2007 REGISTRATION DOCUMENT

2007 REVIEW OF OPERATIONSCore business results 4< Contents >SECURITIES SERVICESIn millions of euros 2007 2006 2007/2006Net banking income 1,127 905 +24.5%Operating expenses and depreciation (877) (705) +24.4%Gross operating income 250 200 +25.0%Cost of risk 0 0 nmOperating income 250 200 +25.0%Non-operating items 1 1 +0.0%Pre-tax net income 251 201 +24.9%Cost/income ratio 77.8% 77.9% -0.1 ptAllocated equity (€bn) 0.7 0.6 +19.6%Pre-tax ROE 37% 36% +1 pt123BNP Paribas Securities Services continued to strengthen its leadershipacross Europe. The business reported 24.5% growth in net bankingincome, buoyed by robust trading volumes (up 41% on 2006). Assetsunder custody rose 5.2% to EUR 3,801 billion at 31 December 2007.The strong commercial momentum continued apace, with a largenumber of new mandates awarded on the strength of the division’shigh-quality offering, Assets under administration also continued togrow sharply, up 33.9% year-on-year to EUR 833.8 billion.4CORPORATE AND INVESTMENT BANKING5In millions of euros 2007 2006 2007/2006Net banking income 8,293 8,090 +2.5%Operating expenses and depreciation (4,785) (4,473) +7.0%Gross operating income 3,508 3,617 -3.0%Cost of risk (28) 264 nmOperating income 3,480 3,881 -10.3%Share of earnings of associates 8 10 -20.0%Other non-operating items 89 32 +178.1%Pre-tax net income 3,577 3,923 -8.8%Cost/income ratio 57.7% 55.3% +2.4 ptsAllocated equity (€bn) 11.9 10.1 +17.7%Pre-tax ROE 30% 39% -9 pts678Unlike most of its competitors, the Group’s Corporate and InvestmentBanking arm (CIB) posted record earnings in 2007 in a market hit bythe subprime crisis. This performance, which places CIB as a leadingglobal player in the industry, is attributable to its client-focused businessdevelopment model and effective risk management.Net banking income came in 2.5% higher year-on-year, atEUR 8,293 million. Client business surged 23% on 2006, with a robustperformance throughout the year (fourth-quarter 2007 up 34% on thesame prior-year period). Italy, Asia and emerging countries led the growthgains in client business.Operating expenses moved up 7% over the year on the back of therecruitment drive at key franchises. However, operating expenses anddepreciation shawed satisfactory flexibility, falling 13.2% between thesecond and third quarters and 18.7% between the third and fourthquarters, reflecting adjustments to performance-related pay in line withthe worsening economic climate.Cost of risk came in at a very low EUR 28 million, compared withEUR 264 million in net releases from provisions one year earlier, reflectingCIB’s limited exposure to high-risk assets and the superior quality ofits portfolio.Pre-tax income was down just 8.8% on 2006, at EUR 3,577 million,with positive contributions in the third and fourth quarters of the yeardespite the subprime crisis. Pre-tax return on allocated capital came inat 30%, down 9 points from its record level in 2006.910112007 Registration document - BNP PARIBAS 95