
n millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Present value of defined-benefit obligation at start of period | 3,715 | 3,807 |
Current service cost | 121 | 126 |
Interest cost | 35 | 18 |
Past service costs | - | - |
Settlements | - | 1 |
Actuarial (gains)/losses on change in demographic assumptions | 1 | (3) |
Actuarial (gains)/losses on change in financial assumptions | (719) | (73) |
Actuarial (gains)/losses on experience gaps | 343 | 148 |
Actual employee contributions | 10 | 10 |
Benefits paid directly by the employer | (45) | (32) |
Benefits paid from assets/reimbursement rights | (256) | (219) |
Exchange rate (gains)/losses on the obligation | (60) | (84) |
(Gains)/losses on the obligation related to changes in the consolidation scope | 27 | 20 |
Others | - | (4) |
| Present value of defined-benefit obligation at end of period 3,172 3,715 |
Plan assets | Reimbursement rights | |||
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Fair value of assets at start of period | 754 | 805 | 2,931 | 3,049 |
Expected return on assets | 34 | 34 | 13 | 2 |
Settlements | (9) | - | - | - |
Actuarial (gains)/losses on assets | (30) | 41 | (548) | (29) |
Actual employee contributions | - | - | 10 | 10 |
Employer contributions | 16 | 17 | 198 | 98 |
Benefits paid from assets | (25) | (20) | (231) | (199) |
Exchange rate (gains)/losses on assets | (86) | (134) | - | - |
| Gains/(losses) on assets related to changes | 1 | 11 | 23 | - |
| in the consolidation scope | ||||
Other | - | - | - | - |
Fair value of assets at end of period | 655 | 754 | 2,396 | 2,931 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Administration fees | 1 | 1 |
Service costs | 130 | 127 |
Current service cost | 121 | 126 |
Past service cost | - | - |
Settlements | 9 | 1 |
Net financial expense | 5 | 3 |
Interest cost | 35 | 18 |
Interest income on plan assets | (35) | (35) |
Interest income on reimbursement rights | (13) | (2) |
Return on Asset Limitation | 18 | 22 |
Total recognised in ‘Salary and employee benefit expense’ | 136 | 131 |
In millions of euros | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
Other items recognised directly in equity | (271) | (24) |
Actuarial (losses)/gains on plan assets or reimbursement rights | (578) | 12 |
Actuarial (losses)/gains of demographic assumptions on the present value of obligations | (1) | 3 |
Actuarial (losses)/gains of financial assumptions on the present value of obligations | 719 | 73 |
Experience (losses)/gains on obligations | (343) | (148) |
Variation of the effect of asset limitation | (68) | 36 |
31 December 2022 | 31 December 2021 | |||
| Compensation | Compensation | |||
| Discount rate | increase rate | Discount rate | increase rate | |
Eurozone | 1.90% - 3.80% | 2.30% - 5.00% | 0.00% - 1.10% | 1.90% - 3.60% |
United Kingdom | 4.70% | 3.30% | 1.90% | 3.50% |
Turkey | 11.00% | 8.50% | 20.00% | 17.00% |
31 December 2022 | 31 December 2021 | |||
| Change in the present value of obligations | Discount rate | Discount rate | Discount rate | Discount rate |
| In millions of euros | -100bp | +100bp | -100bp | +100bp |
Eurozone | 228 | (196) | 366 | (298) |
United Kingdom | 24 | (19) | 49 | (38) |
Turkey | 13 | (10) | 15 | (12) |
| Change in the present value of obligations | Year to 31 Dec. 2022 | Year to 31 Dec. 2021 |
| In millions of euro | Inflation rate +100bp | Inflation rate +100bp |
Eurozone | 156 | 203 |
United Kingdom | 11 | 23 |
Turkey | 12 | 18 |
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |
| Range of value | Range of value | |
| (existence of several plans | (existence of several plans | |
| in the same country) | in the same country) | |
Belgium | (18.80%) - 6.30% | (5.65%) - 9.00% |
United Kingdom | (33.90%) - 31.80% | 6.60% - 7.50% |
Turkey | 40.80% | 20.60% |
31 December 2022 | 31 December 2021 | |||||||||||
| In % | ||||||||||||
Belgium | 8% | 49% | 20% | 1% | 0% | 22% | 7% | 55% | 15% | 1% | 0% | 22% |
United Kingdom | 8% | 77% | 10% | 0% | 3% | 2% | 9% | 75% | 12% | 0% | 2% | 2% |
Turkey | 8% | 56% | 14% | 2% | 2% | 18% | 0% | 0% | 0% | 3% | 94% | 3% |
Others | 7% | 29% | 19% | 5% | 1% | 39% | 7% | 31% | 16% | 2% | 2% | 42% |
BNP Paribas Fortis | 7% | 51% | 18% | 2% | 3% | 19% | 7% | 52% | 14% | 1% | 6% | 20% |
In millions of euros | 31 December 2022 | 31 December 2021 |
Net provisions for other long-term benefits | 71 | 74 |
Asset recognised in the balance sheet under ‘Other long-term benefits’ | - | - |
Obligation recognised in the balance sheet under ‘Other long-term benefits’ | 71 | 74 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Provision for voluntary departure and early retirement plans, and headcount adaptation plans | 139 | 189 |
| Changes in assets | Changes in assets | |||
| and liabilities | and liabilities | |||
| recognised directly | recognised directly | |||
| Capital and | in equity that will | in equity that may be | ||
| retained | not be reclassified to | reclassified to profit | Minority | |
| In millions of euros | earnings | profit or loss | or loss | interests |
Capital and retained earnings at 1 January 2021 | 6,024 | 45 | (744) | 5,325 |
Other movements | 23 | 23 | ||
Dividends | (291) | (291) | ||
Changes in assets and liabilities recognised directly in equity | 7 | (227) | (220) | |
Net income for 2021 | 468 | 468 | ||
Capital and retained earnings at 31 December 2021 | 6,224 | 52 | (971) | 5,305 |
IAS 29 impact | (24) | 99 | 75 | |
Capital and retained earnings at 1 January 2022 | 6,200 | 52 | (872) | 5,380 |
Other movements | (71) | (71) | ||
Dividends | (225) | (225) | ||
Changes in assets and liabilities recognised directly in equity | (5) | 122 | 117 | |
Net income for 2022 | 464 | 464 | ||
Capital and retained earnings at 31 December 2022 | 6,368 | 47 | (750) | 5,665 |
31 December 2022 | Year to 31 Dec. 2022 | |||||||
| Total assets | ||||||||
| before elimination | ||||||||
| of intra-group | ||||||||
| In millions of euros | transactions | |||||||
Contribution of the entities belonging to the BGL | 61,834 | 1,661 | 544 | 353 | 50% | 355 | 260 | 204 |
Other minority interests | 109 | 321 | 21 | |||||
TOTAL | 464 | 581 | 225 | |||||
31 December 2021 | Year to 31 Dec. 2021 | |||||||
| Total assets | ||||||||
| before elimination | ||||||||
| of intra-group | ||||||||
| In millions of euros | transactions | |||||||
Contribution of the entities belonging to the BGL BNP Paribas Group | 62,032 | 1,606 | 559 | 513 | 50% | 369 | 346 | 284 |
Other minority interests | 99 | (98) | 7 | |||||
TOTAL | 468 | 248 | 291 | |||||
148
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
| entities responsible for managing these funds may receive | |
| management fees and performance commission. Moreover, | |
| BNP Paribas Fortis may hold units in these funds. | |
| Asset financing: BNP Paribas Fortis finances structured enti- | |
| ties that acquire assets (ships, export finance etc.) intended | |
| for lease, and the lease payments received by the structured | |
| entity are used to repay the financing, which is guaranteed | |
s, whose redemption is linked to their performance. | by the asset held by the structured entity. |
| Other: On behalf of its customers, BNP Paribas Fortis may | |
| Funds: BNP Paribas Fortis structures and manages funds | |
| in order to offer investment opportunities to its customers. | |
Dedicated or public funds are offered to institutional and individual customers, and are distributed and commercially | |
| monitored by BNP Paribas Fortis. The BNP Paribas Fortis |
| Interests on BNP Paribas Fortis balance sheet | 31 December 2022 | |||
| In millions of euros | Securitisation | Funds | Others | Total |
| ASSETS | ||||
Financial instruments at fair value through profit and loss | - | - | - | - |
Derivatives used for hedging purposes | - | - | - | - |
Financial assets at fair value through equity | - | - | - | - |
Financial assets at amortised cost | - | - | 8 | 8 |
Other assets | - | - | - | - |
TOTAL ASSETS | - | - | 8 | 8 |
| LIABILITIES | ||||
Financial instruments at fair value through profit and loss | 13 | - | - | 13 |
Derivatives used for hedging purposes | - | - | - | - |
Financial liabilities at amortised cost | 495 | 1 | 6 | 502 |
Other liabilities | 4 | - | - | 4 |
TOTAL LIABILITIES | 512 | 1 | 6 | 519 |
Funded exposure | - | - | 8 | 8 |
Unfunded exposure | - | - | 39 | 39 |
Financing commitments | - | - | 39 | 39 |
Guarantee commitments and derivatives | - | - | - | - |
MAXIMUM EXPOSURE TO LOSS | - | - | 47 | 47 |
| SIZE OF STRUCTURED ENTITIES | 188 | 94 | 552 | 834 |
| I | ||||
152
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
.
| Attendance | ||||
In euros | Fixed fees | fees board* | Total 2022 | |
Herman DAEMS | Chairman | 50,000 | 157,600 | 207,600 |
Michael ANSEEUW | Executive director | 25,000 | 24,000 | 49,000 |
Didier BEAUVOIS | Executive director | 25,000 | 22,000 | 47,000 |
Dirk BOOGMANS | Non-executive director ** | 25,000 | 140,400 | 165,400 |
Antoinette d'ASPREMONT LYNDEN | Non-executive and independent director | 25,000 | 138,200 | 163,200 |
Daniel de CLERCK | Executive director | 25,000 | 26,000 | 51,000 |
Sophie DUTORDOIR | Non-executive director *** | 25,000 | 118,600 | 143,600 |
| Wouter DE PLOEY | Non-executive and independent director | 6,250 | 2,000 | 8,250 |
| (as from 1 December 2022) | ||||
Maxime JADOT | Executive director | 25,000 | 26,000 | 51,000 |
| Anne LECLERCQ | Non-executive and independent director | 18,750 | 66,600 | 85,350 |
| (as from 21 April 2022) | ||||
Piet VAN AKEN | Executive director | 25,000 | 26,000 | 51,000 |
Titia VAN WAEYENBERGE | Non-executive and independent director | 25,000 | 98,600 | 123,600 |
Stéphane VERMEIRE | Executive director | 25,000 | 24,000 | 49,000 |
| Sandra WILIKENS | Executive director | 18,750 | 16,000 | 34,750 |
| (as from 21 April 2022) | 343,750 | 886,000 | 1,229,750 | |
154
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
2022 | 2021 | |||
| Chief Executive | Other Members of | Chief Executive | Other Members of | |
| In euros | Officer | the Executive Board | Officer | the Executive Board |
| Remuneration | ||||
Fixed | 998,513 | 2,453,250 | 998,513 | 2,169,500 |
Cash part of variable | 261,800 | 674,800 | 261,800 | 532,880 |
Deferred part of variable | 252,700 | 365,200 | 252,700 | 365,120 |
| Multi-annual variable compensation | 140,000 | 357,000 | 140,000 | 335,700 |
| Director's fees | 111,016 | 358,266 | 111,016 | 328,516 |
| Benefits in Kind | 3,314 | 21,866 | 3,565 | 23,978 |
| Pension, life insurance and orphan's pension | 317,857 | 325,516 | 298,184 | 276,787 |
Total | 2,085,200 | 4,555,898 | 2,065,778 | 4,032,481 |
31 December 2022 | 31 December 2021 | |||||
| Entities of the | Entities of the | |||||
| BNP Paribas | Joint | BNP Paribas | Joint | |||
| In millions of euros | Group | ventures | Associates | Group | ventures | Associates |
| ASSETS | ||||||
Demand accounts | 4,890 | - | 49 | 2,366 | - | 44 |
Loans | 4,517 | 68 | 669 | 3,544 | 112 | 190 |
Securities | 51 | - | 140 | 100 | - | 97 |
Other assets | 316 | - | 62 | 210 | - | 121 |
Total assets | 9,774 | 68 | 920 | 6,220 | 112 | 452 |
| LIABILITIES | ||||||
Demand accounts | 720 | 115 | 229 | 605 | 122 | 368 |
Other borrowings | 25,920 | - | 811 | 24,854 | 20 | 1,039 |
Other liabilities | 736 | - | 26 | 308 | - | 18 |
Total liabilities | 27,376 | 115 | 1,066 | 25,767 | 142 | 1,425 |
FINANCING COMMITMENTS AND GUARANTEE COMMITMENTS | ||||||
Financing commitments given | 31 | 24 | 61 | 22 | 23 | 70 |
Guarantee commitments given | 5,611 | 64 | 65 | 5,877 | 1,468 | 87 |
Total | 5,642 | 88 | 126 | 5,899 | 1,491 | 157 |
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||||
| Entities of the | Entities of the | |||||
| BNP Paribas | Joint | BNP Paribas | Joint | |||
| In millions of euros | Group | ventures | Associates | Group | ventures | Associates |
Interest income | 371 | 6 | 7 | 315 | 7 | 5 |
Interest expense | (711) | - | (7) | (612) | (3) | (3) |
Commission income | 163 | - | 599 | 140 | 3 | 604 |
Commission expense | (135) | - | (17) | (101) | - | (14) |
Services provided | 77 | - | 43 | 74 | - | 37 |
Services received | (290) | - | (80) | (187) | - | (67) |
Lease income | 42 | - | 10 | 41 | - | 11 |
Total | (483) | 6 | 555 | (330) | 7 | 573 |
Cash and balances at central banks | - | 39,009 | - | - | - | - | - | 39,009 |
| Financial instruments at fair value | 8,358 | - | 1,899 | 464 | 1,231 | 352 | 11 | 12,315 |
| through profit or loss | ||||||||
Derivatives used for hedging purposes | 6,499 | - | - | - | - | - | - | 6,499 |
Remeasurement adjustment on interest- rate risk hedged portfolios | (907) | - | - | - | - | - | - | (907) |
Financial assets at fair value through equity | 133 | - | 186 | 133 | 137 | 1,887 | 3,401 | 5,877 |
Financial assets at amortised cost | - | 7,606 | 11,382 | 16,015 | 31,568 | 85,193 | 84,082 | 235,846 |
Financial assets by maturity | 14,083 | 46,615 | 13,467 | 16,612 | 32,936 | 87,432 | 87,494 | 298,639 |
Deposits from central banks | - | 2,363 | - | - | - | - | - | 2,363 |
Financial instruments at fair value through profit or loss | 7,187 | - | 7,387 | 485 | 1,165 | 1,239 | 1,057 | 18,520 |
Derivatives used for hedging purposes | 9,692 | - | - | - | - | - | - | 9,692 |
Remeasurement adjustment on interest- rate risk hedged portfolios | (5,216) | - | - | - | - | - | - | (5,216) |
Financial liabilities at amortised cost | - | 184,710 | 18,763 | 14,014 | 29,419 | 12,433 | 2,479 | 261,818 |
Financial liabilities by maturity* | 11,663 | 187,073 | 26,150 | 14,499 | 30,584 | 13,672 | 3,536 | 287,177 |
| *The disclosure does not contain information with regard to Arval where the external funding of this activity amounts to EUR 15.7 billion, for which the biggest |
| In millions of euros | ||||||||
| at 31 December 2021 | ||||||||
Cash and balances at central banks | - | 61,263 | - | - | - | - | - | 61,263 |
Financial instruments at fair value through profit or loss | 7,610 | 1 | 3,162 | 425 | 1,807 | 618 | 11 | 13,634 |
Derivatives used for hedging purposes | 1,982 | - | - | - | - | - | - | 1,982 |
Remeasurement adjustment on interest- rate risk hedged portfolios | 1,812 | - | - | - | - | - | - | 1,812 |
Financial assets at fair value through equity | 310 | - | 192 | 341 | 668 | 2,815 | 3,535 | 7,861 |
Financial assets at amortised cost | - | 7,126 | 8,082 | 13,450 | 27,741 | 80,755 | 73,702 | 210,856 |
Financial assets by maturity | 11,714 | 68,390 | 11,436 | 14,216 | 30,216 | 84,188 | 77,248 | 297,408 |
Deposits from central banks | - | 426 | - | - | - | - | - | 426 |
Financial instruments at fair value through profit or loss | 4,526 | - | 11,824 | 489 | 2,451 | 1,458 | 1,625 | 22,373 |
Derivatives used for hedging purposes | 3,215 | - | - | - | - | - | - | 3,215 |
Remeasurement adjustment on interest- rate risk hedged portfolios | 472 | - | - | - | - | - | - | 472 |
Financial liabilities at amortised cost | - | 183,894 | 9,992 | 14,866 | 11,107 | 39,093 | 2,302 | 261,254 |
Financial liabilities by maturity* | 8,213 | 184,320 | 21,816 | 15,355 | 13,558 | 40,551 | 3,927 | 287,740 |
| 31 December 2022 | Estimated fair value | ||||
| In millions of euros | Level 1 | Level 2 | Level 3 | Total | Carrying value |
| FINANCIAL ASSETS | |||||
| Loans and advances to credit institutions and customers | - | 14,835 | 184,127 | 198,962 | 207,301 |
Debt securities at amortised cost (note 4.e) | 11,878 | 637 | 1 | 12,516 | 13,151 |
| FINANCIAL LIABILITIES | |||||
Deposits from credit institutions and customers | - | 259,194 | - | 259,194 | 258,987 |
Debt securities (note 4.h) | - | 16,170 | - | 16,170 | 16,252 |
Subordinated debt (note 4.h) | - | 2,284 | - | 2,284 | 2,283 |
| 31 December 2021 | Estimated fair value | ||||
| In millions of euros | Level 1 | Level 2 | Level 3 | Total | Carrying value |
| FINANCIAL ASSETS | |||||
| Loans and advances to credit institutions and customers | - | 14,961 | 169,931 | 184,892 | 181,541 |
Debt securities at amortised cost (note 4.e) | 10,733 | 866 | 175 | 11,774 | 11,712 |
| FINANCIAL LIABILITIES | |||||
Deposits from credit institutions and customers | - | 255,854 | - | 255,854 | 255,647 |
Debt securities (note 4.h) | - | 12,746 | - | 12,746 | 12,878 |
Subordinated debt (note 4.h) | - | 2,298 | - | 2,298 | 2,296 |
161
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
New entries (E) in the scope of consolidation
E1 Passing qualifying thresholds
E2 Incorporation
E3 Purchase, gain of control or significant influence
Removals (S) from the scope of consolidation
S1 Cessation of activity (including
dissolution, liquidation)
S2 Disposal, loss of control or loss
of significant influence
S3 Entities removed from the scope
because < qualifying thresholds
S4 Merger, Universal transfer of
assets and liabilities
Variance (V) in voting or ownership interest
V1 Additional purchase
V2 Partial disposal
V3 Dilution
V4 Increase in %
Miscellaneous
D1 Consolidation method change not related to
fluctuation in voting or ownership interest
D2 bpost bank was consolidated under equity
method in BNP Paribas Fortis until 31
December 2021. Following the additional
purchase of interest by BNP Paribas Fortis,
bpost bank was fully consolidated.
Prudential scope of consolidation
1 Jointly controlled entities under proportional consolidation for prudential purposes.
2 Entities consolidated under the equity method in the prudential scope.
Full Full consolidation
Equity Equity Method
FV Investment in associates measured at Fair Value through P&L
(s) Structured entities
31 December 2022 | 31 December 2021 | ||||||||||
| Voting | Interest | Voting | Interest | ||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | ||
| Consolidating company | |||||||||||
BNP Paribas Fortis | |||||||||||
| Belgium | |||||||||||
AG Insurance | Belgium | Equity | 25.0% | 25.0% | Equity | 25.0% | 25.0% | ||||
Alpha Crédit SA | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
Arval Belgium NV SA | Belgium | Full | 2 | 100.0% | 99.9% | Full | 2 | 100.0% | 99.9% | ||
Axepta BNPP Benelux | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
Bancontact Payconiq Company | Belgium | Equity | 22.5% | 22.5% | Equity | 22.5% | 22.5% | ||||
Banking Funding Company SA | Belgium | S1 | Equity | 33.5% | 33.5% | ||||||
Batopin | Belgium | Equity | 25.0% | 25.0% | Equity | 25.0% | 25.0% | E1 | |||
Belgian Mobile ID | Belgium | Equity | 12.2% | 12.2% | Equity | 12.2% | 12.2% | V3 | |||
BNP Paribas 3 Step IT (Belgium Branch) | Belgium | Full | 100.0% | 12.8% | Full | 100.0% | 12.8% | ||||
BNP Paribas Fortis Factor NV SA | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
| BNP Paribas Fortis Private Equity Belgium NV | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
| BNP Paribas Fortis Private Equity | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
| Expansion | |||||||||||
| BNP Paribas Fortis Private Equity | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
| Management | |||||||||||
BNP Paribas Lease Group Belgium | Belgium | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
BNPP Fortis Film Finance | Belgium | Full | 99.9% | 99.9% | Full | 99.9% | 99.9% | V4 | |||
bpost bank | Belgium | Full | 100.0% | 100.0% | V1 | Equity | 1 | 50.0% | 50.0% | ||
| D2 | |||||||||||
| CNH Industrial Capital Europe Belgium | Belgium | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
| Branch | |||||||||||
Credissimo | Belgium | Full | 100.0% | 99.9% | Full | 100.0% | 99.9% | ||||
Credissimo Hainaut SA | Belgium | Full | 99.7% | 99.7% | Full | 99.7% | 99.7% | ||||
Crédit pour Habitations Sociales | Belgium | Full | 81.7% | 81.7% | Full | 81.7% | 81.7% | ||||
2 | |||||||||||
2 | |||||||||||
2 | |||||||||||
166
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
New entries (E) in the scope of consolidation
E1 Passing qualifying thresholds
E2 Incorporation
E3 Purchase, gain of control or significant influence
Removals (S) from the scope of consolidation
S1 Cessation of activity (including
dissolution, liquidation)
S2 Disposal, loss of control or loss
of significant influence
S3 Entities removed from the scope
because < qualifying thresholds
S4 Merger, Universal transfer of
assets and liabilities
Variance (V) in voting or ownership interest
V1 Additional purchase
V2 Partial disposal
V3 Dilution
V4 Increase in %
Miscellaneous
D1 Consolidation method change not related to
fluctuation in voting or ownership interest
D2 bpost bank was consolidated under equity
method in BNP Paribas Fortis until 31
December 2021. Following the additional
purchase of interest by BNP Paribas Fortis,
bpost bank was fully consolidated.
Prudential scope of consolidation
1 Jointly controlled entities under proportional consolidation for prudential purposes.
2 Entities consolidated under the equity method in the prudential scope.
Full Full consolidation
Equity Equity Method
FV Investment in associates measured at Fair Value through P&L
(s) Structured entities
31 December 2022 | 31 December 2021 | ||||||||||
| Voting | Interest | Voting | Interest | ||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | ||
| CNH Industrial Capital Europe (Poland | Poland | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
| Branch) | |||||||||||
| CNH Industrial Capital Europe (Germany | Germany | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
| Branch) | |||||||||||
| CNH Industrial Capital Europe (Spain | Spain | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
| Branch) | |||||||||||
Cofiparc | France | Full | 2 | 100.0% | 99.9% | Full | 2 | 100.0% | 99.9% | ||
FCT Pulse France 2022 | France | Full | 2 | 100.0% | 99.9% | E2 | |||||
Fortis Lease | France | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
Fortis Lease Deutschland Gmbh | Germany | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
Fortis Lease Iberia SA | Spain | Full | 100.0% | 41.0% | Full | 100.0% | 41.0% | ||||
Fortis Lease Portugal | Portugal | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
| Fortis Lease Uk Ltd | United | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
| Kingdom | |||||||||||
| Fortis Vastgoedlease B.V. | The | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
| Netherlands | |||||||||||
Greenval Insurance DAC | Ireland | Full | 2 | 100.0% | 99.9% | Full | 2 | 100.0% | 99.9% | ||
| Heffiq Heftruck Verhuur BV | The | Full | 50.1% | 12.5% | Full | 50.1% | 12.5% | ||||
| Netherlands | |||||||||||
JCB Finance | France | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
| JCB Finance Holdings Ltd | United | Full | 50.1% | 12.5% | Full | 50.1% | 12.5% | ||||
| Kingdom | |||||||||||
JCB Finance (Italy Branch) | Italy | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
JCB Finance (Germany Branch) | Germany | Full | 100.0% | 12.5% | Full | 100.0% | 12.5% | ||||
Louveo | France | Full | 2 | 100.0% | 99.9% | Full | 2 | 100.0% | 99.9% | ||
| Manitou Finance Ltd. | United | Full | 51.0% | 12.8% | Full | 51.0% | 12.8% | ||||
| Kingdom | |||||||||||
MGF | France | Full | 51.0% | 12.8% | Full | 51.0% | 12.8% | ||||
MGF (Germany Branch) | Germany | Full | 100.0% | 12.8% | Full | 100.0% | 12.8% | ||||
MGF (Italy Branch) | Italy | Full | 100.0% | 12.8% | Full | 100.0% | 12.8% | ||||
| Personal Car Lease BV | The | Full | 2 | 100.0% | 99.9% | E3 | |||||
| Netherlands | |||||||||||
Public Location Longue Durée | France | Full | 2 | 100.0% | 99.9% | Full | 2 | 100.0% | 99.9% | ||
RD Leasing IFN SA | Romania | S4 | |||||||||
Same Deutz Fahr Finance | France | Full | 100.0% | 25.0% | Full | 100.0% | 25.0% | ||||
TEB Arval Arac Filo Kiralama A.S. | Turkey | Full | 2 | 100.0% | 74.9% | Full | 2 | 100.0% | 74.9% | ||
31 December 2022 | 31 December 2021 | |||||||||
| Voting | Interest | Voting | Interest | |||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | |
Year to 31 Dec. 2022 | Year to 31 Dec. 2021 | |||||||||||
PwC | Others | Total | PwC | Others | Total | |||||||
Excluding tax, in thousands of euros | ||||||||||||
| Audit | ||||||||||||
Statutory audit engagement | 1,921 | 73% | 5,199 | 89% | 7,120 | 84% | 1,869 | 75% | 5,650 | 93% | 7,519 | 88% |
- BNP Paribas Fortis | 1,344 | 51% | 12 | 0% | 1,356 | 16% | 1,296 | 52% | - | 0% | 1,296 | 15% |
- Consolidated subsidiaries | 577 | 22% | 5,187 | 89% | 5,764 | 68% | 573 | 23% | 5,650 | 93% | 6,223 | 73% |
Services other than those required for the statutory audit engagement | 723 | 27% | 666 | 11% | 1,389 | 16% | 628 | 25% | 401 | 7% | 1,029 | 12% |
- BNP Paribas Fortis | 396 | 15% | 14 | 0% | 410 | 4% | 310 | 12% | 14 | 0% | 324 | 4% |
- Consolidated subsidiaries | 327 | 12% | 652 | 11% | 979 | 12% | 318 | 13% | 387 | 7% | 705 | 8% |
TOTAL | 2,644 | 100% | 5,865 | 100% | 8,509 | 100% | 2,497 | 100% | 6,051 | 100% | 8,548 | 100% |
170
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2022
172
RISK MANAGEMENT AND CAPITAL ADEQUACY
INTRODUCTION
The information presented in this chapter reflects the risks carried by BNP Paribas Fortis. It provides
a description of BNP Paribas Fortis’ risk management organisation and a quantitative and qualitative
overview of BNP Paribas Fortis’ risk exposure at year-end 2022.
BNP Paribas Fortis’ risk measures are presented according to the Basel III principles under the
prudential scope of consolidation. These risks, calculated using methods approved by the Belgian
banking supervisor, i.e. the National Bank of Belgium (NBB) and the European banking supervisor, i.e.
the European Central Bank (ECB), are measured and managed as consistently as possible with the BNP
Paribas Group Risk methodologies. A more detailed picture of BNP Paribas Fortis’ risk management
and risk exposure according to Pillar 3 requirements is provided in the ‘Pillar 3 disclosure’.
Further details on the BNP Paribas Group’s approach to the measuring and managing of risks result-
ing from banking activities can be found in the Registration Document and the BNP Paribas Annual
Financial Report 2022.
174
RISK MANAGEMENT AND CAPITAL ADEQUACY
| 31 December 2022 | |
| In millions of euros | Basel III |
| Common Equity Tier 1 (CET1) capital: instruments and reserves | |
Capital instruments and the related share premium accounts | 11,905 |
Retained earnings | 12,491 |
Accumulated other comprehensive income (and other reserves) | (2,654) |
Funds for general banking risk | - |
Minority interests (amount allowed in consolidated CET 1) | 1,651 |
Independently reviewed interim profits net of any foreseeable charge or dividend | - |
COMMON EQUITY TIER 1 (CET1) CAPITAL BEFORE REGULATORY ADJUSTMENTS | 23,393 |
Common Equity Tier 1 (CET1): regulatory adjustments | (2,309) |
COMMON EQUITY TIER 1 (CET1) CAPITAL | 21,084 |
Additional Tier 1 (AT1) capital: instruments | 736 |
Additional Tier 1 (AT1) capital: regulatory adjustments | - |
ADDITIONAL TIER 1 (AT1) CAPITAL | 736 |
TIER 1 CAPITAL (T1 = CET1 + AT1) | 21,820 |
Tier 2 (T2) capital: instruments and provisions | 1,279 |
Tier 2 (T2) capital: regulatory adjustments | (283) |
TIER 2 (T2) CAPITAL | 996 |
TOTAL CAPITAL (TC = T1 + T2) | 22,816 |
In millions of euros | 31 December 2022 | 31 December 2021 |
Common equity Tier 1 Capital (CET1) | 21,084 | 21,704 |
Tier 1 Capital | 21,820 | 22,660 |
Total Capital | 22,816 | 23,734 |
| Risk weighted commitments | ||
Credit risk | 100,365 | 95,451 |
Securitisation | 671 | 1,248 |
Counterparty Risk | 1,059 | 1,689 |
Equity Risk | 11,149 | 12,800 |
Market risk | 1,396 | 1,168 |
Operational risk | 7,880 | 8,528 |
TOTAL RISK WEIGHTED COMMITMENTS | 122,520 | 120,884 |
CET 1 ratio | 17.2% | 18.0% |
Tier 1 ratio | 17.8% | 18.7% |
Total capital ratio | 18.6% | 19.6% |
31 December 2022 | 31 December 2021 | |||||
| Standardised | Standardised | |||||
| IRBA | Approach | Total | IRBA | Approach | Total | |
Central governments and central banks | 47,386 | 7,528 | 54,914 | 72,477 | 6,752 | 79,229 |
Corporates | 131,313 | 22,275 | 153,588 | 124,630 | 16,400 | 141,030 |
Institutions ** | 12,903 | 5,141 | 18,044 | 13,589 | 5,414 | 19,003 |
Retail | 95,696 | 36,331 | 132,027 | 92,840 | 30,188 | 123,028 |
Securitisation positions | 1,940 | 650 | 2,590 | 4,492 | 841 | 5,333 |
Other non-credit-obligation assets *** | - | 4,808 | 4,808 | 548 | 4,035 | 4,583 |
TOTAL EXPOSURE | 289,238 | 76,733 | 365,971 | 308,576 | 63,630 | 372,206 |
31 December 2022 | 31 December 2021 | |||
| In millions of euros | Exposure | % | Exposure | % |
Agriculture, Food, Tobacco | 13,626 | 4% | 13,284 | 4% |
Financial services | 53,677 | 15% | 77,914 | 21% |
Chemicals excluding Pharmaceuticals | 4,114 | 1% | 2,920 | 1% |
Construction | 12,265 | 3% | 10,574 | 3% |
Retailers | 6,447 | 2% | 5,202 | 1% |
Equipment excluding IT | 6,404 | 2% | 5,108 | 1% |
Real estate | 30,037 | 8% | 28,193 | 8% |
Metals & Mining | 6,699 | 2% | 6,520 | 2% |
Wholesale & Trading | 14,197 | 4% | 11,761 | 3% |
Business services | 40,461 | 11% | 38,294 | 10% |
Transportation & Logistics | 9,976 | 3% | 9,610 | 3% |
Utilities (electricity, gas, water, etc.) | 11,965 | 3% | 10,980 | 3% |
Retail | 93,134 | 26% | 91,018 | 25% |
Sovereign & public sector | 21,020 | 6% | 20,512 | 6% |
Other | 39,359 | 11% | 34,984 | 10% |
TOTAL | 363,381 | 100% | 366,874 | 100% |
| 31 December 2022 | ||||||
| Basel III | ||||||
| Central | ||||||
| governments | ||||||
| and central | ||||||
| In millions of euros | banks | Corporates | Institutions | Retail | Total | % |
Europe | 48,671 | 136,210 | 15,625 | 129,366 | 329,872 | 92% |
Belgium | 33,094 | 70,495 | 8,564 | 97,262 | 209,415 | 58% |
Netherlands | 15 | 4,715 | 1,163 | 3,347 | 9,240 | 3% |
Luxembourg | 11,688 | 13,394 | 291 | 9,982 | 35,355 | 10% |
France | 1,031 | 13,690 | 3,786 | 5,201 | 23,708 | 7% |
Other European countries | 2,843 | 33,916 | 1,821 | 13,574 | 52,154 | 14% |
North America | 835 | 3,723 | 537 | 221 | 5,316 | 1% |
Asia & Pacific | 78 | 1,305 | 288 | 106 | 1,777 | 0% |
Rest of the World | 5,330 | 12,349 | 1,595 | 7,142 | 26,416 | 7% |
TOTAL | 54,914 | 153,587 | 18,045 | 136,835 | 363,381 | 100% |
| 31 December 2021 | ||||||
| Basel III | ||||||
| Central | ||||||
| governments | ||||||
| and central | ||||||
| In millions of euros | banks | Corporates | Institutions | Retail | Total | % |
Europe | 74,332 | 126,029 | 16,460 | 120,834 | 337,655 | 92% |
Belgium | 55,241 | 66,928 | 8,548 | 90,557 | 221,274 | 60% |
Netherlands | 226 | 5,226 | 1,215 | 2,326 | 8,993 | 2% |
Luxembourg | 14,528 | 11,382 | 428 | 9,794 | 36,132 | 10% |
France | 961 | 9,666 | 4,328 | 5,163 | 20,118 | 5% |
Other European countries | 3,376 | 32,827 | 1,941 | 12,994 | 51,138 | 14% |
North America | 152 | 3,542 | 548 | 94 | 4,336 | 1% |
Asia & Pacific | 106 | 988 | 329 | 76 | 1,499 | 0% |
Rest of the World | 4,639 | 10,471 | 1,667 | 6,607 | 23,384 | 6% |
TOTAL | 79,229 | 141,030 | 19,004 | 127,611 | 366,874 | 100% |
184
RISK MANAGEMENT AND CAPITAL ADEQUACY
| and implied correlations or other similar parameters. |
| Non-observable factors are those based on working assump- |
| tions such as parameters contained in models or based |
| on statistical or economic analyses, non-ascertainable |
| in the market. |
In the bond portfolios, the credit instruments are valued on the basis of the interest rates and the credit spreads, which are considered as market parameters like interest rates and foreign exchange risk. The risk on the issuer |
RWAs | Capital requirements | |||||
| 31 December | 31 December | 31 December | 31 December | |||
| In millions of euros | 2022 | 2021 | Variation | 2022 | 2021 | Variation |
Internal model | 756 | 879 | (123) | 60 | 71 | (11) |
VAR | 329 | 134 | 195 | 26 | 11 | 15 |
Stressed VAR | 360 | 600 | (240) | 29 | 48 | (19) |
Incremental Risk Charge (IRC) | 67 | 145 | (78) | 5 | 12 | (7) |
Comprehensive Risk Measure (CRM) | - | - | - | - | - | - |
Standardised approach | 640 | 289 | 351 | 51 | 23 | 28 |
Trading book securitisation positions | - | - | - | - | - | - |
MARKET RISK | 1,396 | 1,168 | 228 | 111 | 94 | 17 |
| Banking Book | ||
In millions of euros | 31 December 2022 | 31 December 2021 |
| Eurozone | ||
Belgium | 6,119 | 7,674 |
Italy | 599 | 831 |
Spain | 522 | 706 |
Luxembourg | 335 | 281 |
France | 147 | 143 |
Finland | 64 | 66 |
The Netherlands | 10 | 223 |
Austria | - | 26 |
Germany | - | 36 |
Total eurozone | 7,796 | 9,986 |
| Other countries in European Economic Area (EEA) | ||
Czech Republic | 37 | 48 |
Others | 1 | 1 |
Total other EEA | 38 | 49 |
| Other countries | ||
Turkey | 2,438 | 1,771 |
Others | 31 | 35 |
Total other countries | 2,469 | 1,806 |
TOTAL | 10,303 | 11,841 |
192
RISK MANAGEMENT AND CAPITAL ADEQUACY
REPORT OF THE ACCREDITED
STATUTORY AUDITOR
194
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Statutory auditor’s report to the general shareholders’ meeting of
BNP Paribas Fortis SA/NV on the consolidated accounts for the year
ended 31 december 2022
We present to you our statutory auditor’s report in the context of our statutory audit of the con-
solidated accounts of BNP Paribas Fortis SA/NV (the “Company”) and its subsidiaries (jointly “the
Group”). This report includes our report on the consolidated accounts, as well as the other legal and
regulatory requirements. This forms part of an integrated whole and is indivisible.
We have been appointed as statutory auditor by the general meeting of 23 April 2020, following the
proposal formulated by the board of directors and following the recommendation by the audit com-
mittee and the proposal formulated by the works’ council. Our mandate will expire on the date of the
general meeting which will deliberate on the annual accounts for the year ended 31 December 2022.
We have performed the statutory audit of the Group’s consolidated accounts for 24 consecutive years.
Report on the consolidated accounts
Unqualified opinion
We have performed the statutory audit of the Group’s consolidated accounts, which comprise the profit
and loss account for the year ended 31 December 2022, the statement of net income and change in
assets and liabilities recognised directly in equity, the balance sheet at 31 December 2022, the cash
flow statement for the year ended 31 December 2022, the statement of changes in shareholders’ equity
between 1 January 2021 and 31 December 2022, and notes to the consolidated financial statements,
including a summary of significant accounting policies and other explanatory information, and which
is characterised by a consolidated balance sheet total of EUR 350.392 ‘000.000’ and a consolidated
profit for the year of EUR 3.625 ‘000.000’.
In our opinion, the consolidated accounts give a true and fair view of the Group’s net equity and
consolidated financial position as at 31 December 2022, and of its consolidated financial performance
and its consolidated cash flows for the year then ended, in accordance with International Financial
Reporting Standards as adopted by the European Union and with the legal and regulatory require-
ments applicable in Belgium.
Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable
in Belgium. Furthermore, we have applied the International Standards on Auditing as approved by
the IAASB which are applicable to the year-end and which are not yet approved at the national
level. Our responsibilities under those standards are further described in the “Statutory auditor’s
responsibilities for the audit of the consolidated accounts” section of our report. We have fulfilled
our ethical responsibilities in accordance with the ethical requirements that are relevant to our
audit of the consolidated accounts in Belgium, including the requirements related to independence.
We have obtained from the board of directors and Company officials the explanations and information
necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
195
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated accounts of the current period. These matters were addressed in the
context of our audit of the consolidated accounts as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
Impairment allowances for loans and advances
Description of the Key Audit Matter:
BNP Paribas Fortis SA/NV’s consolidated accounts show loans and advances for an amount of
EUR 228.005 ‘000.000’ at year-end 2022. IFRS 9 imposes an expected loss model of provisioning
and requires credit exposures to be classified according to three stages. Impairment allowances are
posted on all loans and receivables to address an expected loss event that has an impact on the
estimated future cash flows of these loans and receivables.
For defaulted loans, the identification and determination of the recoverable amount are part of an
estimation process which includes, among others, assessing the existence of a default event and of
the financial position of the counterparty, estimating the expected future cash flows and assessing
the value of collateral received.
The determination of the impairment allowances involves judgement in determining assumptions,
methodology, modelling techniques and parameters.
Due to the substantial amount of loans and advances recognized in the balance sheet, of the cost of
risk recognized in the income statement (EUR 328 ‘000.000’), the significant impact of the judgments
applied on the carrying amount of loans and advances and the increased uncertainty inherent to
the Russian invasion of Ukraine and the current macroeconomic environment, auditing the process
described above is considered a Key Audit Matter.
We refer to Notes 4.e and 2.g to the consolidated accounts. In addition, the Board of Directors has
described the process for managing credit risks and for reviewing impairment losses in more detail in
its directors’ report on the consolidated accounts and in the credit risk section in the risk management
and capital adequacy disclosures.
How our audit addressed the Key Audit Matter:
Based on our risk assessment, we have examined the impairment losses and challenged the methodol-
ogy applied as well as the assumptions made by management as described in the preceding paragraph:
We have evaluated the governance process of assessing the stage of credit risk (as defined by IFRS
9) and downgrading, including the continuous re-assessment of the appropriateness of assump-
tions used in the impairment models for determining the loan losses. We have not identified
significant weaknesses impacting the overall effectiveness of the related control environment;
We have tested the design, implementation and operating effectiveness of the key controls over
the models and manual processes for identification of impairment events or significant changes in
credit risk, collateral valuation, estimates of recovery on default and determination of the impair-
ment. We have not identified significant weaknesses on their adequacy and operating effectively;
196
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Together with our experts, and based on our risk assessment, we have audited the underlying
models including the model approval and validation process. We have challenged, the methodolo-
gies applied by using our industry knowledge and experience, focusing on potential changes since
the implementation of IFRS 9 and found those to be in line with our expectations;
We have assessed the appropriateness of impairments on loans on an individual basis: we
verified that a periodic review of the counterparties under surveillance was carried out by the
Company and assessed, on the basis of samples, the assumptions and data used by management
to estimate the impairments.
Finally, we assessed the completeness and accuracy of the disclosures and determined whether the
disclosures are in compliance with the requirements of the IFRS as adopted by the European Union.
Valuation of goodwill, of goodwill embedded in investments consolidated by
applying the equity-method and of options to minority shareholders of consoli-
dated entities
Description of the Key Audit Matter:
The Company’s 31 December 2022 consolidated accounts show a ‘Goodwill’ caption amounting
to EUR 848 ‘000.000’, and an ‘Equity-method investments’ caption of EUR 2.572 ‘000.000’. The
consolidated accounts moreover contain the fair value of written put options to minority sharehold-
ers of consolidated entities, under caption ‘Minority interests’, for an amount of EUR 135 ‘000.000’.
These intangible and financial assets and the embedded goodwill included in the equity-method
consolidated investments have arisen as a result of the acquisitions of some of BNP Paribas Fortis
SA/NV’s (direct and indirect) subsidiaries in the current and previous accounting periods. The IFRS
standards prescribe that goodwill is subject to an annual impairment assessment, and that written
options be valued at the intrinsic value of the financial instrument.
We identified these intangible and financial assets and the embedded goodwill included in the
equity-method consolidated investments as a Key Audit Matter due to the significance of the balance
and because the impairment assessment requires significant judgement of management with regards
to the valuation methodology applied and the underlying assumptions used, mainly those relating to
the ability to generate future free cash flows, and to the discount factor applied to these cash flows,
taking into account the appropriate risk factors.
We refer to the consolidated accounts, including the Note 4.m ‘Goodwill’, the Note 4.k ‘Equity-method
investments’ and the Note 7.c ‘Minority Interests’.
197
REPORT OF THE ACCREDITED STATUTORY AUDITOR
How our audit addressed the Key Audit Matter:
We focused our audit effort on (i) the valuation models used by the Company for the valuation of the
underlying business, (ii) the appropriateness of the discount rates and terminal growth rates used
in the models and (iii) the future cash flow forecasts:
Together with our valuation experts, we have assessed the appropriateness of the valuation
methods used by management and discussed the underlying hypotheses to the use of these
models with management. We found the models used to be appropriate, in the circumstances;
We have evaluated the governance process over the future cash flow forecasts used for the
valuations, i.e. the development and approval of the financial plan and management’s annual
comparison of previous forecasts to actual performance. We found that management had followed
their process for drawing up future cash flow forecasts, which was subject to timely oversight
and challenge. We discussed with management the impact of regulatory and business evolutions
which have the potential to significantly affect the future cash flows of these entities on which
goodwill had been recognized, and found that these had been considered in drawing up the
future cash flows;
Based on our risk assessment, together with our valuation experts, we challenged the main
management’s assumptions in their forecasts such as the long-term growth rates and the discount
rates.We challenged management on the adequacy of their sensitivity calculations. We found the
assumptions to be consistent and in line with our expectations;
Finally, we assessed the completeness and accuracy of the disclosures and assessed the compli-
ance of the disclosures with the requirements of the IFRS as adopted by the European Union.
Estimation uncertainty with respect to the valuation of financial instruments
accounted for at fair value
Description of the Key Audit Matter:
The current economic conditions impact the fair value measurements of financial instruments. In
addition, the Russian invasion of Ukraine brought additional uncertainty and volatility to the financial
markets. Valuation techniques and models used for certain financial instruments are inherently
subjective and involve various assumptions regarding pricing. The use of different valuation techniques
and assumptions could produce significantly different estimates of fair value. Furthermore, market
value adjustments (reserves) are recognized on all positions measured at fair value with fair value
changes reported in the income statement or in equity.
The IFRS require the use of fair value for the determination of the carrying amount of many assets and
liabilities, and generally require the disclosure of the fair value of those items not valued at fair value.
As the use of different assumptions could produce different estimates of fair value and considering
the significance of fair values in the determination of the carrying amount of certain balance sheet
captions and of the result, we consider this a Key Audit Matter.
Please refer to Notes 4.d ‘Measurement of the fair value of financial instruments’ and 1 ‘Summary
of significant accounting policies applied by BNP Paribas Fortis’.
198
REPORT OF THE ACCREDITED STATUTORY AUDITOR
How our audit addressed the key audit matter:
We obtained an understanding of the internal control framework related to the valuation of financial
instruments, including price testing, model validation and value adjustments (value allowances)
methodologies. On a cyclical basis, we tested the design and operating effectiveness of those controls
we assessed to be key for our audit:
We assessed and challenged the appropriateness of the model validation methodology with the
assistance of our valuation experts and we performed a recalculation of the fair valuation on a sample
basis. This includes the assessment of market data, inputs and key assumptions as critical factors
used in the fair value models, based on our experience and market practice.
Finally, we assessed the completeness and accuracy of the disclosures relating to the fair values of
these financial instruments to determine compliance with the disclosure requirements of the IFRS
as adopted by the European Union.
Responsibilities of the board of directors for the preparation of the
consolidated accounts
The board of directors is responsible for the preparation of consolidated accounts that give a true and
fair view in accordance with International Financial Reporting Standards as adopted by the European
Union and with the legal and regulatory requirements applicable in Belgium, and for such internal
control as the board of directors determine is necessary to enable the preparation of consolidated
accounts that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated accounts, the board of directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the board of directors either intends to liquidate
the Group or to cease operations, or has no realistic alternative but to do so.
Statutory auditor’s responsibilities for the audit of the consolidated
accounts
Our objectives are to obtain reasonable assurance about whether the consolidated accounts as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs will always detect a material misstatement when
it exists. Misstatements can arise from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these consolidated accounts.
In performing our audit, we comply with the legal, regulatory and normative framework applicable to
the audit of the consolidated accounts in Belgium. A statutory audit does not provide any assurance
as to the Group’s future viability nor as to the efficiency or effectiveness of the board of directors’
current or future business management at Group level. Our responsibilities in respect of the use of
the going concern basis of accounting by the board of directors are described below.
199
REPORT OF THE ACCREDITED STATUTORY AUDITOR
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain profes-
sional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the consolidated accounts, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from
error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the
override of internal control;
Obtain an understanding of internal control relevant to the audit in order to design audit proce-
dures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the Group’s internal control;
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the board of directors;
Conclude on the appropriateness of the board of directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our statutory auditor’s report to the related disclosures in the consolidated accounts
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our statutory auditor’s report. However, future events
or conditions may cause the Group to cease to continue as a going concern;
Evaluate the overall presentation, structure and content of the consolidated accounts, including
the disclosures, and whether the consolidated accounts represent the underlying transactions
and events in a manner that achieves fair presentation;
Obtain sufficient and appropriate audit evidence regarding the financial information of the enti-
ties or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Group audit.
We remain solely responsible for our audit opinion.
We communicate with the audit committee regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with the audit committee, we determine those matters that were
of most significance in the audit of the consolidated accounts of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter.
200
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Other legal and regulatory requirements
Responsibilities of the board of directors
The board of directors is responsible for the preparation and the content of the directors’ report on
the consolidated accounts and the other information included in the annual report on the consoli-
dated accounts.
Statutory auditor’s responsibilities
In the context of our engagement and in accordance with the Belgian standard which is complemen-
tary to the International Standards on Auditing (ISAs) as applicable in Belgium, our responsibility is
to verify, in all material respects, the directors’ report on the consolidated accounts and the other
information included in the annual report on the consolidated accounts and to report on these matters.
Aspects related to the directors’ report on the consolidated accounts
and to the other information included in the annual report on the
consolidated accounts
In our opinion, after having performed specific procedures in relation to the directors’ report on the
consolidated accounts, this directors’ report is consistent with the consolidated accounts for the year
under audit and is prepared in accordance with article 3:32 of the Companies’ and Associations’ Code.
In the context of our audit of the consolidated accounts, we are also responsible for considering,
in particular based on the knowledge acquired resulting from the audit, whether the directors’
report on the consolidated accounts and the other information included in the annual report on the
consolidated accounts, containing:
The Statement of the Board of Directors;
The Risk Management and Capital Adequacy chapter; and
The other information chapter.
are materially misstated or contains information which is inadequately disclosed or otherwise
misleading. In light of the procedures we have performed, there are no material misstatements we
have to report to you.
Statement related to independence
Our registered audit firm and our network did not provide services which are incompatible with the
statutory audit of the consolidated accounts, and our registered audit firm remained independent
of the Group in the course of our mandate.
The fees for additional services which are compatible with the statutory audit of the consolidated
accounts referred to in article 3:65 of the Companies’ and Associations’ Code are correctly disclosed
and itemized in the notes to the consolidated accounts.
201
REPORT OF THE ACCREDITED STATUTORY AUDITOR
European Uniform Electronic Format (ESEF)
We have also verified, in accordance with the draft standard on the verification of the compliance
of the financial statements with the European Uniform Electronic Format (hereinafter “ESEF”), the
compliance of the ESEF format with the regulatory technical standards established by the European
Delegate Regulation No. 2019/815 of 17 December 2018 (hereinafter: “Delegated Regulation”).
The board of directors is responsible for the preparation, in accordance with ESEF requirements, of
the consolidated financial statements in the form of an electronic file in ESEF format (hereinafter
“digital consolidated financial statements”) included in the annual financial report.
Our responsibility is to obtain sufficient appropriate evidence to conclude that the format and marking
language of the digital consolidated financial statements comply in all material respects with the
ESEF requirements under the Delegated Regulation.
Based on the work we have performed, we believe that the format of and marking of information in
the official version of the digital consolidated financial statements included in the annual financial
report of the Group per 31 December 2022 comply in all material respects with the ESEF requirements
under the Delegated Regulation.
Other statements
This report is consistent with the additional report to the audit committee referred to in article 11
of the Regulation (EU) N° 537/2014.
Diegem, 27 March 2023
The statutory auditor
PwC Reviseurs d’Entreprises SRL / PwC Bedrijfsrevisoren BV
Represented by
Jeroen Bockaert
Réviseur d’Entreprises / Bedrijfsrevisor
202
REPORT OF THE ACCREDITED STATUTORY AUDITOR
BNP PARIBAS FORTIS
ANNUAL REPORT 2022
(NON-CONSOLIDATED)
204
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
REPORT OF THE BOARD OF DIRECTORS
In conformity with Article 3:32 of the Belgian companies’ and associations’ Code and to avoid repetition, BNP Paribas Fortis
has combined the non-consolidated report and the consolidated report of the Board of Directors. The consolidated report of
the Board of Directors can be found at the beginning of this annual report.
Comments on the evolution of the balance sheet
The total balance sheet as at 31 December 2022 amounted
to 239.2 billion euros, down by (13.6) billion euros or 5 %
compared with 31 December 2021. As at 31 December 2022,
the yield on assets was 1%. BNP Paribas Fortis has 2 foreign
branches, located in New York and Madrid.
Assets
Cash in hand, balances with central banks and giro offices
(Heading I) and Amounts receivable from credit institutions
(Heading III) decreased by (24.2) billion euros and stood at
31.9 billion euros. The overall lower position at the National
Bank of Belgium is, among others, linked to the partial reim-
bursement of the TLTRO III (Targeted Longer-Term Refinancing
Operations)
Amounts receivable from customers (Heading IV) stood at
141.2 billion euros as at 31 December 2022, up by 11.8 billion
euros compared to 31 December 2021.
In Belgium, the amount of term loans increased by 8.3 billion
euros, spread over different type of loans such as investment
loans to companies and funding given to subsidiaries. The
mortgage loans continued to increase by 2.1 billion euros.
The term loans in the foreign branches of BNP Paribas Fortis
stayed stable at 0.3 billion euros and are only related to the
activity in the BNP Paribas Fortis’ branch in New York.
Bonds and other fixed-income securities (Heading V) stood
at 43.2 billion euros as at 31 December 2022, down by
(1.8) billion euros compared with 45.0 billion euros as at
31 December 2021.
The amount of 43.2 billion euros consists mostly of bonds
issued by public bodies (8.1 billion euros, down by (1.9) billion
euros compared with 2021 mainly following reimbursements),
by ‘Special Purpose Vehicles’ (31.3 billion euros, the same
amount as last year) and by other issuers (3.7 billion euros,
the same amount as last year).
Financial fixed assets (Heading VII) amounted to 9.2 billion
euros as at 31 December 2022, in line with the situation at
the end of 2021.
Formation expenses and intangible fixed assets (Heading VIII)
amounted to 7 million euros as at 31 December 2022, down
by (22) million euros compared with 2021.
Tangible fixed assets (Heading IX) amounted to 1.0 billion
euros as at 31 December 2022, in line with the situation at
the end of 2021.
Other assets (Heading XI) amounted to 1.5 billion euros
as at 31 December 2022, in line with the situation at the
end of 2021.
Deferred charges and accrued income (Heading XII) stood at
11.2 billion euros as at 31 December 2022, up by 0.7 billion
euros compared with 10.5 billion euros as at 31 December
2021 mainly following the evolution of the interest rate deriva-
tives. The fair value of those instruments was impacted by
the increase of the interest rate curve, which impacted in a
symmetrical way both the fair value of the trading derivative
financial instruments on the asset and liability side.
Liabilities and Equity
Amounts owed to credit institutions (Heading I) totalled
36.9 billion euros as at 31 December 2022, down by
(15.6) billion euros compared with 31 December 2021. Part of
the evolution (decrease of (10) billion euros) was attributable
to the partial reimbursement of the TLTRO III (‘Targeted
Longer-Term Refinancing Operations’) of the ECB.
Amounts payable to clients (Heading II) stood at 154.6 billion
euros as at 31 December 2022, down by (0.1) billion euros
compared with 154.7 billion euros as at 31 December 2021.
205
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
In Belgium, saving accounts and current accounts decreased
respectively by (3.3) billion euros and by (0.6) billion euros.
Term deposits increased by 4.1 billion euros. The evolution
is mainly due to the increase of the interest rates in the
term accounts.
Debts evidenced by certificates (Heading III) amounted to
10.8 billion euros as at 31 December 2022, representing an
increase by 0.3 billion euros.
Other liabilities (Heading IV) stood at 6.2 billion euros, up by
0.7 billion euros compared with 31 December 2021.
Accrued charges and deferred income (Heading V) stood
at 8.9 billion euros, up by 2.1 billion euros compared with
31 December 2021, following the evolution of the interest rate
derivatives. The fair value of those instruments was impacted
by the increase of the interest rate curve, which impacted in a
symmetrical way both the fair value of the trading derivative
financial instruments on the asset and liability side.
Subordinated liabilities (Heading VIII) amounted to 3.5 billion
euros as at 31 December 2022, a decrease of (0.1) billion euros
compared to the situation at the end of 2021.
Shareholders’ equity (Headings IX, X, XI, XII and XIII) stood
at 17.3 billion euros as at 31 December 2022, down by
(0.8) billion euros compared with 31 December 2021.
Comments on the evolution of the income statement
BNP Paribas Fortis realised a net profit of the year of
2,207 million euros, compared to 2,002 million euros in 2021.
The interest margin (Headings I and II) amounted to
2,577 million euros in 2022, down by (89) million euros com-
pared to 2021, essentially in Belgium. The net interest income
decreased despite the normalisation of interest rates and the
growth of customer loans and deposits.
Income from variable-yield securities (Heading III) amounted
to 942 million euros in 2022, up by 147 million euros compared
to 2021, mainly due to an increase in dividends received from
enterprises linked by participating interests.
Commissions (Headings IV and V) amounted to 1,046 million
euros in 2022, down by (17) million euros compared to 2021. In
Belgium there was a slightly decrease of the net commissions
in a context of an uncertain economic environment.
Profit on financial operations (Heading VI) amounted to
287 million euros, up by 169 million euros compared to previ-
ous year, mainly due to trading of interest rate operations.
General administrative expenses (Heading VII) came to
(2,457) million euros, an increase of (323) million euros
compared to 2021.
In Belgium, there were more staff expenses ((167) million
euros), with an increase mainly attributable to the impact of
inflation, only partially mitigated by the decrease of the FTEs.
Other administrative expenses increased by (156) million
euros compared to previous year. The evolution was mainly
due to the increase of the banking taxes and temporary staff.
Depreciation and amounts written off on formation expenses,
intangible and tangible fixed assets (Heading VIII) amounted
to (76) million euros compared to (72) million euros in 2021.
Amounts written off on the amounts receivable and the
investment portfolio (Headings IX and X) totalled (7) million
euros, compared to (145) million euros in 2021, i.e. a decrease
of 138 million euros mainly due to less write-offs on loans
(specific dossiers) in 2022.
Provisions for risks and charges (Headings XI and XII) showed
a net dotation of 35 million euros in 2022 against a net release
of (35) million euros in 2021.
Other operating income (Heading XIV) amounted to
156 million euros in 2022, up by 2 million euros compared
to previous year.
Other operating charges (Heading XV) amounted to
(333) million euros in 2022, down by 46 million euros com-
pared to 2021.
Extraordinary income (Heading XVII) came to 167 million
euros in 2022, down by (33) million euros compared to 2021.
The evolution was mainly driven by the gains on disposal of
an important financial fixed asset last year.
Extraordinary charges (Heading XVIII) came to (38) million
euros in 2022, an increase by 101 million euros compared
to 2021 due to the write-downs on financial fixed assets
of last year.
Income taxes (Heading XX) amounted to (90) million euros
in 2022, an increase by (5) million euros compared to 2021.
206
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
PROPOSED APPROPRIATION OF THE RESULT
FOR THE ACCOUNTING PERIOD
Profit for the year for appropriation EUR 2,207.1 million
Profit brought forward from the previous year EUR 4,534.0 million
Profit to be appropriated EUR 6,741.1 million
Profit to be carried forward EUR 3,730.7 million
Dividend EUR 2,995.5 million
Other allocations* EUR 14.9 million
* This amount represents the profit bonus of 2.35% which is calculated on the individual annual remuneration of the employees of BNP Paribas Fortis NV/SA in
accordance with the Law of May 22nd 2001 (Law concerning the employees participation in the capital of companies and on the set up of a profit bonus for
the employees).
In accordance with the aforementioned appropriation of the
result for the financial year 2022, the Board of Directors of
BNP Paribas Fortis SA/NV will request the approval of the
General Meeting of Shareholders to distribute an ordinary
gross dividend of EUR 5.30 per share, or EUR 2,995.5 million.
207
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
INFORMATION REGARDING RELATED PARTY
TRANSACTIONS
Board of Directors’ Procedure
Background
Article 7:97 of the Code on companies and associations
imposes a specific procedure for listed companies in the
context of transactions between related parties. Even if this
provision does not apply to BNP Paribas Fortis, its Board of
Directors, upon advice of the GNC and in line with its internal
governance principles, adopted on 15 December 2011 a ‘Board
of Directors’ Procedure for intra-group transactions’ (the
‘Procedure’) that is inspired on, but not identical to article 7:97
of the Code on companies and associations.
In the course of 2022, one intra-group transaction, further
described as the ‘Rider’ transaction, required the application
of this ‘Procedure’. The Board of Directors decided, during
its meeting of July 20, 2022, to establish a Special Board
Committee (‘SBC’), composed of:
Dirk Boogmans (non-executive director and chaiman
of the SBC)
Antoinette d’Aspremont Lynden (independent non-
executive director)
Sophie Dutordoir (independent non-executive director)
Anne Leclercq (independent non-executive director)
Titia Van Waeyenberge (independent non-execu-
tive director)
Herman Daems (non-executive director and chairman of
the Board of Directors)
As the Rider transaction has been considered in scope of the
Procedure, the Board of Directors invited the SBC to render
a written reasoned opinion (the ‘Opinion’) with regard to the
transaction.
The Procedure provides inter alia (i) that the SBC is assisted
by an independent financial advisor and any person it deems
necessary, and (ii) that BNP Paribas Fortis’ statutory auditor
issues, prior to the Board of Directors’ meeting taking the
relevant decision, an opinion on the accuracy of the (financial)
data in the Opinion of the SBC.
Scope of the Opinion
In accordance with the Procedure, any decision of the Board of
Directors that concerns (i) transactions between BNP Paribas
Fortis and an affiliated company thereof, with the exception
of its subsidiaries; as well as (ii) transactions between a
subsidiary of BNP Paribas Fortis and an affiliated company of
such subsidiary, but which is not a subsidiary of BNP Paribas
Fortis, must, prior to any such decision, be submitted to the
application of the Procedure and entail the SBC to render a
written reasoned Opinion in which it:
(i) describes the nature of the transaction;
(ii)
gives an assessment of the economic benefit or disadvantage
of the transaction for the company and for its shareholders;
(iii) describes the financial consequences of the transaction
for the company; and
(iv) assesses whether or not the decision or transaction is such
that it may cause a disadvantage to the company that, in
the light of the company’s strategy, is manifestly abusive
(“kennelijk onrechtmatig”/”manifestement abusif”). If the
SBC is of the opinion that the decision or transaction is
not manifestly abusive, but could still be detrimental to
BNP Paribas Fortis, the SBC must clarify which benefits
BNP Paribas Fortis derives from the decision or transaction
that compensate for such disadvantage.
Composition of the SBC
In respect of each decision falling within the scope of the
Procedure, an SBC must be established, composed of minimum
three (3) non-executive directors who do not represent the major-
ity shareholder. The majority of the members of the SBC must be
independent directors (within the meaning of Banking Law). In
order to meet this requirement, the SBC established for the Rider
transaction, was composed of the directors mentioned supra.
The members of the SBC all confirm that they are non-
executive directors who do not represent the majority
shareholder. Antoinette d’Aspremont Lynden, Sophie Dutordoir,
Anne Leclercq, and Titia Van Waeyenberge confirm that they
are independent directors within the meaning of the Code of
Companies and Associations.
208
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
Independent financial and legal
advisors designated by the SBC in
accordance with the Procedure
In accordance with the Procedure, the SBC will be assisted
by an independent financial advisor, and any other person it
deems necessary.
For the Rider transaction, the SBC appointed Ernst & Young
Advisory SAS, incorporated under the laws of France having its
registered office at 1-2 Place des Saisons, 924000 Courbevoie
at Paris-La Défense and registered with the R.C.S. Nanterre
under the number 348.006.446 (‘EY’) as independent financial
advisor to assist the SBC in its review of the financial terms
of the Transaction. Moreover, the SBC appointed Eubelius
CVBA, with registered office at 99 Louizalaan, 1050 Brussels
(Belgium) and registered with the Crossroads Bank for
Enterprises under the number 0460.946.968 as independent
legal advisor to assist the SBC in the performance of its task
and the provision of its Opinion.
Basis for the Opinion –
Activities of the SBC
The SBC’s Opinion has been prepared, inter alia, on the basis of
the information provided by the management of BNP Paribas
Fortis, BNP Paribas Personal Finance S.A., incorporated under
the laws of France having its registered office at 1 Boulevard
Haussmann, 75009 Paris (France) and registered with the
R.C.S. PARIS under number 542.097.902 (‘BNPP PF’), and EY.
With regard to this Rider transaction, the SBC has met on
several occasions and has on a regular basis consulted
and exchanged information and views with the respective
management teams of BNP Paribas Fortis and BNPP PF, the
independent experts, and the statutory auditor, including
during the five (5) meetings in the course of 2022.
Transaction
Background and rationale
The Rider transaction consists of the acquisition by Alpha
Credit, a fully-owned subsidiary of BNP Paribas Fortis SA, of
Creation Financial Services Limited (‘CFSL’) from BNPP PF, a
fully-owned subsidiary of BNP Paribas SA. Through this Rider
transaction, Alpha Credit would also indirectly acquire all
shares in Creation Consumer Finance Limited (‘CCFL’, and
together with CFSL defined as ‘Creation’), which is a fully-
owned subsidiary of CFSL.
Creation provides consumer finance products and services
in the United Kingdom in a broad and diversified business
model with over 45 years of experience in the UK market.
Headquartered in Birmingham (UK), it has 2.1 million active
customers and 654 FTEs.
Creation consists of two legal entities: CFSL, a 100% subsidiary
of BNPP PF, incorporated in England; and CCFL, a 100% subsidi-
ary of CFSL, incorporated in Northern Ireland. CFSL and CCFL
are both authorised and regulated by the Financial Conduct
Authority (‘FCA’) to provide credit within the UK market and are
registered as consumer credit firm with insurance mediation.
In addition, CFSL has a payment services authorisation.
Description
The management of BNP Paribas Fortis has proposed to
acquire Creation. The legal structure of the Rider transaction
entails the acquisition of all of the shares in CFSL.
Valuation
The valuation of the Rider transaction has been analysed
by and discussed with EY, acting as independent financial
advisor and assisting the SBC with its assessment of the Rider
transaction.
209
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
EY has considered the Dividend Discount Model (‘DDM’) as the
primary methodology for the valuation of Creation. According
to EY, the DDM allows to run sensitivity analyses based on
the cost of equity and the long-term growth rate, as well as
regulatory and business parameters. EY used other methods as
a reference only, to corroborate the results obtained with the
DDM approach. The DDM method is based on discounting net
income post contributions for capital obligation at a specific
cost of equity.
EY has concluded that the proposed valuation of a price over
estimated (consolidated) book value (‘P/BV’) of 0.85x is overall
well corroborated by the different methodologies considered.
PwC Bedrijfsrevisoren BV has acted as statutory auditor
of BNP Paribas Fortis and has issued, prior to the Board of
Directors’ meeting taking the relevant decision, a report on
the accuracy of the financial data contained in the Opinion
of the SBC.
Decision-making
On November 17, 2022, the Board of Directors of BNP Paribas
Fortis decided to approve the proposed Rider transaction.
Opinion of the SBC – Financial
consequences
“The valuation proposed by the management of the Company
for the acquisition of the shares in CFSL on the basis of a
revised business plan for Creation as per 31 December 2022
endorsed by the management of the Company is within the
valuation range determined by EY, based on and subject to
the terms set out in the EY Valuation Report, as at the date
of said report.
Therefore, the SBC is of the view that the financial terms and
conditions of the proposed Transaction are fair.”
Opinion of the SBC – Conclusion
“The SBC is of the opinion that the proposed Transaction is
compatible with the corporate interest of the Company, taking
into account the rationale of the proposed Transaction and
the potential benefits that may be derived from it.
Based on the considerations and assumptions mentioned
above, in particular in relation to the transaction documents
that are currently being negotiated, and after having reviewed
the financial and possible legal terms and conditions of the
proposed Transaction with the independent experts, EY and
Eubelius, the SBC has come to the conclusion that the pro-
posed Transaction will not cause a prejudice to the Company
that is abusive given the strategy of the Company. The SBC
also believes that the proposed Transaction is unlikely to result
in adverse consequences that would not be compensated for
by benefits for the Company.”
210
BNP PARIBAS FORTIS ANNUAL REPORT 2022 (NON-CONSOLIDATED)
BNP PARIBAS FORTIS
FINANCIAL STATEMENTS 2022
(NON-CONSOLIDATED)
212
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2022 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 2.1
BALANCE SHEET AFTER APPROPRIATION
In thousands of euros Codes Current period Previous period
ASSETS
I. Cash in hand, balances with central banks and giro offices 10100 1,276,969 44,103,571
II. Government securities eligible for refinancing with the central bank 10200 - -
III. Amounts receivable from credit institutions 10300 30,622,737 12,025,353
A. At sight 10310 23,906,248 2,267,932
B. Other amounts receivable (at fixed term or period of notice) 10320 6,716,489 9,757,421
IV. Amounts receivable from customers 10400 141,191,612 129,352,410
V. Bonds and other fixed-income securities 10500 43,153,106 44,987,681
A. Issued by public bodies 10510 8,106,034 10,001,348
B. Issued by other borrowers 10520 35,047,072 34,986,333
VI. Shares and other variable-yield securities 10600 53,001 55,601
VII. Financial fixed assets 10700 9,237,306 9,323,932
A. Participating interests in affiliated enterprises 10710 5,804,165 5,715,528
B.
Participating interests in other enterprises linked by participating
interests
10720 2,575,022 2,576,254
C. Other shares held as financial fixed assets 10730 168,266 376,506
D.
Subordinated loans to affiliated enterprises and to other
enterprises linked by participating interests
10740 689,853 655,644
VIII. Formation expenses and intangible fixed assets 10800 6,524 28,618
IX. Tangible fixed assets 10900 964,978 1,053,744
X. Own shares 11000 - -
XI. Other assets 11100 1,486,036 1,363,842
XII. Deferred charges and accrued income 11200 11,207,994 10,527,406
TOTAL ASSETS 19900 239,200,263 252,822,158
213
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2022 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 2.2
In thousands of euros Codes Current period Previous period
LIABILITIES
BORROWINGS 201/208 221,926,638 234,745,228
I. Amounts owed to credit institutions 20100 36,859,243 52,463,048
A. At sight 20110 2,607,247 959,416
B. Amounts owed as a result of the rediscounting of trade bills 20120 - -
C. Other debts with agreed maturity dates or periods of notice 20130 34,251,996 51,503,632
II. Amounts payable to clients 20200 154,603,824 154,696,063
A. Savings deposits 20210 66,693,682 70,007,559
B. Other debts 20220 87,910,142 84,688,504
1. At sight 20221 76,007,470 76,792,884
2. At fixed term or period of notice 20222 11,902,672 7,895,620
3. As a result of the rediscounting of trade bills 20223 - -
III. Debts evidenced by certificates 20300 10,780,648 10,489,246
A. Debt securities and other fixed-income securities in circulation 20310 6,344,618 7,269,930
B. Other 20320 4,436,030 3,219,316
IV. Other amounts payable 20400 6,189,429 5,507,422
V. Accrued charges and deferred income 20500 8,937,382 6,841,939
VI. Provisions and deferred taxes 20600 222,931 298,079
A. Provisions for risks and charges 20610 222,931 298,079
1. Pensions and similar obligations 20611 -
2. Fiscal charges 20612 - 494
3. Other risks and charges 20613 222,931 297,585
B. Deferred taxes 20620 - -
VII. Fund for general banking risks 20700 871,681 871,681
VIII. Subordinated liabilities 20800 3,461,500 3,577,750
SHAREHOLDERS' EQUITY 209/213 17,273,625 18,076,930
IX. CAPITAL 20900 10,964,768 10,964,768
A. Subscribed capital 20910 10,964,768 10,964,768
B. Uncalled capital (-) 20920 - -
X. Share premium account 21000 940,582 940,582
XI. Revaluation surpluses 21100 - -
XII. Reserves 21200 1,637,546 1,637,546
A. Statutory reserve 21210 1,096,477 1,096,477
B. Reserves not available for distribution 21220 36,988 36,988
1. In respect of own shares held 21221 - -
2. Other 21222 36,988 36,988
C. Untaxed reserves 21230 150,790 150,790
D. Reserves available for distribution 21240 353,291 353,291
XIII. Profits (losses (-)) brought forward (+)/(-) 21300 3,730,729 4,534,034
TOTAL LIABILITIES 29900 239,200,263 252,822,158
214
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2022 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 3
INCOME STATEMENT (presentation in vertical form)
In thousands of euros Codes Current period Previous period
I. Interest receivable and similar income 40100 3,528,322 3,362,054
A. Of which: from fixed-income securities 40110 444,821 421,881
II. Interest payable and similar charges 40200 951,747 696,823
III. Income from variable-yield securities 40300 942,040 794,697
A. From shares and other variable-yield securities 40310 9,287 6,568
B. From participating interests in affiliated enterprises 40320 632,674 546,120
C.
From participating interests in other enterprises linked by
participating interests
40330 299,941 222,747
D. From other shares held as financial fixed assets 40340 138 19,262
IV. Commissions receivable 40400 1,524,125 1,539,234
A. Brokerage and related commissions 40410 556,165 535,878
B. Management, consultancy and conservation commissions 40420 353,507 360,382
C. Other commissions received 40430 614,453 642,974
V. Commissions paid 40500 478,079 476,392
VI. Profit (loss) on financial transactions (+)/(-) 40600 286,568 117,191
A. On trading of securities and other financial instruments 40610 402,796 138,113
B. On disposal of investment securities 40620 (116,228) (20,922)
VII. General administrative expenses 40700 2,457,463 2,135,008
A. Remuneration, social security costs and pensions 40710 1,293,471 1,126,611
B. Other administrative expenses 40720 1,163,992 1,008,397
VIII.
Depreciation/amortization of and other write-downs on
formation expenses, intangible and tangible fixed assets.
40800 75,912 72,488
IX.
Decrease in write downs on receivables and in provisions for
off-balance sheet captions ‘I. Contingent liabilities’ and
‘II. Commitments which could give rise to a credit risk’.
(+)/(-) 40900 15,496 185,721
X.
Decrease in write-downs on the investment portfolio of bonds,
shares and other fixed-income or
variable-yield securities.
(+)/(-) 41000 (8,997) (40,789)
XI.
Utilization and write-backs of provisions for liabilities and
charges other than those included in the off-balance sheet
captions.
(+)/(-) 41100 (48,622) (30,530)
XII.
Provisions for risks and charges other than those included in
the off-balance sheet captions.
41200 14,114 65,522
XIII.
Transfer from (Appropriation to) the fund for general banking
risks.
(+)/(-) 41300 - -
XIV. Other operating income 41400 155,751 153,639
XV. Other operating charges 41500 332,669 379,072
XVI. Profits (losses) on ordinary activities before taxes. (+)/(-) 41600 2,168,945 2,027,108
215
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2022 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 3
In thousands of euros
Codes Current period Previous period
XVII. Extraordinary income 41700 166,820 199,924
A.
Adjustments to depreciation/amortization of and to other
write-downs on intangible and
and tangible fixed assets
41710 353 1,167
B. Adjustments to write-downs on financial fixed assets 41720 99,206 43,985
C.
Adjustments to provisions for extraordinary risks and
charges
41730 - -
D. Capital gains on disposal of fixed assets 41740 67,097 154,758
E. Other extraordinary income 41750 164 14
XVIII. Extraordinary charges 41800 38,299 139,520
A.
Extraordinary depreciation/amortization of and
extraordinary write-downs on formation expenses
and intangible and tangible fixed assets
41810 - -
B. Write-downs on financial fixed assets 41820 27,157 132,607
C. Provisions for extraordinary risks and charges (+)/(-) 41830 - -
D. Capital losses on disposal of fixed assets 41840 8,802 5,354
E. Other extraordinary charges 41850 2,340 1,559
XIX. Profits (Losses) for the period before taxes (+/-) 41910 2,297,466 2,087,512
XIXbis.
A. Transfer to deferred taxes 41921 - -
B. Transfer from deferred taxes 41922 - -
XX. Income taxes (+)/(-) 42000 90,366 85,662
A. Income taxes 42010 95,289 118,529
B. Adjustment of income taxes and write-back of tax provisions 42020 4,923 32,866
XXI. Profits (Losses) for the period (+)/(-) 42100 2,207,100 2,001,849
XXII. Transfer to (or from) untaxed reserves (+)/(-) 42200 - -
XXIII. Profit (Losses) for the period available for appropriation (+)/(-) 42300 2,207,100 2,001,849
216
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2022 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 5.18
XVIII. STATEMENT OF CAPITAL AND SHAREHOLDING STRUCTURE
In thousands of euros Codes Current period Previous period
A. Capital statement
1. Shareholders equity
a. Subscribed capital
at the end of the previous financial year 20910P xxxxxxxxxxxxxx 10,964,768
at the end of the financial year (20910) 10,964,768
Codes Amounts Number of shares
Changes during the financial year
b. Structure of the capital
Categories of shares
Common 10,964,768 565,194,208
Registered shares 51801 xxxxxxxxxxxxxx 565,021,566
Bearer and or dematerialized shares 51802 xxxxxxxxxxxxxx 172,642
Codes Uncalled capital
Called but unpaid
capital
2. Capital not paid up
a. Uncalled capital (20920) - xxxxxxxxxxxxxx
b. Called but unpaid capital 51803 xxxxxxxxxxxxxx -
c. Shareholders still owing capital payment
Codes Current period
3. Own shares
a. Held by the reporting institution itself
* Amount of capital held 51804 -
* Corresponding number of shares 51805 -
b. Held by its subsidiaries
* Amount of capital held 51806 -
* Corresponding number of shares 51807 -
4. Share issuance commitments
a. Following the exercise of conversion rights
* Amount of convertible loans outstanding 51808 -
* Amount of capital to be subscribed 51809 -
* Maximum corresponding number of shares to be issued 51810 -
b. Following the exercise of subscription rights
* Number of subscription rights outstanding 51811 -
* Amount of capital to be subscribed 51812 -
* Maximum corresponding number of shares to be issued 51813 -
5. Authorized capital not issued 51814 10,964,768
6. Shares not representing capital
a. Repartition
* Number of parts 51815 -
* Number of votes 51816 -
b. Breakdown by shareholder
* Number of parts held by the reporting institution itself 51817 -
* Number of parts held by its subsidiaries 51818 -
B. Shareholders structure of the institution at year end according to the notifications received by the institution
- Pursuant to article 7:225 and article 7:83 of the companies and associations Code;
- Pursuant to article 14, paragraph 4, of the law of 2 May 2007 on the disclosure of major shareholdings
or pursuant to article 5 of the Royal Decree of 21 August 2008 on the rules for certain multilateral trading facilities
After verification, BNP Paribas Fortis did not receive any notifications
OTHER INFORMATION
218
OTHER INFORMATION
Monthly high and low prices for BNP Paribas Fortis shares at the weekly
auctions in 2022
The monthly high and low prices for BNP Paribas Fortis shares at the weekly auctions of Euronext Brussels (Euronext Expert
Market) in 2022 were as follows (in EUR):
Month Low High
January 24.4 25.2
February 26.0 29.4
March 29.4 32.2
April 33.6 33.6
May 36.6 36.6
June 29.0 29.0
July NA NA
August 29.0 29.4
September 30.2 32.2
October 30.2 30.2
November 30.4 30.8
December 30.4 30.4
External functions held by directors and effective leaders on the 31
st
of
December 2022 that are subject to a disclosure requirement
Pursuant to the Regulation of the National Bank of Belgium
of 9 November 2021 on the exercise of external functions
by managers and heads of independent control functions of
regulated companies (‘Reglement van de Nationale Bank van
België van 9 november 2021 met betrekking tot de uitoefening
van externe functies door leiders en verantwoordelijken van
de onafhankelijke controlefuncties van gereglementeerde
ondernemingen’ / ‘Règlement de la Banque Nationale de
Belgique du 9 novembre 2021 concernant l’exercice de fonc-
tions extérieures par les dirigeants et responsables d’une
fonction de contrôle indépendante d’entreprises réglemen-
tées’) (the ‘Regulation’), the Board of Directors of BNP Paribas
Fortis has adopted its ‘Internal rules governing the exercise of
external functions by effective leaders of BNP Paribas Fortis
(‘Internal Rules’).
This Regulation, as well as the Internal Rules, stipulate a.o.
that certain external functions held by the directors and effec
-
tive leaders must be disclosed in the annual report.
The effective leaders of BNP Paribas Fortis are set forth in a
list submitted to the Belgian National Bank, which is kept up
to date in accordance with the applicable regulations. This list
includes the members of the Executive Board of BNP Paribas
Fortis, the CFO and the heads of its foreign branches.
According to the Regulation and the Internal Rules, the
external functions subject to disclosure are the executive or
non-executive directorships and the functions involving taking
part in the management or running of a company, exercised
by a board member or effective leader of BNP Paribas Fortis
in a commercial company or in a company with a commercial
legal form, in an undertaking with another Belgian or foreign
legal form or in a Belgian or foreign public institution with an
industrial, commercial or financial activity, apart from those
exercised within the BNP Paribas group.
219
OTHER INFORMATION
Name, Surname
(Post)
Company Business Activity (Post) Listed
Herman DAEMS
(Chairman of the Board of Directors
until December 31, 2022)
Domo Investment Group SA/NV Holding company -
(Chairman of the Board of Directors)
Unibreda SA/NV Holding company -
(Chairman of Board of Directors - independent director)
Max JADOT
(Chairman of the Executive Board
until December 31, 2022)
Baltisse SA/NV Investment Company -
(Non-executive director)
Dominique AUBERNON
(Non-executive director)
Sicovam Holding SA Holding company -
(Non-executive director)
Dirk BOOGMANS
(Non-executive director)
Smile Invest SA/NV Investment Company -
(Member of the Investment Committee)
Smile Invest Management Company SA/NV Investment Company -
(Non-executive director)
Newton Biocapital I SA/NV Investment Fund -
(Non-executive director and chairman of the Audit Committee)
Newton Biocapital II SA/NV Investment Fund -
(Non-executive director and chairman of the Audit Committee)
Vinçotte International SA/NV Inspection, control and certification services -
(Non-executive director)
Vinçotte Academy SA/NV Inspection, control and certification services -
(Non-executive director)
Vinçotte SA/NV Inspection, control and certification services -
(Non-executive director)
Antoinette d’ASPREMONT LYNDEN
(Independent director)
Groupe Bruxelles Lambert SA/NV Holding Company Euronext Brussels
(Non-executive director and chairwoman of the Audit Committee)
Wouter DE PLOEY
(Independent director)
Unibreda SA/NV Holding company -
(Non-executive director)
Vanbreda Risk & Benefits SA/NV Insurance broker -
(Non-executive director and member of the Remuneration Committee)
220
OTHER INFORMATION
Name, Surname
(Post)
Company Business Activity (Post) Listed
Sophie DUTORDOIR
(Non-executive director)
Nationale Maatschappij der Belgische
Spoorwegen SA/NV
Railway -
(CEO and executive director)
Wetenschapspark Leuven Noord Railway -
(Non-executive director)
HR Rail SA/NV Railway -
(Non-executive director)
Haffner Energy SA Renewable energy Euronext Paris
(Independent director)
Arvesta SA/NV Agriculture and horticulture -
(Non-executive director)
Anne LECLERCQ
(Independent director)
WDP SA/NV Logistics Euronext Brussels
(Independent director, member of the Audit Committee
and Remuneration and Nomination Committee)
Fluxys Belgium SA/NV Energy infrastructure -
(Independent director, member of the Audit and Risk Committee
and Corporate Governance Committee)
Titia VAN WAEYENBERGE
(Independent director)
De Eik SA/NV Investment company -
(Chairwoman of the Board of Directors and member of
the Nomination and Remuneration Committee)
Paratodos SA/NV Agribusiness -
(CEO and executive director)
Estancia Montania SA Agribusiness -
(Non-executive director)
Ganadera El Roble SA Agribusiness -
(Non-executive director)
Pikyry SA Agribusiness -
(Non-executive director)
Industria San Cosme SA Agribusiness -
(Non-executive director)
Indufin Capital partners Sicar Investment company -
(Non-executive director)
Tattersal Leasing SA Leasing company -
(Non-executive director)
Indufin Investment fund SA/NV Investment fund -
(Chairwoman of the Board of Directors)
221
OTHER INFORMATION
Name, Surname
(Post)
Company Business Activity (Post) Listed
Sandra WILIKENS
(Executive director)
Vanbreda Risk & Benefits SA/NV Insurance broker -
(Non-executive director)
222
OTHER INFORMATION
The bank
for a changing
world
BNP PARIBAS FORTIS SA/NV
REGISTERED OFFICE
Montagne du Parc/Warandeberg 3
1000 Brussels (Belgium)
Brussels Business Register
Company Number: 0403.199.702
www.bnpparibasfortis.com
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