Investor Presentation - Groupe BPCE
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Investor
Presentation
September 2021Disclaimer
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 presentation. Neither Groupe BPCE nor its representatives shall be held liable for any errors
or omissions or for any harm resulting from the use of this presentation, the content of this presentation, or any document or information referred to in this presentation.
The financial information presented in this document relating to the fiscal period ended June 30, 2021 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 with regard to uncertain future events. These estimates are based on
the judgment of the individuals preparing this financial information and the information available at the balance sheet date. Actual future results may differ from these estimates.
The financial information of Groupe BPCE for the period ended June 30, 2021 approved by the Management Board at the meeting convened on August 2, 2021, was verified and
reviewed by the Supervisory Board at a meeting convened on August 3, 2021.
The limited review procedures relating to the condensed consolidated financial statements for the interim period ended June 30, 2021 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.
.
2 INVESTOR PRESENTATIONA cooperative bank with a diversified business model, leading positions,
01 and strong commitments to society
02 Delivering solid performance based on synergies and moderate risk
appetite
03 Operating with robust capital ratios, strong loss-absorbing capacity and high
credit ratings
04 Global and innovative issuer, committed to society
3 INVESTOR PRESENTATION01
A cooperative bank with a diversified
business model, leading positions, and
strong commitments to society
4A large cooperative banking group with a diversified business model,
leading market position and clear business lines (1/2)
A structure and governance ensuring a strong
commitment to the development of regional and
international expertise on a long-term basis and an
alignment of interests for all the Group’s stakeholders
• BPCE SA is responsible for Strategy
BPCE SA,
THE GROUP’S • Control and coordination
CENTRAL • Group’s MLT funding
INSTITUTION • Internal solidarity mechanism
• Retail Banking &
2 CORE
Insurance
BUSINESSES
• Global Financial Services
5 INVESTOR PRESENTATIONA large cooperative banking group with a diversified business model,
leading market position and clear business lines (2/2)
One of the 30 Global Systemically Important Banks (G-SIBs)
Regional banks
#2 in France
Contribution to the H1-21
Gross Operating Income(1) RETAIL BANKING
& INSURANCE Business lines serving retail 21.7% of market share
for customer loans(2)
banking activities
22% for deposits
Insurance Payments and savings(2)
Financial Services
75% & Expertise
Asset & Wealth #15 player worldwide
25% Management and
#2 player Euro zone(3)
GLOBAL FINANCIAL
SERVICES
#1 European player
Corporate &
Investment Banking
in real estate
#4 worldwide in
renewable energies(3)
(1) Excluding corporate center and exceptional items (2) Source BDF as of March 31, 2021
(3) # : ranking in France, except when specified otherwise
6 INVESTOR PRESENTATIONRetail Banking and Insurance: two large networks of regional cooperative
banks with strong brands and a leading position in the French retail market
(1/4)
27 million customers served through our branches and digital tools allowing the two large networks to increase cross-
selling and deliver solid commercial and financial performance
14 Banques Populaires 15 Caisses d’Épargne
Deposits & Savings Deposits & Savings
#1 #2
+8.9% for individuals +4.7%
for SMEs
€341bn €489bn
#2 #1
for small businesses for local authorities
June 30, 2021 June 30, 2021
H1-21 results(1) Loan outstandings H1-21 results(1) Loan outstandings
NBI €3.4bn +9.6% NBI €3.6bn +6.5%
€267bn €325bn
CIR(3) 61.6% CIR(3) 62.3%
PbT(3) €1.0bn June 30, 2021 PbT(3) €1.1bn June 30, 2021
(1) Excluding exceptional items (3) After IFRIC 21 restatement
7 INVESTOR PRESENTATIONRetail Banking and Insurance:
Increased use of data resources and digital services to serve the needs
of our customers and their advisers(2/4)
Data resources and digital services serving the needs of our customer advisers
H1-21 key figures
DATA – AUTOMATION OF THE COLLECTION AND VERIFICATION OF CUSTOMER DOCUMENTS
12 million +385K support documents transmitted online since the beginning of the year vs. 400K in 2020
customers active on mobile apps or
websites at end-June 2021 +122K tax assessment notices automatically checked in H1-21 vs. 100K in full-year 2020
including 8.2m active on mobile devices
(+14% vs. Dec. 20) DIGITAL – DEVELOPMENT OF VIDEOCONFERENCING SOLUTIONS WITH CUSTOMERS
≈ 80% 37,000 advisers equipped to hold meeting with customers via videoconference: +8,000 vs. Dec. 20
of principal active customers using digital
channels
'Self-care’: fluid and secure operations largely adopted for our customers
Digital NPS 6.6 million active Sécur-Pass customers carrying out day-to-day operations in a totally secure environment:
+2.6m since the beginning of the year
+90m credit transfers via mobile phone since the beginning of the year: +32% vs. H1-20
+41 +5.2m beneficiaries added: +47% vs. H1-20
+36% card transactions blocked, confirmed online vs. H1-20
Net Promoter Score
Digital subscription pathways increasingly used by our customers
App Store Google Play The addition of new functionalities and expansion to reach new customer segments generated more traffic
on these pathways
For example, consumer loans initiated via digital pathways in 2021 now represent 12% of new loan production
4.7/5 4.3/5 for the BP and 21% for the CE
#1 among Launch of Oney+: a solution including an app, an account and a Visa card that makes split payment universal
universal banks and gives consumers the power to manage their spending
8 INVESTOR PRESENTATIONRetail Banking and Insurance: the cornerstone of our ambitions to build
market share and offer fee-driven, value-added products through our retail
networks (3/4)
Breakdown of revenues in Q1-21
Financial Solutions and Expertise 3% H1-21 results(2)
7%
22% Consumer credit NBI €597m
12% Sureties & financial guarantees
A full range of expertise which serves the retail Retail securities services
activities of the networks and Natixis, Leasing
€597m Factoring CIR(3) 51.4%
and the European ambitions
23% Socfim
for the payment activities 25% Other
8% PbT(3) €229m
Insurance Scope: Insurance division of Natixis
A full-fledged Premiums(1) Life insurance AuMs(1) H1-21 results(2)
Bancassurer: 7.9
a full range of products +7% YTD NBI €492m
+50%
distributed through the 5.3 P&C 1.4 P&C combined 93.2%
two retail networks +8% Insurance
1.9
2.1
ratio
ʘ Life Insurance Life and
+58% Personal 76.6 78.1 CIR(3) 51.7%
ʘ Personal protection protection
72.7
ʘ Property & Casualty AuM at Net inflows Net inflows Reevaluation AuM at
H1-20 H1-21
12/31/2020 € UL & others 06/30/2021 PbT(2) €240m
(1) Excluding the reinsurance agreement with CNP (2) Excluding exceptional items (3) After IFRIC 21 restatement
9 INVESTOR PRESENTATIONRetail Banking and Insurance: Payments and Oney Bank (4/4)
Payments H1-21 results(1)
Relevant offline and online payment solutions NBI €235m
ʘ Focus on end-to-end digital payment services
ʘ Invest in technology and solutions niche-oriented Payment
CIR(2) 86.4%
A forerunner in rolling-out Instant Payment
A key player in prepaid and managed digital solutions
PbT(2) €25m
Oney Bank H1-21 results(1)(2)
An opportunity for Groupe BPCE:
NBI €205m
to develop activities in France in a type of business where it is not
currently present
to develop payment solutions CIR(2) 69.1%
to benefit immediately from access to an international development
platform in line with the Group's strategic priorities
PbT(2) €23m
(1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement
10 INVESTOR PRESENTATIONGlobal Financial Services/ Asset and Wealth Management: global ambitions
for our multi-affiliate model focused on active asset management and
insurance Funds
AuM(1) by main geographical area in €bn
More than 20 specialized investment managers globally committed to a highly active,
conviction-led investment style (ESG, multi-asset, innovative alternatives, etc..) 1,183
Americas
Americas Europe
Europeand
andAPAC
APAC 1,153
EUROPE
EUROPE
(3)
H1-21 results(2) Q2-21 Fees(4)
NBI(3) €1,625m
CIR(3) 74.6% 24 bps
Affiliates plugged into the international distribution platform +1.2bps YoY
880 employees globally PbT(3) €410m
(1) Europe including Dynamic Solutions and Vega IM, excluding H20 AM (€17bn AuM as at 06/30/2021); US including WCM IM (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement
11 INVESTOR PRESENTATIONGlobal Financial Services/ Corporate and Investment Banking: client-centric
and solutions-driven, Natixis CIB provides a range of expertise to meet the
specific needs of our customers worldwide
H1-21 results(2)
Becoming the “go-to bank” in selected sectors ʘ Selected international growth NBI €1,859m
in Structured Financing ʘ Strengthened O2D model
ʘ Energy & Natural Resources ʘ Increase the footprint in the insurers and CIR(3) 61.4%
ʘ Aviation financial sponsors segments
ʘ Infrastructure
PbT(3) €614m
ʘ Real Estate and Hospitality
Increase client intimacy with corporates,
leveraging on Investment Banking expertise NBI (2) Breakdown
ʘ DCM
ʘ ECM Net revenues(1) (in €m) 1,852
ʘ Acquisition & Strategic Finance 845 929 923
1,255 231
ʘ Strategic Equity Transactions 126
96 135
522 661
ʘ M&A 202
336 728
99 93
Continued focus on Global Markets 343 393
619
ʘ Fixed Income solutions 321 321 167 275
ʘ Equity Derivatives 127 108
33
250 330 642 617
277 213 287
1 25 43 7 (7) (55) 0
(175) (208)
Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-20 H1-21
CVA/DVA desk FIC-T Equity Global finance Investment banking
and M&A
(1) Total excluding CVA/DVA desk and other; figures at current FX (2) Excluding exceptional items (3) After IFRIC21 restatement
12 INVESTOR PRESENTATIONGroupe BPCE's commitments to society
Fight against climate change confirmed as a key priority for all business lines in
new strategic plan BPCE 2024; the Group just joined the Net Zero Banking Alliance
Strong commitments
Alignment on a "Net Zero" trajectory: the Group has joined the "Net Zero Banking Alliance" coordinated by the United Nations Environment Programme
Finance Initiative (UNEP FI)
Mobilization against climate change: the Group has joined the Ambition 4 Climate platform that presents 114 projects, all sharing the same goal of climate
neutrality
Actions to promote our customers' energy transition
Promoting new transition solutions Supporting the energy renovation Financing of renewable energy projects
Signature of a partnership with Energy Partnership with Cozynergy (acquired Launch by the Caisses d’Epargne, in collaboration
Observer aimed at developing technical by a group of regional banks of Groupe BPCE), with Natixis and BPCE Energéco, of the 1st debt
solutions around hydrogen to enable a start-up specializing in energy renovation, fund dedicated to financing renewable energy
industrial decarbonization and the which decided to team up with the Group in projects, with €1.5bn in resources
development of renewable energies by order to speed up the rollout of its digital 9 new projects representing 1,262 MW of installed
offering storage solutions platform and services capacity and €606 million in financing arranged by
Natixis in Q2-21
Improvement in the Sustainalytics rating
Falling from 22.3 (medium risk) to 17.9 (low risk) thanks to better management of the ESG risks by the Group
13 INVESTOR PRESENTATION02
Delivering solid performance based on
synergies and moderate risk appetite
14Groupe BPCE: strong recovery in H1-21 driven by commercial momentum
and significant decrease in cost of risk
Group revenues: €12.5bn, +16.0% vs. H1-20 and +6.4% vs. H1-19
Revenues Retail Banking & Insurance: revenues +7.6% YoY; strong activity in retail banking, Insurance and FSE
Global Financial Services: revenues up 36.7%(1) YoY
Operating Operating expenses: +5.0%(2) YoY, in line with dynamic activity
expenses Strong positive jaws effect; cost/income ratio(3) down 7.0pp to 67.0% in H1-21
Cost of risk Down 44.6% in H1-21 YoY at €822m (22 bps), with stable S1/S2 provisions in Q2-21 illustrating the continued
prudent provisioning
Underlying net income up to €2.25bn in H1-21, x2.6 vs. H1-20(4)
Net income
Reported net income at €1.9bn in H1-21, x5.9 vs. H1-20
Capital CET1 ratio: 15.6%(5), including full impact of the buyback of all Natixis minority shareholders
Well above requirements, +427 bps over MDA trigger threshold
Strategic Successful public tender offer on Natixis shares; squeeze-out on July 21st, 2021
developments Groupe BPCE released its new strategic plan BPCE 2024 on July 8th, 2021
Ratings Recent rating decisions: Moody’s has affirmed the A1 long term senior preferred rating with a stable
outlook; R&I has affirmed the A+ long term senior preferred rating with a stable outlook
Underlying figures, unless otherwise indicated
(1) At constant Fx (2) Excluding exceptional items and Single Resolution Fund (3) After IFRIC 21 restatement (4) Net income Group share excluding Coface net contribution and after IFRIC 21 restatement (5) Estimated ratio at June 30,2021
15 INVESTOR PRESENTATIONStrategic development
Groupe BPCE has engaged a major step in its transformation
and the development of its businesses
ʘ On February 9th, 2021, Groupe BPCE announced the public tender offer on the 29% Natixis shares the
Group didn’t already own, to engage the simplification of its organization
ʘ This simplified organisation will increase the strategic flexibility of the businesses and allow acceleration in
their development for the benefit of their customers and their performance
ʘ And also improve capital flows within the Group, in an increasingly challenging regulatory environment
ʘ The tender offer was successful, and the squeeze-out took place on July 21st, 2021
ʘ On July 8th, 2021, Groupe BPCE released its new strategic plan BPCE 2024, notably based on simplification,
unification and development
ʘ Next step: finalization of the study(1) on the acquisition by BPCE of the Insurance and Payments activities of
Natixis to better serve our retail banking networks and their customers
All conditions are fulfilled for Groupe BPCE to catch opportunities, have a positive
impact on major societal issues and engage a new expansion of its footprint
(1) Any project stemming from this study will be submitted, if need be, to the consultation of the relevant works councils
16 INVESTOR PRESENTATIONQ2-21 & H1-21 results - Underlying figures
H1-21 net income(1) up to €2.25bn, driven by solid GOI growth
and lower cost of risk
Underlying figures Q2-21 % Change % Change H1-21 % Change % Change
€m vs. Q2-20 vs. Q2-19 vs. H1-20 vs. H1-19
Net banking income 6,334 22.0% 6.6% 12,465 16.0% 6.4%
Operating expenses (4,080) 8.3% 2.2% (8,662) 5.0% 2.9%
o/w expenses excluding Single Resolution Fund (4,090) 8.5% 2.4% (8,241) 5.0% 2.5%
Gross operating income 2,254 58.3% 15.8% 3,803 52.6% 15.5%
Cost of risk (332) (66.1)% 2.0% (822) (44.6)% 34.8%
Income before tax 2,012 x3.9 18.4% 3,140 x2.7 11.2%
Income tax (525) x2.5 (5.6)% (937) x1.9 (4.9)%
Non-controlling interests (114) ns (31.2)% (207) x5.0 (17.1)%
Net income – Group share excl. Coface net
1,373 x4.7 40.5% 1,996 x3.2 25.7%
contribution
Net income – Group share excl. Coface net
1,241 x6.6 42.0% 2,250 x2.6 25.3%
contribution after IFRIC 21 restatement
Cost/income ratio 66.9% (8.1)pp (2.5)pp 67.0% (7.0)pp (2.6)pp
(1) Group share
17 INVESTOR PRESENTATIONH1-21 results - Cost of risk/Asset quality (1/2)
Continued prudent provisioning: cost of risk at €822m in H1-21
COST OF RISK(1) S1/S2 S3
45 49
(in bps) 13 34
21 20 23 25 18 21
18
10 36 20
17 26
RB&I(2) 13 19
15
19
5 5 -1 2
163 144 Cost of risk
123 121
124
95 €822m
118 -44.6% vs. H1-20
112 112 65 53
35
47 17
39 30 8 27
CIB 11 9 6
25
8
9
55
49
29 29 32 18 26
42 NPL ratio
22
24 25
19
31 21
17 27
19
2.6%
12 18
Groupe BPCE 5 5
15 +0.1 pp vs. Dec. 20
-1 2
1,484
(in €m) 981 923
585 946 822
504 526 332 490
332
356 743
420 455 591 398
Groupe BPCE 84 229 92
345 538
78
-14
Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-20 H1-21
(1) Cost of risk expressed in annualized basis points on gross customer outstandings at the beginning of the period or in € amounts – Excluding exceptional items (2) In Q1-20, excluding the methodological effect, the cost of risk would
have been 29 bps for RB&I (positive impact of €115m) and 35 bps for Groupe BPCE (positive impact of €120m)
18 INVESTOR PRESENTATIONH1-21 results - Cost of risk/Asset quality (2/2)
Asset quality: limited exposures to sensitive sectors
Diversified portfolio Exposure to sectors considered to be sensitive
Breakdown of Group gross exposure per Corporate and small business Group exposures(2)
counterparty at June 30, 2021(1)
% %
Gross %
Total Group State- %
Corporate customers 4% exposure Investment
27% gross guaranteed NPL
o/w 69% in France (€bn) Grade
7% exposure loans
Wholesale and retail trade
16.4 1.2% 24.4% 6.0% 44.9%
4% (non-food)
8% €1,385bn Tourism – Hotel – Catering 15.6 1.1% 21.2% 9.2% 33.3%
17% Automobile 10.2 0.7% 22.6% 4.1% 57.0%
1% Consumer goods
Residential (excl. cosmetics and personal 6.2 0.4% 7.5% 3.0% 79.7%
mortgages 25%
31% 1% care)
Real estate Professionals (excl.
6.9 0.5% 0.3% 4.6% 54.6%
residential exposure)
Individual customers
Small businesses
Corporate customers Natixis scope
Financial institutions Oil & Gas(4): €9.6bn net EAD with >75% of exposure with no/limited sensitivity to oil prices and >60% Investment Grade
Local governments o/w independent producers & service companies: €2.1bn net EAD (€0.7bn US and €1.4bn EMEA/Other)
Central administrations
Aviation: €3.5bn net EAD
Central banks and other sovereign exposures
Well diversified portfolio across ≈30 countries (no country accounting for >25% of net EAD),
Securitization
approx. 80% exposures secured and majority investment grade
Equities
(1) Estimate (2) Management data at end of June 2021 (3) Energy & Natural Resources + Real Assets perimeters
19 INVESTOR PRESENTATION03
Operating with robust capital ratios,
strong loss-absorbing capacity
and high credit ratings
20Capital and Loss-absorbing Capacity
CET1 ratio as of June 30 , 2021 including full impact of the buyback of all
Natixis minority shareholders, above 2021 year-end guidance
CHANGE IN THE CET1 RATIO (in bps)
Organic capital creation = 13bps
Requirements Actual levels
June 30, 2021 as at
+32bps +4bps June 30, 2021(1)
16.1%
(19)bps +5bps 15.6% CET1 ratio 9.32%(2) 15.6%
(ECB)
(70)bps Total capital ratio 13.26%(2) 17.5%
(ECB)
TLAC ratio 19.51% 22.9%(3)
CET1 ratio Retained Change in Issuance Full impact Other CET1 ratio (FSB)
at March 31, 2021 earnings risk-weighted and distribution of buyback changes at June 30,
assets of cooperative
shares
of all Natixis
minority
2021 Subordinated 19.5% 22.9%(3)
shareholders MREL ratio (SRB)
Total MREL ratio 25.0% 29.5%
CET1 capital equal to €68.4bn(1) as of June 30, 2021 (SRB)
Total loss-absorbing capacity stood at €100.8bn(1) as of June 30, 2021
Leverage ratio equal to 5.7%(1,4) as of June 30, 2021
Capital adequacy, Total loss-absorbing capacity – see note on methodology (1) Estimate at June 30, 2021 (2) Excluding “Pillar 2 Guidance” (3) As part of its annual resolvability assessment, Groupe BPCE has chosen to waive the possibility
offered by Article 72b(3) of the Capital Requirements Regulation to use senior preferred debt for compliance with its TLAC/subordinated MREL requirements in 2021 (4) The adjusted leverage ratio requirement is set at 3.2%
21 INVESTOR PRESENTATIONRisk-Weighted Assets
BREAKDOWN PER BUSINESS LINE (in €bn) BREAKDOWN PER TYPE OF RISK(1) (in €bn)
431 439 431 439
13% 12% Other 9% 9%
3% 4%
19% 20%
Global Financial Services
Operational Risk
Retail Banking & 88% 87% Market Risk
68% 68% Insurance Credit Risk
Dec. 31, 2020 June 30, 2021 Dec. 31, 2020 June 30, 2021
CHANGE OVER A 6-MONTH PERIOD (in €bn)
+4 -2
+6
431 439
Risk-Weighed Assets Retail Banking & Global and Financial Other Risk-Weighed Assets
Dec. 31, 2020 Insurance Services June 30, 2021
(1) The CVA is included under Credit risk. It accounted for less than 1% of RWA at June 30, 2021, and December 31, 2020
22 INVESTOR PRESENTATIONOwn funds
Reconciliation of shareholders’ equity to total capital Regulatory capital (in €bn)
78.2 77.0
In billions of euros June 30, 2021 Dec. 31, 2020
9.3 8.6
Equity attribuable to equity holders of the parent 76.3 72.7
26.9 27.5 Tier-2 capital
Cancelation of hybrid securities(1) in equity
- - CET1 CET1
attribuable to equity holders of the parent
69.0 68.4 cooperative shares
Non-controlling interests(2) 0.2 4.4 42.1 40.9
Goodwill and intangibles (4.9) (4.8) Reserves(3)
EL/Prov. Difference (0.3) (0.4) Dec. 31, 2020 June 30, 2021
Deduction of irrevocable payment commitments - -
Other regulatory adjustments (2.9) (2.9) Total capital ratios (as a %)
Common Equity Tier-1 capital 68.4 69.0 18.1% 17.5%
Additional Tier-1 capital - - 2.1 2.0
Tier-1 capital 68.4 69.0
Tier-2 capital 10.1 10.8 T2 Contribution
16.0 15.6
T2 regulatory adjustments (1.5) (1.6)
CET1 ratio
Total capital 77.0 78.2
Dec. 31, 2020 June 30, 2021
(1) As at 12/31/2020, BPCE deeply subordinated notes booked to equity attributable to equity holders of the parent (3) Non-controlling interests (prudential definition); as at 06/30/2021 account is only taken of the part from Oney after regulatory
clipping and as at 12/31/2020 account is only taken of the part from Natixis, excluding super-subordinated notes and Oney, after regulatory clipping (4) Reserves net of prudential restatements
23 INVESTOR PRESENTATIONCapital and Loss-absorbing Capacity
Financial structure: MDA trigger threshold
Capital Capital
Pillar I Pillar II conservation G-SIB Countercyclical Pillar I Pillar II conservation G-SIB Countercyclical
12/31/2020 requirement requirement buffer buffer buffer Total 06/30/2021 requirement requirement buffer buffer buffer Total
SREP CET 1 SREP CET 1
4.50 % 1.31 % 2.50 % 1.00 % 0.01 % 9.32 % 4.50 % 1.31 % 2.50 % 1.00 % 0.01 % 9.32 %
requirement 16.0 % requirement
15.6%
SREP Tier 1 SREP Tier 1
6.00 % 1.31 % 2.50 % 1.00 % 0.01 % 10.82 % requirement
6.00 % 1.31 % 2.50 % 1.00 % 0.01 % 10.82 %
requirement Buffer: Buffer:
488 bps 427 bps
SREP total capital MDA SREP total
8.00 % 1.75 % 2.50 % 1.00 % 0.01 % 13.26 % MDA capital 8.00 % 1.75 % 2.50 % 1.00 % 0.01 % 13.26 %
requirement trigger
trigger requirement
threshold:
threshold:
11.31%
11.11%
SREP Distance to SREP SREP Distance to SREP
12/31/2020 Actual level requirement requirement (bps) 06/30/2021 Actual level requirement requirement (bps)
CET 1 16.0 % 9.32 % 667 CET 1 15.6 % 9.32 % 626
Tier 1 16.0 % 10.82 % 517 Tier 1 15.6 % 10.82 % 476
Total Total
capital
18.1 % 13.26 % 488 17.5 % 13.26 % 427
capital
Distance to MDA trigger threshold = lowest of Dec. 31, 2020 June 30, 2021 Distance to MDA trigger threshold = lowest of
488 427
the 3 distances to SREP the 3 distances to SREP
MDA trigger threshold 11.11 % MDA trigger threshold 11.31 %
Significant buffer over MDA trigger threshold: 427 bps (- 61 bps since end 2020)
24 INVESTOR PRESENTATIONCapital and Loss-absorbing Capacity
TLAC(1,2) RATIO (as a % of risk-weighted assets) MREL(1,2) RATIO (as a % of risk-weighted assets)
29.5%
25.0% 6.5%
22.9%
19.5% 4.8% 4.8% Eligible Senior Preferred debt
Senior Non-Preferred
Senior Non-Preferred 2.6%
2.6%
Tier 2
Tier 2
Additional Tier 1
Additional Tier 1
CET1
CET1
15.6% 15.6%
TLAC requirement June 30, 2021 Total MREL requirement June 30, 2021
June 30, 2021(3) June 30, 2021(4)
(1) Estimate at June 30, 2021 (2) As part of its annual resolvability assessment, Groupe BPCE has chosen to waive the possibility offered by Article 72b(3) of the Capital Requirements Regulation to use senior preferred debt for compliance
with its TLAC/subordinated MREL requirements in 2021 (3) Based on FSB TLAC term sheet dated Nov. 9, 2015 (4) Based on ACPR’s notification of March 22, 2021
25 INVESTOR PRESENTATIONGroupe BPCE’s ratings are among the best in the global banking industry,
based on a robust capital position, well-diversified business model
and efficient strategy execution
As of June 24, 2021
Senior preferred long-term debt A1 A A+ A+
Outlook Stable Stable Negative Stable
Senior non-preferred Baa1 BBB+ A A
Tier 2 Baa2 BBB A-
Senior short-term debt P-1 A-1 F1
26 INVESTOR PRESENTATION04
Global and innovative issuer, committed
to society
27Groupe BPCE is a global issuer, operating in EMEA, the US and the Asia-
Pacific region in several currencies and types of debt instruments
≈68% of the 2021 MLT wholesale funding plan(1) raised(2)
MLT wholesale funding: revised 2021 plan and execution YTD(2) Structure of MLT wholesale funding(3)
ʘ Target: €22bn(1) / Raised YTD(1,2): €14.9bn or ≈68% raised in 2021 YTD(2)
• Tier 2 and/or Senior Non-Preferred
Target: €5.5bn / Raised YTD(2): €2.1bn of SNP Unsecured bond
• Senior Preferred 55% issues
Target: €6bn / Raised YTD(1,2): €4.4bn 43% Covered bond issues
• Covered Bonds
Target: €10.5bn / Raised YTD(2): €8.4bn ABS
3%
ʘ Asset-Backed Securities
Target: €1.5bn / Raised YTD(2): €0.4bn
Diversification of the investor base/
unsecured MLT wholesale funding raised in 2021 YTD(2)
TLTRO III
ʘ TLTRO III outstanding amount: €97.2bn at end-June 2021 1% USD
4%
ʘ Repayment at maturity fully integrated in our MLT funding plans GBP
5% 61%
Foreign AUD
currencies JPY
High liquidity levels 39% 30% Others
ʘ Average monthly LCRs in Q2-21: 160% EUR
ʘ Liquidity reserves: €297bn at end-June 2021
ʘ Coverage ratio of short-term debt obligations: 241% at end-June 2021
(1) Excluding structured private placements and asset-backed securities and instead of an initial plan of €22bn to €25bn (2) As at 9 July 2021 (3) Excluding structured private placements
28 INVESTOR PRESENTATIONInnovation is at the heart of Groupe BPCE’s funding policy
≈€7.1bn BPCE SRI outstanding as of end-June 2021
GREEN SOCIAL
€3.7bn AuM 3.5G€ AuM
➢ Renewable Energies ➢ Human Development: Education, Healthcare and Social Services
➢ Green Buildings ➢ Local Economic Development
Green and Transition Bond Issues Social Bond issues
2020 2018 - 2019 2020
Euro Bond
2017
of the year
July 2020
2019 GREEN COVERED SOCIAL BONDS:
SOCIAL BONDS: SOCIAL BONDS:
SOCIAL BONDS: €250m equiv.
Methodology Note:
2015 BONDS: €1.25bn
Methodology Note:
Best green/ISR
deal of the year
2021
€512m equiv.
Human Development €1.02bn equiv.
Human Development
€1.68bn equiv
.Methodology Note:
Local Economic Development/
Covid 19
GREEN BONDS: Green Buildings September11,2020
Local Economic Development
GREEN BONDS: €500m
€300m Methodology Note:
Renewable Energies Renewable Energies TRANSITION BONDS: GREEN COVERED
€100m BONDS: €1.5bn
Methodology Note: Deal of the Year
Best
Green Buildings
for Healthcare
Sustainability
Bonds Most innovative
Bond in
2017 Investment Bank
September 7, 2017 for climate change
March 25, 2018 & sustainability
29 INVESTOR PRESENTATIONLiquidity reserves and short-term funding
TOTAL LIQUIDITY RESERVES OF GROUPE BPCE(1) SHORT-TERM FUNDING AND MLT DEBT MATURING
(in €bn) IN THE SHORT TERM (in €bn)
Coverage ratio of short-term funding + MLT debt
maturing in the short-term by liquidity reserves(2)
318 246% 234% 241%
307 297
146 176 145
Cash placed with 23
19 21
central banks MLT
56
51 57 LCR securities
106 113 102
105 ST
91 95 Assets eligible for
central bank
funding
Dec.31, March 31, June 30,
Dec. 31, March 31, June 30,
2020 2021 2021
2020 2021 2021
(1) Excluding MMF US Natixis deposits (2) Coverage ratio = Total liquidity reserves of Groupe BPCE / [Short-term funding +MLT debt maturing in the short term]
30 INVESTOR PRESENTATIONADDITIONAL
INFORMATION
31Q2-21 & H1-21 results – Restated figures
Strong jaws effect both in Q2-21 and H1-21
H1-21 net income(1) at €1.9bn
Restated figures Q2-21 Q2-20 % Change H1-21 H1-20 % Change
€m
Net banking income 6,337 5,183 22.3% 12,455 10,726 16.1%
Operating expenses (4,151) (3,837) 8.2% (8,806) (8,383) 5.0%
o/w expenses excluding Single Resolution Fund (4,161) (3,842) 8.3% (8,384) (7,983) 5.0%
Gross operating income 2,187 1,346 62.5% 3,649 2,343 55.8%
Cost of risk (332) (981) (66.2)% (822) (1,484) (44.6)%
Income before tax 1,924 282 x6.8 2,965 829 x3.6
Income tax (509) (129) x3.9 (921) (385) x2.4
Non-controlling interests (108) (3) ns (194) (30) ns
Net income – Group share excl. Coface net
1,308 150 x8.7 1,851 415 x4.5
contribution
Coface net contribution (19) 5 (102)
Reported net income – Group share 1,308 131 x10.0 1,856 312 x5.9
Restated figures: following the announced sale of a 29.5% stake in Coface on February 25, 2020 and for financial communication purposes, all impacts related to Coface are shown in a separate P&L line ‘Coface net contribution”.
From an accounting standpoint the 2020 Coface capital loss is classified in “Gain or loss on other assets” and the 2020 Coface residual stake impairment in “Share in net income of associates”.
(1) Group share
32 INVESTOR PRESENTATIONReconciliation of restated data to reported data
GROUPE GROUPE
BPCE BPCE
In millions of euros H1-21 Coface H1-21 H1-20 Coface H1-20
Reported Restated reported restated
Net banking income 12,455 12,455 10,726 10,726
Operating expenses (8,806) (8,806) (8,383) (8,383)
Gross operating income 3,649 3,649 2,343 2,343
Cost of risk (822) (822) (1,484) (1,484)
Share in net income of associates 156 (7) 149 68 33 101
Gains or losses on other assets (11) (11) (242) 112 (130)
Income before tax 2,972 (7) 2,965 685 145 829
Income tax (921) (921) (385) (385)
Non-controlling interests (196) 2 (194) 13 (43) (30)
Net income – excl. Coface net contribution 1,856 (5) 1,851 312 102 415
Coface – Net contribution 5 (102)
Net income – Group share 1,856 1,856 312 312
33 INVESTOR PRESENTATIONH1-21 results: reconciliation of alternative performance measures to restated data
Net Operating Income Net
banking expenses before tax income
income - Group
share
excluding
In millions of euros Coface
Restated H1-21 results 12,455 (8,806) 2,965 1,851
Revaluation of assets associated with deeply subordinated notes
Corporate center (2) (2) (8)
denominated in foreign currencies
Business lines/
Transformation and reorganization costs 11 (143) (154) (128)
Corporate center
Legal provision (19) (19) (10)
H1-21 results
12,465 8,662 3,140 1,996
excluding exceptional items & Coface net contribution
34 INVESTOR PRESENTATIONH1-20 results: reconciliation of alternative performance measures to restated data
Net Operating Associates Gains or Income Net
banking expenses losses on before tax income
income other - Group
assets share
excluding
In millions of euros Coface
Restated H1-20 results 10,726 (8,383) 101 (130) 829 415
Revaluation of assets associated with deeply subordinated notes
Corporate center 0 0 0
denominated in foreign currencies
Business lines/
Transformation and reorganization costs (133) (141) (274) (175)
Corporate center
Impact of Lebanon default on ADIR insurance Insurance (14) (14) (10)
Contribution to the insurance guarantee fund Insurance (16) (16) (8)
Business lines/
Disposals and impairment (10) (10) (10)
Corporate center
H1-20 results
10,742 (8,250) 125 11 1,143 618
excluding exceptional items & Coface net contribution
35 INVESTOR PRESENTATIONReconciliation of 2020 data to pro forma data (1/2)
Retail banking and
Q1-20 Q2-20 Q3-20 Q4-20
Insurance
Net Net Net Net
In millions of euros Operating Income Operating Income Operating Income Operating Income
banking Net income banking Net income banking Net income banking Net income
expenses before tax expenses before tax expenses before tax expenses before tax
income income income income
Reported figures 4,140 (2,803) 1,032 685 4,074 (2,585) 844 537 4,162 (2,629) 1,211 818 4,081 (2,796) 527 289
Analytical adjustments 1 2 2 1 1 1 2 1 1 1 2 1 1 1 2 1
Central institution’s expenses (65) 7 (58) (39) (65) 7 (58) (39) (65) 7 (58) (39) 194 (21) 173 118
Pro forma figures 4,076 (2,794) 977 646 4,010 (2,577) 789 499 4,098 (2,620) 1,156 780 4,276 (2,816) 702 407
Global financial
Q1-20 Q2-20 Q3-20 Q4-20
services
Net Net Net Net
In millions of euros Operating Income Operating Income Operating Income Operating Income
banking Net income banking Net income banking Net income banking Net income
expenses before tax expenses before tax expenses before tax expenses before tax
income income income income
Restated figures 1,462 (1,136) 134 41 1,223 (1,014) (71) (46) 1,447 (1,085) 135 54 1,896 (1,251) 465 225
Analytical adjustments (8) (3) (11) (6) (8) (3) (11) (6) (8) (3) (11) (6) (8) (3) (11) (6)
Pro forma figures
1,454 (1,140) 124 36 1,215 (1,017) (82) (51) 1,439 (1,088) 124 49 1,888 (1,254) (454) 219
36 INVESTOR PRESENTATIONReconciliation of 2020 data to pro forma data (2/2)
Corporate center Q1-20 Q2-20 Q3-20 Q4-20
Net Net Net Net
In millions of euros Operating Income Operating Income Operating Income Operating Income
banking Net income banking Net income banking Net income banking Net income
expenses before tax expenses before tax expenses before tax expenses before tax
income income income income
Restated figures (58) (606) (619) (461) (115) (238) (491) (341) (98) (191) (263) (169) 326 (309) 77 114
Analytical adjustments 7 2 9 4 7 1 9 5 7 1 9 5 7 1 9 4
Central institution’s expenses 65 (7) 58 39 65 (7) 58 39 65 (7) 58 39 (194) 21 (173) (118)
Pro forma figures –
13 (612) (553) (418) (42) (244) (425) (297) (26) (197) (197) (125) 139 (286) (88) 1
excl. Coface net contribution
37 INVESTOR PRESENTATIONExceptional items and IFRIC 21 effects per business line
H1-21
RETAIL BANKING GLOBAL CORPORATE GROUPE BPCE
& INSURANCE FINANCIAL CENTER
In millions of euros SERVICES
Impact of exceptional items
(33) (43) (99) (175)
(excl. Coface)
Impact of IFRIC 21 (58) (19) (231) (308)
Total impact on Income before
(91) (62) (330) (483)
tax
BANQUE CAISSE SEF INSURANCE PAYMENTS OTHER RETAIL BANKING
POPULAIRE D'EPARGNE NETWORKS & INSURANCE
In millions of euros NETWORK NETWORK
Impact of exceptional items (15) (13) (4) 0 (1) 0 (33)
Impact of IFRIC 21 (21) (25) (3) (8) 0 (1) (58)
Total impact on Income before
(36) (38) (7) (8) (1) (1) (91)
tax
AWM CIB GLOBAL
FINANCIAL
In millions of euros SERVICE
Impact of exceptional items
(17) (26) (43)
(excl. Coface)
Impact of IFRIC 21 (3) (17) (19)
Total impact on Income before
(20) (43) (62)
tax
38 INVESTOR PRESENTATIONGroupe BPCE: restated quarterly income statement per business line
RETAIL BANKING GLOBAL FINANCIAL CORPORATE GROUPE
& INSURANCE SERVICES CENTER BPCE
In millions of euros Q2-21 Q2-20pf Q2-21 Q2-20pf Q2-21 Q2-20pf Q2-21 Q2-20pf %
Net banking income 4,420 4,010 1,766 1,215 151 (42) 6,337 5,183 22.3%
Operating expenses (2,687) (2,577) (1,208) (1,017) (255) (244) (4,151) (3,837) 8.2%
Gross operating income 1,733 1,433 558 199 (104) (286) 2,187 1,346 62.5%
Cost of risk (283) (651) (27) (286) (21) (44) (332) (981) (66.2)%
Income before tax 1,466 789 534 (82) (75) (425) 1,924 282 x6.8
.8Income tax (392) (262) (138) 22 21 111 (509) (129) x3.9
Non-controlling interests (31) (28) (96) 9 18 16 (108) (3) ns
Net income – excl.
1,043 499 300 (51) (35) (297) 1,308 150 x8.7
Coface
Coface – Net contribution (19) (19) ns
Net income –
1,043 499 300 (51) (35) (317) 1,308 131 x10.0
Group share
39 INVESTOR PRESENTATIONGroupe BPCE: restated quarterly series
GROUPE BPCE
In millions of euros Q1-20pf Q2-20pf Q3-20pf Q4-20pf Q1-21 Q2-21
Net banking income 5,543 5,183 5,511 6,303 6,117 6,337
Operating expenses (4,546) (3,837) (3,905) (4,356) (4,655) (4,151)
Gross operating income 997 1,346 1,606 1,947 1,462 2,187
Cost of risk (504) (981) (589) (924) (490) (332)
Income before tax 548 282 1,083 1,069 1,041 1,924
Net income – excl. Coface 265 150 703 628 543 1,308
Coface – Net contribution (83) (19) (29) (5) 5
Net income – Group share
181 131 674 624 548 1,308
40 INVESTOR PRESENTATIONCost of risk by business lines
COST OF RISK(1) (in bps)
49 48
16 17
20 18 25 20
15 33 6 30 22
BP network 5 12 3
18
2
45
37
15
21 5 19
16 41
11 22 7 12 8
14 8 10
CE network 5 -2
45 49
13
21 20 23 25
10 36 18
17 26 20 19
RB&I 5 13 5
-1
163
123 121
124
95
112 112 53
65
47 17
CIB 11
39
9
30
6
8
9
55 49
29 29 32 18
26 17
19
24 25 31
12 21 18
Groupe BPCE 5 5 -1
Q1-20 Q2-20 Q3-20 Q4-20 Q1-21 Q2-21
S1/S2 S3
(1) Cost of risk expressed in annualized basis points on gross customer outstandings at the beginning of the period - Excluding exceptional items
41 INVESTOR PRESENTATIONRetail Banking & Insurance
Robust financial performance thanks to strong commercial activity;
Large positive jaws effect and decline in the cost of risk
Loan outstandings: €628bn, +7.8% YoY On-balance sheet deposits & savings(1):
o/w residential mortgages +8.6% YoY €543bn, +6.8% YoY
o/w consumer loans +6.8% YoY o/w sight deposits +9.4% YoY
o/w equipment loans +5.8% YoY
o/w State-guaranteed loans: €30.2bn
NET BANKING INCOME(5)
Underlying figures(2) Q2-21 % Change H1-21 % Change +8.0% +8.4% +5.9% +18.5%
€m
Net banking income 4,420 10.0% 8,718 7.6%
Operating expenses 6,530 7,050 551 597 465 492 235
(2,669) 6.0% (5,414) 3.0% 198
Gross operating BP + CE networks(6) FSE Insurance Payments
1,751 16.6% 3,304 16.0%
income
Cost of risk(3) (283) (56.4)% (670) (29.7)% OPERATING EXPENSES(5)
Income before tax BP + CE networks FSE Insurance Payments
after IFRIC 21 1,455 75.7% 2,724 38.0%
(4,285) (4,400) (298) (309) (250) (262) (184) (203)
restatement
Cost/income ratio(4) 61.0% (2.3)pp 61.4% (2.7)pp
+2.7% +3.7% +5.0% +10.3%
H1-20 H1-21
(1) Excluding centralized regulated savings (2) Excluding exceptional items (see annex) (3) Methodological effect in Q1-20: +€115m (4) After IFRIC 21 restatement (5) Excluding Banque Palatine and Oney Bank (6) Excluding
provision for home-purchase savings schemes
42 INVESTOR PRESENTATIONRetail Banking & Insurance - Banques Populaires
Sharp increase in GOI: +30.1% in H1-21, expenses well under control
LOAN OUTSTANDINGS - in €bn - DEPOSITS & SAVINGS PRODUCTION
+9.6% +8.9% Retail market – P&C
189 +64%
341 In thousands of contracts
267 313 116
244 19 Off-balance sheet D&S 81
75 2.5
+26% Consumer loans
14 2.0
In €bn
16
Centralized regulated 14
savings 2.3 Life insurance gross Inflows
1.4 +59% In €bn
+8.8 %
223 243
On-balance sheet D&S,
36.8%
38.3% +1.5pp % share of Unit-Linked products
June 2020 June 2021 excluding centralized items
June 2020 H1-20 H1-21
State-guaranteed loans June 2021
Underlying figures(1) Q2-21 % Change H1-21 % Change
+11.5% +18.6% +6.0%
€m
Net banking income 1,738 17.1% 3,407 11.5%
Operating expenses (1,048) 5.5% (2,119) 2.6% 3,414
2,068
Gross operating income 690 40.6% 1,287 30.1% 3,063
1,744
1,262 1,337
Cost of risk(2) (136) (53.0)% (301) (25.8)%
(4) (4)
Income before tax Net banking income Net interest income Commissions
556 x2.8 1,034 65.9%
after IFRIC 21 restatement
Cost/income ratio(3) 60.9% (6.8)pp 61.6% (5.3)pp
(1) Excluding exceptional items (see annex) (2) Methodological effect in Q1-20: +€34m (3) After IFRIC 21 restatement (4) Excluding provision for home-purchase savings schemes
43 INVESTOR PRESENTATIONRetail Banking & Insurance - Caisses d’Epargne
Strong increase in GOI: +9.2% in H1-21
LOAN OUTSTANDINGS - in €bn - DEPOSITS & SAVINGS PRODUCTION
+4.7% 489
+6.5% 467 255 338 Retail market – P&C
+33% In thousands of contracts
325 134 140
305 10 Off-balance sheet D&S 5.1 Consumer loans
7 61 3.8 +33%
59 In €bn
Centralized regulated 7.7 Life insurance gross Inflows
savings 4.3 +80%
+5.0% In €bn
273 288 35.8% +1.4pp % share of Unit-Linked products
On-balance sheet D&S,
June 2020 June 2021 excluding centralized items 34.4%
H1-20 H1-21
State-guaranteed loans June 2020 June 2021
Underlying figures(1) Q2-21 % Change H1-21 % Change
+4.9% +9.5% +5.0%
€m
Net banking income 1,825 3.6% 3,620 5.1%
Operating expenses (1,128) 6.2% (2,281) 2.8% 3,636
3,467 2,043
Gross operating income 696 (0.3)% 1,339 9.2%
1,867
Cost of risk(2) (66) (76.0)% (219) (44.8)% 1,576 1,655
(4) (4)
Income before tax Net banking income Net interest income Commissions
620 51.1% 1,147 34.4%
after IFRIC 21 restatement
Cost/income ratio(3) 62.5% 1.5pp 62.3% (1.4)pp
(1) Excluding exceptional items (see annex) (2) Methodological effect in Q1-20: +€75m (3) After IFRIC 21 restatement (4) Excluding provision for home-purchase savings schemes
44 INVESTOR PRESENTATIONRetail Banking & Insurance
DEPOSITS & SAVINGS (in €bn) LOAN OUTSTANDINGS (in €bn)
847.2 Change YoY Change YoY
796.7
+6.3% +7.8%
257.6 627.7
235.6
582.4
+9.4% Sight deposits
210.9 349.4
196.4 +7.4% Passbook savings accounts 321.6
+1.1% Regulated home savings plans
81.4 82.2 +7.8% Term accounts +8.6% Residential mortgages
49.1 52.9 35.3 Consumer loans
2.6 (40.9)% BPCE bonds placed in the retail network 33.1 +6.8%
4.4
24.1 49.9 55.4
21.7 +10.7% Mutual funds +10.9% Short-term credit facilities
185.7 193.9 +4.4% Life insurance 166.1 +5.8% Equipment loans
157.0
Other Other
22.3 22.9 20.7 21.5
June 2020 June 2021 June 2020 June 2021
45 INVESTOR PRESENTATIONRetail Banking & Insurance - Financial Solutions & Expertise
Good momentum in commercial activities, all businesses are catching
opportunities in the economic turnaround
Business activities Breakdown of revenues per business line in H1-21
ʘ Consumer credit: record level of personal loan financing in H1-21, rising to €7bn
(+39% vs. H1-20) 7% 3%
ʘ Sureties & financial guarantees: further momentum in guarantees on loans to 22% Consumer credit
12%
individual customers (gross written premiums: +21% vs. H1-20) Sureties & financial guarantees
Retail securities services
ʘ Retail securities services: good half-year driven by growth in the number
Leasing
of stock market transactions in France despite a very strong 2020 baseline €597m Factoring
(+3% vs. H1-20)
23% Socfim
ʘ Leasing: continued good commercial momentum with, in June, a record level of 25% Other
equipment lease production and long-term vehicle leasing orders in a context
marked by sustained activity with the retail banking networks 8%
ʘ Factoring: confirmed business recovery in Q2-21 with factored revenues up 33%
vs. Q2-20
Underlying figures(1) Q2-21 % Change H1-21 % Change
ʘ Socfim: building on the high levels reached by new production in Q1-21, activities €m
continued to enjoy strong momentum in Q2-21 (+14% vs. Q2-20)
Net banking income 302 15.0% 597 8.4%
Results Operating expenses (153) 8.4% (309) 3.7%
ʘ Net banking income: very robust performance in Q2-21 heightened by a Q2-20
Gross operating income 148 22.6% 287 13.9%
baseline effect
ʘ Operating expenses: in line with strong activity; cost to income ratio at 51.2% Cost of risk (30) 17.5% (61) 21.2%
in Q2-21 (-2.9pp vs. Q2-20) Income before tax
117 23.6% 229 11.9%
after IFRIC 21 restatement
ʘ Cost of risk: increase year-on-year, reflecting prudent risk management
Cost/income ratio(2) 51.2% (2.9)pp 51.4% (2.3)pp
(1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement
46 INVESTOR PRESENTATIONRetail Banking & Insurance - Insurance
Scope: Insurance division of Natixis
Solid commercial activity and financials
Premiums(1) In €bn Life insurance AuMs(1) Share of UL products – H1-21
7.9 +50%
+7% YTD
+8% YoY share of UL +3pp +2pp
3.7 +79%
+12% 5.3 €78.1bn
2.1 1.4 €6.4bn
2.1 1.9 €22bn 28%
UL €2.4bn 38%
+58%
+95% 78.1 €56
76.6 €
72.7 bn €4.0bn
Q2-20 Q2-21 H1-20 H1-21 AuM at Net inflows Net inflows Reevaluation AuM at AuM Gross inflows
12/31/2020 € UL & others 06/30/2021
P&C Insurance Life and Personal protection
Underlying figures(2) Q2-21 % Change H1-21 % Change
€m
Key indicators(1)
ʘ €2.9bn gross inflows and €1.7bn net inflows for Life insurance in Q2-21 Net banking income 252 6.7% 492 5.9%
(€6.4bn and €3.9bn respectively for H1-21), strongly up vs. prior year period Operating expenses (124) 6.6% (262) 5.0%
ʘ P&C Insurance premium growth +12% vs. Q2-20
Gross operating income 128 6.7% 230 7.0%
ʘ P&C and Personal Protection equipment rate at 29.3% (+0.6pp QoQ) for
the Banques Populaires and at 32.5% for the Caisses d’Epargne Income before tax
125 10.1% 240 6.2%
(+0.4pp QoQ) after IFRIC 21 restatement
ʘ P&C combined ratio at 93.5% in Q2-21 (+0.7pp YoY), 93.2% in H1-21 Cost/income ratio(3) 50.8% (0.6)pp 51.7% (0.1)pp
(+1.6pp YoY)
(1) Excluding the reinsurance agreement with CNP (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement
47 INVESTOR PRESENTATIONRetail Banking & Insurance - Payments/ Oney Bank
PAYMENTS
Scope: Payments division of Natixis
Net revenues: +18.5% in H1-21 off a low base related to the lockdown measures
in France having impacted the April/May commercial activity in 2020
Underlying figures(1) Q2-21 % Change H1-21 % Change
ʘ Payment Processing & Services: net revenues +18% in H1-21; number of card €m
transactions processed +17% vs. H1-20. Contactless transactions accounting for
~47% of transactions in Q2-21 vs. ~36% in Q2-20. Strong growth of mobile Net banking income 118 37.7% 235 18.5%
payments (x2.6 vs. Q2-20) and instant payment transactions (x2.1 vs. Q2-20)
Operating expenses (101) 10.5% (203) 10.3%
ʘ Digital: PayPlug continues to benefit from its positioning across small and
medium-sized merchants (business volumes +78% in H1-21) and with growth Gross operating income 17 ns 31 ns
across Groupe BPCE retail networks (business volumes x3.3 in H1-21)
Dalenys featuring dynamic activity levels with business volume growth Cost of risk (7) ns (7) ns
accelerating at +46% in H1-21 Income before tax
10 ns 25 55.0%
ʘ Benefits: Issuing volumes for the Reward activity “Titres Cadeaux” +27% in H1-21 after IFRIC 21 restatement
and +25% in H1-21 for meal vouchers Cost/income ratio(2) 86.0% (21.2)pp 86.4% (6.4)pp
Positive jaws effect in Q2-21 and in H1-21 despite the investments being made
in order to ensure sustainable development
ONEY BANK
Outstanding loans: €2.5bn at end-June 2021, down 4% Underlying figures(1) Q2-21 % Change H1-21 % Change
ʘ Mainly due to the drop in consumer loans caused by health restrictions affecting €m
physical points of sale
Net banking income 101 (10.2)% 205 (8.2)%
Loan production: +20.6% in H1-21 at €1,640m
ʘ Sharp increase in “Split payment solution 3x4x”: +21% at €762m Operating expenses (70) 0.7% (142) (1.1)%
Split payment solution Gross operating income 31 (27.8)% 63 (20.8)%
(3x4x) 46%
H1-21 breakdown of loan Assigned credit
Cost of risk (20) (11.1)% (40) (14.0)%
production by product €1.640m 33%
Income before tax
11 (46.0)% 23 (30.2)%
Revolving credit after IFRIC 21 restatement
Personal loans Cost/income ratio(2) 69.1% 7.6pp 69.1% 4.8pp
Change YoY, unless otherwise indicated
9%
(1) Excluding exceptional items (see annex) (2) After IFRIC 21 restatement 12%
48 INVESTOR PRESENTATIONGlobal Financial Services/ Asset & Wealth Management
Robust AuM growth and fee rate dynamic
Assets under management(1) (in €bn)
35 1,183
AuMs: +3% QoQ with positive net inflows and market effect. Favourable mix Controlling affiliates WCM IM
shift notably across European affiliates with faster AuM growth at Mirova,
DNCA and AEW, leading to a higher average fee rate (6) 82
1,153
5
AM net inflows(1): excl. Ostrum AM reached ~€5bn in Q2-21 mainly driven
74 (4)
by North American affiliates and private assets
1,100
ʘ Second quarter of positive net inflows at Harris Associates in a row (AuM
now ~$123bn) 1,079
ʘ Fifth consecutive quarter of positive net inflows on LT products 833
overall (cumulative ~€26bn net inflows over the period) AuM at Net flows Net flows Market FX impact/ AuM at
03/31/2021 excl. Ostrum AM Ostrum AM effect Other 06/30/2021
excl. H2O excl. H2O
AWM gross operating income: +39% YoY in Q2-21 and +41% in H1-21
ʘ AM net revenues excl. performance fees +22% YoY in Q2-21 (+16% in
H1-21), mainly driven by higher average AuM, management fees and Underlying figures(2) H1-21 % Constant H1-21 %
financial revenues €m Change Fx incl. Change
ʘ AM perf. fees: €20m in Q2-21 in line with Q2-20 levels. Performance fees % Change H2O AM
diversified across multiple affiliates Net banking income 1,586 16.3% 22.6% 1,625 9.9%
ʘ Q2-21 net revenue contribution up an average ~15% YoY across affiliates
Operating expenses (1,186) 9.7% 15.1% (1,214) 9.1%
in both North America and Europe
ʘ AWM expenses: +16% YoY in Q2-21 (+10% YoY in H1-21) mainly driven Gross operating income 400 41.4% 52.4% 411 12.3%
by higher variable comp. on the back of increased profitability. Positive Income before tax
jaws effect after IFRIC 21 402 45.0% 410 13.7%
with a cost/income ratio(3) improving to 73.0% in Q2-21 (-3.5pp YoY) and to restatement
74.6% in H1-21 (-4.5pp YoY)
Cost/income ratio(3) 74.6% (4.5)pp 74.6% (0.5)pp
(1) Europe including Dynamic Solutions and Vega IM, excluding H20 AM (€17bn AuM as at 06/30/2021); US including WCM IM (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement
49 INVESTOR PRESENTATIONGlobal Financial Services/ Corporate and Investment Banking
Strong commercial activity and improved cost of risk
Net revenues(1) (in €m)
Net revenues continue to exhibit solid momentum on the back of a strong 845 929 923 1,852
commercial activity and off a low base due to the H1-20 market conditions 96 135
126 231
(mainly spreads widening and dividend mark-downs on equity products) 1,255
522 661
Global markets: 99 93
336 202
343 393 728
ʘ FIC-T revenues up YoY at €287m in Q2-21 (€617m in H1-21) with a higher
contribution from Credit, Rates and Treasury more than offsetting a lower 619
321 321 167
contribution from FX 275
127 108
ʘ Equity revenues at €108m in Q2-21 (€275m in H1-21) driving by favorable
33
market conditions and a strong commercial successes, notably with the
250 330 642 617
Groupe BPCE networks 277 213 287
Global finance: 1 25 43 7 (7) (55)
(175) 0
(208)
ʘ Net revenues +22% YoY at €393m in Q2-21 (+18% in H1-21), driven by
Q2-20 Q3-20 Q4-20 Q1-21 Q2-21 H1-20 H1-21
higher contribution from the portfolio, notably with corporates, as well as on
CVA/DVA desk FIC-T Equity Global finance Investment banking
Real assets (mainly Infrastructure) and Trade finance and M&A
Investment banking/M&A: Constant
Underlying figures(2)
ʘ Investment banking revenues slightly down YoY in Q2-21 on the back €m % % Fx %
of a lower contribution from DCM although +10% in H1-21 Q2-21 Change H1-21 Change Change
ʘ M&A revenues more than doubled YoY in Q2-21 (+20% in H1-21) Net banking income 919 79.8% 1,859 56.1% 63.0%
off a low base and with strong contributions from Natixis Partners and Operating expenses (583) 21.9% (1,159) 11.8% 14.9%
Solomon Partners
Gross operating income 336 x10.2 700 x4.5
Positive jaw effect with a cost/income ratio(3) improving to 64.3% in Q2-21 Cost of risk (28) (90.0)% (109) (76.8)%
(-31.0pp YoY) and 61.4% in H1-21 (-24.0pp YoY) Income before tax
Cost of risk improving and benefiting from benign Stage 3 net provisioning after IFRIC 21 303 ns 614 ns
in Q2-21 restatement
Cost/income ratio(3) 64.3% (31.0)pp 61.4% (24.0)pp
(1) Total excluding CVA/DVA desk and other; figures at current FX (2) Excluding exceptional items (see annex) (3) After IFRIC 21 restatement
50 INVESTOR PRESENTATIONGroup internal solidarity
& guarantee system call
Internal solidarity and guarantee system defined by law between all affiliated French Regulated Credit
Institutions (FRCI) within the group
DESCRIPTION BPCE SA has the legal obligation to take all necessary measures to guarantee the liquidity
and the solvency of its FRCI affiliates
The French Monetary and Financial Code creates a joint solidarity fund (at BPCE SA level)
immediately available (€1.283bn as of June 30, 2021)
AMOUNT
In addition, mobilization of the total regulatory capital of the 2 networks if needed (€56.9bn of Tier 1
capital as of June 30, 2021 )
Financial failings of any affiliated FRCI (including BPCE SA) within the group would be covered
CONSEQUENCES by the aggregate Tier 1 capital of the 2 networks
Only 1 credit risk and 1 senior debt rating for all affiliated FRCI within the group (excl. CFF with S&P)
BPCE SA, as the central institution, has taken measures to safeguard liquidity
and solvency of its affiliated FRCI
PREVENTION
Examples: Natixis: guarantee mechanism on GAPC credit portfolio
Crédit Foncier de France: €1.5bn capital increase in late 2011
The aggregate Tier 1 capital of the 2 networks ultimately protects the Bondholders
51 INVESTOR PRESENTATIONConsolidated balance sheet
ASSETS LIABILITIES
June 30, 2021 Dec. 31, 2020 June 30, 2021 Dec. 31, 2020
(in millions of euros) (in millions of euros)
Cash and amounts due from central banks 151,361 153,403 Amounts due to central banks
Financial assets at fair value through profit or loss 186,044 196,260 Financial liabilities at fair value through profit or loss 162,369 191,371
Hedging derivatives 7,662 9,608 Hedging derivatives 13,523 15,262
Financial assets at fair value through shareholders' equity 50,043 49,630 Debt securities 229,051 228,201
Financial assets at amortized cost 27,218 26,732 Amounts due to credit institutions 153,187 138,416
Loans and receivables due from credit institutions Amounts due to customers
99,064 90,018 648,664 630,837
and similar at amortized cost
Loans and receivables due from customers at amortized cost 757,573 746,809 Revaluation difference on interest rate risk-hedged
198 243
portfolios
Revaluation difference on interest rate risk-hedged portfolios 6,833 8,941
Current tax liabilities 1,014 485
Insurance activity investments 129,175 124,566
Current tax assets 642 Deferred tax liabilities 1,140 1,239
747
Deferred tax assets 3,476 3,667 Accrued expenses and other liabilities 21,476 22,662
Accrued income and other assets 14,282 16,367 Liabilities associated with non-current assets held for sale 2,173 1,945
Non-current assets held for sale 2,434 2,599 Insurance-related liabilities 121,014 114,608
Investments in associates 4,383 4,586 Provisions 5,451 6,213
Investment property 774 770 Subordinated debt 16,262 16,375
Property, plant and equipment 6,089 6,222 Shareholders' equity 76,923 78,412
Intangible assets 1,037 1,038 Equity attributable to equity holders of the parent 76,266 72,683
Goodwill 4,354 4,307 Non-controlling interests 657 5,728
TOTAL ASSETS 1,452,445 1,446,269 TOTAL LIABILITIES 1,452,445 1,446,269
52 INVESTOR PRESENTATIONYou can also read
