2015 FINANCIAL INFORMATION

SECURITIES SERVICES FINANCIAL REPORT The bank for a changing world 1

34 countries

10,400

Presence in

USD

2,074

billion assets under administration

9,500

employees worldwide

USD

73 million

transactions settled All figures as of 31 December 2015

2

funds administered

8,770

billion assets under custody

BNP PARIBAS SECURITIES SERVICES IN 2015

BNP Paribas Securities Services was one of the fastest-growing securities services providers in the world in 2015, with a 9% rise in assets under custody and 30% rise in assets under administration compared to 2014. This growth is the result of strong commercial momentum as well as the acquisition of Prime Fund Services, a leading provider of fund administration, custody and banking services for alternative investment managers, from Credit Suisse in June 2015. Today, BNP Paribas Securities Services is the fifth largest custodian bank in the world and the largest in Europe by assets under custody. BNP Paribas Securities Services won a number of landmark deals in 2015. In April, UniSuper, one of the leading Australian superannuation funds with 380,000 members and AUD 50 billion in assets under management, appointed the bank as its master custodian. In May, the bank announced its BNP Paribas Dealing Services subsidiary had been selected to manage the dealing activities of RPMI Railpen, the investment manager for the Railways Pension Scheme, the sixth largest pension scheme in the UK. In September, the bank announced it had successfully implemented new custody mandates for 16 asset managers in Colombia, including 119 funds totalling USD 3 billion in assets under management. Today, BNP Paribas Securities Services ranks number 5 in the world and number 1 in Europe by assets under custody.

2015 BNP PARIBAS GROUP RESULTS The strength of the BNP Paribas Group’s business model lies in the diversity of its geographical presence, client base and activities. Since 1 January 2015, the organisation of the Group’s division now centres on three entities: Domestic Markets, International Financing Services and Corporate and Institutional Banking. BNP Paribas Securities Services is one of the businesses that make up the Corporate and Institutional Banking division.

• In a context of a gradual return to growth in Europe, BNP Paribas delivered a good overall performance in 2015. • Revenues reached EUR 42,938 million, up by 9.6% compared to 2014. • The revenues of all the operating divisions were up compared to 2014: -  Domestic Markets1: +1.6% - International Financial Services: +14.5% - Corporate and Institutional Banking: +13.2%

• The 2015 balance sheet was rock solid: -  CET1 Ratio2: 10.9% (+60 bp vs. 31.12.14) -  Leverage Ratio2: 4.0% (+40 bp vs. 31.12.14) • The Group actively implemented the remediation plan decided as part of the comprehensive settlement with the U.S. authorities regarding the review of certain USD transactions in 2014, which included the payment by BNP Paribas of a total of USD 8.97 billion in penalties, or EUR 6.6bn.

1

Including 100% of Private Banking in the domestic networks (excluding PEL/CEL effects)

2

As at December 2015, CRD4 (2019 Fully loaded ratio)

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HIGHLIGHTS 2015

Target2-Securities In 2015, BNP Paribas Securities Services supported its clients in the first five markets to adopt TARGET2-Securities (T2S). T2S brings substantial benefits to the European post-trading industry by providing a single pan-European platform for securities settlement in central bank money. T2S is one of the largest infrastructure projects launched by the Eurosystem so far. BNP Paribas Securities Services spent eight years preparing for the transition. The bank worked closely with its clients, the ECB and market infrastructure and invested heavily in its own settlement system to maximise the benefits T2S brings.

Ucits V With assets under depositary now well above EUR 1.3 trillion across 7,700 fund compartments in 15 jurisdictions, BNP Paribas Securities Services capitalised on its successful roll-out of AIFMD services in 2014 to prepare for the Ucits directive, which came into force in March 2016.

Solvency II BNP Paribas Securities Services worked with its clients to enhance its existing Solvency II reporting capabilities in order to help its insurance clients comply with the regulation, which came into force on 1 January 2016. The bank also helped asset managers provide their insurance clients with the look through data on Ucits funds and mandates required by the directive.

Enhanced intraday liquidity reporting BNP Paribas Securities Services has been helping its clients monitor their intraday liquidity positions in greater detail in light of new regulatory requirements such as Basel III. Since October 2015, the bank has been providing clients with their intraday liquidity data via DNA (Data Navigation Analysis), its data visualisation platform. The advanced interface enables clients to view their data, analyse it and easily identify patterns relating to intraday liquidity peaks and troughs, gross payments paid and received, and underlying time-stamped cash flow movements. The objective is to help clients better anticipate their liquidity positions across multiple markets, accounts and currencies, and help inform their strategic decision-making.

Regulatory change BNP Paribas Securities Services representatives contribute to consultations papers for the European Commission and are regularly consulted by the press for expert commentary on regulatory issues related to the securities services industry. In addition, it shares its regulatory insight through a series of publications including guides, whitepapers and research reports.

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AWARDS AND RANKINGS

The Asset Triple A - Asset Servicing 2015 Awards: • Best Custody Specialist Award–Fund Manager Funds Europe Awards 2015 • European Administrator of the Year Custody Risk European 2015 Awards • Insurance Custodian of the Year • Fund of Fund Administrator of the Year Investment Week Fund Services 2015 Awards • Best Fund Services Provider Global Investor/ISF magazine - Equity Lending Survey 2015 • First place for fixed income collateral trading Global Investor/ISF Sub Custody Survey 2015 • Top ranking in 22 markets Global Custodian Agents Banks in Major Markets Survey 2015 • First place across all service areas in Australia, Singapore, Austria and United Kingdom • Qualified for the first time for US ranking where the bank was ranked first in four out of six service areas • Stand out in technology and settlement, ranking first in ten of the bank’s markets Global Custodian Agent Banks in Emerging Markets Survey 2015 • Top market scores in Brazil, Hungary, Morocco, Poland and Turkey

Jacques d’Estais Chairman of the supervisory board BNP Paribas Securities Services Member of the executive committee BNP Paribas

Patrick Colle General manager BNP Paribas Securities Services

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BNP PARIBAS GROUP FINANCIAL STATEMENTS Consolidated balance sheet ASSETS In millions of euros

2015

2014 (1)

Cash and amounts due from central banks

134 547

117 473

Financial instruments at fair value through profit or loss

684 983

813 647

Derivatives used for hedging purposes Available-for-sale financial assets Loans and receivables due from credit institutions

18 063

19 766

258 933

252 292

43 427

43 348

682 497

657 403

Remeasurement adjustment on interest-rate risk hedged portfolios

4 555

5 603

Held-to-maturity financial assets

7 757

8 965

Current and deferred tax assets

7 865

8 628

108 018

110 088

Loans and receivables due from customers

Accrued income and other assets Differed investment to benefits Equity-method Investments Investment property Property, plant and equipment Intangible assets Goodwill Total assets

0

0

6 896

7 371

1 639

1 614

21 593

18 032

3 104

2 951

10 316

10 577

1 994 193

2 077 758

LIABILITIES AND SHAREHOLDERS’ EQUITY in millions of euros Due to central banks Financial instruments at fair value through profit or loss

2014 (1) 1 680

618 261

743 527

Derivatives used for hedging purposes

21 068

22 993

Due to credit institutions

84 146

90 352

Due to customers

700 309

641 549

Debt securities

159 447

187 074

3 946

4 765

Remeasurements adjustment on interest-rate risk hedged portfolios Current and deferred tax liabilities Accrued expenses and other liabilities Technical reserves of insurance companies

2 993

2 920

88 629

87 722

185 043

175 214

Provisions for contingencies and charges

11 345

12 337

Subordinated debt

16 544

13 936

1 894 116

1 984 069

82 839

83 210

Total liabilities Share capital, additional paid-in capital and retained earnings Net income for the period attributable to shareholders

6 694

157

Changes in assets and liabilities recognised directly in equity

6 736

6 091

96 269

89 458

Shareholders' equity Minority interests Total consolidated equity Total liabilities and equity

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2015 2 385

3 808

4 231

100 077

93 689

1 994 193

2 077 758

BNP PARIBAS GROUP FINANCIAL STATEMENTS Consolidated profit and loss account In millions of euros Net interest income

2015

2014 (1)

22 553

20 319

Net commission income

7 615

7 388

Net gain/loss on financial instruments at fair value through profit or loss

6 054

4 631

Net gain/loss on available-for-sale financial assets and other financial assets not measured at fair value

1 485

1 969

Net Income from other activities Net banking income Operating expense

5 231

4 861

42 938

39 168

-27 600

-24 958

Depreciation, amortisation and impairment of property, plant and equipment and intangible assets

-1 654

-1 566

Gross operating income

13 684

12 644

Cost of risk

-3 797

-3 705

-100

-6 000

9 787

2 939

Share of earnings of equity-method entities

589

407

Net gain/loss on non-current assets

996

155

-993

-351

Cost related to the comprehensive settlement with US authorities Operating income

Change in value of goodwill Pre-tax net income

10 379

3 150

Corporate income tax

-3 335

-2 643

7 044

507

350

350

6 694

157

Net income Net income attributable to minority interests Net income attributable to equity holders

Long-term credit ratings BNP Paribas Standard & Poor’s

A+

Negative Outlook

02.12.2015

Moody's Fitch

A1 A+

Stable Outlook Stable Outlook

28.05.2015 08.12.2015

Long-term credit ratings BNP Paribas Securities Services

(1)

Standard & Poor’s

A+

Negative Outlook

02.12.2015

Moody's Fitch

A1 A+

Stable Outlook Stable Outlook

28.05.2015 08.12.2015

Restated according to the IFRIC 21 interpretation

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BNP PARIBAS SECURITIES SERVICES FINANCIAL STATEMENTS Statutory balance sheet ASSETS In millions of euros

2015

2014

Cash and amounts due from central banks and post office banks

20 655

6 675

Treasury bills and money-market instruments

15 966

14 068

Due from credit institutions

62 742

52 553

Customer items

3 890

3 967

Bonds and other fixed-income securities

2 494

2 640

16 165

11 745

219

153

Equities and other variable-income securities Investment in undertakings and other participating interests and equities securities held for long-term investment Tangible and intangible assets and goodwill Accrued income and other assets Total assets

509

514

15 239

13 927

137 879

106 242

LIABILITIES AND SHAREHOLDERS’ EQUITY In millions of euros Due to central banks and post office banks

2015

2014

0

1

Due to credit institutions

10 738

9 019

Customer items

82 707

60 370

Other liabilities

41 959

34 041

Accrued expenses and other adjustments

1 178

1 640

Provisions for contingencies and charges

127

111

Subordinated debts

200

200

Shareholders’ equity

970

860

Raised capital

177

172

Premium

456

376

Reserves

166

165

Retained earnings Net income Total liabilities and shareholders' equity

0

0

171

147

137 879

106 242

Notes

• BNP Paribas Securities Services has a French banking license and is therefore regulated by banking authorities in Europe and France.

Thanks to its legal form (“Société en Commandite par Actions (SCA)” or partnership limited by shares), the parent company is indefinitely liable for the debts of the company through its own assets.

• The Fund Administration and Trust businesses carried out by BNP Paribas Fund Services or BNP Paribas Trust companies form part of the Securities Services business line but do not impact BNP Paribas Securities Services’ statutory financial statements. These companies are subsidiaries (not branches) of BNP Paribas Securities Services and it should be noted that BNP Paribas Securities Services does not produce consolidated financial statements.

• The statutory accounts of BNP Paribas Securities Services are prepared in accordance with applicable regulations in France for a non-listed

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company (French GAAP). Since the implementation of IFRS norms in 2005, the bank continues to harmonise its statutory accounts with international norms wherever consistent with French regulations.

BNP PARIBAS SECURITIES SERVICES FINANCIAL STATEMENTS Statutory profit and loss account In millions of euros

2015

2014

Net interest income

388

333

1037

942

Net commissions income Net other banking income

150

147

Net banking income

1 575

1 422

General operating expenses

-1259

-1113

Depreciation, amortisation and provisions on tangible and intangible assets and goodwill

-56

-52

Gross operating income

260

257

Cost of risk

0

0

260

257

Gain (losses) on disposals of long term investments and changes in provisions

5

-5

Goodwill amortisation

0

0

Net non recurring items

0

0

265

251

Income tax

-94

-104

Net income

171

147

Operating income

Net income before tax

Notes to the BNP Paribas Securities Services statutory balance sheet •  It is to be noted that comparability of balance sheet is partially impacted following acquisitions made in 2015. •  Due from/to credit institutions items amount to EUR 62.742 million (on the asset side) and EUR 10.738 million (on the liability side) of which the main part are transactions with the BNP Paribas Group. Remaining balances on the asset side are securities received under resale agreements and on the liability side securities given under repurchase agreement. •  Customer items are mainly short-term overdrafts granted to selected clients, essentially institutional investors, for which BNP Paribas Securities Services applies strict credit requirements. •  Bonds and other fixed-income securities, Equities and other variable-income securities mainly include EUR 32.052 million related to the Securities Lending and Borrowing transactions that accounting rules requires to report as such. The associated debt is accounted for on the liability side as debt on borrowed securities under other liabilities. •  Tangible and intangible assets and goodwill include mainly goodwill for a total of EUR 494 million related to acquisitions and legal restructuring made over the past years. The remainder is mainly information technology investments. •  Accrued income and other assets on the asset side and Accrued expenses and other adjustments on the liability side amount to EUR 15.208 million and EUR 1.178 million respectively, and include for EUR 13.085 million of cash collateral related to securities lending and borrowing transactions as well as derivatives clearing activity on the asset side and cash deposits on the liability side. •  Provisions for contingencies and charges amount to EUR 127 million of which 46 million relate to pension liabilities.

Notes to the BNP Paribas Securities Services profit and loss account •  In 2015, BNP Paribas Securities Services has seen a significant growth of its activity explained by stock markets re-bounce, strong commercial momentum and acquisitions positive effect. Consequently, assets under custody have increased by 9% compared with 2014 and assets under management have grown by more than 30%. Also, due to a higher volatility on the financial markets, the level of transactions settled in 2015 has increased by 18% compared to 2014. On the other hand, interest rates, mainly euro based, have shown a negative trend over the whole year compared to 2014. Despite this latter effect, net banking income shows a more than 10% increase. Net commissions income, the major source of revenue, is driven mainly by the number of transactions settled and the value of assets held in custody and administration. Fees and commissions paid include mainly the fees and commissions paid to sub-custodians and central depositories. •  General operating expenses show a 13% increase versus 2014, driven mainly by investments to support business development as well as the consolidation within BNP Paribas Securities Services statutory accounts of the activities acquired in 2014. •  Depreciation, amortisation and provisions on tangible and intangible assets and goodwill includes mainly EUR 32.9 million amortisation of goodwill related to acquisitions and internal legal restructuring made over the past years, mainly in Germany, Spain, Italy, France, Ireland and the United Kingdom as well as amortisation related to other tangible and intangible assets. •  Income tax amounts to EUR 94 million, representing an effective income tax rate of 35.50%. Consequently, net income shows a 16% increase compared to 2014.

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BNP PARIBAS SECURITIES SERVICES ORGANISATION AT 31 DECEMBER 2015

Business carried out via branches Australia Austria(1) Belgium Cyprus(2) Germany Greece Guernsey Hong Kong Hungary Ireland Italy

Business carried out via subsidiaries BNP Paribas Fund Services Espana S.L.

Sundaram BNP Paribas Fund Services Ltd(4)

BNP Paribas Fund Services Australasia Pty Ltd BNP Paribas Fund Services Australia Pty Ltd New Zealand Branch BNP Paribas Fund Administration Services (Ireland) Ltd BNP Paribas Trust Corporation UK Ltd France Titrisation S.A.S. BNP Paribas Bank & Trust Cayman Ltd BNP Paribas Fund Administration Services (Cayman) Ltd

Jersey

BNP Paribas Trust Services (Cayman) Ltd

Luxembourg

BNP Paribas Trust Services Singapore Ltd

Netherlands

BNP Paribas Securities Services Trust Company (Jersey) Ltd

Poland

BNP Paribas Dealing Services

Portugal

BNP Paribas Dealing Services UK Branch

Singapore

BNP Paribas Dealing Services Asia Ltd

Spain

Business carried out via joint-ventures

Sweden(3)

BNP Paribas Trust Services (Hong Kong) Ltd

Switzerland

BNP Paribas Global Securities Operations Private Ltd

United Kingdom

BNP Paribas Securities Services Sociedad Fiduciaria SA

Notes (1) Business operated remotely from Frankfurt (2) Business operated remotely from Athens (3) Business operated remotely from London (4) BNP Paribas Securities Services share of equity 49% (5) BNP Paribas share of equity: 66%

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BNP PARIBAS SECURITIES SERVICES ORGANISATION AT 31 DECEMBER 2015

Business carried out via BNP Paribas subsidiaries or affiliates

Business carried out via BNP Paribas branches

BNP Paribas Fund Services France

India

BNP Paribas Financial Services LLC

Japan

BMCI (Morocco)

United Kingdom

BNP Paribas Brazil

United States

BNP Paribas (China) Ltd TEB Bank (Turkey) SLIB SA(5) Stichting Bewaarder BNP Paribas Beleggingsfondsen NL BNP Paribas Securities Corporation BNP Paribas Prime Brokerage Inc.

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The information contained within this document (‘information’) is believed to be reliable but BNP Paribas Securities Services does not warrant its completeness or accuracy. Opinions and estimates contained herein constitute BNP Paribas Securities Services’ judgment and are subject to change without notice. BNP Paribas Securities Services and its subsidiaries shall not be liable for any errors, omissions or opinions contained within this document. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. For the avoidance of doubt, any information contained within this document will not form an agreement between parties. Additional information is available on request. BNP Paribas Securities Services is incorporated in France as a Partnership Limited by Shares and is authorised and supervised by the European Central Bank (ECB), the ACPR (Autorité de Contrôle Prudentiel et de Résolution ) and the AMF (Autorité des Marchés Financiers). BNP Paribas Securities Services, London branch is authorised by the ACPR, the AMF and the Prudential Regulation Authority and is subject to limited regulation by the Financial Conduct Authority and Prudential Regulation Authority. Details about the extent of our authorisation and regulation by the Prudential Regulation Authority and regulation by the Financial Conduct Authority are available from us on request. BNP Paribas Securities Services, London branch is a member of the London Stock Exchange. BNP Paribas Trust Corporation UK Limited (a wholly owned subsidiary of BNP Paribas Securities Services), incorporated in the UK is authorised and regulated by the Financial Conduct Authority. In the U.S., BNP Paribas Securities Services is a business line of BNP Paribas which is incorporated in France with limited liability. Services provided under this business line, including the services described in this document, if offered in the U.S., are offered through BNP Paribas, New York Branch (which is duly authorized and licensed by the State of New York Department of Financial Services); if a securities product, through BNP Paribas Securities Corp. or BNP Paribas Prime Brokerage, Inc., each of which is a broker-dealer registered with the Securities and Exchange Commission and a member of SIPC and the Financial Industry Regulatory Authority; or if a futures product through BNP Paribas Securities Corp., a Futures Commission Merchant registered with the Commodities Futures Trading Commission and a member of the National Futures Association. 160711U_FB_BR_EN

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The bank for a changing world