2007 REGISTRATION DOCUMENT

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5 NotesCONSOLIDATED FINANCIAL STATEMENTSto the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European Union< Contents >6.c.2Medium/long-term bond refinancingBNP Paribas also acts as arranger for customers, setting up funds thatreceive securitised customer assets and issuing medium and long-termbonds which are then placed by the Group. However, BNP Paribas doesnot manage these funds, and they are not consolidated. At 31 December2007, the BNP Paribas Group had granted liquidity facilities totallingNote 7.SALARIES AND E MPLOYEE B ENEFITSEUR 309 million (EUR 289 million at 31 December 2006) to thirteen suchfunds (Meliadi SARL, Tenzing CFO, Forest Finance, Italfinance, EmeraldAssets, LFE Capital III, Cavendish, RMF Euro CDO IV, RMF Euro CDO V,Master Dolfin 2003, CR Ferrara, CR Firenze and Halcyon), representing atotal of EUR 4,580 million in securitised receivables (EUR 6,480 millionat 31 December 2006).127.a SALARY AND EMPLOYEE BENEFITEXPENSESSalary and employee benefit expenses for the year to 31 December2007 came to EUR 11,105 million (EUR 10,260 million for the year to31 December 2006).Fixed and variable remuneration, incentive bonuses and profit-sharingamounted to EUR 8,391 million (EUR 7,560 million in 2006); retirementbonuses, pension costs and social security taxes to EUR 2,368 million(EUR 2,336 million in 2006); and payroll taxes to EUR 346 million(EUR 364 million in 2006).7.b EMPLOYEE BENEFIT OBLIGATIONS7.b.1Post-employment benefits underdefined-contribution plansIn France, the BNP Paribas Group pays contributions to variousnationwide basic and top-up pension schemes. BNP Paribas SA andcertain subsidiaries have set up a funded pension plan under a companywideagreement. Under this plan, employees will receive an annuity onretirement in addition to the pension paid by nationwide schemes.In the rest of the world, defined-benefit plans have been closed tonew employees in most of the countries in which the Group operates(primarily the United States, Germany, Luxembourg, the United Kingdom,Ireland, Norway and Australia). These employees are now offereddefined-contribution plans. Under these plans, the Group’s obligationis essentially limited to paying a percentage of the employee’s annualsalary into the plan.The amount paid into defined-contribution post-employment plansin France and other countries for the year to 31 December 2007was approximately EUR 362 million (EUR 346 million for the year to31 December 2006).7.b.2Post-employment benefits underdefined-benefit plansThe legacy defined-benefit plans in France and other countries are valuedindependently using actuarial techniques, applying the projected unitcost method, in order to determine the expense arising from rights vestedin employees and benefits payable to retired employees. The demographicand financial assumptions used to estimate the present value of theseobligations and of plan assets take account of economic conditionsspecific to each country and Group company. Actuarial gains and lossesoutside the permitted 10% “corridor” are amortised; these gains andlosses are calculated separately for each defined-benefit plan.Provisions set up to cover obligations under defined-benefit postemploymentplans at 31 December 2007 totalled EUR 1,391 million(EUR 1,554 million at 31 December 2006), comprising EUR 469 millionfor French plans and EUR 930 million for other plans.Pension plans and other post-employment benefitsPension plansIn France, BNP Paribas pays a top-up banking industry pension arisingfrom rights acquired to 31 December 1993 by ex-employees in retirementat that date and active employees in service at that date. The residualpension obligations are covered by a provision in the consolidatedfinancial statements or transferred to an insurance company outsidethe Group.The defined-benefit plans previously granted to Group executives formerlyemployed by BNP, Paribas or Compagnie Bancaire have all been closedand converted into top-up type schemes. The amounts allocated to thebeneficiaries, subject to their still being with the Group at retirement,were fixed when the previous schemes were closed. These pension planshave been contracted out to insurance companies. The fair value of therelated plan assets in these companies’ balance sheets breaks down as75% bonds, 18% equities and 7% property assets.In other countries, pension plans are based either on pensions linked tothe employee’s final salary and length of service (United Kingdom), or onannual vesting of rights to a capital sum expressed as a percentage ofannual salary and paying interest at a pre-defined rate (United States).Some plans are top-up schemes linked to statutory pensions (Norway).Some plans are managed by an insurance company (Spain), a foundation(Switzerland) or by independent fund managers (United Kingdom). At31 December 2007, 88% of the gross obligations under these plansconcerned 20 plans in the United Kingdom, the United States andSwitzerland. The fair value of the related plan assets was split as follows:46% equities, 42% bonds, 12% other financial instruments.345678910111682007 Registration document - BNP PARIBAS
CONSOLIDATED FINANCIAL STATEMENTS5Notes to the financial s tatements p repared in accordance with I nternational Financial Reporting S tandards as adopted by the European Union< Contents >Other post-employment benefitsGroup employees also receive various other contractual post-employmentbenefits such as bonuses payable on retirement. BNP Paribas’ obligationsfor these bonuses in France are funded through a contract taken outwith a third-party insurer. In 2006, BNP Paribas paid a premium ofEUR 372 million under this contract, an amount that had previouslybeen provisioned.➤In other countries, the bulk of the Group’s obligations are in Italy (84%),where pension reforms changed Italian termination indemnity schemes(TFR) into defined-contribution plans with effect from 1 January 2007.Rights vested up to 31 December 2006 continue to be classified asdefined benefit obligations.The tables below provide details relating to the Group’s obligations forboth pensions and other post-employment benefits:RECONCILIATION OF ASSETS AND LIABILITIES RECOGNISED IN THE BALANCE SHEETIn millions of euros 31 December 2007 31 December 2006Present value of obligation 4,047 3,884Present value of obligations wholly or partially funded by plan assets 3,156 2,837Present value of unfunded obligations 891 1,047Fair value of plan assets (2,474) (2,213)of which fi nancial instruments issued by BNP Paribas - 3Fair value of surplus assets (68) (70)Fair value of segregated assets (1) (14) (12)Cost not yet recognised in accordance with IAS 19 (280) (216)Past service cost (245) (52)Net actuarial losses/gains (35) (164)Other amounts recognised in the balance sheet 50 54NET OBLIGATION RECOGNISED IN THE BALANCE SHEET FOR DEFINED-BENEFIT PLANS 1,261 1,427(1)Segregated assets are ring-fenced assets held in the balance sheets of Group insurance companies to cover post-employment benefit obligations transferred tothe insurance companies for certain categories of employees of other Group entities.➤MOVEMENTS IN THE PRESENT VALUE OF THE OBLIGATION AND SURPLUS ASSETSIn millions of euros 31 December 2007 31 December 2006PRESENT VALUE OF OBLIGATION AT START OF PERIOD 3,814 3,073Gross present value of obligation at start of period 3,884 3,151Fair value of surplus assets at start of period (70) (78)Service cost for the period 117 115Expense arising on discounting of the obligation 166 144Effect of plan amendments 192 122Effect of plan curtailments or settlements (80) (17)Net actuarial gains and losses (117) (12)Contributions by plan participants 11 1Benefi ts paid (205) (183)Effect of movements in exchange rates (120) (55)Effect of changes in scope of consolidation 222 700Other movements (21) (74)PRESENT VALUE OF OBLIGATION AT END OF PERIOD 3,979 3,814Gross present value of obligation at end of period 4,047 3,884Fair value of surplus assets at end of period (68) (70)12345678910112007 Registration document - BNP PARIBAS 169
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2007REGISTRATION DOCUMENT
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2007 Registration documentThis docu
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1 TheTHE BNP PARIBAS GROUPBNP Parib
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THE BNP PARIBAS GROUP1The Group’s
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1 ShareholderTHE BNP PARIBAS GROUPi
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2 BoardCORPORATE GOVERNANCEof Direc
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2 StatutoryCORPORATE GOVERNANCEAudi
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3RISK MANAGEMENT< Contents >3.4 Ris
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3 RiskRISK MANAGEMENTfactorsLIQUIDI
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3 RiskRISK MANAGEMENTfactorsDETERIO
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3 RiskRISK MANAGEMENTmanagement fra
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4 Consolidated2007 REVIEW OF OPERAT
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4 Balance2007 REVIEW OF OPERATIONSs
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2007 REVIEW OF OPERATIONS4 Outlook<
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2007 REVIEW OF OPERATIONS4 OutlookA
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5CONSOLIDATED FINANCIAL STATEMENTS<
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5 ProfitCONSOLIDATED FINANCIAL STAT
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6INFORMATION ON THE PARENT COMPANY
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6 BNPINFORMATION ON THE PARENT COMP
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6 ChangesINFORMATION ON THE PARENT
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6 SubsidiariesINFORMATION ON THE PA
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7 TheSOCIAL AND ENVIRONMENTAL INFOR
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8 DocumentsGENERAL INFORMATIONon di
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8 FoundingGENERAL INFORMATIONdocume
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8 YearGENERAL INFORMATIONended 31 D
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9 StatutorySTATUTORY AUDITORSAudito
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10 PersonPERSON RESPONSIBLE FOR THE
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11TABLE OF CONCORDANCE< Contents >H
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