(Appropriation of income for the year ended 31 December 2005 and dividend distribution)
The Ordinary General Meeting resolves to appropriate net income as follows:
|Net income for the year||3,423,168,749.54|
|Retained earnings brought forward from prior years||8,690,141,972.17|
|To the special Investment Reserve||54,646,169.00|
|To unappropriated retained earnings||9,875,659,065.71|
The total dividend of EUR 2,183,005,487.00 to be paid to BNP Paribas shareholders corresponds to a dividend of EUR 2.60 per share with a par value of EUR 2. Full powers are given to the Board of Directors to credit dividends payable on shares held in treasury stock to unappropriated retained earnings.
The proposed dividend is eligible for the reduction granted to individuals domiciled for tax purposes in France as provided for by article 158-3-2° of the French Tax Code.
The 2005 dividend will be payable as from 31 May 2006, in cash.
As required under article 47 of the Act of 12 July 1995 (Act 65-566), the Board of Directors informs the Meeting that dividends paid for the last three years were as follows:
|Par value of shares||Number of shares||Total dividend||Net dividend per share||"Avoir fiscal" tax credit||Dividend eligible for deduction as provided for in article 158 3-2° of the French Tax Code|
The Ordinary General Meeting authorises the Board of Directors to deduct from unappropriated retained earnings the amounts necessary to pay the above dividend on shares issued on the exercise of stock options prior to the ex-dividend date.
Presentation of the resolution
The third resolution concerns the appropriation of income for the year and the distribution of the 2005 dividend. The total amount to be appropriated is EUR 12,113.311 million, made up of BNP Paribas SA's net income for the year of EUR 3,423.169 million, plus EUR 8,690.142 million in retained earnings. The total dividend of EUR 2,183.006 million to be paid to BNP Paribas SA shareholders corresponds to a dividend of EUR 2.60 per share. The 2005 divided will be paid as from 31 May 2006 in cash only. The Board of Directors is also recommending that EUR 54.646 million should be appropriated to the special Investment Reserve and the balance of EUR 9,875.659 million to unappropriated retained earnings.
This dividend is significantly higher than the dividend paid in 2005 (in relation to 2004 net income), representing an increase of 30.0% and outstripping the 19.6% growth in earnings per share. The payout rate has risen to 37.4% from 35.7% in 2005 (IFRS standards).