Bpce:RESULTS FOR THE 2ND QUARTER AND 1ST HALF OF 2024
Paris, August 1, 2024
RESULTS FOR THE
2nd QUARTER AND
1st HALF OF
2024
• Quarterly NBI rebounds YoY for the first time
since the end of 2022 •
• 12% growth in reported net income1 in H1-24 •
• Dynamic commercial activities in retail banking and very good
performance in global businesses •
• Particularly active external growth and partnerships •
• Long-term rating at the highest European level •
The Rating agencies assign top European
ratings to Groupe BPCE
- S&P upgraded the LT
credit rating to A+, outlook stable on July 15, up from
the previous A (outlook stable)
- Moody’s confirmed its
rating of A1, outlook stable on July 11
- R&I confirmed its
rating of A+, outlook stable on July 30
- Fitch confirmed its rating
of A+, outlook stable on January 19
Groupe BPCE is on the move, implementing
the acquisition- and partnership-driven growth strategy laid out in
its Vision 2030 strategic plan
- Project
to acquire Société Générale Equipment Finance: integration process
and submission of approval requests in line with the initial
schedule2
- Project
to acquire3 Belgium’s
Nagelmackers bank by Caisse d’Epargne Hauts de France announced on
July 22
-
Investments by Natixis Partners in M&A boutiques Tandem
Capital Advisors in Belgium and Emendo Capital in the
Netherlands
- Natixis
Interépargne, one of the leading players in the employee savings
and pensions in France, announced on May 3 that it had signed a MoU
with HSBC to acquire HSBC Epargne Entreprise, France's
9th-largest player in
this area
-
Announcement on June 13 for the creation of a JV between
BPCE and BNP PARIBAS in payment processing (17 billion
transactions). The processor would be No. 1 in France and
with the ambition of becoming one of the Top 3 players in
Europe
- Project
to acquire iPaidThat for becoming a benchmark player in Digital
financial management solutions for corporates
H1-24: net banking income of €11.4bn, up
1% YoY thanks to the good performance achieved by all the business
lines; gross operating income up 11% generated by a positive jaws
effect; reported net income1
of €1.7bn, up 12% vs. H1-23
Q2-24: 1st rebound in quarterly net
banking income YoY since end-2022, up 3% vs. Q2-23 to €5.6bn;
growth driven by the dynamism of the two retail banking networks,
by specialized financing, and the global businesses; net income of
€806m
Solvency and liquidity levels remain
very high, with a CET1 ratio of
15.6%5 and a LCR
of 149%5
at end-June 2024
RETAIL BANKING & INSURANCE
Continued growth in the client base in the Banque Populaire
and Caisse d'Epargne networks across all segments, with 452,000 new
clients6 in H1-24. Net
banking income up 2% YoY in Q2-24 thanks to ongoing asset repricing
and growth in commissions
- Local and regional
financing: 1% growth in loan outstandings YoY to
€718bn at end-June 2024
- 3% growth in clients’
deposits7 at end-June 2024
YoY, i.e. +€18bn, reaching a total of €676bn.
- Insurance: gross
life insurance inflows of €8.3bn
in H1-24. Premiums up 7% vs.
H1-23. Client equipment
rate8 in P&C and
personal protection insurance of 34.6% at end-June 2024,
+0.4% YtD
- Financial Solutions &
Expertise: net banking income up 4% vs. H1-23, driven
notably by Leasing, Factoring and Consumer Credit activities
- Digital & Payments: +5%
increase in the number of card transactions at end-June
2024 YoY
GLOBAL FINANCIAL SERVICES
Strong revenue growth in Q2-24, +8% YoY; continued
commercial development in all Corporate & Investment Banking
businesses, net banking income up 7% in Q2-24 YoY, and solid
performance in Asset Management, net banking income up 10% in Q2
-24 YoY
- Corporate & Investment
Banking: net banking income stands at €1.1bn in Q2-24;
very good performance for Global Markets driven by
Fixed-income and Equity, revenues up 9% vs. Q2-23;
net banking income up 18% for Global Finance and 20% for
Investment Banking in Q2-24 YoY; M&A revenues increased by 6%
vs. Q2-23
- Asset & Wealth
Management: 6% YtD growth in Natixis IM's assets under management,
reaching €1,232bn end-June 2024; sustained net
inflows of €11bn in Q2-24 and €17bn in H1-24;
strong net banking income growth in Q2-24 to
€850m
Expenses down 3% in H1-24 and 3 pp
improvement in the cost/income ratio
Cost of risk: €942m in H1-24, equal to
22bps, reflecting both Groupe BPCE's footprint in financing the
economy and a prudent provisioning policy
Financial strength: CET1 ratio stood at
15.6%5 at end-June
2024; liquidity reserves of €329bn
1 Group share 2 Employee
representative bodies consulted, awaiting regulatory authorizations
3 Consultation of employee representative bodies
underway, preparation of regulatory filing 4 See the
notes on methodology appended to this press release 5
Estimated figures at end-June 2024 6 64,500
additional active clients over the past 6 months
7 On-balance sheet savings and deposits within the
scope of the Retail Banking & Insurance business unit
8 Scope: BP and CE individual clients
Nicolas Namias, Chairman of the Management
Board of BPCE, said: “Groupe BPCE has completed the
first half of 2024 marked by a number of extremely significant
strategic developments. The upgrading of the Group's rating, now
unanimously ranked in the A+ category for its long-term credit
ratings, confirms the relevance of the financial management
decisions made over several months and Groupe BPCE's ability to
implemente its new strategic ambitions as presented towards the end
of June in the “VISION 2030” project.
The Group, already on the move, has launched
a new development momentum, characterized especially by several
external growth operations, such as the acquisition project
enabling Groupe BPCE to become the European leader in equipment
lease financing, or the steps taken to reinforce the multi-boutique
M&A network. The partnerships forged with leading players in
payments solutions or energy renovation also demonstrate our
ability to develop our activities as an open group.
Groupe BPCE recorded in the second quarter
the first rebound of its revenues year-on-year since end-2022.
Consequently, the group reports an increase in its half-year
results thanks to sustained commercial activity, both in retail
banking and insurance, whose businesses are beginning to benefit
from the new interest rate environment, and in its global
businesses with their very good performance. True to their capacity
for innovation, the Banques Populaires and Caisses d'Epargne have
strengthened their commercial offerings for first-time homebuyers
and confirmed once again their status as pioneers in offering their
clients the latest innovations in payment solutions. Our asset
management business has generated highly positive net inflows,
while income from our Corporate & Investment Banking arm has
continued to grow with closely managed regularity.
The Group's financial discipline is
illustrated by its tight control of costs in an inflationary
environment, its prudent risk policy, and the preservation of an
extremely high level of solvency.
Finally, six years after becoming the first
premium partner to commit to the Olympic & Paralympic Games,
Groupe BPCE and its companies are particularly pleased to have
shared the magic of the Games with the greatest number of people in
all the territories thanks to the Torch Relay, and to have
contributed the best of its banking and payment expertise to ensure
the success of this extraordinary sporting event. Today, it's time
for all our employees, clients, and cooperative shareholders to
share our enthusiasm and fully embrace the exceptional emotions
inspired by these games.”
The quarterly financial statements of Groupe
BPCE for the period ended June 30, 2024, approved by the Management
Board
at a meeting convened on July 30, 2024, were verified and reviewed
by the Supervisory Board, chaired by Eric Fougère, at a
meeting convened on August 1, 2024.
In this document, 2023 figures have
been restated on a pro-forma basis (see the annex
for the reconciliation of reported data to pro-forma
data).
Groupe BPCE
€m1
|
Q2-24 |
Q2-23 |
% change
vs. Q2-23 |
H1-24 |
H1-23 |
% change
vs. H1-23 |
|
Net banking income |
5,626 |
5,467 |
3% |
11,379 |
11,281 |
1% |
|
Operating expenses |
(4,008) |
(3,799) |
5% |
(8,159) |
(8,386) |
(3)% |
|
Gross operating income |
1,618 |
1,667 |
(3)% |
3,220 |
2,895 |
11% |
|
Cost of risk |
(560) |
(342) |
64% |
(942) |
(669) |
41% |
|
Income before tax |
1,124 |
1,337 |
(16)% |
2,358 |
2,305 |
2% |
|
Income tax |
(299) |
(353) |
(15)% |
(643) |
(777) |
(17)% |
|
Non-controlling interests |
(19) |
(12) |
55% |
(34) |
(22) |
55 % |
|
Net income – Group share |
806 |
973 |
(17)% |
1,681 |
1,506 |
12% |
|
Exceptional items |
(31) |
55 |
ns |
(60) |
18 |
ns |
|
Underlying net income2
– Group share |
837 |
918 |
(9)% |
1,741 |
1,488 |
17% |
|
Underlying cost to income ratio3 |
70.5 % |
69.8 % |
0.8 pp |
71.0 % |
74.0 % |
(3.0)pp |
1 Reported figures as far
as “Net income (Group share)”
2 “Underlying” means exclusive of exceptional items
3 The cost/income ratio of Groupe BPCE is calculated on
the basis of net banking income and operating expenses excluding
exceptional items. The calculations are detailed in the annex on
pages 17 and 22
1. Groupe
BPCE
Unless specified to the contrary, the financial data and
related comments refer to the reported results of the Group
and
business lines, changes express differences between Q2-24 and
Q2-23 and between H1-24 and H1-23.
Groupe BPCE's net banking
income, which stood at 5,626 million euros was up 3% vs.
Q2-23, and up 1% at 11,379 million euros vs. H1-23, driven by
dynamic commercial activity in all businesses.
Revenues from the Retail Banking &
Insurance business unit (RB&I) stood at 3,701 million
euros, up 2% YoY in Q2-24, and at 7,464 million euros, down 1% YoY
in H1-24. The Banques Populaires and Caisses d'Epargne achieved a
strong commercial performance, attracting 452,000 new
clients1 across all market segments since the beginning
of the year. Continued growth in the return on assets is driving an
increasingly positive trend in net interest margins, and commission
levels are progressing well; the net banking income generated by
the retail banking networks was down 2% YoY in H1-24, but up 2% YoY
in Q2-24. The Financial Solutions & Expertise
business unit enjoyed 4% revenue growth in H1-24, driven by dynamic
business with the retail banking networks and, notably, thanks to
the Leasing and Consumer credit business lines (respectively +14%
and +9% YoY growth in H1-24). The business activities of the
Digital & Payments business unit were very
dynamic. The Insurance business unit benefited
from very good momentum in Life Insurance.
The Global Financial Services
business unit reported revenues up 8% in Q2-24 to 1,983 million
euros, and up 6% in H1-24, to 3,916 million euros. In H1-24,
revenues generated by the Corporate & Investment
Banking business unit, driven by strong sales performance
across all business lines, came to a total of 2,235 million euros,
up 5% YoY. Asset & Wealth Management net
banking income rose by 8% YoY in H1-24. Assets under management are
up 6% YTD with a high level of long term net inflows and positive
market and FX effects.
Net interest income came to 3.5
billion euros in H1-24, down a limited 6% YoY.
Commissions, which stood at
5.3 billion euros in H1-24, were up 7% YoY.
Operating expenses rose by 5%
YoY to 4,008 million euros in Q2-24. In H1-24, they fell by 3% YoY
to 8,159 million euros.
The underlying cost/income
ratio3 came to 70.5% in Q2-24,
up 0.8pp, and 71.0% in H1-24, down 3.0pp.
Gross operating income came to
1,618 million euros in Q2-24, down 3% YoY, and stood at 3,220
million euros in H1-24, up 11% YoY.
Groupe BPCE's cost of risk
stood at -560 million euros, representing a 64% increase YoY in
Q2-24, and at -942 million euros, up 41% YoY in H1-24. These trends
reflect Groupe BPCE's position in the French economy and the
prudent provisioning policy.
Performing loans are rated ‘Stage 1’ or ‘Stage 2’,
while outstandings with an occurred risk are rated ‘Stage 3.’
1 64,500 additional active clients over
the past 6 months 2 The underlying cost/income ratio of
Groupe BPCE is calculated on the basis of net banking income and
operating expenses excluding exceptional items. The calculations
are detailed in the annex on pages 17 and 22.
For Groupe BPCE, the amount of
provisions for performing loans rated ‘Stage 1’ or ‘Stage
2’ corresponds to:
- in the quarter, to a reversal of 35
million euros in Q2-24 vs. a reversal of 229 million euros in
Q2-23,
- in the first six months of the
year, to a reversal of 180 million euros in H1-24 vs. a reversal of
159 million euros in H1-23.
Outstandings with an occurred risk,
rated ‘Stage 3’, correspond to:
- in the quarter, to an allocation of
595 million euros in Q2-24 compared with an allocation of 571
million euros in Q2-23,
- in the first six months of the
year, to an allocation of 1,122 million in H1-24 vs. an allocation
of 828 million euros in H1-23.
For Groupe BPCE in Q2-24, the cost of
risk stood at 26bps of gross customer
outstandings (16bps in Q2-23). This figure includes a reversal of
provisions on performing loans of 2bps (vs. a reversal of 11bps in
Q2-23) and an allocation to provisions for loans with an occurred
risk of 28bps vs. allocations of 27bps in Q2-23.
The cost of risk stood at 26bps for the
Retail Banking & Insurance business unit
(14bps in Q2-23), including a 1bp reversal of provisions for
performing loans (vs. a 10bp reversal in Q2-23) and a 27bp
allocation to provisions for loans with an occurred risk (vs. a
24bp allocation to provisions in Q2-23).
The cost of risk of the Corporate & Investment
Banking business unit came to 52bps
(54bps in Q2-23), including a 9bp reversal of provisions on
performing loans (vs. a 26bp reversal in Q2-23) and a 61bp
allocation to provisions for loans with an occurred risk (vs. an
80bp allocation in Q2-23).
In H1-24, the cost of risk for Groupe
BPCE stood at 22bps of gross customer
loans (16bps in H1-23). This figure includes a 4bp reversal of
provisions on performing loans (stable vs. H1-23) and a 26bp
allocation to provisions on loans with an occurred risk (vs. a 20bp
allocation to provisions in H1-23).
The cost of risk stood at 21bps for the
Retail Banking & Insurance business unit
(16bps in H1-23), including a 4bp reversal on performing loans
(stable vs. H1-23) and a 25bp allocation to provisions on loans
with an occurred risk (vs. a 20bp allocation to provisions in
H1-23).
The cost of risk of the Corporate & Investment
Banking business unit came to 42bps
(20bps in H1-23), including a 6bp reversal on performing loans (vs.
a 13bp reversal in H1-23) and a 47bp allocation to provisions on
loans with an occurred risk (vs. a 34bp allocation in H1-23).
The ratio of non-performing
loans to gross loan outstandings stood at
2.5% at June 30, 2024, up 0.1pp vs. end-December
2023.
Reported net income (Group
share) came to 1,681 million euros in H1-24, up 12%
YoY.
This item fell by 17% YoY in Q2-24 to 806 million euros. It also
fell by 22% YoY in Q1-24 (excluding SRF contributions), and by 29%
YoY in Q4-23.
Exceptional items had a negative impact on net
income (Group share) of -31 million euros in Q2-24 vs. +55 million
euros in Q2-23, and a negative impact of -60 million euros in H1-24
vs. +18 million euros in H1-23.
Underlying net
income1 amounted to 837
million euros in Q2-24, down 9% YoY, and to 1,741 million euros in
H1-24, up 17% YoY.
2. A Group with a
positive impact, mobilized for decarbonizing the economy by making
impact solutions accessible to all its clients
As a member of the Net Zero Banking Alliance (NZBA), Groupe BPCE
has reasserted in its VISION 2030 strategic plan its determination
to align the trajectory of its portfolios with the goal of carbon
neutrality by 2050. Accordingly, the Group has published its
decarbonization commitments for five new industrial sectors
(aluminum, aviation, commercial real estate, residential real
estate, and agriculture) and announced an extension of the scope of
its objectives in three sectors already covered (automotive, steel,
and cement). Groupe BPCE is also strengthening its commitments in
the power generation and oil & gas sectors and has announced a
decarbonization ambition covering the eleven most
emissions-intensive sectors2.
Groupe BPCE is committed to making impact
solutions accessible to all Banque Populaire & Caisse d'Epargne
clients:
- By partnering with Oney and Leroy
Merlin to offer their clients a turnkey experience with a
comprehensive, integrated solution. Customers will be able to
benefit from a comprehensive range of financial solutions,
including the interest-free eco-loan (Eco-Prêt à Taux
Zéro).
- By proposing energy renovation
solutions to preserve the value of household property assets: over
4 million unique visitors to the BP and CE’s digital module:
‘Advice and Sustainable Solutions.’
1 “Underlying” means exclusive of
exceptional items
2Given the non-significant amount of Natixis CIB's
dedicated financing of freight and passenger ships, Groupe BPCE has
not published its action plan for this particular scope.
3. Capital,
loss-absorbing capacity, liquidity and funding
3.1 CET1
ratio1
Groupe BPCE's CET1 ratio at end-June
2024 stood at an estimated level of 15.6%, unchanged
during the quarter. This stability can be explained by the
following impacts:
- Retained earnings: +18bps,
- Change in risk-weighted risks:
+3bps,
- A change in the prudential
backstop provision, Other Comprehensive Income
items and other adjustments:
-16bps,
- Other items: -4bps.
Groupe BPCE generated organic capital equal to
21bps during the quarter.
Groupe BPCE had an estimated buffer of
16.7 billion euros above the threshold for triggering the
maximum distributable amount (MDA) for equity
capital at the end of June 2024, while taking account of the
prudential requirements laid down by the ECB applicable on June 30,
2024.
3.2 TLAC
ratio1
The Total Loss-Absorbing Capacity (TLAC)
estimated at the end of June 2024 stands at 120.4 billion
euros1. The TLAC ratio, expressed as a percentage of
risk-weighted assets, stood at an estimated 26.3%2 at
end-June 2024 (without taking account of senior preferred debt for
the calculation of this ratio), well above the standard
requirements of 22.39%3 laid down by the Financial
Stability Board at June 30, 2024.
3.3 MREL
ratio1
Expressed as a percentage of risk-weighted
assets at June 30, 2024, Groupe BPCE's subordinated MREL
ratio2 (without taking account of senior preferred debt
for the calculation of this ratio) and total MREL ratio stood at
26.3%2 and 34.5% respectively, well above the minimum
requirements laid down by the SRB on June 30, 2024, of
22.39%3 and 27.29%3 respectively.
3.4 Leverage
ratio1
At June 30, 2024, the estimated leverage ratio
stood at 5.0%, well above the leverage ratio requirement at that
date.
3.5 Liquidity
reserves at a high level
The Liquidity Coverage Ratio (LCR) for Groupe
BPCE is well above the regulatory requirement of 100%, standing at
149% based on the average of end-of-month LCRs in the
2nd quarter of 2024.
The volume of liquidity reserves stood at 329 billion euros at the
end of June 2024, representing a coverage ratio of 190% of
short-term financial debts (including short-term maturities of
medium-/long-term financial debt).
3.6 MLT
funding plan: 80% of the 2024 plan already completed at June 28,
2024
For 2024, the size of the MLT funding plan,
excluding structured private placements and Asset Backed Securities
(ABS), has been set at 28.3 billion euros, broken down by type of
debt as follows:
- 8.5 billion euros in TLAC funding:
2.0 billion euros in Tier 2 and 6.5 billion euros in senior
non-preferred debt,
- 5.5 billion euros of senior
preferred debt,
- 14.3 billion euros in covered
bonds.
The target for ABS is 4 billion euros.
At June 28, 2024, Groupe BPCE had raised 22.5
billion euros, excluding structured private placements and ABS (80%
of the 28.3 billion euro program):
- 7.8 billion euros in TLAC funding:
1.6 billion euros in Tier 2 (80% of requirements) and 6.2 billion
euros in senior non-preferred debt (96% of requirements),
- 4.0 billion euros in senior
preferred debt (74% of requirements),
- 10.7 billion euros in covered bonds
(75% of requirements).
ABS issues amounted to 3.9 billion euros as at
June 28, 2024, i.e. 99% of the target.
Solvency, Total loss-absorbing capacity – see notes
on methodology
1 Estimated at June 30, 2024
2 Groupe BPCE has chosen to waive the possibility
offered by Article 72c (3) of the Capital Requirements Regulation
(CRR) to use senior preferred debt for compliance with its
TLAC/subordinated MREL requirements
3 Requirements as at June 30, 2024
4. Results of the
business lines
Unless specified to the contrary, the following financial data
and related comments refer to the reported results of the business
lines. Changes express differences between Q2-24 and
Q2-23.
4.1 Retail
Banking & Insurance
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
3,701 |
2% |
7,464 |
(1)% |
|
Operating expenses |
(2,456) |
0% |
(5,002) |
1% |
|
Gross operating income |
1,245 |
6% |
2,462 |
(5)% |
|
Cost of risk |
(475) |
88% |
(772) |
38% |
|
Income before tax |
831 |
(11)% |
1,765 |
(14)% |
|
Exceptional items |
(28) |
ns |
(53) |
ns |
|
Underlying Income before
tax2 |
859 |
(3) |
1,818 |
(11)% |
|
Underlying cost to income ratio3 |
65.6% |
(2.6)pp |
66.3% |
0.7pp |
Loan outstandings grew by 1%
YoY, reaching a total of 718 billion euros at the end of June 2024.
Over the year, outstandings remained stable for housing loans at
399 billion euros, were up 3% for equipment loans at 195 billion
euros, and up 4% for consumer loans at 41 billion euros.
At the end of June 2024, on-balance
sheet customer deposits & savings stood 676 billion
euros, up 18 billion euros YoY, with term accounts up 28% YoY and
regulated and unregulated passbook savings accounts up 1% YoY.
Net banking income for the
Retail Banking & Insurance business unit rose by 2% YoY to
3,701 million euros in Q2-24 and fell slightly by 1% in H1-24 to
7,464 million euros, benefiting from the positive impact of asset
repricing and higher commissions. These variations include 3%
growth in revenues for the Banque Populaire
network in Q2-24 and a 1% decline in H1-24, stable revenues for the
Caisse d'Épargne network in Q2-24 and a decline of
3% in H1-24.
The Financial Solutions &
Expertise business lines continued to benefit from strong
sales momentum, with revenues up 4% YoY in both Q2-24 and H1-24. In
the Insurance segment, revenues fell by 7% in
Q2-24 but remained stable in H1-24, driven by strong sales momentum
in Life Insurance. The Digital & Payments
business unit reported a 5% rise in revenues in Q2-24 and H1-24,
driven by card transactions and instant payments and the strong
improvement of margins for Oney.
Operating expenses remained
well under control YoY, stable in Q2-24 at 2,456 million euros, and
up only by 1% in H1-24 at 5,002 million euros.
The underlying cost/income
ratio3 was down YoY by 2.6pp
in Q2-24, to 65.6%, and up 0.7pp in H1-24 to 66.3%.
The business unit's gross operating
income rose by 6% YoY in Q2-24 to 1,245 million euros and
fell by 5% in H1-24 to 2,462 million euros.
The cost of risk came to
-475 million euros in Q2-24, up 88% YoY, and stood
at -772 million euros in H1-24, up 38%.
Income before tax for the
business unit totaled 831 million euros in Q2-24, down 11% YoY, and
came to 1,765 in H1-24, down 14%.
Underlying income before
tax2 totaled 859 million euros
in Q2-24, down 3% YoY, and stood at 1,818 million euros in H1-24,
down 11%.
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios are calculated on
the basis of net banking income and underlying operating
expenses
4.1.1
Banque
Populaire retail banking network
The Banque Populaire retail banking network is comprised of 14
cooperative banks (12 regional Banques Populaires along with CASDEN
Banque Populaire and Crédit Coopératif) and their subsidiaries,
Crédit Maritime Mutuel, and the Mutual Guarantee
Companies.
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
1,489 |
3% |
2,978 |
(1)% |
|
Operating expenses |
(1,025) |
1% |
(2,068) |
2% |
|
Gross operating income |
464 |
9% |
910 |
(7)% |
|
Cost of risk |
(228) |
x2 |
(353) |
46% |
|
Income before tax |
290 |
(12)% |
619 |
(19)% |
|
Exceptional items |
(11) |
ns |
(23) |
ns |
|
Underlying Income before
tax2 |
301 |
0% |
642 |
(14)% |
|
Underlying cost to income ratio3 |
68.1% |
(3.5)pp |
68.7% |
1.1pp |
Loan outstandings declined by
1% YoY to 299 billion euros at the end of June 2024.
On-balance sheet customer deposits & savings
increased by 9 billion euros YoY at the end of June 2024, with
growth in term accounts by +29% YoY and a 1% YoY increase in
regulated and unregulated passbook savings accounts.
Net banking income came to a
total of 1,489 million euros in Q2-24, up 3% YoY, including:
- 778 million euros in net interest
margin4,5,up 5% YoY,
- 718 million euros in
commissions5, up 5% YoY.
In H1-24, net banking income
totaled 2,978 million euros, down by a marginal 1% YoY.
Operating expenses, which
remained tightly managed, rose slightly by 1% YoY in Q2-24 to 1,025
million euros, and by 2% YoY in H1-24, to 2,068 million euros.
As a result, the underlying cost/income
ratio3 improved by 3.5pp in
Q2-24, to 68.1% and rose by 1.1pp in H1-24 to 68.7%.
Gross operating income enjoyed
9% YoY growth, rising to 464 million euros in Q2-24, and decreased
by 7% YoY in H1-24 to 910 million euros.
The cost of risk stood at -228
million euros in Q2-24 (multiplied by 2 YoY) and at -353 million
euros in H1-24 (+46%).
Income before tax came to 290
million euros in Q2-24 (-12% YoY) and stood at 619 million euros in
H1-24 (-19%).
Underlying income before
tax2 remained stable YoY at
301 million euros in Q2-24 and stood at 642 million euros in H1-24
(-14% YoY).
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
4 Excluding changes in provisions for home-purchase
savings schemes
5 Income on regulated savings has been restated to
account for the net interest margin and included under
commissions
4.1.2 Caisse
d’Epargne retail banking network
The Caisse d’Epargne retail banking network comprises 15
individual Caisses d’Epargne along with their
subsidiaries.
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
1,467 |
0% |
2,921 |
(3)% |
|
Operating expenses |
(1,038) |
0% |
(2,123) |
1% |
|
Gross operating income |
429 |
1% |
798 |
(11)% |
|
Cost of risk |
(176) |
x2 |
(276) |
25% |
|
Income before tax |
252 |
(26)% |
523 |
(22)% |
|
Exceptional items |
(16) |
ns |
(28) |
ns |
|
Underlying Income before
tax2 |
268 |
(12)% |
550 |
(15)% |
|
Underlying cost to income ratio3 |
69.7% |
(3.0)pp |
71.7% |
1.2pp |
Loan outstandings rose by 2%
YoY to 373 billion euros at the end of June 2024.
On-balance sheet customer deposits & savings
increased by 9 billion euros YoY, with growth in term accounts by
+27% YoY and an increase in regulated and unregulated passbook
savings accounts (+2% YoY).
Net banking income came to
1,467 million euros, stable YoY in Q2-24,
including:
- 667 million euros net interest
margin4,5 stable YoY,
- 819 million euros in
commissions5, up 5% YoY.
In H1-24, net banking income stood
at 2,921 million euros, down 3%.
Operating expenses, which
remained tightly managed, were stable YoY in Q2-24, at 1,038
million euros, and up by a marginal 1% YoY in H1-24, to stand at
2,123 million euros.
The underlying cost/income
ratio3 improved by 3.0pp YoY
to 69.7% in Q2-24 and rose 1.2pp to 71.7% in H1-24.
Gross operating income rose by
1% YoY to 429 million euros in Q2-24 and fell by 11% to 798 million
euros in H1-24.
The cost of risk stood at -176
million euros in Q2-24 (multipled by 2 YoY), and came to -276
million euros in H1-24, up 25%.
Income before tax came to 252
million euros in Q2-24 (-26% vs. Q2-23) and to 523 million euros in
H1-24 (-22% vs. H1-23).
Underlying income before
tax2 totaled 268 million euros
in Q2-24 (-12% vs. Q2-23) and 550 million euros in H1-24 (-15% vs.
H1-23).
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
4 Excluding changes in provisions for home-purchase
savings schemes
5 Income on regulated savings has been restated to
account for the net interest margin and included under
commissions
4.1.3 Financial
Solutions & Expertise
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
320 |
4% |
647 |
4% |
|
Operating expenses |
(154) |
2% |
(316) |
2% |
|
Gross operating income |
166 |
7% |
331 |
6% |
|
Cost of risk |
(22) |
15% |
(47) |
82% |
|
Income before tax |
143 |
6% |
285 |
(1)% |
|
Exceptional items |
0 |
ns |
0 |
ns |
|
Underlying Income before
tax2 |
143 |
5% |
285 |
(2)% |
|
Underlying cost to income
ratio3 |
48.1% |
(0.9)pp |
48.8% |
(0.6)% |
In Consumer credit, average
outstandings (personal loans and revolving credit) rose by 7%
YoY.
In the Leasing segment, continuing strong sales
momentum, particularly with the retail banking networks, resulted
in a sharp 10% YoY increase in average outstandings, driven chiefly
by equipment leasing (+17%).
In Factoring, demand for financing remained high
with the retail networks resulting, in Q2-24, in an increase in
factored sales of +6% vs. Q2-23.
The impact of a very sluggish residential real estate market on the
Surety & Financial Guarantees business line
led to a 40% YoY fall in gross premiums written in H1-24.
Net banking income for the
Financial Solutions & Expertise business unit was up 4% YoY, to
320 million euros in Q2-24 and 647 million euros in H1-24, driven
by strong performance achieved by the financing businesses.
Operating expenses were tightly
managed YoY, with limited 2% growth in Q2-24 to 154 million euros
and in H1-24 to 316 million euros, in line with revenue trends,
leading to a positive jaws effects in both Q2-24 and H1-24.
The underlying cost/income
ratio3 improved by 0.9pp YoY
in Q2-24 to 48.1% and improved by 0.6pp YoY in H1-24 to 48.8%.
Gross operating income in Q2-24
rose by 7% YoY to 166 million euros, and by 6% YoY in H1-24 to 331
million euros.
The cost of risk came to -22
million euros in Q2-24, up 15% YoY, and stood at -47 million euros
in H1-24 (+82% YoY).
Income before tax came to 143
million euros in Q2-24, up 6% YoY, and to 285 million euros in
H1-24, down 1% YoY.
Underlying income before
tax2 totaled 143 million euros
in Q2-24, up 5% YoY, and 285 million euros in H1-24, down 2%
YoY.
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
4.1.4 Insurance1
The results presented below concern the Insurance business unit
held directly by BPCE since March 1, 2022.
|
€m2 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
118 |
(7)% |
306 |
0% |
|
Operating expenses3 |
(25) |
(32)% |
(67) |
(16)% |
|
Gross operating income |
93 |
4% |
239 |
6% |
|
Income before tax |
99 |
6% |
247 |
7% |
|
Exceptional items |
0 |
ns |
0 |
ns |
|
Underlying Income before
tax4 |
99 |
5% |
247 |
6% |
|
Underlying cost to income ratio5 |
21.3% |
(6.8)pp |
21.9% |
(3.2)% |
In Q2-24,
premiums6 fell by 16% YoY to 4.6
billion euros, with a 19% decline in Life & Personal Protection
products and a 7% increase in Property & Casualty insurance. In
H1-24, premiums reached 10.1 billion euros, up 7% YoY, thanks to
dynamic sales momentum, notably in Life insurance.
Life insurance assets under
management6 reached 98.8 billion euros at the
end of June 2024, enjoying 7% growth since the end of December
2023. Gross inflows6 stood at 8.3 billion euros in
H1-24. Unit-linked funds accounted for 36% of assets under
management6 at end-June 2024, up 4pp YoY, and 55% of
gross inflows6 in H1-24, up 3pp YoY.
In Property & Casualty insurance, the
customer equipment rate for both retail banking networks reached
34.6%7 at end-June 2024, up 0.4pp YtD.
The P&C combined ratio,
which stood at 99.9% in H1-24, has improved by 2.3pp since the
beginning of the year.
Net banking income fell 7% YoY
in Q2-24 to 118 million euros and, in H1-24, remained stable YoY at
306 million euros.
Operating expenses fell by 32%
YoY in Q2-24 to 25 million euros, and by 16% in H1-24 to 67 million
euros.
The underlying cost/income
ratio5 improved by 6.8pp YoY
to 21.3% in Q2-24, and by 3.2pp in H1-24 to 21.9%.
Gross operating income rose by
4% YoY in Q2-24 and by 6% YoY in H1-24, to reach a total of 93
million euros and 239 million euros respectively.
Income before tax also rose to
99 million euros in Q2-24 (+6% YoY) and to 247 million euros in
H1-24 (+7% YoY).
Underlying income before
tax4 was also up, rising to 99
million euros in Q2-24 (+5% YoY) and to 247 million euros in H1-24
(+6% YoY).
1 BPCE Assurances
2 Reported figures until “Income before tax”
3 “Operating expenses” corresponds to “non-attributable
expenses” under IFRS 17, i.e. all costs that are not directly
attributable to insurance contracts
4 “Underlying” means exclusive of exceptional items
5 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
6 Excluding the reinsurance treaty with CNP
Assurances
7 Scope: combined individual customers of the BP and CE
networks
4.1.5
Digital & Payments
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
214 |
5% |
429 |
5% |
|
o/w Payments |
120 |
6% |
241 |
5% |
|
o/w Oney |
94 |
5% |
188 |
5% |
|
Operating expenses |
(159) |
(2)% |
(319) |
(2)% |
|
o/w Payments |
(98) |
2% |
(193) |
1% |
|
o/w Oney |
(62) |
(8)% |
(126) |
(6)% |
|
Gross operating income |
55 |
37% |
110 |
30% |
|
Cost of risk |
(32) |
(21)% |
(63) |
(13)% |
|
Income before tax |
22 |
ns |
46 |
ns |
|
Exceptional items |
(1) |
ns |
(2) |
ns |
|
Underlying Income before tax
2 |
24 |
x5 |
49 |
x3 |
|
Underlying cost to income ratio3 |
74.3% |
(1.1)pp |
74.3% |
(1.7)pp |
Payments
Net banking income was up 6% YoY in Q2-24 and up
5% YoY in H1-24. Operating expenses were tightly managed, up 2% YoY
in Q2-24 and by just 1% in H1-24 vs. H1-23.
In Payment Solutions, the number of card
transactions rose by 5% vs. H1-23. Growth in mobile (+60% vs.
H1-23) and instant payments continued (+55% vs. H1-23), and the
rollout of Android POS terminals gathered pace (multiplied by a
factor of 2.2).
Payplug recorded strong growth in business
volumes, mainly driven by SMEs (+24% vs. H1-23).
Oney Bank
Net banking income rose 5% vs. H1-23, thanks to
improved margin rates and the effect of asset repricing.
Operating expenses were well under control, down 6%
on H1-23. This led to a significant improvement in the underlying
cost/income ratio of 2.5 pp vs. H1-23.
Business activities remained solid, with Oney
maintaining its leadership in BNPL4 in France.
Digital & IA
At the end of June 2024, 10 million clients were
active on Banque Populaire and Caisse d'Epargne mobile applications
(up 4% vs. end-June 2023).
With Transformative AI, 6 million documents were
processed automatically (multiplied by a factor of 2 vs.
H1-23).
12,000 users were active on the in-house generative AI solution and
over 1.8 million prompts were generated in H1-24. Over 5,000
employees have been trained in the use of AI solutions.
Net banking income for the Digital &
Payments business unit rose by 5% in Q2-24 and H1-24, to
214 million euros and 429 million euros respectively.
The business unit's operating
expenses declined by 2% in Q2-24 and H1-24, to 159 million
euros and 319 million euros respectively.
This resulted in a 1.1pp YoY decrease in the
underlying cost/income
ratio3 which stood at 74.3% in
Q2-24, and a 1.7pp YoY decrease to 74.3% in H1-24.
Gross operating income rose by
37% to 55 million euros in Q2-24, and by 30% to 110 million euros
in H1-24.
The cost of risk fell by 21%
YoY in Q2-24 to -32 million euros, and by 13% YoY in H1-24 to -63
million euros.
Income before tax stood at 22
million euros in Q2-24 and at 46 million euros in H1-24.
Underlying income before
tax2 came to 24 million euros
in Q2-24, up sharply on a YoY basis, and stood at 49 million euros
in H1-24, also up sharply.
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
4 Buy Now Pay Later
4.2 Global Financial
Services
The GFS business unit includes the Asset & Wealth
Management activities and the Corporate & Investment Banking
activities of Natixis.
|
€m1 |
|
Q2-24 |
% change vs. Q2-23 |
% change constant FX |
H1-24 |
% change vs. Q2-23 |
% change constant FX |
|
Net banking income |
|
1,983 |
8% |
8% |
3,916 |
6% |
6% |
|
o/w Asset & Wealth Management CIB |
|
850 |
10% |
9% |
1,681 |
8% |
8% |
|
o/w CIB |
|
1,133 |
7% |
7% |
2,235 |
5% |
5% |
|
Operating expenses |
|
(1,366) |
6% |
6% |
(2,735) |
5% |
6% |
|
o/w CIB |
|
(694) |
7% |
6% |
(1,399) |
7% |
7% |
|
o/w Asset & Wealth Management |
|
(673) |
6% |
5% |
(1,335) |
4% |
4% |
|
Gross operating income |
|
617 |
14% |
13% |
1,181 |
8% |
9% |
|
Cost of risk |
|
(82) |
(10)% |
|
(141) |
x2.2 |
|
|
Income before tax |
|
539 |
19% |
|
1,048 |
(3)% |
|
|
Exceptional items |
|
0 |
ns |
|
0 |
ns |
|
|
Underlying Income before
tax2 |
|
539 |
18% |
|
1,048 |
(4)% |
|
|
Underlying cost to income
ratio3 |
|
68.9% |
(1.3)pp |
|
69.8% |
(0.2)pp |
|
GFS revenues rose by 8% YoY in
Q2-24 and by 6% in H1-24, to 1,983 million euros (+8% at constant
exchange rates) and to 3,916 million euros (+6% at constant
exchange rates) respectively. These trends can be attributed to the
strong sales performance achieved by our global business lines.
Corporate & Investment Banking revenues rose
by 5% YoY in H1-24 to 2,235 million euros, thanks to the
diversification strategy and the strong performance of Global
Finance by 15% (+18% YoY in Q2-24), Investment Banking and M&A
by 18% (+20% YoY in Q2-24) in addition to Global Markets with 4%
(+9% YoY in Q2-24).
Revenues generated by the Asset & Wealth Management
business rose by 8% YoY in H1-24. Assets under management
are up 6% YTD with a high level of long term net inflows and
positive market and FX effects.
Operating expenses rose by 6%
YoY in Q2-24 and by 5% in H1-24, to 1,366 million euros (+6% at
constant exchange rates) and to 2,735 million euros (+6% at
constant exchange rates) respectively.
Operating expenses incurred by the Corporate &
Investment Banking business unit in Q2-24 rose by 7% YoY
driven by business development and investments (notably in
M&A). Asset & Wealth Management expenses
rose by 6% in line with revenue growth, leading to a positive jaws
effect in Q2-24, resulting in an improvement in the underlying
cost/income ratio of 2.7pp YoY vs. Q2-23.
The underlying cost/income
ratio3 stood at 68.9% in Q2-24
and at 69.8% in H1-24, down 1.3pp and 0.2pp respectively YoY.
Gross operating income rose by
14% YoY in Q2-24 to 617 million euros (+13% at constant exchange
rates), and by 8% in H1-24 to 1,181 million euros (+9% at constant
exchange rates).
The cost of risk was down 10%
YoY at -82 million euros in Q2-24; it rose in H1-24 (multiplied by
a factor of 2.2) to -141 million euros.
Income before tax rose by 19%
YoY to 539 million euros in Q2-24, and fell by 3% to 1,048 million
euros in H1-24.
Underlying income before
tax2 in Q2-24 was 539 million
euros, up 18% YoY, and 1,048 million euros in H1-24, down 4%.
1 Reported figures until “Income
before tax”
2 ”Underlying” means exclusive of exceptional items
expenses
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating
4.2.1 Corporate
& Investment Banking
The Corporate & Investment Banking (CIB) business unit
includes the Global Markets, Global Finance, Investment Banking and
M&A activities of Natixis.
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
1,133 |
7% |
2,235 |
5% |
|
Operating expenses |
(694) |
7% |
(1,399) |
7% |
|
Gross operating income |
439 |
8% |
836 |
2% |
|
Cost of risk |
(91) |
1% |
(145) |
x2.1 |
|
Income before tax |
352 |
11% |
698 |
(8)% |
|
Exceptional items |
0 |
ns |
0 |
ns |
|
Underlying Income before
tax2 |
352 |
11% |
698 |
(8)% |
|
Underlying cost to income
ratio3 |
61.2% |
(0.4)pp |
62.6% |
1.0pp |
Global Markets revenues were up
9% YoY to 555 million euros in Q2-24. Revenues generated by the
Equity business came to 212 million euros in Q2-24, with robust
business conducted with our clients. FIC-T revenues were up
12% YoY to 343 million euros in Q2-24, driven by strong Fixed
Income performance (+16% YoY) across all asset classes.
Global finance revenues were up
18% YoY to 462 million euros in Q2-24, thanks to sustained momentum
in Real assets and Trade Finance.
Investment Banking activities,
generating revenues of 78 million euros in Q2-24, enjoyed a
record-breaking quarter, with 38% YoY growth, driven by Acquisition
& Strategic Finance and Strategic Equity Capital Markets.
The M&A businesses continued to perform well,
with revenues up 6% in Q2-24 to 76 million euros.
Net banking income generated by
the Corporate & Investment Banking business unit rose by 7% YoY
in Q2-24 and by 5% in H1-24, to 1,133 million euros and 2,235
million euros respectively.
Operating expenses rose by 7%
YoY in Q2-24 to 694 million euros, and by 7% in H1-24 to 1,399
million euros.
The underlying cost/income
ratio3 improved by
0.4pp to 61.2% YoY in Q2-24 and increased by 1.0pp to 62.6% in
H1-24.
Gross operating income rose by
8% YoY in Q2-24 to 439 million euros, and by 2% in H1-24 to 836
million euros.
The cost of risk came to -91
million euros, up 1% YoY in Q2-24, and -145 million euros,
multiplied by a factor of 2.1 in H1-24.
Income before tax was up 11%
YoY to 352 million euros in Q2-24 and declined by 8% to 698 million
euros in H1-24.
Underlying income before
tax2 was up 11% YoY to 352
million euros in Q2-24, and down 8% to 698 million euros in
H1-24.
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
4.2.2 Asset
& Wealth Management
The business unit includes the Asset & Wealth Management
activities of Natixis.
|
€m1 |
Q2-24 |
% change
vs. Q2-23 |
H1-24 |
% change
vs. H1-23 |
|
Net banking income |
850 |
10% |
1,681 |
8% |
|
Operating expenses |
(673) |
6% |
(1,335) |
4% |
|
Gross operating income |
178 |
30% |
346 |
26% |
|
Income before tax |
187 |
37% |
350 |
9% |
|
Exceptional items |
0 |
ns |
0 |
ns |
|
Underlying Income before
tax2 |
187 |
33% |
350 |
5% |
|
Underlying cost to income
ratio3 |
79.1% |
(2.7)pp |
79.4% |
(2.1)pp |
In Asset Management, assets under
management4 reached a total of
1,232 billion euros at the end of June 2024, up 6% since the
beginning of the year, with a high level of inflows on long-term
products and buoyed up by positive market and currency effects.
Net inflows in Asset
Management4 in Q2-24 reached 11 billion euros and in
H1-24 amounted to 17 billion euros, chiefly thanks to Fixed-income
products from Loomis Sayles and DNCA.
At the end of June 2024, the Asset Management
business unit recorded robust fund performances:
77% of rated funds were ranked in the 1st and
2nd quartiles over a 5-year time horizon, compared with
74% at the end of June 2023 (source: Morningstar).
In Asset Management4, the
total fee rate (excluding performance fees) in
H1-24 was 25.1 bp (+0.1bp YoY), and 36.6bps if insurance-driven
asset management is excluded (+1.3bps YoY).
Net banking income for the
Asset & Wealth Management business unit rose by 10% YoY in
Q2-24 to 850 million euros, and by 8% YoY in H1-24 to 1,681 million
euros.
Operating expenses came to a
total of 673 million euros, up 6% YoY in Q2-24, and rose to 1,335
million euros, up 4% YoY in H1-24.
The underlying cost/income
ratio3 improved by 2.7pp YoY
in Q2-24 to 79.1%, and by 2.1pp YoY to 79.4% in H1-24.
Gross operating income totaled
178 million euros in Q2-24, up 30% YoY, and 346 million euros in
H1-24, up 26% YoY.
income before tax stood at 187
million euros in Q2-24 (+37% vs. Q2-23), and at 350 million euros
in H1-24 (+9% vs. H1-23).
Underlying income before
tax2 was up 33% YoY to 187
million euros in Q2-24, and up 5% YoY to 350 million euros in
H1-24.
1 Reported figures until “Income
before tax”
2 “Underlying” means exclusive of exceptional items
3 The business line cost/income ratios have been
calculated on the basis of net banking income and underlying
operating expenses
4 Asset Management: Europe includes Dynamic Solutions
and Vega IM; North America includes WCM IM; excluding Wealth
Management
ANNEXES
Notes on methodology
Presentation on the pro-forma quarterly
results
The 2023 quarterly series are presented pro
forma with changes in standards and organization:
The sectoral reallocation of the results of the private equity
activities of the entities BP Développement & CE Développement
from Corporate center to RB&I and GFS divisions;
The new management standards adopted by Natixis (including the
normative allocation of capital to the business lines) within the
GFS division.
The main evolutions impact RB&I, GFS and the Corporate
center.
The data for 2023 has been recalculated to obtain a like-for-like
basis of comparison.
The quarterly series of Groupe BPCE remain unchanged.
The tables showing the transition from reported 2023 to pro-forma
2023 are presented on annexes.
Exceptional items
Exceptional items and the reconciliation of the
reported income statement to the underlying income statement of
Groupe BPCE are detailed in the annexes.
Net banking income
Customer net interest income, excluding
regulated home savings schemes, is computed on the basis of
interest earned from transactions with customers, excluding net
interest on centralized savings products (Livret A, Livret
Développement Durable, Livret Épargne Logement passbook savings
accounts) in addition to changes in provisions for regulated home
purchase savings schemes. Net interest on centralized savings is
assimilated to commissions.
Operating expenses
Operating expenses correspond to the aggregate
total of the “Operating Expenses” (as presented in the Group’s
registration document, note 4.7 appended to the consolidated
financial statements of Groupe BPCE) and “Depreciation,
amortization and impairment for property, plant and equipment and
intangible assets.”
Cost/income ratio
Groupe BPCE's cost/income ratio is calculated on
the basis of net banking income and operating expenses excluding
exceptional items. The calculations are detailed in the
annexes.
Business line cost/income ratios are calculated on the basis of
underlying net banking income and operating expenses.
Cost of risk
The cost of risk is expressed in basis points
and measures the level of risk per business line as a percentage of
the volume of loan outstandings; it is calculated by comparing net
provisions booked with respect to credit risks of the period to
gross customer loan outstandings at the beginning of the
period.
Loan outstandings and deposits &
savings
Restatements regarding transitions from book
outstandings to outstandings under management are as follows:
Loan outstandings: the scope of outstandings under management does
not include securities classified as customer loans and receivables
and other securities classified as financial operations,
Deposits & savings: the scope of outstandings under management
does not include debt securities (certificates of deposit and
savings bonds).
Capital Adequacy
Common Equity Tier 1 is
determined in accordance with the applicable CRR II/CRD IV rules,
after deductions.
Additional Tier-1 capital takes account of
subordinated debt issues that have become non-eligible and subject
to ceilings at the phase-out rate in force.
The leverage ratio is calculated in accordance
with the applicable CRR II/CRD V rules. Centralized outstandings of
regulated savings are excluded from the leverage exposures as are
Central Bank exposures for a limited period of time (pursuant to
ECB decision 2021/27 of June 18, 2021).
Total loss-absorbing
capacity
The amount of liabilities eligible for inclusion
in the numerator used to calculate the Total Loss-Absorbing
Capacity (TLAC) ratio is determined by article 92a of CRR. Please
note that a quantum of Senior Preferred securities has not been
included in our calculation of TLAC.
This amount is consequently comprised of the 4 following items:
- Common Equity Tier 1 in accordance
with the applicable CRR II/CRD IV rules,
- Additional Tier-1 capital in
accordance with the applicable CRR II/CRD IV rules,
- Tier-2 capital in accordance with
the applicable CRR II/CRD IV rules,
- Subordinated liabilities not
recognized in the capital mentioned above and whose residual
maturity is greater than 1 year, namely:
- The share of additional Tier-1
capital instruments not recognized in common equity (i.e. included
in the phase-out),
- The share of the prudential
discount on Tier-2 capital instruments whose residual maturity is
greater than 1 year,
- The nominal amount of Senior
Non-Preferred securities maturing in more than 1 year.
Liquidity
Total liquidity reserves comprise the
following:
- Central bank-eligible assets
include: ECB-eligible securities not eligible for the LCR, taken
for their ECB valuation (after ECB haircut), securities retained
(securitization and covered bonds) that are available and
ECB-eligible taken for their ECB valuation (after ECB haircut) and
private receivables available and eligible for central bank funding
(ECB and the Federal Reserve), net of central bank funding,
- LCR eligible assets comprising the
Group’s LCR reserve taken for their LCR valuation,
- Liquid assets placed with central
banks (ECB and the Federal Reserve), net of US Money Market Funds
deposits and to which fiduciary money is added.
Short-term funding corresponds to funding with
an initial maturity of less than, or equal to, 1 year and the
short-term maturities of medium-/long-term debt correspond to debt
with an initial maturity date of more than 1 year maturing within
the next 12 months.
Customer deposits are subject to the following adjustments:
- Addition of security issues placed
by the Banque Populaire and Caisse d’Epargne retail banking
networks with their customers, and certain operations carried out
with counterparties comparable to customer deposits
- Withdrawal of short-term deposits
held by certain financial customers collected by Natixis in pursuit
of its intermediation activities.
Business line indicators – BP & CE
networks
Average rate (%) for residential
mortgages: the average client rate for residential
mortgages corresponds to the weighted average of actuarial rates
for committed residential mortgages, excluding ancillary items
(application fees, guarantees, creditor insurance). The rates are
weighted by the amounts committed (offers made, net of
cancellations) over the period under review. The calculation is
based on aggregate residential mortgages, excluding zero interest
rate loans.
Average rate (%) for consumer loans: the average
client rate for consumer loans corresponds to the weighted average
of the actuarial rates for committed consumer loans, excluding
ancillary items (application fees, guarantees, creditor insurance).
The rates are weighted by the amounts committed (offers made net of
cancellations) over the period under review. The calculation is
based on the scope of amortizable consumer loans, excluding
overdraft and revolving loans.
Average rate (%) for Equipment leasing: the
average client rate is the average of the nominal rates
(refinancing rate + margin, weighted by the amount of
financing).
Digital indicators
The number of active customers using
mobile apps corresponds to the number of customers who
have made at least one visit via one mobile apps over one
month.
The number of documents checked automatically
corresponds to the number of documents transmitted by customers
through their digital spaces or in a physical branch and checked
automatically: eligibility for the LEP popular passbook savings
account and customer intelligence documents (KYC) for consumer
loans, mortgages (digital) and new business relationships (digital
and physical branches).
The Digital NPS is the recommendation score
awarded by customers on the digital customer spaces weighted
according to the weight of the spaces (web/mobile). It corresponds
to the customer's net promoter score ranging between -100 and +100.
The NPS is calculated over a sliding 3-month period.
Reconciliation of 2023 data to pro forma
data
|
Retail banking and Insurance |
Q1-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
3,891 |
(2,496) |
1,107 |
(269) |
840 |
|
Sectoral reallocation |
12 |
(1) |
11 |
0 |
11 |
|
Pro forma figures |
3,903 |
(2,497) |
1,118 |
(269) |
851 |
|
Global Financial Services |
Q1-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
1,822 |
(1,303) |
590 |
(146) |
432 |
|
Sectoral reallocation |
0 |
0 |
0 |
0 |
0 |
|
New rules |
32 |
(2) |
30 |
(4) |
26 |
|
Pro forma figures |
1,854 |
(1,305) |
621 |
(151) |
458 |
|
Corporate center |
Q1-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
102 |
(788) |
(729) |
(10) |
(739) |
|
Sectoral reallocation |
(12) |
1 |
(11) |
0 |
(11) |
|
New rules |
(32) |
2 |
(30) |
4 |
(26) |
|
Pro forma figures |
57 |
(785) |
(771) |
(5) |
(776) |
|
Retail banking and Insurance |
Q2-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
3,655 |
(2,459) |
952 |
(224) |
729 |
|
Sectoral reallocation |
(15) |
(1) |
(15) |
(0) |
(15) |
|
Pro forma figures |
3,640 |
(2,460) |
936 |
(224) |
713 |
|
Global Financial Services |
Q2-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
1,798 |
(1,282) |
429 |
(115) |
300 |
|
Sectoral reallocation |
(0) |
(0) |
(0) |
(0) |
(0) |
|
New rules |
31 |
(5) |
26 |
(3) |
22 |
|
Pro forma figures |
1,829 |
(1,287) |
455 |
(118) |
322 |
|
Corporate center |
Q2-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
13 |
(58) |
(44) |
(14) |
(56) |
|
Sectoral reallocation |
15 |
1 |
16 |
0 |
16 |
|
New rules |
(31) |
5 |
(26) |
3 |
(22) |
|
Pro forma figures |
(3) |
(52) |
(54) |
(10) |
(63) |
|
Retail banking and Insurance |
Q3-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
3,721 |
(2,358) |
1,072 |
(268) |
799 |
|
Sectoral reallocation |
(13) |
(1) |
(14) |
0 |
(14) |
|
Pro forma figures |
3,709 |
(2,359) |
1,058 |
(268) |
785 |
|
Global Financial Services |
Q3-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
1,736 |
(1,279) |
444 |
(114) |
319 |
|
Sectoral reallocation |
(0) |
(0) |
(0) |
0 |
(0) |
|
New rules |
31 |
(4) |
27 |
(4) |
23 |
|
Pro forma figures |
1,767 |
(1,283) |
470 |
(118) |
341 |
|
Corporate center |
Q3-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
(3) |
(175) |
(176) |
(23) |
(200) |
|
Sectoral reallocation |
13 |
1 |
14 |
0 |
14 |
|
New rules |
(31) |
4 |
(27) |
4 |
(23) |
|
Pro forma figures |
(21) |
(170) |
(189) |
(19) |
(210) |
|
Retail banking and Insurance |
Q4-23 |
|
|
|
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
|
|
|
Reported figures |
3,557 |
(2,497) |
395 |
(122) |
294 |
|
|
|
|
Sectoral reallocation |
19 |
(1) |
18 |
(0) |
18 |
|
|
|
|
Pro forma figures |
3,576 |
(2,499) |
413 |
(122) |
312 |
|
|
|
| |
|
|
|
|
|
|
|
Global Financial Services |
Q4-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
1,874 |
(1,389) |
391 |
(118) |
255 |
|
Sectoral reallocation |
0 |
(1) |
(0) |
(0) |
(0) |
|
New rules |
33 |
(4) |
29 |
(3) |
26 |
|
Pro forma figures |
1,908 |
(1,394) |
420 |
(121) |
280 |
|
Corporate center |
Q4-23 |
|
€m |
Net banking income |
Operating expenses |
Income before tax |
Income
tax |
Net
income |
|
Reported figures |
31 |
(243) |
(249) |
81 |
(168) |
|
Sectoral reallocation |
(20) |
2 |
(18) |
0 |
(18) |
|
New rules |
(33) |
4 |
(29) |
3 |
(26) |
|
Pro forma figures |
(22) |
(237) |
(296) |
84 |
(211) |
Q4-24 & Q4-23 results:
reconcialiation of reported data to alternative performance
measures
|
€m |
|
Net banking income |
Operating expenses |
Cost of
risk |
Gains or
losses on
other assets |
Income
before tax |
Net income
- Group share |
|
Reported Q2-24 results |
|
5,626 |
(4,008) |
(560) |
59 |
1,124 |
806 |
|
Transformation and reorganization costs |
Business lines/Corporate center |
1 |
(41) |
|
|
(41) |
(30) |
|
Disposals |
Corporate center |
|
|
|
(1) |
(1) |
(1) |
|
Q2-24 results excluding exceptional items |
|
5,625 |
(3,967) |
(560) |
61 |
1,166 |
837 |
|
€m |
|
Net banking income |
Operating expenses |
Cost of
risk |
Gains or
losses on
other assets |
Income
before tax |
Net income
- Group share |
|
Pro forma reported Q2-23 results |
|
5,467 |
(3,799) |
(342) |
2 |
1,337 |
973 |
|
Transformation and reorganization costs |
Business lines/Corporate center |
2 |
(48) |
1 |
|
(46) |
(32) |
|
Disposals |
Corporate center |
|
|
|
(1) |
(1) |
(1) |
|
Litigations |
Business lines/Corporate center |
87 |
|
|
|
87 |
87 |
|
Pro forma Q2-23 results excluding exceptional
items |
|
5,377 |
(3,751) |
(343) |
2 |
1,297 |
918 |
2024 & 2023 results: reconcialiation of
reported data to alternative performance measures
|
€m |
|
Net banking income |
Operating expenses |
Cost of
risk |
Gains or
losses on
other assets |
Income
before tax |
Net income
- Group share |
|
Reported H1-24 results |
|
11,379 |
(8,159) |
(942) |
(59) |
2,358 |
1,681 |
|
Transformation and reorganization costs |
Business lines/Corporate center |
1 |
(79) |
|
|
(78) |
(58) |
|
Disposals |
Corporate center |
|
|
|
(2) |
(2) |
(1) |
|
H1-24 results excluding exceptional items |
|
11,378 |
(8,080) |
(942) |
62 |
2,438 |
1,741 |
|
€m |
|
Net banking income |
Operating expenses |
Cost of
risk |
Gains or
losses on
other assets |
Income
before tax |
Net income
- Group share |
|
Pro forma reported H1-23 results |
|
11,281 |
(8,386) |
(669) |
51 |
2,305 |
1,506 |
|
Transformation and reorganization costs |
Business lines/Corporate center |
6 |
(104) |
3 |
|
(95) |
(68) |
|
Disposals |
Corporate center |
|
|
|
(1) |
(1) |
(1) |
|
Litigations |
Business lines/Corporate center |
87 |
|
|
|
87 |
87 |
|
Pro forma H1-23 results excluding exceptional
items |
|
11,188 |
(8,282) |
(671) |
52 |
2,314 |
1,488 |
Groupe BPCE: underying cost to income
ratio
|
€m |
Net banking income |
Operating expenses |
Underlying
cost income ratio |
|
Q2-24 reported figures |
5,626 |
(4,008) |
|
|
Impact of exceptional items |
1 |
(41) |
|
|
Q2-24 underlying figures |
5,625 |
(3,967) |
70.5% |
|
€m |
Net banking income |
Operating expenses |
Underlying
cost income ratio |
|
Q2-23 Pro forma reported figures |
5,467 |
(3,799) |
|
|
Impact of exceptional items |
89 |
(48) |
|
|
Q2-23 Pro forma underlying figures |
5,377 |
(3,751) |
69.8% |
Groupe BPCE: underying cost to income
ratio
|
€m |
Net banking income |
Operating expenses |
Underlying
cost income ratio |
|
H1-24 reported figures |
11,379 |
(8,159) |
|
|
Impact of exceptional items |
1 |
(79) |
|
|
H1-24 underlying figures |
11,378 |
(8,080) |
71.0% |
|
€m |
Net banking income |
Operating expenses |
Underlying
cost income ratio |
|
H1-23 Pro forma reported figures |
11,281 |
(8,386) |
|
|
Impact of exceptional items |
93 |
(104) |
|
|
H1-23 Pro forma underlying figures |
11,188 |
(8,282) |
74.0% |
Groupe BPCE: quarterly income statement
per business line
| |
RETAIL BANKING
& INSURANCE |
GLOBAL FINANCIAL SERVICES |
CORPORATE CENTER |
GROUPE
BPCE |
|
€m |
Q2-24 |
Q2-23 |
Q2-24 |
Q2-23 |
Q2-24 |
Q2-23 |
Q2-24 |
Q2-23 |
% |
|
Net banking income |
3,701 |
3,640 |
1,983 |
1,829 |
(58) |
(3) |
5,626 |
5,467 |
3% |
|
Operating expenses |
(2,456) |
(2,460) |
(1,366) |
(1,287) |
(186) |
(52) |
(4,008) |
(3,799) |
5% |
|
Gross operating income |
1,245 |
1,180 |
617 |
542 |
(244) |
(55) |
1,618 |
1,667 |
(3)% |
|
Cost of risk |
(475) |
(252) |
(82) |
(91) |
(2) |
1 |
(560) |
(342) |
64% |
|
Income before tax |
831 |
936 |
539 |
455 |
(245) |
(54) |
1,124 |
1,337 |
(16)% |
|
Income tax |
(189) |
(224) |
(141) |
(118) |
30 |
(10) |
(299) |
(353) |
(15)% |
|
Non-controlling interests |
(5) |
1 |
(14) |
(14) |
0 |
1 |
(19) |
(12) |
55% |
|
Net income – Group share |
637 |
713 |
384 |
322 |
(215) |
(63) |
806 |
973 |
(17)% |
Groupe BPCE: half-year income statement
per business line
| |
RETAIL BANKING
& INSURANCE |
GLOBAL FINANCIAL SERVICES |
CORPORATE CENTER |
GROUPE
BPCE |
|
€m |
H1-24 |
H1-23 |
H1-24 |
H1-23 |
H1-24 |
H1-23 |
H1-24 |
H1-23 |
% |
|
Net banking income |
7,464 |
7,543 |
3,916 |
3,683 |
(1) |
55 |
11,379 |
11,281 |
1% |
|
Operating expenses |
(5,002) |
(4,957) |
(2,735) |
(2,592) |
(422) |
(837) |
(8,159) |
(8,386) |
(3)% |
|
Gross operating income |
2,462 |
2,586 |
1,181 |
1,091 |
(423) |
(782) |
3,220 |
2,895 |
11% |
|
Cost of risk |
(772) |
(560) |
(141) |
(64) |
(30) |
(44) |
(942) |
(669) |
40% |
|
Income before tax |
1,765 |
2,054 |
1,048 |
1,075 |
(455) |
(825) |
2,358 |
2,305 |
2% |
|
Income tax |
(412) |
(493) |
(273) |
(269) |
43 |
(16) |
(643) |
(777) |
(17)% |
|
Non-controlling interests |
(7) |
3 |
(26) |
(26) |
0 |
1 |
(34) |
(22) |
55% |
|
Net income – Group share |
1,345 |
1,565 |
749 |
781 |
(413) |
(839) |
1,681 |
1,506 |
12% |
Groupe BPCE: quarterly
series
|
GROUPE BPCE |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
5,815 |
5,467 |
5,455 |
5,462 |
5,753 |
5,626 |
|
Operating expenses |
(4,587) |
(3,799) |
(3,812) |
(4,129) |
(4,151) |
(4,008) |
|
Gross operating income |
1,228 |
1,667 |
1,642 |
1,332 |
1,602 |
1,618 |
|
Cost of risk |
(326) |
(342) |
(319) |
(744) |
(382) |
(560) |
|
Income before tax |
968 |
1,337 |
1,339 |
537 |
1,233 |
1,124 |
|
Net income – Group share |
533 |
973 |
917 |
381 |
875 |
806 |
Consolidated balance sheet
ASSETS
€m |
June 30, 2024 |
Dec. 31, 2023 |
|
Cash and amounts due from central banks |
139,893 |
152,669 |
|
Financial assets at fair value through profit or loss |
220,167 |
214,782 |
|
Hedging derivatives |
8,744 |
8,855 |
|
Financial assets at fair value through shareholders' equity |
53,396 |
48,073 |
|
Financial assets at amortized cost |
26,713 |
26,373 |
|
Loans and receivables due from credit institutions and similar at
amortized cost |
112,308 |
108,631 |
|
Loans and receivables due from customers at amortized cost |
839,974 |
839,457 |
|
Revaluation difference on interest rate risk-hedged portfolios |
(3,998) |
(2,626) |
|
Financial investments of insurance activities |
108,130 |
103,615 |
|
Insurance contracts written - Assets |
1,127 |
1,124 |
|
Reinsurance contracts ceded - Assets |
9,377 |
9,564 |
|
Current tax assets |
449 |
829 |
|
Deferred tax assets |
4,581 |
4,575 |
|
Accrued income and other assets |
18,193 |
14,611 |
|
Investments in associates |
1,593 |
1,616 |
|
Investment property |
738 |
717 |
|
Property, plant and equipment |
6,031 |
6,023 |
|
Intangible assets |
1,139 |
1,110 |
|
Goodwill |
4,273 |
4,224 |
|
TOTAL ASSETS |
1,552,828 |
1,544,022 |
LIABILITIES
€m |
June 30, 2024 |
Dec. 31, 2023 |
|
Amounts due to central banks |
6 |
2 |
|
Financial liabilities at fair value through profit or loss |
203,985 |
204,023 |
|
Hedging derivatives |
14,238 |
14,973 |
|
Debt securities |
305,857 |
292,598 |
|
Amounts due to banks and similar |
64,291 |
79,634 |
|
Amounts due to customers |
714,830 |
711,658 |
|
Revaluation difference on interest rate risk-hedged portfolios |
(2) |
159 |
|
Insurance contracts written - Liabilities |
111,351 |
106,137 |
|
Reinsurance contracts ceded - Liabilities |
148 |
149 |
|
Current tax liabilities |
2,128 |
2,026 |
|
Deferred tax liabilities |
1,787 |
1,640 |
|
Accrued expenses and other liabilities |
23,891 |
22,493 |
|
Provisions |
4,714 |
4,825 |
|
Subordinated debt |
20,317 |
18,801 |
|
Shareholders' equity |
85,287 |
84,905 |
|
Equity attributable to equity holders of the parent |
84,750 |
84,351 |
|
Non-controlling interests |
537 |
553 |
|
TOTAL LIABILITIES |
1,552,828 |
1,544,022 |
Groupe BPCE : Goodwill
|
€m |
Dec. 31, 2023 |
Conversion |
June 30, 2024 |
|
Retail Banking & Insurance entities |
822 |
|
822 |
|
Asset & Wealth Management entities |
3,257 |
45 |
3,302 |
|
Corporate & Investment Banking entities |
144 |
4 |
148 |
|
Total |
4,224 |
49 |
4,273 |
Groupe BPCE: Statement of changes in
shareholders' equity
|
€m |
Equity attributable to shareholders’ equity |
|
December 31, 2023 |
84,407 |
|
Restatements1 |
(56) |
|
December 31, 2023 restated |
84,351 |
|
Distributions |
(849) |
|
Change in capital (cooperative shares) |
(405) |
|
Impact of acquisitions and disposals on non-controlling interests
(minority interests) |
(14) |
|
Income |
1,681 |
|
Changes in gains & losses directly recognized in equity |
31 |
|
Others |
(46) |
|
March 31, 2024 |
84,750 |
1 Opening shareholders' equity has
been adjusted for Funding Valuation Adjustments whose non-material
impact on income has not given rise to a change in the latter in
the 2024 consolidated financial statements
Retail Banking & Insurance:
quarterly income statement
|
BANQUE POPULAIRE NETWORK |
CAISSE D'EPARGNE NETWORK |
FINANCIAL SOLUTIONS & EXPERTISE |
INSURANCE |
DIGITAL & PAYMENTS |
OTHER NETWORK |
RETAIL BANKING & INSURANCE |
|
€m |
Q2-24 |
Q2-23 |
% |
Q2-24 |
Q2-23 |
% |
Q2-24 |
Q2-23 |
% |
Q2-24 |
Q2-23 |
% |
Q2-24 |
Q2-23 |
% |
Q2-24 |
Q2-23 |
% |
Q2-24 |
Q2-23 |
% |
|
|
Net banking income |
1,489 |
1,442 |
3% |
1,467 |
1,465 |
0% |
320 |
306 |
4% |
118 |
126 |
(7)% |
214 |
203 |
5% |
93 |
97 |
(4)% |
3,701 |
3,640 |
2% |
|
|
Operating expenses |
(1,025) |
(1,015) |
1% |
(1,038) |
(1,041) |
(0)% |
(154) |
(151) |
2% |
(25) |
(37) |
(32)% |
(159) |
(163) |
(2)% |
(55) |
(52) |
5% |
(2,456) |
(2,460) |
(0)% |
|
|
Gross operating income |
464 |
427 |
9% |
429 |
424 |
1% |
166 |
155 |
7% |
93 |
89 |
4% |
55 |
40 |
37% |
38 |
45 |
(15)% |
1,245 |
1,180 |
6% |
|
|
Cost of risk |
(228) |
(110) |
x2 |
(176) |
(84) |
x2 |
(22) |
(19) |
15% |
0 |
0 |
ns |
(32) |
(41) |
(21)% |
(17) |
2 |
ns |
(475) |
(252) |
88% |
|
|
Income before tax |
290 |
328 |
(12)% |
252 |
340 |
(26)% |
143 |
136 |
6% |
99 |
93 |
6% |
22 |
(6) |
ns |
25 |
47 |
(48)% |
831 |
936 |
(11)% |
|
|
Income tax |
(76) |
(82) |
(7)% |
(55) |
(81) |
(32)% |
(37) |
(34) |
10% |
(7) |
(9) |
(27)% |
(8) |
(6) |
20% |
(6) |
(11) |
(50)% |
(189) |
(224) |
(16)% |
|
|
Non-controlling interests |
(3) |
(5) |
(38)% |
(3) |
(3) |
(0)% |
0 |
0 |
ns |
0 |
0 |
ns |
1 |
9 |
(88)% |
0 |
0 |
ns |
(5) |
1 |
ns |
|
|
Net income - Group share |
210 |
240 |
(13)% |
194 |
256 |
(24)% |
106 |
102 |
4% |
92 |
83 |
10% |
16 |
(3) |
ns |
19 |
36 |
(47)% |
637 |
713 |
(11)% |
|
| |
BANQUE POPULAIRE NETWORK |
CAISSE D'EPARGNE NETWORK |
FINANCIAL SOLUTIONS & EXPERTISE |
INSURANCE |
DIGITAL & PAYMENTS |
OTHER NETWORK |
RETAIL BANKING & INSURANCE |
|
€m |
H1-24 |
H1-23 |
% |
H1-24 |
H1-23 |
% |
H1-24 |
H1-23 |
% |
H1-24 |
H1-23 |
% |
H1-24 |
H1-23 |
% |
H1-24 |
H1-23 |
% |
H1-24 |
H1-23 |
% |
|
|
Net banking income |
2,978 |
3,011 |
(1)% |
2,921 |
3,002 |
(3)% |
647 |
621 |
4% |
306 |
306 |
(0)% |
429 |
408 |
5% |
184 |
194 |
(5)% |
7,464 |
7,543 |
(1)% |
|
|
Operating expenses |
(2,068) |
(2,033) |
2% |
(2,123) |
(2,108) |
1% |
(316) |
(309) |
2% |
(67) |
(80) |
(16)% |
(319) |
(324) |
(2)% |
(109) |
(103) |
6% |
(5,002) |
(4,957) |
1% |
|
|
Gross operating income |
910 |
978 |
(7)% |
798 |
894 |
(11)% |
331 |
313 |
6% |
239 |
226 |
6% |
110 |
84 |
30% |
75 |
91 |
(18)% |
2,462 |
2,586 |
(5)% |
|
|
Cost of risk |
(353) |
(242) |
46% |
(276) |
(220) |
25% |
(47) |
(26) |
82% |
0 |
0 |
ns |
(63) |
(73) |
(13)% |
(33) |
0 |
ns |
(772) |
(560) |
38% |
|
|
Income before tax |
619 |
762 |
(19)% |
523 |
674 |
(22)% |
285 |
287 |
(1)% |
247 |
231 |
7% |
46 |
2 |
ns |
45 |
99 |
(55)% |
1,765 |
2,054 |
(14)% |
|
|
Income tax |
(150) |
(180) |
(17)% |
(117) |
(161) |
(28)% |
(75) |
(74) |
2% |
(43) |
(39) |
10% |
(16) |
(14) |
18% |
(11) |
(25) |
(57)% |
(412) |
(493) |
(16)% |
|
|
Non-controlling interests |
(7) |
(9) |
(28)% |
(4) |
(4) |
2% |
0 |
0 |
ns |
0 |
0 |
ns |
4 |
16 |
(78)% |
0 |
0 |
ns |
(7) |
3 |
ns |
|
|
Net income - Group share |
462 |
572 |
(19)% |
402 |
509 |
(21)% |
210 |
213 |
(2)% |
204 |
192 |
6% |
33 |
4 |
ns |
34 |
74 |
(54)% |
1,345 |
1,565 |
(14)% |
|
Retail Banking & Insurance:
half-year income statement
Retail banking & insurance:
quarterly series
|
RETAIL BANKING &
INSURANCE |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
3,903 |
3,640 |
3,709 |
3,576 |
3,763 |
3,701 |
|
Operating expenses |
(2,497) |
(2,460) |
(2,359) |
(2,499) |
(2,547) |
(2,456) |
|
Gross operating income |
1,406 |
1,180 |
1,350 |
1,077 |
1,217 |
1,245 |
|
Cost of risk |
(308) |
(252) |
(302) |
(643) |
(296) |
(475) |
|
Income before tax |
1,118 |
936 |
1,058 |
413 |
934 |
831 |
|
Net income – Group share |
851 |
713 |
785 |
312 |
709 |
637 |
Retail banking & insurance : Banque
Populaire and Caisse d’Epargne quarterly series
|
BANQUE POPULAIRE NETWORK |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
1,569 |
1,442 |
1,469 |
1,382 |
1,489 |
1,489 |
|
Operating expenses |
(1,018) |
(1,015) |
(961) |
(975) |
(1,043) |
(1,025) |
|
Gross operating income |
551 |
427 |
508 |
407 |
445 |
464 |
|
Cost of risk |
(132) |
(110) |
(127) |
(282) |
(125) |
(228) |
|
Income before tax |
434 |
328 |
398 |
149 |
329 |
290 |
|
Net income – Group share |
332 |
240 |
284 |
98 |
252 |
210 |
| |
|
|
|
|
|
|
|
CAISSE D’EPARGNE NETWORK |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
1,537 |
1,465 |
1,432 |
1,423 |
1,454 |
1,467 |
|
Operating expenses |
(1,066) |
(1,041) |
(993) |
(1,081) |
(1,085) |
(1,038) |
|
Gross operating income |
470 |
424 |
440 |
343 |
368 |
429 |
|
Cost of risk |
(136) |
(84) |
(115) |
(218) |
(100) |
(176) |
|
Income before tax |
334 |
340 |
325 |
126 |
270 |
252 |
|
Net income – Group share |
253 |
256 |
253 |
103 |
208 |
194 |
Retail Banking & Insurance: FSE
quarterly series
|
FINANCIAL SOLUTIONS & EXPERTISE |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
315 |
306 |
318 |
335 |
327 |
320 |
|
Operating expenses |
(157) |
(151) |
(154) |
(167) |
(162) |
(154) |
|
Gross operating income |
158 |
155 |
164 |
168 |
166 |
166 |
|
Cost of risk |
(6) |
(19) |
(18) |
(54) |
(24) |
(22) |
|
Income before tax |
151 |
136 |
146 |
112 |
141 |
143 |
|
Net income – Group share |
112 |
102 |
107 |
85 |
104 |
106 |
Retail Banking & Insurance:
Insurance quarterly series
|
INSURANCE |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
180 |
126 |
181 |
146 |
188 |
118 |
|
Operating expenses |
(43) |
(37) |
(42) |
(41) |
(42) |
(25) |
|
Gross operating income |
137 |
89 |
139 |
105 |
146 |
93 |
|
Income before tax |
139 |
93 |
137 |
107 |
149 |
99 |
|
Net income – Group share |
109 |
83 |
103 |
81 |
113 |
92 |
Retail Banking & Insurance: Digital
& Payments quarterly series
|
DIGITAL & PAYMENTS |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
205 |
203 |
209 |
199 |
215 |
214 |
|
Operating expenses |
(161) |
(163) |
(157) |
(171) |
(160) |
(159) |
|
Gross operating income |
44 |
40 |
52 |
27 |
55 |
55 |
|
Cost of risk |
(32) |
(41) |
(29) |
(69) |
(31) |
(32) |
|
Income before tax |
8 |
(6) |
19 |
(89) |
24 |
22 |
|
Net income – Group share |
7 |
(3) |
13 |
(61) |
17 |
16 |
Retail Banking & Insurance: Other
network quarterly series
|
OTHER NETWORK |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
97 |
97 |
99 |
91 |
91 |
93 |
|
Operating expenses |
(51) |
(52) |
(52) |
(63) |
(55) |
(55) |
|
Gross operating income |
46 |
45 |
47 |
28 |
37 |
38 |
|
Cost of risk |
(2) |
2 |
(14) |
(19) |
(16) |
(17) |
|
Income before tax |
52 |
47 |
33 |
9 |
20 |
25 |
|
Net income – Group share |
39 |
36 |
25 |
7 |
16 |
19 |
Global Financial Services: quarterly
income statement per business line
| |
ASSET AND WEALTH MANAGEMENT |
CORPORATE & INVESTMENT
BANKING |
GLOBAL FINANCIAL
SERVICES |
|
€m |
Q2-24 |
Q2-23 |
Q2-24 |
Q2-23 |
Q2-24 |
Q2-23 |
% |
|
Net banking income |
850 |
773 |
1,133 |
1,056 |
1,983 |
1,829 |
8% |
|
Operating expenses |
(673) |
(636) |
(694) |
(651) |
(1,366) |
(1,287) |
6% |
|
Gross operating income |
178 |
137 |
439 |
405 |
617 |
542 |
14% |
|
Cost of risk |
9 |
(1) |
(91) |
(90) |
(82) |
(91) |
(10)% |
|
Share in net income of associates |
0 |
0 |
4 |
3 |
4 |
3 |
5% |
|
Gains or losses on other assets |
0 |
0 |
0 |
0 |
0 |
0 |
(40)% |
|
Income before tax |
187 |
136 |
352 |
318 |
539 |
455 |
19% |
|
Net income – Group share |
123 |
89 |
261 |
233 |
384 |
322 |
19% |
Global Financial Services: half-yearly
income statement per business line
| |
ASSET AND WEALTH MANAGEMENT |
CORPORATE & INVESTMENT
BANKING |
GLOBAL FINANCIAL
SERVICES |
|
€m |
H1-24 |
H1-23 |
H1-24 |
H1-23 |
H1-24 |
H1-23 |
% |
|
Net banking income |
1,681 |
1,554 |
2,235 |
2,130 |
3,916 |
3,683 |
6% |
|
Operating expenses |
(1,335) |
(1,280) |
(1,399) |
(1,312) |
(2,735) |
(2,592) |
6% |
|
Gross operating income |
346 |
273 |
836 |
818 |
1,181 |
1,091 |
8% |
|
Cost of risk |
4 |
5 |
(145) |
(69) |
(141) |
(64) |
119% |
|
Share in net income of associates |
0 |
(0) |
7 |
6 |
7 |
7 |
9% |
|
Gains or losses on other assets |
0 |
42 |
0 |
(0) |
0 |
42 |
(99)% |
|
Income before tax |
350 |
320 |
698 |
755 |
1,048 |
1,075 |
(3)% |
|
Net income – Group share |
232 |
226 |
516 |
554 |
749 |
781 |
(4)% |
Global Financial Services: quarterly
series
|
GLOBAL FINANCIAL SERVICES |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
1,854 |
1,829 |
1,767 |
1,908 |
1,933 |
1,983 |
|
Operating expenses |
(1,305) |
(1,287) |
(1,283) |
(1,394) |
(1,368) |
(1,366) |
|
Gross operating income |
549 |
542 |
483 |
514 |
564 |
617 |
|
Cost of risk |
27 |
(91) |
(17) |
(73) |
(58) |
(82) |
|
Income before tax |
621 |
455 |
470 |
420 |
510 |
539 |
|
Net income – Group share |
458 |
322 |
341 |
280 |
364 |
384 |
Corporate & Investment Banking:
quarterly series
|
CORPORATE & INVESTMENT BANKING |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
1,074 |
1,056 |
1,002 |
1,034 |
1,102 |
1,133 |
|
Operating expenses |
(661) |
(651) |
(650) |
(703) |
(706) |
(694) |
|
Gross operating income |
412 |
405 |
352 |
331 |
396 |
439 |
|
Cost of risk |
21 |
(90) |
(28) |
(62) |
(54) |
(91) |
|
Income before tax |
437 |
318 |
328 |
255 |
346 |
352 |
|
Net income – Group share |
321 |
233 |
247 |
176 |
255 |
261 |
Asset & Wealth Management: quarterly
series
|
ASSET & WEALTH MANAGEMENT |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
781 |
773 |
764 |
874 |
830 |
850 |
|
Operating expenses |
(644) |
(636) |
(633) |
(691) |
(662) |
(673) |
|
Gross operating income |
137 |
137 |
131 |
183 |
168 |
178 |
|
Cost of risk |
6 |
(1) |
11 |
(12) |
(5) |
9 |
|
Income before tax |
184 |
136 |
143 |
165 |
163 |
187 |
|
Net income – Group share |
137 |
89 |
94 |
105 |
109 |
123 |
Corporate center: quarterly
series
|
CORPORATE CENTER |
|
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Q2-24 |
|
Net banking income |
57 |
(3) |
(21) |
(22) |
57 |
(58) |
|
Operating expenses |
(785) |
(52) |
(170) |
(237) |
(236) |
(186) |
|
Gross operating income |
(728) |
(55) |
(191) |
(259) |
(179) |
(244) |
|
Cost of risk |
(46) |
1 |
0 |
(28) |
(28) |
(2) |
|
Share in income of associates |
2 |
0 |
1 |
(9) |
3 |
0 |
|
Gains or losses on other assets |
0 |
0 |
0 |
0 |
(6) |
1 |
|
Income before tax |
(771) |
(54) |
(189) |
(296) |
(210) |
(245) |
|
Net income – Group share |
(776) |
(63) |
(210) |
(211) |
(198) |
(215) |
DISCLAIMER
This presentation may contain forward-looking
statements and comments relating to the objectives and strategy of
Groupe BPCE. By their very nature, these forward-looking statements
inherently depend on assumptions, project considerations,
objectives and expectations linked to future events, transactions,
products and services as well as on suppositions regarding future
performance and synergies.
No guarantee can be given that such objectives
will be realized; they are subject to inherent risks and
uncertainties and are based on assumptions relating to the Group,
its subsidiaries and associates and the business development
thereof; trends in the sector; future acquisitions and investments;
macroeconomic conditions and conditions in the Group’s principal
local markets; competition and regulation. Occurrence of such
events is not certain, and outcomes may prove different from
current expectations, significantly affecting expected results.
Actual results may differ significantly from those anticipated or
implied by the forward-looking statements. Groupe BPCE shall in no
event have any obligation to publish modifications or updates of
such objectives.
Information in this presentation relating to
parties other than Groupe BPCE or taken from external sources has
not been subject to independent verification; the Group makes no
statement or commitment with respect to this third-party
information and makes no warranty as to the accuracy, fairness,
precision or completeness of the information or opinions contained
in this press release. Neither Groupe BPCE nor its representatives
shall be held liable for any errors or omissions or for any harm
that may result from the use of this presentation or of its
contents or any related material, or of any document or information
referred to in this presentation.
The financial information presented in this
document relating to the fiscal period ended June 30, 2024 has been
drawn up in compliance with IFRS guidelines, as adopted in the
European Union. This financial information is the equivalent of
summary financial statements for an interim period as defined by
IAS 34 “Interim Financial Reporting.”
Preparation of the financial information requires Management to
make estimates and assumptions in certain areas regarding uncertain
future events.
These estimates are based on the judgment of the
individuals preparing this financial information and the
information available at the date of the balance sheet. Actual
future results may differ from these estimates.
With respect to the financial information of Groupe BPCE for the
quarter ended on June 30, 2024, and in view of the context
mentioned above, attention should be drawn to the fact that the
estimated increase in credit risk and the calculation of expected
credit losses (IFRS 9 provisions) are largely based on assumptions
that depend on the macroeconomic context.
The quarterly financial information of Groupe
BPCE for the period ended June 30, 2024, approved by the Management
Board at a meeting convened on July 30, 2024, were verified and
reviewed by the Supervisory Board at a meeting convened on August
1, 2024.
The limited review procedures relating to the
condensed consolidated financial statements for the interim period
ended June 30, 2024 have been substantially completed. The reports
of the statutory auditors regarding the limited review of these
condensed consolidated financial statements will be published
following the finalization of their verification.
About Groupe
BPCE
Groupe BPCE is the second-largest banking group in France.
Through its 100,000 staff, the group serves 35 million customers –
individuals, professionals, companies, investors and local
government bodies – around the world. It operates in the retail
banking and insurance fields in France via its two major networks,
Banque Populaire and Caisse d’Epargne, along with Banque Palatine
and Oney. It also pursues its activities worldwide with the asset
& wealth management services provided by Natixis Investment
Managers and the wholesale banking expertise of Natixis Corporate
& Investment Banking. The Group's financial strength is
recognized by four credit rating agencies with the following senior
preferred LT ratings: Moody's (A1, stable outlook), Standard &
Poor's (A+, stable outlook), Fitch (A+, stable outlook) and R&I
(A+, stable outlook).
Groupe BPCE press contact
Christophe Gilbert : +33 1 40 39 66 00
Email : christophe.gilbert@bpce.fr |
Groupe BPCE investor and analyst relations
François Courtois : +33 1 58 40 46 69
Email : bpce-ir@bpce.fr
|
groupebpce.com
- PR_Results_Groupe BPCE_Q2-24 & H-24
