New Business Organisation

BNP PARIBAS Impaired Loan Coverage Best Practice in Italy • BNP Paribas risk assessment methods applied to BNL ■Limited need for new specific provisions Widened scope of doubtful loans: integration of past due amounts over 90 days' ■ Coverage of both past due categories at 36% whilst negligible for peers ■ Enforcement of the BNP Paribas portfolio provisioning method BNL coverage ratio already high in Italy and further increased NPL + SUBSTANDARD + RESTRUCTURED LOANS PAST DUE > 180 days PAST DUE 90-180 days 59% 58% 53% 20% BNL Dec05 BNL Peers Jun06 average* Jun06 36% 36% 6% 0% n.s. BNL Dec05 BNL Peers BNL Jun06 average* Dec05 Jun06 BNL Peers Jun06 average* Jun06 BNL Grupp BNP PARIBAS *Peers' average includes Banca Intesa, Unicredit, San Paolo IMI, Capitalia, MPS Financial Elements 36

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