• General Shareholders meetings

    • The Annual General Meeting is held annually in order to present detailed information about the company's performance. The meeting approves the accounts of the previous financial period, fixes the dividend and its conditions of payment. It appoints, re-elects and removes from office the company's directors and statutory auditors and, if necessary, ratifies the cooptations of directors made by the Board. The decisions must be approved by the simple majority of the shareholders present or represented.

       

      The Extraordinary General Meeting

       

      The Extraordinary General Meeting is convened whenever decisions involving a change in the articles of incorporation and, notably, a capital increase or reduction must be made. The decisions must be approved by a two-third majority of the shareholders present or represented.

       

      The Combined Annual General Meeting

       

      This meeting combines both the Annual and the Extraordinary General Meetings at the same date, with the same notification.

    • All shareholders whose shares have been registered in a share account 3 trading days prior to the date of the Meeting may attend on the following express condition:

      - for shareholders owning bearer shares: they must present an admittance card or, alternatively, a certificate stating the ownership of their shares (in order to obtain the admittance card at the entrance to the Meeting),

      - for shareholders owning registered shares: they may attend the Meeting without completing any formalities in particular. However, in order to facilitate their admission and avoid waiting in the reception area outside the meeting room, it is preferable that they complete and return the application form for an admittance card enclosed with their notice to attend the meeting. 
       

      If they attend the Meeting, they will be given, as appropriate:

      - a ballot paper,

      - an electronic device along with its instructions for use. Starting with the Annual General Meeting convened in 1998, the BNP decided to use electronic voting...

    • BNP Paribas provides its shareholders with the possibility to send their voting instructions, request an admission card, appoint or revoke a proxy via Internet before the Combined General Meeting under the following conditions :

       

      If you hold registered shares

       

      You can vote by Internet using the Votaccess system via the following site: https://planetshares.bnpparibas.com

       

      If you hold fully registered shares, you must login to the Planetshares website with your usual login details.

       

      If you hold administered registered shares, you must login to Planetshares using the ID number displayed on the top right-hand side of your voting form. If you no longer have your username and/or password, you can contact us on +33 (0)1 40 14 80 37.

       

      After having logged in, you can access Votaccess by clicking on the “Participating in the General Meeting” icon.

       

      You will be redirected to Votaccess, the online voting website, where you can enter your voting instruction, request an admission card or appoint or revoke a proxy. Furthermore, via the same site, you will be able to access the mandatory General Meeting documents.

       

      If you hold BEARER shares

       

      You must find out whether your custodian uses the Votaccess system and, if applicable, whether this access is subject to special conditions of use.

       

      If your custodian is connected to Votacess, please identify yourself with your usual login details. Then click on the icon that appears on the line corresponding to your BNP Paribas shares and follow the indications shown on the screen in order to access the Votacess site where you will enter your voting instruction, request an admission card or appoint or revoke a proxy. Furthermore, via the same site, you can access the mandatory General Meeting documents.

       

      You can vote via the Internet prior to the Meeting until the day before the event.

       

      Shareholders are nevertheless advised to vote well before this date.

    • Participation procedure

      In order to attend this Meeting in person, be represented or vote by post, your BNP Paribas shares just have to be recorded in your name, whether they are registered or bearer shares, on the third working day before the Meeting.

      You wish to attend the meeting

      if you hold BEARER shares:
      You must request an admission card which is essential to enter the Meeting and vote by:

      -     ticking box A at the top of the voting form;
      -     returning this form as soon as possible to the financial intermediary who manages your share account and who will forward your request by drawing up a participation certificate.


      if you hold REGISTERED shares:
      You can:

      -     request an admission card which will enable you to enter the meeting room more quickly, by returning the voting form in the envelope sent to you, after ticking box A;
      -     or go directly to the entrance desk specially set up for this purpose. Make sure you have proof of identity on you.


      If you do not wish to attend the meeting

      You just have to:

      fill in and sign the voting form;
      and return it:
      -     if you hold bearer shares, to the financial intermediary who manages your share account and who will send the document, along with the participation certificate which he has prepared beforehand;
      -     if you hold registered shares, send it to BNP Paribas Securities Services, in the enclosed envelope.


      Postal votes will only be taken into account if the forms are duly completed and are received by BNP Paribas Securities Services at least one day before the General Meeting at the latest.


      Revoke a proxy by post


      In accordance with article 225-79 of the French Commercial Code, you can revoke the proxy:
      -     if you hold bearer shares, you must send a notice revoking the proxy to the financial intermediary who manages your share account;
      -     if you hold registered shares, a notice revoking the proxy must be sent to BNP Paribas Securities Services — CTS Assemblées Générales — Les Grands Moulins de Pantin — 9, rue du Débarcadère — 93761 Pantin Cedex.


      In order to be taken into account, your instruction must be received by the Service Assemblées Générales of BNP Paribas Securities Services, one day before the General Meeting at the latest.


      Appoint or revoke a proxy by electronic mail


      Please note that you can notify your decision to either appoint or revoke a proxy by electronic mail, in accordance with the provisions of article R225-79 et seq. of the French Commercial Code in accordance with the following procedures:


      -     you must send an email to the following address: paris.bp2s.france.cts.mandats@bnpparibas.com. This email must contain the following information: name of the Company concerned, date of the Meeting, your surname, first name, address and full bank details as well as, if applicable, the surname, first name and address of the proxy. You can also send a scanned version of your voting form, bearing all types of voting instructions, as an attachment to the email address above;
      -     in addition, you must ask your financial intermediary managing your share account to send written confirmation to the Service Assemblées Générales of BNP Paribas Securities Services - CTS Assemblées - Les Grands Moulins de Pantin - 9, rue du Débarcadère – 93761 Pantin Cedex.

      Documents

  • BNP Paribas Share

    • This information can be found on the "Share price" section :

      >>> go to "Share Price"

    • The nominal value of a BNP Paribas share is 2.00 euros.

    • BNP Paribas shares are listed on the Paris Stock Exchange (ISIN code = FR0000131104, eligible for Euronext's Deferred Settlement Service). The shares are also traded on SEAQ International in London, in Milan on the MTA International and on the Frankfurt Stock Exchange.

    • Concerning the first share exchange offer (also accompanied by Contingent Value Rights -Certificats de Valeur Garantie- whose cost price is then deemed to be zero -) which ended on August 6, 1999, the starting price of the BNP share was 74.4 euros (FRF 488.03) -the opening price on August 23, 1999-, equal to an exchange value for the Paribas share of 107,88 euros (or FRF 707,65).


       

      Concerning the Simplified Offer ended October 21, 1999, the price adopted for the BNP share was 85 euros (FRF 557.56) -the opening price on November 4, 1999- equal to a transfer value of the Paribas share fixed at 123.25 euros (FRF 808.47).

  • Individual shareholders

    • Payment of the dividend

      The Annual Meeting, pursuant to the recommendation of the Board of Directors, set up the terms and conditions governing the payment of the dividend. The dividend may be paid in cash or with an option to receive payment in the form of additional shares. The option must be exercised, generally, within a period of three weeks after the cutting off of the coupon. The formalities are completed with the financial intermediaries authorized to pay the dividend.

       

      Case of the dividend paid with additional shares

      The new shares covered by this option bear interest from January 1st of the current year, and are issued at a price equal to at least 90% of the average of the first prices quoted during the twenty stock market sessions preceding the date of the Annual Meeting, less the amount of the dividend. In the event that the dividend due does not correspond to a round number of shares, the shareholder may choose to be paid a balancing cash adjustment or, alternatively, to pay a further amount allowing him to acquire an additional share.

    • We invite you to follow the news about the Group:

      - by visiting our Corporate websitehttps://group.bnpparibas/;

      - by contacting the Investor Relations Department at the following number : +33 (0) 1 40 14 63 58 or by email: investor.relations@bnpparibas.com;

      - by reading the financial news and events published by the Group;

      - by consulting the documents available on our Website or on request.

    • If you wish to become a BNP Paribas shareholder and own part of its capital we invite you to buy at least one share.

      Shareholders may hold BNP Paribas shares in two different ways: as "registered" shares or as "bearer" shares.

       

      TYPES OF SHAREHOLDING

      BEARER SHARES

      Anyone buying shares in bearer form becomes a BNP Paribas shareholder. Shares held in bearer form are managed by the bank or by the financial institution chosen by the shareholder.

      Shareholders holding BNP Paribas bearer shares can request the conversion of their shares into registered shares (pure or administered form).

       

       

      REGISTERED SHARES

      BNP Paribas Shareholders holding registered shares as at 31 December 2017 are 28,256.

       

      Pure registered shares

      Shareholders holding pure registered shares benefit from:

      • possibility to receive all communication and information published by BNP Paribas to the attention of its shareholders;
      • toll free number (France only): 0800 600 700 to transmit your stock exchange orders and for all information;
      • preferential brokerage fees: 0.30% up to EUR 330,000.00 and 0.20% beyond (with a minimum of EUR 7.00) – pre-tax value;
      • the use of the specific and secure “PlanetShares” website (https://planetshares.bnpparibas.com) allowing you to review the history of your transactions, consult the amount of your disposals and transmit orders(1). You can access the website from your tablet and smartphone;
      • automatic receipt of notice of General Meeting of Shareholders, without establishing a participation certificate;
      • invitation on the internet to the General Meeting of Shareholders (“e-convocation”);
      • no custodial fees.

       

      Holding pure registered shares in an equity savings plan (PEA) is not highly recommended due to the taxation applicable to this account. Shareholders whose BNP Paribas shares are held within a PEA can transfer them to a registered account and choose to hold them as administered registered shares.

       

      Administered registered shares

      BNP Paribas has also developed its shareholding offer of administered registered shares for its institutional shareholders. For those investors, this choice of shareholding combines the main advantages of both bearer and pure registered forms:

      • the shares can be purchased and sold at any time through the shareholder’s usual broker;
      • possibility of holding a single share account, linked to the cash account;
      • systematic invitation to exercise the right of vote and participation to General Meetings of Shareholders, without any intermediaries;
      • invitation to the General Meetings of Shareholders and to exercise the right of vote on the internet (“e-convocation”).

       

      (1) subject to the subscription (free of charge) of a "contract for market benefits"

       

      Documents

      • Others
        2020-01-01

        Summary of shareholding methods

      • Others
        2020-01-01

        Transfer of securities into a direct registered account

    • BNP Paribas publishes an integrated report that gathers the Annual Report and the Corporate Social Responsibility Report. It is available in the “Financial reports” section of the site under “Reports on activity and corporate responsibility (Annual/CSR)”.

    • The Statutory Auditors are:

       

      Deloitte Associés
      Represented by Damien Leurent

       

      PricewaterhouseCoopers Audit
      Represented by Etienne Boris

       

      Mazars
      Represented by Hervé Helias

       

    • Payment of the dividend

      The Annual Meeting, pursuant to the recommendation of the Board of Directors, set up the terms and conditions governing the payment of the dividend. The dividend may be paid in cash or with an option to receive payment in the form of additional shares. The option must be exercised, generally, within a period of three weeks after the cutting off of the coupon. The formalities are completed with the financial intermediaries authorized to pay the dividend.

       

      Case of the dividend paid with additional shares

      The new shares covered by this option bear interest from January 1st of the current year, and are issued at a price equal to at least 90% of the average of the first prices quoted during the twenty stock market sessions preceding the date of the Annual Meeting, less the amount of the dividend. In the event that the dividend due does not correspond to a round number of shares, the shareholder may choose to be paid a balancing cash adjustment or, alternatively, to pay a further amount allowing him to acquire an additional share.

    • BEARER SHARES

      Anyone buying shares in bearer form becomes a BNP Paribas shareholder. Shares held in bearer form are managed by the bank or by the financial institution chosen by the shareholder.

      Shareholders holding BNP Paribas bearer shares can request the conversion of their shares into registered shares (pure or administered form).

       

       

      REGISTERED SHARES

      BNP Paribas Shareholders holding registered shares as at 31 December 2017 are 28,256.

       

      Pure registered shares

      Shareholders holding pure registered shares benefit from:

      • possibility to receive all communication and information published by BNP Paribas to the attention of its shareholders;
      • toll free number (France only): 0800 600 700 to transmit your stock exchange orders and for all information;
      • preferential brokerage fees: 0.30% up to EUR 330,000.00 and 0.20% beyond (with a minimum of EUR 7.00) – pre-tax value;
      • the use of the specific and secure “PlanetShares” website (https://planetshares.bnpparibas.com) allowing you to review the history of your transactions, consult the amount of your disposals and transmit orders(1). You can access the website from your tablet and smartphone;
      • automatic receipt of notice of General Meeting of Shareholders, without establishing a participation certificate;
      • invitation on the internet to the General Meeting of Shareholders (“e-convocation”);
      • no custodial fees.

       

      Holding pure registered shares in an equity savings plan (PEA) is not highly recommended due to the taxation applicable to this account. Shareholders whose BNP Paribas shares are held within a PEA can transfer them to a registered account and choose to hold them as administered registered shares.

       

      Administered registered shares

      BNP Paribas has also developed its shareholding offer of administered registered shares for its institutional shareholders. For those investors, this choice of shareholding combines the main advantages of both bearer and pure registered forms:

      • the shares can be purchased and sold at any time through the shareholder’s usual broker;
      • possibility of holding a single share account, linked to the cash account;
      • systematic invitation to exercise the right of vote and participation to General Meetings of Shareholders, without any intermediaries;
      • invitation to the General Meetings of Shareholders and to exercise the right of vote on the internet (“e-convocation”).

       

      (1) subject to the subscription (free of charge) of a "contract for market benefits"

      Documents

      • Others
        2020-01-01

        Summary of shareholding methods

      • Others
        2020-01-01

        Transfer of securities into a direct registered account

    • A shareholders' Club (le Cercle des actionnaires), set up in 1995, is open to “individual” shareholders holding at least 200 shares.

      As of today it counts more than 63,000 members. Meetings with shareholders are arranged during the year in the main regional cities: the bank's policy is presented by senior executives of BNP Paribas and members of the Top Management.

      >>> Visit the website <<<

    • After its formation in 2000, BNP Paribas decided to create a Bank Shareholder Liaison Committee to help the Group improve communications with its retail shareholders. At the Shareholders’ Meeting that approved the BNP Paribas merger, the Chairman of BNP Paribas initiated the process of appointing members to this committee, which was fully established in late 2000.

      Chaired by Jean Lemierre, it includes ten shareholders who are both geographically and socio-professionally representative of the retail shareholder population, along with two employees or former employees.

      Each member serves a three-year term. When their terms expire, announcements are published in the press and/or in the Group’s various financial publications, inviting new candidates to come forward. Any shareholder can become a candidate.

       

      At its last meeting in September 2018, the members of the Liaison Committee were as follows:

       

      • Jean Lemierre, Chairman;
      • Adrien Besombes, resident of the Indre-et-Loire department;
      • Michel Cassou, resident of the Tarn department;
      • Catherine Drolc, resident of the Herault department;
      • Laurent Dupuy, resident of the Alpes-Maritimes department;
      • Francois Ferrus, resident of Paris;
      • Francoise Mahieu Germain, resident of the Yvelines department;
      • Andre Peron, resident of the Finistere department;
      • Dyna Peter-Ott, resident of the Bas-Rhin department;
      • Jean-Pierre Riou, resident of the Loire-Atlantique department;
      • Jean-Jacques Rohrer, resident of the Hauts-de-Seine department;
      • Philippe Tassin, BNP Paribas employee, resident of the Oise department;
      • Christine Valence, BNP Paribas employee, resident of Ile-de-France.

       

       

      In accordance with the committee’s Charter – i.e. the Internal Rules that all committee members have adopted – the committee met twice in 2018, on 30 March and 21 September, in addition to taking part in the Annual General Meeting and attending the Actionaria shareholder fair.

       

      The main topics of discussion included:

      • BNP Paribas’ ownership structure and changes therein, particularly among retail shareholders;
      • proposals submitted to “Cercle des actionnaires members”;
      • the draft 2016 Registration document and Annual Report;
      • quarterly results;
      • initiatives taken in preparation for the Annual General Meeting;
      • the Bank’s participation in the Actionaria shareholder fair. At this event, several Liaison Committee members explained the role played by the committee to people who visited the Group’s stand;
      • BNP Paribas’ activities in Domestic Markets, presented to the members of the committee by the Deputy COO responsible for this business line;
      • Group Communication, presented to the committee by the Head of this central function;
      • BNP Paribas Cardif;
      • Company Engagement;
      • Cyber security.
    • This coverage must be equivalent to 20% if it is made up of liquid assets, Treasury bills or mutual funds mainly constituted of cash; the percentage is raised to 25% if composed of listed bonds , marketable securities or mutual funds for this latter type of assets. If your coverage is made up of listed shares or mutual funds invested in shares, the guarantee must cover 40% of the planned purchase. In fact, your broker or financial intermediary is free to determine a higher coverage if deemed more appropriate.

  • Taxation of assets

    • (The indications below apply to dividends paid since 2018 (tax return filed in 2019 and tax due in 2019)(1)

       

      Dividends paid to individuals French resident

       

      Dividends received by French resident taxpayers are subject to a flat tax at the rate of 12.8%, plus the additional social security levy at the rate of 17.2%, i.e an overall taxation of 30%. The tax payable is the same regardless of whether the shareholder chooses to be paid in cash or in shares (where the Bank offers this option).

      However, tax payers may opt for taxation at the progressive scale for income tax. This option is global and concerns all the taxpayer's income from investment income.  It is exercised when the tax return is filed.

      In both cases, taxation is levied in two stages:

       

      At the time of payment: a 12.8% advance income tax payment

      When dividends are paid, an advance payment for income tax of 12.8% is deducted at source by the paying agent calculated on the gross amount of the dividends, as well as the additional social security levy at the rate of 17.2%. These deductions are mandatory.

       

      The 12.8% deduction is not applicable if shares are held within an equity savings plan (PEE, PEA, PEA-PME).

       

      Taxpayers whose taxable income is less than EUR 50,000 (in the case of single, divorced or widowed taxpayers) or EUR 75,000 (in the case of taxpayers taxed jointly as a household) may request an exemption from the 12.8% deduction.

       

      An exemption request must be submitted, under the taxpayer's responsibility, no later than 30 November in the year preceding that of the dividend payment.

       

      The year following the payment of dividends: final taxation

       

      - Flat tax
      The 12.8% initial deduction levied at the time of dividend payment becomes a definitive tax.

       

       

      - Option for the taxation at the progressive scale of income tax
      A 40% allowance on the gross dividend is then applicable. The 12.8% deduction operated by the paying agent is chargeable against the tax due on this basis.  Any excess is returned.

       

       

       

      Dividends paid to non French residents

       

      Dividends paid to individuals who do not reside in France are subject to a withholding tax at the 12.8% upper rate.

       

      However, regardless of the beneficiary's place of residence, a 75% withholding tax is levied if dividends are paid in a non-cooperative state or territory.(2)

       

       

      (1) Unlike salaries and wages, this income is not subject to withholding tax at source, which came into force on 1 January 2019

       

      (2) 2018 list of NCST: (this list is updated on a yearly basis): Botswana, Brunei, Guatemala, Marshall Islands, Nauru, Niue and Panama.

    • Capital gains realised by  French resident individuals

       

      The indications below apply to capital gains realised in January 2018 (tax return filed in 2019 and tax due in 2019).

       

      As from 1 January 2018, capital gains on the sale of securities by individuals are subject to the flat tax (PFU) of 12.8% (plus social security contributions at a rate of 17.2%), or on the taxpayer's option to the progressive scale of income tax.

       

      Capital gains (or losses) are calculated by the difference between the sale price and the purchase price.

       

      Losses incurred during the course of a year may exclusively offset capital gains of the same nature taxable in respect of the same year.

       

      In case of a positive balance, the remaining capital gains are reduced, if applicable, by the capital losses incurred in previous years. Indeed, capital losses can be offset against gains of the same type realised during the same year or during the following ten years (but not against total income).

       

      In case of a negative balance, the excess of losses may offset capital gains realised during the following ten years.

       

      For disposals made on or after January 1, 2018, the application of a deduction for the holding period is waived for securities acquired on or after January 1, 2018.

       

      On the contrary, for securities acquired before 1 January 2018 and where the taxpayer exercises the global option for progressive scale taxation, capital gains on disposal are reduced by a proportional allowance under ordinary law.

       

      This allowance does not apply to social security contributions.  Social security contributions therefore remain due on capital gains on disposals before application of the deduction for the holding period.

       

      Allowance for holding period 

      Holding period of securities / Allowance

      At least 2 years and less than 8 years at 50 %

      At least 8 years at 65 %

       

      Details of declaration
      Any net capital gain or loss realised on a disposal of shares must be declared on a special form (no. 2074) enclosed with the income tax return.

      Under certain conditions, and if the taxpayer's financial intermediaries provide details of the realised capital gains or losses, the taxpayer may be exonerated from filing this declaration.

       

       

      Share repurchase
      Share repurchases are taxed under the capital gains regime described above regardless of the procedure used (repurchase for a capital reduction not motivated by losses, repurchase for an allocation to employees or repurchase made as part of a share repurchase program).

       

      Deferred taxation of securities sold

      (As a reminder, the tax implications of public exchange offers made by BNP for Paribas in 1999)

      Although share exchange operations are treated as taxable disposals, French resident shareholders were still able to request a deferral of their tax liability.


      NB: in practice, shareholders who did not exceed the threshold that triggered taxation of capital gains on securities (FRF 50,000 at the time, i.e. EUR 7,622) had no interest in deferring their tax liability.


      For the rest, requesting deferral of tax had the effect of withdrawing the exchange operations from the transfer threshold and deferring taxation of capital gains until they sold the securities received under the swap for a consideration (BNP Paribas shares today, as the merger between BNP and Paribas in 2000 had no impact on the deferral).


      The sale of the securities concerned by the deferred taxation entails the end of the deferral and the corresponding taxation of the capital gain whose taxation was deferred.

       

       

       

       

      Capital gains realised by non French resident individuals

       

      Individuals who do not reside in France are exempted from taxation of capital gains on sales of BNP Paribas shares(1).

       

      (1) Except where the seller is a resident of a non-cooperative state or territory, in which case it will pay 75% tax in France on the capital gain. 2018 list of NCST : (this list is updated on a yearly basis): Botswana, Brunei, Guatemala, Marshall Islands, Nauru, Niue and Panama.

    • A PEA is a special securities account associated with a current account through which individuals resident in France can invest under favourable tax conditions, especially in the securities of companies that have their registered office in France1.

       

      Although the normal lifespan of a PEA is eight years, the tax benefits kick in at the end of the plan's fifth year. The maximum investment in cash is EUR 150,000 per plan (a couple can take out two plans)2.

       

      If BNP Paribas shares are held within a PEA, the dividends can only be paid to the current account linked to the plan.

       

      Provided that no withdrawals have been made before the end of the fifth year, capital gains and dividends are exempt from tax definitively (other than social security contributions, which are calculated each year on the gains realised but paid when the plan is closed).

       

      Moreover, on closing a PEA held for more than five years that is showing a capital loss, under certain conditions this loss can be offset against capital gains on disposals of transferable securities and shares realised during the same year or during the following ten years.

      - Donation of securities held under a PEA

       

      A donation of securities held within a PEA before the end of the fifth year is treated as a withdrawal and thus entails the closure of the plan and the corresponding taxation of the dividends and the capital gains realised during the PEA's lifetime.

       

       

       

      If the donation is made between the sixth and eighth year, it results in the closure of the plan but does not generate an income tax liability (only social security contributions are due).

      If the donation constitutes only a partial withdrawal from the PEA and takes place after the end of the fifth year, it does not result in the closure of the plan, generating only a social security contribution liability.

       

       


       

       

       

       

      (1)The shares of companies that have their registered office in an EU member state, Iceland, Norway or Liechtenstein are also eligible.

      (2)A 2019 “PACTE” statute that will enter into force after the constitutional review will modify certain provisions of the Monetary and Financial Code relating to PEA. In particular, where a holder of a PEA also holds a PEA-PME, the overall maximum investment for both plans will now be EUR 225,000.

       

    • Every fifteen years, donations are eligible for the following1 allowances :

      - EUR 100,000 (per parent and per child) if given to the children or to the parents,

      - EUR 80,724 if given between spouse and between partners in a civil partnership,

      - EUR 15,932 if given between brothers and sisters,

      - EUR 7,967 if given to nephews and nieces,

      - EUR 31,865 if given by grandparents to their grandchildren,

      - EUR 5,310 if given by great-grandparents to their great-grandchildren.

       

      Physically or mentally disabled persons qualify for an additional allowance of EUR 159,325.

       

      If a tax deferral related to securities transferred for no consideration (donation or inheritance), the deferred capital gain is exempt from tax.

       

      (1) In addition to these allowances, gifts of sums of money to a child, grandchild or great-grandchild, or if there are no such descendants, to a nephew or niece or, by representation, a grand-nephew or grand-niece (if there are several grand-nephews and grand-nieces, the amount of the allowance is split among them), are exempt from gift duties up to a maximum of EUR 31,865, provided that the donor is less than 80 years of age on the date of the donation and the beneficiary is an adult or an emancipated minor.

    • You have the choice of using either:

      - the last known price as of 31 December 2016: 60.55 euros,
      - or the average closing prices of the last thirty market sessions in 2012: 58.17 euros.

  • ADR BNP Paribas

    • A 144A ADR program has been active in the USA since the privatisation of BNP in 1993. This program was upgraded to Level 1 on 17 March 2000, providing wider access to US investors.
      Since the two-for-one share-split on 20 February 2002, 2 ADRs have represented 1 BNP Paribas share.

      For further information, see below.

    • An American Depositary Receipt, or ADR, is a negotiable U.S. security representing ownership of publicly traded shares in a non-U.S. corporation. ADR's are quoted and traded in U.S. dollars in the U.S. securities market. Dividends, when paid, are paid to investors in U.S. dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investors.

    • Our ADR depositary bank and transfer agent is JPMorgan Chase Bank, N.A.. Any inquiries regarding an individual ADR holding can be directed to JPMorgan Chase Bank, N.A

    • The ADR shares are traded OTCQX. The ticker symbol is BNPQY.

    • You can purchase ADRs directly through your broker as a beneficial or 'street name' holder. Beneficial or 'street name' holders usually hold their shares through a bank or brokerage account and are not directly registered on the books of the company.

    • ADRs eliminate many of the obstacles of holding non-U.S. securities since they trade and settle according to U.S. market practices, are quoted and traded in dollars and pay dividends in dollars.

    • You can transfer your foreign shares to JPMorgan's custodian bank in the issuer's home country. Upon receipt of the foreign shares, JPMorgan Chase Bank, N.A. will issue ADRs to you, representing the newly deposited shares. To convert your ADRs back into foreign shares, you should instruct your broker to cancel the ADRs, and provide him or her with complete delivery instructions in the issuer's home country.

    • Direct link to adr.com

    • Yes, information can be sent electronically. Please feel free to register via our "Mailing list/Alert Service" section.

  • Glossary

    • AAA

      The highest financial rating for a company or a State. This rating is attributed by independent financial rating agencies and gives an idea of the solvency of the economic agent in question.

       

      ABS 

      (Asset Backed Securities) These are securities backed by loans grouped within a single structure.

       

      ABSA 

      (Action à Bon de Souscription d’Action) Share with share warrant attached.

       

      ACP 

      Issue principalement de la fusion de la Commission bancaire et de l’Autorité de Contrôle des Assurances et des Mutuelles (ACAM) l’ACP, autorité administrative indépendante adossée à la Banque de France, est chargée de l’agrément et de la surveillance des établissements bancaires et d’assurance dans l’intérêt de leurs clientèles et de la préservation de la stabilité du système financier. Son collège est présidé par le Gouverneur de la Banque de France.

       

      Accretion 

      Reverse of dilution. Accretion is where a corporate action (share buyback or issue of shares in a smaller proportion than the increase in income following a merger or public tender offer, for example) leads to an increase in earnings per share.

       

      ACP

      Resulting mainly from the merger of two French Authorities (“Commission Bancaire” and “Contrôle des Assurances et des Mutuelles”), the ACP is an independent administrative body linked to the Banque de France, in charge of monitoring banking institutions and insurance companies. Its role is to preserve the interests of the customers as well as to look after the global stability of the financial system. Its Board is chaired by Banque de France’s Governor.

       

      ADP 

      (Action à Dividende Prioritaire) Preference share.

       

      ADR 

      (American Depositary Receipt) Negotiable certificates representing one or several shares. Their face value is stated in dollars and interest is also payable in dollars. ADRs allow American investors to buy shares in foreign-based companies that are not quoted on an American Stock Exchange.

       

      AMF 

      (Autorité des Marchés Financiers) French securities regulator created by the 17 July 2003 Financial Security Act, the AMF was formed by the merger of the French stock exchange commission (COB - Commission des Opérations de Bourse), and the financial markets commission (CMF - Conseil des Marchés Financiers). Its duties therefore include those taken over from these two bodies, i.e. drafting financial market regulations, notably stock exchange regulations, ensuring the protection of savings invested in transferable securities, supervising financial disclosures to investors and proposing measures to improve the efficiency of the financial markets, notably at international level. The law also allocated two new responsibilities to the AMF: regulation of investment advisory activities and supervision of rating agencies and financial analysts.

       

      Arbitrage 

      Activity that consists of attempting to profit by price differences on the same or similar financial assets. For example, in the case of a takeover bid, where the predator offers a price that exceeds the price at which the target’s shares are trading.

       

      Attendance fees 

      Fees paid to members of the Board of Directors and of the Supervisory Board. The overall amount of attendance fees is decided by the Ordinary General Meeting of Shareholders and the individual fees paid to members are decided by the Board based on a proposal by the Remuneration Committee.

       

      Attribution right   

      Right to receive bonus shares issued in connection with a capital increase paid up by capitalising retained earnings. Attribution rights are quoted.

       

      Avoir fiscal 

      Dividend tax credit available to individual shareholders resident in France on the dividends distributed by French companies. The purpose of the tax credit is to avoid double taxation of distributed earnings, in the hands of the company and the shareholder. The avoir fiscal granted to individual shareholders resident in France is equal to one half of the net dividend. It is deductible from personal income tax. If the avoir fiscal cannot be set off against taxable income it is refunded by the French Treasury.

    • B2B or BtoB 

      Business to Business: sales of products or services by one company to another.

       

      B2C or BtoC 

      Business to Consumer: sales of products or services by a company to a consumer.

       

      B2E portal 

      Intranet site for Group employees. The home page includes a browser, links to services and a wealth of information concerning the various functions within the Group, practical information for employees and career information.

       

      Back-office 

      Department responsible for all administrative processing.

       

      Balo 

      (Bulletin des Annonces Légales Obligatoires). An official legal newspaper in which are posted, among others, the convening notices for AGMs.

       

      BancWest 

      A retail bank operating in the west of the United States.

       

      Basis Point 

      The equivalent to 0.01%

       

      BGL BNP Paribas

      Luxembourg Retail Banking.

       

      Blue Chip 

      A term given to stocks with large capitalisations and significant liquidity, i.e. generating substantial daily stock market trading volumes.

       

      BNL bc 

      Retail Banking in Italy, acquired in 2006.

       

      BNP Paribas Cardif

      A world leader in personal insurance, has designed, developed and marketed savings and protection products and services to protect individuals, their projects and their assets.

      BNP Paribas Cardif has developed new forms of insurance and extended its offer of protection to health insurance, budget insurance, revenue and means of payment insurance, warranty extensions, nonlife insurance, unemployment insurance, return-to-work assistance, protection of private digital data, etc.

       

      Bond/debenture 

      Debt security whereby the issuer undertakes to pay the lender a fixed capital sum at a specific future date, plus twice-yearly or annual interest payments. Interest payments — generally at fixed rates — may vary over the life of the bond. Debentures are unsecured bond.

       

      Bookrunner  

      Main subscriber or arranger of bond or equity issues, a bookrunner gathers and records the orders of the investors. It generally syndicates the issues to other financial institutions.

       

      BP2S

      BNP Paribas Securities Services: Securities Services (conservation, settlement, system...) of BNP Paribas, in charge of managing the registered shares. BNP Paribas Securities Services is one of the major global players in securitites services and provides integrated solutions for all actors involved in the investment cycle, sell side, buy side and issuers.

       

    • Capital 

      Amount of cash or assets contributed by shareholders, plus any profits, retained earnings or premiums transferred to the capital account. The capital may be increased or reduced during the life of the company.

       

      Capital increase 

      A method of increasing a company’s shareholders’ equity. The capital may be increased by issuing new shares for cash or in exchange for assets, such as shares in another company. Alternatively, it may be increased by capitalising additional paid-in capital, retained earnings or profits and either raising the par value of existing shares or issuing new shares without consideration. Existing shareholders may have a pre-emptive right to subscribe for the new shares or this right may be cancelled. A capital increase may be carried out to give new investors an opportunity to become shareholders. All capital increases must be authorised in advance by the shareholders, in Extraordinary General Meeting.

       

      Capital Markets

      (Security, forex, rates and shares) One component of CIB alongside with financing businesses and advisory activity.

       

      Cash flow 

      Cash generated by operations that can be used to finance investment without raising equity or debt capital.

       

      CB 

      (Convertible Bond ) Bond convertible into the issuer’s shares on terms set at the time of issue.

       

      CDO

      (Collateralised Debt Obligation) A structure used to securitized bonds and other debts.

       

      CDS 

      (Credit Default Swap). The 5 year senior CDS spread (market reference) is the insurance premium which makes it possible to be covered during 5 years against the risk of default of a company. As an exemple, a spread of 100 basis points means that 100 euros must be paid per year to guarantee 10,000 euros of commitments during 5 years.

       

      CECEI 

      Comité des Établissements de Crédit et des Entreprises d’Investissement: Committee headed by the Governor of the Banque de France responsible for monitoring the proper operation of the French financial and banking system.

       

      Cetelem 

      A BNP Paribas subsidiary and leading European consumer credit company.

       

      CIB

      Corporate & Institutional Banking, Corporate & Institutional Banking, a core division of BNP Paribas providing financing, advisory and BNP Paribas Securities Services.

       

      Club d’investissement (Investment club) 

      A French variable capital or joint stock company that manages a portfolio of securities for its members based on a single initial contribution and/or regular contributions. French investment clubs benefit from an advantageous tax treatment of capital gains. All the information necessary for creating and operating an investment club can be obtained on request from the French federation of investment clubs, FFCI (Fédération française des clubs d’investissement), at 39 rue Cambon 75001 Paris.

       

      Co-branding 

      The practice of using two or more brand names to develop and/or promote a product or service.

       

      Collateral 

      A pledge of cash or securities required by an intermediary to secure future transactions carried out by a client. For example, the Deferred Settlement Service requires a mini-mum 20% collateral for cash, French government bonds, and money market funds, and 25% for listed bonds, negotiable debt instruments, and bond funds. The minimum is 40% for listed shares or funds invested primarily in equity. In practice, the intermediary can determine the collateral requirement and raise the percentages if deemed necessary, or ask for an amount equal to the full value of the purchase.

       

      Comité Consultatif des Actionnaires 

      (Shareholder Consultation Committee) A group of individual shareholders selected to advise the company on its communications targeted at individual shareholders. The BNP Paribas Comité Consultatif des Actionnaires was set up in the first half of 2000, at the time of the merger.

       

      Commercial banking MPD 

      Marketing & Product Development.

       

      Common Equity Tier 1

      A ratio that measures the bank’s solvency

      • The numerator reflects the Tier-1 own funds (share capital, premium and reserves)
      • The denominator reflects the average Risk-Weighted Assets.

       

      Consolidated financial statements 

      The consolidated financial statements present the results and financial situation of a group of companies, directly or indirectly controlled by one company (the parent company). Consolidation is said to be “full” for companies that are 50% or more owned by the “parent” company, and by the “equity method” for companies in which the parent company owns between 20% and 50% of the capital. The companies whose accounts are consolidated are included in the Group’s “consolidation scope”, which is presented in the annual report each year. The amount of net income attributable to minority shareholders is deducted from the consolidated net income in order to determine the “net income, group share”, the share of income or loss attributable to the parent company’s shareholders.

       

      Consolidated net income 

      Net income of the Group after deducting the portion of the profits of subsidiaries attributable to minority shareholders.

       

      Core Tier 1 

      Solvency ratio of a bank which takes only into account equity stemming from capital, premiums and reserves, excluding all “hybrids”. Also called “Equity Tier 1”.

       

      Corporate governance 

      Series of principles and recommendations to be followed by the management of listed companies.

       

      Cost/income ratio 

      General expenses/Net banking income. This ratio measures operating efficiency. The lower the ratio, the more efficient the operations.

       

      Cost of risk

      It is expressed as basis point of the average outstanding loans.

       

      Coupon 

      The coupon represents the right of the holder of a security to collect an amount corresponding to the revenue distributed on the security for a given year.

       

      CRDS

      Contribution de Remboursement de la dette Sociale (Special tax levied for paying back the Social Welfare debt).

       

      Crossing of thresholds 

      All investors trading in shares on a regulated market are under the obligation, within five days and in the conditions provided for in Articles L233-7 to L233-14 of the French commercial code, to file a declaration with the AMF (Autorité des Marchés Financiers) if any of the following thresholds are crossed, in terms of capital or voting rights, both up or down, by either the individual investor or those acting in concert: 5%, 10%, 15%, 1/5, 1/4, 1/3, 1/2, 2/3, 90% and 95%. The issuer’s Articles of Association may provide for an obligation to declare for lower thresholds, but these can never be lower than 0.5%. Failure to declare the crossing of a threshold may result in the loss of voting rights. In respect of the 10% and 20% thresholds, the acquirer is under the obligation to declare his intentions over one year with regard to the company (takeover bid, request a seat on the board, etc.).

       

      CSG 

      Contribution Sociale Généralisée (General social contribution).

       

      Custody fee 

      Fee received by a bank or broker to hold and service securities recorded in a securities account. Custody fees are payable annually in advance. They are not refunded if the securities are sold during the year, but no fees are payable on securities deposited during the year until the beginning of the next year.

       

      CVR 

      (Contingent Value Rights Certificate) Financial instrument generally issued in connection with the acquisition of a listed company, guaranteeing the value of the underlying security at a pre-determined date. The CVR entitles the shareholder of the target to receive an amount equal to the positive difference between the offer price and a “reference” price.

       

    • Derivatives

      Contracts whose value is based on the performance of an underlying financial asset, index or other investment, used to hedge or profit from future changes in the value of the underlying.

       

      Dilution

      Impact on the rights attached to a share of the issue of securities (in connection with a capital increase, a merger, a stock-for-stock tender offer or the exercise of rights), assuming that there is no change in the total income of the issuer.

       

      Dividend

      Portion of net profit that the Annual General Meeting decides to distribute to shareholders. The amount of the dividend is recommended by the Board of Directors. It represents the revenue on the share and the amount can vary from one year to the next depending on the company’s results and policy.

       

      DSK Contracts 

      DSK contracts are “contracts invested mainly in shares” whose assets are composed for at least 50% of European Union shares or similar securities and at least 5% invested in venture capital.

       

      Domestic Markets

      Gathers retail banking and services in France (French Retail Banking), in Italy (BNL bc), in Belgium (BNP Paribas Fortis) and in Luxembourg (BGL BNP Paribas) and three specialised businesses: Arval, Leasing Solutions and Personal Investors.

    • EONIA 

      Euro OverNight Index Average.

       

      EUREX 

      A derivatives market.

       

      EURIBOR 

      (EURopean InterBank Offered Rate) he most commonly used money-market rate in the eurozone.

       

      EUROCLEAR

      Formerly Sicovam. Clearing house for securities transactions.

       

      Europe Méditerrannée

      One of the 6 operational entities of the International Retail Banking business line present in the Mediterranean area, in the Gulf and in Central and Eastern Europe.

       

      EVA

      (Economic Value Added) Difference between a company’s operating profit and the weighted average cost of the capital employed in operating the company.

       

      FCP 

      (Fonds Commun de Placement) Fund invested in stocks, bonds and/or money-market securities. A FCP is similar to a SICAV, but is not a separate legal entity. FCPs are generally smaller than SICAVs and are easier to manage. They are subject to less restrictive regulations and can be more specialised.

       

      FCPE 

      (Fonds Commun de Placement d’Entreprise) Company investment fund.

       

      Financial analyst 

      A financial analyst works either for banks or brokers (sell-side analyst) or for the investors (buy-side analyst). His task is to identify investment opportunities in respect of the companies he analyses and to issue a recommendation (buy, sell, etc.) and set a target price.

       

      Findomestic

      Subsidiary of BNP Paribas Personal Finance, leader in consumer finance in Italy.

       

      FRB   

      French Retail Banking.

       

      Free Cash Flow 

      Cash available after financing operations and investments, available to pay down debt.

       

      Free float 

      The amount of capital which is not under the control of stable shareholders. In other words, capital that can be freely bought and sold and is therefore available to investors, excluding for example shares held by the State, or shares that are subject to shareholders’ pacts and so on. On 1 December 2003, the stocks that make up the CAC 40 index became weighted according to their free fl oats, as opposed to their market capitalisations. This change was born out of a desire to be consistent with the major world market indexes which already function in this manner, and to ensure greater comparability between industries and shares. BNP Paribas has a free fl oat of 95% – one of the highest on the Paris stock market.

    • Gain/loss on securities 

      Positive/negative difference between the sale price of a security and the purchase price.

       

      Goodwill   

      Difference between the cost of shares and the Group’s equity in the fair value of the underlying net assets.

       

      Hedge Funds

      Funds that take both long and short positions, use leverage and derivatives and invest in many markets.

       

      Hello bank!

      The digital bank of BNP Paribas.

       

      IAS 

      International Accounting Standards.

       

      IFRS 

      International Financial Reporting Standards.

       

      IFS 

      International Financial Services gathers International Retail Banking (Retail Banking beyond the Euro-zone), Personal Finance (in particular Cetelem), BNP Paribas Cardif (Insurance) and 3 specialised business lines: Wealth and Asset Management (private banking, asset management and real estate services).

       

      IFU 

      (Imprimé Fiscal Unique) French tax return issued by a bank or broker, listing all the securities transactions carried out on behalf of the taxpayer and all the coupon payments made to the tax payer.

       

      Institutional investor 

      Financial institution which, by definition or by virtue of its articles of association, is required to hold a certain proportion of its assets in stocks and shares. Examples include insurance companies and pension funds.

       

      Investment club 

      A variable- or split-capital company, which enables its members to jointly manage a portfolio of marketable securities formed from an initial investment and/or regular capital contributions. Clubs benefit from a favourable regime in respect of capital gains tax. The FNACI (national Federation of Investment Clubs), which is located at 39, rue Cambon, 75001 Paris, provides on request all the information required for the launching and smooth running of these clubs.

       

      Investment Solutions 

      A BNP Paribas division comprising six businesses: Asset Management, Insurance, Private Banking, Online Savings and Trading, Securities Services, and Real Estate.

       

      IRB 

      International Retail Banking, our network of retail banks and specialized financial services located around the world.

       

      ISIN Code 

      The new identification number for securities listed on the stock market. The ISIN code replaces the well-known Sicovam code which had since become the Euroclear code. On 30 June 2004, Euronext Paris put an end to its existing system for identifying securities and replaced it with a system that uses ISIN codes. Having already been adopted by a number of European stock markets including Amsterdam, Brussels, Lisbon and Frankfurt, the new system gives a unique identity to each share and therefore facilita-tes cross-border transactions between investors, primarily by improving harmonisation within Euronext. The ISIN code comprises 12 characters: 2 letters to indicate the issuing country (e.g., FR for France and US for the United States) and 10 figures. BNP Paribas’s ISIN code is FR0000131104.

       

    • LBO 

      Leveraged Buy Out. Company acquisition financed primarily by debt. In practice, a holding company is set up to take on the debt used to finance the acquisition of the target. The interest payments due by the holding company are covered by ordinary or exceptional dividends received from the acquired target.

       

      Leverage effect 

      Levering of returns and risk using options, futures or transactions on the deferred settlement market.

       

      Leveraged Finance 

      Financing with leverage effect.

       

      Leverage ratio

      The Tier 1 leverage ratio is calculated by dividing Tier 1 capital by a bank's average total consolidated assets and certain off-balance sheet exposures.

       

      LIFFE 

      London International Financial Futures and Options Exchange.

       

      Liquidation 

      Date on which transactions on the monthly settlement market are unwound. This date is the fifth trading day after the last stock market trading session of the month.

       

      Liquidity 

      Ratio between the volume of shares traded and the total number of shares in issue.

       

      Liquidity ratio

      The 30-day Liquidity Coverage Ratio (LCR) came into force on 1 October 2015 setting the minimum coverage ratio for net cash outflows at 70% in 2016, then 80% in 2017 and 100% in 2018.

       

      LME 

      London Metal Exchange.

       

      M&A 

      Mergers and Acquisitions.

       

      Margin 

      Guarantee deposit required by the intermediary to cover forward transactions carried out by a client. This guarantee can be deposited either in cash or securities. For the deferred settlement market (SRD - Service de Règlement Différé) the minimum margin is 20% if it is in the form of cash, Treasury bills or money market funds, 25% if it is in the form of listed bonds, negotiable debt securities or bond funds, and 40% if it is in the form of listed shares or funds invested mainly in equities. In practice, the margin applied is at the intermediary’s discretion. It can raise the percentages required based on its own assessment and can even request a margin that covers the full price of the purchase.

       

      Market capitalisation 

      Value attributed to a company by the stock market. Market capitalisation corresponds to the share price multiplied by the number of shares outstanding.

       

      Market-maker/Market-Making Contract 

      Market-makers commit to maintaining firm bid and offer prices in a given security by standing ready to buy round lots at publicly-quoted prices. Market-making contracts generally concern mi d-cap stocks and are intended to enhance the stocks’ liquidity. In France, Market-making contracts (contrats d’animation) are entered into between Euronext, the issuer and a securities dealer.

       

      MBS 

      (Mortgage Backed Securities) These are financial securities backed by mortgage loans and grouped within an investment structure.

       

      MONEP

      (Marché d’Options Négociables de Paris) Paris traded options market, including CAC 40 index options and equity options.

       

      Monoliner (or “monoline insurer”)   

      Loan guarantee organisations, also known as credit enhancers, which provide guaranties on bonds issued by third parties in order to get a better rating and consequently pay lower interest rates.

       

      Net banking income   

      The equivalent of turnover for a bank.

       

      NYSE-Euronext Paris 

      Gathers the functions of negotiation on Paris Stock Exchange. For this reason, this company has inter alia the role of setting up the rules prevailing on the market (which will have to be approved by the AMF later on), to decide to admit or not issuers, and to manage all the necessary technology.

       

    • OAT 

      (Obligation Assimilable du Trésor) French government bonds.

       

      OBSA 

      (Obligation à Bon de Souscription d’Action) Bond with share warrant attached.

       

      OBSO 

      (Obligation à Bon de Souscription d’Obligation) Bond with bond warrant attached.

       

      OCEANE

      (Obligation Convertible En Actions Nouvelles ou Existantes) Bond convertible for new shares or exchangeable for existing shares of the issuer.

       

      OECD

      Organisation for Economic Co-operation and Development. http://www.oecd.org
      The following twenty countries are members: Australia; Austria; Belgium; Canada; Chile; Czech Republic; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Iceland; Ireland; Israel; Italy; Japan; South Korea; Luxembourg; Mexico; Netherlands; New Zealand; Norway; Poland; Portugal; Slovakia; Slovenia; Spain; Sweden; Switzerland; Turkey; United Kingdom; United States.

       

      Offres publiques 

      Les offres publiques permettent de prendre le contrôle de sociétés cotées (OPA ou OPE) ou, pour les actionnaires de sociétés cotées très largement contrôlées, de demander leur retrait de la cote (OPR et retrait obligatoire).

       

      OPA

      (Offre Publique d’Achat) French acronym for a public tender offer for cash.

       

      OPCVM 

      (Organisme de Placement Collectif en Valeurs Mobilières) mainly mutual funds.

       

      OPE

      (Offre Publique d'Échange) French acronym for a public stock-for-stock tender offer.

       

      OPF 

      (Offre à Prix Fixe) French acronym for a public offering of securities at a set price.

       

      OPR 

      (Offre Publique de Retrait) French acronym for a compulsory buyout offer (final stage in a squeeze-out).

       

      OPRA 

      (Offre Publique de Rachat d'Actions) French acronym for an offer to buy out the minority shareholders of a company that is already largely controlled (first stage in a squeeze-out).

       

      Option 

      Contract giving the buyer the right (but not the obligation), to purchase or sell a security at a future date, at a price fixed when the option is written (exercise price), in exchange for a premium paid when the option is purchased. Options to purchase a security are known as calls and options to sell a security are known as puts.

       

      OPV 

      (Offre Publique de Vente) French acronym for a public offering of securities at a set price.

       

      ORA 

      (Obligation Remboursable en Actions) French acronym for equity notes, representing bonds redeemable for shares.

       

      ORANE 

      Obligation Remboursable en Actions ou en Numéraire(Note redeemable into shares or in Cash).

    • P/E 

      Price/Earnings ratio. Ratio between the share price and earnings per share. The p/E serves to determine the multiple of earnings per share represented by the share price.

       

      Par value (nominal or face value) 

      The par value of a share is the portion of capital represented by the share.

       

      PEA 

      (Plan d’Épargne en Actions) French name for personal equity plans. Savings products designed to promote private share ownership, invested in shares of companies that have their headquarters in a European Union country or in units in qualifying unit trusts. Revenues and capital gains are exempt from personal income tax and capital gains tax provided that the savings are left in the plan for at least five years. Investments in PEAs are capped at EUR 132,000 per individual.

       

      PEE

      (Plan d’Épargne Entreprise) French name for employee share ownership plans. Payments into the plan and reinvested interest are exempt from personal income tax provided that they are left in the plan for at least five years (with early withdrawal allowed in certain specific cases). Surrender gains are also exempt from personal income tax.

       

      Personal Finance 

      Part of Retail Banking core business gathering the consumer credit activities of Cetelem and property loans of UCB.

       

      Pre-emptive subscription rights 

      When a company issues shares for cash, each shareholder has a pre-emptive right to subscribe for a number of new shares pro rata to the number of shares already held. The right can be traded on the stock market. Companies can ask the General Meeting to cancel shareholders’ pre-emptive subscription rights to facilitate certain operations or allow the company to open up its capital to new investors.

       

      Preference shares 

      Preference shares are shares that pay dividends at a specified rate and have a preference over ordinary shares in the payment of dividends and the liquidation of assets. They do not carry voting rights.

       

      PNB 

      (Produit Net Bancaire) L’équivalent du chiffre d’affaires pour une banque.

       

      Price guarantee

      When a company acquires control of a listed target, it is required to offer the target’s minority shareholders the opportunity to sell their shares at the same price as that received by the sellers of the controlling interest. The offer must remain open for at least fifteen trading days.

       

      Primary market 

      Market where newly-issued securities are bought and sold.

       

      Prime Brokerage 

      Activity consisting of providing a wide range of services to hedge funds, including financing, securities settlement/delivery, custody, securities lending/borrowing, etc.

       

      Private Equity 

      Investment in the shares of unlisted companies.

       

      Pro forma

      An accounting presentation that enables comparison between two financial years by harmonising variable elements such as exchange rates or changes in the consolidation scope.

       

      Public tender offer 

      Offer to buy shares of a company, usually at a premium above the shares’ market price, for cash or securities or a combination of both. Where only a small proportion of the company’s shares are traded on the market and the offer is followed by a compulsory buyout, the process is known as a “squeeze-out”.

       

      Quorum 

      General Meetings can take place only if there is a quorum. For Ordinary General Meetings, on first call there is a quorum if the shareholders present and represented hold at least 1/4 of the voting rights. There is no quorum requirement on second call. For Extraordinary General Meetings, the quorum corresponds to 1/3 of the voting rights on first call and 1/4 on second call. For Combined Meetings, the quorum requirements depend on whether the resolutions are “ordinary” or “extraordinary”.

       

      Quotation 

      The quotation determines the price of a security on the market at a given point in time. Prices are generally quoted on a continuous basis throughout the day (from 9:00 a.m. to 5:30 p.m.), providing a real-time indication of the prices at which the security concerned is changing hands. Continuous quotation allows market players to closely track market trends. Quotations for securities with a low trading volume are made once a day.

       

      Rating/rating agencies 

      A rating represents an assessment of the default risk on debt securities. The rating awarded to an issuer has a direct impact on the issuer’s borrowing costs. Changes in ratings also have a significant impact on the issuer's share price. The main rating agencies are Standard & poor’s, Moody’s and Fitch.

       

      Registration document 

      The registration document is prepared at the end of each financial year and contains all the legal, economic, financial and accounting information required for a listed company. It is filed and registered with the AMF (Autorité des Marchés Financiers) and published immediately on the AMF’s website.

       

      RELIT 

      Euronext Paris settlement-delivery system.

       

      Relution 

      Inverse de dilution. Opération sur le capital (rachat d’actions par exemple) permettant d’augmenter le bénéfice par action.

       

      Report 

      On the Euronext Paris market, transaction allowing an investor to carry forward a buy or sell position from one deferred settlement date to the next.

       

      Retail Banking 

      A BNP Paribas division comprising French Retail Banking, BNL bc, BancWest, Emerging Markets (now Mediterranean Europe), Personal Finance, and Equipment Solutions.

       

      Roadshow 

      A series of meetings in France and abroad with financial analysts and investors organised by the management of a company to present its activity and results.

       

      ROE 

      (Return on Equity) Return on Equity. Ratio between consolidated net income and consolidated shareholders’ equity.

    • SBF 120 

      Stock market index composed of the stocks included in the CAC 40 index plus the eighty next most active stocks, selected from among the 200 largest market capitalisation.

       

      Secondary market 

      Market where securities are bought and sold subsequent to their issue.

       

      Securitisation   

      This corresponds to the sale by a credit institution of its receivables to an investor in the form of units or shares in a securitisation fund. This enables the credit institution to transfer the risk on its receivables to the investors and to receive cash.

       

      Settlement SFPI/FPIM 

      Monthly date when transactions with deferred settlement (Service de Règlement Différé) are unwound (or extended). This date corresponds to the fifth trading day before the last trading day in the month. Société Fédérale de Participations et d’Investissement/Federale Participatie en InvesteringsMaatschappij: a public interest company acting on behalf of the Belgian government.

       

      SFPI/FPIM 

      Société Fédérale de Participations et d’Investissement/Federale Participatie en InvesteringsMaatschappij: public limited company acting on behalf of the Belgian State.

       

      Share   

      A share is a transferable security representing a portion of the capital of a limited company or a partnership limited by shares. Ownership of shares is evidenced by an entry in the issuer’s share register (registered shares) or in a securities account kept in the holder’s name by a bank, stockbroker or other accredited intermediary (bearer shares). Shares quoted on the stock exchange are also referred to as “equities”.

       

      Share fraction   

      A share fraction corresponds to the difference between the number of shares owned by a shareholder and the closest multiple of the minimum number of old shares required to participate in a transaction such as a share exchange, share subscription, allocation, etc.). Share fractions are traded on a unit basis to obtain the required multiple or the corresponding shares can be sold at the end of the operation and the amounts allocated to the holders concerned.

       

      SICAV 

      (Société d’Investissement à Capital Variable) Variable capital investment company that manages a portfolio of securities on behalf of its shareholders. Shares may be purchased or redeemed at any time. The shares are not listed but their value (corresponding to the company’s net asset value per share) varies each day based on changes in the value of the securities held in the portfolio.

       

      SICOVAM 

      (Société Interprofessionnelle pour la Compensation des Valeurs Mobilières) Now renamed Euroclear France. Organisation responsible for clearing securities trades, centralising all stock market transactions and facilitating the transfer of securities between member institutions.

       

      Systemic taxes

      Taxes on financial activities payable in some European countries, generally based on the bank’s balance sheet.

       

      Solvency Ratio 

      Measure of a company’s ability to meet its medium- and long- term obligations.

       

      Sovereign debt

      Debt issued or guaranteed by a government (or a central bank).

       

      Split 

      The division of the par value of a share, usually carried out to increase its liquidity or make it more accessible to individual investors. The BNP Paribas share underwent a two for one share split on 20 February 2002, bringing the par value from €4 to €2 per share.

       

      SPVT 

      (Spécialiste en Pension des Valeurs du Trésor) Primary dealer in French government bond repos.

       

      SRD 

      (Service de Règlement Différé) French market where the main French and foreign equities are traded. Equities or bonds purchased with deferred settlement are purchased on credit. The buyer is required to settle the purchase price and the seller is required to deliver the securities on the next settlement date, unless one or other of the parties asks for the transaction to be carried over to the next settlement date (report).

       

      SRI 

      Socially Responsible Investment

       

      Subordinated debt

      A debt whose repayment is contingent on the prior repayment of all other secured or unsecured creditors. In exchange for the additional risk, subordinated creditors receive a higher interest rate than other creditors.

       

      Subprime 

      Property loans extended to US households with poor solvency, and often extended without any proof of income. As these loans represent a high risk, they carry high floating interest.

       

      Subscription right   

      Right to participate in a share issue for cash.

       

      Tax allowance 

      Tax allowance for revenues from capital investments. For example, dividend revenues benefit from a proportional allowance of 40% of the revenue distributed plus a personal tax allowance of €3,050 for a married couple taxed jointly and of €1,525 for a single person.

       

      TBB 

      (Taux de Base Bancaire) Interest base rate.

       

      TEB 

      Turk Ekonomi Bankasi: present mostly in Turkey, Turk Ekonomi Bankasi offers its customers (Retail, Corporate and SME) a wide array of financial products and services, including retail and private banking, treasury and capital markets services, and financing.

       

      Tier 1 

      Core equity. The Tier 1 ratio partly guarantees the commitments.

       

      TMO 

      (Taux Mensuel de rendement des emprunts Obligataires) Interest rate corresponding to the monthly bond yield.

       

      TP 

      (Titre Participatif) Participating security.

       

      TPI 

      (Titre au Porteur Identifiable) Procedure allowing issuers to obtain information about the identity of holders of bearer shares from Euroclear.

       

      Trade Center 

      Specialised sales force set up by BNP Paribas to partner its corporate customers’ inter-national development. The Trade Centres offer importers and exporters a wide range of customised services based on the “one-stop-shopping” principle.

       

      Trade Finance

      Financing of international business activities.

       

      Transaction advice 

      Advice note transmitted by the financial intermediary to a client after a stock market order has been executed. It describes the terms and conditions of execution of the order.

       

      Treasury shares 

      Shares held by the issuer. Treasury shares are stripped of voting and dividend rights and are not taken into account in the calculation of earnings per share.

       

      TSDI 

      (Titre Subordonné à Durée Indéterminée) French acronym for perpetual subordinated notes.

       

      TSR 

      (Total Shareholder Return) Total Shareholder Return: corresponding to return on the capital invested by shareholders, including dividends and unrealised gains on the shares.

       

      UCB 

      Union de Crédit pour le Bâtiment; a BNP Paribas subsidiary specialised in retail property loans.

       

      UCITS 

      (Undertaking for Collective Investment in Transferable Securities) Undertaking for Collective Investment in Transferable Securities. Term covering unit trusts and variable capital investment companies.

    • Vesting rights

      The right to receive a revenue from capital invested at a given date:

      • vesting date of a share: date on which the pecuniary rights attached to the share come into effect;
      • vesting date of a loan: date on which the loan begins to bear interest.

       

      Volatilité 

      Volatility is the term used to describe the behaviour of a market or of a stock whose prices fluctuate widely and rapidly.

       

      Voting right 

      Right of a shareholder to vote in person or by proxy at General Meetings.

       

      Warrant 

      Certificate issued on a stand-alone basis or strippable from another security (share, bond) giving the holder the right to acquire securities (share, bond). Warrants issued by financial institutions acting as market-maker give the holder the right to purchase (call warrant) or sell (put warrant) various underlyings (interest rate, index, currency, equities) at a fixed exercise price during a fixed exercise period. Although these warrants constitute options, they cannot be sold short.

       

      Weighted Assets 

      Amount of commitments of a financial institution, with a different factor by type of outstandings, the higher the riskier.

       

      Work Flow 

      Process automation technology allowing the sequential transmission of digital documents and files to the various people responsible for processing the data.

       

      Yield   

      Indicator of the return on an investment, expressed in percent. For shares, the yield corresponds to the ratio between the last dividend paid and the last share price.

       

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