BNP PARIBAS LEASE GROUP S.A. Zweigniederlassung Deutschland

Köln

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

BNP PARIBAS LEASE GROUP S.A.

Nanterre/Frankreich

ANNUAL ACCOUNTS

FINANCIAL YEAR 2023

COMPARATIVE BALANCE SHEETS 2023-2022

(in thousands of euros)

ASSETS

	2023	2022
CASH, CENTRAL BANKS, CCP	7,941	286,335
GOVERNMENT SECURITIES AND ASSIMILATED VALUES	0	0
RECEIVABLES ON CREDIT INSTITUTIONS	250.718	310,144
CUSTOMER TRANSACTIONS	3,199,592	3,127,346
BONDS AND OTHER INCOME SECURITIES	354,973	155,589
SHARES AND OTHER VARIABLE-INCOME SECURITIES	0	0
EQUITY INTERESTS AND OTHER SECURITIES HELD ON A LONG-TERM BASIS	52,580	53,426
SHARES IN AFFILIATED ENTERPRISES	345,587	348,338
LEASING AND RENTAL WITH PURCHASE OPTION	3,543,983	3,401,046
OPERATING LEASE	2,630,329	2,583,460
INTANGIBLE ASSETS	77,298	64,301
TANGIBLE FIXED ASSETS	3.945	7,542
UNPAID SUBSCRIBED CAPITAL	0	0
TREASURY STOCK	0	0
OTHER ASSETS	340,957	286,308
ACCRUALS ACCOUNTS	208,150	185,152
TOTAL ASSETS	11,016,053	10,808,988
LIABILITIES
	2023	2022
CENTRAL BANKS, CCP	0	0
DEBTS TO CREDIT INSTITUTIONS	1,832,411	1,808,628
CUSTOMER TRANSACTIONS	7,451,951	7,607,499
DEBT SECURITIES	297,098	10,000
OTHER LIABILITIES	329,791	297,117
ACCRUALS ACCOUNTS	608,586	556,964
PROVISIONS FOR LIABILITIES AND EXPENSES	26,709	22,485
SUBORDINATED DEBTS	0	0
FUND FOR GENERAL BANKING RISKS	0	0
SHAREHOLDERS' EQUITY EXCLUDING FRBG	469,507	506,295
SUBSCRIBED CAPITAL	285,079	285,079
SHARE PREMIUMS	0	0
RESERVES	38,168	38,168
REVALUATION VARIANCE	0	0
REGULATED PROVISIONS	0	0
INVESTMENT GRANTS	335	173
CARRY FORWARD	67	67
PROFIT FOR THE YEAR	145,857	182,808
INTERIM DIVIDEND	0	0
TOTAL LIABILITIES	11,016,053	10,808,988

COMPARATIVE PROFIT AND LOSS ACCOUNTS 2023-2022

(in thousands of euros)

PROFIT AND LOSS ACCOUNTS	2023	2022
INTEREST AND SIMILAR INCOME	157,458	81,797
INTEREST AND SIMILAR EXPENSES	-224,408	-106,926
INCOME FROM FINANCE LEASES AND SIMILAR TRANSACTIONS	1,633,197	1,463,913
EXPENSES ON CREDIT LEASE AND SIMILAR TRANSACTIONS	-1,402,749	-1,265,979
INCOME FROM OPERATING LEASES	1,382,530	1,335,327
EXPENSES ON OPERATING LEASES	-1,239,514	-1,207,143
INCOME FROM VARIABLE-INCOME SECURITIES	101,414	117,098
COMMISSIONS (INCOME)	41.342	36,811
COMMISSIONS (EXPENSES)	-24,580	-6,826
GAINS OR LOSSES ON TRADING PORTFOLIO TRANSACTIONS	-12,910	-1,465
GAINS OR LOSSES ON TRANSACTIONS IN INVESTMENT PORTFOLIOS AND SIMILAR INSTRUMENTS	6,731	2,175
OTHER BANKING INCOME	279,835	216,018
OTHER BANKING EXPENSES	-96,779	-35,100
NET BANKING INCOME	601,567	629,700
GENERAL OPERATING EXPENSES	-409,767	-392,328
DEPRECIATION, AMORTISATION AND PROVISIONS ON TANGIBLE AND INTANGIBLE FIXED ASSETS	-6,592	-8,406
GROSS OPERATING PROFIT	185,208	228,965
COST OF RISK ON CREDIT TRANSACTIONS	-4,890	-7,647
OPERATING INCOME	180,319	221,318
GAINS OR LOSSES ON FIXED ASSETS	-287	1,522
PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX	180,032	222,839
EXTRAORDINARY RESULT	0	0
CORPORATE INCOME TAX	-34,175	-40,031
GRBF ALLOCATIONS AND PROVISIONS AND REGULATED PROVISIONS	0	0
NET INCOME	145,857	182,808

OFF-BALANCE SHEET COMPARISONS 2023-2022

(in thousands of euros)

	2023	2022
COMMITMENTS GIVEN	181,522	852,883
FINANCING COMMITMENTS	164,681	836,703
GUARANTEE COMMITMENTS	4,638	3,514
SECURITIES COMMITMENTS	0	0
DERIVED PRODUCTS	12,202	12,666
COMMITMENTS RECEIVED	2,061,062	2,047,438
FINANCING COMMITMENTS	64,206	51,500
GUARANTEE COMMITMENTS	1,996,856	1,995,938
SECURITIES COMMITMENTS	0	0

ANNEXES TO THE CORPORATE ACCOUNTS BNP

PARIBAS LEASE GROUP SA

FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

1. HIGHLIGHTS OF THE YEAR

Closing Banque de France accounts:

Following constraints imposed by the Banque de France on the management of deposits required to comply with the Liquidity Coverage Ratio, BPLG S.A closed its accounts with the Banque de France in January 2023. Cash has been invested with BPLS.

To meet the LCR compliance requirement, BPLG S.A. implemented a state securities lending arrangement with BNP PARIBAS SA. The loaned securities are recorded on the asset side of the balance sheet under "Bonds and other fixed-income securities" at their market value, amounting to 285,523 thousand euros, with a corresponding liability of the same amount recorded on the liability side of the balance sheet under "Debts securities."

Sale of bonds convertible into JFL shares:

In June 2023, it was decided to sell the bonds convertible into shares of the Jiangsu Financial Leasing subsidiary, with a gross value of 32.266 thousand euros.

The amount of the capital gain recognized from the sale is recorded under the "Gains or losses on investment portfolios" item for an amount of 6,731 thousand euros.

As a reminder, BPLG SA acquired these bonds in 2021 in order to subscribe to the capital increase of its subsidiary planned for 2022.

Sale building Marseille:

In March 2023, the building at 51 boulevard des Dames in Marseille was sold for EUR 7,000 thousand euros.

The capital gain on the sale is included in "Gains and losses on fixed assets" in the amount of EUR 3,311 thousand euros.

Modification of the irrevocability clause in letters of agreement:

With a view to reducing RWAs, BPLG SA in France has modified the irrevocability clause in the letters of agreement given to our partners and customers.

The removal of the irrevocable nature of the agreement before the commencement of the lease for credit and leasing contracts resulted in the cessation of accounting for the financing commitments given.

2. ACCOUNTING PRINCIPLES AND VALUATION METHODS

The financial statements of BNP PARIBAS LEASE GROUP have been drawn up in accordance with the regulatory provisions applicable to financial institutions, as provided for in NCA regulation no. 2014-07 of 26 November 2014 relating to the accounts of companies in the banking sector. This regulation contains all the regulations that apply to companies in the banking sector.

In accordance with the provisions of ANC regulation no. 2014-07 and the clarifications provided by opinion 2003 G of the Urgent Issues Committee, loans at risk are broken down into doubtful loans and impaired doubtful loans, the latter category mainly comprising loans for which the term has expired and which have been terminated under leasing and operating leases. In addition, no debt is restructured at non-market conditions.

BNP PARIBAS LEASE GROUP SA applies article 2231-2 of regulation no. 2014-07 of the French National Accounting Board (ANC) relating to the methods for calculating impairment losses for doubtful debts and impaired doubtful debts, based on a discounted valuation of recoverable cash flows. In accordance with the regulation, the impact of the discounting was recorded when its result appeared material in relation to the prudently estimated amounts.

The effect of unwinding the discounting is recorded in net banking income. The discounting effect is recorded in cost of risk.

In the context of the moratoria granted during the Covid-19 crisis, a method of smoothing the rents was used for the sole scope of the rescheduled Covid-19 contracts, thus leading to the recognition of accrued income. According to article 512-4 of the French General Chart of Accounts (PCG), the following are attributed to the financial year: income earned in that year, plus any income normally earned in previous years but which, due to error or omission, was not recorded at the time. Income is earned when the services have been performed or the goods have been delivered. In this case, because of its choice to adopt an economic approach to contracts as the principle for recognising income, on the sole scope of contracts rescheduled for COVID-19 reasons, BPLG SA implicitly applies the straight-line method of unequal rents on this scope, since it is the method based on the economic reality of the contracts. Under these conditions, the lessee continues to derive economic benefits from the use of the leased property, which justifies BPLG SA's right to consider that the income from rents not invoiced during the moratorium period is certain and acquired at the balance sheet date. This accrued income is recorded in the balance sheet under the headings "Leasing operations, rental with purchase option" and "Operating lease operations" and in the income statement under the headings "Income from leasing operations and rental with purchase option" and "Income from operating lease operations".

BNP PARIBAS LEASE GROUP SA has 4 branches outside France that are integrated into the eurozone:

―	a branch in Italy;
―	a branch in Spain;
―	a branch in Germany;
―	a branch in Portugal.

Their activity is identical to that of BNP PARIBAS LEASE GROUP SA. Their accounts at 31 December 2023, included in the accounts of BNP PARIBAS LEASE GROUP SA, have been restated in accordance with the standards relating to the regulatory provisions applicable to French banks.

A. CONVERSION OF TRANSACTIONS DENOMINATED IN FOREIGN CURRENCIES

These transactions follow the rules laid down in regulation no. 89.01 of the banking regulation committee (Comité de la Réglementation Bancaire). Assets, liabilities and off-balance sheet items are converted into euros at the exchange rate prevailing at the balance sheet date.

Accrued income and expenses in foreign currencies are converted into euros at the rate of the last day of the month in which they are recorded.

Differences arising from the conversion of foreign currency equity interests and subsidiary shares financed in euros are recorded in the securities account.

Other foreign exchange gains or losses, whether unrealised or final, are recorded at the end of the period in the income statement and constitute the foreign exchange result.

B. RECEIVABLES ON CREDIT INSTITUTIONS

This item corresponds in particular to cash in hand and loans granted to credit institutions. Amounts due from credit institutions are broken down into demand and time deposits.

In the income statement, additions to and reversals of provisions and impairments, losses on irrecoverable loans and recoveries on loans written off are grouped together under "Cost of risk". Interest corresponding to the remuneration of the carrying amount of impaired receivables, or to the reversal of the discounting effect, is recorded under "Interest income".

Amounts due from credit institutions are recorded in the balance sheet at their nominal value plus accrued interest not yet due.

C. CUSTOMER TRANSACTIONS

Amounts due from customers include loans to financial agents other than credit institutions and are recorded in the balance sheet at their nominal value plus accrued interest not yet due.

Loans granted are broken down between loans deemed sound and loans deemed impaired.

Receivables are monitored using the BNP PARIBAS Group's risk rating system. The rating scale comprises twelve levels: ten covering sound loans and two relating to doubtful and impaired customers.

In accordance with the provisions of article 2221-1 of regulation no. 2014-07 of the French National Accounting Board (ANC), receivables are considered doubtful if:

―	There is a risk that debtors may not be able to meet all or part of their commitments;
―	Credits with maturities of more than three months, or more than six months in the case of credit to local authorities;
―	Credits that are the subject of litigation.

The classification of a claim as doubtful immediately results in the classification of all outstanding amounts and commitments relating to the debtor in the same category.

These loans give rise to the recognition of an impairment loss corresponding to the difference between the gross value of the receivable and the present value of the estimated future cash flows recoverable at the original effective rate of the loan (for fixed-rate loans) or at the last known rate (for variable-rate loans).

Expected future cash flows are estimated in two ways:

―	Manually by debt managers who make a unit valuation of this flow.
―	Statistically for small claims according to market-specific claim thresholds.

The amount of depreciation calculated on a statistical basis is shown in paragraph D "Notes to the balance sheet" of the notes to the financial statements.

When payment of the initial instalments of a credit that has become doubtful has resumed on a regular basis, it may again be classified as healthy.

The following are considered doubtful impaired:

―	Receivables for which the lapse of time has been pronounced;
―	Receivables classified as doubtful for more than one year.

Impairment losses for doubtful receivables covering risks recorded on the balance sheet are deducted from the assets concerned.

In the income statement, additions to and reversals of provisions for impairment, bad debt losses and recoveries on loans written off are included under "Cost of risk".

Interest corresponding to the remuneration of the value of the impaired receivables or the reversal of the discounting effect is recorded in "interest income".

Interest on loans downgraded to doubtful loans is subject to a depreciation equal to 100%.

D. SECURITIES AND FORWARD FINANCIAL INSTRUMENTS

The accounting of securities is described in the provisions of ANC regulation no. 2014-07. Securities are classified in the following categories: trading securities, held-for-sale securities, portfolio activity securities, investment securities, other securities held on a longterm basis, participating interests and shares in affiliated undertakings.

Trading securities

Securities, which are originally acquired or sold with the intention of reselling or repurchasing them in the short term and those held as a result of a market-making activity, are valued individually at their market price.

In 2023, BNP PARIBAS LEASE GROUP SA and BNP PARIBAS SA have set up a government securities borrowing facility. The securities loaned are recorded on the assets side of the balance sheet under "Bonds and other fixed-income securities" at their market value in exchange for a debt of the same amount recorded on the liabilities side of the balance sheet under "Debts securities".

Changes in value contribute to the formation of the result of this portfolio. Securities recorded under trading securities may not be reclassified to another accounting category, and continue to follow the rules for the presentation and valuation of trading securities until they are derecognised from the balance sheet by disposal, full repayment or writing off.

BNP PARIBAS LEASE GROUP SA did not hold any trading securities at 31 December 2023.

Investment securities

These are securities that are not listed in any of the other existing categories. Marketable securities are valued at the lower of acquisition price or probable trading value (stock market price if the securities are listed). They are "shares and other variable-income securities" or "bonds and other fixed-income securities".

Since 2021, BNP PARIBAS LEASE GROUP SA has held investment securities. These investment securities consist of bonds acquired following securitisation, and bonds convertible into shares.

Capital gains or losses on disposals and changes in impairment charges or reversals are recorded under the heading "Gains and losses on investment portfolio transactions" in the profit and loss account under

Investment securities

These are securities acquired with the clear intention of holding them to maturity. Investment securities correspond to negotiable medium-term notes intended to be held on a long-term basis and for which there is financing through permanent and permanently allocated back-to-back resources. These securities are recorded at their nominal value on the subscription date. They are recorded under "Bonds and other fixed-income securities".

BNP PARIBAS LEASE GROUP SA does not hold any investment securities at 31 December 2023.

Portfolio activity securities

Portfolio activity involves investments made on a regular basis with the sole objective of realising capital gains in the medium term, without the intention of investing sustainably in the development of the issuing company's business.

Portfolio securities are individually recorded at the lower of historical cost or value in use. Value in use is determined by taking into account the general outlook for the issuer and the holding period. The value in use of listed securities is mainly determined by reference to the stock market price over a sufficiently long period.

Other long-term investments, participating interests and shares in affiliated undertakings

"Other securities held for the long term" are investments made in the form of securities with the intention of holding them on a long-term basis in order to earn a satisfactory return over the longer or shorter term, without intervening in the management of the companies whose securities are held, but with the intention of fostering the development of lasting professional relationships by creating a special link with the issuing company.

Long-term investments are recorded individually at the lower of cost or value in use. Value in use is determined by reference to a multicriteria valuation method based on available information such as discounted future cash flows, the sum of the parts, the revalued net assets and the commonly used ratios relating to them to assess the profitability and realisation prospects of each line of securities. For listed securities (SIFL and JFL), the value in use is calculated on the basis of the average stock market price over the last six months.

Gains or losses on disposals and movements in impairment expenses or reversals are recorded under "Gains or losses on fixed assets" in the income statement.

Dividends received are recorded in the income statement when received under "Income from variable-income securities".

"Equity interests" and "shares in affiliated companies" comprise investments in which BNP PARIBAS LEASE GROUP SA has significant influence over the administrative bodies of the issuing companies and investments of a strategic nature for the development of its activities. This influence is assumed when the percentage of control is greater than or equal to 10%.

Equity investments are recorded individually at the lower of cost or value in use. Value in use is determined by reference to a multicriteria valuation method based on available information such as discounted future cash flows, the sum of the parts, the revalued net assets and the commonly used ratios relating to them to assess the profitability and realisation prospects of each line of securities.

Gains or losses on disposals and movements in impairment expenses or reversals are recorded under "Gains or losses on fixed assets" in the income statement.

Dividends are recorded under "Income from variable-income securities".

Forward financial instruments

The accounting principles applicable to forward financial instruments and hedging transactions are described in ANC regulation no. 201407.

As part of the securitisation transaction, BPLG S.A. set up two interest rate swaps (IRS) to hedge BPLG's overall interest rate risk arising from the Pixel 2021 transaction.

When derivatives are used in a hedging strategy, the basic principle is symmetry between the recognition of the hedged transaction on the one hand and the effect of the hedge on the other. Thus, the income and expenses of interest rate derivatives are recorded pro rata temporis in the income statement and unrealised gains and losses are not recorded.

In the event of termination of the hedging relationship, the recognition of compensation received or paid on termination or assignment of the derivatives will be prorated over the original residual term of the cancelled contract if the hedge is still economically justified. Otherwise, it will be recorded flat in the income statement.

E. CREDIT LEASE, LEASE WITH PURCHASE OPTION AND OPERATING LEASE

These headings list leased assets net of book depreciation. In accordance with Notice 2006-C of 4 October 2006 clarifying the provisions of Notice 2004-15, the provisions of ANC Regulation 2014-03 on the amortisation and impairment of assets do not apply to finance leases.

Gross value

The gross value of equipment includes all the components of the cost price, the cost of the equipment and acquisition costs.

Amortisation

Leased equipment is depreciated on a straight-line basis over the useful life of the assets. Accumulated depreciation recorded at the end of each financial year is between:

―	the linear minimum (pursuant to the provisions of article 39b of the French general tax code) on the one hand;
―	and the limit of degressivity allowed on the other hand.

Doubtful loans

As in the case of credit transactions, in the case of finance leases and operating leases, receivables monitoring is based on the BNP PARIBAS Group's risk rating system. The rating scale comprises twelve levels: ten covering sound loans and two relating to doubtful and impaired customers.

In accordance with the provisions of article 2221-1 of regulation no. 2014-07 of the French National Accounting Board (ANC), receivables are considered doubtful if:

―	There is a risk that debtors may not be able to meet all or part of their commitments;
―	Contracts with maturities of more than three months, or more than six months for credit to local authorities;
―	Contracts subject to litigation.

The classification of a claim as doubtful immediately results in the classification of all outstanding amounts and commitments relating to the debtor in the same category.

These receivables give rise to the recognition of an impairment loss corresponding to the difference between the gross value of the receivable and the present value at the original effective rate of the contract (for fixed-rate contracts) or at the last known rate (for floating-rate contracts) of the estimated future cash flows recoverable.

Expected future cash flows are measured in two ways:

―	Manually by debt managers who make a unit valuation of this flow;
―	Statistically for small claims according to market-specific claim thresholds.

The amount of impairment calculated on a statistical basis is shown in paragraphs G and H "Notes to the balance sheet" of the notes to the financial statements.

When payment of the original instalments of a leasing or rental agreement that has become doubtful has resumed on a regular basis, it may again be classified as a sound receivable.

The following are considered doubtful impaired:

―	Claims for which the leasing or rental contract has been terminated;
―	Receivables classified as doubtful for more than one year.

Impairment losses for doubtful receivables covering risks recorded on the balance sheet are deducted from the assets concerned.

In the income statement, in accordance with the provisions of ANC no. 2014-07, charges to and reversals of provisions for impairment, losses on irrecoverable receivables and recoveries of amortised receivables are recorded under "Income from leasing transactions or Income from operating leases". The same applies to interest corresponding to the interest on the value of impaired receivables or the reversal of the discounting effect.

Interest included in the lease or rental payments downgraded to doubtful are depreciated by 100%.

Impairment of fixed assets

The amount of impairment to cover potential losses on equipment relating to contracts that have been downgraded to doubtful is calculated as the difference between the estimated sale value (statistical or manual basis) and the net book value at 31 December 2023.

F. FIXED ASSETS

a) Intangible fixed assets

They mainly concern software acquired or created by BNP PARIBAS LEASE GROUP SA and are recorded at acquisition cost (purchase price and incidental expenses, excluding fixed asset acquisition costs) or production cost.

They are depreciated on a straight-line basis over their expected useful life (usually 3 years), not exceeding 5 years.

In 2020, the technical loss generated by the universal transfer of CMV Médiforce's assets to BPLG SA for an amount of EUR 52 million was recorded under Intangible assets.

It results from the difference between the purchase price of the shares, i.e. MEUR 65, and the share of net assets contributed, i.e. MEUR 13. It is fully allocated to the goodwill contributed by CMV Médiforce.

Goodwill acquired or contributed that does not generate cash flows that are largely independent of those obtained from other elements representing the customer base may, in subsequent financial years, not give rise to amortisation or depreciation even if there are no elements (or customers) acquired at the outset, provided that the activity of the company concerned is profitable and that its future cash flows make it possible to demonstrate that the overall original value is still justified.

b) Property, plant and equipment

Buildings:

The tangible fixed assets of BNP PARIBAS LEASE GROUP SA consist entirely of real estate assets used for operating purposes. These assets are intended on a long-term basis to contribute towards the company's activities.

Since 1 January 2005, BNP PARIBAS LEASE GROUP SA has applied the following regulations:

―	CRC regulation 2002-10 on the depreciation and impairment of property, plant and equipment, as specified by CRC regulation 2003-07. This regulation is replaced by ANC n°2014-03
―	CRC regulation 2004-06, which deals with the definition of assets and defines the elements that can or must be included in the acquisition cost of an asset. This regulation is replaced by ANC no. 2014-03.

The valuation method used is the retrospective method. The main options chosen were:

―	capitalisation of acquisition costs and allocation of these costs to the structural component;
―	Incorporation into the structural component of the financial costs incurred during construction and directly attributable to the construction;
―	retaining a zero residual value for all the components of the buildings.

The buildings were broken down on the basis of a historical analysis of the buildings in stock, allowing the following components to be defined:

―	structural work;
―	façade;
―	general and technical installations (IGT);
―	arrangements.

For each component of the buildings, a depreciation period has been defined according to the type of building. Assets are depreciated on a straight-line basis over their estimated useful lives, in accordance with the following matrix:

COMPONENTS	DURATION	QUOTE-PART
Structural work	60 years	50%
Façade	30 years	15%
IGT	20 years	20%
Arrangements	10 years	15%

Other tangible fixed assets:

They are recorded at their acquisition cost (purchase price and incidental expenses excluding fixed asset acquisition costs), at their production cost or at their revalued cost.

They are depreciated on a straight-line or declining balance basis over their probable useful lives:

―	material: 5 years;
―	furniture: 10 years.

No borrowing costs have been allocated to the assets.

G. PROVISIONS

Provisions for liabilities, other than those relating to employee commitments, mainly concern provisions for litigation, fines, tax risks and restructuring.

In accordance with ANC regulation no. 2014-03, provisions are valued at the amount corresponding to the best estimate of the outflow of resources required to settle the obligation, determined as corresponding to the most probable hypothesis.

These liabilities constitute a current legal or implicit obligation of BNP PARIBAS LEASE GROUP SA towards a third party, which is probable or certain to result in an outflow of resources to the benefit of this third party.

Charges to and reversals of provisions are recorded in the income statement on the lines corresponding to the nature of the future expenses covered.

Provisions for retirement, early retirement and similar benefits

The provisions of CNC recommendation 2003-R.01 relating to the rules for recognising and measuring pension and similar benefits (based on actuarial assumptions) were applied in 2005. They seek to harmonise the calculation methods used to determine the provisions set aside in the corporate accounts.

Employee benefits:

The benefits granted to BNP PARIBAS LEASE GROUP SA employees are classified into four categories:

―	Termination indemnities paid in particular in the context of early retirement plans;
―	Short-term benefits such as salaries, annual leave, profit-sharing, participation and matching contributions;
―	Long-term benefits which include paid leave (the time savings account) and bonuses linked to seniority, certain deferred compensation paid in cash;
―	Post-employment benefits mainly comprise, in France, supplementary pension benefits paid by the BNP PARIBAS LEASE GROUP SA pension funds, and end-of-career bonuses, and, in other countries, pension plans, some of which are funded by pension funds.

a) Termination benefits

Termination indemnities result from the advantage granted to staff members when BNP PARIBAS LEASE GROUP SA terminates their employment contract before the legal retirement age or when staff members decide to leave voluntarily in exchange for compensation. Termination benefits due more than twelve months after the balance sheet date are discounted.

b) Short-term benefits

The company recognises an expense when it has used the services rendered by employees in return for the benefits granted to them.

c) Long-term benefits

Long-term benefits are defined as benefits other than post-employment benefits and termination benefits that are not due in full within twelve months after the end of the financial year in which the employees render the related services. These concerns in particular remuneration paid in cash and deferred over more than twelve months, which is provisioned in the accounts for the financial year to which it relates.

d) Post-employment benefits

The post-employment benefits enjoyed by employees of BNP PARIBAS LEASE GROUP SA in France and abroad result from defined contribution plans and defined benefit plans.

The plans qualified as "defined contribution plans", such as the Caisse Nationale d'Assurance Vieillesse, which pays a retirement pension to the French employees of BNP PARIBAS LEASE GROUP SA, as well as national supplementary and inter-professional pension plans, do not represent a commitment for the company and are not subject to any provision. The amount of contributions called during the year is recorded as an expense.

Only plans qualified as "defined benefit plans", i.e. in particular supplementary pension benefits paid by the BNP PARIBAS LEASE GROUP SA pension funds and end-of-career bonuses, represent a commitment on the part of the company that gives rise to valuation and provisioning.

Classification into one of these categories is based on the economic substance of the plan to determine whether or not BNP PARIBAS LEASE GROUP SA is bound by the terms of an agreement or by a constructive obligation to provide the benefits promised to employees.

Defined post-employment benefits are subject to actuarial valuations taking into account demographic and financial assumptions. The provisioned amount of the commitment is determined using the actuarial assumptions adopted by the company and by applying the projected unit credit method. This valuation method takes into account a number of parameters such as demographic assumptions, early departures, salary increases, and discount and inflation rates. The value of any hedging assets is then deducted from the amount of the liability.

The measurement of a plan's benefit obligation and the value of its plan assets can change significantly from one year to the next as a result of changes in actuarial assumptions and result in actuarial gains and losses.

Until 31 December 2012, BNP PARIBAS LEASE GROUP SA applied the so-called "corridor" methodology to recognise actuarial gains and losses on its commitments.

This method allows only the portion of actuarial gains and losses that exceeds whatever is higher out of 10% of the present value of the gross obligation or 10% of the market value of the plan assets at the end of the previous year to be recorded as of the following year and spread over the average remaining working life of the employees.

With effect from 1 January 2013, BNP PARIBAS LEASE GROUP SA applies the French accounting standards authority's recommendation no. 2013-02 of 7 November 2013 on the rules for measuring and recognising pension and similar benefit obligations. Thus, the "corridor" methodology has been abandoned and actuarial gains and losses are now recorded in full.

The consequences of plan amendments relating to past service are recorded in the income statement on a straight-line basis over time until the rights to which the amendments relate have fully vested.

In addition, IFRIC, the committee responsible for interpreting IFRS, has proposed a new interpretation of IAS 19 that modifies the method for calculating end-of-career indemnities by reassessing the vesting period for capped scales after a certain number of years of service. In its new position, adopted by the IASB in June 2021, the IFRIC considers that, from the moment when, on the one hand, no rights are acquired in the event of departure before retirement age and, on the other hand, rights are capped after a certain number of years of seniority (N), it would be the last N years of the employee's career in the company that conferred the rights at the time of departure. The position of the auditors in France is that this decision also has consequences for the measurement of the commitment for scales.

The application of this decision on the current BPLG scales leads to a decrease in the commitment. In addition, the application of IAS 8 leads to a recognition of this impact in reserves net of deferred tax.

The annual expense recorded in personnel costs in respect of defined benefit plans represents the rights acquired during the period by each employee corresponding to the cost of services rendered, the interest cost of discounting the commitments, the expected return on investments, the amortisation of actuarial gains and losses and past service costs resulting from any plan amendments, as well as the consequences of any plan curtailments and settlements.

At 31 December 2023, they will result in the creation of:

―	Provision for pensions: 2,752 thousand euros
―	Provision for time savings accounts: 6,654 thousand euros

H. DEFERRED TAXES

Since the closing date of 31 December 2015, a deferred tax relating to temporary differences between the accounting result and the tax result is recorded in the corporate accounts.

For the 2023 financial year, the impact of the deferred charge is recorded in the income statement under "Corporate income tax" and amounts to 2,266 thousand euros.

I. NET BANKING INCOME

a) Interest, income and similar expenses

Interest and premiums are recorded in the income statement on a pro rata temporis basis.

Commissions (particularly risk commissions) and similar income on banking transactions, the calculation and collection of which correspond to changes in balance sheet or off-balance sheet outstanding amounts, are considered to be earned on a pro rata temporis basis and are included in these items.

b) Expenses and income on leasing and similar transactions and operating leases

Expenses on finance leases, leases with purchase option and operating leases correspond to the industrial depreciation allowed by the tax authorities. Also included are book losses on the disposal of equipment at the end of the contract and provisions for depreciation of temporarily unleased fixed assets (ITNL).

Income from finance leases, lease-purchase agreements and operating leases records accrued rental income, adjusted for rental income received in advance or rental income receivable at the end of the financial year and increased by the accrued portion of subsidies (borne by equipment suppliers).

For contracts rescheduled for Covid-19 reasons, the method of smoothing rents over the remaining term of the contracts was applied, generating accrued income of MEUR 34.

In addition, there are book gains on the disposal of equipment at the end of the lease term, indemnities payable on terminated contracts for their positive or negative variation compared to the previous year, as well as administrative expenses and the cost of risk.

c) Commissions (expenses and income)

This item mainly includes factoring commissions (recorded as soon as they are earned) and the provision of financial services to third parties.

J. GENERAL OPERATING EXPENSES

The profit-sharing agreement signed on 28 June 2021 between the management of BNP PARIBAS LEASE GROUP SA and employee representatives gave rise to a provision of 6,825 thousand euros in 2023, while a provision of 5,689 thousand euros was set aside for employee profit-sharing.

Remuneration of intermediaries is included under "Other administrative expenses" for an amount of 5,665 thousand euros in 2023 compared with 5,252 thousand euros in 2022 (including 795 thousand euros for branches in 2023).

3. NOTES TO THE BALANCE SHEET

A) CURRENCY TRANSACTIONS

Assets and liabilities denominated in 'out' currencies on the balance sheet at 31 December 2023 are shown below:

(in thousands of euros)

Assets	France	Branches	TOTAL 2023
Claims on credit institutions	40,015	3,519	43,534
Receivables from customers	0	0	0
Factoring	0	88,228	88,228
Bonds and other fixed-income securities	0	0	0
Other assets	0	157	157

Liabilities	France	Branches	TOTAL 2023
Debts to credit institutions	39,491	87,251	126,742
Amounts owed to customers	0	3,112	3,112
Other liabilities	0	306	306
Accruals accounts	447	1,052	1,499

B) CASH, CENTRAL BANKS, CCP

(in thousands of euros)

	France	Branches	2023	2022
Cash	0	0	0	1
Central banks ⁽¹⁾	0	7,941	7,941	286,335
Total cash, central banks, CCP	0	7,941	7,941	286,335

⁽¹⁾ In 2023, France will no longer hold any deposits with the Banque de France. These deposits have been replaced by securities loans to create the HQLA required to comply with the Liquidity Coverage Ratio (see section E)

C) CLAIMS ON CREDIT INSTITUTIONS

(in thousands of euros)

	France	Branches	2023	2022
Demand receivables	40,264	201,414	241,679	243,991
Related receivables	0	0	0	0
Total on demand	40,264	201,414	241,679	243,991
Day to day loan	0	253	253	253
Other term receivables	8,674	0	8,674	65,701
Related receivables	49	64	113	199
Total forward	8,723	317	9,040	66,153
Doubtful loans	0	0	0	0
Provisions as at 31/12/2022	0	0	0	0
Allocations for the year	0	0	0	0
Reversals for the year	0	0	0	0
Provisions at 31 December 2023	0	0	0	0
Total due from credit institutions	48,987	201,731	250,718	310,144

Schedule to 31 December 2023:

(in thousands of euros)

	Balance sheet total	< 3 months	3 months - 1 year	1 year - 5 years	> 5 years
Term receivables (excluding related receivables)	8,927	8,753	62	99	13

D) CUSTOMER TRANSACTIONS (assets)

(in thousands of euros)

	France				Branches
	Trade receivables	Other customer contests	Ordinary accounts receivable	Factoring	Other customer loans and factoring
Healthy loans	59,676	634,583	0	210,120	2,261,163
Doubtful loans ⁽¹⁾	493	20,136	0	1,788	33,125
Provisions at 12/31/2022 ^{(1) (2)}	0	-18,695	0	-197	-16,166
Charge for the year	0	-1,469	0	-126	-7,464
Reversals for the year	0	4,183	0	6	8,424
Other variations	0	0	0	0	0
Provisions at 31 December 2023 ^{(1) (2)}	0	-15,981	0	-317	-15,206
Net assets	60,169	638,738	0	211,590	2,279,082
Non-allocated values	0	0	0	0	0
Related receivables	499	2,993	0	397	6.123
Total outstanding amounts	60,668	641,731	0	211.987	2,285,205

	TOTAL 2023	TOTAL 2022
Healthy loans	3,165,542	3,100,565
Doubtful loans ⁽¹⁾	55,542	55,353
Provisions at 12/31/2022 ^{(1) (2)}	-35,057	-34,659
Charge for the year	-9,059	- 12,114
Reversals for the year	12,612	11,729
Other variations	0	-13
Provisions at 31 December 2023 ^{(1) (2)}	-31,504	-35,057
Net assets	3,189,580	3,120,860
Non-allocated values	0	0
Related receivables	10.012	6,486
Total outstanding amounts	3,199,592	3,127,346

Receivables written off and recoveries on receivables are included in the cost of risk.

⁽¹⁾ Pursuant to article 2221-1 of ANC regulation no. 2014-07, doubtful loans and provisions break down as follows:

	Gross salary	Provision	Net
Doubtful impaired France	17,695	-14,365	3,330
Doubtful impaired branches	13,892	-10,378	3,514
Total impaired	31,587	-24,743	6,844
Non-impaired doubtful France	4,722	-1,934	2,788
Non-impaired doubtful branches	19,234	-4,828	14,406
Total non-impaired doubtful	23,955	-6,761	17,194
TOTAL	55,542	-31,504	24,038

⁽²⁾ In accordance with the provisions of articles 2231-2 and 2231-4 of ANC regulation no. 2014-07, the amount of the stock of depreciation calculated on a statistical basis amounts to 13,098 k€ for France.

Schedule of performing loans at 31 December 2023:

in thousands of euros

	Balance sheet total	< 3 months	3 months - 1 year	1 year - 5 years	> 5 years
Receivables from customers	3,165,542	1,206,341	1,005,721	910,684	42,796

E) OBLIGATIONS AND OTHER FIXED-INCOME SECURITIES

in thousands of euros

	TOTAL 2023	Of which loaned securities	of which listed securities
Gross value at 12/31/2022	155,239	95,000	0
Acquisitions during the year	0	0	0
Disposals during the year	-32.266		0
Other operations	-55,408	-41,854	0
Gross value at 31 December 2023 ⁽¹⁾	67,565	53,146	0
Provisions as at 31/12/2022	0	0	0
Allocations for the year	0	0	0
Reversals for the year	0	0	0
Other operations	0	0	0
Provisions at 31/12/2023	0	0	0
Total loaned securities 31/12/2022	0	0	0
Securities loaned - Nominal value ⁽²⁾	311,000	0	311,000
Revaluation of securities loaned	-25,477	0	-25,477
Total securities lent 31/12/2023	285,523	0	285,523
Net value at 31/12/2023	353,088	53,146	285,523
Net value at 31/12/2022	155,239	95,000	0

^(1): These are the 'FCT Pixel 2021' bonds amounting to €67.3 million, of which €53.1 million were loaned to BNP PARIBAS.
^(2): These are loans of debt securities that are qualified by the Lender as High-Quality Liquid Assets (HQLA) for regulatory purposes, necessary to meet the Liquidity Coverage Ratio requirements.

in thousands of euros

	Balance at 31/12/2023	Balance at 31/12/2022
Related receivables
Receivables related to FCT Pixel	310	332
Receivables related to JFL convertible bonds	0	17
Related receivables on securities loaned	1,575	0
Total receivables related to investment securities	1,885	349

Securities lending schedule at 31 December 2023:

in thousands of euros

	Balance sheet total	< 3 months	3 months - 1 year	1 year - 5 years	> 5 years
Securities lending	311,000	0	311,000	0	0

F) INVESTMENTS AND OTHER LONG-TERM SECURITIES AND INTERESTS IN LINKED COMPANIES

In thousands of euros

	Net worth	of which listed securities	of which unlisted securities	of which credit institutions
Investments and other long-term investments (France)	52,580	34,101	18,479	158
Shares in affiliated undertakings (France)	345,214	0	345,214	293,070
Shares in affiliated enterprises (branches)	373	0	373	0
Shares in affiliated undertakings (Total)	345,587	0	345,587	293.070
Capital endowments	0	0	0	0
Elimination of intercompany transactions	0	0	0	0
TOTAL 2023	398,166	34,101	364,065	293,228
TOTAL 2022	401,764	34,947	366,817	295,979

Changes in the gross and net values of investments in subsidiaries and affiliates during the year are shown below:

in thousands of euros

	Total	Shares in affiliated undertakings France	Shares in affiliated undertakings branches	Investments and other long-term securities
Gross value at 12/31/2022	481,164	412,024	373	68,767
Acquisitions during the year	0	0	0	0
Disposals during the year	0	0	0	0
Other operations	0	0	0	0
Gross value at 31/12/2023	481,164	412,024	373	68,767
Provisions as at 31/12/2022	-79,400	-64,059	0	-15,341
Allocations of the financial year	-7,904	-7,057	0	-847
Reversals for the year	4,306	4,306	0	0
Other operations	0	0	0	0
Provisions at 31/12/2023	-82,998	-66,810	0	-16,188
Net value at 31/12/2023	398,166	345,214	373	52,580
Net value at 31/12/2022	401,764	347,965	373	53,426

The list of subsidiaries, holdings and main companies in which BNP PARIBAS LEASE GROUP is a partner with unlimited liability is shown in section 6.E.III. The transaction concerns the sale of FORTIS LEASE Portugal SA shares following liquidation.

Concerning provisions, the main movements are:

―	Allocations to SIFL (847 k€), BPLG SPA (6,667 k€) and All in one (391 k€)
―	Write‐backs of BPLG Belgium (2,921 k€) and BNL LEASING SPA (1,385 k€)

G) LEASING, RENTAL WITH PURCHASE OPTION

In thousands of euros

	FIXED ASSETS
	Balance at 31/12/2022	Acquisitions during the year	Disposals of fixed assets during the year	Other variations	Balance at 31/12/2023
Fixed assets under lease
Equipment under finance leases France	1,620,138	372,472	-330,284	0	1,662,326
Assets under finance leases Branches	4,580,379	1,190,529	-642,922	0	5,127,987
Assets under finance leases Branches	0	0	0	0	0
Total fixed assets on lease	6,200,518	1,563,001	-973,206	0	6,790,312
Assets under construction Finance lease
Assets under construction Finance leases France	2,884	0	-1,355	0	1,530
Assets under construction Finance lease Branches	24,509	1,983	-5,967	0	20,525
Total assets under construction Finance lease	27,393	1,983	-7,321	0	22,055
Advance payments to suppliers
Advance payments to suppliers France	223	71	-13	0	281
Advance payments to suppliers Branches	20	56	-60	0	16
Total advance payments to suppliers	243	127	-73	0	297
Total fixed assets leasing	6,228,154	1,565,110	-980,600	0	6,812,664

	DEPRECIATION AND PROVISIONS					Net book value at 31/12/2023
	Balance at 31/12/2022	Allocations for the year	Disposals	Other variations	Balance at 31/12/2023
Fixed assets under lease
Equipment under finance leases France	-950,670	-326,210	302,590	0	-974,290	688,036
Assets under finance leases Branches	-1,986,559	-952,331	552,113	0	-2,386,777	2,741,209
Assets under finance leases Branches	0	0	0	0	0	0
Total fixed assets on lease	-2,937,229	-1,278,541	854,703	0	-3,361,067	3,429,246
Assets under construction Finance lease
Assets under construction Finance leases France	0	0	0	0	0	1,530
Assets under construction Finance lease Branches	0	0	0	0	0	20,525
Total assets under construction Finance lease	0	0	0	0	0	22,055
Advance payments to suppliers
Advance payments to suppliers France	0	0	0	0	0	281
Advance payments to suppliers Branches	0	0	0	0	0	16
Total advance payments to suppliers	0	0	0	0	0	297
Total fixed assets leasing	-2,937,229	-1,278,541	854,703	0	-3,361,067	3,451,597

In thousands of euros

	Balance at 31/12/2022	Allocations for the year	Reversals for the year	Other variations	Balance at 31/12/2023
Doubtful receivables gross value leasing ⁽¹⁾
Doubtful receivables gross value leasing France	43,153				50,682
Doubtful receivables gross value leasing branches	28,459				35,547
Total doubtful receivables gross value leasing ⁽¹⁾	71,613			0	86,230
Provisions for doubtful receivables Leasing ⁽¹⁾
Provisions for doubtful receivables leasing France	-30,129	-10,742	6,968	0	-33,903
Provisions for doubtful receivables leasing branches	-23,966	-14,089	9,117	0	-28,938
Total Provisions for doubtful receivables leasing ⁽¹⁾	-54,095	-24,831	16,086	0	-62,841
Related receivables leasing ⁽³⁾
Related receivables leasing France	14,794				11,029
Related receivables leasing branches	77,810				57,967
Total related receivables leasing	92,604			0	68,997
Total doubtful receivables net book value and related loans leasing	110,121			0	92,385

⁽¹⁾ Pursuant to article 2221-1 of ANC regulation no. 2014-07, doubtful receivables and provisions break down as follows:

	Gross salary	Provision	Net
Impaired leasing France	49,525	-32,292	17,232
Impaired leasing branches	30,104	-25,817	4,287
Total impaired leasing	79,629	-58,109	21,520
Non-impaired leasing France	1,158	-1,611	-453
Non-impaired leasing Branches	5,443	-3,121	2,322
Total non-impaired leasing	6,601	-4,732	1,869
Total leasing	86,230	-62,841	23,389

⁽²⁾ In accordance with the provisions of articles 2231-2 and 2231-4 of ANC regulation no. 2014-07, the amount of the stock of depreciation calculated on a statistical basis amounts to 21,015 k€ for France.
⁽³⁾ Income receivable in respect of rental payments on rescheduled COVID-19 contracts amounts to 31,906 k€, i.e. 3.063 k€ for France and 28,843 k€ for the branches.

H) OPERATING LEASE

In thousands of euros

	FIXED ASSETS
	Balance at 31/12/2022	Acquisitions during the year	Disposals of fixed assets for the year	Other variations	Balance at 31/12/2023
Assets under operating leases
Assets under operating leases France	3,358,651	801,222	‐793,023	0	3,366,850
Property, plant and equipment France	0	0	0	0	0
Assets under operating leases branches	2,139,095	570,156	‐475,406	0	2,233,846
Total assets under operating leases	5,497,746	1,371,379	-1,268,429	0	5,600,695
Assets under construction for operating leases
Assets under construction for operating leases France	104,907	0	‐661	0	104,247
Assets under construction for operating leases branches	21,537	5,837	‐3,412	0	23,963
Total Assets under construction for operating leases	126,444	5,837	‐4,072	0	128,209
Advance payments to suppliers
Advance payments to suppliers France	146	811	‐928	0	28
Advance payments to suppliers Branches	1	185	‐168	0	17
Total advance payments to suppliers	146	995	‐1,096	0	46
Total assets under lease	5,624,337	1,378,211	‐1,273,597	0	5,728,950

	DEPRECIATION AND PROVISIONS					Net book value at 31/12/2023
	Balance at 31/12/2022	Allocations for the year	Amort. on disposals	Other variations	Balance at 31/12/2023
Assets under operating leases
Assets under operating leases France	‐2,013,052	‐724,015	696,794	0	‐2,040,274	1,326,576
Property, plant and equipment France	0	0	0	0	0	0
Assets under operating leases branches	‐1,073,140	‐441,049	402,432	0	‐1,111,757	1,122,089
Total assets under operating leases	‐3,086,192	‐1,165,065	1,099,226	0	‐3,152,030	2,448,665
Assets under construction for operating leases
Assets under construction for operating leases France	0	0	0	0	0	104,247
Assets under construction for operating leases branches	0	0	0	0	0	23,963
Total Assets under construction for operating leases	0	0	0	0	0	128,209
Advance payments to suppliers
Advance payments to suppliers France	0	0	0	0	0	28
Advance payments to suppliers Branches	0	0	0	0	0	17
Total advance payments to suppliers	0	0	0	0	0	46
Total assets under lease	‐3,086,192	‐1,165,065	1,099,226	0	‐3,152,030	2,576,920

In thousands of euros

	Balance at 31/12/2022	Allocations for the financial year	Reversals for the financial year	Other variations	Balance at 31/12/2023
Doubtful assets under lease gross value ⁽¹⁾
Doubtful assets under lease gross value France	59,692			0	72,490
Doubtful assets under lease gross value branches	16,200			0	16,741
Total doubtful assets under lease gross value ⁽¹⁾	75,892			0	89,230
Provisions for doubtful assets under lease ⁽¹⁾
Provisions for doubtful assets under lease France	-37,702	-17,889	12,806	0	-42,785
Provisions for doubtful assets under lease branches	-14,743	-8,422	8,098	0	-15,067
Total provisions for doubtful assets under lease ⁽¹⁾	-52,445	-26,311	20,903	0	-57,852
Related assets under lease ⁽³⁾
Related assets under lease France	12,466			0	10,605
Related assets under lease branches	9,402			0	11,426
Total related assets under lease	21,868			0	22,031
Total doubtful assets net book value and related assets under lease	45,316			0	53,409

⁽¹⁾ Pursuant to article 2221-1 of ANC regulation no. 2014-07, doubtful loans and provisions break down as follows:

	gross	Provision	Net
Impaired operating leases France	64,006	-39,921	24,085
Impaired operating leases branches	14,671	-13,787	883
Total Impaired operating leases	78,677	-53,708	24,968
Non impaired operating leasing France	8,483	-2,864	5,620
Non-impaired operating leases - Branches	2,070	-1,280	790
Total Non-impaired operating leases	10,554	-4,144	6,410
Total operating leases	89,230	-57,852	31,378

⁽²⁾ In accordance with the provisions of articles 2231-2 and 2231-4 of ANC regulation no. 2014-07, the amount of the stock of depreciation calculated on a statistical basis amounts to 31,401 k€ for France.
⁽³⁾ As a result of the rental income on the rescheduled COVID-19 contracts, accrued income amounts to 1,675 k€, i.e. 1,057 k€ for France and 618 k€ for the subsidiaries.

I) TANGIBLE AND INTANGIBLE ASSETS

In thousands of euros

INTANGIBLE ASSETS	OPENING	INCREASE	DECREASE	OTHER CHANGES	CLOSING
Goodwill, Deposits and Trademarks France	1,540	0	0	0	1,540
Lease law and entrance fees France	98	0	0	0	98
Establishment costs France	0	0	0	0	0
Software France	139,960	2,510	-4,538	0	137,932
Technical deficit ⁽¹⁾	51,867	0	0	0	51,867
Intangible assets under construction France	4,051	15,225	0	0	19,276
Lease and entrance fees branches	0	0	0	0	0
Establishment costs branches	0	0	0	0	0
Software branches	4,158	56	-3	0	4,211
Gross value	201,675	17,791	-4,540	0	214,926
Depreciation and provisions for leasehold rights and entrance fees France	-98	0	0	0	-98
Depreciation and provisions for goodwill, Deposits and trademarks France	-540	-87	0	0	-627
Depreciation establishment costs France	0	0	0	0	0
Software amortisation France	-132,658	-4,768	4,658	0	-132,768
Depreciation entrance fee branches	0	0	0	0	0
Depreciation Establishment costs Branches	0	0	0	0	0
Software amortisation branches	-4,077	-56	0	0	-4,133
Depreciation and provisions	-137,374	-4,912	4,658	0	-137,627
Net worth	64,301	12,879	118	0	77.298

⁽¹⁾ The technical loss is due to the merger with CMV Mediforce (2020).

(in thousands of euros)

TANGIBLE FIXED ASSETS	OPENING	INCREASE	DECREASE	OTHER CHANGES	CLOSING
Land France	301	0	-77	0	224
Constructions France: of which	10,833	0	-10,745	0	89
Structural work France	3,065	0	-3,035	0	30
Façade France	1,701	0	-1,700	0	1
Organisation IGT France	5,148	0	-5,092	0	56
Organisation IAS France	919	0	-918	0	1
Apartment Adju France	0	0	0	0	0
Fixtures and fittings France	11,406	0	-4,412	0	6,994
Computer equipment France	37,391	1,080	-1,277	0	37,194
Office equipment and furniture France	837	0	-354	0	484
Transport equipment France	0	0	0	0	0
Machinery and tools France	0	0	0	0	0
Works of art France	24	0	0	0	24
Securities and advances of SCI France	0	0	0	0	0
Property, plant and equipment in progress France	8	0	-8	0	0
Fixtures, fittings and installations branches	521	51	0	0	572
Computer equipment branches	5,656	176	-220	0	5,613
Transport equipment branches	0	0	0	0	0
Office equipment and furniture branches	3,067	113	-78	0	3,102
Gross value	70,045	1,420	-17,171	0	54,295
Depreciation buildings France of which:	-7,601	-1	7,529	0	-72
Structural work France	-1,415	0	1,402	0	-14
Façade France	-1,304	0	1,302	0	-1
Organisation IGT France	-3,962	0	3.906	0	-56
Organisation IAS France	-919	0	918	0	-1
Depreciation arrangements France	-11,275	-32	4,337	0	-6.970
Depreciation computer equipment France	-34,859	-1,277	1,304	0	-34,832
Depreciation office equipment and furniture France	-843	-7	384	0	-467
Depreciation transport equipment France	0	0	0	0	0
Depreciation equipment and tooling France	0	0	0	0	0
Provisions SCI securities and advances France	0	0	0	0	0
Depreciation arrangements branches	-485	-28	0	0	-514
Depreciation computer equipment branches	-5,404	-157	200	0	-5,361
Depreciation transport equipment branches	0	0	0	0	0
Depreciation office material and furniture branches	-2,036	-177	78	0	-2,135
Depreciation and provisions	-62,503	-1,680	13,833	0	-50,350
Net worth	7,542	-260	-3,338	0	3,945

J) OTHER ASSETS

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Other miscellaneous receivables	121,077	32,858	153,935	77,897
Debtor BPLG branches	0	0	0	1,058
Corporate tax	2,995	11,139	14,134	18,535
Deferred tax assets	21,667	44,243	65,911	56,177
Advance payment to suppliers	230	0	230	584
Deposits and guarantees	7,790	63	7,854	8,313
Status of other taxes and duties	25,666	72,685	98,351	121,632
Material stock	0	0	0	0
Provision for inventory write-downs	0	0	0	0
Doubtful miscellaneous accounts receivable	870	1,714	2,583	3,613
Provisions as at 31/12/2022	-575	-927	-1,501	-1,376
Allocations for the financial year	-1,073	-2,013	-3,087	-1,936
Reversals for the year	860	1,688	2,548	1,810
Other variations	0	0	0	0
Provisions at 31/12/2023	-788	-1,253	-2,040	-1,501
TOTAL	179,508	161,449	340,957	286,308

K) ADJUSTMENT ACCOUNTS (ASSETS)

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Accrued income	50,149	2,300	52,449	50,363
Call in risks to be received BNPP	269	0	269	0
Deferred expenses	0	0	0	0
Receivables for collection	8,202	11,875	20,077	11,724
Prepaid expenses	4,005	3,640	7,645	6,298
Other	8,616	119,092	127,709	116,766
TOTAL	71,242	136,908	208,150	185,152

L) CENTRAL BANKS, CCP (LIABILITIES)

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Related debts	0	0	0	0
Total Central banks, CCP	0	0	0	0

M) DEBTS TO CREDIT INSTITUTIONS

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Current accounts and borrowings	10,926	4,303	15,230	52
Related debts	0	26	26	71
Total on demand	10,926	4,329	15,256	123
Borrowing on a daily basis	0	0	0	0
Accounts and borrowings at maturity ⁽¹⁾	62,140	1,741,395	1,803,535	1,803,409
Related debts	111	13,509	13,620	5,096
Total forward	62,251	1,754,905	1,817,156	1,808,505
Total due to credit institutions	73,177	1,759,234	1,832,411	1,808,628

⁽¹⁾ This item includes:
‐ loans taken out by our German branch with BNP PARIBAS Frankfurt branch.
‐ the loan in CNH taken out to cover our bank account debit in Chinese currency for CNH 308,628,000, i.e. an equivalent value in euros of 39,383 k€

Maturity schedule of accounts and borrowings at 31 December 2023:

in thousands of euros

	Balance sheet total	< 3 months	3 months - 1 year	1 year - 5 years	> 5 years
Accounts and borrowings (excluding related debts)	1,803,535	602,975	427,798	680,379	92,384

N) CUSTOMER TRANSACTIONS (liabilities)

There are no transactions with customers on special savings accounts. Other liabilities break down as follows:

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Current accounts	82,082	161,529	243,611	229,462
Related debts	0	0	0	0
Total on demand	82,082	161,529	243,611	229,462
Term accounts ⁽¹⁾	3,541,057	3,656,124	7,197,180	7,373,130
Related debts	1,521	9,638	11,160	4,906
Total forward	3,542,578	3,665,762	7,208,340	7,378,037
Total customer transactions	3,624,661	3,827,291	7,451,951	7,607,499
(1) This item includes:
Borrowings taken out with BPLS	3,118,639	3,193,005	6,311,644	6,347,728
Transfer of receivables / Hire purchase	149,507	463,118	612,625	537,305
Outstanding securitised loans	272,803	0	272,803	487,988
Security deposit	108	0	108	108

Forward customer transactions at 31 December 2023:

in thousands of euros

	Balance sheet total	< 3 months	3 months - 1 year	1 year - 5 years	> 5 years
Term accounts payable (excluding related payables)	7,197,180	757,646	1,901,323	4,458,030	80,181

O) DEBT SECURITIES

In thousands of euros

	TOTAL 2023	TOTAL 2022
Negotiable debt securities ⁽¹⁾	10,000	10,000
Nominal value ⁽²⁾	311,000	0
Revaluation	-25,477	0
Debts on borrowed securities at 31/12/2023	285,523	0
Total debt securities	295,523	10,000

⁽¹⁾ BPLG issued negotiable debt securities (TCN) with a nominal value of ten million euros (EUR 10,000,000) in November 2023, maturing in February 2024.
⁽²⁾ BPLG borrowed trading securities on 15 November 2023 and 12 December 2023 for a nominal value of three hundred and eleven million euros (EUR 311,000,000) maturing on 13 May 2024.

in thousands of euros

	TOTAL 2023	TOTAL 2022
Related debts
Related debts Negotiable debt securities	0	0
Debts related to securities borrowed	1,575	0
Total debt securities	1,575	0

P) OTHER LIABILITIES

in thousands of euros

	France	Branches	Elimination of reciprocal transactions	TOTAL 2023	TOTAL 2022
State and social organisations	32,797	1,778	0	34,574	21,302
Suppliers (leasing and similar)	44,154	86,579	0	130,732	132,070
Customers and third-party purchasers	12,891	17,927	0	30,818	26,057
Miscellaneous suppliers	0	0	0	0	0
Corporate tax	711	19,235	0	19,946	16,228
Deferred tax liabilities	1,916	71,218	0	73,134	61,135
Participation	1,622	0	0	1,622	1,651
Security deposits	136	504	0	640	723
Factoring	0	5,996	0	5,996	7,803
Personnel costs	0	0	0	0	0
Securitisation fund	9,148	0	0	9,148	7,141
Other	3,527	19,654	0	23,180	23,006
TOTAL	106,901	222,890	0	329,791	297,117

Q) ACCRUALS ACCOUNTS (LIABILITIES)

(in thousands of euros)

	France	Branches	TOTAL 2023	TOTAL 2022
Deferred revenue ⁽¹⁾	57,049	174,711	231,760	213,047
Accrued expenses	140,583	60,048	200,631	176,483
Other	769	123,308	124,077	112,718
Collection accounts	18,193	33,925	52,118	54,716
Settlement in progress factoring	0	0	0	0
TOTAL	216,595	391,991	608,586	556,964

⁽¹⁾ Deferred income consists mainly of accruals for lease,
L.O.A. and operating leases for an amount of 48,530 k€ at 31 December 2023 for France and 111,583 k€ for the branches.

R) PROVISIONS

(in thousands of euros)

	Opening	allocation	takeover	use	Other variations	Closing
Provisions for pensions and benefits LT France ⁽¹⁾	7,868	172	0	-273	0	7,767
Provisions for pensions branches	1,638	0	0	0	0	1,638
Provisions for taxes France	0	0	0	0	0	0
Provisions for disputes France	1,385	1,924	-76	-14	0	3,219
Provisions for disputes branches	1,398	424	0	-448	0	1,374
Provisions for doubtful commitments France	0	0	0	0	0	0
Provisions on negative net position Smart Conseil	0	0	0	0	0	0
Provisions for miscellaneous expenses France	9,682	6,963	-1,338	-3,119	0	12,189
Provisions for miscellaneous expenses branches	515	463	0	-456	0	522
TOTAL	22,485	9,947	-1,414	-4,310	0	26,709

S) SHAREHOLDER EQUITY

1) Capital

At 31 December 2023, BNP PARIBAS LEASE GROUP's share capital amounts to EUR 285,079,248 made up of 17,817,453 fully paid-up shares with a par value of EUR 16.

2) Regulated provisions and investment grants

Investment grants are received as part of leasing or rental transactions. These are shown net of depreciation, i.e. EUR 335k.

3) Statement of changes in shareholders' equity

(in thousands of euros)

	Opening	Allocation of result n-1	Net distribution of advance payment	Result	Other movements	Closing
Capital	285,079	0	0	0	0	285,079
Legal reserve	28,508	0	0	0	0	28,508
Other reserves	9,661	0	0	0	0	9,661
Regulated provisions	0	0	0	0	0	0
Investment grants	173	0	0	0	162	335
Carry forward	67	182,808	-182,807	0	0	67
Carry forward branches	0	0	0	0	0	0
Net profit for the year	182,808	-182,808	0	145,857	0	145,857
Interim dividends	0	0	0	0	0	0
Total shareholders' equity	506,295	0	-182,807	145,857	162	469,507

4) Diluted earnings per share and earnings per share

Reduced results with a single adjusted action:

- Profit after tax, employee profit-sharing but before provisions for impairment	145.88
- Income after tax, employee profit-sharing and depreciation and amortisation	8.18
- Dividend allocated to each share (tax credit not included):	8.18

4. NOTES ON OFF-BALANCE SHEET ITEMS

A) OFF-BALANCE SHEET COMMITMENTS

(in thousands of euros)

	France	Branches	TOTAL 2023	TOTAL 2022
Commitments given	77,771	103,751	181,522	852,883
Financing commitments to credit institutions	0	0	0	0
Financing commitments to customers ⁽¹⁾	61,020	103,661	164,681	836,703
Guarantee commitments in favour of credit institutions	4,549	90	4,638	3,514
Guarantee commitments to customers	0	0	0	0
Commitments on derivatives	12,202	0	12,202	12,666
Commitments received	317,890	1,743,172	2,061,062	2,047,438
Financing commitments received from credit institutions	40,000	5,000	45,000	40,000
Financing commitments received from customers	11.506	7,700	19,206	11,500
Guarantee commitments received from credit institutions	17,122	9,487	26,610	20,989
Guarantee commitments received from customers	249,261	1,720,985	1,970,246	1,974,949

⁽¹⁾ Doubtful financing commitments to customers amount to 0 k€ for France and 42 k€ for the branches.

5.NOTES TO THE INCOME STATEMENT

SEGMENT REPORTING

(in thousands of euros)

		Branches
	France	Germany	Italy	Spain	Portugal	TOTAL 2023
NET BANKING INCOME	364,733	62,900	137,471	26,830	9,634	601,567
GENERAL OPERATING EXPENSES	-302,878	-37,444	-54,234	-10,974	-4,239	-409,767

A) INTEREST INCOME AND EXPENSE

In thousands of euros

	TOTAL 2023 Income	TOTAL 2023 Charges	TOTAL 2022 Income	TOTAL 2022 Charges
Transactions with credit institutions in France	2,950	2,229	284	2,786
Operations with credit institutions Branches	3,434	41,968	281	10,921
Customer transactions France	45,018	86,668	17,961	49,719
Customer transactions Branches	92,978	90,359	54,309	43,444
Bonds and other fixed-income securities	13,010	3,185	8,898	56
Allocations to provisions France	10	0	-14	0
Reversals of provisions France	44	0	94	0
Allocations to provisions branches	-160	0	-138	0
Reversals of provisions branches	422	0	377	0
Receivables written off during the year	-247	0	-255	0
TOTAL	157,458	224,408	81,797	106,926

Provisions relating to these transactions for the capital portion are recorded under cost of risk.

B) INCOME AND EXPENSES ON CREDIT LEASE TRANSACTIONS

a) Income from leasing operations

In thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Rents	379,114	1,130,616	1,509,730	1,351,847
Reversal of impairment provisions	5,603	1,276	6,879	6,675
Capital gains on disposals	13,657	13,251	26,908	23,844
Termination payments	12,013	13,425	25,438	22,029
Miscellaneous income	9,587	71,649	81,236	74,271
Allocations to provisions	-10,742	-14.089	-24,831	-22,455
Receivables written off during the year	-4,594	-4,973	-9,567	-14,088
Reversals of provisions	6,968	9,117	16,086	19,474
Recoveries on amortised receivables	854	464	1,318	2,315
TOTAL	412,460	1,220,737	1,633,197	1,463,913

b) Expenses on finance leases

In thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Depreciation and amortisation	318,542	952,281	1,270,822	1,146,704
Allocations to provisions for impairment	7,668	50	7,718	8,049
Capital losses on disposals	16,233	68,940	85,174	76,965
Miscellaneous expenses	5,925	33,109	39,034	34,261
TOTAL	348,368	1,054,380	1,402,749	1,265,979

C) INCOME AND EXPENSES ON OPERATING LEASES

a) Income from operating leases

In thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Rents	729,310	522,887	1,252,197	1,198,100
Reversal of impairment provisions	8,552	433	8,984	12,961
Capital gains on disposals	53,302	22,731	76,033	78,544
Termination payments	22,860	7,417	30,277	28,785
Miscellaneous income	30,010	7,378	37,389	36,346
Allocations to provisions	-17,889	-8,422	-26,311	-26,628
Receivables written off during the year	-11,110	-6,605	-17,716	-30,503
Reversals of provisions	12,806	8,098	20,903	36,030
Recoveries on amortised receivables	174	599	773	1,693
TOTAL	828,015	554,515	1,382,530	1,335,327

b) Expenses on operating leases

In thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Depreciation and amortisation	705,540	441,028	1,146,569	1,114,071
Allocations to provisions for impairment	18,475	21	18,496	8,633
Capital losses on disposals	31,974	31,963	63,937	73,390
Miscellaneous expenses	3,916	6,597	10,513	11,048
TOTAL	759,905	479,609	1,239,514	1,207,143

D) INCOME FROM VARIABLE-INCOME SECURITIES

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Shares in affiliated undertakings ⁽¹⁾	92,440	35	92,475	107,031
Investments and other long-term securities ⁽²⁾	8,939	0	8,939	10,067
Allocations/write-backs	0	0	0	0
TOTAL	101,379	35	101,414	117,098

⁽¹⁾ Shares in affiliated companies 3
STEP IT: 2,800 k€
ARTEGY SAS: 12,032 k€
CNH CAPITAL EUROPE: 25,049 k€
CLAAS FINANCIAL SERVICES: 15,287 k€
APROLIS FINANCE SAS: 2,567 k€
BNP PARIBAS LEASE GROUP
SP.ZO.O.: 2,129 k€
BNP Paribas Lease Group PLC: 23,659 k€
MANITOU FINANCE LTD: 1,150 k€
BNPP Leasing Solutions IFN SA: 2,977 k€
BNL Leasing SPA: 1,881 k€
BNPP Leasing Solutions: 2,908 k€
ALL IN ONE GmBH: 35 k€
⁽²⁾ Investments and other long-term securities
JIANGSU FINANCIAL LEASING CO LTD: 6,059 k€
2HOLDING N&B Oy: 2,864 k€
OSEO SA - BPI France: 15 k€
FORTIS LEASE BELGIUM: 0 k€

E) COMMISSIONS

In thousands of euros

	TOTAL 2023		TOTAL 2022
	Charges	Income	Charges	Income
Transactions with credit institutions in France	0	0	0	0
Transactions with credit institutions branches	0	0	0	0
Transactions with customers in France	2,560	136	2,309	130
Customer transactions Branches	2,076	7,119	2,016	6,391
Transactions factoring France	0	6,215	0	4,939
Transactions factoring branches	0	19,761	0	18,215
Financial services France	6,721	8,110	487	7,134
Financial services Branches	13,223	0	2,013	0
TOTAL	24,580	41,342	6,826	36,811

F) GAINS OR LOSSES ON TRADING PORTFOLIO TRANSACTIONS

In thousands of euros

	TOTAL 2023	TOTAL 2022
On foreign exchange transactions France	14	-30
On SWAP France	-12,889	1,467
On foreign exchange transactions branches	-34	29
TOTAL	-12,910	1,465

G) GAINS OR LOSSES ON INVESTMENT PORTFOLIO TRANSACTIONS

In thousands of euros

	TOTAL 2023	TOTAL 2022
Investment securities	6,731	-2,175
TOTAL	6,731	-2,175

H) OTHER BANK OPERATING INCOME AND EXPENSES

In thousands of euros

	TOTAL 2023		TOTAL 2022
	Income	Charges	Income	Charges
Invoicing of services, mandate, agreement and assistance France	211,624	0	173,062	0
Invoicing of services, mandate, agreement and assistance branches	47,108	0	19,917	0
Other insurance income or expenses France	5,760	1,692	8,545	1,023
Other insurance income or expense Branches	4,338	0	3,655	0
Share of subsidies in the income statement	207	0	105	0
Share of joint ventures France	0	0	0	0
Share of joint ventures branches	0	0	0	41
Income from the sale of receivables France	1,279	0	1,240	0
Income from sales of receivables branches	4,589	0	3,610	0
Other income France	2,827	0	2,815	0
Other income branches	988	0	337	0
Increase/decrease in provisions France	1,115	1,475	2,732	376
Increase/decrease in provisions branches	0	56	0	0
Other expenses France	0	56,473	0	23,836
Other expenses branches	0	37,083	0	9,824
TOTAL	279,835	96,779	216,018	35,100

I) GENERAL OPERATING EXPENSES

1) Personnel costs In

thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Wages and salaries	102,737	30,930	133,667	128,147
Social security expenses	39,760	8,308	48,068	43,526
Pension costs	10,150	184	10,334	9,786
Participation	5,682	0	5,682	5,693
Interest	6,778	0	6,778	5,572
Other related expenses	2,359	315	2,673	3,087
Dot/rep provisions	1,547	-48	1,498	1,708
TOTAL	169,013	39,689	208,701	197,520

The average number of employees in France for the 2023 financial year is 1,511, comprising 360 non-executives and 1,151 executives. The branches employ 476 people (31 managers and 445 non-managers).

Wages and salaries include provisions for paid holiday accrued either in respect of entitlements acquired since the beginning of the reference period in progress at the end of the financial year, or in respect of prior entitlements not yet used.

Social security charges include contributions to the Group's social works.

Pension expenses correspond to the contributions paid to the pension funds and the investment of retirement indemnities with CARDIF. Related expenses include, in particular, personnel training costs and payroll taxes.

2) Other administrative expenses

At the end of the financial year, other administrative expenses amounted to 201,066 k€ compared with 194,808 k€ in 2022 (including 67,201 k€ for the branches in 2023). CAC fees amounted to 371 k€ for France and 158 k€ for the branches. The audits are carried out by Deloitte and PWC.

J) COST OF RISK

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Allocations to provisions	-2,679	-9,317	-11,996	-13,898
Receivables written off during the year	-3,573	-4,301	-7,873	-5,947
Reversals of provisions	5,005	9,689	14,695	13,068
Recoveries on amortised receivables	11	251	262	528
Provisions/reversals for risks	0	23	23	-1,398
TOTAL	-1,235	-3,655	-4,890	-7,647

Provisions recorded under this heading relate solely to the capital portion of customer lending activities. The interest portion of doubtful debts is recorded under income and expenses. Provisions for doubtful debts on leasing and operating leases are recorded under the income or expense headings for these activities.

K) GAINS OR LOSSES ON FIXED ASSETS

in thousands of euros

	Participations and other longterm securities	Shares in affiliated companies	On tangible fixed assets and intangible assets	On impairment of other assets	TOTAL 2023	TOTAL 2022
Capital gains and reversals of provisions France ⁽¹⁾⁽²⁾	0	4,306	3,311	0	7,617	7,723
Capital gains and reversals of provisions branches	0	0	0	0	0	0
Capital losses and Allocations to provisions France ⁽³⁾	-847	-7,058	0	0	-7,904	-6,081
Capital losses and Allocations to provisions branches	0	0	0	0	0	-120
TOTAL	-847	-2,751	3,311	0	-287	1,522

⁽¹⁾ Of which write-back for impairment of BPLG Belgium shares (2,921 k€) and BNL LEASING SPA shares (1,385 k€)
⁽²⁾ Capital gain on the sale of the boulevard des dames building in Marseille
⁽³⁾ Including impairment of BPLG SPA (-6,667 k€), All in One (-391 k€) and SIFL (-847 k€).

L) OUTSTANDING RESULT

Items included under exceptional items reflect the accounting impact of events that are not part of the ordinary activities of BNP Paribas Lease Group SA's various business lines, and whose presentation under other income statement aggregates would have reduced the comparability of the year's transactions with those of the reference years.

At 31/12/2023, BNP Paribas Lease Group had not recorded any exceptional income.

M) CORPORATE TAX

Since 1 January 2011, formation of a fiscal BPLG group composed of Artégy, Same Deutz Fahr finance, and BNP PARIBAS LEASE GROUP as the head of the group.

in thousands of euros

	France	Branches	TOTAL 2023	TOTAL 2022
Corporate tax	-2,285	-29,624	-31,909	-21,482
Deferred tax	5,919	-8,185	-2,266	-18,549
Dot/rep provisions for taxes	0	0	0	0
TOTAL	3,634	-37,808	-34,175	-40,031

6. OTHER DETAILS

A) RELATED COMPANY INFORMATION

in thousands of euros

	Affiliated companies France	Affiliated companies Branches	Elimination of reciprocal transactions	TOTAL 2023
ASSETS
Amounts owed to credit institutions	48,797	189,796		238,593
Receivables from customers	447,232	4,434		451,666
Shares and other variable-yield securities, participating interests and interests in related companies	345,215	348		345,563
Bonds and other fixed-income securities	67,873	0		67,873
Bonds and other variable-income securities	0	0		0
Other assets	93,027	10,988		104,015
Accrued income and prepaid expenses	47,183	76		47,259
LIABILITIES
Debts to credit institutions	73,156	1,714,065		1,787,221
Customer borrowings and deposits	3,120,160	3,202,632		6,322,792
Debt securities	0	0		0
Other liabilities	10,631	8,692		19,322
Accruals and deferred income	26,418	15,719		42,137
OFF-BALANCE SHEET
Financing commitments to credit institutions	0	0		0
Guarantee commitments to credit institutions	11	44		55
Guarantee commitments to customers	0	0		0
Financing commitments received from credit institutions	40,000	5,000		45,000
Financing commitments received from customers	11,506	7,700		19,206
Guarantee commitments received from credit institutions	14,303	3,111		17,414
Guarantee commitments received from customers	0	0		0

B) PROPOSED APPROPRIATION OF NET PROFIT

in euros

Profit for the year	145,856,895.05
Carry forward	67,464.70
Total to be allocated	145,924,359.75

in euros

Special reserve from the released investment provision	0.00
Dividends	145,746,765.54
Interim dividends	0.00
Carry forward	177,594.21
Total allocated	145,924,359.75

C) SOCIAL AND FINANCIAL ACCOUNTING AND CONSOLIDATION

As a credit institution, BNP PARIBAS LEASE GROUP, for the preparation of the consolidated accounts, must by law keep so-called financial accounting records for leasing and rental transactions with or without an option to buy. This accounting system produces a financial result by determining the financial amortisation of each operation on the basis of the expected return on capital employed. The financial method used to calculate the gross financial margin is the 'staggered interest payable' method.

Net financial income is equal to the company's net income, which is substituted, in particular, for depreciation, amortisation, capital gains and losses and provisions for bad debts, their financial equivalents.

The financial reserve is made up of the cumulative differences between the financial results and the corporate results.

In addition, the impact of IFRS needs to be taken into account to determine the amount of consolidation reserves. These impacts mainly comprise IFRS9 stage 1 and stage 2 provisions and the revaluation of securities either through profit or equity.

Finally, a deferred tax liability is recorded when the financial accounting results in the deferral of part of the results over time in relation to the company's results.

a) Reconciliation of net profit to net financial income

in thousands of euros

	TOTAL 2023
Accounting income before tax	180,032
Difference between financial depreciation and social depreciation (fixed assets)	-107,780
Difference between social and financial gains and losses	59,038
Difference between social provisions and financial provisions for doubtful loans	8,506
Difference between LPA and APA and between LAR and AAR	36680
Miscellaneous ⁽¹⁾	31,022
Financial result before tax at 31 December 2023	207,498

⁽¹⁾ Of which +6,281 k€ in respect of the IFRS9 provision

b) Main components of the financial reserve

BNP PARIBAS LEASE GROUP's financial reserve at 31 December 2023 breaks down as follows:

in thousands of euros

	TOTAL 2023
Difference between financial depreciation and social depreciation (leased assets)	353,103
Difference between social provisions and financial provisions for doubtful loans	9,915
Difference between LPA and APA and between LAR and AAR	94,383
Gross financial reserve CB/LS French at 31 December 2023	457,401
Financial reserve on unleased CB/LS assets	0
Gross financial reserve on CB/LS assets	457,401
Provision IFRS9	-62,580
Revaluation of securities	743,953
Other	19,374
Gross financial reserve at 31 December 2023	1,158,148

c) Consolidation

BNP PARIBAS LEASE GROUP is consolidated in the financial statements of BNP PARIBAS SA, whose registered office is located at 16 boulevard des Italiens 75009 Paris.

D) INFORMATION ON FORWARD FINANCIAL INSTRUMENTS

BNP PARIBAS LEASE GROUP has set up forward financial instruments to hedge interest rate fluctuations. The notional amounts of the instruments used are presented below:

in thousands of euros

	France	Branches	TOTAL 2023
Firm over-the-counter transactions
of which interest rate swaps	273,396	0	273,396
of which currency swaps	0	0	0
TOTAL	273,396	0	273,396

E) POST CLOSING EVENTS

On 5 April 2024, the Board of Directors decided to transfer the registered office from 12 rue du Port 92000 Nanterre to 18 rue Baudin 92300 Levallois-Perret with effect from 1 May 2024.

E) Information on subsidiaries, shareholdings and partnership

interests TABLE of SUBSIDIARIES and SHAREHOLDERS

I. DETAILED INFORMATION (subsidiaries whose gross value exceeds 1% of the capital of BNP PARIBAS LEASE GROUP):

(in thousands of euros)

(Art. 247 to 295 of the decree on commercial companies)

COMPANY OR GROUPS OF COMPANIES	CAPITAL (31/12/2023)	NON- CAPITAL EQUITY	SHARE OF CAPITAL HELD IN %	CARRYING AMOUNT OF SECURITIES HELD
				GROSS	NET
A. Subsidiaries (at least 50% of the capital held in companies):
French companies
ARTEGY NANTERRE	1,600	76,518	100.00%	33,200	33,200
SAME DEUTZ FAHR FINANCE NANTERRE	7,378	107	100.00%	14,533	14,533
CLAAS FINANCIAL SERVICE NANTERRE	44,625	59,466	51.01%	22,883	22,883
MGF SAS NANTERRE	4,682	19,302	51.00%	13,085	13,085
CNHI CAPITAL EUROPE NANTERRE	88,482	154,853	50.10%	44,334	44,334
BNP PARIBAS 3 STEP IT (ex ARIUS NANTERRE)	14,000	1,972	51.00%	9,588	9,588
Foreign companies
BPLG PLC Wellington (GB)	390	263,988	100.00%	99,196	99,196
BPLG SP ZO.O Varsovie	3,915	0	100.00%	4,043	4,043
BPLG SA Brussels	3,900	8,317	100.00%	39,845	37,958
BPLG IFN Romania	3,926	26,253	99.95%	7,645	7,645
MANITOU FINANCE LIMITED GB	8,393	4,550	51.00%	5,022	5,022
B. Equity interests (ownership between 10 and 50%)
French companies
Foreign companies
BPLG SPA Milan ⁽¹⁾	65,174	-7,313	26.17%	87,595	23,278
BNL Leasing SPA Milan	2,000	94,807	26.17%	26,795	26,580
2HOLDING N&B OY Finland	3	36,544	13.20%	18,300	18,300

COMPANY OR GROUPS OF COMPANIES	LOANS & ADVANCES GRANTED BY THE COMPANY AND NOT REPAID	AMOUNT OF SURETIES, ENDORSEMENTS AND OTHER COMMITMENTS GIVEN BY THE COMPANY	TURNOVER EXCL. TAX LAST YEAR	RESULT FOR THE LAST FINANCIAL YEAR ENDED (31/12/2023)	DIVIDENDS RECEIVED DURING THE YEAR
A. Subsidiaries (at least 50% of the capital held in companies):
French companies
ARTEGY NANTERRE	0	0	115,695	1,160	12,032
SAME DEUTZ FAHR FINANCE NANTERRE	0	0	29,013	930	0
CLAAS FINANCIAL SERVICE NANTERRE	0	0	383,670	25,744	15,287
MGF SAS NANTERRE	0	0	123,203	2,664	0
CNHI CAPITAL EUROPE NANTERRE	0	0	1,510,844	74,660	25,049
BNP PARIBAS 3 STEP IT (ex ARIUS NANTERRE)	0	0	540,908	4,488	2,800
Foreign companies
BPLG PLC Wellington (GB)	0	0	0	31,289	23,659
BPLG SP ZO.O Varsovie	0	0	0	2,156	2,129
BPLG SA Brussels	0	0	0	552	2,908
BPLG IFN Romania	0	0	0	11,916	2,977
MANITOU FINANCE LIMITED GB	0	0	0	2,659	1,150
B. Equity interests (ownership between 10 and 50%)
French companies
Foreign companies
BPLG SPA Milan ⁽¹⁾	0	0	0	-17,379	0
BNL Leasing SPA Milan	0	0	0	4,757	1,881
2HOLDING N&B OY Finland	0	0	0	14,283	2,864

⁽¹⁾ treated as a subsidiary under banking regulations

II. COMPREHENSIVE INFORMATION

COMPANY OR GROUPS OF COMPANIES	CAPITAL (31/12/2023)	NON CAPITAL EQUITY	SHARE OF CAPITAL HELD IN %	CARRYING AMOUNT OF SECURITIES HELD
				GROSS	NET
A. Subsidiaries not included in paragraph I:
a) French subsidiaries APROLIS				1,710	1,710
b) foreign affiliates				2,923	2.532
B. Investments not included in paragraph I:
a) in the French companies
b) in the foreign companies

COMPANY OR GROUPS OF COMPANIES	LOANS & ADVANCES GRANTED BY THE COMPANY AND NOT REPAID	AMOUNT OF SURETIES, ENDORSEMENTS COMMITMENTS GIVEN BY THE COMPANY	TURNOVER EXCL. TAX LAST YEAR	RESULT FOR THE LAST FINANCIAL YEAR ENDED (31/12/2023)	DIVIDENDS RECEIVED DURING THE YEAR
A. Subsidiaries not included in paragraph I:
a) French subsidiaries APROLIS	0	0			2,567
b) foreign affiliates	0	0			0
B. Investments not included in paragraph I:
a) in the French companies
b) in the foreign companies

III. BNP PARIBAS LEASE GROUP is a partner with unlimited liability in the following companies:

Nil.

Certified true copy

BNP PARIBAS LEASE GROUP

Société Anonyme with capital of EUR 285,079,248
Registered office: 12 Rue du Port - 92000
NANTERRE 632 017 513 RCS NANTERRE

MINUTES OF THE ORDINARY GENERAL
MEETING OF 30 APRIL 2024

On 30 April 2024 at 6.00 pm, the shareholders of BNP Paribas Lease Group met in an Ordinary General Meeting, convened by the Board of Directors by teleconference.

An attendance sheet was drawn up and signed by each member upon entering the meeting.

The meeting was chaired by Beatrice Belorgey, Chairman of the Board of Directors.

Mr Neil Pein, representing BNP Paribas Leasing Solutions SA, the shareholder representing the greatest number of votes and accepting, was appointed scrutineer.

The Statutory Auditors Deloitte et Associes and PricewaterhouseCoopers Audit are absent with apologies.

Mr Peter Van Loon was appointed secretary.

The attendance sheet, certified as accurate by the officers of the meeting, shows that the shareholders present meet the quorum requirements for holding this meeting.

The General Meeting thus able to deliberate is declared to be duly constituted.

The Chairman indicated that the following documents were available to members of the Meeting:

―	the Articles of Association,
―	a copy of the notice of meeting sent to the shareholders and the statutory auditors,
―	the certified attendance sheet and the powers of attorney of the shareholders represented,
―	the management report and the report on corporate governance for the year just ended,
―	the Statutory Auditors' reports,
―	the text of the resolutions submitted to the meeting,
―	the social balance sheet for the year just ended.

The Chairman declares that the legal requirements for informing shareholders have been complied with at this General Meeting.

The General Meeting acknowledges this statement.

The President then reminded the meeting that the agenda was as follows:

―	Reading of the management report and the Statutory Auditors' report and approval of the financial statements for the year just ended
―	Reading of the Statutory Auditors' special report and approval of agreements governed by Article L.225-38 of the Commercial Code
―	Appropriation of earnings
―	Ratification of appointments and renewals of directorships Renewals of directorships
―	Change of Statutory Auditor
―	Non-renewal of the term of office of the alternate Statutory Auditor Ratification of a decision to transfer the registered office of the Company
―	Powers to carry out formalities

The Chairman then read out the management report prepared by the Board of Directors and the Statutory Auditors' reports.

Having completed the reading, the Chairman declares the discussion open.

As no one wished to speak, the Chairman put the following resolutions on the agenda to the vote:

First resolution

The General Meeting, having heard and reviewed the management report prepared by the Board of Directors for the 2023 financial year and the reports of the Statutory Auditors on the annual accounts for that year, approves the annual accounts for that year as presented. These accounts showed a net profit of EUR 145,856,895.05.

The General Meeting also approves the transactions reflected in these accounts or summarised in these reports and accordingly discharges the directors in respect of the performance of their duties for the past financial year.

This resolution was adopted unanimously.

Second resolution

The General Meeting, having reviewed the Statutory Auditors' special report on agreements governed by Articles L. 225-38 et seq. of the French Commercial Code, approves these agreements and notes the continued effect of agreements entered into previously.

This resolution was adopted unanimously.

Third resolution

The General Meeting, acting on a proposal from the Board of Directors, resolves to allocate the net profit for the year of EUR 145,856,895.05 as follows:

Profit for the 1st year	145,856,895.05 EUR
Retained earnings from previous year	67,464.70 EUR
Forming distributable income	145,924,359.75 EUR
For dividend distribution (EUR 8.18 per share X 17,817,453 shares)	- 145,746,765.54 EUR
Balance carried forward	177,594.21 EUR

The dividend of EUR 145,746,765.54 is payable no later than 6 May 2024 at a rate of EUR 8.18 per share with a par value of EUR 16.

The General Meeting notes that dividends distributed per share over the last three financial years amounted to:

	2020	2021	2022
Dividend distributed in Euros	5.14	9.36	10.26

This resolution was adopted unanimously.

Fourth resolution

The General Meeting ratifies the appointment of Mr Neil Pein as a Director and renews his appointment for a term of three years.

Mr Neil Pein's term of office as director will expire at the close of the General Meeting called to approve the accounts for the previous financial year and held in the year in which his term of office expires. Unless there is a statutory or regulatory change his term will last until the Annual General Meeting to be held in 2027 to approve the accounts for the 2026 financial year.

This resolution was adopted unanimously.

Fifth resolution

The Annual General Meeting re-elects Mine Volle to the Board of Directors for a further three-year term.

Mine Volle's term of office as director will expire at the close of the Annual General Meeting called to approve the financial statements for the previous financial year and held in the year in which her term of office expires, i.e. unless there is a statutory or regulatory change, until the close of the Annual General Meeting to be held in 2027 to approve the financial statements for the year ending 2026.

This resolution was adopted unanimously.

Sixth resolution

The Annual General Meeting re-elects Thierry Laborde as Director for a further three-year term.

The term of office as Director of Mr Thierry Laborde will expire at the close of the Annual General Meeting to be held on the same date at the meeting called to approve the financial statements for the previous financial year and held in the year in which the director's term of office expires, i.e., unless there is a statutory or regulatory change, until the end of the Annual General Meeting called in 2027 to approve the financial statements for the financial year 2026.

This resolution was adopted unanimously.

Seventh resolution

The Annual General Meeting re-elects Alain Van Groenendael as Director for a further three-year term.

Mr Alain Van Groenendael's term of office as director will expire at the close of the General Meeting called to approve the financial statements for the previous financial year and held in the year in which his term of office expires, i.e. until the close of the Annual General Meeting to be held in 2027 to approve the financial statements for the financial year 2026, unless there is a statutory or regulatory change.

This resolution was adopted unanimously.

Eighth resolution

The General Meeting resolves not to renew the appointment as Statutory Auditors of PricewaterhouseCoopers Audit, a public limited company (société anonyme) with its registered office at 63 rue de Villiers 92208 Neuilly sur Seine Cedex, registered with the Nanterre Trade and Companies Register under number 672 006 483, which expires at the close of this General Meeting.

This resolution was adopted unanimously.

Ninth resolution

The General Meeting resolves to appoint as Statutory Auditors Ernst & Young et Autres, a simplified joint stock company with variable capital, having its registered office at 1- 2 place des Saisons 92400 Courbevoie - Paris La Défense, registered with the Registre du Commerce et des Sociétés under number 438 476 913 RCS Nanterre.

The term of office of Ernst & Young et Autres as Statutory Auditors will expire at the end of the General Meeting called to approve the financial statements for the year just ended and held within the year, i.e. until the end of the Ordinary General Meeting to be held in 2030 to approve the financial statements for the year ended 2029, unless there is a statutory or regulatory change.

This resolution was adopted unanimously.

Tenth resolution

As a consequence of the adoption of the previous resolution, the General Meeting decides not to renew the appointment of Mrs Anik Chaumartin as Substitute Auditor insofar as this appointment is no longer required by Law n°2016-1691 of 9 December 2016 on transparency, the fight against corruption and the modernisation of economic life ("SAPIN II Law").

This resolution was adopted unanimously.

Eleventh resolution

The General Meeting ratifies the decisions to transfer the registered office from 12 rue du Port in Nanterre (92000) to 18 rue Baudin in Levallois-Perret (92300) with effect from 1 May 2024 and to amend the Articles of Association accordingly.

This resolution was adopted unanimously.

Twelfth resolution

The General Meeting, voting under the quorum and majority conditions laid down in Article L. 511-78 of the French Monetary and Financial Code, resolves that the variable component of individual remuneration allocated to categories of personnel whose professional activities have a significant impact on the Company's risk profile, as described in Article L. 511-71 of the French Monetary and Financial Code, may be increased to a maximum of 200% of the fixed component of the remuneration of each of these persons.

This authorisation is valid for a period of 3 years, expiring at the close of the Annual General Meeting to be called in 2027 to approve the financial statements for the year ended 2026.

This resolution was adopted unanimously.

Thirteenth resolution

The General Meeting confers on the Board of Directors and on Messrs Jean-Michel Vendassi and Peter Van Loon all powers for the purpose of ensuring, together or separately, the implementation of the preceding resolutions.

The General Meeting grants all powers to the bearer of an original, a copy or an extract of these minutes to carry out all necessary filings, formalities and publications.

This resolution was adopted unanimously.

There being no further requests to speak, the Chairman declares the meeting adjourned.

These minutes have been drawn up and read and signed by the members of the executive committee.

Certificat de réalisation
Envelope identifier: 33A20966B12O4B02BAD5617527B948AD		Status: Complete
Subject: Complete the envelope with DocuSign: BPLG 2024 0430 AGO PV.pdf
Source envelope:
Number of pages: 4	Signatures: 1	Envelope sender:
Number of certificate pages: 2	Initialled: 0	Peter VAN LOON
Directed signature: Active		10, rue Edward Steichen
Envelope timestamp: Active		Luxembourg, L-2540 Luxembourg L-2540
Time zone: (UTC+01:00) Brussels, Copenhagen, Madrid, Paris		peter.vanloon@bnpparibas.com IP address: 155.140.83.77

Suivi du dossier
Status: Original	Owner: Peter VAN LOON
02-05-24 1 10:46	peter.vanloon@bnpparibas.com
	Location: DocuSign

Événements de signataire	Signature	Horodatage
Peter VAN LOON		Sent: 02-05-24 110:47
peter.vanloon@bnpparibas.com		Accessed: 02-05-24 110:47
DOCUSIGN - CORP Holding		Signed: 02-05-24 110:48
Security level: E-mail, Account authentication (none), Digital certificate	Signature selection: Style preselects Using IP
Details of the signature provider:	address: 155.140.83.77
Signature type: DocuSign Protect & Sign
(Customer ID: DDE5E85O-4085-40B6-8785-OA3CCO16O81E)	Signature provider location: https://ps-w
Signature Issuer: DocuSign Cloud Signing CA - Sl1	s.dsf.docusign.net/ds-server/s/noauth/psm/tsp/sign
Authentication: Access code
Disclosure of Electronic Signatures and Records:
Not offered by DocuSign

Événements de signataire en personne Signature		Horodatage
Événements de livraison à l'éditeur	État	Horodatage
Événements de livraison à l'agent	État	Horodatage
Événements de livraison intermédiaire	État	Horodatage
Événements de livraison certifiée	État	Horodatage
Événements de copie carbone	État	Horodatage
Événements de témoins	Signature	Horodatage
Événements notariaux	Signature	Horodatage
Récapitulatif des événements de l'enveloppe	État	Horodatage

Envelope sent	02-05-24 10:47
Certified delivery	02-05-24 10:47
Signature complete	02-05-24 10:48
Completed	02-05-24 10:48
Hash/crypt
Verified security
Verified security
Verified security

Événements de paiement

État

Horodatage

PricewaterhouseCoopers Audit	Deloitte & Associes
63, rue de Villiers	6, place de la Pyramide
92208 Neuilly-sur-Seine Cedex	92908 Paris-La Défense Cedex
S.A.S. with share capital of 2,510,460€	S.A.S. with share capital of 2,188,160€
672 006 483 RCS Nanterre	572 028 041 RCS Nanterre
Société de Commissariat aux Comptes registered with the Compagnie Régionale de Versailles et du Centre	Société de Commissariat aux Comptes registered with the Compagnie Régionale de Versailles et du Centre

BNP PARIBAS LEASE GROUP

Limited company

12, rue du Port

92000 NANTERRE

Statutory auditors' report on the annual financial statements

Financial year ending 31 December 2023

To the General Meeting of BNP PARIBAS LEASE GROUP

Opinion

In compliance with the assignment entrusted to us by the Annual General Meeting, we have audited the accompanying financial statements of BNP PARIBAS LEASE GROUP for the year ended 31 December 2023.

In our opinion, the financial statements give a true and fair view of the financial position and assets and liabilities of the company and of the results of its transactions for the year then ended in accordance with the accounting rules and principles applicable in France.

The opinion expressed below is consistent with the contents of our report to the Audit Committee.

Basis of opinion

Audit framework

We conducted our audit in accordance with professional standards applicable in France. We believe that the evidence we have collected is sufficient and appropriate to provide a basis for our opinion.

Our responsibilities under these standards are set out in the section of this report entitled "Statutory Auditors' Responsibilities for the Financial Statements".

Independence

We conducted our audit in accordance with the rules of independence set out in the French Commercial Code and in the Code of Ethics for Statutory Auditors for the period from 1 January 2023 to the date of issue of our report, and in particular we did not provide any services prohibited by Article 5(1) of Regulation (EU) No 537/2014.

In addition, the services other than the certification of the accounts that we have provided during the financial year to your company and the entities it controls and which are not mentioned in the management report or the notes to the annual accounts are as follows: Agreed procedures on the FRU.

Observation

Without qualifying the opinion expressed above, we draw your attention to the following matter set out in Note 6 - C to the financial statements relating to the financial accounting, which presents the financial result for the year: this result is determined by taking into account the financial amortisation of capital employed over the term of the lease agreements. We remind you that this result gives a better picture of the financial profitability of your company than the social result which takes into account the industrial depreciation of leased equipment.

Justification of assessments - key audit points

In accordance with the provisions of Articles L.821-53 and R.821-180 of the Commercial Code regarding the justification of our assessments, we bring to your attention the key audit matters related to the risks of material misstatements which, in our professional judgment, were the most significant for the audit of the annual financial statements for the fiscal year, as well as the responses we provided to address these risks.

These assessments were made in the context of our audit of the financial statements taken as a whole and in forming our audit opinion expressed above. We do not express an opinion on individual items in these financial statements.

Credit risk - individual provisioning
(See notes 2C, 2E, 3D, 3G and 3H to the financial statements)
Identified risk	Response from the joint statutory auditors to this risk
Within the context of its banking activities, BNP Paribas Lease Group S.A. is exposed to credit risk.	We have assessed the relevance of BNP Paribas Lease Group S.A.'s control system and tested the key controls relating to the identification and assessment of impairment.
BNP Paribas Lease Group S.A. recognises individual impairments to cover the credit risk on loans and receivables granted within the context of its banking activities.	We also carried out work on the most significant outstanding loans at the year-end.
These write-downs may take the form of individual impairments for the balance sheet and off-balance sheet commitments concerned and correspond to the difference between the gross value of the receivable and the present value at the original effective rate of the loan or at the last known rate of estimated future recoverable flows.	In particular, our work focused on the following processes:
Expected future cash flows are estimated in two ways:	■ the identification of impairment indicators,
■ manually by the receivables managers who make a unit valuation of this flow.	■ the classification of exposures as doubtful loans,
■ statistically for small claims.	■ the monitoring and valuation of collateral,
At 31 December 2023, total loans and advances to customers and operating leases, net of amortisation, exposed to credit risk amounted to EUR 9,527.8 million, including EUR 231.0 million of doubtful loans; total impairment losses amounted to €185.4 million, as presented in notes 2C, 2E, 3D, 3G and 3H.	■ the determination of individual write-downs and statistical write-downs of doubtful loans and the associated governance and validation system;
We considered the identification and assessment of credit risk to be a key audit issue, as the assessment of credit risk involves judgement and estimates of the management.	■ With the assistance of our credit risk specialists, we have reviewed the loss estimation model and recovery rates on a statistical basis,
	■ in addition, we carried out a credit review based on a sample of files selected on the basis of materiality and risk criteria.
	We also reviewed the information published in the notes to the financial statements relating to credit risk.

Equity investments, other securities held for long-term investment and shares in affiliated undertakings
(See notes 2D and 3F to the financial statements)
Identified risk	Response from the joint statutory auditors to this risk
Investments in non-consolidated undertakings and other long-term investments" and "Shares in affiliated undertakings" represent a net total of EUR 398.2 million, as shown in notes 2D and 3F.	We assessed the processes implemented by BNP Paribas Lease Group S.A. to measure the potential need for impairment of investments in subsidiaries and affiliates.
These securities are recorded individually at the lower of cost or value in use.	We have implemented the following substantive procedures:
This value in use is assessed annually using a number of valuation techniques and macro-economic assumptions, including:	■ analysis of the consistency between the equity investments/shares in affiliated companies analysed and the valuation method used
■ the use of revalued net assets;	■ technical analysis of the construction of the valuation models and review of the assumptions used to determine the financial parameters used;
■ the use of equity valuation based on actuarial data;	■ review of the forecasts used, verifying that they were in line with the business plans approved by the management bodies of the companies concerned.
■ the use of the expected future profitability method, which is based on forecast data as well as a discount rate and a growth rate to infinity;	We have also examined the information published in the notes to the financial statements relating to equity investments.
■ the average share price over the last six months.
When the value in use of the securities is lower than the net book value, a provision for depreciation is recorded for the amount of the difference.
This is an estimate that requires management to exercise judgement in selecting the relevant items to be taken into account.
As such, we considered that the valuation of equity securities was a key point of the audit.

IT general controls
Identified risk	Response from the joint statutory auditors to this risk
The reliability and security of information systems play a key role in the preparation of BNP Paribas Lease Group S.A.'s annual financial statements.	For the main systems involved in the preparation of accounting and financial information, the work we carried out with the support of our IT specialists will focus more specifically on the following aspects:
The assessment of general IT controls and application controls specific to the various information processing chains that contribute towards the preparation of accounting and financial information is therefore a key point of the audit.	■ understanding of the systems, processes and controls underlying accounting and financial information;
In particular, the existence of a system for controlling access rights to information systems and authorisation levels based on employee profiles is a key control to limit the risk of inappropriate changes in the configuration of applications or the data underlying them.	■ assessment of general IT controls (management of access to applications and data, management of changes and developments relating to applications, management of IT operations) on significant systems (in particular accounting, consolidation and automatic reconciliation applications).
	We also carried out compensatory procedures following the exceptions identified in the general IT controls of business applications.

Specific verifications

In accordance with professional standards applicable in France, we have also performed the specific procedures required by law.

Information given in the management report and other documents on the financial situation and annual accounts sent to shareholders

We have nothing to report with respect to the fair presentation and the conformity with the financial statements of the information given in the Directors' Report and in the other documents addressed to the shareholders with respect to the financial position and the financial statements, other than the matter set out below.

We have the following observation to make regarding the fair presentation and consistency with the financial statements of the information relating to payment periods referred to in Article D.441-6 of the French Commercial Code: As indicated in the management report, this information does not include banking transactions and related transactions, as your company considers that they do not fall within the scope of the information to be provided.

Information on corporate governance

We hereby attest to the existence of the information required by Article L.225-37-4 of the French Commercial Code in the section of the Board of Directors' management report devoted to corporate governance.

Other information

In accordance with the law, we have ensured that the various information relating to the acquisition of shareholdings and control has been communicated to you in the management report.

Other verifications or information provided for by legal and regulatory texts

Appointment of statutory auditors

We were appointed auditors of BNP PARIBAS LEASE GROUP by the General Meeting of 29 April 2022 for Deloitte & Associés and by the General Meeting of 19 May 2006 for PricewaterhouseCoopers Audit.

At 31 December 2023, Deloitte & Associés was in the 2 ^nd year of its uninterrupted engagement and PricewaterhouseCoopers Audit in the 18 ^th year.

Responsibilities of management and those charged with governance in relation to the annual accounts

It is the responsibility of management to prepare financial statements that present a true and fair view in accordance with French accounting rules and principles and to implement the internal control procedures it deems necessary to prepare financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the annual accounts, it is the responsibility of management to assess the company's ability to continue as a going concern, to make appropriate disclosures in those accounts as to whether the company is a going concern and to apply the going concern accounting policy, unless the company is to be wound up or cease trading.

The audit committee is responsible for monitoring the process of preparing financial information and for monitoring the effectiveness of the internal control and risk management systems, as well as, where applicable, internal audit, with regard to the procedures relating to the preparation and processing of accounting and financial information.

The annual accounts were approved by the board of directors.

Responsibilities of the statutory auditors relating to the audit of the annual accounts

Audit objective and approach

Our responsibility is to issue a report on the financial statements. Our objective is to obtain reasonable assurance that the financial statements taken as a whole are free from material misstatement. Reasonable assurance represents a high level of assurance, but does not guarantee that an audit conducted in accordance with professional practice standards will consistently detect any material misstatement. Misstatements may arise from fraud or error and are considered material when it is reasonable to expect that they could, individually or in the aggregate, influence the economic decisions that users of the accounts make based on them.

As specified in Article L.821-55 of the French Commercial Code, our role in certifying the financial statements is not to guarantee the viability or quality of the management of your company.

Within the context of an audit carried out in accordance with professional standards applicable in France, the statutory auditor exercises its professional judgement throughout the audit. In addition:

―	the statutory auditor identifies and assesses the risks of material misstatement of the financial statements, whether due to fraud or error, designs and implements audit procedures to address those risks, and obtains audit evidence that it believes to be sufficient and appropriate to provide a basis for its opinion. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting a material misstatement due to error, because fraud may involve collusion, falsification, wilful omission, misrepresentation or circumvention of internal control;
―	it shall obtain an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control;
―	it assesses the appropriateness of the accounting methods used and the reasonableness of the accounting estimates made by management, as well as the information relating thereto provided in the annual accounts;
―	it assesses the appropriateness of management's application of the going concern accounting policy and, based on the information gathered, whether or not there is any significant uncertainty related to events or circumstances that could call into question the company's ability to continue as a going concern. This assessment is based on information gathered up to the date of its report, it being recalled, however, that subsequent circumstances or events could jeopardise the Group's ability to continue as a going concern. If the auditor concludes that there is a material uncertainty, he draws the attention of the readers of his report to the information provided in the annual financial statements about that uncertainty or, if such information is not available, to the financial statements themselves the information is not provided or is not relevant, the auditor issues a qualified opinion or a disclaimer of opinion.
―	the auditor assesses the overall presentation of the annual accounts and evaluates whether the annual accounts reflect the underlying transactions and events in such a way as to give a true and fair view.

Report to the audit committee

We provide the Audit Committee with a report that presents, in particular, the scope of the audit and the work programme implemented, as well as the conclusions arising from our work. We also bring to its attention, where appropriate, any significant weaknesses in the internal control procedures we have identified with regard to the preparation and processing of accounting and financial information.

The matters set out in the report to the Audit Committee include the risks of material misstatement that we considered to be the most significant for the purposes of our audit of the financial statements for the year and which therefore constitute the key points of the audit, which it is our responsibility to describe in this report.

We also provide the Audit Committee with the declaration required by Article 6 of Regulation (EU) no. 537-2014 confirming our independence, within the meaning of the rules applicable in France as set out in Articles L.821-27 to L.821-34 of the French Commercial Code and in the Code of Ethics for Statutory Auditors. Where appropriate, we discuss with the audit committee the risks weighing on our independence and the safeguards applied.

Neuilly-sur-Seine and Paris-La Défense, 15 April 2024

Statutory auditors
PricewaterhouseCoopers

Ridha BEN CHAMEK

Audit Deloitte & Associés

Jean-Vincent COUSTEL

ANNUAL ACCOUNTS

FINANCIAL YEAR 2023

COMPARATIVE BALANCE SHEETS 2023-2022

(in thousands of euros)

ASSETS

	2023	2022
CASH, CENTRAL BANKS, CCP	7,941	286,335
GOVERNMENT SECURITIES AND ASSIMILATED VALUES	0	0
RECEIVABLES ON CREDIT INSTITUTIONS	250.718	310,144
CUSTOMER TRANSACTIONS	3,199,592	3,127,346
BONDS AND OTHER INCOME SECURITIES	354,973	155,589
SHARES AND OTHER VARIABLE-INCOME SECURITIES	0	0
EQUITY INTERESTS AND OTHER SECURITIES HELD ON A LONG-TERM BASIS	52,580	53,426
SHARES IN AFFILIATED ENTERPRISES	345,587	348,338
LEASING AND RENTAL WITH PURCHASE OPTION	3,543,983	3,401,046
OPERATING LEASE	2,630,329	2,583,460
INTANGIBLE ASSETS	77,298	64,301
TANGIBLE FIXED ASSETS	3.945	7,542
UNPAID SUBSCRIBED CAPITAL	0	0
TREASURY STOCK	0	0
OTHER ASSETS	340,957	286,308
ACCRUALS ACCOUNTS	208,150	185,152
TOTAL ASSETS	11,016,053	10,808,988
LIABILITIES
	2023	2022
CENTRAL BANKS, CCP	0	0
DEBTS TO CREDIT INSTITUTIONS	1,832,411	1,808,628
CUSTOMER TRANSACTIONS	7,451,951	7,607,499
DEBT SECURITIES	297,098	10,000
OTHER LIABILITIES	329,791	297,117
ACCRUALS ACCOUNTS	608,586	556,964
PROVISIONS FOR LIABILITIES AND EXPENSES	26,709	22,485
SUBORDINATED DEBTS	0	0
FUND FOR GENERAL BANKING RISKS	0	0
SHAREHOLDERS' EQUITY EXCLUDING FRBG	469,507	506,295
SUBSCRIBED CAPITAL	285,079	285,079
SHARE PREMIUMS	0	0
RESERVES	38,168	38,168
REVALUATION VARIANCE	0	0
REGULATED PROVISIONS	0	0
INVESTMENT GRANTS	335	173
CARRY FORWARD	67	67
PROFIT FOR THE YEAR	145,857	182,808
INTERIM DIVIDEND	0	0
TOTAL LIABILITIES	11,016,053	10,808,988

COMPARATIVE PROFIT AND LOSS ACCOUNTS 2023-2022

(in thousands of euros)

PROFIT AND LOSS ACCOUNTS	2023	2022
INTEREST AND SIMILAR INCOME	157,458	81,797
INTEREST AND SIMILAR EXPENSES	-224,408	-106,926
INCOME FROM FINANCE LEASES AND SIMILAR TRANSACTIONS	1,633,197	1,463,913
EXPENSES ON CREDIT LEASE AND SIMILAR TRANSACTIONS	-1,402,749	-1,265,979
INCOME FROM OPERATING LEASES	1,382,530	1,335,327
EXPENSES ON OPERATING LEASES	-1,239,514	-1,207,143
INCOME FROM VARIABLE-INCOME SECURITIES	101,414	117,098
COMMISSIONS (INCOME)	41.342	36,811
COMMISSIONS (EXPENSES)	-24,580	-6,826
GAINS OR LOSSES ON TRADING PORTFOLIO TRANSACTIONS	-12,910	-1,465
GAINS OR LOSSES ON TRANSACTIONS IN INVESTMENT PORTFOLIOS AND SIMILAR INSTRUMENTS	6,731	2,175
OTHER BANKING INCOME	279,835	216,018
OTHER BANKING EXPENSES	-96,779	-35,100
NET BANKING INCOME	601,567	629,700
GENERAL OPERATING EXPENSES	-409,767	-392,328
DEPRECIATION, AMORTISATION AND PROVISIONS ON TANGIBLE AND INTANGIBLE FIXED ASSETS	-6,592	-8,406
GROSS OPERATING PROFIT	185,208	228,965
COST OF RISK ON CREDIT TRANSACTIONS	-4,890	-7,647
OPERATING INCOME	180,319	221,318
GAINS OR LOSSES ON FIXED ASSETS	-287	1,522
PROFIT FROM ORDINARY ACTIVITIES BEFORE TAX	180,032	222,839
EXTRAORDINARY RESULT	0	0
CORPORATE INCOME TAX	-34,175	-40,031
GRBF ALLOCATIONS AND PROVISIONS AND REGULATED PROVISIONS	0	0
NET INCOME	145,857	182,808

OFF-BALANCE SHEET COMPARISONS 2023-2022

(in thousands of euros)

	2023	2022
COMMITMENTS GIVEN	181,522	852,883
FINANCING COMMITMENTS	164,681	836,703
GUARANTEE COMMITMENTS	4,638	3,514
SECURITIES COMMITMENTS	0	0
DERIVED PRODUCTS	12,202	12,666
COMMITMENTS RECEIVED	2,061,062	2,047,438
FINANCING COMMITMENTS	64,206	51,500
GUARANTEE COMMITMENTS	1,996,856	1,995,938
SECURITIES COMMITMENTS	0	0

ANNEXES TO THE CORPORATE ACCOUNTS BNP

PARIBAS LEASE GROUP SA

FINANCIAL YEAR FROM 1 JANUARY TO 31 DECEMBER 2023

3. HIGHLIGHTS OF THE YEAR

Closing Banque de France accounts:

Following constraints imposed by the Banque de France on the management of deposits required to comply with the Liquidity Coverage Ratio, BPLG S.A closed its accounts with the Banque de France in January 2023. Cash has been invested with BPLS.

To meet the LCR compliance requirement, BPLG S.A. implemented a state securities lending arrangement with BNP PARIBAS SA. The loaned securities are recorded on the asset side of the balance sheet under "Bonds and other fixed-income securities" at their market value, amounting to 285,523 thousand euros, with a corresponding liability of the same amount recorded on the liability side of the balance sheet under "Debts securities."

Sale of bonds convertible into JFL shares:

In June 2023, it was decided to sell the bonds convertible into shares of the Jiangsu Financial Leasing subsidiary, with a gross value of 32.266 thousand euros.

The amount of the capital gain recognized from the sale is recorded under the "Gains or losses on investment portfolios" item for an amount of 6,731 thousand euros.

As a reminder, BPLG SA acquired these bonds in 2021 in order to subscribe to the capital increase of its subsidiary planned for 2022.

Sale building Marseille:

In March 2023, the building at 51 boulevard des Dames in Marseille was sold for EUR 7,000 thousand euros.

The capital gain on the sale is included in "Gains and losses on fixed assets" in the amount of EUR 3,311 thousand euros.

Modification of the irrevocability clause in letters of agreement:

With a view to reducing RWAs, BPLG SA in France has modified the irrevocability clause in the letters of agreement given to our partners and customers.

The removal of the irrevocable nature of the agreement before the commencement of the lease for credit and leasing contracts resulted in the cessation of accounting for the financing commitments given.

4. ACCOUNTING PRINCIPLES AND VALUATION METHODS

The financial statements of BNP PARIBAS LEASE GROUP have been drawn up in accordance with the regulatory provisions applicable to financial institutions, as provided for in NCA regulation no. 2014-07 of 26 November 2014 relating to the accounts of companies in the banking sector. This regulation contains all the regulations that apply to companies in the banking sector.

In accordance with the provisions of ANC regulation no. 2014-07 and the clarifications provided by opinion 2003 G of the Urgent Issues Committee, loans at risk are broken down into doubtful loans and impaired doubtful loans, the latter category mainly comprising loans for which the term has expired and which have been terminated under leasing and operating leases. In addition, no debt is restructured at non-market conditions.

BNP PARIBAS LEASE GROUP SA applies article 2231-2 of regulation no. 2014-07 of the French National Accounting Board (ANC) relating to the methods for calculating impairment losses for doubtful debts and impaired doubtful debts, based on a discounted valuation of recoverable cash flows. In accordance with the regulation, the impact of the discounting was recorded when its result appeared material in relation to the prudently estimated amounts.

The effect of unwinding the discounting is recorded in net banking income. The discounting effect is recorded in cost of risk.

In the context of the moratoria granted during the Covid-19 crisis, a method of smoothing the rents was used for the sole scope of the rescheduled Covid-19 contracts, thus leading to the recognition of accrued income. According to article 512-4 of the French General Chart of Accounts (PCG), the following are attributed to the financial year: income earned in that year, plus any income normally earned in previous years but which, due to error or omission, was not recorded at the time. Income is earned when the services have been performed or the goods have been delivered. In this case, because of its choice to adopt an economic approach to contracts as the principle for recognising income, on the sole scope of contracts rescheduled for COVID-19 reasons, BPLG SA implicitly applies the straight-line method of unequal rents on this scope, since it is the method based on the economic reality of the contracts. Under these conditions, the lessee continues to derive economic benefits from the use of the leased property, which justifies BPLG SA's right to consider that the income from rents not invoiced during the moratorium period is certain and acquired at the balance sheet date. This accrued income is recorded in the balance sheet under the headings "Leasing operations, rental with purchase option" and "Operating lease operations" and in the income statement under the headings "Income from leasing operations and rental with purchase option" and "Income from operating lease operations".

BNP PARIBAS LEASE GROUP SA has 4 branches outside France that are integrated into the eurozone:

―	a branch in Italy;
―	a branch in Spain;
―	a branch in Germany;
―	a branch in Portugal.

Their activity is identical to that of BNP PARIBAS LEASE GROUP SA. Their accounts at 31 December 2023, included in the accounts of BNP PARIBAS LEASE GROUP SA, have been restated in accordance with the standards relating to the regulatory provisions applicable to French banks.

K. CONVERSION OF TRANSACTIONS DENOMINATED IN FOREIGN CURRENCIES

These transactions follow the rules laid down in regulation no. 89.01 of the banking regulation committee (Comité de la Réglementation Bancaire). Assets, liabilities and off-balance sheet items are converted into euros at the exchange rate prevailing at the balance sheet date.

Accrued income and expenses in foreign currencies are converted into euros at the rate of the last day of the month in which they are recorded.

Differences arising from the conversion of foreign currency equity interests and subsidiary shares financed in euros are recorded in the securities account.

Other foreign exchange gains or losses, whether unrealised or final, are recorded at the end of the period in the income statement and constitute the foreign exchange result.

L. RECEIVABLES ON CREDIT INSTITUTIONS

This item corresponds in particular to cash in hand and loans granted to credit institutions. Amounts due from credit institutions are broken down into demand and time deposits.

In the income statement, additions to and reversals of provisions and impairments, losses on irrecoverable loans and recoveries on loans written off are grouped together under "Cost of risk". Interest corresponding to the remuneration of the carrying amount of impaired receivables, or to the reversal of the discounting effect, is recorded under "Interest income".

Amounts due from credit institutions are recorded in the balance sheet at their nominal value plus accrued interest not yet due.

M. CUSTOMER TRANSACTIONS

Amounts due from customers include loans to financial agents other than credit institutions and are recorded in the balance sheet at their nominal value plus accrued interest not yet due.

Loans granted are broken down between loans deemed sound and loans deemed impaired.

Receivables are monitored using the BNP PARIBAS Group's risk rating system. The rating scale comprises twelve levels: ten covering sound loans and two relating to doubtful and impaired customers.

In accordance with the provisions of article 2221-1 of regulation no. 2014-07 of the French National Accounting Board (ANC), receivables are considered doubtful if:

―	There is a risk that debtors may not be able to meet all or part of their commitments;
―	Credits with maturities of more than three months, or more than six months in the case of credit to local authorities;
―	Credits that are the subject of litigation.

The classification of a claim as doubtful immediately results in the classification of all outstanding amounts and commitments relating to the debtor in the same category.

These loans give rise to the recognition of an impairment loss corresponding to the difference between the gross value of the receivable and the present value of the estimated future cash flows recoverable at the original effective rate of the loan (for fixed-rate loans) or at the last known rate (for variable-rate loans).

Expected future cash flows are estimated in two ways:

―	Manually by debt managers who make a unit valuation of this flow.
―	Statistically for small claims according to market-specific claim thresholds.

The amount of depreciation calculated on a statistical basis is shown in paragraph D "Notes to the balance sheet" of the notes to the financial statements.

When payment of the initial instalments of a credit that has become doubtful has resumed on a regular basis, it may again be classified as healthy.

The following are considered doubtful impaired:

―	Receivables for which the lapse of time has been pronounced;
―	Receivables classified as doubtful for more than one year.

Impairment losses for doubtful receivables covering risks recorded on the balance sheet are deducted from the assets concerned.

In the income statement, additions to and reversals of provisions for impairment, bad debt losses and recoveries on loans written off are included under "Cost of risk".

Interest corresponding to the remuneration of the value of the impaired receivables or the reversal of the discounting effect is recorded in "interest income".

Interest on loans downgraded to doubtful loans is subject to a depreciation equal to 100%.

N. SECURITIES AND FORWARD FINANCIAL INSTRUMENTS