11:00AM New York, 5:00PM Paris - France’s largest bank BNP Paribas reported annual revenues rose 11.1% to 31 billion euros largely on organic growth and as the impact of the credit market turmoil eased.

Quarterly Earnings Review

BNP Paribas reported fourth quarter revenues declined 1.9% to 6.9 billion euros from the comparative period last year due to depreciation and fair value adjustments. For the quarter ended December 31st, net income fell 41.5% to 1 billion euros.

Operating expenses increased 0.7% compared to the same quarter a year ago.

Annual Earnings Review

BNP Paribas full year revenues climbed 11.1% to 31 billion euros as the company managed to limit the risk of the credit market crunch and grow its business. For the year, net income for group gained 7% to 7.822 billion euros. Net income for the group increased 5.7% to 8.49 euros.

In addition, operating expenses in the year rose 10% from a year earlier to 18.7 billion euro reflecting the company’s growth thrust. Operating income grew 12.8% from a year ago to 12.2 billion euros.

BNP Paribas also proposed a 3.35 euros dividend per share, 8.1% rise from 2006.

Retail banking comprised of FRB, BNL bc, and IRFS formed 54% of revenue in 2007, Asset Management Services generated 18%, and CIB was 28% of total revenue.

FRB managed to grow at 4.4%, BNL rose 6.5%, IRFS increased 7.9% in 2007. AMS revenue surged 20.9% from 2006 and Corporate and Investment Banking (CIB) revenues increased 2.5% from a year ago.

Assets under management rose 8% to 584 billion euros.


Revenues

In the fourth quarter, there were rising counterparty risks in mono-line insurers as the financial markets were increasingly volatile.

CIB’s revenues were affected by 589 million euros in depreciations and fair value adjustments and 309 million euros in subprime related provisions that affected BancWest’s and CIB’s cost of risk. CIB generated 49% of its revenue in 2007 from France, Italy, and other Western European nations, 21% from North America, and 27% from Asian and emerging markets, and 4% from Japan.

Notwithstanding the subprime related provisions, CIB generated 343 million euros.

Fourth quarter cost of risk rose to 745 million euros, with 309 million euros related to subprime mortgage crisis compared to 282 million euros in 2006.

In the year, BNP continued to invest on growth and as a result operating expenses rose 10% to 18.7 billion euros.

Core businesses'' cost/income ratio was quoted at 60.8% compared to 60.6% on operational efficiency of FRB''s and AMS'' operating efficiency, integration synergies at BNL and efficiency of CIB.

Operating income in the year increased 12.8% from last year to 12.2 billion euros.

For the year, the cost of risk jumped to 1.7 billion euros compared to 783 million euros in 2006.