READY FOR YOUR WORLD
BNP PARIBAS
FORTIS ANNUAL
REPORT 2023
Introduction
BNP Paribas Fortis is a limited liability company (naamloze vennootschap (NV)/société anonyme (SA)), incorpo-
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 2023 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 2023, with comparative figures for 2022, prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European Union, are followed by the audited
non-consolidated financial statements 2023 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 2023 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 8.k ‘Scope of consolidation’, together with the infor-
mation 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.
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CONTENTS
5
Introduction 3
BNP Paribas Fortis Consolidated Annual Report 2023 9
Report of the Board of Directors 10
A word from the Chairman and the CEO 10
Economic context 12
Core Businesses 13
BNP Paribas Fortis’ social responsibility 20
Additional information 23
Changes in the scope of consolidation 23
BNP Paribas Fortis credit ratings at 13/02/2024 23
Forward-looking Statements 24
Comments on the evolution of the results 24
Comments on the evolution of the balance sheet 26
Liquidity and solvency 28
Principal risks and uncertainties 28
Statement of the Board of Directors 29
Corporate Governance Statement 30
BNP Paribas Fortis Consolidated Financial Statements 2023 43
Profit and loss account for the year ended 31 December 2023 44
Statement of net income and change in assets and liabilities recognised
directly in equity 45
Balance sheet at 31 December 2023 46
Cash flow statement for the year ended 31 December 2023 47
Statement of changes in shareholders’ equity 48
Notes to the Consolidated Financial Statements 2023 51
1 Summary of significant accounting policies applied by BNP Paribas
Fortis 52
1.a Accounting standards 52
1.b Segment reporting 52
1.c Consolidation 53
1.d Translation of foreign currency transactions 57
1.e Financial information in hyperinflationary economies 57
1.f Net interest income, commissions and income from other activities 58
1.g Financial assets and liabilities 59
1.h Property, plant, equipment and intangible assets 70
1.i Leases 71
1.j Assets held for sale and discontinued operations 73
1.k Employee benefits 73
1.l Share-based payments 75
1.m Provisions recorded under liabilities 75
1.n Current and deferred tax 75
1.o Cash flow statement 76
1.p Use of estimates in the preparation of the financial statements 77
6
2 IFRS 17 and IFRS 9 first time application impacts 79
IFRS 17 and IFRS 9 first time application impacts on the balance sheet at
31 December 2022 79
3 Notes to the profit and loss account for the year ended 31 December
2023 81
3.a Net interest income 81
3.b Commission income and expense 82
3.c Net gain on financial instruments at fair value through profit or loss 82
3.d Net gain on financial instruments at fair value through equity 83
3.e Net income from other activities 84
3.f Other operating expenses 84
3.g Cost of risk 84
3.h Net gain on non-current assets 92
3.i Corporate income tax 93
4 Segment information 95
4.a Operating segments 95
4.b Information by operating segment 96
4.c Country-by-country reporting 97
5 Notes to the balance sheet at 31 December 2023 98
5.a Financial instruments at fair value through profit or loss 98
5.b Derivatives used for hedging purposes 100
5.c Financial assets at fair value through equity 104
5.d Measurement of the fair value of financial instruments 104
5.e Financial assets at amortised cost 115
5.f Impaired financial assets (Stage 3) 117
5.g Financial liabilities at amortised cost due to credit institutions and customers 118
5.h Debt securities and subordinated debt 118
5.i Current and deferred taxes 119
5.j Accrued income/expense and other assets/liabilities 120
5.k Equity-method investments 121
5.l Property, plant, equipment and intangible assets used in operations,
investment property 124
5.m Goodwill 125
5.n Provisions for contingencies and charges 127
5.o Offsetting of financial assets and liabilities 128
5.p Transfers of financial assets 130
7
6 Financing and guarantee commitments 133
6.a Financing commitments given or received 133
6.b Guarantee commitments given by signature 133
6.c Securities commitments 134
6.d Other guarantee commitments 134
7 Salaries and employee benefits 135
7.a Salary and employee benefit expenses 135
7.b Post-employment benefits 135
7.c Other long-term benefits 141
7.d Termination benefits 141
8 Additional information 142
8.a Contingent liabilities: legal proceedings and arbitration 142
8.b Business combinations and loss of control or significant influence 142
8.c Minority interests 143
8.d Discontinued activities 145
8.e Significant restrictions in subsidiaries, associates and joint ventures 146
8.f Structured entities 146
8.g Compensation and benefits awarded to BNP Paribas Fortis’ corporate officers 149
8.h Other related parties 153
8.i Financial instruments by maturity 155
8.j Fair value of financial instruments carried at amortised cost 156
8.k Scope of consolidation 158
8.l Fees paid to the statutory auditors 165
8.m Events after the reporting period 166
Risk management and capital adequacy 167
1 Risk Management Organisation 169
2 Risk measurement and categories 172
3 Capital adequacy 174
4 Credit and counterparty credit risk 177
5 Market risk 182
6 Sovereign risks 185
7 Operational risk 186
8 Compliance and reputational risk 187
9 Liquidity risk 188
8
Report of the accredited statutory auditor 191
BNP Paribas Fortis annual report 2023 (non-consolidated) 199
Report of the Board of Directors 200
Comments on the evolution of the balance sheet 200
Comments on the evolution of the income statement 201
Proposed appropriation of the result for the accounting period 202
Information regarding related party transactions 203
BNP Paribas Fortis Financial Statements 2023 (Non-consolidated) 205
Other information 211
BNP PARIBAS FORTIS
CONSOLIDATED ANNUAL
REPORT 2023
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Report of the Board of Directors
A word from the Chairman and the CEO
2023 was an eventful year for our bank. We took important steps in the implementation of our strategy
focused on Growth, Accessibility and Sustainability (GAS). We prepared the bpost bank merger, which
we completed with the successful migration of customer accounts in January 2024. We also achieved
strong financial results, both in our banking business and in our specialised subsidiaries. Above all,
BNP Paribas Fortis’ teams were fully committed to helping our more than 4.7 million Belgian clients.
We operated against a backdrop of ongoing geopolitical instability. The war in Ukraine continued and
new armed conflicts emerged on Europe’s borders. These converging crises led to uncertain energy
supplies, longer supply chains, higher commodity prices, protectionism, inflation and rapid rising
interest rates, putting pressure on industrial and private activity in our home market.
BNP Paribas Fortis was able to maintain positive momentum and post good financial results.
Consolidated net profit was 3,095 million euros, down 1% from 2022. Revenues increased by 9% to
10,551 million euros, mainly driven by higher interest income in Belgium and higher revenues at
Arval, TEB, BGL and Leasing Solutions. Operating expenses increased by 8%, mainly due to the impact
of inflation. Our consolidated cost-to-income ratio improved to 52.1%, from 52.6% last year, thanks to
a positive jaws effect of 1.0%. Our CET1 capital ratio of 16.2% and liquidity ratio of 118% illustrate the
solidity of the bank. Our good results and strong solvency enable us to finance our clients’ projects
and the Belgian economy and to invest in our strategic initiatives.
The roll-out of our strategy for 2025 is ongoing. Two of the most important steps in this journey are
the integration of bpost bank into BNP Paribas Fortis and the launch of a completely new offering
focusing on daily banking. With the bpost bank project, which included the migration of 3 million
customer accounts on 22 January 2024 – more than 80,000 hours of preparation, the training of 2,270
bpost employees and the mobilisation of 700 employees during the merger weekend – we have laid
the foundations for the most accessible retail network in Belgium. Many employees of both banks
gave their best to prepare and complete the merger and welcome the more than 1 million customers
and 300 employees of bpost bank.
With over-the-counter banking services in 656 post offices in central locations, expert advice in
BNP Paribas Fortis branches by appointment, 16 Client Houses combining corporate and private
banking services, the Fintro bancassurance network and Nickel’s basic banking services – with more
than 400 points of sale already in place – we are able to offer all types of customers a personalised
service tailored to their needs.
In the same month as the merger, we launched our Easy Go and Easy Guide packs, which were well
received. With these two modular packs, each customer can fine-tune the way they interact with the
bank, the products they use and the advice they receive from our multi-disciplinary teams.
In home loans, we strengthened our franchise by merging the Krefima and Demetris credit brokers
into the new BNP Paribas Fortis Credit Brokers brand. Pursuing growth by combining the best of
both worlds, BNP Paribas Fortis Credit Brokers now offers our home loans through a network of
more than 600 brokers.
With a year-on-year increase in digital interactions, our Easy Banking App (EBA) remains the main
gateway to our products and services, complementing face-to-face appointments in our branches.
Our clients are also increasingly enthusiastic about the third-party services we are integrating into
our app. To further strengthen our role as a trusted financial partner, BNP Paribas Fortis is offering
additional third-party services in four ecosystems – Move, Live, Pay and Work – to achieve the best
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
customer experience, in line with our strategy. We see Euromoney’s acknowledgment of BNP Paribas
Fortis as ‘Best Belgian Bank in Digital Solutions’ in 2023 and, more importantly, the average rating of
4.6/5 that our customers give our app, as encouragement that we are on the right track in expanding
our digital hub.
We care about vulnerable customers for whom the pace of digital transformation is too rapid,
and we support them with coaching, helping them to make best use of our channels to meet their
specific needs. We are the driving force behind DigitAll, a coalition of more than 110 companies and
organisations working towards greater digital inclusion in Belgium.
In parallel with digital accessibility, we encourage social inclusion by creating growth opportunities
through suitable financing. We have integrated microStart’s specialised microloans into BNP Paribas
Fortis’ commercial offering to extend their reach and provided training in microloans to more than
600 employees. Together with Matexi, we launched HappyNest, an arrangement whereby prospective
buyers rent a sustainable energy-efficient new-build home and, after a few years, have the opportunity
to buy it. We granted Inclusio a 15 million euros social loan to refinance its activities in affordable
rental housing, housing and care for people with disabilities and social infrastructure.
We are also playing our part in society’s transition to more sustainable ways of working, living and
moving around. We do this by offering more attractive rates on energy loans, providing expertise to
companies through our Sustainable Business Competence Centre on greening their production methods
and products, and encouraging the electrification of the Belgian vehicle fleet through the leasing and
financing services provided by Arval and Leasing Solutions, among other initiatives. In 2023, almost
a third of Arval’s registered vehicles were electrified (almost half of these were 100% electric) and
by 2026 we aim to achieve electrification across two thirds of the fleet.
Our strategy remains focused on building a sustainable bank with people and technology at its core.
Everything we do is guided by these principles: our investments in IT and Artificial Intelligence to
improve new products and customer satisfaction, the diversification of our distribution channels and
the addition of innovative services to our app.
For years now we have assessed the effectiveness of our initiatives with the Net Promoter Score (NPS),
which measures the customer experience. Results for the Private Banking and Corporate Banking
client segments are very high across the board and significantly above the market average. Priority
clients also give us very good scores, while the NPS results of retail clients have evolved positively,
with the expertise of our employees cited as an important factor when recommending us.
Our ambition to be a financial service provider that always prioritises customer needs would not
be possible without the commitment and flexibility of all our colleagues. The past few months have
demanded a great deal of them, but through it all they have kept their focus on our customers. We
would like to thank them for their efforts and also acknowledge the trust that our customers – both
old and new – continue to place in our bank.
Max Jadot Michael Anseeuw
Chairman of the Board of Directors Chief Executive Officer
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Economic context
In 2023, the Belgian economy suffered aftershocks from
Russia’s invasion of Ukraine in February 2022 and its growth
continued to slow. Nevertheless, Belgium’s GDP still rose by
1.5 %, after growth of 3.3 % the previous year. There were very
welcome developments in energy prices which, after peaking
in autumn 2022, fell gradually throughout 2023, leading to
a fairly impressive fall in inflation. Belgium started the year
with inflation running at 8 %, but by December this had fallen
to 1.4 %. Since inflation is calculated by measuring current
prices with those one year previously, this sharp fall was
due to a high base for comparison. However, the decline in
energy prices was real: the price of 1 megawatt hour of gas
fell from 350 euros in October 2022 to less than 50 euros in
December 2023, while the price of electricity dropped from
800 to 100 euros.
Despite general expectations to the contrary, Belgian GDP
growth remained positive due to consumer spending, which
was underpinned by household real incomes remaining firm
as a result of the automatic index-linking of wages and social
benefits. In many countries where such mechanisms do not
exist, the spectacular surge in prices meant that household
real incomes fell significantly, and this explains why Belgium
was more resilient than neighbouring economies in 2023:
Germany and the Netherlands saw economic growth slow
much more sharply, and even ended 2023 in recession.
Belgian consumer confidence improved steadily throughout
the year, helped by the rapid decline in energy prices, the
certainty that real incomes would not fall, and a firm jobs
market. However, strong domestic demand led to a deteriora-
tion in Belgium’s trade position, with exports clearly taking a
hit as high inflation inevitably caused companies to become
less competitive.
The construction industry suffered from higher interest rates,
as it did all around the world, and although residential real
estate prices did not fall in Belgium, the number of transac-
tions declined drastically. House price growth, which had
peaked at over 8 % in 2021 in very strong market conditions,
slowed sharply and ended 2023 at only 1 %. However, this
confirms the robust nature of Belgium’s residential real estate
market, since higher interest rates caused prices to fall in
many other countries.
The Belgian jobs market also remained relatively buoyant,
although the unemployment rate rose slightly from the third
quarter onwards. Confidence levels among business leaders
fell during the year, probably as a result of rising interest
rates and the worsening geopolitical situation in the Middle
East since 7 October 2023. Jobs are harder to find than before
because companies are concerned about their competitive-
ness and future prospects. The unemployment rate of 5.6 %
continues to hide the ongoing wide gap between job vacancies
and jobseekers, as is the case in many countries where the
pandemic has prompted people to take a different approach
to working in many sectors. Staff shortages are still a reality
in numerous sectors, including construction, healthcare,
transport and retail.
The US economy did well in 2023 because of its energy inde-
pendence. When war broke out in Ukraine, the US quickly
helped wean Europe off Russian gas and has ever since been
selling impressive quantities of liquefied gas at extremely
high prices, making billions of dollars of profit in the process.
Unsurprisingly, the unprecedented surge in prices all around
the world caused sharp increases in interest rates. The US
central bank continued to raise its main official rate, from
0.25 % in March 2022 to 5.5 %, while in the EU, 10 rate hikes in
15 months took the ECB’s deposit rate from 0 % to 4 %. At the
same time, the main central banks continued to withdraw the
liquidity they injected into the banking system following the
COVID crisis, allowing them to reduce the size of their balance
sheets. However, those reductions made it harder for govern-
ments to fund their deficits, forcing them to find buyers other
than central banks for their bonds. This led to some tension in
the US, where the public finances have deteriorated sharply
due to economic support measures put in place by President
Biden to soften the blow of high inflation. This is partly why
US long-term interest rates continued to rise in the first half
of 2023, whereas they stabilised in Europe.
2022 had brought an extraordinary surge in long-term inter-
est rates, which caused bond markets around the world to
plummet. 2023 was a much quieter year, with yields remaining
stable overall in the first part of the year, before starting to
fall – sometimes sharply – when lower inflation numbers
started to be announced. The last few weeks of 2023 saw a
real wave of euphoria in both bond and equity markets, with
many investors placing bets on when the first central-bank
rate cuts would happen.
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
The decline in long bond yields is good news in terms of
managing Belgium’s public finances, which still show excessive
deficits and a debt/GDP ratio of over 105 %.
Finally, the Belgian banking sector continued to play its role
in financing the economy, although the surge in interest rates
considerably slowed growth in lending. In 2023, loans out-
standing rose to 253 billion euros among personal customers
1
Excluding the 600,000 active customers of bpost banque and Fintro customers.
and to 153,3 billion euros among businesses. Although the
increase was much smaller than in 2022, when lending rose by
over 8 %, this still represents year-on-year growth of 1.5 % in
loans to personal customers and 4.5 % in loans to businesses,
which remains reasonable given the highly uncertain economic
conditions and the increase in interest rates.
Core Businesses
BNP Paribas Fortis
BNP Paribas Fortis includes an important part of the
Commercial, Personal Banking & Services (CPBS) as well as
the Corporate & Institutional Banking (CIB) activities of the
BNP Paribas Group in Belgium. On 31 December 2023, the
bank employed a total of 10,351.5 FTEs in Belgium.
Commercial & Personal Banking in Belgium
BNP Paribas Fortis’ Commercial & Personal Banking activities
comprise banking services to a range of client types, including
individual customers, self-employed people and those in the
liberal professions, small and medium-sized companies, local
businesses, corporate clients and non-profit organisations.
BNP Paribas Fortis is the number-one bank for retail custom-
ers in Belgium in terms of market share and it has a strong
market position among professionals and small businesses.
BNP Paribas Fortis is also the leading private bank in Belgium. It
ranks number one in Corporate Banking, offering a full range of
financial services to corporate clients, public-sector entities and
local authorities. With its dedicated teams, BNP Paribas Fortis
aims to fund the specific needs of its customers and make an
active contribution to the development of the Belgian economy.
Since 1 January 2023, BNP Paribas Fortis has a new commer-
cial organisation that has been redesigned to meet customer
expectations more effectively:
Retail Banking, with 2.9 million customers
1
, serves
individual customers, self-employed people and small
businesses with a multi-disciplinary team;
Affluent & Private Banking, with 0.37 million active clients,
serves individuals with more than 85,000 euros of assets,
along with self-employed people and firms in the liberal
professions, through dedicated relationship managers.
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;
Corporate Banking, with 87,000 clients, serves businesses
with more complex needs through dedicated relationship
managers. The Enterprises business line serves small
and medium-sized businesses while Corporate Coverage
handles large corporations, public-sector entities and
institutional clients.
BNP Paribas Fortis serves its customers through various
networks, as part of a hybrid banking strategy that combines
physical branches and digital channels:
308 branches (including 132 independent branches)
organised into four regions, handling individual customers,
self-employed people and small businesses. In addition,
there are 193 Fintro branches operated under franchise,
and 656 sales points in bpost branches;
31 dedicated private banking centres including one remote
centre and two Wealth Management centres;
Specialist teams in Brussels dealing with large corpora-
tions, public-sector companies and institutional clients,
along with a network of 14 Business Centres across
Belgium for medium-sized companies and dedicated
relationship managers in the branch network for small
Corporate Banking customers;
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
A digital platform comprising online banking services (Easy
Banking) and the Easy Banking App (2.75 million active
users in total, including Fintro). Easy Banking Business
is the online banking platform for businesses and self-
employed people. PaxFamilia, a secure platform offering
customers tools for managing, monitoring and passing
on their wealth, has 29,700 active contracts. This offering
is supplemented by digital bank Hello Bank!, which has
more than 537,000 customers. These digital platforms
are constantly improved through active collaborations
with fintechs, an example being the development of a
high-performance budget management tool with TINK;
A
network of 608 ATMs (including Fintro), supplemented by
973 cash machines run by Batopin, a joint venture between
BNP Paribas Fortis, KBC, ING and Belfius, each of which owns
a 25 % stake. Batopin is installing bank-neutral CASH points
across Belgium in locations with high customer footfall.
BNP Paribas Fortis makes itself available to its customers
through the Easy Banking Centre, which handles up to 60,000
customer calls per week.
The quality of the service BNP Paribas Fortis provides to its
customers was acknowledged several times in 2023. The
bank was named ‘Best bank for digital services in Belgium’
by Euromoney, ‘Bank of the year in Belgium by The Banker,
‘Best private bank in Belgium’ by PWM-The Banker and ‘Best
bank in Belgium’ by Global Finance.
In 2022, BNP Paribas Fortis acquired bpost’s 50 % stake in
bpost bank, taking its total interest to 100 %. bpost and
BNP Paribas Fortis also signed an exclusive, seven-year com-
mercial agreement. As part of this agreement, bpost is offering
BNP Paribas Fortis services and products in its network of post
offices. Since 22 January 2024, bpost bank has been integrated
within BNP Paribas Fortis and bpost bank customers have
joined BNP Paribas Fortis. The bpost bank brand has now
disappeared from high streets and post offices and has been
replaced by the BNP Paribas Fortis brand and logo.
Retail Banking
2023 was a major turning point for BNP Paribas Fortis, with
the introduction of a New Commercial Organisation: this is
intended to improve the service we provide to our customers
by offering them new service models that better fit their needs.
The New Commercial Organisation is based around three new
customer segments: Retail Banking, Affluent & Private Banking
and Corporate Banking. In terms of the practical implications
for our customers, the new organisation is resulting in new
service models and solution packs.
Greater accessibility and a proactive approach
In early 2023, we began a large-scale direct communication
campaign aimed at all Retail Banking customers, explaining
the changes in our services and the ways in which our branch-
based multi-disciplinary teams will be better able to guide and
advise them proactively for all of their banking and insurance
needs. This includes making it easier to make appointments
directly with experts in the areas in which customers – both
individuals and businesses – need help. Internally, our teams
of in-branch advisors have gradually adopted Agile princi-
ples, in order to create a more effective and flexible way of
working. As regards the Easy Banking Centre, teams have been
strengthened so that they can proactively suggest solutions
to our customers.
We are continuing to develop new digital solutions, both on
our Easy Banking Web site, the content of which has been
entirely updated, and our Easy Banking App, particularly with
the addition of the Easy Cashback loyalty programme.
We maintained our digital inclusion efforts by resuming in-
branch digital workshops, along with our work to prevent
phishing- and fraud-related risks. We developed new content
and articles on our public website and carried out email
communication campaigns. We also developed new ways of
communicating via Facebook and Instagram.
September brought a publicity campaign about our new Easy
Guide and Easy Go packs, which allow individual customers
to choose which accounts and cards they want, but also how
they wish to interact with the bank depending on their needs:
Easy Go covers simple requirements and allows customers to
interact directly with an advisor in a post office, while Easy
Guide covers more complex needs, allowing customers to
make appointments and get support from multi-disciplinary
teams in-branch. The aim of the campaign was to guide cus-
tomers through the various options as effectively as possible
before the new packs came into force on 1 January 2024.
Protecting our customers, today and tomorrow
As regards insurance and pensions, we continued our efforts
to help customers insure their possessions, businesses, them-
selves and their loved ones more effectively through a more
integrated cross-selling approach, but also by providing new
digital solutions that make their lives easier. As in 2022, our
Car Repair days allowed customers to have small repairs done
to their cars for free by our partner AG.
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
For business customers, we continued to integrate AG’s
solutions into our portfolio and carried out communication
campaigns focusing on the good fit between our lending and
insurance solutions, particularly in terms of helping businesses
to optimise their liquidity.
Helping customers move towards a sustainable future
At a time when our economy and society are shifting rapidly
towards greater sustainability, our role in supporting that
move was central to our concerns more than ever in 2023. We
seek to do this not only through the specific loans we grant,
but most importantly by informing and helping our custom-
ers. In the mobility space, for example, we held webinars
and published articles involving experts from Arval to give
businesses a better understanding of tax changes.
As regards real estate, we carried out several direct com-
munication campaigns and one paid media campaign in
three high-profile waves – in February/March, June/July and
October/November, across radio, TV, online, social media
and digital channels – and installed in-branch displays,
highlighting our financing solutions for customers wanting
to make their homes more sustainable by refurbishing and
insulating them. Finally, we introduced a special service for
co-owner associations to help them finance projects such as
those involving structural and sustainable renovation work
and energy-efficiency upgrades.
Helping people start their own businesses
As a leading player in the business banking market, our role
is to be a driving force in the local economy, particularly by
helping young entrepreneurs set up their own businesses.
In 2022, we started a comprehensive review of the way we
attract people starting their own businesses, and we stepped
up those efforts in 2023. We completely repackaged our offer-
ing, which now revolves around a Starter Kit that includes
various banking, insurance, pension and payment solutions,
but also marketing solutions and digital tools, as part of a one-
stop-shop approach. In particular, we completely revised the
Starters section of our Easy Banking Web site and carried out
communication campaigns aimed at promoting our ecosystem
of partners and solutions. We also made it easier for people
to access help and support during the early stages of setting
up their business through dedicated specialists in the Easy
Banking Centre’s Easy Starters Team.
In addition, we continued our media strategy, investing in
both the BNP Paribas Fortis and Hello bank! brands, in order
to promote our solutions and approaches in an integrated
way among pre-starters and starters. This involved radio,
digital and social media advertising campaigns. BNP Paribas
Fortis emphasised the initial support provided by its specialists
in the Easy Starters Team, while Hello bank! highlighted its
integrated digital solution, which allows people to start setting
up their business account and request a company registration
number and VAT number as part of a single digital flow.
Affluent & Private Banking
This new client segment now covers our Priority Banking,
Private Banking and Wealth Management services, which are
all based on close collaboration between clients and their
relationship managers. The main innovation in these service
models is a new approach to relationships: clients can now
entrust their private and business banking needs to a single
relationship manager.
New approach to relationships and stronger partner-
ships with our clients
With the introduction of our New Commercial Organisation,
Priority Banking, Private Banking and Wealth Management
clients can now have a single contact person for all of their
private and business banking needs. This new approach was
the subject of a radio, digital and social media campaign,
aimed at establishing its market position.
In addition, we pay particular attention to the specific needs
of people working in the liberal professionals, and particularly
future medical doctors and specialists. From the start of their
studies, we provide them with special support, working with
them to build their future. We organised special events to
publicise our solutions among medical students in Brussels,
Ghent and Leuven.
In 2023, in highly volatile market conditions resulting from
the conflicts in Ukraine and Israel/Palestine, we stepped
up our efforts to provide information and insight regarding
the geopolitical, economic, financial and social contexts, in
order to strengthen ties with our clients still further. To do
this, we continued to develop and post expert content on our
exclusive My Experts platform, but also via market flashes
when market events took place. We send our clients in-depth
analysis from our economists once a year in the form of an
Economic Outlook.
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BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Growing our clients’ wealth
To offer our clients the most effective support with their
investment strategies, we regularly update our portfolio of
solutions.
Accordingly, we have started to contact our clients to offer
them our IRIS and Serenity solutions instead of our Investment
Advice and Portfolio Advice solutions, which have been with-
drawn. We now offer IRIS to our Priority clients as well. To
accompany the transition, we have produced new brochures
and videos to explain the changes.
Against a background of higher interest rates, we have worked
with all of our clients, helping them to build and optimise
their assets, depending on their profile, over the full cycle
from savings to investments, and regardless of whether they
are novice or experienced investors.
Protecting our clients, their families and their assets
As regards protecting our clients, we carried out new
campaigns inviting customers to contact their relationship
managers or insurance specialists in order to review all of
their existing insurance policies and make improvements
where needed.
As regards managing and protecting their assets, we continued
to publicise our innovative PaxFamilia solution among cus-
tomers who are not yet using it. As regards monitoring and
managing client portfolios, in addition to the aforementioned
market flashes, we began an overhaul of the video reports we
produce regarding the performance of investment products,
so that they comply with new investment directives.
Corporate Banking
With its well-developed, diversified and integrated business
model and services, 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, institu-
tional investors, public-sector entities and local authorities.
Corporate Banking (CB) has an extensive and diversified
clientele among large and medium-sized companies and is
the market leader in these two categories.
Our Relationship Managers are central to Corporate Banking’s
relationship model. They can call upon a wide variety of
experts in all kinds of banking solutions to provide bespoke
services to their clients. Within the Corporate Banking divi-
sion, the Enterprises team serves small and medium-sized
companies through a network of 14 Business Centres and a
presence across our Belgian branch network. Relationships
with large corporates, financial institutions and public-sector
entities are handled by dedicated central teams based at our
head office in Brussels.
Corporate Banking provides a wide range of specialised solu-
tions and services – both traditional and bespoke – and draws
on the BNP Paribas group’s international network across more
than 60 countries, enabling it to continue meeting the specific
financing, transaction, investment and insurance needs of its
clients in Belgium and abroad.
A financial partner helping corporates navigate
uncertainty
In 2023, Corporate Banking continued to play a major role in
providing support to the Belgian economy. Our Transaction
Banking unit was able to provide robust assistance to clients
seeking to navigate supply-chain disruptions brought about
by geopolitical events, while our Global Markets specialists
helped clients hedge their risks with regard to interest rates,
exchange rates and inflation. Our Private Equity teams, mean-
while, continued to invest in Belgian companies throughout
the year, in line with our 2025 Strategy.
An organisation that adapts to achieve con-
tinuous growth
During the year, the Corporate Banking division pursued its
roadmap for achieving digital transformation and improving
the efficiency of its processes. CB also enhanced its service
model by accelerating the rollout of digital features and
remote contact channels.
Our partnerships with EMAsphere and Climact are good
examples of how CB constantly adds value for its clients by
broadening the scope of the solutions it offers them beyond
the confines of traditional banking services.
2023 was also the year when the bank introduced its New
Commercial Organisation: as a result, businesses with a dedi-
cated relationship manager have been covered by Corporate
Banking since January 2023.
A trusted partner to help businesses move towards
more sustainable business models
With its Sustainable Business Competence Centre, Corporate
Banking is firmly positioning itself as a Sustainable Corporate
Bank. During the year, CB stepped up its efforts to help clients
make the transition to more sustainable practices and busi-
ness models and to invest in the transformative projects
needed to address the huge challenges of climate change and
biodiversity loss, with specific attention to the areas of energy
transition, decarbonisation, biochemicals and the circular
and regenerative economy. CB also enhanced its expertise
17
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
regarding the EU Green Deal regulatory framework and in the
environmental, social and governance (ESG) field.
In 2023, for the fourth consecutive year, Corporate Banking
was named ‘Best Investment Bank in Belgium’ by Euromoney.
Arval
Arval is a major player in long-term vehicle leasing and a spe-
cialist in mobility solutions. As a specialist business belonging
to BNP Paribas’ Commercial, Personal Banking & Services divi-
sion, Arval is central to the group’s integrated model and its
new ‘BNP Paribas Mobility’ brand. Arval provides customised
mobility services to business clients – from major multination-
als to small and medium-sized enterprises – as well as to its
partners, their employees and individual customers.
At the end of 2023, Arval had almost 8,400 staff members in
the 29 countries where it operates, and was leasing around
1.7 million vehicles (an increase of 7 % compared with the
end of 2022) to 300,000 customers. It also had almost 20,000
worldwide users of mobility solutions that offer an alternative
to private cars, such as car-sharing, mobility payment cards
and bicycle rental. Arval is Europe’s second-largest player in
multi-brand long-term vehicle leasing, ranking number one
in Poland, number two in France, Spain, Italy and Belgium,
and number three in the Netherlands
2
. It also benefits from
strategic partnerships through the Element-Arval Global
Alliance, the world leader in this sector with a total of more
than 4.4 million vehicles in 56 countries.
In 2023, Arval continued to provide its customers with innova-
tive products tailored to their needs, particularly in terms
of supporting energy transition in their vehicle fleets. To
encourage the adoption of electric vehicles, Arval announced
its new Arval Charging Services offering, through which both
businesses and individual customers can lease an electric
vehicle and charger together. Arval’s aim is to lease 350,000
battery electric vehicles and 700,000 electrified vehicles in
total by 2025, which will help it to achieve its target of cutting
fleet CO2 emissions by 35 % compared with 2020. At the end
of 2023 it already leased more than 166,000 battery electric
vehicles, up 85 % relative to 2022.
2
Source: Frost & Sullivan figures from end-December 2022, taking into account the ALD/LeasePlan merger that was completed in 2023.
BNP Paribas Leasing Solutions
BNP Paribas Leasing Solutions is a leading European provider
of business equipment. The company helps both companies
and people working in the liberal professions to develop their
businesses by providing them with leasing and financing solu-
tions, together with a range of services designed to meet their
specific 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.
With 70 years of experience, BNP Paribas Leasing Solutions
supports the real economy by financing purchases of all major
types of business and professional equipment, including in the
agricultural, medical, logistics and IT sectors. It also helps its
clients make the transition to more environmentally friendly
practices by financing purchases of equipment designed to
make a positive impact as well as circular economy initiatives.
Clients and partners rely on BNP Paribas Leasing Solutions’
market expertise, knowledge of assets and advisory services
to drive their growth, transformation and transition to a low-
carbon circular economy.
In 2023, BNP Paribas Leasing Solutions was named ‘Best
Energy Transition Financing Program of the Year’ by Leasing
Life, the leading magazine reporting on the leasing profession
in Europe.
BNP Paribas Leasing Solutions works directly with corporate
clients, leveraging the extensive BNP Paribas network to offer
tailored leasing solutions. Additionally, BNP Paribas Leasing
Solutions collaborates with manufacturers and their distri
-
bution networks to provide seamless financing options for
their customers.
18
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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.
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, in which
it holds a 48.7 % stake via TEB Holding and BNP Paribas Fortis
Yatırımlar Holding A.Ş. On 30 September 2023, TEB, which
provides the full range of BNP Paribas Group Retail products
and services in Turkey, was the country’s tenth-largest deposit-
taking bank in terms of market share in deposits and loans.
Retail Banking
In 2023, TEB continued to diversify and enhance its range
of products and services in line with its strategy of offer-
ing customer-oriented solutions. TEB also expanded its
offering through its digital channels. TEB’s methods focus
on people-centric design and customer journeys, and it runs
advocacy programmes designed to obtain and make good use
of customer insights. The meticulous monitoring of customer
habits and customer acquisition channels play a key role in
this. In addition to transactional and relational Net Promoter
Score (NPS) studies, TEB continues to gather insights and
improve the customer experience through ad-hoc research
and communication with customers through all channels, with
approximately 200,000 interactions recorded in 2023. 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 sixth year in a row.
At the end of 2023, TEB’s digital channels were serving
approximately 2.5 million active customers, with 87 % of
personal loans and 84 % of time deposit accounts opened
via the CEPTETEB Digital Banking platform. In all, 57 % of
CEPTETEB’s users became customers through a 100 %-digital
remote acquisition process. CEPTETEB continued to develop
its digital channel experience during the year, expanding its
customer base and launching new features on CEPTETEB
Mobile. Incorporating the latest technology and innova-
tions, CEPTETEB also features a Telepati chatbot and Fon
Danışmanım (My Fund Advisor), an automated, algorithm-
driven portfolio builder for funds. The customer experience
and benefits offered by CEPTETEB Süper, which speeds up
the online shopping process and gives customers access to
special discounts, were enhanced, and the number of custom-
ers logging in to CEPTETEB Süper increased by 135 % in 2023
compared with 2022.
At the end of 2021, TEB launched a Currency Protected TRY
Time Deposit Account, a YUVAM Account (a Turkish lira account
that encourages non-residents and their companies abroad to
bring their savings to Turkey by offering a central-bank guar-
antee against exchange-rate volatility) and a Foreign Currency/
Gold Conversion TRY Time Deposit Account, becoming one of
19
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
the first banks in Turkey to offer these products via a mobile
app. By the end of 2023, TEB’s market share in Currency
Protected TRY Time Deposit Accounts had reached 1.58 %.
Retail customers are offered Marifetli accounts, an overnight
time deposit account in which interest is reinvested each day.
The account offers attractive introductory interest rates and
the option of earning a higher rate of interest by investing in
a mutual fund. TEB’s Retail Banking business also focuses on
certain occupational groups such as lawyers: TEB has achieved
an 18 % market share among practising lawyers in Turkey with
its dedicated service and package.
To raise awareness regarding sustainability and minimise the
environmental impact of its banking activities, TEB carried out
campaigns with various business partners around four themes
in 2023: mobility, the circular economy, environment and social
responsibility. With the Marifetli account, part of the income
generated by the bank was transferred to organisations that
carry out sustainability efforts such as 1 % for the Planet.
Private Banking
TEB Private Banking continued to develop its Angel Investment
Platform, which is 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 2023, TEB
Private Banking won several prestigious global awards, includ-
ing Euromoney’s ‘Turkey’s Best Private Bank – International’
award, World Finance’s ‘Best Private Bank in Turkey’ award
(for the fifth time) as well as International Finance’s ‘Most
Innovative Private Bank’ award (for the sixth time).
SME Banking
TEB’s SME Banking approach follows the Growth, Technology
and Sustainability (GTS) strategy of BNP Paribas. TEB is
seeking growth by increasing its market share with a special
focus on high-quality assets, collateralised and secured
loans, local government banking and start-up banking.
Greater automation, process optimisation and digitalisation
are harnessed to create more effective and comprehensive
digital tools and offerings, such as TEB’s multi-award-
winning mobile app CEPTETEB İŞTE, which provides fast and
easy financial transactions for SME, corporate and business
customers, including day-to-day banking, cash management
and investment transactions. TEB SME Banking offers sustain-
able financing solutions to SMEs and municipalities for the
financing of green projects in areas such as renewable energy,
energy efficiency, the circular economy, waste management
and renewal projects to reduce carbon emissions.
TEB SME Banking has used a consultant banking approach
since 2005, offering SMEs exclusive tailor-made financial and
non-financial products and services for the best customer
experience. As well as a wide range of products including trade
finance, project financing, derivatives and supplier financing,
140 SME consultants assess SMEs not only from a financial
perspective but also in terms of their production methods,
sales and marketing, organisational structure, management
strategy and human resources.
TEB SME Banking launched its Start-up Business Banking line
in 2013, the first bank in Turkey to provide dedicated services
to start-ups with the aim of promoting entrepreneurship. As
part of this business initiative, financial and non-financial SME
products and services were redesigned specifically for technol-
ogy entrepreneurs. Customer representatives in eight branches
have been thoroughly trained to better understand the needs
of start-up and technology companies, with particular atten-
tion to cash flow management, payment capacity, optimal loan
terms, special financing options and free-of-charge banking
transactions.
The TEB Start-up Business Banking line has matched hun-
dreds of start-ups with corporates, bringing them together at
demonstration events, conferences and special ‘Start-up to
Corporate’ (S2C) events to find collaboration opportunities.
TEB has also extended its matchmaking efforts to the inter-
net and created the online platform startteb.com to inspire,
connect and match technology start-ups, SMEs, innovative
corporates and investors. On the platform, start-ups offer their
products and services while corporates post their projects and
needs, allowing each side to identify potential collaborations.
The bank has also established TEB Start-up Houses, first in
Ataşehir, İstanbul and then two years later in seven other large
cities, together with the Turkish Exporters Assembly TİM. At
TİM-TEB Start-up Houses, start-ups and technology companies
have access to consulting, mentorship and networking services
as well as the opportunity to meet with potential investors
and customers.
20
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Corporate Banking
TEB Corporate Banking provides services including international
trade finance, structured finance, cash management, credit ser-
vices and currency, interest-rate and commodity risk hedging.
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. One Business
Centre in Istanbul is specifically designed to meet the require-
ments of multinational companies.
In a fast-moving world in which technological developments
are happening all the time and customer expectations and
requirements are changing rapidly, TEB Corporate Banking
focused during 2023 on maintaining the highest level of product
quality and overall customer experience 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.
BNP Paribas Fortis’ social responsibility
Our Corporate Social Responsibility (CSR)
actions are based around four themes:
Transition to carbon neutrality
In 2021, BNP Paribas signed up to the Net-Zero Banking Alliance,
thereby making a commitment to aligning its activities with the
trajectory required to become carbon-neutral by 2050.
In its second climate report, BNP Paribas set out new targets for
reducing the intensity of greenhouse gas emissions arising from
its lending activities in three of the highest-emitting sectors:
steel, cement and aluminium. The agriculture, shipping, avia-
tion and real estate (commercial and residential) sectors will
follow in 2024.
Natural capital and biodiversity
Determined to help protect biodiversity, BNP Paribas adopts
targeted policies designed to combat problems such as defor-
estation and takes part in coalitions such as the Taskforce for
Nature-related Financial Disclosures, which has published
recommendations regarding a common vocabulary to be used
by companies when making disclosures on their biodiversity-
related risks and opportunities. BNP Paribas has also decided
to allocate 4 billion euros of funding to biodiversity protection
initiatives by 2025. Also by 2025, the Group will assess all of its
business customers based on biodiversity criteria. At the end of
2023, BNP Paribas formed a partnership with Naturalis, a world
leader in terms of increasing our understanding of biodiversity.
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 reconditioning of
end-of-life products, the circular economy reduces consump-
tion of non-renewable resources and the production of waste.
BNP Paribas Fortis was appointed Sustainability Coordinator
alongside another bank in relation to a 400 million euros
Sustainability Linked Loan (SLL) for Renewi. An SLL is a loan
with no specified purpose but whose interest rate is linked to
improvements in a company’s ESG performance indicators.
Renewi is a waste recycling company that stands out through its
approach of creating value from waste, rather than burning or
burying it. The interest margin on the loan depends on Renewi’s
achievement of objectives in terms of promoting the circular
economy, reducing carbon emissions and ensuring the safety
of its employees.
Inclusiveness
BNP Paribas Fortis is determined to help combat inequality of
all kinds and promote the development of an inclusive society.
In a world where digital technology is playing an increasingly
central role, there is a risk of a growing divide between those
that have the necessary skills and tools and those that do
not. For this reason, in late 2020 BNP Paribas Fortis launched
DigitAll, a Belgian ecosystem – bringing together social welfare
organisations, public bodies and private-sector businesses – for
the purpose of combating digital exclusion. In 2023, DigitAll
launched a new awareness-raising campaign regarding the risk
of digital exclusion, which affects a growing proportion of the
Belgian population. DigitAll also came second in the inclusion
and diversity category in the 2023 Trends Impact Awards.
21
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
BNP Paribas Fortis’ sustainability policy has
five strategic priorities:
Sustainable and responsible investing
3
At the end of 2023, 42.3 % of off-balance-sheet assets under
management were invested in financial instruments bearing
Febelfin’s Towards Sustainability label, representing a total
amount of 42.3 billion euros. 65 % of all new investments
in funds carried out in 2023 were in products that meet the
Towards Sustainability criteria.
Impact Together – the corporate philanthropy fund linked to
some of the bank’s sustainable investments, under the umbrella
of the King Baudouin Foundation – provided 4.2 million euros of
support to 40 non-profit organisations in 2023. 1.7 million euros
was allocated to strengthening the structure of organisations
that address social inclusion matters. The 21 organisations
selected will receive support over a period of three years. The
fund also offers purely financial support to organisations with
a social or environmental purpose. In 2023, 14 organisations
received a total of 2 million euros of support for projects
aimed at increasing the energy efficiency of their buildings
or implementing a more environmentally friendly mobility
plan. In addition, a total of 500,000 euros was donated to five
organisations that BNP Paribas Fortis has been supporting for
a long time: Natagora, Natuurpunt, microStart, the Red Cross
and the Belgian Foundation against Cancer.
Sustainable real estate
BNP Paribas Fortis applies the European Union’s Energy Efficient
Mortgage Label (EEML) label, which identifies mortgages with
an environmental purpose. At end-2023, the outstanding
amount of EEML mortgage loans granted by BNP Paribas Fortis
and bpost bank was 6 billion euros, representing 9 % of all
mortgage loans granted.
In 2023, 45 % (for an amount of 453 million euros) of refurbish-
ment loans were Energy Loans, i.e. intended to finance works
designed to save energy.
3
For investments or ‘investment products’ taking the form of investment funds or investment-based insurance policies, BNP Paribas Fortis uses the following
definitions:
■ In sustainable investments/investment products, at least 15 % of assets consist of investments with environmental or social objectives.
■ Responsible investments/investment products take into account the main negative impacts on sustainability factors but either do not pursue environmental
or social objectives or have less than 15 % of their assets consisting of investments with environmental or social objectives.
For equities, bonds and structured bonds, BNP Paribas Fortis uses the following definition:
■ Sustainable investments are those where the issuing company pursues an environmental or social objective.
■ Responsible investments are those where the issuing company takes into account the main negative impacts on sustainability factors.
4
Clients of BNP Paribas Fortis SA/NV (including loans granted by Leasing Solutions to these clients) and the Factoring businesses. ESG Loans are part of the
financial assets at amortised cost (note 5.e).
2023 also brought the launch of HappyNest, in partnership
with property developer Matexi. HappyNest allows prospective
homeowners to rent a brand-new energy-efficient home for a
few years before buying it. Part of the rent paid is deducted
from the purchase price.
BNP Paribas Fortis’ head office at Montagne du Parc in Brussels
has received the Austrian Green Planet Building Award, an
Austrian quality label in the sustainable construction field.
Since 2015, electricity from renewable sources has made up
100 % of the electricity used by BNP Paribas Fortis in all its
central buildings, non-independent branches and regional
headquarters. It has reduced its CO2 emissions per full-time-
equivalent staff member by 55 % since 2019. It has achieved
this mainly by focusing on the energy efficiency of its buildings
– which account for around 80 % of its direct emissions – as
well as optimising its real-estate portfolio and reducing
business travel.
Sustainable transition for businesses
As at end-December 2023, the amount of ESG (Environment,
Social, Governance) loans to BNP Paribas Fortis business cus-
tomers
4
totalled 10.1 billion euros (including lending that meets
the definition of Sustainability-Linked Loans). BNP Paribas Fortis
granted 5.6 billion euros of loans supporting the sustainable
transition of businesses, supporting projects in the fields of
renewable energy, recycling, sustainable construction, property
renovation and soft mobility. In 2023, BNP Paribas Fortis also
granted 3.507 billion euros of loans to the non-market sector:
hospitals, schools, universities, non-profit organisations and
social enterprises.
Corporate clients are able to draw on the skills of our staff
at the Sustainable Business Competence Centre (SBCC) and
benefit from their support with sustainability projects. In 2023,
the SBCC assisted with 67 loan requests totalling 330 million
euros of sustainable financing.
22
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 693
proposed transactions submitted to the Company Engagement
and Compliance team for in-depth analysis during 2023, nine
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 environmentally-friendly
modes of transport. In 2023, the bank entered into 1,588
agreements to fund soft modes of transport such as bicycles,
electric bikes, electric scooters and hoverboards.
33 % of loans granted to buy new cars were for low-emission
vehicles (less than 50g of CO2 per km). At end-2023, the
amount of green car and bicycle loans to BNP Paribas Fortis
customers totalled 169 million euros.
BNP Paribas Fortis leasing subsidiary Arval provides opera-
tional leasing and consultancy services to business clients,
to help them adopt alternative mobility solutions such as
bike leasing (electric or non-electric bicycles). A total of 1,715
bicycles were delivered in 2023, taking the total number of
leased bicycles to 4,073.
As at 31 December 2023, 15 % of the Arval fleet in Belgium was
made up of 100 %-electric vehicles, which accounted for 37 %
of total orders. 31 % of Arval-managed vehicles registered in
2023 were 100 %-electric.
Meanwhile increasing numbers of BNP Paribas Fortis staff
members are opting for a rechargeable hybrid or 100 %-elec-
tric car. At end-2023, 46 % of private staff vehicles leased
from Arval were electric vehicles, either 100 %-electric or
rechargeable hybrids.
Social inclusiveness
Social enterprises aim to provide solutions to a specific social
or environmental problem. They operate in areas such as
sheltered work, the circular economy and energy efficiency.
BNP Paribas Fortis supports, advises, finances and insures
these social enterprises. At the end of 2023, the bank was
supporting 466 such companies and the outstanding amount
of its loans to them was 119 million euros.
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 people 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 granted 7,185 loans worth a total of 61 million
euros to micro-entrepreneurs, thus supporting 5,180 business
projects and enabling the creation or continuation of over
9,800 jobs. In 2023, it granted 491 new micro-loans totalling
5.6 million euros, and microStart’s expert staff also provided
1,768 micro-entrepreneurs with practical assistance, entirely
free of charge. In 2023, microStart was included in the bank’s
commercial offering and accordingly more than 600 of its staff
members received training.
The Digital Inclusion & Human Rights chair established in 2021
by the VUB (Vrije Universiteit Brussel) and BNP Paribas Fortis
produced its first results: mapping the service digitalisation
rates of 25 banks and making recommendations to improve
the digital experience for customers.
The bank is pursuing its policy of commitment to inclusivity
and diversity. Action plans implemented by the bank’s various
entities are paying off, as shown by the gradual or total disap-
pearance of certain glass ceilings.
The bank’s cultural inclusion plan was launched in 2023.
The plan was preceded by an analysis and a survey of staff
members, and resulted in a progress report regarding cultural
inclusion within BNP Paribas Fortis. The first initiatives in this
area have begun, such as workshops on unconscious bias and
racial microaggressions.
7,830 staff members – 80 % of the bank’s workforce – took
part in the BNP Paribas Group survey about their views on the
Code of Conduct and the Diversity & Inclusion policy. 92 % of
them said they felt able to be themselves and felt accepted
and seen. As in the previous edition of the survey in 2021, this
question attracted the most positive responses, showing that
inclusivity remains a very prominent value within the bank.
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 half a working day to volunteer work. In 2023, as part of
the #ourjob2 campaign, staff members (of BNP Paribas Fortis
and certain entities of BNP Paribas in Belgium) donated 11,078
23
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
hours of their time across 4,357 sessions, including 2,837 vol-
unteering sessions. For each session, 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 132,661 trees have
been planted since 2017. In addition, for each person taking
part in the 1Millionhours2Help programme, the bank funds
the restoration of one square metre of natural environment
by either Natagora or Natuurpunt. The area covered by this
initiative so far amounts to 10,545 m
2
.
2,300 staff members took part in the bank’s first-ever volun-
teering week in 2023.
Meanwhile the BNP Paribas Fortis Foundation Fund, under the
umbrella of the King Baudouin Foundation, continued 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. To mark the programme’s fifth anniversary,
four regional events have been held to bring together the
50 non-profit organisations that it has supported since
2018. Since 2010, the BNP Paribas Fortis Foundation has
donated more than 15 million euros to non-profits, including
844,000 euros in 2023.
Since autumn 2023, the bank’s head office has been the home
of Inclusion Lab, a collective space for non-profit organisations
involved in educational projects for children and young people.
A new partnership has been formed with non-profit MolenGeek
as part of the BNP Paribas Women in Tech programme, which
supports non-profits working for gender equality in the digital
sector. Through this support, MolenGeek will enable more
female jobseekers to receive six months of training that will
give them the digital skills they need for their professional
development.
In 2023, BNP Paribas Fortis officially opened its Sustainability
Academy, a training platform for its staff members. The
Academy offers a broad array of training sessions on the
themes of sustainability, the bank’s strategy in this space
and tools specific to participants’ business areas. After the
Sustainability Academy was launched, the first two training
modules had a take-up rate of more than 90 % among the
bank’s staff members.
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) and in
a specific annual report that has been published since 2015.
BNP Paribas Fortis contributes to the BNP Paribas Group’s
strategic initiatives. More information is available in chapter 7
of the BNP Paribas Group’s universal registration document
(‘Information concerning the economic, social, civic and envi-
ronmental responsibility of BNP Paribas’), in its ‘Task Force on
Climate Disclosure (TCFD) report’, and on its corporate website.
Changes in the scope of consolidation
Information on the changes in the scope of consolidation
is provided in note 8.b ‘Business combinations and other
changes of the consolidation scope’ and note 8.k ‘Scope of
consolidation’.
BNP Paribas Fortis credit ratings at 13/02/2024
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 13 February 2024.
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.
24
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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.
Comments on the evolution of the results
BNP Paribas Fortis realised a consolidated net income
attributable to equity holders of 3,095 million euros in 2023,
compared to 3,136 million euros in 2022, down by (41) million
euros or (1)%.
Please note that the comments in the present section have
been written by referring to the financial statements and the
respective notes. For a business oriented analysis, please refer
to the Press Release of BNP Paribas Fortis available on the
corporate website. The analysis in the Press Release focuses
on the underlying evolution, which excludes scope changes
(acquisition, sale and transfer of activities), foreign exchange
impacts and certain material one-off results. By excluding
these effects, the net income attributable to equity holders
increased by 9 % compared to 2022. In the comments in the
present section, we will refer to the scope changes and foreign
exchange impacts when deemed necessary.
Operating income amounted to 4,775 million euros in 2023, up
by 530 million euros or 12 % compared to 2022. The increase
was the result of higher revenues by 911 million euros or 9 %,
higher costs by (429) million euros or 8 % and a lower cost of
risk by 48 million euros or (15 %).
Non-operating items (share of earnings of equity-method
entities, net gain on non-current assets and goodwill) were
down by (316) million euros whereas the corporate income
tax increased by (271) million euros and minority interests
decreased by (15) million euros.
The comparison between 2023 and 2022 results was impacted
by the following elements:
the very high inflation affecting the Belgian, European and
world economy in 2022, decreasing in 2023;
few scope changes, including mainly (a) a 245 million
euros positive impact of a badwill recognised in 2022
as a result of the change of consolidation from equity-
method to full consolidation of bpost bank following the
acquisition of the remaining 50 %, (b) the acquisition and
full consolidation of (i) Creation Financial Services and
Creation Consumer Finance, as from 1
st
April 2023, and (ii)
Terberg, acquired by Arval, as from 1
st
December 2022 and
(c) the change of consolidation from equity-method to full
consolidation of Arval Relsa and its subsidiaries after the
acquisition of the residual 50 % of the shares of Arval Relsa;
foreign exchange variations, mostly the depreciation of
the Turkish lira against euro (from 20.0 EUR/TRY in 2022
to 32.6 EUR/TRY in 2023);
the restatement of the figures of 2022 (restatement impact
of (25) million euros on the net income attributable to
equity holders) related to the application of the IFRS 17
(insurance contracts) and IFRS 9 (financial instruments)
for insurance entities effective 1 January 2023.
43 % of the revenues were generated by banking activities in
Belgium (mainly BNP Paribas Fortis, and other legal entities
of Commercial & Personal Banking), 40 % by the Specialised
Businesses made of Arval, Leasing Solutions and Personal
Finance (including Alpha Credit in Belgium and, since 31 March
2023, Creation Financial Services and Creation Consumer
Finance in the United Kingdom), 8 % by banking activities in
Luxembourg (mainly BGL BNP Paribas) and 9 % by banking
activities in Turkey (mainly Turk Ekonomi Bankasi (TEB)).
Net interest income reached 4,757 million euros in 2023, a
decrease of (109) million euros or (2 %) compared to 2022.
Excluding the scope changes (154 million euros) and the
foreign exchange effect ((120) million euros), the net interest
income decreased by (143) million euros.
25
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
In Belgium the net interest income increased, driven mainly
by the Commercial and Personal Banking activites with higher
credit volumes and margins on deposits that held up well,
despite higher refinancing costs and the negative impact
of the issuance of a one year Belgian government bond in
the third quarter of 2023. In Luxembourg, the net interest
income increased mainly thanks to margins on deposits. For
Turkey, the net interest income decreased driven mainly by
the depreciation of the Turkish lira and due to lower margins.
In the Specialised Businesses, there was an overall decrease
in the net interest income driven by the increasing interest
expenses at Arval (while most of its revenues are posted in
the ‘net income from other activities’); the net interest income
increased at Leasing Solutions, thanks to the growth of the
financed outstandings and better margins, and at Personal
Finance, thanks to the consolidation of Creation Financial
Services and Creation Consumer Finance.
Net commission income amounted to 1,439 million euros
in 2023, up by 18 million euros or 1 % compared to 2022.
Excluding the scope changes (3 million euros) and the foreign
exchange effect ((22) million euros), net commission income
increased by 37 million euros.
In Belgium, the net commissions slightly decreased with
higher financial fees and lower banking fees. In the other
segments, the net commissions increased in all segments with
a stronger increase in Turkey and at Specialised Businesses
driven by Personal Finance.
Net results on financial instruments at fair value through
profit or loss stood at 518 million euros, up by 105 million
euros compared to 2022. Excluding the scope changes
(2 million euros) and the foreign exchange effect ((24) million
euros), net results on financial instruments at fair value
through profit or loss increased by 127 million euros.
The increase was mainly driven by Turkey, with TEB servicing
clients in a context of high volatility in currency exchange
rates and interest rates. The remaining increase was mostly
driven by Luxembourg thanks to the positive fair-value evolu-
tion of subordinated securities issued by Cardif Lux Vie.
Net results on financial instruments at fair value through
equity amounted to 20 million euros in 2023, decreasing by
(20) million euros compared to 2022.
Net gain or loss on the derecognition of financial assets at
amortised cost amounted to 63 million euros in December
2023 mainly linked to the sale of government bonds in
Belgium and Turkey.
Net income from insurance activities totalled 68 million euros
in 2023 compared to 58 million euros in 2022.
Net income from other activities totalled 3,686 million
euros in 2023, increasing by 842 million euros or 30 % com-
pared to 2022.
The main contributor remained Arval that achieved a very
good performance, thanks to a further robust expansion of the
financed fleet (+6.9 %) and the still high revenues on used car.
Operating expenses amounted to (5,121) million euros in 2023
i.e. an increase of (451) million euros or 10 % compared to
2022. Excluding the scope changes ((95) million euros) and
the foreign exchange effect (70 million euros), there was an
increase of (426) million euros.
The staff expenses were higher, with the impact of inflation,
especially in Turkey still in hyperinflation. The increase in
other operating expenses was more contained and mainly
attributable to the growth of the activities next to the impact
of inflation. In Belgium and Luxembourg, the increase in
operating expenses was partly offset by a decrease in the
banking taxes.
Depreciation charges stood at (375) million euros in 2023,
versus (397) million euros compared to previous year, i.e. a
decrease of 22 million euros.
Cost of risk totalled (280) million euros in 2023, i.e. a decrease
of 48 million euros compared to 2022. Excluding the scope
changes ((71) million euros) and the foreign exchange effect
(9 million euros), there was a decrease of 110 million euros.
In Belgium, there was a lower cost of risk thanks to a decrease
in stage 1 and 2 provisions partly offset by an increase in
provisions in stage 3. At Specialised Businesses, there was a
higher cost of risk driven by an increase in provisions in stage
3, including a noticeable increase due to the consolidation of
Creation Financial Services and Creation Consumer Finance in
2023, partly offset by a decrease in stage 1 and 2 provisions.
In Luxembourg, the cost of risk normalised at a low level
compared to a net release in all stages in 2022. In Turkey,
the cost of risk was lower, with a decrease in provisions in
all stages compared to a high level of provisioning in 2022.
Share of earnings of equity-method entities amounted to
311 million euros in 2023, compared to 263 million euros
during the same period in 2022.
26
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
The main participations are in AG Insurance, BNP Paribas
Bank Polska and BNP Paribas Asset Management. The increase
was mainly attributable to higher results at AG Insurance
and BNP Paribas Bank Polska. In BNP Paribas Bank Polska an
extraordinary provision for litigation on mortgage loans was
taken for an amount of (105) million euros.
Net gain or loss on non-current assets and Goodwill amounted
to (63) million euros in 2023 versus 301 million euros in 2022.
The decrease mainly reflects the 245 million euros positive
impact of a badwill recognised in 2022 as a result of the change
of consolidation from equity-method to full consolidation of
bpost bank following the acquisition of the remaining 50 %.
The remaining decrease was driven by Turkey and Specialised
Businesses due to the application of IAS 29. According to IAS 29
in connection with the hyperinflation situation 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, and the
accrued income on the Turkish government bonds’ portfolio
indexed on inflation and held by TEB. This decrease was partly
offset by the positive result in Luxembourg of a sale and lease
back transaction related to a building of BGL BNP Paribas.
Corporate income tax in 2023 totalled (1,482) million euros
compared to (1,211) million euros, an increase of (271) million
euros. Excluding the share of earnings of equity-method
entities (reported net of income taxes) and the (non taxable)
badwill on bpost bank in 2022, the effective tax rate stood at
31 % in 2023 compared to 28 % in 2022.
Net income attributable to minority interests amounted
to 447 million euros in 2023, compared to 462 million
euros in 2022.
Comments on the evolution of the balance sheet
The total balance sheet of BNP Paribas Fortis amounted
to 373.8 billion euros as at 31 December 2023, up by
23.6 billion euros or 7 % compared with 350.3 billion euros
at 31 December 2022.
Based on the segment information, 63 % of the assets
were contributed by banking activities in Belgium, 24 %
by the Specialised Businesses, 9 % by banking activities in
Luxembourg, and 4 % by banking activities in Turkey.
Assets
Cash and amounts due from central banks amounted to
38.5 billion euros, decreased by (0.5) billion euros compared
to 31 December 2022 due to a decrease in overnight deposits
at the National Bank of Belgium.
Financial instruments at fair value through profit or loss
stood at 9.4 billion euros, down by (2.9) billion euros compared
to 31 December 2022. The decrease was mainly in Belgium and
is driven by a decrease in ‘Derivative financial instruments’
mainly related to the evolution of the interest rate curve which
impacted in a symmetrical way both the fair value of ‘deriva-
tive financial instruments’ on the asset and liability side.
Derivatives used for hedging purposes decreased by
(1.1) billion euros and amounted to 5.4 billion euros. The
derivatives used for hedging purposes on the liability side
decreased by (1.4) billion euros and amounted 8.3 billion euros.
Financial assets at fair value through equity increased by
4.9 billion euros to 10.8 billion euros following investments
in government bonds, mainly in Belgium, and in Luxembourg.
Financial assets at amortised cost amounted to 250.9 billion
euros, up by 9.7 billion euros compared to 31 December 2022.
‘Loans and advances to customers’ amounted to 219.3 billion
euros, up by 2.5 billion euros. In Belgium, at BNP Paribas
Fortis, the increase was mainly related to term and mortgage
loans. In the other segments, there was an overall increase
in Loans and advance to customers. The decrease observed
in Luxembourg was driven by the term loans, while in Turkey,
the decrease was linked to the depreciation of the Turkish
Lira. The increase at Specialised Businesses was supported
by Arval, Leasing Solutions and Personal Finance, including
a noticeable increase arising from the acquisition of Creation
Financial Services and Creation Consumer Finance in 2023.
‘Loans and advances to credit institutions’ increased by
7.9 billion euros due to an increase in Belgium of the
reverse repos.
‘Debt securities at amortised cost’ decreased by (0.6) billion
euros especially in Turkey related to reimbursements, and the
foreign exchange impact of the Turkish lira.
Remeasurement adjustment on interest-rate risk hedged
portfolios amounted to (0.8) billion euros compared to (0.9)
billion euros at 31 December 2022.
27
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Investments and other assets related to insurance activi
-
ties amounted to 0.3 billion euros the same amount as at
31 December 2022.
Current and deferred tax assets amounted to 1.1 billion euros,
down by (0.1) billion euros compared to 31 December 2022.
Accrued income and other assets stood at 13.7 billion euros
as at 31 December 2023, up by 2.3 billion euros compared
to 31 December 2022. The increase was mainly at Arval,
and in Belgium.
Equity-method investments amounted to 2.6 billion euros,
up by 0.2 billion euros.
Property, plant and equipment and Investment property
amounted to 36.5 billion euros, up by 6.9 billion euros
compared to 29.6 billion euros at 31 December 2022, mainly
related to the growth of the financed fleet at Arval.
Intangible assets and goodwill amounted to 1.4 billion
euros, up by 0.1 billion euros compared to 1.3 billion euros at
31 December 2022.
Assets held for sale and Liabilities associated with assets held
for sale respectively, amounted to 4 billion euros in December
2023. They relate to the assets and liabilities of the entity
BNP Paribas Factor GmbH. which is a fully owned subsidiary
of BNP Paribas Fortis Factor NV. The sale of BNP Paribas Factor
GmbH to the German branch of BNP Paribas SA is expected
to be completed in 2024.
Liabilities and Equity
Deposits from central banks stood at 2.0 billion euros, down
by (0.4) billion euros compared to 31 December 2022, with
the decrease located in Belgium.
Financial instruments at fair value through profit or loss
increased by 2.8 billion euros, totalling 21.3 billion euros as
at 31 December 2023. The increase is mainly explained by an
increase in repos partly offset by the ‘interest rates and foreign
exchange trading derivatives’ in Belgium.
Financial liabilities at amortised cost amounted to
292,8 billion euros as at 31 December 2023, up by 15.3 billion
euros compared to 31 December 2022.
‘Deposits from customers’ stood at 203.9 billion euros, down
by (8.8) billion euros. The decrease was mainly in Belgium
and was mostly attributable to a decrease in savings deposits
due the issuance of the Belgian government bond . There
was also a decrease in Luxembourg, explained by a decrease
in the demand deposits partly mitigated by an increase in
term deposits, and in Turkey, due to the depreciation of the
Turkish Lira.
‘Deposits from credit institutions’ increased by 16.6 billion
euros mainly driven by an increase in Belgium, in repos (up
by 26.7 billion euros) offset by the decrease in interbank
borrowings (down by (11.4) billion euros), including the
partial reimbursement of the TLTRO for (15.2) billion euros.
The remaining increase was mainly related to an increase in
interbank borrowings at Specialised Businesses, driven by the
financing of the growing activities and by the acquisition of
Creation Financial Services and Creation Consumer Finance.
‘Debt securities’ increased by 7.5 billion euros, due to issuance
of debt securities in Belgium and at Arval.
‘Subordinated debt’ stood at 2.2 billion euros as at
31 December 2023, down by (0.1) billion euros compared to
31 December 2022.
Remeasurement adjustment on interest-rate risk hedged
portfolios amounted to (3.9) billion euros compared to (5.2)
billion euros at 31 December 2022.
Current and deferred tax liabilities amounted to 1.4 billion
euros as at 31 December 2023, up by 0.3 billion euros com-
pared to 31 December 2022.
Accrued expenses and other liabilities stood at 12.3 billion
euros as at 31 December 2023, up by 0.9 billion euros com-
pared to 31 December 2022.
Liabilities related to insurance contracts amounted to
0.2 billion euros as at 31 December 2023, the same amount
as at 31 December 2022.
Provisions for contingencies and charges came in at
4.3 billion euros, increased by 0.5 billion euros compared to
31 December 2022.
Shareholders’ equity amounted to 25.4 billion euros as at
31 December 2023, up by 0.1 billion euros compared with
25.3 billion euros at 31 December 2022. Retained earnings
increased by the net income attributable to shareholders for
the year 2023 ( 3.1 billion euros) The dividend distributed by
BNP Paribas Fortis impacted the Retained earnings by (3.0)
billion euros.
Minority interests stood at 5.8 billion euros as at 31 December
2023, compared to the situation end 2022 at 5.7 billion euros.
28
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Liquidity and solvency
BNP Paribas Fortis’ liquidity remained sound, with customer
deposits standing at 204 billion euros and customer loans at
219 billion euros.
Customer deposits consist of the ‘due to customers’ 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 2023, BNP Paribas
Fortis’ Basel III Common Equity Tier 1 ratio (CET1 ratio) stood
at 16.2 %. Total risk-weighted assets amounted to 129.0 billion
euros at 31 December 2023, of which 103.1 billion euros are
related to credit risk, 1.6 billion euros to market risk and
8.8 billion euros to operational risk, while counterparty risk,
securitisation and equity risk worked out at 1.3 billion euros,
1.0 billion euros and 13.2 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
management and capital adequacy’ of the BNP Paribas Fortis
consolidated financial statements 2023 and in the BNP Paribas
Fortis ‘Pillar 3 disclosure’ 2023.
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 busi-
ness, as further described in note 8.a ‘Contingent liabilities:
legal proceedings and arbitration’ to the BNP Paribas Fortis
consolidated Financial Statements 2023.
29
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 2023 will be submitted to the annual General Meeting of
Shareholders for information and for approval on 18 April 2024.
Brussels, 7 March 2024
The Board of Directors of BNP Paribas Fortis
30
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 remain-
ing 0.06 % of the shares is held by minority shareholders.
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 organisation 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 7 March 2024, the Board of Directors of BNP Paribas
Fortis is made up of seventeen (17) members, seven (7) of
which are women.
It moreover includes eleven (11) non-executive directors, four
(4) of them being independent directors within the meaning
of the Banking law and six (6) executive directors.
31
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
All directors must at all times be fit (‘passende deskundig-
heid’/‘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 7 March 2024, 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
20 April 2023.
It will expire at the end of the 2027 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
20 April 2023.
It will expire at the end of the 2027 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.
BORDENAVE Philippe
Vice-chairman of the Board of Directors and non-execu-
tive director.
Member of the Board of Directors since 20 April 2023.
The board member mandate will expire at the end of the
2027 annual general meeting of shareholders.
de CLERCK Daniel
Executive director.
Member of the Board of Directors since 12 December 2019.
The current board member mandate has been renewed on
20 April 2023.
It will expire at the end of the 2027 annual general meeting
of shareholders.
DE PLOEY Wouter
Independent non-executive director.
Member of the Board of Directors since 1 December 2022.
The current board member mandate has been confirmed and
renewed on 20 April 2023.
It will expire at the end of the 2026 annual general meeting
of shareholders.
32
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
HARTMANN Nathalie
Non-executive director.
Member of the Board of Directors since 20 April 2023.
The board member mandate will expire at the end of the
2027 annual general meeting of shareholders.
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 current board member mandate has been renewed on
20 April 2023.
It will expire at the end of the 2027 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 2023 and 31 December 2023, the composi
-
tion of the Board of Directors was as follows:
JADOT, Maxime
Chairman of the Board of Directors
ANSEEUW, Michael
Executive director and chairman of the Executive Board
d’ASPREMONT LYNDEN, Antoinette
Independent non-executive director
AUBERNON, Dominique
Non-executive director
BEAUVOIS, Didier
Executive director
BOOGMANS, Dirk
Independent non-executive director
BORDENAVE, Philippe
Non-executive director since April 20, 2023 and vice-
president of the Board of Directors since December 14, 2023
de CLERCK, Daniel
Executive director
DE PLOEY, Wouter
Independent non-executive director
DUTORDOIR, Sophie
Non-executive director until April 20, 2023
HARTMANN, Nathalie
Non-executive director since April 20, 2023
LECLERCQ, Anne
Independent non-executive director
MERLO, Sofia
Non-executive director
33
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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
Attendance at meetings
The Board of Directors held fourteen (14) meetings in 2023.
Attendance at these meetings was as follows:
Director
Number of
Meetings Attended
JADOT, Maxime 14
ANSEEUW, Michael 13
d’ASPREMONT LYNDEN, Antoinette 14
AUBERNON, Dominique 12
BEAUVOIS, Didier 14
BOOGMANS, Dirk 13
BORDENAVE, Philippe (since April 20, 2023) 8
de CLERCK, Daniel 13
DE PlOEY, Wouter 14
DUTORDOIR, Sophie (until April 20, 2023) 3
HARTMANN, Nathalie (since April 20, 2023) 9
LECLERCQ, Anne 14
MERLO, Sofia 13
VAN AKEN, Piet 14
VAN WAEYENBERGE, Titia 14
VARENE, Thierry 13
VERMEIRE, Stéphane 14
WILIKENS, Sandra 14
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 2023 and the one of the directors individually ended
in February 2024.
Remuneration
Information regarding the total remuneration for the cor-
porate year 2023, including the remunerations, benefits in
kind and pension plans, of all directors, paid and payable by
BNP Paribas Fortis, can be found in note 8.g ‘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
34
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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.
Composition
As at 7 March 2024, 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
35
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
independent directors, currently members of the BNP Paribas
Fortis AC, have a specific expertise in audit and accounting.
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 7 March 2024:
Wouter De Ploey (non-executive, independent direc-
tor), chairman
Dominique Aubernon (non-executive director)
Anne Leclercq (non-executive, independent director)
Attendance at meetings
The AC met nine (9) times in 2023, of which three (3) times
together with the Risk Committee (i.e. Joint Audit and Risk
Committee meetings). Attendance was as follows:
Committee Member
Number of
meetings attended
DE PLOEY Wouter 9
AUBERNON, Dominique 9
LECLERCQ Anne 9
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 7 March 2024:
Anne Leclercq (non-executive, independent direc-
tor), chairwoman
Dominique Aubernon (non-executive director)
Titia Van Waeyenberge (non-executive, independ-
ent director)
Attendance at meetings
The RC met nine (9) times in 2023, of which three (3) times
together with the Audit Committee (i.e. Joint Audit and Risk
Committee meetings). Attendance was as follows:
Committee Member
Number of
meetings attended
LECLERCQ, Anne 9
AUBERNON, Dominique 9
VAN WAEYENBERGE, Titia 9
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.
36
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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.
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 7 March 2024:
Antoinette d’Aspremont Lynden, (non-executive, independ-
ent director), chairwoman
Maxime Jadot (non-executive director)
Titia Van Waeyenberge (non-executive, independ-
ent director)
Attendance at meetings
The GNC met eight (8) times in 2023. Attendance was
as follows:
Committee Member
Number of
meetings attended
d’ASPREMONT LYNDEN, Antoinette 8
JADOT, Maxime 7
VAN WAEYENBERGE, Titia 8
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 7 March 2024:
Antoinette d’Aspremont Lynden (non-executive, independ-
ent director), chairwoman
Sofia Merlo (non-executive director)
Titia Van Waeyenberge (non-executive, independ-
ent director)
Attendance at meetings
The RemCo met six (6) times in 2023. Attendance was
as follows:
Committee Member
Number of
meetings attended
d'ASPREMONT LYNDEN, Antoinette 6
MERLO, Sofia 6
VAN WAEYENBERGE, Titia 6
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 7 March 2024:
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
37
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Pierre BOUCHARA
Member of the Executive Committee, chief financial officer
Marc CAMUS
Member of the Executive Committee, chief informa-
tion officer
Daniel de CLERCK
Executive director, member of the Executive Committee,
chief operating officer
Christophe GALIMARD
Member of the Executive Committee, chief compli-
ance 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
Stephane VERMEIRE
Executive director, member of the Executive Committee,
chief affluent and private banking
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 organisational 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 organisation 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.
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
38
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 man-
agement 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 Analysis & Planning department
and discussed 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.
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 specialised 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
39
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 standardised 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.
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.
40
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 2023, the accredited statutory auditor was Deloitte
Bedrijfsrevisoren bv / Deloitte Réviseurs d’Entreprises srl,
represented by Mr. Yves DEHOGNE, since the Annual General
Meeting of Shareholders.
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 ‘2023 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.
41
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
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 whose purpose is to avoid conflicts
of interest between BNP Paribas Fortis and its directors or
executive management, inter alia in relation to external func-
tions exercised; as well as to contracts, transactions 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.
42
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
BNP PARIBAS FORTIS
CONSOLIDATED FINANCIAL
STATEMENTS 2023
Prepared in accordance with International Financial
Reporting Standards as adopted by the European Union
44
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Profit and loss account for the year ended 31 December 2023
| Year to 31 Dec. 2022 | |||
| restated according to | |||
In millions of euros | Note | Year to 31 Dec. 2023 | IFRS 17 and 9 |
Interest income | 3.a | ||
Interest expense | 3.a | ( | ( |
Commission income | 3.b | ||
Commission expense | 3.b | ( | ( |
Net gain or loss on financial instruments at fair value through profit or loss | 3.c | ||
Net gain or loss on financial instruments at fair value through equity | 3.d | ||
Net gain or loss on the derecognition of financial assets at amortised cost | ( | ||
Net income from insurance activities | |||
Income from other activities | 3.e | ||
Expense on other activities | 3.e | ( | ( |
Revenues | |||
Other operating expenses | 3.f | ( | ( |
| Depreciation, amortisation and impairment of property, plant and equipment | 5.l | ( | ( |
| and intangible assets | |||
Gross operating income | |||
Cost of risk | 3.g | ( | ( |
Operating income | |||
Share of earnings of equity-method entities | 5.k | ||
Net gain or loss on non-current assets | 3.h | ( | |
| Goodwill | 5.m 8.b | ||
Pre-tax income | |||
Corporate income tax | 3.i | ( | ( |
NET INCOME | |||
of which net income attributable to minority interests | |||
NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS |
45
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Statement of net income and change in assets and liabilities recognised directly in equity
| Year to 31 Dec. 2022 | ||
| restated according to | ||
| In millions of euros | Year to 31 Dec. 2023 | IFRS 17 and 9 |
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 |
46
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Balance sheet at 31 December 2023
| 31 December 2022 | 1 January 2022 | |||
| restated according | IAS 29, IFRS 17 | |||
In millions of euros | Note | 31 December 2023 | to IFRS 17 and 9 | and 9 |
| Assets | ||||
Cash and balances at central banks | ||||
Financial instruments at fair value through profit or loss | ||||
Securities | 5.a | |||
Loans and repurchase agreements | 5.a | |||
Derivative financial instruments | 5.a | |||
Derivatives used for hedging purposes | 5.b | |||
Financial assets at fair value through equity | ||||
Debt securities | 5.c | |||
Equity securities | 5.c | |||
Financial assets at amortised cost | ||||
Loans and advances to credit institutions | 5.e | |||
Loans and advances to customers | 5.e | |||
Debt securities | 5.e | |||
Remeasurement adjustment on interest-rate risk hedged portfolios | ( | ( | ||
Investments and other assets related to insurance activities | ||||
Current and deferred tax assets | 5.i | |||
Accrued income and other assets | 5.j | |||
Equity-method investments | 5.k | |||
Property, plant and equipment and Investment property | 5.l | |||
Intangible assets | 5.l | |||
Goodwill | 5.m | |||
Assets held for sale | 8.d | |||
Total assets | ||||
| Liabilities | ||||
Deposits from central banks | ||||
Financial instruments at fair value through profit or loss | ||||
Securities | 5.a | |||
Deposits and repurchase agreements | 5.a | |||
Issued debt securities | 5.a | |||
Derivative financial instruments | 5.a | |||
Derivatives used for hedging purposes | 5.b | |||
Financial liabilities at amortised cost | ||||
Deposits from credit institutions | 5.g | |||
Deposits from customers | 5.g | |||
Debt securities | 5.h | |||
Subordinated debt | 5.h | |||
Remeasurement adjustment on interest-rate risk hedged portfolios | ( | ( | ||
Current and deferred tax liabilities | 5.i | |||
Accrued expenses and other liabilities | 5.j | |||
Liabilities related to insurance contacts | ||||
Provisions for contingencies and charges | 5.n | |||
Liabilities associated with assets held for sale | 8.d | |||
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 | 8.c | |||
Total equity | ||||
Total liabilities & equity |
47
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Cash flow statement for the year ended 31 December 2023
| Year to 31 Dec. 2022 | |||
| restated according to | |||
In millions of euros | Note | Year to 31 Dec. 2023 | IFRS 17 and 9 |
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 | ( | ||
Variation of assets/liabilities related to insurance contracts | |||
Share of earnings of equity-method entities | ( | ( | |
Net income from investing activities | ( | ( | |
Net income from financing activities | ( | ||
Other movements | |||
| Net increase in cash related to assets and liabilities generated by operating | ( | ( | |
| activities | |||
Net decrease in cash related to transactions with customers and credit institutions | ( | ( | |
Net decrease 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 decrease in cash and equivalents generated by operating activities | ( | ( | |
Net decrease in cash related to acquisitions and disposals of consolidated entities | |||
Net increase related to property, plant and equipment and intangible assets | ( | ( | |
Net decrease in cash and equivalents related to investing activities | ( | ||
Net increase (decrease) in cash and equivalents related to transactions with shareholders | ( | ( | |
Net decrease in cash and equivalents generated by other financing activities | |||
Net increase in cash and equivalents related to financing activities* | ( | ||
Effect of movement in exchange rates on cash and equivalents | ( | ( | |
Net decrease 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 | |||
On-demand loans from credit institutions | 5.g | ( | ( |
Deduction of receivables and accrued interest on cash and equivalents | ( | ( | |
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 | |||
On-demand loans from credit institutions | 5.g | ( | ( |
Deduction of receivables and accrued interest on cash and equivalents | ( | ( | |
Cash and cash equivalent accounts classified as ‘Assets held for sale’ | |||
Net decrease 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 172 million of euros, due to foreign exchange and
revaluation effect, for respectively 92 million of euros and 51 million of euros.
48
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Statement of changes in shareholders’ equity
Capital and retained earnings
Changes in assets and liabilities recognised directly in
equity that will not be reclassified to profit or loss
| Remea- | ||||||||
| Financial | surement | |||||||
| instruments | Own-credit valuation | gains (losses) | ||||||
| Total | designated as | adjustment of debt | related | |||||
| Subordinated | Non | capital and | at fair value | securities designated | to post- | |||
| Share | equity | distributed | retained | through | as at fair value | employment | ||
| In million of euros | capital | instruments | reserves | earnings | equity | through profit or loss | benefits plans | Total |
Capital and retained earnings at 31 December 2021 | ( | ( | ( | |||||
| Impact IAS 29 1 | ( | ( | ||||||
| application in Türkiye | ||||||||
Impact of the transition to IFRS 17 | ( | ( | ||||||
| (note 2) | ||||||||
Impact of the transition to IFRS 9 | ||||||||
| (note 2) | ||||||||
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 | ( | ( | ||||||
Other movements | ( | ( | ||||||
Acquisitions | ||||||||
Dividends | ( | ( | ||||||
| Realised gains or losses | ||||||||
| reclassified to retained | ( | ( | ||||||
| earnings | ||||||||
Changes in assets and liabilities recognised | ( | ( | ||||||
| directly in equity | ||||||||
Net income for 2023 | ||||||||
| Capital and retained | ||||||||
| earnings at 31 | ( | ( | ( | |||||
| December 2023 |
st
49
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Changes in assets and liabilities recognised directly in equity
that may be reclassified to profit or loss
| Financial | Financial | Derivatives | ||||||
| instruments | investments | used for | Total | Minority | Total | |||
| Exchange | at fair value | of insurance | hedging | Shareholders’ | interests | consolidated | ||
| In million of euros | rate | through equity | activities | purposes | Total | equity | (note 8.c) | equity |
Capital and retained earnings at 31 December 2021 | ( | ( | ( | |||||
| Impact IAS 29 1 | ||||||||
| application in Türkiye | ||||||||
Impact of the transition to IFRS 17 | ( | ( | ( | ( | ||||
| (note 2) | ||||||||
Impact of the transition to IFRS 9 | ( | |||||||
| (note 2) | ||||||||
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 | ( | ( | ( | ( | ||||
Other movements | ( | ( | ( | |||||
Acquisitions | ||||||||
Dividends | ( | ( | ( | |||||
| Realised gains or losses | ||||||||
| reclassified to retained | ||||||||
| earnings | ||||||||
Changes in assets and liabilities recognised | ( | ( | ( | ( | ||||
| directly in equity | ||||||||
Net income for 2023 | ||||||||
Capital and retained earnings at | ( | ( | ( | ( |
st
31 December 2023
50
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS 2023
Prepared in accordance with International Financial
Reporting Standards as adopted by the European Union
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
55
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
57
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
59
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
61
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
63
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
65
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
67
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
69
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
71
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
73
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
75
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
77
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
79
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
2 IFRS 17 and IFRS 9 first time
application impacts
IFRS 17 and IFRS 9 first time application impacts
on the balance sheet at 31 December 2022
| IFRS 17 and 9 | 31 December 2022 | ||
| 31 December | 1 st time application | restated according | |
| In millions of euros | 2022 | impacts | to IFRS 17 and 9 |
| Assets | |||
Cash and balances at central banks | 39,009 | - | 39,009 |
Financial instruments at fair value through profit or loss | 12,315 | - | 12,315 |
Securities | 1,376 | - | 1,376 |
Loans and repurchase agreements | 2,558 | - | 2,558 |
Derivative financial instruments | 8,381 | - | 8,381 |
Derivatives used for hedging purposes | 6,499 | - | 6,499 |
Financial assets at fair value through equity | 5,877 | - | 5,877 |
Debt securities | 5,739 | - | 5,739 |
Equity securities | 138 | - | 138 |
Financial assets at amortised cost | 241,156 | - | 241,156 |
Loans and advances to credit institutions | 11,220 | - | 11,220 |
Loans and advances to customers | 216,785 | - | 216,785 |
Debt securities | 13,151 | - | 13,151 |
Remeasurement adjustment on interest-rate risk hedged portfolios | (907) | - | (907) |
Investments and other assets related to insurance activities | 266 | 20 | 286 |
Current and deferred tax assets | 1,241 | (1) | 1,240 |
Accrued income and other assets | 11,467 | (54) | 11,413 |
Equity-method investments | 2,572 | (92) | 2,480 |
Property, plant and equipment and Investment property | 29,581 | - | 29,581 |
Intangible assets | 468 | - | 468 |
Goodwill | 848 | - | 848 |
Total assets | 350,392 | (127) | 350,265 |
| Liabilities | |||
Deposits from central banks | 2,363 | - | 2,363 |
Financial instruments at fair value through profit or loss | 18,520 | - | 18,520 |
Securities | 603 | - | 603 |
Deposits and repurchase agreements | 7,562 | - | 7,562 |
Issued debt securities | 2,388 | - | 2,388 |
Derivative financial instruments | 7,967 | - | 7,967 |
Derivatives used for hedging purposes | 9,692 | - | 9,692 |
Financial liabilities at amortised cost | 277,522 | - | 277,522 |
Deposits from credit institutions | 46,295 | - | 46,295 |
Deposits from customers | 212,692 | - | 212,692 |
Debt securities | 16,252 | - | 16,252 |
Subordinated debt | 2,283 | - | 2,283 |
Remeasurement adjustment on interest-rate risk hedged portfolios | (5,216) | - | (5,216) |
Current and deferred tax liabilities | 1,083 | - | 1,083 |
Accrued expenses and other liabilities | 11,405 | (32) | 11,373 |
Technical reserves and other insurance liabilities | 190 | (190) | - |
Liabilities related to insurance contracts | - | 178 | 178 |
Provisions for contingencies and charges | 3,782 | - | 3,782 |
Total liabilities | 319,341 | (44) | 319,297 |
| Equity | |||
Share capital, additional paid-in capital and retained earnings | 24,898 | 5 | 24,903 |
Net income for the period attributable to shareholders | 3,161 | (25) | 3,136 |
Total capital, retained earnings and net income for the period attributable to shareholders | 28,059 | (20) | 28,039 |
Changes in assets and liabilities recognised directly in equity | (2,673) | (70) | (2,743) |
Shareholders’ equity | 25,386 | (90) | 25,296 |
Minority interests | 5,665 | 7 | 5,672 |
Total equity | 31,051 | (83) | 30,968 |
Total liabilities & equity | 350,392 | (127) | 350,265 |
80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
Since 1 January 2023, the BNP Paribas Fortis Group’s insurance
entities applied IFRS 17 ‘Insurance Contracts’ issued in May
2017 and amended in June 2020, adopted by the European
Union in November 2021, with a transition date of 1 January
2022 for the opening balance sheet requirements of the
comparative period required by the standard.
As the BNP Paribas Fortis Group deferred the application of
IFRS 9 ‘Financial Instruments’, for insurance entities until
the entry into force of IFRS 17, it applies this standard from
1 January 2023.
In addition, the entry into force of IFRS 17 brings into effect
various amendments to other standards, including IAS 1 for
presentation, IAS 16 and IAS 40 for valuation and presentation
of real estate assets, IAS 28 for exemptions from the equity
method and IAS 32 and IFRS 9 for own equity instruments
and other securities issued by the BNP Paribas Fortis Group.
The main effect of these changes in the balance sheet of
31
st
December 2022 is in Shareholder’s Equity amounting to
(0.09) billion euros. The impact is mainly related to a non-
controlled entity consolidated via equity method.
81
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
3 Notes to the profit and loss
account for the year ended
31 December 2023
3.a Net interest income
BNP Paribas Fortis includes in ‘interest income’ and ‘interest
expense’ all income and expense calculated using the effec-
tive interest method (interest, fees and transaction costs)
from financial instruments measured at amortised cost and
financial instruments measured at fair value through equity.
These items also include the interest income and expense
of non-trading financial instruments, the characteristics of
which do not allow for recognition at amortised cost or at
fair value through equity, as well as of financial instruments
that the bank has designated as at fair value through profit
or loss. The change in fair value on financial instruments at
fair value through profit or loss (excluding accrued interest)
is recognised under ‘Net gain on financial instruments at fair
value through profit or loss’.
Interest income and expense on derivatives accounted for as
fair value hedges are included with the revenues generated
by the hedged item. Similarly, interest income and expense
arising from derivatives used to hedge transactions designated
as at fair value through profit or loss is allocated to the same
accounts as the interest income and expense relating to the
underlying transactions.
In the case of a negative interest rates related to loans and
receivables or deposits from customers and credit institutions,
they are accounted for in interest expense or interest income
respectively.
| Year to 31 Dec. 2022 restated | ||||||
| Year to 31 Dec. 2023 | according to IFRS 17 and 9 | |||||
| In millions of euros | Income | Expense | Net | Income | Expense | Net |
Financial instruments at amortised cost | 12,412 | (6,921) | 5,491 | 7,185 | (2,141) | 5,044 |
Deposits, loans and borrowings | 10,249 | (4,944) | 5,305 | 5,945 | (1,866) | 4,079 |
Repurchase agreements | 604 | (1,167) | (563) | 57 | (36) | 21 |
Finance leases | 1,342 | (101) | 1,241 | 1,073 | (93) | 980 |
Debt securities | 217 | - | 217 | 110 | - | 110 |
Issued debt securities and subordinated debts | - | (709) | (709) | - | (146) | (146) |
Financial instruments at fair value through equity | 275 | - | 275 | 71 | - | 71 |
| Financial instruments at fair value through profit or loss | 10 | (80) | (70) | 4 | (35) | (31) |
| (Trading securities excluded) | ||||||
Cash flow hedge instruments | 273 | (299) | (26) | 221 | (227) | (6) |
Interest rate portfolio hedge instruments | 2,071 | (2,969) | (898) | 755 | (957) | (202) |
Lease liabilities | - | (15) | (15) | - | (10) | (10) |
Net interest income/expense | 15,041 | (10,284) | 4,757 | 8,236 | (3,370) | 4,866 |
Interest income on individually impaired loans amounted
to 47 million euros in the year ending 31 December
2023, compared with 31 million euros in the year ending
31 December 2022.
BNP Paribas Fortis subscribed to the TLTRO III (Targeted
Longer-Term Refinancing Operations) programme, as modi-
fied by the Governing Council of the European Central Bank
in March 2020, in December 2020 and in October 2022 (see
note 5.g). BNP Paribas Fortis achieved the lending perfor-
mance thresholds that enabled it to benefit from favourable
interest rate conditions applicable for each of the reference
period, namely:
to June 2022): the average deposit facility rate (‘DFR’) -50
basis points, or -1 %;
82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
over the next period (i.e. from June 2022 to November
3.b Commission income and expense
| Year to 31 Dec. 2022 restated | ||||||
| Year to 31 Dec. 2023 | according to IFRS 17 and 9 | |||||
| Expense | Net | |||||
| In millions of euros | Income | Expense | Net | Income | ||
Customer transactions | 138 | (62) | 76 | 135 | (82) | 53 |
Securities and derivatives transactions | 1,098 | (332) | 766 | 1,040 | (267) | 773 |
Financing and guarantee commitments | 191 | (26) | 165 | 181 | (27) | 154 |
Asset management and other services | 659 | (11) | 648 | 643 | (26) | 617 |
Others | 355 | (571) | (216) | 276 | (452) | (176) |
Net C ommission income/expense | 2,441 | (1,002) | 1,439 | 2,275 | (854) | 1,421 |
Of which net commission income related to trust and similar activities through which BNP Paribas Fortis | 460 | (7) | 453 | 431 | (4) | 427 |
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 | 373 | (92) | 281 | 370 | (131) | 239 |
83
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2022 | ||
| restated according | ||
In millions of euros | Year to 31 Dec. 2023 | to IFRS 17 and 9 |
Trading Book | 570 | (46) |
Interest rate and credit instruments | 86 | (35) |
Equity financial instruments | 106 | (286) |
Foreign exchange financial instruments | 512 | 288 |
Loans and repurchase agreements | (134) | (13) |
Other financial instruments | - | - |
Financial instruments designated as at fair value through profit or loss | (144) | 371 |
Other financial instruments at fair value through profit and loss | 90 | 80 |
Impact of hedge accounting | 2 | 8 |
Fair value hedging derivatives | 383 | (1,533) |
Hedged items in fair value hedge | (381) | 1,541 |
Net gain or loss on financial instruments at fair value through profit or loss | 518 | 413 |
3.d Net gain on financial instruments at fair value
through equity
| Year to 31 Dec. 2022 | ||
| restated according | ||
In millions of euros | Year to 31 Dec. 2023 | to IFRS 17 and 9 |
| Net gain on debt instruments | 14 | 19 |
Dividend income on equity instruments | 6 | 21 |
Net gain or loss on financial instruments at fair value through equity | 20 | 40 |
(1)
(1) Interest income from debt instruments is included in ‘Net interest income’ (Note 3.a), and impairment losses related to potential issuer default are included
in ‘Cost of risk’ (Note 3.g)
84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
Unrealised gains and losses on debt securities previously
recorded under ‘Changes in assets and liabilities recog-
nised directly in equity that may be reclassified to profit or
loss’ and included in the pre-tax income, amount to a net
gain of (3) million euros for the year ended 31 December
2023 compared with 28 million euros for the year ended
31 December 2022.
| Year to 31 Dec. 2022 restated | ||||||
| Year to 31 Dec. 2023 | according to IFRS 17 and 9 | |||||
| In millions of euros | Income | Expense | Net | Income | Expense | Net |
Net income from investment property | 39 | (8) | 31 | 35 | (9) | 26 |
Net income from assets held under operating leases | 15,684 | (12,046) | 3,638 | 13,040 | (10,287) | 2,753 |
Other net income | 974 | (957) | 17 | 893 | (828) | 65 |
Total net income from other activities | 16,697 | (13,011) | 3,686 | 13,968 | (11,124) | 2,844 |
| Year to 31 Dec. 2022 | ||
| restated according | ||
In millions of euros | Year to 31 Dec. 2023 | to IFRS 17 and 9 |
Salary and employee benefit expenses (note 7.a) | (2,895) | (2,588) |
External services and other operating expenses | (1,740) | (1,565) |
| Taxes and contributions | (486) | (517) |
Other operating expenses | (5,121) | (4,670) |
85
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 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 |
86
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
87
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
88
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
Annual averages | 2023 | 2024 | 2025 | 2026 |
| GDP growth rate | ||||
| Eurozone | 0.5 % | 0.8 % | 1.6 % | 1.7 % |
France | 0.9 % | 0.8 % | 1.5 % | 1.6 % |
Italy | 0.7 % | 0.8 % | 1.2 % | 1.3 % |
Belgium | 1.1 % | 0.9 % | 1.5 % | 1.6 % |
United States | 2.3 % | 0.7 % | 2.0 % | 2.1 % |
| Unemployment rate | ||||
| Eurozone | 6.6 % | 6.8 % | 6.6 % | 6.2 % |
France | 7.3 % | 7.6 % | 7.3 % | 6.7 % |
Italy | 7.6 % | 7.7 % | 7.6 % | 7.4 % |
Belgium | 5.6 % | 5.9 % | 5.8 % | 5.5 % |
United States | 3.7 % | 4.4 % | 4.2 % | 3.6 % |
| Inflation rate | ||||
Eurozone | 5.6 % | 2.8 % | 2.1 % | 2.2 % |
France | 5.8 % | 2.6 % | 2.2 % | 2.2 % |
Italy | 6.2 % | 2.9 % | 2.3 % | 2.3 % |
Belgium | 2.4 % | 3.2 % | 1.6 % | 2.1 % |
United States | 4.2 % | 2.6 % | 2.1 % | 2.1 % |
| 10-year sovereign bond yields | ||||
| Germany | 2.51 % | 2.58 % | 2.50 % | 2.50 % |
France | 3.06 % | 3.13 % | 3.05 % | 3.05 % |
Italy | 4.33 % | 4.58 % | 4.50 % | 4.50 % |
Belgium | 3.15 % | 3.22 % | 3.14 % | 3.14 % |
United States | 4.04 % | 4.19 % | 4.00 % | 4.00 % |
89
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
More fragile public finances. The fact that debt-to-GDP
| Year to 31 Dec. 2022 | ||
| restated according to | ||
In millions of euros | Year to 31 Dec. 2023 | IFRS 17 and 9 |
Net allowances to impairment | (265) | (311) |
Recoveries on loans and receivables previously written off | 25 | 28 |
Losses on irrecoverable loans | (40) | (45) |
Total cost of risk for the period | (280) | (328) |
90
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2022 | ||
| restated according to | ||
In millions of euros | Year to 31 Dec. 2023 | IFRS 17 and 9 |
Cash and balances at central banks | (8) | (4) |
Financial instruments at fair value through profit or loss | 2 | (3) |
Financial assets at fair value through equity | 4 | 15 |
Financial assets at amortised cost | (326) | (316) |
of which loans and receivables | (325) | (312) |
of which debt securities | (1) | (4) |
Other assets | (3) | (7) |
Financing and guarantee commitments and other items | 51 | (13) |
Total cost of risk for the period | (280) | (328) |
Cost of risk on unimpaired assets and commitments | 39 | (156) |
of which Stage 1 | 24 | (115) |
of which Stage 2 | 15 | (41) |
Cost of risk on impaired assets and commitments - Stage 3 | (319) | (172) |
| 31 December 2022 | Net | Impairment | Effect of exchange | ||
| restated according | allowance to | provisions | rate movements | ||
| In millions of euros | to IFRS 17 and 9 | impairment | used | and other items | 31 December 2023 |
| Assets impairment | |||||
Amounts due from central banks | 15 | 8 | - | (6) | 17 |
Financial instruments at fair value through profit or loss | 8 | (1) | - | (1) | 6 |
Financial assets at fair value through equity | 19 | (4) | - | (1) | 14 |
Financial assets at amortised cost | 3,067 | 318 | (343) | 190 | 3,232 |
of which loans and receivables | 3,060 | 317 | (343) | 192 | 3,226 |
of which debt securities | 7 | 1 | - | (2) | 6 |
Other assets | 9 | 2 | (1) | 1 | 11 |
Total impairment of financial assets | 3,118 | 323 | (344) | 183 | 3,280 |
of which Stage 1 | 356 | (10) | - | 29 | 375 |
of which Stage 2 | 477 | 7 | - | 14 | 498 |
of which Stage 3 | 2,285 | 326 | (344) | 140 | 2,407 |
| Provisions recognised as liabilities | |||||
Provisions for commitments | 242 | (54) | - | 7 | 195 |
Other provisions | 29 | (4) | - | 10 | 35 |
| Total provisions recognised for credit | 271 | (58) | - | 17 | 230 |
| commitments | |||||
of which Stage 1 | 66 | (17) | - | 4 | 53 |
of which Stage 2 | 85 | (27) | - | 5 | 63 |
of which Stage 3 | 120 | (14) | - | 8 | 114 |
Total impairment and provisions | 3,389 | 265 | (344) | 200 | 3,510 |
91
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Effect of exchange | 31 December 2022 | ||||
| Net allowance | Impairment | rate movements | restated according | ||
In millions of euros | 31 December 2021 | to impairment | provisions used | and other items | to IFRS 17 and 9 |
| Assets impairment | |||||
Amounts due from central banks | 12 | 5 | - | (2) | 15 |
Financial instruments at fair value through profit or loss | 10 | 2 | - | (4) | 8 |
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 |
| Impairment on assets | Impairment on | |||
| subject to 12-month | assets subject to | |||
| Expected Credit | lifetime Expected | Impairment on | ||
| Losses | Credit Losses | doubtful assets | ||
| In millions of euros | (Stage 1) | (Stage 2) | (Stage 3) | Total |
| At Year to 31 Dec. 2022 | 338 | 462 | 2,267 | 3,067 |
| restated according to IFRS 17 and 9 | ||||
Net allowances to impairment | (16) | 11 | 323 | 318 |
Financial assets purchased or originated during the period | 147 | 72 | 1 | 220 |
| Financial assets derecognised during the period | (56) | (41) | (155) | (252) |
Transfer to Stage 2 | (50) | 304 | (45) | 209 |
Transfer to Stage 3 | (4) | (88) | 378 | 286 |
Transfer to Stage 1 | 26 | (130) | (15) | (119) |
| Other allowances/reversals without stage transfer | (79) | (106) | 159 | (26) |
Impairment provisions used | - | - | (343) | (343) |
Effect of exchange rate movements and other items | 34 | 14 | 143 | 191 |
At 31 December 2023 | 356 | 487 | 2,390 | 3,233 |
92
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Impairment on assets | Impairment on | |||
| subject to 12-month | assets subject to | |||
| Expected Credit | lifetime Expected | Impairment on | ||
| Losses | Credit Losses | doubtful 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 |
| Year to 31 Dec. 2022 restated | ||
In millions of euros | Year to 31 Dec. 2023 | according to IFRS 17 and 9 |
Net gain on investments in consolidated undertakings | - | 7 |
Net gain on tangible and intangible assets | 191 | 18 |
Result from monetary position | (253) | 31 |
Net gain on non-current assets | (62) | 56 |
93
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2022 restated | ||||
| Year to 31 Dec. 2023 | according to IFRS 17 and 9 | |||
| Reconciliation of the effective tax expense to the theoretical tax expense | In millions | In millions | ||
| 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 | (1,178) | 25.00 % | (1,074) | 25.00 % |
Impact of differently taxed foreign profits | (41) | 0.9 % | 13 | (0.3 %) |
Impact of dividends and disposals taxed at reduced rate | 14 | (0.3 %) | 17 | (0.4 %) |
Impact of the hyperinflation in Turkey | (157) | 3.3 % | (137) | 3.2 % |
Other items | (120) | 2.5 % | (30) | 0.7 % |
Corporate income tax expense | (1,482) | 31.40 % | (1,211) | 28.20 % |
of which Current tax expense for the year to 31 December | (864) | (853) | ||
Deferred tax expense for the year to 31 December (Note 5.i) | (618) | (358) |
94
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
95
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
4 Segment information
4.a Operating segments
Banking activities in Belgium
In Belgium, BNP Paribas Fortis offers a comprehensive package
of financial services to private individuals, the self-employed,
members of the professions and SMEs. The bank also provides
high net worth individuals, corporations and public and finan-
cial institutions with customised solutions, for which it is able
to draw on the know-how and international network of the
mother company, BNP Paribas.
Retail Banking serves personal and self-employed customers,
helped by a multidisciplinary team; Affluent & Private Banking
serves personal and self-employed customers with more than
85,000 euros of assets, who each have a dedicated relationship
manager. BNP Paribas Fortis has a very strong presence in the
local market, through a network of 308 branches, plus other
channels such as ATMs and online banking facilities, including
mobile banking. In its retail banking activities, BNP Paribas
Fortis operates under three complementary brands: the
main brand BNP Paribas Fortis, plus Fintro and Hello bank!,
a 100 % digital mobile banking service. In the insurance sector,
BNP Paribas Fortis works in close cooperation with the Belgian
market leader, AG Insurance.
Corporate Banking (CB) serves business clients with a
dedicated relationship manager (Enterprises for small and
medium-sized businesses; Corporate Coverage for large cor-
porations, public-sector entities and institutional clients). CB
serves a wide range of clients, including small and medium-
sized companies, Belgian and European corporates, financial
institutions, institutional investors, public entities and local
authorities. It has a strong client base among large and
medium-sized companies and is the market leader in these
two categories, as well as a strong challenger in the public
sector. Providing a wide range of both traditional and bespoke
specialised solutions and services, and drawing on the inter-
national network of the BNP Paribas Group in 64 countries, CB
continues to meet the precise financing, transaction banking,
investment banking and insurance needs of its clients.
Banking activities in Luxembourg
BGL BNP Paribas ranks among the leading banks operat-
ing in the Luxembourg financial marketplace. It has made
a significant contribution to the country’s emergence as a
major international financial centre and is deeply rooted in
Luxembourg’s economic, cultural, sporting and social life.
As a partner with a longstanding commitment to the national
economy, BGL BNP Paribas offers a wide range of products
both for individuals and for professional and institutional
clients. Ranked as the number one bank for corporates and
the number two bank for resident individuals in the Grand
Duchy of Luxembourg, BGL BNP Paribas is also the leader in
bancassurance, providing combined offerings of insurance
and banking services.
Banking activities in Turkey
BNP Paribas Fortis operates in Turkey via Türk Ekonomi Bankasi
(TEB), in which it has a 48.7 % stake. Retail Banking products
and services consist of debit and credit cards, personal loans,
and investment and insurance products distributed through
the TEB branch network and via internet and phone banking.
Corporate banking services include international trade finance,
asset and cash management, credit services, currency hedging,
interest and commodity risk, plus factoring and leasing.
Through its commercial and SME banking departments, the
bank offers an array of banking services to small and medium-
sized enterprises.
Specialised businesses
The operating segment ‘Specialised businesses’ comprises
Arval, BNP Paribas Leasing Solutions and Personal Finance.
Fully owned by BNP Paribas Fortis, Arval specialises in full
service vehicle leasing. Arval offers its customers – large
international corporates, SMEs and professionals – tailored
solutions that optimise their employees’ mobility and out-
source the risks associated with fleet management. Expert
advice and service quality, which are the foundations of Arval’s
customer promise, are delivered in 29 countries.
BNP Paribas Leasing Solutions is a European leader in leasing
for corporate and small business clients. It specialises in rental
and finance solutions, ranging from professional equipment
leasing to fleet outsourcing.
Personal Finance comprises Alpha Credit, a wholly-owned
subsidiary of BNP Paribas Fortis and the leading provider
of consumer credits in Belgium and the Grand Duchy of
Luxembourg, as well as Creation Consumer Finance and
Creation Financial Services in the United Kingdom. They
market all types of instalment loans (personal loans, car
96
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2022 restated | ||||||||||||
| Year to 31 Dec. 2023 | according to IFRS 17 and 9 | |||||||||||
| Banking | Banking | Banking | ||||||||||
| activities | activities | Banking | Banking | activities | Banking | |||||||
| In millions | in | in Luxem- | activities | Specialised | activities | in Luxem- | activities | Specialised | ||||
| of euros | Belgium | bourg | in Turkey | businesses Other | Total | in Belgium | bourg | in Turkey | businesses | Other | Total | |
Revenues | 4,456 | 878 | 981 | 4,236 | - | 10,551 | 4,337 | 697 | 910 | 3,692 | 4 | 9,640 |
| Operating | (2,920) | (435) | (511) | (1,627) | (3) | (5,496) | (2,798) | (396) | (433) | (1,436) | (4) | (5,067) |
| expense | ||||||||||||
Cost of risk | (10) | (9) | 4 | (265) | - | (280) | (95) | 20 | (71) | (176) | (6) | (328) |
| Operating | 1,526 | 434 | 474 | 2,344 | (3) | 4,775 | 1,444 | 321 | 406 | 2,080 | (6) | 4,245 |
| Income | ||||||||||||
Non- operating | 4 | 182 | (232) | (9) | 304 | 249 | 264 | 3 | (18) | 73 | 242 | 564 |
| items | ||||||||||||
| Pre-tax | 1,530 | 616 | 242 | 2,335 | 301 | 5,024 | 1,708 | 324 | 388 | 2,153 | 236 | 4,809 |
| income |
| 31 December 2022 | ||||||||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||||||||
| Banking | Banking | Banking | Banking | |||||||||
| activities | activities | Banking | activities | activities | Banking | |||||||
| In millions | in | in Luxem- | activities | Specialised | in | in Luxem- | Specialised | activities | ||||
| of euros | Belgium | bourg | in Turkey | businesses | Other | Total | Belgium | bourg | businesses | in Turkey | Other | Total |
Assets | 236,267 | 32,759 | 13,948 | 88,151 | 2,755 | 373,880 | 226,806 | 31,222 | 74,755 | 14,960 | 2,522 | 350,265 |
of which invest- ments in associates | 738 | 97 | 5 | 53 | 1,738 | 2,631 | 731 | 96 | 98 | 5 | 1,550 | 2,480 |
| and Joint | ||||||||||||
| ventures | ||||||||||||
Liabilities | 221,029 | 26,310 | 12,670 | 81,694 | 998 | 342,701 | 210,796 | 25,156 | 68,840 | 13,549 | 956 | 319,297 |
97
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| In millions of euros, | Pre-tax | Current | Deferred | Corporate | FTE (**) as at | Nature of | |
Year to 31 Dec. 2023 (*) | Revenues | income | tax | tax | income tax | 31 Dec. 2023 | activities |
Belgium | 4,735 | 1,651 | (294) | (169) | (463) | 11,983 | |
| of which: BNP Paribas Fortis NV/ | |||||||
| SA (Including Bass & Esmée Master | 3,929 | 1,246 | (195) | (171) | (366) | 10,352 | Credit institution |
| Issuer NV) | |||||||
Turkey | 1,037 | 287 | (184) | (101) | (285) | 9,034 | |
of which: Türk Ekonomi Bankası AS | 777 | 177 | (155) | (62) | (217) | 8,274 | Credit institution |
Luxembourg | 901 | 627 | (81) | (64) | (144) | 2,058 | |
of which: BGL BNP Paribas | 869 | 612 | (95) | (47) | (142) | 1,967 | Credit institution |
France | 938 | 390 | (22) | (86) | (108) | 3,545 | |
of which: Arval Service Lease | 407 | 144 | 3 | (49) | (46) | 2,002 | Leasing firm |
Germany | 322 | 191 | (50) | (23) | (72) | 512 | |
Poland | 91 | 52 | (14) | (2) | (16) | 582 | |
United Kingdom | 670 | 329 | (44) | (39) | (82) | 1,536 | |
Spain | 457 | 334 | (36) | (47) | (83) | 894 | |
The Netherlands | 185 | 87 | (16) | (7) | (23) | 619 | |
Italy | 651 | 423 | (84) | (54) | (138) | 1,171 | |
Other | 564 | 342 | (39) | (26) | (68) | 2,388 | |
Total | 10,551 | 4,713 | (864) | (618) | (1,482) | 34,322 |
98
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||||
Other | Other | |||||||
| Financial | financial | Financial | financial | |||||
| instruments | assets at | instruments | assets at | |||||
| designated as | fair value | designated | fair value | |||||
at fair value through | as at fair | through | ||||||
| Trading | through | profit or | Trading | value through | profit or | |||
| In millions of euros | Book | profit or loss | loss | Total | Book | profit or loss | loss | Total |
Securities | 535 | - | 1,069 | 1,604 | 388 | - | 988 | 1,376 |
Loans and repurchase agreements | 1,597 | - | 77 | 1,674 | 2,502 | - | 56 | 2,558 |
Financial assets at fair value through profit or loss | 2,132 | - | 1,146 | 3,278 | 2,890 | - | 1,044 | 3,934 |
Securities | 697 | - | - | 697 | 603 | - | - | 603 |
Deposits and repurchase agreements | 11,654 | 134 | - | 11,788 | 7,415 | 147 | - | 7,562 |
Issued debt securities (note 5.h) | - | 2,721 | - | 2,721 | - | 2,388 | - | 2,388 |
Of which subordinated debt | - | 735 | - | 735 | - | 675 | - | 675 |
Of which non subordinated debt | - | 1,986 | - | 1,986 | - | 1,713 | - | 1,713 |
Financial liabilities at fair value through profit or loss | 12,351 | 2,855 | - | 15,206 | 8,018 | 2,535 | - | 10,553 |
99
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||
| In millions of euros | Positive market value | Negative market value | Positive market value Negative market value | |
Interest rate derivatives | 4,552 | 4,762 | 5,718 | 5,783 |
Foreign exchange derivatives | 1,176 | 1,310 | 2,172 | 2,102 |
Credit derivatives | - | 23 | - | - |
Equity derivatives | 413 | 46 | 491 | 82 |
Other derivatives | - | - | - | - |
Derivative financial instruments | 6,141 | 6,141 | 8,381 | 7,967 |
| 31 December 2022 | ||||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||||
| Over-the-counter, | Over-the- | |||||||
| cleared through | counter, cleared | |||||||
| Exchange- | central clearing | Over-the- | Exchange- | through central | Over-the- | |||
| In millions of euros | traded | houses | counter | Total | traded | clearing houses | counter | Total |
Interest rate derivatives | 49,214 | 55,294 | 195,269 | 299,777 | 35,546 | 57,541 | 221,567 | 314,654 |
Foreign exchange derivatives | - | - | 102,795 | 102,795 | 207 | - | 109,637 | 109,844 |
Credit derivatives | - | - | 250 | 250 | - | - | 9 | 9 |
Equity derivatives | 69 | - | 763 | 832 | 186 | - | 1,196 | 1,382 |
Other derivatives | - | - | - | - | - | - | - | - |
| Derivative financial | 49,283 | 55,294 | 299,077 | 403,654 | 35,939 | 57,541 | 332,409 | 425,889 |
| instruments | ||||||||
100
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||
| Notional | Positive | Negative | Notional | Positive | Negative | |
| In millions of euros | amounts | fair value | fair value | amounts | fair value | fair value |
Fair value hedges | 205,835 | 5,198 | 8,070 | 193,607 | 6,324 | 9,438 |
Interest rate derivatives | 205,589 | 5,194 | 8,049 | 193,321 | 6,317 | 9,424 |
Foreign exchange derivatives | 246 | 4 | 21 | 286 | 7 | 14 |
Cash flow hedges | 22,282 | 220 | 201 | 15,369 | 175 | 254 |
Interest rate derivatives | 5,004 | 44 | 96 | 2,639 | 47 | 123 |
Foreign exchange derivatives | 17,278 | 176 | 105 | 12,730 | 128 | 131 |
Other derivatives | - | - | - | - | - | - |
Net foreign investment hedges | - | - | - | - | - | - |
Foreign exchange derivatives | - | - | - | - | - | - |
Derivatives used for hedging purposes | 228,117 | 5,418 | 8,271 | 208,976 | 6,499 | 9,692 |
101
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
Hedging instruments | Hedged instruments | |||||||
| Cumulated | Cumulated | Cumulated | ||||||
| change in fair | amount | amount | ||||||
| value used as | of fair | of fair | ||||||
| Positive | Negative | the basis for | Carrying | value hedge | Carrying | value hedge | ||
| 31 December 2023 | Notional | fair | fair | recognising | amount | adjustments | amount - | adjustments |
| In millions of euros | amounts | value | value | ineffectiveness | - asset | - assets | liabilities | - liabilities |
Fair value hedges of identified instruments | 33,755 | 579 | 1,291 | (758) | 15,787 | 651 | 17,925 | (65) |
| Interest rate derivatives hedging | 33,509 | 575 | 1,270 | (756) | 15,747 | 653 | 17,715 | (61) |
the interest rate risk related to Loans and receivables | 1,886 | 19 | 152 | (128) | 1,876 | 129 | - | - |
Securities | 13,904 | 498 | 1,001 | (568) | 13,871 | 524 | - | - |
Deposits | 11,695 | 4 | 8 | (3) | - | - | 11,892 | (3) |
| Debt securities | 6,024 | 54 | 109 | (57) | - | - | 5,823 | (58) |
F oreign exchange derivatives hedging | ||||||||
| the interest rate and foreign exchange | 246 | 4 | 21 | (2) | 40 | (2) | 210 | (4) |
risks related to Loans and receivables | - | - | - | - | - | - | - | - |
Securities | 38 | 2 | 20 | 2 | 40 | (2) | - | - |
Deposits | - | - | - | - | - | - | - | - |
| Debt securities | 208 | 2 | 1 | (4) | - | - | 210 | (4) |
Interest-rate risk hedged portfolios | 172,080 | 4,619 | 6,779 | (1,862) | 29,273 | (1,943) | 38,864 | (3,807) |
Interest rate derivatives hedging the interest rate risk related to | 172,080 | 4,619 | 6,779 | (1,862) | 29,273 | (1,943) | 38,864 | (3,807) |
Loans and receivables | 48,427 | 2,450 | 318 | 1,939 | 29,273 | (1,943) | - | - |
| Deposits | 123,653 | 2,169 | 6,461 | (3,801) | - | - | 38,864 | (3,807) |
F oreign exchange derivatives hedging | ||||||||
| the interest rate and foreign exchange | - | - | - | - | - | - | - | - |
risks related to Loans and receivables | - | - | - | - | - | - | - | - |
Deposits | - | - | - | - | - | - | - | - |
Total fair value hedge | 205,835 | 5,198 | 8,070 | (2,620) | 45,060 | (1,292) | 56,789 | (3,872) |
Hedging instruments | Hedged instruments | |||||||
| Cumulated | Cumulated | Cumulated | ||||||
| change in fair | amount of | amount of | ||||||
| value used as | fair value | fair value | ||||||
| 31 December 2022 | Notional | Positive Negative | the basis for | Carrying | hedge | Carrying | hedge | |
| restated according to IFRS 17 and 9 | fair | fair | recognising | amount | adjustments amount - | adjustments | ||
| In millions of euros | amounts | value | value | ineffectiveness | - asset | - assets | liabilities | - liabilities |
Fair value hedges of identified instruments | 11,639 | 682 | 839 | (79) | 8,458 | (149) | 3,062 | (174) |
| Interest rate derivatives hedging | 11,353 | 675 | 825 | (76) | 8,417 | (145) | 2,812 | (167) |
the interest rate risk related to Loans and receivables | 810 | 24 | 155 | (121) | 792 | 121 | - | - |
Securities | 7,565 | 645 | 501 | 212 | 7,625 | (266) | - | - |
Deposits | - | - | - | - | - | - | - | - |
Debt securities | 2,978 | 6 | 169 | (167) | - | - | 2,812 | (167) |
| Foreign exchange derivatives hedging | ||||||||
| the interest rate and foreign exchange | 286 | 7 | 14 | (3) | 41 | (4) | 250 | (7) |
risks related to Loans and receivables | - | - | - | - | - | - | - | - |
Securities | 39 | 4 | 2 | 4 | 41 | (4) | - | - |
Deposits | - | - | - | - | - | - | - | - |
Debt securities | 247 | 3 | 12 | (7) | - | - | 250 | (7) |
Interest-rate risk hedged portfolios | 181,968 | 5,642 | 8,599 | (2,921) | 20,387 | (2,301) | 52,371 | (5,226) |
| Interest rate derivatives hedging | 181,968 | 5,642 | 8,599 | (2,921) | 20,387 | (2,301) | 52,371 | (5,226) |
the interest rate risk related to Loans and receivables | 83,963 | 2,986 | 795 | 2,300 | 20,387 | (2,301) | - | - |
Securities | - | - | - | - | - | - | - | - |
Deposits | 98,005 | 2,656 | 7,804 | (5,221) | - | - | 52,371 | (5,226) |
| Foreign exchange derivatives hedging | ||||||||
| the interest rate and foreign exchange | - | - | - | - | - | - | - | - |
risks related to Loans and receivables | - | - | - | - | - | - | - | - |
Deposits | - | - | - | - | - | - | - | - |
Total fair value hedge | 193,607 | 6,324 | 9,438 | (3,000) | 28,845 | (2,450) | 55,433 | (5,400) |
102
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
103
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2023 | Maturity date | ||
| In millions of euros | Less than 1 year | Between 1 to 5 years | Over 5 years |
Fair value hedges | 56,856 | 91,486 | 57,493 |
Interest rate derivatives | 56,809 | 91,287 | 57,493 |
Foreign exchange derivatives | 47 | 199 | - |
Cash flow hedges | 16,970 | 4,762 | 550 |
Interest rate derivatives | 1,833 | 2,621 | 550 |
Foreign exchange derivatives | 15,137 | 2,141 | - |
Other derivatives | - | - | - |
Net foreign investments hedges | - | - | - |
Foreign exchange derivatives | - | - | - |
| 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 | - | - | - |
104
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||
| of which changes in value | Fair | of which changes in value | ||
| In millions of euros | Fair value | taken directly to equity | value | taken directly to equity |
Debt securities | 10,651 | (120) | 5,739 | (70) |
Governments | 2,716 | (50) | 1,029 | (3) |
Other public administrations | 4,245 | (24) | 2,390 | (20) |
Credit institutions | 3,020 | (22) | 1,653 | (18) |
Other | 670 | (24) | 667 | (29) |
Equity securities | 151 | 108 | 138 | 91 |
Total financial assets at fair value through equity | 10,802 | (12) | 5,877 | 21 |
105
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
106
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2023 | ||||||||||||
| 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 | 499 | 37 | - | 536 | 159 | 51 | 858 | 1,068 | 10,298 | 446 | 58 | 10,802 |
Governments | 383 | - | - | 383 | - | - | - | - | 2,612 | 34 | 48 | 2,694 |
Asset Backed Securities | - | - | - | - | - | 51 | - | 51 | - | 325 | - | 325 |
Other debt securities | 39 | 37 | - | 76 | - | (5) | 140 | 135 | 7,545 | 87 | - | 7,632 |
| Equities and other equity | 77 | - | - | 77 | 159 | 5 | 718 | 882 | 141 | - | 10 | 151 |
| securities | ||||||||||||
| Loans and repurchase | - | 1,499 | 97 | 1,596 | - | 5 | 73 | 78 | - | - | - | - |
| agreements | ||||||||||||
Loans | - | - | - | - | - | 5 | 73 | 78 | - | - | - | - |
Repurchase agreements | - | 1,499 | 97 | 1,596 | - | - | - | - | - | - | - | - |
Financial assets at fair value | 499 | 1,536 | 97 | 2,132 | 159 | 56 | 931 | 1,146 | 10,298 | 446 | 58 | 10,802 |
Securities | 697 | - | - | 697 | - | - | - | - | ||||
Governments | 626 | - | - | 626 | - | - | - | - | ||||
Other debt securities | 71 | - | - | 71 | - | - | - | - | ||||
| Equities and other equity | - | - | - | - | - | - | - | - | ||||
| securities | ||||||||||||
Borrowings and repurchase agreements | - | 11,654 | - | 11,654 | - | 134 | - | 134 | ||||
Borrowings | - | 13 | - | 13 | - | 134 | - | 134 | ||||
Repurchase agreements | - | 11,641 | - | 11,641 | - | - | - | - | ||||
| Issued debt securities | - | - | - | - | - | 2,114 | 607 | 2,721 | ||||
| (Note 4.h) | ||||||||||||
| Subordinated debt | - | - | - | - | - | 735 | - | 735 | ||||
| (Note 4.h) | ||||||||||||
| Non subordinated debt | - | - | - | - | - | 1,379 | 607 | 1,986 | ||||
| (Note 4.h) | ||||||||||||
Financial liabilities at fair value | 697 | 11,654 | - | 12,351 | - | 2,248 | 607 | 2,855 | ||||
107
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||||||||||
| restated according to IFRS 17 and 9 | ||||||||||||
| 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 | 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 | ||||
108
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2023 | ||||||||
Positive market value | Negative market value | |||||||
| In millions of euros | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
Interest rate derivatives | 379 | 4,014 | 159 | 4,552 | 438 | 4,200 | 124 | 4,762 |
Foreign exchange derivatives | - | 1,176 | - | 1,176 | - | 1,303 | 7 | 1,310 |
Credit derivatives | - | - | - | - | - | 23 | - | 23 |
Equity derivatives | - | 413 | - | 413 | - | 46 | - | 46 |
Other derivatives | - | - | - | - | - | - | - | - |
Derivative financial instruments not used for hedging purposes | 379 | 5,603 | 159 | 6,141 | 438 | 5,572 | 131 | 6,141 |
| Derivative financial instruments | - | 5,418 | - | 5,418 | - | 8,271 | - | 8,271 |
| used for hedging purposes |
| 31 December 2022 | ||||||||
| restated according to IFRS 17 and 9 | ||||||||
Positive market value | Negative market value | |||||||
| In millions of euros | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
Interest rate derivatives | 1 | 5,556 | 161 | 5,718 | 162 | 5,512 | 109 | 5,783 |
Foreign exchange derivatives | - | 2,171 | 1 | 2,172 | - | 2,094 | 8 | 2,102 |
Credit derivatives | - | - | - | - | - | - | - | - |
Equity derivatives | - | 491 | - | 491 | - | 82 | - | 82 |
Other derivatives | - | - | - | - | - | - | - | - |
Derivative financial instruments not used for hedging purposes | 1 | 8,218 | 162 | 8,381 | 162 | 7,688 | 117 | 7,967 |
| Derivative financial instruments | - | 6,499 | - | 6,499 | - | 9,692 | - | 9,692 |
| used for hedging purposes |
109
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
110
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
111
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
Inflation derivatives classified in Level 3 mainly comprise
112
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Balance Sheet | Range of | ||||||
| valuation | unobservable | ||||||
| (In millions | Main unobservable | input across | |||||
| of euros) | Main product types | Valuation technique | inputs for | Level 3 | |||
| composing the Level 3 stock | used for the product | the product types | population | Weighted | |||
| Risk classes | Asset | Liability | within the risk class | types considered | considered | considered | average |
| Proxy techniques, based | |||||||
| amongst others on | Long-term repo | ||||||
| Repurchase | Long-term repo and | the funding basis of a | spread on private | 0 bp to | |||
| agreements | 97 | - | reverse-repo agreements | benchmark bond pool, | bonds (High Yield, | 152 bp | 30 bp |
| that is actively traded | High Grade) and on | ||||||
| and representative of | ABSs | ||||||
| the repo underlying | |||||||
| Correlation between | |||||||
| Hybrid Forex / Interest | Hybrid Forex interest | FX rate and interest | |||||
| rates derivatives | rate option pricing | rates. Main currency | -16 % to 52 % | 8 % | |||
| model | pairs are EUR/JPY, | ||||||
| USD/JPY, AUD/JPY | |||||||
| Hybrid inflation interest | Correlation between | ||||||
| Hybrid inflation rates / | rate option pricing | interest rates and | 10 % to 32 % | 29 % | |||
| Interest rates derivatives | model | inflation rates | |||||
| mainly in Europe | |||||||
| Floors and caps on inflation | Volatility of | 1.3 % to 11.7 % | |||||
| Interest rate | rate or on the cumulative | cumulative inflation | |||||
| derivatives | 159 | 124 | inflation (such as | Inflation pricing model | Volatility of the year | (b) | |
| redemption floors), | |||||||
| predominantly on European | on year inflation | 0.5 % to 2.8 % | |||||
| and Belgian inflation | rate | ||||||
| Forward volatility products | Interest rates option | Forward volatility of | |||||
| such as volatility swaps, | pricing model | interest rates | 0.5 % to 1.0 % | (b) | |||
| mainly in euro | |||||||
| Balance-guaranteed | |||||||
| fixed rate, basis or | Prepayment modeling | Constant | |||||
| cross currency swaps, | Discounted cash flows | prepayment rates | 0 % to 18 % | 2 % | |||
| predominantly on European | |||||||
| collateral pools | |||||||
113
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
Financial assets | Financial liabilities | ||||||
| Financial | Financial | ||||||
| Financial | instruments | Financial | instruments | ||||
| instruments | designated as | instruments | designated as | ||||
| at fair value | at fair value | Financial | at fair value | at fair value | |||
| through | through | assets at | through | through | |||
| profit or | profit or loss | fair value | profit or | profit or loss | |||
| loss held for | not held for | through | loss held for | not held for | |||
| In millions of euros | trading | trading | equity | Total | trading | trading | Total |
| At 31 December 2022 | 261 | 774 | 10 | 1,045 | 117 | 677 | 794 |
| restated according to IFRS 17 and 9 | |||||||
Purchases | - | 125 | 28 | 153 | - | - | - |
Issues | - | - | - | - | - | 17 | 17 |
Sales | - | (55) | (2) | (57) | - | - | - |
| Settlements | 2 | 21 | - | 23 | 5 | (70) | (65) |
Transfers to Level 3 | - | - | - | - | - | - | - |
Transfers from Level 3 | - | - | - | - | - | (44) | (44) |
Gains or (losses) recognised in profit or loss with respect to transactions expired or terminated during the period | - | 68 | 30 | 98 | - | - | - |
Gains or (losses) recognised in profit or loss with respect to unexpired instruments at the end of the period | (7) | - | - | (7) | 9 | 27 | 36 |
| Changes in fair value of assets and liabilities | - | - | - | - | - | - | - |
| recognised directly in equity | |||||||
- Items related to exchange rate movements | - | (2) | (1) | (3) | - | - | - |
- Changes in assets and liabilities recognised in equity | - | - | (7) | (7) | - | - | - |
At 31 December 2023 | 256 | 931 | 58 | 1,245 | 131 | 607 | 738 |
114
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||
| 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 | +/-7 | +/-0 | +/-6 | +/-0 |
Loans and repurchase agreements | +/-0 | +/-2 | ||
Derivative financial instruments | +/-2 | +/-6 | ||
Interest rate and foreign exchange derivatives | +/-6 | +/-6 | ||
Credit derivatives | +/-6 | +/-0 | ||
Equity derivatives | +/-0 | +/-0 | ||
Other derivatives | +/-0 | +/-0 | ||
Sensitivity of Level 3 financial instruments | +/-16 | +/-0 | +/-15 | +/-0 |
115
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | |||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | ||||||
| Impairment | Carrying | Impairment | Carrying | ||||
| In millions of euros | Gross value | (note 3.g) | amount | Gross value | (note 3.g) | amount | |
Loans and advances to credit institutions | 19,173 | (57) | 19,116 | 11,288 | (68) | 11,220 | |
On demand accounts | 2,999 | (1) | 2,998 | 5,794 | - | 5,794 | |
| Loans | 3,226 | (56) | 3,170 | 2,629 | (68) | 2,561 | |
Repurchase agreements | 12,948 | - | 12,948 | 2,865 | - | 2,865 | |
Loans and advances to customers | 222,472 | (3,169) | 219,303 | 219,777 | (2,992) | 216,785 | |
On demand accounts | 4,589 | (592) | 3,997 | 4,224 | (540) | 3,684 | |
Loans to customers | 194,883 | (2,038) | 192,845 | 194,351 | (1,954) | 192,397 | |
Finance leases | 23,000 | (539) | 22,461 | 21,202 | (498) | 20,704 | |
Repurchase agreements | - | - | - | - | - | - | |
Total loans and advances at amortised cost | 241,645 | (3,226) | 238,419 | 231,065 | (3,060) | 228,005 |
| 31 December 2022 | ||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||
| Impairment | Carrying | Impairment | Carrying | |||
| In millions of euros | Gross value | (note 3.g) | amount | Gross value | (note 3.g) | amount |
Governments | 9,229 | (5) | 9,224 | 9,351 | (6) | 9,345 |
Other public administrations | 2,070 | - | 2,070 | 2,212 | - | 2,212 |
Credit institutions | 774 | - | 774 | 1,117 | - | 1,117 |
Other | 440 | (1) | 439 | 478 | (1) | 477 |
Total debt securities at amortised cost | 12,513 | (6) | 12,507 | 13,158 | (7) | 13,151 |
116
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
331 | December 2022 | |||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||
| Impairment | Carrying | Impairment | Carrying | |||
| In millions of euros | Gross value | (note 3.g) | amount | Gross value | (note 3.g) | amount |
Loans and advances to credit institutions | 19,173 | (57) | 19,116 | 11,288 | (68) | 11,220 |
Stage 1 | 18,985 | (1) | 18,984 | 11,177 | (2) | 11,175 |
Stage 2 | 121 | (1) | 120 | 42 | (1) | 41 |
Stage 3 | 67 | (55) | 12 | 69 | (65) | 4 |
Loans and advances to customers | 222,472 | (3,169) | 219,303 | 219,777 | (2,992) | 216,785 |
Stage 1 | 197,548 | (349) | 197,199 | 193,193 | (330) | 192,863 |
Stage 2 | 20,235 | (485) | 19,750 | 22,317 | (461) | 21,856 |
Stage 3 | 4,689 | (2,335) | 2,354 | 4,267 | (2,201) | 2,066 |
Debt securities | 12,513 | (6) | 12,507 | 13,158 | (7) | 13,151 |
Stage 1 | 12,492 | (5) | 12,487 | 13,155 | (7) | 13,148 |
Stage 2 | 21 | (1) | 20 | 3 | - | 3 |
Stage 3 | - | - | - | - | - | - |
Total financial assets at amortised cost | 254,158 | (3,232) | 250,926 | 244,223 | (3,067) | 241,156 |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Gross investment | 25,198 | 22,541 |
Receivable within 1 year | 7,578 | 7,215 |
Receivable after 1 year but within 5 years | 15,243 | 13,956 |
Receivable beyond 5 years | 2,377 | 1,370 |
UNEARNED INTEREST INCOME | (2,198) | (1,339) |
Net investment before impairment | 23,000 | 21,202 |
Receivable within 1 year | 6,679 | 6,648 |
Receivable after 1 year but within 5 years | 14,087 | 13,285 |
Receivable beyond 5 years | 2,234 | 1,269 |
IMPAIRMENT PROVISIONS | (539) | (498) |
Net investment after impairment | 22,461 | 20,704 |
117
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
5.f Impaired financial assets (Stage 3)
The following tables present the carrying amounts of impaired
financial assets carried at amortised cost and of impaired
financing and guarantee commitments, as well as related
collateral and other guarantees.
The amounts shown for collateral and other guarantees cor-
respond to the lower of the value of the collateral or other
guarantee and the value of the secured assets.
| 31 December 2023 | ||||
| Stage 3 assets | ||||
| In millions of euros | Gross value | Impairment | Net | Collateral received |
Loans and advances to credit institutions (note 5.e) | 67 | (55) | 12 | - |
Loans and advances to customers (note 5.e) | 4,689 | (2,335) | 2,354 | 1,813 |
Debt securities at amortised cost (note 5.e) | - | - | - | - |
Total amortised cost impaired assets (Stage 3) | 4,756 | (2,390) | 2,366 | 1,813 |
Financing commitments given | 194 | (20) | 174 | 75 |
Guarantee commitments given | 138 | (60) | 78 | 53 |
Total off-balance sheet impaired commitments (Stage 3) | 332 | (80) | 252 | 128 |
| 31 December 2022 | ||||
| restated according to IFRS 17 and 9 | ||||
| Stage 3 assets | ||||
| In millions of euros | Gross value | Impairment | Net | Collateral received |
Loans and advances to credit institutions (note 5.e) | 69 | (65) | 4 | - |
Loans and advances to customers (note 5.e) | 4,267 | (2,201) | 2,066 | 1,589 |
Debt securities at amortised cost (note 5.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 |
The table below shows information regarding the variations of the gross outstandings in Stage 3 :
| Gross value Impaired financial assets (Stage 3) | 31 December 2022 | |
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Opening balance | 4,336 | 4,365 |
Transfer to Stage 3 | 1,653 | 1,089 |
Transfer to Stage 1 or Stage 2 | (518) | (336) |
Amounts Written offs | (359) | (293) |
Other changes | (356) | (489) |
Closing balance | 4,756 | 4,336 |
118
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 restated | ||
In millions of euros | 31 December 2023 | according to IFRS 17 and 9 |
Deposits from credit institutions | 62,845 | 46,295 |
On demand accounts | 1,565 | 1,702 |
| Interbank borrowings | 32,636 | 43,021 |
Repurchase agreements | 28,644 | 1,572 |
Deposits from customers | 203,931 | 212,692 |
On demand deposits | 78,779 | 94,358 |
Savings accounts | 81,310 | 88,837 |
Term accounts and short-term notes | 43,181 | 29,443 |
Repurchase agreements | 661 | 54 |
| 31 December 2022 restated | ||
In millions of euros | 31 December 2023 | according to IFRS 17 and 9 |
Debt securities | 1,986 | 1,713 |
Subordinated debt | 735 | 675 |
Total debt securities and subordinated debt at fair value through profit or loss | 2,721 | 2,388 |
| 31 December 2022 restated | ||
In millions of euros | 31 December 2023 | according to IFRS 17 and 9 |
Negotiable certificates of deposit and other debt securities | 10,331 | 9,950 |
Bond issues | 13,470 | 6,302 |
Total debt securities at amortised cost | 23,801 | 16,252 |
119
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 restated | ||
In millions of euros | 31 December 2023 | according to IFRS 17 and 9 |
Redeemable subordinated debt | 2,235 | 2,283 |
Undated subordinated debt | - | - |
Total subordinated debt measured at amortised cost | 2,235 | 2,283 |
| 31 December 2022 restated | ||
In millions of euros | 31 December 2023 | according to IFRS 17 and 9 |
Current taxes | 217 | 121 |
Deferred taxes | 847 | 1,119 |
Current and deferred tax assets | 1,064 | 1,240 |
Current taxes | 278 | 301 |
Deferred taxes | 1,084 | 782 |
Current and deferred tax liabilities | 1,362 | 1,083 |
120
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Changes | Changes | Changes in the | ||||
| recognised | recognised | consolidation | ||||
| Changes | through equity | through equity | scope, in | |||
| 31 December 2022 | recognised | that may be | that will not be | exchange rate | ||
| restated according | through | reclassified to | reclassified to | movements and | ||
| In millions of euros | to IFRS 17 and 9 | profit or loss | profit or loss | profit or loss | other items | 31 December 2023 |
Financial instruments | 18 | (91) | 14 | 1 | 36 | (22) |
| Provisions for employee benefit | 120 | (12) | - | 18 | (10) | 116 |
| obligations | ||||||
| Unrealised finance lease | (212) | (49) | - | - | (29) | (290) |
| reserve | ||||||
Credit risk impairment | 534 | 12 | - | - | (11) | 535 |
Tax loss carryforwards | 422 | (135) | - | - | 3 | 290 |
Other items | (545) | (343) | - | - | 22 | (866) |
Net deferred taxes | 337 | (618) | 14 | 19 | 11 | (237) |
Deferred tax assets | 1,119 | 847 | ||||
Deferred tax liabilities | 782 | 1,084 |
| 31 December 2022 | ||
| restated according to | ||
In millions of euros | 31 December 2023 | IFRS 17 and 9 |
Guarantee deposits and bank guarantees paid | 4,898 | 4,437 |
Collection accounts | 126 | 74 |
Accrued income and prepaid expenses | 1,276 | 1,147 |
Other debtors and miscellaneous assets | 7,368 | 5,755 |
Total accrued income and other assets | 13,668 | 11,413 |
Guarantee deposits received | 731 | 2,262 |
Collection accounts | 621 | 567 |
Accrued expense and deferred income | 2,302 | 2,158 |
Lease liabilities | 309 | 291 |
Other creditors and miscellaneous liabilities | 8,288 | 6,095 |
Total accrued expense and other liabilities | 12,251 | 11,373 |
121
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December | ||||||||
| 2022 restated | ||||||||
| 31 December | Year to 31 Dec. 2022 | according to | ||||||
| Year to 31 Dec. 2023 | 2023 | restated according to IFRS 17 and 9 | IFRS 17 and 9 | |||||
| Share of | Share of | |||||||
| changes in | Share of net | changes in | Share of net | |||||
| assets and | income and | assets and | income and | |||||
| liabilities | changes in assets | liabilities | changes in assets | |||||
| Share | recognised | and liabilities | Equity- | Share | recognised | and liabilities | ||
| of net | directly in | recognised | method | of net | directly in | recognised | Equity-method | |
| In millions of euros | income | equity | directly in equity | investments | income | equity | directly in equity | investments |
Joint ventures | 3 | (5) | (2) | 106 | 3 | 121 | 124 | 95 |
| Associates | 308 | 129 | 437 | 2,525 | 260 | (302) | (42) | 2,385 |
| Total equity-method | 311 | 124 | 435 | 2,631 | 263 | (181) | 82 | 2,480 |
| entities |
| 31 December 2022 restated | ||||||
| 31 December 2023 | according to IFRS 17 and 9 | |||||
| Country of | Equity-method | Equity-method | ||||
| In millions of euros | registration | Activity | Interest % | investments | Interest % | investments |
| Associates | ||||||
AG Insurance | Belgium | Insurance | 25 % | 607 | 25 % | 634 |
BNP Paribas Asset Management | France | Asset management | 30.9 % | 915 | 30.9 % | 854 |
BNPP Bank Polska | Poland | Retail banking | 24.0 % | 705 | 24.0 % | 572 |
122
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2022 | ||
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Total net income | 674 | 484 |
Changes in assets and liabilities recognised directly in equity | 343 | (903) |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Total assets | 71,594 | 73,688 |
Total liabilities | 69,519 | 71,816 |
Net assets of the equity associate | 2,075 | 1,872 |
| Year to 31 Dec. 2022 | ||
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Total net income | 138 | 240 |
Changes in assets and liabilities recognised directly in equity | 200 | (9) |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Total assets | 3,291 | 2,934 |
Total liabilities | 2,235 | 2,201 |
Net assets of the equity associate | 1,056 | 733 |
| Year to 31 Dec. 2022 | ||
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Total net income | 211 | 76 |
Changes in assets and liabilities recognised directly in equity | 127 | (115) |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Total assets | 35,911 | 31,116 |
Total liabilities | 33,055 | 28,800 |
Net assets of the equity associate | 2,856 | 2,316 |
123
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2023 | |||
| BNP Paribas Asset | |||
| In millions of euros | Management | BNP Paribas Bank Polska SA | AG Insurance |
| Cost of capital | |||
Adverse change (+10 basis points) | (14) | (13) | (35) |
Positive change (-10 basis points) | 15 | 14 | 36 |
| Cost/income ratio | |||
Adverse change (+1 %) | (21) | (21) | - |
Positive change (-1 %) | 21 | 21 | - |
| Cost of risk | |||
Adverse change (+5 %) | - | (6) | - |
Positive change (-5 %) | - | 6 | - |
| Long-term growth rate | |||
Adverse change (-50 basis points) | (47) | (29) | (133) |
Positive change (+50 basis points) | 53 | 32 | 156 |
124
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||
| Accumulated | Accumulated | |||||
| depreciation, | depreciation, | |||||
| amortisation and | Carrying | amortisation and | Carrying | |||
In millions of euros | Gross value | impairment | amount | Gross value | impairment | amount |
Investment property | 217 | (106) | 111 | 260 | (128) | 132 |
Land and buildings | 2,558 | (1,398) | 1,160 | 2,812 | (1,529) | 1,283 |
Equipment, furniture and fixtures | 634 | (449) | 185 | 707 | (519) | 188 |
Plant and equipment leased as lessor under operating leases | 45,242 | (10,586) | 34,656 | 38,360 | (10,680) | 27,680 |
Other property, plant and equipment | 534 | (171) | 363 | 481 | (183) | 298 |
Property, plant and equipment | 48,968 | (12,604) | 36,364 | 42,360 | (12,911) | 29,449 |
of which right of use | 729 | (417) | 312 | 722 | (419) | 303 |
Purchased software | 323 | (235) | 88 | 307 | (235) | 72 |
Internally-developed software | 1,346 | (898) | 448 | 1,127 | (753) | 374 |
Other intangible assets | 113 | (78) | 35 | 95 | (73) | 22 |
Intangible assets | 1,782 | (1,211) | 571 | 1,529 | (1,061) | 468 |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according toIFRS 17 and 9 |
Future minimum lease payments receivable under non-cancellable leases | 10,708 | 8,205 |
Payments receivable within 1 year | 4,568 | 3,609 |
Payments receivable after 1 year but within 5 years | 6,097 | 4,570 |
Payments receivable beyond 5 years | 43 | 26 |
125
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according toIFRS 17 and 9 |
Carrying amount at start of period | 848 | 767 |
Acquisitions | 22 | 96 |
Divestments | - | (4) |
Impairment recognised during the period | - | - |
Exchange rate adjustments | 2 | (13) |
Other movements | - | 2 |
Carrying amount at end of period | 872 | 848 |
Gross value | 1,004 | 986 |
Accumulated impairment recognised at the end of period | (132) | (138) |
| Impairment recognised | ||||||
| Carrying amount | during the period | Acquisitions of the period | ||||
| 31 December | Year to 31 Dec. | Year to 31 Dec. | ||||
| 2022 restated | 2022 restated | 2022 restated | ||||
| 31 December | according to | Year to 31 | according to | Year to 31 | according to | |
| In millions of euros | 2023 | IFRS 17 and 9 | Dec. 2023 | IFRS 17 and 9 | Dec. 2023 | IFRS 17 and 9 |
Alpha Credit | 22 | 22 | - | - | - | - |
Axepta BNP Paribas Benelux | 28 | 28 | - | - | - | - |
Factoring | 6 | 6 | - | - | - | - |
BNP Paribas Leasing Solutions | 145 | 146 | - | - | - | - |
Wealth Management Luxemburg | 38 | 38 | - | - | - | - |
Arval | 633 | 608 | - | - | 22 | 96 |
Total goodwill | 872 | 848 | - | - | 22 | 96 |
126
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
127
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 | |||||
5.n Provisions for contingencies and charges
| Changes | Effect of | |||||
| 31 December | in value | movements | ||||
| 2022 restated | Net | recognised | in exchange | |||
| according to | additions to | Provisions | directly in | rates and other | 31 December | |
| In millions of euros | IFRS 17 and 9 | provisions | used | equity | movements | 2023 |
Provisions for employee benefits | 3,009 | 151 | (253) | 157 | (27) | 3,037 |
of which post-employment benefits (Note 7.b) | 2,721 | 106 | (189) | 164 | (25) | 2,777 |
| of which post-employment healthcare benefits | 62 | 3 | (2) | (7) | - | 56 |
| (Note 7.b) | ||||||
| of which provision for other long-term benefits | 71 | 18 | (20) | - | (1) | 68 |
| (Note 7.c) | ||||||
| of which provision for voluntary departure, early | ||||||
| retirement plans, and headcount adaptation plan | 139 | 16 | (35) | - | - | 120 |
| (Note 7.d) | ||||||
of which provision for share-based payment | 16 | 8 | (7) | - | (1) | 16 |
Provisions for home savings accounts and plans | - | - | - | - | - | - |
Provisions for credit commitments | 283 | - | - | - | (37) | 246 |
Provisions for litigation | 35 | 29 | (25) | - | (1) | 38 |
Other provisions for contingencies and charges | 455 | 133 | (94) | - | 510 | 1,004 |
Total provisions for contingencies and charges | 3,782 | 313 | (372) | 157 | 445 | 4,325 |
As of 31 December 2023, reserves related to the uncertainty
on the residual value of Arval’s vehicles previously recognised
as a decrease in assets were included in ‘Other provisions for
contingencies and charges’.
128
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
5.o Offsetting of financial assets and liabilities
The following tables present the amounts of financial assets
and liabilities before and after offsetting. This information,
required by IFRS 7 aims to enable the comparability with the
accounting treatment applicable in accordance with generally
accepted accounting principles in the United States (US GAAP),
which are less restrictive than IAS 32 as regards offsetting.
‘Amounts set off on the balance sheet’ have been determined
according to IAS 32. Thus, a financial asset and a financial
liability are offset and the net amount presented on the
balance sheet when and only when, BNP Paribas Fortis has
a legally enforceable right to offset the recognised amounts
and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously. The amounts
offset derive mainly from repurchase agreements traded with
clearing houses.
The ‘Impacts of Master Netting Agreements and similar
agreements’ are relative to outstanding amounts of transac-
tions within an enforceable agreement, which do not meet
the offsetting criteria defined by IAS 32. This is the case of
transactions for which offsetting can only be performed in case
of default, insolvency or bankruptcy of one of the contract-
ing parties.
‘Financial instruments given or received as collateral’ include
guarantee deposits and securities collateral recognised at
fair value. These guarantees can only be exercised in case
of default, insolvency or bankruptcy of one of the contract-
ing parties.
Regarding Master Netting Agreements, the guarantee deposits
received or given in compensation for the positive or nega-
tive fair values of financial instruments are recognised in the
balance sheet in ‘Accrued income or expenses’ and ‘Other
assets or liabilities’.
| Net | Impact of | |||||
| Gross | amounts | Master Netting | ||||
| Gross | amounts | presented | Agreements | Financial | ||
| amounts | set off on | on the | (MNA) and | instruments | ||
| 31 December 2023 | of financial | the balance | balance | similar | received as | Net |
| In millions of euros | assets | sheet | sheet | agreements | collateral | amounts |
| Assets | ||||||
Financial instruments at fair value through profit or loss | 15,959 | (1,122) | 14,837 | (10,870) | (346) | 3,621 |
Securities | 1,604 | - | 1,604 | - | - | 1,604 |
Loans and repurchase agreements | 2,796 | (1,122) | 1,674 | (1,591) | (74) | 9 |
| Derivative financial instruments (including | 11,559 | - | 11,559 | (9,279) | (272) | 2,008 |
| derivatives used for hedging purposes) | ||||||
Financial assets at amortised cost | 251,327 | (401) | 250,926 | (12,305) | (570) | 238,051 |
of which repurchase agreements | 13,348 | (400) | 12,948 | (12,305) | (570) | 73 |
Accrued income and other assets | 13,668 | - | 13,668 | - | (1,390) | 12,278 |
of which guarantee deposits paid | 4,898 | - | 4,898 | - | (1,390) | 3,508 |
Other assets not subject to offsetting | 94,449 | - | 94,449 | - | - | 94,449 |
Total assets | 375,403 | (1,523) | 373,880 | (23,175) | (2,306) | 348,399 |
129
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Net | Impact of | |||||
| Gross | amounts | Master Netting | ||||
| Gross | amounts | presented | Agreements | Financial | ||
| amounts | set off on | on the | (MNA) and | instruments | ||
| 31 December 2023 | of financial | the balance | balance | similar | received as | Net |
| In millions of euros | liabilities | sheet | sheet | agreements | collateral | amounts |
| Liabilities | ||||||
Financial instruments at fair value through profit or loss | 30,740 | (1,122) | 29,618 | (13,265) | (8,162) | 8,191 |
Securities | 697 | - | 697 | - | - | 697 |
Deposits and repurchase agreements | 12,910 | (1,122) | 11,788 | (3,986) | (7,651) | 151 |
Issued debt securities | 2,721 | - | 2,721 | - | - | 2,721 |
| Derivative financial instruments (including | 14,412 | - | 14,412 | (9,279) | (511) | 4,622 |
| derivatives used for hedging purposes) | ||||||
Financial liabilities at amortised cost | 267,177 | (401) | 266,776 | (9,909) | (19,020) | 237,847 |
of which repurchase agreements | 29,705 | (400) | 29,305 | (9,909) | (19,020) | 376 |
Accrued expense and other liabilities | 12,251 | - | 12,251 | - | (296) | 11,955 |
of which guarantee deposits received | 731 | - | 731 | - | (296) | 435 |
Other liabilities not subject to offsetting | 34,056 | - | 34,056 | - | - | 34,056 |
Total liabilities | 344,224 | (1,523) | 342,701 | (23,175) | (27,478) | 292,049 |
| Net | Impact of | |||||
| Gross | amounts | Master Netting | ||||
| 31 December 2022 | Gross | amounts | presented | Agreements | Financial | |
| restated according to IFRS 17 and 9 | amounts of | set off on | on the | (MNA) and | instruments | |
| financial | the balance | balance | similar | received as | Net | |
| In millions of euros | assets | sheet | sheet | agreements | collateral | amounts |
| 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 | 14,880 | - | 14,880 | (10,472) | (757) | 3,651 |
| derivatives 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 | 11,413 | - | 11,413 | - | (896) | 10,517 |
of which guarantee deposits paid | 4,437 | - | 4,437 | - | (896) | 3,541 |
Other assets not subject to offsetting | 78,882 | - | 78,882 | - | - | 78,882 |
Total assets | 351,413 | (1,148) | 350,265 | (12,305) | (3,794) | 334,166 |
130
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| Net | Impact of | |||||
| Gross | amounts | Master Netting | ||||
| 31 December 2022 | Gross | amounts | presented | Agreements | Financial | |
| restated according to IFRS 17 and 9 | amounts | set off on | on the | (MNA) and | instruments | |
| of financial | the balance | balance | similar | received as | Net | |
| In millions of euros | liabilities | sheet | sheet | agreements | collateral | amounts |
| 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 | 17,659 | - | 17,659 | (10,472) | (611) | 6,576 |
| derivatives used for hedging purposes) | ||||||
Financial liabilities at amortised cost | 258,987 | - | 258,987 | (324) | (1,026) | 257,637 |
of which repurchase agreements | 1,626 | - | 1,626 | (324) | (1,026) | 276 |
Accrued expense and other liabilities | 11,373 | - | 11,373 | - | (793) | 10,580 |
of which guarantee deposits received | 2,262 | - | 2,262 | - | (793) | 1,469 |
Other liabilities not subject to offsetting | 20,725 | - | 20,725 | - | - | 20,725 |
Total liabilities | 320,445 | (1,148) | 319,297 | (12,305) | (7,203) | 299,789 |
131
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||
| Carrying amount of | Carrying amount of | Carrying amount of | Carrying amount of | |
| In millions of euros | transferred assets | associated liabilities | transferred assets | associated liabilities |
| Securities lending operations | ||||
Financial instruments at fair value through profit or loss | - | - | 42 | - |
Financial assets at amortised cost | 2,449 | - | 2,777 | - |
Financial assets at fair value through equity | - | - | - | - |
| Repurchase agreements | ||||
Financial instruments at fair value through profit or loss | 406 | 406 | 176 | 176 |
Financial assets at amortised cost | 6,922 | 6,929 | 4,159 | 4,159 |
Financial assets at fair value through equity | 3,936 | 3,966 | 202 | 202 |
Total | 13,713 | 11,301 | 7,356 | 4,537 |
| 31 December 2023 | |||||
| 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 | 31,865 | 1,487 | 29,197 | 1,464 | 27,733 |
Financial assets at fair value through equity | - | - | - | - | - |
Total | 31,865 | 1,487 | 29,197 | 1,464 | 27,733 |
| 31 December 2022 | ||||||
| restated according to IFRS 17 and 9 | ||||||
| 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 |
132
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 2023
133
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
| Financing commitments given | ||
- to credit institutions | 289 | 231 |
- to customers | 59,240 | 52,726 |
Confirmed financing commitments | 46,948 | 41,107 |
Other commitments given to customers | 12,292 | 11,619 |
Total financing commitments given | 59,529 | 52,957 |
of which Stage 1 | 55,396 | 48,328 |
of which Stage 2 | 3,939 | 4,521 |
of which Stage 3 | 194 | 108 |
| Financing commitments received | ||
- from credit institutions | 11,299 | 6,537 |
- from customers | 231 | 199 |
Total financing commitments received | 11,530 | 6,736 |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
| Guarantee commitments given | ||
- to credit institutions | 2,419 | 2,488 |
- to customers | 15,384 | 15,685 |
Property guarantees | - | - |
Sureties provided to tax and other authorities, other sureties | 11,978 | 12,334 |
Other guarantees | 3,406 | 3,351 |
Total guarantee commitments given | 17,803 | 18,173 |
of which Stage 1 | 15,572 | 15,647 |
of which Stage 2 | 2,093 | 2,327 |
of which Stage 3 | 138 | 199 |
134
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Securities to be delivered | 235 | 409 |
Securities to be received | 284 | 460 |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
| Financial instruments (negotiable securities and private receivables) | ||
lodged with central banks and eligible for use at any time as collateral for refinancing transactions after haircut | 13,628 | 24,301 |
Used as collateral with central banks | 3,191 | 18,303 |
Available for refinancing transactions | 10,437 | 5,998 |
Securities sold under repurchase agreements | 42,294 | 10,212 |
| Other financial assets pledged as collateral for transactions with credit | 21,169 | 20,437 |
| institutions, financial customers |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
| Financial instruments received as collateral (excluding repurchase | 5,929 | 6,364 |
| agreements) | ||
of which instruments that BNP Paribas Fortis is authorised to sell and reuse as collateral | 240 | 1,028 |
Securities received under repurchase agreements | 16,280 | 6,341 |
135
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2022 | ||
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Fixed and variable remuneration, incentive bonuses and profit-sharing | (2,224) | (1,970) |
Employee benefit expense | (655) | (603) |
Payroll taxes | (16) | (15) |
Total salary and employee benefit expenses | (2,895) | (2,588) |
| Contribution amount | Year to 31 Dec. 2022 | |
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Belgium | 3 | 3 |
France | 55 | 40 |
Eurozone (except Belgium and France) | 27 | 24 |
United Kingdom | 7 | 5 |
Turkey | 39 | 26 |
Other | 2 | 1 |
TOTAL | 133 | 99 |
136
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| of which | of which | ||||||||||
| Defined- | asset | obligation | |||||||||
| benefit | Defined- | recognised | recognised | ||||||||
| obligation | benefit | Present | in the | of which | of which | in the | |||||
| In millions | arising from | obligation | value of | Fair | balance | net | fair | balance | |||
| of euros, | wholly or | arising | defined- | Fair value of | sheet for | assets of | value of | sheet for | |||
| at 31 | partially | from | benefit | value | reimburse- | Effect | Net | defined- | defined- | reimbur- | defined- |
| December | funded | unfunded | obliga- | of plan | ment | of asset | obliga- | benefit | benefit | sement | benefit |
| 2023 | plans | plans | tion | assets | rights | ceiling | tion | plans | plans | rights | plans |
Belgium | 2,748 | - | 2,748 | (71) | (2,502) | - | 175 | (2,502) | - | (2,502) | 2,677 |
| United | 144 | - | 144 | (158) | - | - | (14) | (14) | (14) | - | - |
| Kingdom | |||||||||||
Turkey | 235 | 43 | 278 | (258) | - | 22 | 42 | - | - | - | 42 |
Others | 145 | 35 | 180 | (126) | (1) | - | 53 | (5) | (4) | (1) | 58 |
TOTAL | 3,272 | 78 | 3,350 | (613) | (2,503) | 22 | 256 | (2,521) | (18) | (2,503) | 2,777 |
137
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| I | |||||||||||
| Year to 31 Dec. 2022 | ||
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Present value of defined-benefit obligation at start of period | 3,172 | 3,715 |
Current service cost | 109 | 121 |
Interest cost | 111 | 35 |
Past service costs | 6 | - |
Settlements | - | - |
Actuarial (gains)/losses on change in demographic assumptions | (2) | 1 |
Actuarial (gains)/losses on change in financial assumptions | 37 | (719) |
Actuarial (gains)/losses on experience gaps | 310 | 343 |
Actual employee contributions | 11 | 10 |
Benefits paid directly by the employer | (50) | (45) |
Benefits paid from assets/reimbursement rights | (241) | (256) |
Exchange rate (gains)/losses on the obligation | (115) | (60) |
(Gains)/losses on the obligation related to changes in the consolidation scope | 2 | 27 |
Others | - | - |
Present value of defined-benefit obligation at end of period | 3,350 | 3,172 |
138
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Plan assets | Reimbursement rights | |||
| Year to 31 Dec. 2022 | Year to 31 Dec. 2022 | |||
| restated according to | restated according to | |||
In millions of euros | Year to 31 Dec. 2023 | IFRS 17 and 9 | Year to 31 Dec. 2023 | IFRS 17 and 9 |
Fair value of assets at start of period | 655 | 754 | 2,396 | 2,931 |
Expected return on assets | 30 | 34 | 84 | 13 |
Settlements | - | (9) | - | - |
Actuarial (gains)/losses on assets | 45 | (30) | 99 | (548) |
Actual employee contributions | 1 | - | 10 | 10 |
Employer contributions | 21 | 16 | 131 | 198 |
Benefits paid from assets | (22) | (25) | (219) | (231) |
Exchange rate (gains)/losses on assets | (130) | (86) | - | - |
| Gains/(losses) on assets related to changes | 13 | 1 | 2 | 23 |
| in the consolidation scope | ||||
Other | - | - | - | - |
Fair value of assets at end of period | 613 | 655 | 2,503 | 2,396 |
| Year to 31 Dec. 2022 | ||
In millions of euros | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 |
Administration fees | 1 | 1 |
Service costs | 115 | 130 |
Current service cost | 109 | 121 |
Past service cost | 6 | - |
Settlements | - | 9 |
Net financial expense | 9 | 5 |
Interest cost | 111 | 35 |
Interest income on plan assets | (31) | (35) |
Interest income on reimbursement rights | (84) | (13) |
Return on Asset Limitation | 13 | 18 |
Total recognised in ‘Salary and employee benefit expense’ | 125 | 136 |
139
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||
| Compensation | Compensation | |||
| In % | Discount rate | increase rate | Discount rate | increase rate |
Eurozone | 3.00 % - 3.60 % | 2.40 % - 4.07 % | 1.90 % - 3.80 % | 2.30 % - 5.00 % |
United Kingdom | 4.40 % - 4.50 % | 3.40 % | 4.70 % | 3.30 % |
Turkey | 23.13 % | 18.77 % | 11.00 % | 8.50 % |
| 31 December 2022 | |||||
| 31 December 2023 | restated according to IFRS 17 and 9 | ||||
| Change in the present value of obligations | Discount rate | Discount rate | Discount rate | Discount rate | |
| In millions of euros | -100bp | +100bp | -100bp | +100bp | |
Eurozone | 254 | (187) | 228 | (196) | |
United Kingdom | 18 | (15) | 24 | (19) | |
Turkey | 11 | (9) | 13 | (10) | |
| Year to 31 Dec. 2022 | ||||
| Change in the present value of obligations | Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 | ||
| In millions of euro | Inflation rate +100bp | Inflation rate +100bp | ||
Eurozone | 141 | 156 | ||
United Kingdom | 8 | 11 | ||
Turkey | 11 | 12 |
140
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||
| Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 | |
| Range of value | Range of value | |
| In % | (existence of several plans in the same country) | (existence of several plans in the same country) |
| Belgium | (0.18 %) - 13.21 % | (18.80 %) - 6.30 % |
United Kingdom | (10.50 %) - (8.40 %) | (33.90 %) - (31.80 %) |
Turkey | 44.92 % | 40.80 % |
| 31 December 2022 | ||||||||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||||||||
| Non- | Non- | |||||||||||
| Govern- | Govern- | Govern- | Govern- | |||||||||
| mental | mental | Real- | Deposit | mental | mental | Real- | Deposit | |||||
| In % | Shares | bonds | bonds | estate | account | Others | Shares | bonds | bonds | estate | account | Others |
| Belgium | 8 % | 47 % | 19 % | 1 % | 2 % | 23 % | 8 % | 49 % | 20 % | 1 % | 0 % | 22 % |
United Kingdom | 10 % | 76 % | 12 % | 0 % | 1 % | 1 % | 8 % | 77 % | 10 % | 0 % | 3 % | 2 % |
Turkey | 0 % | 68 % | 0 % | 6 % | 21 % | 5 % | 8 % | 56 % | 14 % | 2 % | 2 % | 18 % |
Others | 6 % | 31 % | 20 % | 5 % | 1 % | 37 % | 7 % | 29 % | 19 % | 5 % | 1 % | 39 % |
BNP Paribas Fortis | 7 % | 50 % | 17 % | 2 % | 4 % | 20 % | 7 % | 51 % | 18 % | 2 % | 3 % | 19 % |
141
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Net provisions for other long-term benefits | 68 | 71 |
Asset recognised in the balance sheet under ‘Other long-term benefits’ | - | - |
Obligation recognised in the balance sheet under ‘Other long-term benefits’ | 68 | 71 |
| 31 December 2022 | ||
In millions of euros | 31 December 2023 | restated according to IFRS 17 and 9 |
Provision for voluntary departure and early retirement plans, and headcount adaptation plans | 120 | 139 |
142
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
143
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| Changes in assets and | Changes in assets and | |||
| liabilities recognised | liabilities recognised | |||
| Capital and | directly in equity that | directly in equity that | ||
| retained | will not be reclassified | may be reclassified to | Minority | |
| In millions of euros | earnings | to profit or loss | profit or loss | interests |
Capital and retained earnings at 31 December 2021 | 6,224 | 52 | (971) | 5,305 |
Impact IAS 29 1 st application in Türkiye | (24) | - | 99 | 75 |
Impact of the transition to IFRS 17 (note 2) | (16) | - | 17 | 1 |
Impact of the transition to IFRS 9 (note 2) | 24 | - | (26) | (2) |
Capital and retained earnings at 1 January 2022 | 6,208 | 52 | (881) | 5,379 |
Other movements | (72) | (1) | - | (73) |
Dividends | (225) | - | - | (225) |
Changes in assets and liabilities recognised directly in equity | - | (4) | 133 | 129 |
NET INCOME FOR 2022 | 462 | - | - | 462 |
Capital and retained earnings at 31 December 2022 | 6,373 | 47 | (748) | 5,672 |
Other movements | (111) | - | - | (111) |
Acquisitions | 11 | - | - | 11 |
Dividends | (313) | - | - | (313) |
Changes in assets and liabilities recognised directly in equity | - | 4 | 56 | 60 |
NET INCOME FOR 2023 | 447 | - | - | 447 |
Capital and retained earnings at 31 December 2023 | 6,407 | 51 | (692) | 5,766 |
144
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December | ||||||||
| 2023 | Year to 31 Dec. 2023 | |||||||
| Net income | Net income and | |||||||
| and changes | changes in assets | |||||||
| Total assets | in assets and | Net income | and liabilities | |||||
| before | liabilities | recognised | Dividends | |||||
| elimination of | recognised | attributable | directly in equity | paid to | ||||
| intra-group | Net | directly in | Interest | to minority | - attributable to | minority | ||
| In millions of euros | transactions | Revenues | income | equity | (%) | interests | minority interests | shareholders |
Contribution of the entities belonging to the | 63,241 | 1,839 | 727 | 796 | 50 % | 438 | 487 | 282 |
Other minority interests | 9 | 20 | 31 | |||||
TOTAL | 447 | 507 | 313 |
| 31 December | ||||||||
| 2022 | ||||||||
| restated | ||||||||
| according to | Year to 31 Dec. 2022 | |||||||
| IFRS 17 and 9 | restated according to IFRS 17 and 9 | |||||||
| Net income | Net income and | |||||||
| and changes | changes in assets | |||||||
| Total assets | in assets and | Net income | and liabilities | |||||
| before | liabilities | attributable | recognised | Dividends | ||||
| elimination of | recognised | directly in equity | paid to | |||||
| intra-group | Net | directly in | Interest | to minority | - attributable to | minority | ||
| In millions of euros | transactions | Revenues | income | equity | (%) | interests | minority interests | shareholders |
Contribution of the entities belonging to the BGL BNP Paribas Group | 61,851 | 1,661 | 542 | 368 | 50 % | 353 | 268 | 204 |
Other minority interests | 109 | 322 | 21 | |||||
TOTAL | 462 | 591 | 225 | |||||
145
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
- |
146
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
8.e Significant restrictions in subsidiaries, associates
and joint ventures
Significant restrictions relating to the
ability of entities to transfer cash to
BNP Paribas Fortis
The ability of entities to pay dividends or to repay loans and
advances depends, inter alia, on local regulatory require-
ments for capitalisation and legal reserves, as well as the
entities’ financial and operating performance. During 2023
no BNP Paribas Fortis Group entities were subject to sig-
nificant restrictions other than those related to regulatory
requirements.
Significant restrictions relating to
BNP Paribas Fortis’ ability to use the assets
lodged in consolidated structured entities
Access to the assets of consolidated structured entities in
which third-party investors (other than BNP Paribas Group
entities) have invested is limited in as much as these entities’
assets are reserved for the holders of units or securities. At the
end of 31 December 2023 and 2022 respectively, the involved
assets were immaterial.
Significant restrictions relating to
BNP Paribas Fortis’ ability to use
assets pledged as collateral or under
repurchase agreements
The financial instruments pledged by BNP Paribas Fortis as
collateral or under repurchase agreements are reported in
Note 5.p and 6.d.
Significant restrictions relating to
liquidity reserves
Significant restrictions related to liquidity reserves correspond
to the mandatory deposits placed with central banks pre-
sented in Chapter ‘Risk management and capital adequacy
- Liquidity and refinancing risk’.
147
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| Interests on BNP Paribas Fortis balance sheet | 31 December 2023 | |||
| In millions of euros | Securitisation | Funds | Others | Total |
| ASSETS | ||||
Financial instruments at fair value through profit and loss | - | - | - | - |
Derivatives used for hedging purposes | - | 57 | - | 57 |
Financial assets at fair value through equity | - | - | - | - |
Financial assets at amortised cost | - | - | 7 | 8 |
Other assets | - | - | - | - |
TOTAL ASSETS | - | 57 | 7 | 65 |
| LIABILITIES | ||||
Financial instruments at fair value through profit and loss | - | - | 14 | 14 |
Derivatives used for hedging purposes | - | - | - | - |
Financial liabilities at amortised cost | 89 | - | 243 | 332 |
Other liabilities | 2 | - | - | 2 |
TOTAL LIABILITIES | 91 | - | 257 | 348 |
FUNDED EXPOSURE | - | 57 | 7 | 65 |
UNFUNDED EXPOSURE | - | - | 39 | 39 |
Financing commitments | - | - | 39 | 39 |
Guarantee commitments and derivatives | - | - | - | - |
MAXIMUM EXPOSURE TO LOSS | - | 57 | 46 | 104 |
| SIZE OF STRUCTURED ENTITIES | 88 | 18 | 605 | 711 |
148
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| I | |||||
149
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Annual fixed salary Chairman Board of Directors | EUR | 400,000 | (gross) |
Annual fixed salary Board Members | EUR | 25,000 | (gross) |
Attendance fee Chairman Board of Directors | EUR | 4,400 | (gross) |
Attendance fee Members Board of Directors | EUR | 2,200 | (gross) |
Attendance fee Chairman Board Committees | EUR | 4,800 | (gross) |
Attendance fee Members Board Committees | EUR | 2,400 | (gross) |
150
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| Attendance | ||||
In euros | Fixed fees | fees board* | Total 2023 | |
Maxime JADOT | Chairman | 400,000 | 112,800 | 512,800 |
Michael ANSEEUW | Executive director | 25,000 | 26,400 | 51,400 |
Didier BEAUVOIS | Executive director | 25,000 | 26,400 | 51,400 |
Dirk BOOGMANS | Non-executive director | 25,000 | 60,000 | 85,000 |
Antoinette d'ASPREMONT LYNDEN | Non-executive and independent director | 25,000 | 105,600 | 130,600 |
Daniel de CLERCK | Executive director | 25,000 | 24,200 | 49,200 |
| Sophie DUTORDOIR | Non-executive director | 6,250 | 6,600 | 12,850 |
| (until GSM 20 April 2023) | ||||
Wouter DE PLOEY | Non-executive and independent director | 25,000 | 64,800 | 89,800 |
Anne LECLERCQ | Non-executive and independent director | 25,000 | 76,800 | 101,800 |
Piet VAN AKEN | Executive director | 25,000 | 26,400 | 51,400 |
Titia VAN WAEYENBERGE | Non-executive and independent director | 25,000 | 74,400 | 99,400 |
Stéphane VERMEIRE | Executive director | 25,000 | 26,400 | 51,400 |
Sandra WILIKENS | Executive director | 25,000 | 26,400 | 51,400 |
681,250 | 657,200 | 1,338,450 |
151
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
2023 | 2022 | ||||
| Chief Executive | Other Members of | Chief Executive | Other Members of | ||
| In euros | Officer | the Executive Board | Officer | the Executive Board | |
| Remuneration | |||||
Fixed | 750,000 | 2,094,000 | 998,513 | 2,453,250 | |
Cash part of variable | 168,128 | 499,000 | 261,800 | 674,800 | |
Deferred part of variable | 133,192 | 341,000 | 252,700 | 365,200 | |
| Multi-annual variable compensation | 119,000 | 308,000 | 140,000 | 357,000 | |
| Director's fees | 51,400 | 339,016 | 111,016 | 358,266 | |
| Benefits in Kind | 4,188 | 16,804 | 3,314 | 21,866 | |
| Pension, life insurance and orphan's pension | (4) | 201,097 | 330,313 | 317,857 | 325,516 |
Total | 1,427,005 | 3,928,133 | 2,085,200 | 4,555,898 |
152
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
.
153
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
154
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Outstanding balances of related party transactions
| 31 December 2022 | ||||||
| 31 December 2023 | restated according to IFRS 17 and 9 | |||||
| Entities of the | Entities of the | |||||
| BNP Paribas | BNP Paribas | |||||
| In millions of euros | Group | Joint ventures | Associates | Group | Joint ventures | Associates |
| ASSETS | ||||||
Demand accounts | 2,153 | - | 40 | 4,890 | - | 49 |
Loans | 15,339 | 59 | 221 | 4,517 | 68 | 669 |
Securities | 38 | - | 140 | 51 | - | 140 |
Other assets | 1,269 | - | 113 | 316 | - | 62 |
Total assets | 18,799 | 59 | 514 | 9,774 | 68 | 920 |
| LIABILITIES | ||||||
Demand accounts | 705 | 101 | 545 | 720 | 115 | 229 |
Other borrowings | 44,764 | - | 590 | 25,920 | - | 811 |
Other liabilities | 688 | - | 23 | 736 | - | 26 |
Total liabilities | 46,157 | 101 | 1,158 | 27,376 | 115 | 1,066 |
FINANCING COMMITMENTS AND GUARANTEE COMMITMENTS | ||||||
Financing commitments given | 49 | 19 | 55 | 31 | 24 | 61 |
Guarantee commitments given | 5,857 | 7 | 60 | 5,611 | 64 | 65 |
Total | 5,906 | 26 | 115 | 5,642 | 88 | 126 |
(1)
(1)
(1) Including controlled but non material entities consolidated under the equity method
BNP Paribas Fortis also carries out trading transactions with related parties involving derivatives (swaps, options and forwards,…)
and financial instruments (equities, bonds,….).
Related-party profit and loss items
| Year to 31 Dec. 2022 | ||||||
| Year to 31 Dec. 2023 | restated according to IFRS 17 and 9 | |||||
| Entities of the | Entities of the | |||||
| BNP Paribas | BNP Paribas | |||||
| In millions of euros | Group | Joint ventures | Associates | Group | Joint ventures | Associates |
Interest income | 1,702 | 6 | 19 | 371 | 6 | 7 |
Interest expense | (2,626) | (3) | (30) | (711) | - | (7) |
Commission income | 135 | - | 578 | 163 | - | 599 |
Commission expense | (124) | - | (23) | (135) | - | (17) |
Services provided | 88 | - | 46 | 77 | - | 43 |
Services received | (387) | - | (79) | (290) | - | (80) |
Lease income | 44 | - | 14 | 42 | - | 10 |
Total | (1,168) | 3 | 525 | (483) | 6 | 555 |
(1)
(1)
(1) Including controlled but non material entities consolidated under the equity method
155
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| In millions of euros | Un | Overnight | Up to 1 month | 1 to 3 | 3 months | 1 to 5 | More than | |
| at 31 December 2023 | determined | or demand | (excl. overnight) | months | to 1 year | years | 5 years | TOTAL |
Cash and balances at central banks | - | 38,467 | - | - | - | - | - | 38,467 |
Financial instruments at fair value through profit or loss | 7,752 | - | 1,101 | 126 | 326 | 83 | 31 | 9,419 |
Derivatives used for hedging purposes | 5,418 | - | - | - | - | - | - | 5,418 |
Remeasurement adjustment on interest- rate risk hedged portfolios | (804) | - | - | - | - | - | - | (804) |
Financial assets at fair value through equity | 149 | 35 | 225 | 20 | 146 | 2,486 | 7,741 | 10,802 |
Financial assets at amortised cost | - | 7,791 | 11,402 | 14,733 | 30,281 | 96,317 | 85,790 | 246,314 |
Financial assets by maturity | 12,515 | 46,293 | 12,728 | 14,879 | 30,753 | 98,886 | 93,562 | 309,616 |
Deposits from central banks | - | 1,971 | - | - | - | - | - | 1,971 |
Financial instruments at fair value through profit or loss | 6,835 | - | 10,630 | 527 | 767 | 2,491 | 97 | 21,347 |
Derivatives used for hedging purposes | 8,271 | - | - | - | - | - | - | 8,271 |
Remeasurement adjustment on interest- rate risk hedged portfolios | (3,895) | - | - | - | - | - | - | (3,895) |
| Financial liabilities at amortised cost | 160,733 | 26,046 | 32,555 | 34,918 | 15,185 | 960 | 270,397 | |
| Financial liabilities by maturity* | 11,211 | 162,704 | 36,676 | 33,082 | 35,685 | 17,676 | 1,057 | 298,091 |
-
156
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| In millions of euros | Up to 1 | |||||||
| at 31 December 2022 | Un | Overnight | month (excl. | 1 to 3 | 3 months | 1 to 5 | More than | |
| restated according to IFRS 17 and 9 | determined | or demand | overnight) | months | to 1 year | years | 5 years | TOTAL |
Cash and balances at central banks | - | 39,009 | - | - | - | - | - | 39,009 |
Financial instruments at fair value through profit or loss | 8,358 | - | 1,899 | 464 | 1,231 | 352 | 11 | 12,315 |
| 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 |
-
157
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2023 | 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 | - | 21,712 | 189,027 | 210,739 | 215,958 |
Debt securities at amortised cost (note 5.e) | 10,940 | 694 | 86 | 11,720 | 12,507 |
| FINANCIAL LIABILITIES | |||||
Deposits from credit institutions and customers | - | 266,966 | - | 266,966 | 266,776 |
Debt securities (note 5.h) | - | 23,889 | - | 23,889 | 23,801 |
Subordinated debt (note 5.h) | - | 2,235 | - | 2,235 | 2,235 |
| 31 December 2022 | Estimated fair value | ||||
| restated according to IFRS 17 and 9 | |||||
| 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 5.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 5.h) | - | 16,170 | - | 16,170 | 16,252 |
Subordinated debt (note 5.h) | - | 2,284 | - | 2,284 | 2,283 |
158
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||||||||||||
| 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 Credit 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 | ||||||||||||
Batopin | Belgium | Equity | 25.0 % | 25.0 % | Equity | 25.0 % | 25.0 % | |||||||
Belgian Mobile ID | Belgium | Equity | 12.2 % | 12.2 % | Equity | 12.2 % | 12.2 % | |||||||
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 % | |||||||
bpost bank | Belgium | Full | 100.0 % | 100.0 % | Full | 100.0 % | 100.0 % | V1 | 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 % | |||||||
Demetris NV | Belgium | Full | 99.9 % | 99.9 % | Full | 99.9 % | 99.9 % | E1 | ||||||
Eos Aremas Belgium S.A./N.V. | Belgium | Equity | 49.9 % | 49.9 % | Equity | 49.9 % | 49.9 % | |||||||
159
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | ||||||||||||
| Voting | Interest | Voting | Interest | ||||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | ||||
Es-Finance | Belgium | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | ||||||
Fortis Lease Belgium | Belgium | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | ||||||
FScholen | Belgium | Equity | 1 | 50.0 % | 50.0 % | Equity | 1 | 50.0 % | 50.0 % | ||||
Immobilière Sauvenière S.A. | Belgium | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | ||||||
Private Equity Investments (a) | BE/FR/LU | FV | FV | ||||||||||
Isabel SA NV | Belgium | Equity | 25.3 % | 25.3 % | Equity | 25.3 % | 25.3 % | ||||||
Locadif | Belgium | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Microstart | Belgium | Full | 42.3 % | 76.8 % | Full | 42.3 % | 76.8 % | ||||||
Sowo Invest SA NV | Belgium | Full | 87.5 % | 87.5 % | Full | 87.5 % | 87.5 % | ||||||
Terberg Leasing Justlease Belgium BV | Belgium | Full | 2 | 99.9 % | 100.0 % | Full | 2 | 99.9 % | 100.0 % | E3 | |||
| Belgium - Special Purpose Entities | |||||||||||||
Bass Master Issuer NV | Belgium | Full | Full | ||||||||||
Esmée Master Issuer | Belgium | Full | Full | ||||||||||
FL Zeebrugge | Belgium | Full | Full | ||||||||||
| Belgium - Structured Entities | |||||||||||||
Epimede | Belgium | Equity | Equity | ||||||||||
| Luxembourg | |||||||||||||
Arval Luxembourg SA | Luxembourg | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
BGL BNP Paribas | Luxembourg | Full | 50.0 % | 50.0 % | Full | 50.0 % | 50.0 % | ||||||
BNP Paribas Fortis Funding S.A. | Luxembourg | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | ||||||
BNP Paribas Lease Group Luxembourg S.A. | Luxembourg | Full | 100.0 % | 50.0 % | Full | 100.0 % | 50.0 % | ||||||
BNP Paribas Leasing Solutions | Luxembourg | Full | 50.0 % | 25.0 % | Full | 50.0 % | 25.0 % | ||||||
Cardif Lux Vie | Luxembourg | Equity | 33.3 % | 16.7 % | Equity | 33.3 % | 16.7 % | ||||||
Cofhylux S.A. | Luxembourg | S4 | Full | 100.0 % | 50.0 % | ||||||||
Luxhub SA | Luxembourg | Equity | 28.0 % | 14.0 % | Equity | 28.0 % | 14.0 % | ||||||
Visalux | Luxembourg | Equity | 25.3 % | 12.6 % | Equity | 25.3 % | 12.6 % | ||||||
160
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | ||||||||||||
| Voting | Interest | Voting | Interest | ||||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | ||||
| Rest of the world | |||||||||||||
Aprolis Finance | France | Full | 51.0 % | 12.8 % | Full | 51.0 % | 12.8 % | ||||||
Artegy | France | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | ||||||
Artel | France | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval AB | Sweden | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval AS | Denmark | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval AS Norway | Norway | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Austria GmbH | Austria | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Brasil LTDA | Brazil | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Arval BV | The | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Netherlands | |||||||||||||
| Arval CZ SRO | Czech | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Republic | |||||||||||||
Arval Deutschland GmbH | Germany | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Fleet Services | France | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Hellas Car Rental SA | Greece | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval LLC | Russia | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Magyarorszag KFT | Hungary | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Maroc SA | Morocco | Full | 2 | 66.7 % | 66.7 % | Full | 2 | 66.7 % | 66.7 % | ||||
Arval Oy | Finland | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Relsa SPA | Chile | Full | 2 | 100.0 % | 99.9 % | V1 | Equity | 50.0 % | 49.9 % | ||||
Arval Relsa Colombia SAS | Colombia | Full | 2 | 100.0 % | 99.9 % | V1 | Equity | 50.0 % | 49.9 % | ||||
Arval Schweiz AG | Switzerland | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Service Lease | France | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Arval Service Lease Aluger Operational | Portugal | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Automoveis SA | |||||||||||||
Arval Service Lease Italia SPA | Italy | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Service Lease Polska SP ZOO | Poland | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Service Lease Romania SRL | Romania | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Service Lease SA | Spain | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Slovakia SRO | Slovakia | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
Arval Trading | France | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Arval UK Group Ltd | United | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | ||||
| Kingdom | |||||||||||||
161
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||||||||||||
| Voting | Interest | Voting | Interest | |||||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | |||||
| Arval UK Leasing Services Ltd | United | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | |||||
| Kingdom | ||||||||||||||
| Arval UK Ltd | United | Full | 2 | 100.0 % | 99.9 % | 2 | Full | 100.0 % | 99.9 % | |||||
| Kingdom | ||||||||||||||
Bantas Nakit AS | Turkey | Equity | 1 | 33.3 % | 16.7 % | 1 | Equity | 33.3 % | 16.7 % | |||||
BGL BNP Paribas S.A. (Germany Branch) | Germany | Full | 100.0 % | 50.0 % | Full | 100.0 % | 50.0 % | |||||||
BNL Leasing SPA | Italy | Equity | 26.2 % | 6.5 % | Equity | 26.2 % | 6.5 % | |||||||
BNP Paribas 3 STEP IT | France | Full | 51.0 % | 12.8 % | Full | 51.0 % | 12.8 % | |||||||
BNP Paribas 3 Step IT (Germany Branch) | Germany | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
BNP Paribas 3 Step IT (Italy Branch) | Italy | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
| BNP Paribas 3 Step IT (Netherlands | The | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
| Branch) | Netherlands | |||||||||||||
BNP Paribas 3 Step IT (Spain Branch) | Spain | Full | 100.0 % | 12.8 % | E2 | |||||||||
| BNP Paribas3 Step IT (United Kingdom | United | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
| Branch) | Kingdom | |||||||||||||
| BNP Paribas Commercial Finance Limited | United | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | |||||||
| Kingdom | ||||||||||||||
BNP Paribas Factor AS | Denmark | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | |||||||
BNP Paribas Factor Gmbh | Germany | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | |||||||
BNP Paribas Finansal Kiralama A.S. | Turkey | Full | 100.0 % | 26.1 % | Full | 100.0 % | 26.1 % | |||||||
BNP Paribas Fortis (Spain branch) | Spain | Full | 100.0 % | 100.0 % | Full | 100.0 % | 100.0 % | |||||||
| BNP Paribas Fortis (U.S.A branch) | United | Full | 100.0 % | 100.0 % | Full | 100.0 % | 100.0 % | |||||||
| States | ||||||||||||||
BNP Paribas Fortis Yatirimlar Holding AS | Turkey | Full | 100.0 % | 100.0 % | Full | 100.0 % | 100.0 % | |||||||
BNP Paribas Lease Group | France | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
BNP Paribas Leasing Solutions IFN S.A. | Romania | Full | 99.9 % | 24.9 % | Full | 99.9 % | 24.9 % | |||||||
| BNP Paribas Lease Group Leasing Solutions | Italy | Equity | 26.2 % | 6.5 % | Equity | 26.2 % | 6.5 % | |||||||
| S.P.A. | ||||||||||||||
BNP Paribas Lease Group Milan Branch | Italy | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| BNP Paribas Lease Group PLC | United | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| BNP Paribas Lease Group (Germany | Kingdom | |||||||||||||
| Branch) | Germany | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| BNP Paribas Lease Group Sa (Portugal | Portugal | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| Branch) | ||||||||||||||
| BNP Paribas Lease Group Sa ( Spain | Spain | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| Branch) | ||||||||||||||
BNP Paribas Lease Group Sp. Z.O.O | Poland | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| BNP Paribas Leasing Solutions Ltd. | United | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| Kingdom | ||||||||||||||
162
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||||||||||||
| Voting | Interest | Voting | Interest | |||||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | |||||
BNP Paribas Leasing Solutions A.S | Denmark | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| BNP Paribas Leasing Solutions N.V. | The | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| Netherlands | ||||||||||||||
BNP Paribas Leasing Solutions Suisse SA | Switzerland | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
BNPP Asset Management Holding | France | Equity | 33.3 % | 30.9 % | Equity | 33.3 % | 30.9 % | |||||||
BNPP Bank Polska SA | Poland | Equity | 24.0 % | 24.0 % | V3 | Equity | 24.1 % | 24.1 % | ||||||
| BNPP Factoring Support | The | Full | 100.0 % | 99.9 % | Full | 100.0 % | 99.9 % | |||||||
| Netherlands | ||||||||||||||
| BNPP Fleet Holdings Ltd | United | Full | 2 | 100.0 % | 99.9 % | Full | 2 | 100.0 % | 99.9 % | |||||
| Kingdom | ||||||||||||||
BNPP Leasing Solution AS | Norway | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
BNPP Leasing Solutions AB | Sweden | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| BNPP Leasing Solutions GmbH | Austria | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
| (Ex - All In One Vermietung GmbH) | United | |||||||||||||
| BNPP Rental Solutions Ltd | Kingdom | S3 | Full | 100.0 % | 25.0 % | |||||||||
BNPP Rental Solutions SPA | Italy | Full | 100.0 % | 25.0 % | Full | 100.0 % | 25.0 % | |||||||
Claas Financial Services | France | Full | 51.0 % | 12.8 % | Full | 51.0 % | 12.8 % | |||||||
Claas Financial Services (Germany Branch) | Germany | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
Claas Financial Services (Italy Branch) | Italy | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
| Claas Financial Services Ltd | United | Full | 51.0 % | 12.8 % | Full | 51.0 % | 12.8 % | |||||||
| Kingdom | ||||||||||||||
Claas Financial Services (Poland Branch). | Poland | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
Claas Financial Services (Spain Branch) | Spain | Full | 100.0 % | 12.8 % | Full | 100.0 % | 12.8 % | |||||||
Cent ASL | France | Full | 2 | 100.0 % | 99.9 % | 2 | Full | 100.0 % | 99.9 % | |||||
CNH Industrial Capital Europe Gmbh | Austria | Full | 100.0 % | 12.5 % | Full | 100.0 % | 12.5 % | |||||||
CNH Industrial Capital Europe | France | Full | 50.1 % | 12.5 % | Full | 50.1 % | 12.5 % | |||||||
| CNH Industrial Capital Europe BV | The | Full | 100.0 % | 12.5 % | Full | 100.0 % | 12.5 % | |||||||
| CNH Industrial Capital Europe (Italy | Netherlands | |||||||||||||
| Branch) | Italy | Full | 100.0 % | 12.5 % | Full | 100.0 % | 12.5 % | |||||||
| CNH Industrial Capital Europe Ltd | United | Full | 100.0 % | 12.5 % | Full | 100.0 % | 12.5 % | |||||||
| CNH Industrial Capital Europe (Poland | Kingdom | |||||||||||||
| Branch) | Poland | Full | 100.0 % | 12.5 % | Full | 100.0 % | 12.5 % | |||||||
| 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 % | 2 | Full | 100.0 % | 99.9 % | |||||
Comercializadora de Vehiculos SA | Chile | Full | 2 | 100.0 % | 99.9 % | V1 | Equity | 50.0 % | 49.9 % | |||||
163
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||||||||||||
| Voting | Interest | Voting | Interest | |||||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | |||||
| Creation Consumer Finance Ltd | United | Full | 100.0 % | 99.9 % | E3 | |||||||||
| Kingdom | ||||||||||||||
| Creation Financial Services Ltd | United | Full | 100.0 % | 99.9 % | E3 | |||||||||
| Kingdom | ||||||||||||||
FCT Pulse France 2022 | France | Full | 2 | 100.0 % | 99.9 % | 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 | S3 | Full | 100.0 % | 25.0 % | |||||||||
Fortis Lease Iberia SA | Spain | S1 | Full | 100.0 % | 41.0 % | |||||||||
Fortis Lease Portugal | Portugal | S1 | 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 % | 2 | Full | 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 % | 2 | Full | 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 | S4 | 2 | Full | 100.0 % | 99.9 % | E3 | |||||||
| Netherlands | ||||||||||||||
Public Location Longue Durée | France | Full | 2 | 100.0 % | 99.9 % | 2 | Full | 100.0 % | 99.9 % | |||||
Rentaequipos Leasing SA | Chile | Full | 2 | 100.0 % | 99.9 % | V1 | Equity | 50.0 % | 49.9 % | |||||
Rentaequipos Leasing Peru SA | Peru | Full | 2 | 100.0 % | 99.9 % | V1 | Equity | 50.0 % | 49.9 % | |||||
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 % | 2 | Full | 100.0 % | 74.9 % | |||||
TEB ARF Teknoloji Anonim Sirketi | Turkey | Full | 100.0 % | 48.7 % | Full | 100.0 % | 48.7 % | |||||||
TEB Faktoring A.S. | Turkey | Full | 100.0 % | 48.7 % | Full | 100.0 % | 48.7 % | |||||||
TEB Finansman AS | Turkey | Full | 100.0 % | 48.7 % | E3 | |||||||||
TEB Holding A.S. | Turkey | Full | 50.0 % | 49.9 % | Full | 50.0 % | 49.9 % | |||||||
TEB Sh A | Serbia | Full | 100.0 % | 49.9 % | Full | 100.0 % | 49.9 % | |||||||
164
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||||||||||
| Voting | Interest | Voting | Interest | |||||||||
Name | Country | Method | (%) | (%) | Ref. | Method | (%) | (%) | Ref. | |||
TEB Yatirim Menkul Degerler A.S. | Turkey | Full | 100.0 % | 48.7 % | Full | 100.0 % | 48.7 % | |||||
| Terberg Business Lease Group BV | The | Full | S4 | Full | 2 | 100.0 % | 99.9 % | E3 | ||||
| Netherlands | ||||||||||||
Turk Ekonomi Bankasi A.S. | Turkey | Full | 76.2 % | 48.7 % | Full | 76.2 % | 48.7 % | |||||
| Rest of the world - Special Purpose Entities | ||||||||||||
| Folea Grundstucksverwaltungs und | Germany | S1 | ||||||||||
| Vermietungs Gmbh & Co | ||||||||||||
Pixel 2021 | France | Full | Full | |||||||||
165
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| Year to 31 Dec. 2023 | ||||||||
| Excluding tax, | Deloitte | PwC | Others | Total | ||||
| in thousands of euros | Amount | % | Amount | % | Amount | % | Amount | % |
| Audit | ||||||||
| Statutory audit | 4,959 | 84 % | 876 | 80 % | 3,024 | 94 % | 8,859 | 87 % |
| engagement | ||||||||
- BNP Paribas Fortis | 1,276 | 22 % | 161 | 15 % | 12 | 0 % | 1,449 | 14 % |
| - Consolidated | 3,683 | 62 % | 715 | 65 % | 3,012 | 94 % | 7,410 | 73 % |
| subsidiaries | ||||||||
Services other than those required for the statutory | 959 | 16 % | 216 | 20 % | 199 | 6 % | 1,374 | 13 % |
| audit engagement | ||||||||
- BNP Paribas Fortis | 160 | 3 % | 53 | 5 % | 65 | 2 % | 278 | 2 % |
| - Consolidated | 799 | 13 % | 163 | 15 % | 134 | 4 % | 1,096 | 11 % |
| subsidiaries | ||||||||
TOTAL | 5,918 | 100 % | 1,092 | 100 % | 3,223 | 100 % | 10,233 | 100 % |
| Year to 31 Dec. 2022 | ||||||||
| Excluding tax, | Deloitte | PwC | Others | Total | ||||
| in thousands of euros | Amount | % | Amount | % | Amount | % | Amount | % |
| Audit | ||||||||
| Statutory audit | 2,504 | 83 % | 1,921 | 73 % | 2,695 | 95 % | 7,120 | 84 % |
| engagement | ||||||||
- BNP Paribas Fortis | - | 0 % | 1,344 | 51 % | 12 | 0 % | 1,356 | 16 % |
| - Consolidated | 2,504 | 83 % | 577 | 22 % | 2,683 | 95 % | 5,764 | 68 % |
| subsidiaries | ||||||||
Services other than those required for the statutory | 514 | 17 % | 723 | 27 % | 152 | 5 % | 1,389 | 16 % |
| audit engagement | ||||||||
- BNP Paribas Fortis | 14 | 0 % | 396 | 15 % | - | 0 % | 410 | 5 % |
| - Consolidated | 500 | 17 % | 327 | 12 % | 152 | 5 % | 979 | 11 % |
| subsidiaries | ||||||||
TOTAL | 3,018 | 100 % | 2,644 | 100 % | 2,847 | 100 % | 8,509 | 100 % |
166
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
8.m Events after the reporting period
In January 2024, bpost bank was integrated within BNP Paribas Fortis following a legal merger between both entities.
RISK MANAGEMENT AND
CAPITAL ADEQUACY
168
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
169
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
170
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Transaction Approval Committees (“TAC”): the role and
process requirements of the TAC are set out in the TAC/
NAC Policy, Exceptional transactions are non-recurring,
outstanding, often composite or structured transactions,
which are not covered by the bank’s risk policies or cannot
fit in a longstanding and accepted practice, because of
significantly unusual or complex features and, hence,
cannot be handled through the approval framework. Such
transactions must be reviewed and approved through a
validation process before they are concluded. The TAC
is the decision-making forum in which the business or
function approves execution of the transaction or activity
considering the opinion of Compliance, RISK, Legal and the
relevant functions.
New Activity Committee (“NAC”): The role and process
requirements of the NAC are likewise set out in the TAC/
NAC Policy. A new activity is one that cannot be instigated,
monitored or administered within the bank’s exist-
ing written guidelines, policies, procedures or systems
and hence, does not fit in the approval framework.
A new activity, a generic term standing also for new
products or services, must be validated through a formal
validation process before being launched. The NAC is the
decision-making forum in which the business or function
approves execution of the transaction or activity consider-
ing the opinion of Compliance, RISK, Legal, Finance and the
relevant functions.
Committee retains an overview of all preventive and
remedial measures regarding fraud, monitors the evolu-
tion of the fraud incidents (numbers and losses) and the
underlying causes, and where necessary ensures remedia-
tion actions are taken and arbitrates on priority setting.
Organisation:
Supervisory Level
In accordance with article 27 of the Banking Law, BNP Paribas
Fortis is required to set up a separate Risk Committee to assist
the Board of Directors with risk related matters:
the Risk Committee shall, upon request of the Board of
Directors, assist (and make recommendations to) the
Board of Directors in all risk related matters. In addi-
tion, several special competences of the Risk Committee
are set forth in article 29 of the Banking Law and are
listed herewith: (i) risk tolerance, (ii) price setting and (iii)
remuneration policy.
Executive Level
Specific delegations of authority have been given by the
Executive Board to a number of management committees
specifically composed for the handling of risk management.
The main risk committees at the executive management level
are as follows:
Central Credit Committee: (“CCC”): The CCC is the highest
Credit Committee and is the representative entity of the
bank’s ExBo on credit and counterparty matters, and
more specifically: on credit and counterparty risk expo-
sures originated by all Businesses within the bounds of
granted delegations, approved Credit Policies and within
the lending limit of the bank: ensuring that the quality of
the commitments made correspond to an “acceptable”
risk level for the bank, coherent between Businesses and
ultimately within its rating, stated risk appetite and risk-
reward objectives;
Financial Markets Risk Committee: (“FMRC”): defines and
enforces the market and counterparty credit risk strategy,
policies, methods and limits of, but not restricted to, Global
Markets but excluding ALM/Treasury;
Bank Asset and Liability Committee (“ALCo”): manages the
liquidity position of the bank and the interest rate risk and
foreign exchange risk in the banking Book;
Risk Policy Committee: (“RPC”): provides for the details
of the risk strategy and the bank’s risk policy and defines
and enforces investment and credit policies, methods and
thresholds at business/ portfolio/ steering center level; and
Committee on Impairments and Provisions (“CIP”)
(together with the Finance department): consolidates
provisions and impairments.
ISSC: Information Security Steering Committee steers
the implementation of a proper Information Security
Management System and enables sound risk decision
making to ensure that the organization’s Information
Assets are adequately protected against information
security threats.
171
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
Chief Risk Officer (“CRO”). The RISK function is headed by
the Chief Risk Officer. The CRO is appointed by the Board
of Directors upon recommendation by the Governance and
Nomination Committee and subject to prior approval by the
relevant supervisor. S/he is in principle appointed for the
duration of his/her term as member of the Executive Board
and Board of Directors.
Being responsible for an independent control function, the
CRO can abide from his/her function only upon prior approval
by the Board of Directors and upon prior notification to the
relevant supervisor
1
. The CRO functionally reports to the CEO.
The CRO heads the various RISK functions:
BNP Paribas Fortis RISK BRB: RISK Belgian Retail Banking,
part of RISK Commercial Public Banking & Services, is
responsible for the management of credit risks arising
from all Business Lines within the perimeter of BNP Paribas
Fortis (Retail, Affluent and Private Banking Belgium,
Corporate Banking excl. CIB).
BNP Paribas Fortis RISK CIB: RISK Corporate & Institutional
Banking, part of RISK CIB, is tasked to provide full transpar-
ency and a dynamic analysis of market & counterparty
risks to all BNP Paribas Fortis businesses excluding ALM/
Treasury and is responsible for the management of credit
risks on Financial Institutions, on Sovereigns and on
Corporates belonging to BNP Paribas Fortis CIB.
BNP Paribas Fortis RISK ORM: RISK Operational Risk
Management defines in consultation with the other
Functions exercising second level controls the framework
of operational risk and permanent control to be applied by
1
Article 61 of the Banking Law.
the first and second lines of defence. Furthermore, RISK
ORM acts as second line of defence on the operational risks
domains defined in the Organisational Framework and
Governance Framework for Operational Risk Management
and Permanent Control.
BNP Paribas Fortis RISK ERA: RISK Enterprise Risk
Architecture is responsible for the Regulatory Affairs, RISK
analytics and modelling, RISK strategic analysis, reporting
and provisioning, RISK ALM–treasury and liquidity.
Chief Operating Office is responsible for Operational
Permanent Control (ensuring first-line control of the
RISK function), the management of IT-accesses and of the
continuity of the RISK activities (managed by the Business
Security and Continuity Office), the RISK Operating Office
(coordinating the non-core support functions), projects
related to change management and communication.
BNP Paribas Fortis DPO: the Data Protection Office is
responsible for monitoring compliance with personal data
privacy and protection regulatory requirements.
Control is responsible for model risk management and the
independent review of models in the area of (1) credit risk,
(2) market- and counterparty risk and (3) operational risk.
Tribe Risk & Credits: is responsible for products, processes,
IT assets and Data related to credit and risk manage-
ment. The Tribe Risk & Credits is not part of the integrated
RISK function.
Oversight responsibilities:
Outside Belgium, alongside the existing local and global
reporting lines, the CROs of companies that remain within the
BNP Paribas Fortis Governance Perimeter inform the CRO of
BNP Paribas Fortis in order to ensure compliance with internal
and external rules.
172
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
173
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
174
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
175
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| 31 December 2023 | ||
| 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 | 12,473 | |
Accumulated other comprehensive income (and other reserves) | (2,692) | |
Minority interests (amount allowed in consolidated CET 1) | 1,760 | |
Independently reviewed interim profits net of any foreseeable charge or dividend | - | |
COMMON EQUITY TIER 1 (CET1) CAPITAL BEFORE REGULATORY ADJUSTMENTS | 23,445 | |
Common Equity Tier 1 (CET1): regulatory adjustments | (2,498) | |
COMMON EQUITY TIER 1 (CET1) CAPITAL | 20,947 | |
Additional Tier 1 (AT1) capital: instruments | 768 | |
Additional Tier 1 (AT1) capital: regulatory adjustments | - | |
ADDITIONAL TIER 1 (AT1) CAPITAL | 768 | |
TIER 1 CAPITAL (T1 = CET1 + AT1) | 21,715 | |
Tier 2 (T2) capital: instruments and provisions | 1,269 | |
Tier 2 (T2) capital: regulatory adjustments | (283) | |
TIER 2 (T2) CAPITAL | 986 | |
TOTAL CAPITAL (TC = T1 + T2) | 22,701 |
In millions of euros | 31 December 2023 | 31 December 2022 |
Common equity Tier 1 Capital (CET1) | 20,947 | 21,084 |
Tier 1 Capital | 21,715 | 21,820 |
Total Capital | 22,701 | 22,816 |
| Risk weighted commitments | ||
Credit risk | 103,065 | 100,365 |
Securitisation | 969 | 671 |
Counterparty Risk | 1,372 | 1,059 |
Equity Risk | 13,203 | 11,149 |
Market risk | 1,579 | 1,396 |
Operational risk | 8,785 | 7,880 |
TOTAL RISK WEIGHTED COMMITMENTS | 128,972 | 122,520 |
CET 1 ratio | 16.24 | 17.21 % |
Tier 1 ratio | 16.84 % | 17.81 % |
Total capital ratio | 17.60 % | 18.62 % |
176
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
The table below shows the leverage ratio :
In millions of euros | 31 December 2023 | 31 December 2022 |
ON-BALANCE EXPOSURE (EXCL. REPO & DERIVATIVES) | 320,310 | 311,453 |
REPO'S AND DERIVATIVES | 19,884 | 10,616 |
Repurchase agreements and securities lending/borrowing | 15,494 | 5,684 |
Replacement cost of derivatives transactions | 2,785 | 3,471 |
Add-on for potential future risk derivatives | 1,933 | 2,463 |
Cash variation margins | (327) | (1,002) |
| OFF-BALANCE EXPOSURE | 24,474 | 26,369 |
| (ADJUSTED FOR CONVERSION TO CREDIT EQUIVALENT. ART.429 CRR) | ||
TOTAL EXPOSURE | 364,668 | 348,438 |
REGULATORY ADJUSTMENTS | (2,498) | (2,309) |
TIER 1 CAPITAL | 21,715 | 21,820 |
LEVERAGE RATIO | 6.00 % | 6.30 % |
177
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||||
| Standardised | Standardised | |||||
| In millions of euros | IRBA | Approach | Total | IRBA | Approach | Total |
Central governments and central banks | 51,291 | 8,021 | 59,312 | 47,386 | 7,528 | 54,914 |
Corporates | 131,333 | 22,147 | 153,480 | 131,313 | 22,275 | 153,588 |
Institutions ** | 12,913 | 5,888 | 18,801 | 12,903 | 5,141 | 18,044 |
Retail | 93,971 | 46,742 | 140,713 | 95,696 | 36,331 | 132,027 |
Securitisation positions | 4,022 | 491 | 4,513 | 1,940 | 650 | 2,590 |
Other non-credit-obligation assets *** | - | 4,975 | 4,975 | - | 4,808 | 4,808 |
TOTAL EXPOSURE | 293,530 | 88,264 | 381,794 | 289,238 | 76,733 | 365,971 |
178
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
31 December 2023 | 31 December 2022 | |||
| In millions of euros | Exposure | % | Exposure | % |
Agriculture, Food, Tobacco | 13,693 | 4 % | 13,626 | 4 % |
Financial services | 54,752 | 14 % | 53,677 | 15 % |
Chemicals excluding Pharmaceuticals | 4,111 | 1 % | 4,114 | 1 % |
Construction | 11,513 | 3 % | 12,265 | 3 % |
Retailers | 6,605 | 2 % | 6,447 | 2 % |
Equipment excluding IT | 6,705 | 2 % | 6,404 | 2 % |
Real estate | 31,994 | 8 % | 30,037 | 8 % |
Metals & Mining | 5,687 | 1 % | 6,699 | 2 % |
Wholesale & Trading | 11,967 | 3 % | 14,197 | 4 % |
Business services | 40,346 | 11 % | 40,461 | 11 % |
Transportation & Logistics | 10,155 | 3 % | 9,976 | 3 % |
Utilities (electricity, gas, water, etc.) | 11,122 | 3 % | 11,965 | 3 % |
Retail | 103,872 | 28 % | 93,134 | 25 % |
Sovereign & public sector | 22,837 | 6 % | 21,020 | 6 % |
Other | 41,924 | 11 % | 39,359 | 11 % |
TOTAL | 377,283 | 100 % | 363,381 | 100 % |
179
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| I | ||||||
| 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 % |
180
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
in mln
0
20 000
40 000
60 000
80 000
100 000
120 000
0,00 < 0,15
1 - 3
0,15 < 0,25
3 - 4
0,25 < 0,50
4 - 6
0,50 < 0,75
6 - 7
0,75 < 2,50
7 - 11
2,50 < 10
11 - 15
10 < 100
15 - 17
100,00
18 - 20
Average PD at
one year horizon
Internal rating
181
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
182
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
RWAs | Capital requirements | |||
| 31 December | 31 December | 31 December | 31 December | |
| In millions of euros | 2023 | 2022 | 2023 | 2022 |
INTERNAL MODEL | 752 | 756 | 60 | 60 |
VAR | 154 | 329 | 12 | 26 |
Stressed VAR | 518 | 360 | 41 | 29 |
Incremental Risk Charge (IRC) | 81 | 67 | 6 | 5 |
Comprehensive Risk Measure (CRM) | - | - | - | - |
STANDARDISED APPROACH | 827 | 640 | 66 | 51 |
TRADING BOOK SECURITISATION POSITIONS | - | - | - | - |
MARKET RISK | 1,579 | 1,396 | 126 | 111 |
183
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
184
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
185
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
| Banking Book | ||
In millions of euros | 31 December 2023 | 31 December 2022 |
| Eurozone | ||
Belgium | 8,188 | 6,119 |
Italy | 624 | 599 |
Spain | 542 | 522 |
Luxembourg | 380 | 335 |
Austria | 265 | - |
France | 75 | 147 |
Finland | 25 | 64 |
Cyprus | 2 | - |
Germany | 1 | - |
The Netherlands | - | 10 |
Total eurozone | 10,102 | 7,796 |
Other countries in European Economic Area (EEA) | - | |
Czech Republic | 38 | 37 |
Others | 1 | 1 |
Total other EEA | 39 | 38 |
Other countries | - | - |
Turkey | 1,750 | 2,438 |
Others | 36 | 31 |
Total other countries | 1,786 | 2,469 |
TOTAL | 11,927 | 10,303 |
186
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
7 Operational risk
Risk management framework
Regulatory framework
In line with the BNP Paribas Group framework, BNP Paribas
Fortis has implemented an all-embracing, single, operational
Risk Management framework for the entire bank, which com-
plies with the Basel III criteria laid down in the Advanced
Measurement Approach (‘AMA’). This approach supports the
organisation by offering better management of risk through
heightened operational risk awareness. It ensures effective
measurement and monitoring of the operational risk profile.
Key players and governance
An appropriate risk management structure has been created
around a model with three levels of defense, which places the
primary responsibility for operational risk management and
mitigation with the Businesses. Within BNP Paribas Fortis, the
main control functions providing the second line of defence
are Compliance, Legal and RISK. Their role is to ensure that
the operational Risk Management framework is properly
embedded, that the operational risks that are identified,
assessed, measured and managed reflect the true risk profile
and that the resulting levels of own funds are adequate. The
third line of defense is provided by the General Inspection
(internal audit) department, which provides assurance that
risk structures and policies are being properly implemented.
The main governance bodies for the areas of Operational Risk
& Internal Control are the Internal Control Committees (ICC’s).
The Internal Control Committee (ICC) is the backbone of the
operational risk management & permanent control frame-
works. It aims at:
providing a clear and comprehensive consolidated view
to the management with respect to the entity’s situation
in terms of operational risk and risk of non-compliance;
raising alerts and escalating when necessary on weak-
nesses in the framework to the executive management;
materialising the involvement of the executive manage-
ment in these topics – among others by constituting a
forum for analysis and decision.
The ICC gathers the key stakeholders from the three lines of
defence to discuss and agree on the main topics pertaining
to operational risks, including operational and organisa-
tional aspects.
187
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
188
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
189
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
190
BNP PARIBAS FORTIS CONSOLIDATED FINANCIAL STATEMENTS 2023
REPORT OF THE ACCREDITED
STATUTORY AUDITOR
192
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Statutory auditor’s report to the shareholders’ meeting
of BNP Paribas Fortis SA/NV for the year ended
31 December 2023 - Consolidated financial statements
In the context of the statutory audit of the consolidated finan-
cial statements of BNP Paribas Fortis SA/NV (“the company”)
and its subsidiaries (jointly “the group”), we hereby submit
our statutory audit report. This report includes our report on
the consolidated financial statements and the other legal and
regulatory requirements. These parts should be considered as
integral to the report.
We were appointed in our capacity as statutory auditor by the
shareholders’ meeting of 20 April 2023, in accordance with
the proposal of the board of directors (“bestuursorgaan” /
“organe d’administration”) issued upon recommendation of
the audit committee and presentation of the works council.
Our mandate will expire on the date of the shareholders’
meeting deliberating on the financial statements for the year
ending 31 December 2025. We have audited the consolidated
financial statements of BNP Paribas Fortis SA/NV for the first
time during the financial year referred to in this report.
Report on the consolidated
financial statements
Unqualified opinion
We have audited the consolidated financial statements of
the group, which comprise the profit and loss account for the
year ended 31 December 2023, the statement of net income
and change in assets and liabilities recognised directly in
equity, the balance sheet at 31 December 2023, the con-
solidated cash flow statement for the year then ended, the
consolidated statement of changes in shareholder’s equity
between 1 January 2022 and 31 December 2023 and, as well
as the summary of significant accounting policies and other
explanatory notes. The consolidated balance sheet shows
total assets of 373.880 million EUR and the consolidated profit
and loss account shows a profit for the year then ended of
3.542 million EUR.
In our opinion, the consolidated financial statements give a
true and fair view of the group’s net equity and financial posi-
tion as of 31 December 2023 and of its consolidated results
and its consolidated cash flow for the year then ended, in
accordance with International Financial Reporting Standards
(IFRS) as adopted by the European Union and with the legal
and regulatory requirements applicable in Belgium.
Basis for the unqualified opinion
We conducted our audit in accordance with International
Standards on Auditing (ISA), as applicable in Belgium. In
addition, we have applied the International Standards on
Auditing approved by the IAASB applicable to the current
financial year, but not yet approved at national level. Our
responsibilities under those standards are further described
in the “Responsibilities of the statutory auditor for the audit of
the consolidated financial statements” section of our report.
We have complied with all ethical requirements relevant to
the statutory audit of consolidated financial statements in
Belgium, including those regarding independence.
We have obtained from the board of directors and the com-
pany’s officials the explanations and information necessary
for performing our audit.
We believe that the audit evidence obtained is sufficient and
appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the con-
solidated financial statements of the current period. These
matters were addressed in the context of our audit of the
consolidated financial statements as a whole and in forming
our opinion thereon, and we do not provide a separate opinion
on these matters.
193
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Key audit matters How our audit addressed the key audit matters
Impairment allowances for loans and advances
BNP Paribas Fortis SA/NV’s consolidated accounts show loans and advances
for an amount of 238.419 million EUR at year-end 2023. 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 (280 million EUR),
the significant impact of the judgments applied on the carrying amount of
loans and advances and the increased uncertainty linked to the current
macroeconomic environment, auditing the process described above is
considered a Key Audit Matter.
We refer to Notes 5.e and 3.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.
Based on our risk assessment, we have examined the
impairment losses and challenged the methodology
applied as well as the assumptions made by
management as described in the next
column:
• 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 assumptions used in the impairment models for
determining the loan losses;
• 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 impairment;
• 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 methodologies
applied by using our industry knowledge and
experience, focusing on potential changes since
the implementation of IFRS 9;
• 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 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 and of goodwill embedded in investments consolidated
by applying the equitymethod
The Company’s 31 December 2023 consolidated accounts show a ‘Goodwill’
caption amounting to 872 million EUR, and an ‘Equity-method investments’
caption of 2.631 million EUR. These intangible and financial assets 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.
We identified these intangible and financial assets and the embedded goodwill
included in the equitymethod 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 5.m ‘Goodwill’, the
Note 5.k ‘Equity-method investments’ and the Note 8.c ‘Minority Interests’.
We focused our audit effort on (i) the valuation models
used 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 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;
• 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;
• 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.
194
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Key audit matters How our audit addressed the key audit matters
Estimation uncertainty with respect to the valuation of financial instruments
accounted for at fair value
The current economic conditions impact the fair value measurements of
financial instruments. 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 af 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 5.d ‘Measurement of the fair value of financial
instruments’ and 1 ‘Summary of significant accounting policies applied by
BNP Paribas Fortis’.
• 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.
General IT Controls
The reliability and security of IT systems plays a key role in the preparation of
BNP Paribas Fortis SA’s consolidated financial statements.
We deemed the assessment of the general IT controls of the infrastructures
and applications that contribute to the preparation of accounting and financial
information to be a key audit matter.
In particular, a system for controlling access rights to IT systems and
authorisation levels based on employee profiles represents a key control for
limiting the risk of inappropriate changes to application settings or underlying
data.
For the main systems used to prepare accounting and
financial information, assisted by our IT specialists, our
work consisted primarily in:
• obtaining an understanding of the systems,
processes and controls which underpin accounting
and financial data;
• assessing the general IT controls (application and
data access management, application changes/
developments management and IT operations
management) on key systems (in particular
accounting, consolidation and automatic
reconciliation applications);
• examining the control for the authorisation of
manual accounting entries;
• performing additional audit procedures, where
appropriate;
• taking into account the cybersecurity risk related
to the crisis in Ukraine and the widespread use of
remote working.
Valuation of the residual value of of vehicles given for lease
The residual values of the vehicles making up the group’s fleet are defined at
the start of the leasing contracts. At each closing date, they are reviewed in
order to obtain an estimate close to the estimated resale value of the vehicle.
The methods for determining these residual values are common to all group
entities. These estimates are based on a statistical model based on historical
used vehicle sales data while taking into account the specific context of the
different geographic areas.
In an environment still marked by significant uncertainty linked to the
macro-economic context and to the technological changes in the automobile
market, the group has observed a reduction in vehicle delivery times as well
as a decrease in resale values. In the same way, the automobile market is
gradually transforming towards the electrification of vehicles driven by changes
in regulations which are moving. These changes led management to make
estimate adjustments intended to maintain the consistency of the data included
in the models and has constituted provisions for uncertainties.
The residual value estimated during the fleet revaluation process may be
different from the initial residual value, which may lead to an adjustment of the
depreciation of the vehicles over the remaining duration of the contract.
We considered that the revaluation of residual values is a key point of the audit
due to the fact that it is based on the estimation of the resale values of the
vehicles recorded on the balance sheet, that it is based on a statistical model
and that it incorporates assumptions based on the judgment of management.
We appreciated the relevance of the group’s internal
control system which governs the estimates
contributing to the determination of residual values
and in particular its adaptation to the evolving context.
We reviewed the system which led to adjusting the
models according to market developments. On a
sample of the fleet, we reviewed the controls relating
to the revaluation of residual values while integrating
the new hypotheses and parameters which served as
the basis for the model.
With the help of our experts, we examined the
relevance of the statistical model implemented as well
as the main parameters. Our work also consisted, by
sampling, to:
• Reperform the consistency of data from revaluation
models through a data analysis approach;
• Compare the correspondence between the
accounting information and that from the fleet
management system;
• Check that the estimates used are based on
documented methods that comply with the
principles described in the appendix.
195
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Other matters
The consolidated financial statements for the previous finan-
cial year were audited by another statutory auditor who has
issued an unqualified opinion.
Responsibilities of the board of directors
for the preparation of the consolidated
financial statements
The Board of Directors is responsible for the preparation and
fair presentation of the consolidated financial statements in
accordance with International Financial Reporting Standards
(IFRS) 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 determines is
necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the consolidated financial statements, the board
of directors is responsible for assessing the group’s ability to
continue as a going concern, disclosing, as applicable, matters
to be considered for 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 other
realistic alternative but to do so.
Responsibilities of the statutory auditor
for the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or
error, and to issue a statutory 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 ISA 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
financial statements.
During the performance of our audit, we comply with the legal,
regulatory and normative framework as applicable to the audit
of consolidated financial statements in Belgium. The scope
of the audit does not comprise any assurance regarding the
future viability of the company nor regarding the efficiency
or effectiveness demonstrated by the board of directors in
the way that the company’s business has been conducted or
will be conducted.
As part of an audit in accordance with ISA, we exercise
professional judgment and maintain professional skepticism
throughout the audit. We also:
identify and assess the risks of material misstatement
of the consolidated financial statements, 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
an error, as fraud may involve collusion, forgery, inten-
tional omissions, misrepresentations, or the override of
internal control;
obtain an understanding of internal control relevant to
the audit in order to design audit procedures 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 use of the going
concern basis of accounting by the board of directors 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 uncer-
tainty exists, we are required to draw attention in our
statutory auditor’s report to the related disclosures in the
consolidated financial statements 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 financial statements, and whether the
consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair
presentation.
obtain sufficient appropriate audit evidence regarding the
financial information of the entities and business activities
within the group to express an opinion on the consolidated
financial statements. We are responsible for the direc-
tion, supervision and performance of the group audit. We
remain solely responsible for our audit opinion.
We communicate with the audit committee regarding, amongst
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.
196
REPORT OF THE ACCREDITED STATUTORY AUDITOR
We also provide the audit committee with a statement that
we have complied with relevant ethical requirements regard-
ing independence, and we communicate with them about
all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated to the audit committee, we
determine those matters that were of most significance in the
audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe
these matters in our report unless law or regulation precludes
any public disclosure about the matter.
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
financial statements and other matters disclosed in the annual
report on the consolidated financial statements.
Responsibilities of the statutory auditor
As part of our mandate and in accordance with the Belgian
standard complementary to the International Standards on
Auditing (ISA) as applicable in Belgium, our responsibility is
to verify, in all material respects the director’s report on the
consolidated financial statements and other matters disclosed
in the annual report on the consolidated financial statements,
as well as to report on these matters.
Aspects regarding the directors’ report
on the consolidated financial statements
and other information disclosed in the
annual report on the consolidated financial
statements
In our opinion, after performing the specific procedures on the
directors’ report on the consolidated financial statements, this
report is consistent with the consolidated financial statements
for that same year and has been established in accordance
with the requirements of article 3:32 of the Code of companies
andassociations.
In the context of our statutory audit of the consolidated finan-
cial statements we are responsible to consider, in particular
based on information that we became aware of during the
audit, if the directors’ report on the consolidated financial
statements and other information disclosed in the annual
report on the consolidated financial statements, i.e.:
The Statement of the Board of Directors
The Risk Management and Capital Adequacy chapter; and
The other information chapter
are free of material misstatements, either by information that
is incorrectly stated or otherwise misleading.
In the context of the procedures performed, we are not aware
of such a material misstatement.
Statements regarding independence
Our audit firm and our network have not performed any
prohibited services and our audit firm has remained
independent from the group during the performance of
our mandate.
The fees for the additional non-audit services compat-
ible with the statutory audit, as defined in article 3:65
of the Code of companies and associations, have been
properly disclosed and disaggregated in the notes to the
consolidated financial statements.
Single European Electronic Format (ESEF)
In accordance with the draft standard on the audit of the com-
pliance of the financial statements with the Single European
Electronic Format (“ESEF”), we have also performed the audit
of the compliance of the ESEF format and of the tagging with
the technical regulatory standards as defined by the European
Delegated Regulation No. 2019/815 of 17 December 2018
(“Delegated Regulation”).
The board of directors is responsible for the preparation, in
accordance with the ESEF requirements, of the consolidated
financial statements in the form of an electronic file in ESEF
format (“digital consolidated financial statements”) included
in the annual financial report.
Our responsibility is to obtain sufficient and appropriate
evidence to conclude that the format and the tagging of the
digital consolidated financial statements comply, in all mate-
rial respects, with the ESEF requirements as stipulated by the
Delegated Regulation.
Based on our work, in our opinion, the format and the
tagging of information in the official languages version of
the digital consolidated financial statements included in the
annual financial report of BNP Paribas Fortis SA/NV as of
31 December 2023 are, in all material respects, prepared in
accordance with the ESEF requirements as stipulated by the
Delegated Regulation.
197
REPORT OF THE ACCREDITED STATUTORY AUDITOR
Other statements
This report is consistent with our additional report to the audit committee referred to in article 11 of Regulation (EU) No 537/2014.
Zaventem, 25 March 2024
The statutory auditor
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Represented by Yves Dehogne
198
REPORT OF THE ACCREDITED STATUTORY AUDITOR
BNP PARIBAS FORTIS
ANNUAL REPORT 2023
(NON-CONSOLIDATED)
200
BNP PARIBAS FORTIS ANNUAL REPORT 2023 (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 2023 amounted to
255.5 billion euros, up by 16.3 billion euros or 7 % compared
with 31 December 2022. As at 31 December 2023, 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 institu-
tions (Heading III) increased by 11.7 billion euros and stood
at 43.5 billion euros. This increase is mainly linked to an
increased reverse repos activity.
Amounts receivable from customers (Heading IV) stood
almost stable at 142.1 billion euros as at 31 December 2023.
In Belgium, the amount of term loans increased by 2.1 billion
euros, spread over different type of loans such as investment
loans and funding given to subsidiaries. The mortgage loans
remained stable at 36.2 billion euros.
Bonds and other fixed-income securities (Heading V)
stood at 47.1 billion euros as at 31 December 2023, up by
4 billion euros.
The amount of 47.1 billion euros consists mostly of bonds issued
by public bodies (11.7 billion euros, up by 3.6 billion euros
compared with 2022 mainly following additional investments
in Belgian and EU issued bonds), by ‘Special Purpose Vehicles’
(31.3 billion euros, stable compared to last year) and by other
issuers (4.1 billion euros, slightly more than last year).
Financial fixed assets (Heading VII) amounted to 8.9 billion
euros as at 31 December 2023, in line with the situation at
the end of 2022.
Formation expenses and intangible fixed assets (Heading VIII)
amount to 7 million euros as at 31 December 2023.
Tangible fixed assets (Heading IX) amounted to 1.0 billion
euros as at 31 December 2023, in line with the situation at
the end of 2022.
Other assets (Heading XI) stayed stable at 1.7 billion euros
as at 31 December 2023.
Deferred charges and accrued income (Heading XII) stood at
11.1 billion euros as at 31 December 2023, down by 0.1 billion
euros compared to 31 December 2022 mainly following the
evolution of the interest rate derivatives. The fair value of
those instruments was impacted by the decrease of the inter-
est rates, 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
53.4 billion euros as at 31 December 2023, up by 16.5 billion
euros compared with 31 December 2022. Part of the evolu-
tion (decrease of (15.3) billion euros) was attributable to the
partial reimbursement of the TLTRO III (‘Targeted Longer-
Term Refinancing Operations’) of the ECB. The repos activity
increased by 30.6 billion euros.
Amounts payable to clients (Heading II) stood at 148.4 billion
euros as at 31 December 2023, down by (6.1) billion euros
compared to 31 December 2022.
Saving accounts decreased by (4.9) billion euros due the
issuance of the Belgian government bond. Current accounts
decreased by (14.5) billion euros, compensated by an increase
of 13.1 billion euros in the Terms deposits in the context of
increasing interest rates.
Debts evidenced by certificates (Heading III) amounted to
14.9 billion euros as at 31 December 2023, representing an
increase of 4.2 billion euros.
Other liabilities (Heading IV) stood at 7.4 billion euros, up by
1.2 billion euros compared with 31 December 2022.
Accrued charges and deferred income (Heading V) stood
at 10.2 billion euros, up by 1.3 billion euros compared with
31 December 2022, following the evolution of the interest rate
derivatives. The fair value of those instruments was impacted
by the decrease of the interest rates, 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) remained stable at
3.4 billion euros as at 31 December 2023.
Shareholders’ equity (Headings IX, X, XI, XII and XIII) stood
at 17.0 billion euros as at 31 December 2023, down by
(0.3) billion euros compared with 31 December 2022.
201
BNP PARIBAS FORTIS ANNUAL REPORT 2023 (NON-CONSOLIDATED)
Comments on the evolution of the income statement
BNP Paribas Fortis realized a net profit of the year of
2,584 million euros, compared to 2,207 million euros in 2022.
The interest margin (Headings I and II) amounted to
2,644 million euros in 2023, up by 67 million euros compared
to 2022, driven by margins on deposits that held up well,
despite higher refinancing costs and the negative impact of
the issuance of a one year Belgian government bond in the
third quarter of 2023.
income from variable-yield securities (Heading III) amounted
to 1,201 million euros in 2023, up by 259 million euros com-
pared to 2022, mainly due to an increase in dividends received
from enterprises linked by participating interests.
Commissions (Headings IV and V) amounted to 1,074 million
euros in 2023, up by 28 million euros compared to 2022. This
is mainly due to an increase in financial fees.
Profit on financial operations (Heading VI) amounted to
180 million euros, down by (107) million euros compared to
previous year, mainly due to interest rate foreign exchange
transactions.
General administrative expenses (Heading VII) came to
(2,518) million euros, an increase of (60) million euros com-
pared to 2022.
In Belgium, staff expenses decreased with 31 million euros, as
the increase of salaries and wages due to inflation was more
than offset by the decrease of pension expenses.
Other administrative expenses increased by (91) million
euros compared to previous year. This evolution is mainly
attributable to the growth of the activities next to the impact
of inflation, partially offset by a decrease in the banking taxes.
Depreciation and amounts written off on formation expenses,
intangible and tangible fixed assets (Heading VIII) amounted
to (49) million euros compared to (76) million euros in 2022.
Amounts written off on the amounts receivable and the
investment portfolio (Headings IX and X) totalled (12) million
euros, compared to (7) million euros in 2022.
Provisions for risks and charges (Headings XI and XII) showed
a net dotation of (12) million euros in 2023 against a net
release of 35 million euros in 2022.
The fund for general banking risks (Heading XIII) showed
a release of 459 million euros in 2023 due to the change
in accounting policy for the Fund. The Fund will cover the
expected credit losses on the credit portfolio and bonds that
are not considered credit impaired or doubtful.
Other operating income (Heading XIV) amounted to
179 million euros in 2023, up by 23 million euros compared
to previous year.
Other operating charges (Heading XV) amounted to
(388) million euros in 2023, up by 55 million euros compared
to 2022. This is mainly attributable to the growth of the activi-
ties next to the impact of inflation.
Extraordinary income (Heading XVII) came to 40 million euros
in 2023, down by (127) million euros compared to 2022. The
evolution was mainly driven by the gains on disposal of an
important financial fixed asset and adjustments to write
downs last year.
Extraordinary charges (Heading XVIII) came to (29) million
euros in 2023, a decrease by 9 million euros compared to 2022.
Income taxes (Heading XX) amounted to (185) million euros
in 2023, an increase by (95) million euros compared to 2022,
following the increase of the tax base.
202
BNP PARIBAS FORTIS ANNUAL REPORT 2023 (NON-CONSOLIDATED)
Proposed appropriation of the result
for the accounting period
Profit for the year for appropriation EUR 2,583.7 million
Profit brought forward from the previous year EUR 3,730.7 million
Profit to be appropriated EUR 6,314.4 million
Profit to be carried forward EUR 3,465.9 million
Dividend EUR 2,831.6 million
Other allocations* EUR 16.9 million
* This amount represents the profit bonus of 2.5 % 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 2023, 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 5.01 euros per share, or 2,831.6 million euros.
203
BNP PARIBAS FORTIS ANNUAL REPORT 2023 (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 2023 no transaction required the application
of this ‘Procedure’.
204
BNP PARIBAS FORTIS ANNUAL REPORT 2023 (NON-CONSOLIDATED)
BNP PARIBAS
FORTIS FINANCIAL
STATEMENTS 2023
(NON-CONSOLIDATED)
206
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2023 (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 1,235,303 1,276,969
II. Government securities eligible for refinancing with the central bank 10200 - -
III. Amounts receivable from credit institutions 10300 42,302,964 30,622,737
A. At sight 10310 22,357,348 23,906,248
B. Other amounts receivable (at fixed term or period of notice) 10320 19,945,616 6,716,489
IV. Amounts receivable from customers 10400 142,090,886 141,191,612
V. Bonds and other fixed-income securities 10500 47,118,873 43,153,106
A. Issued by public bodies 10510 11,687,511 8,106,034
B. Issued by other borrowers 10520 35,431,362 35,047,072
VI. Shares and other variable-yield securities 10600 51,557 53,001
VII. Financial fixed assets 10700 8,958,311 9,237,306
A. Participating interests in affiliated enterprises 10710 5,665,280 5,804,165
B.
Participating interests in other enterprises linked by participating
interests
10720 2,576,983 2,575,022
C. Other shares held as financial fixed assets 10730 158,453 168,266
D.
Subordinated loans to affiliated enterprises and to other
enterprises linked by participating interests
10740 557,595 689,853
VIII. Formation expenses and intangible fixed assets 10800 5,576 6,524
IX. Tangible fixed assets 10900 919,259 964,979
X. Own shares 11000 - -
XI. Other assets 11100 1,741,918 1,486,036
XII. Deferred charges and accrued income 11200 11,072,656 11,207,994
TOTAL ASSETS 19900 255,497,303 239,200,263
207
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2023 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 2.2
In thousands of euros
Codes Current period Previous period
LIABILITIES
BORROWINGS 201/208 238,488,476 221,926,638
I. Amounts owed to credit institutions 20100 53,398,403 36,859,243
A. At sight 20110 873,068 2,607,247
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 52,525,335 34,251,996
II. Amounts payable to clients 20200 148,407,754 154,603,824
A. Savings deposits 20210 61,834,454 66,693,682
B. Other debts 20220 86,573,300 87,910,142
1. At sight 20221 61,411,797 76,007,470
2. At fixed term or period of notice 20222 25,161,503 11,902,672
3. As a result of the rediscounting of trade bills 20223 - -
III. Debts evidenced by certificates 20300 14,939,355 10,780,648
A. Debt securities and other fixed-income securities in circulation 20310 10,766,266 6,344,618
B. Other 20320 4,173,089 4,436,030
IV. Other amounts payable 20400 7,439,045 6,189,429
V. Accrued charges and deferred income 20500 10,240,402 8,937,382
VI. Provisions and deferred taxes 20600 219,415 222,931
A. Provisions for risks and charges 20610 219,415 222,931
1. Pensions and similar obligations 20611
2. Fiscal charges 20612 -
3. Other risks and charges 20613 219,415 222,931
B. Deferred taxes 20620 - -
VII. Fund for general banking risks 20700 412,602 871,681
VIII. Subordinated liabilities 20800 3,431,500 3,461,500
SHAREHOLDERS' EQUITY 209/213 17,008,827 17,273,625
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 3,465,931 3,730,729
TOTAL LIABILITIES 29900 255,497,303 239,200,263
208
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2023 (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 6,504,795 3,528,322
A. Of which: from fixed-income securities 40110 820,703 444,821
II. Interest payable and similar charges 40200 3,860,927 951,747
III. Income from variable-yield securities 40300 1,200,569 942,040
A. From shares and other variable-yield securities 40310 2,458 9,287
B. From participating interests in affiliated enterprises 40320 972,610 632,674
C.
From participating interests in other enterprises linked by
participating interests
40330 225,104 299,941
D. From other shares held as financial fixed assets 40340 397 138
IV. Commissions receivable 40400 1,535,349 1,524,125
A. Brokerage and related commissions 40410 559,836 556,165
B. Management, consultancy and conservation commissions 40420 401,531 353,507
C. Other commissions received 40430 573,982 614,453
V. Commissions paid 40500 461,417 478,079
VI. Profit (loss) on financial transactions (+)/(-) 40600 179,618 286,568
A. On trading of securities and other financial instruments 40610 174,054 402,796
B. On disposal of investment securities 40620 5,564 (116,228)
VII. General administrative expenses 40700 2,517,629 2,457,463
A. Remuneration, social security costs and pensions 40710 1,262,981 1,293,471
B. Other administrative expenses 40720 1,254,648 1,163,992
VIII.
Depreciation/amortization of and other write-downs on
formation expenses, intangible and tangible fixed assets.
40800 49,053 75,912
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 20,387 15,496
X.
Decrease in write-downs on the investment portfolio of bonds,
shares and other fixed-income or
variable-yield securities.
(+)/(-) 41000 (8,197) (8,997)
XI.
Utilization and write-backs of provisions for liabilities and
charges other than those included in the off-balance sheet
captions.
(+)/(-) 41100 (27,623) (48,622)
XII.
Provisions for risks and charges other than those included in
the off-balance sheet captions.
41200 39,691 14,114
XIII.
Transfer from (Appropriation to) the fund for general banking
risks.
(+)/(-) 41300 459,079 -
XIV. Other operating income 41400 178,970 155,751
XV. Other operating charges 41500 387,886 332,669
XVI. Profits (losses) on ordinary activities before taxes. (+)/(-) 41600 2,757,210 2,168,945
209
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2023 (NON-CONSOLIDATED)
N° BE 0403.199.702 F-estb 3
In thousands of euros
Codes Current period Previous period
XVII. Extraordinary income 41700 40,172 166,820
A.
Adjustments to depreciation/amortization of and to other
write-downs on intangible and
and tangible fixed assets
41710 1,449 353
B. Adjustments to write-downs on financial fixed assets 41720 29,421 99,206
C.
Adjustments to provisions for extraordinary risks and
charges
41730 - -
D. Capital gains on disposal of fixed assets 41740 9,302 67,097
E. Other extraordinary income 41750 - 164
XVIII. Extraordinary charges 41800 29,031 38,299
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 10,704 27,157
C. Provisions for extraordinary risks and charges (+)/(-) 41830 - -
D. Capital losses on disposal of fixed assets 41840 13,466 8,802
E. Other extraordinary charges 41850 4,861 2,340
XIX. Profits (Losses) for the period before taxes (+/-) 41910 2,768,351 2,297,466
XIXbis.
A. Transfer to deferred taxes 41921 - -
B. Transfer from deferred taxes 41922 - -
XX.
Income taxes (+)/(-) 42000 184,660 90,366
A. Income taxes 42010 199,311 95,289
B. Adjustment of income taxes and write-back of tax provisions 42020 14,651 4,923
XXI. Profits (Losses) for the period (+)/(-) 42100 2,583,691 2,207,100
XXII. Transfer to (or from) untaxed reserves (+)/(-) 42200 - -
XXIII. Profit (Losses) for the period available for appropriation (+)/(-) 42300 2,583,691 2,207,100
210
BNP PARIBAS FORTIS FINANCIAL STATEMENTS 2023 (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
212
OTHER INFORMATION
Monthly high and low prices for BNP Paribas Fortis
shares at the weekly auctions in 2023
The monthly high and low prices for BNP Paribas Fortis shares
at the weekly auctions of Euronext Brussels (Euronext Expert
Market) in 2023 were as follows (in euros):
Month Low High
January 32.2 35.2
February 36.0 38.6
March 38.6 45.0
April NA NA
May 42.2 44.0
June 40.2 42.0
July 40.2 40.2
August 40.2 40.2
September 40.4 41.2
October 42.0 42.0
November 41.6 42.0
December 41.6 41.6
External functions held by directors and effective
leaders on the 31
st
of December 2023 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.
213
OTHER INFORMATION
Name, Surname
(Post)
Company Business Activity (Post) Listed
Max JADOT
(Chairman of the Board of Directors)
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)
Ethiasco SRL/BV Holding company -
(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)
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)
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)
214
OTHER INFORMATION
Name, Surname
(Post)
Company Business Activity (Post) Listed
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)
Sandra WILIKENS
(Executive director)
Vanbreda Risk & Benefits SA/NV Insurance broker -
(Non-executive director)
215
READY FOR YOUR 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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