Bpce: Results for the first quarter of 2024
Paris, May 2, 2024
Results for the first quarter of
2024
Strong increase in reported net income;
financial strength at the highest level; dynamic
of all our client franchises; strategic external growth
operation
Q1-24: Net banking income of €5.8bn,
almost stable vs. Q1-23 and up 5% vs. Q4-23; continued momentum in
Retail Banking & Insurance activities and positive impact of
asset repricing in the networks; robust performance for Corporate
& Investment Banking and Asset Management
businesses.
Reported net income of €875m, up 64% YoY
and x2.3 QoQ (-22% excluding SRF contribution)
Solvency remains very high with a CET1
ratio of 15.6%2, including
organic capital creation of 14bps during the quarter
Retail Banking & Insurance: growth
in the client base of the Banque Populaire and Caisse d'Epargne
networks across all market segments; dynamic conquest with 241,000
new customers3 despite a slowdown
in mortgage lending. Net banking income down by a limited 4% vs.
Q1-23 thanks to the effects of loan repricing related to the cost
of liabilities
- Local & regional
financing: loan outstandings up 2% YoY to
€717bn at end-March 2024
- Clients’
deposits4 up 2% YoY to
€675bn at end-March 2024, up by €13bn
- Insurance:
sustained gross inflows of €4.6bn in life
insurance in Q1-24. Premiums up 39% vs.
Q1-23. Client equipment rate5
for P&C and personal protection insurance stood at
34.4% at end-March 2024, +0.3% YoY
- Financial Solutions &
Expertise: net banking income up 4% vs.
Q1-23, driven in particular by the Leasing and Factoring
businesses
- Digital & Payments: +5%
increase YoY in the number of card transactions at
end-March 2024; roll-out of Tap to Pay to all our
clients
Global Financial Services: revenues up
4% vs. Q1-23; continued growth in the Corporate & Investment
Banking business and solid rebound in Asset Management
- Corporate & Investment
Banking: net banking income of €1.1bn, up 3% vs. Q1-23; revenues
for Global Markets stable vs. Q1-23 in a more sluggish market; 11%
growth in net banking income for Global Finance and 24% for
Investment Banking in Q1-24 YoY
- Asset & Wealth
Management: 5% YTD growth in Natixis IM assets under management,
reaching €1,225bn at end-March 2024; net inflows of €6bn in
Q1-24 driven notably by fixed-income expertise;
strong growth in net banking income, +7% vs. Q1-23
at constant exchange rates.
Expenses down 10% vs. Q1-23 (up 3.7%
excluding SRF contribution)
Cost of risk: €382m in Q1-24, or
18bps, including reversals of provisions and higher
provisions for occurred risks, reflecting the economic environment
in certain sectors and Groupe BPCE's position in its markets
Financial strength: CET1 ratio of
15.6%3 at end-March
2024, including the full estimated dividend for 2024;
liquidity reserves stand at €324bn
Project6
to acquire the activities7
of Société Générale Equipment Finance (SGEF) in line with
Groupe BPCE's strategy to develop Specialized Financing services in
Europe
- SGEF, an international
player in the equipment leasing segment, is present in 25 countries
with a distribution model based on a network of vendors, directly
and through banking partnerships.
- With this project, Groupe
BPCE will become the European leader in the equipment leasing
market
Natixis Corporate & Investment
Banking announces the extension of Natixis Partners' participation
in Clipperton, a boutique specializing in mergers &
acquisitions advisory services in the tech sector.
1 See the notes on methodology appended to this
press release 2 Estimated figures at end-March 2024 3 +17.700
additional active clients since the beginning of the year 4
On-balance sheet deposits and savings within the scope of the
Retail Banking & Insurance business unit 5 Within the scope of
individual clients banking with the BP and CE 6 This project is
subject to applicable social procedures and the approval of the
relevant regulatory and competition authorities 7 Excluding SGEF’s
interests in the Czech Republic and Slovakia
Nicolas Namias, Chairman of the
Management Board of BPCE, said: “The first quarter of the
year was marked by Groupe BPCE’s strong performance, with a sharp
rise of the reported net income. The Banques Populaires and Caisses
d'Epargne played their role to the full in support of their
customers and the French economy through the multiplication of
initiatives, to accompany first-time buyers and condominium unit
owners in the real-estate sector or the implementation of
exceptional emergency measures to assist farmers. Natixis CIB and
Natixis IM, our global business lines, both performed extremely
well. The Group’s net income also reflects our tight control over
expenses, a continuing low cost of risk, even if it reflects the
economic environment in certain sectors and the leading position of
our regional banks in their markets; it also reflects the impact of
the discontinuation of Single Resolution Fund contributions after
10 years of making significant payments into this instrument
designed to ensure the stability of the banking system.
Buoyed up by the dynamism of its business lines
and the final drafting of its strategic plan – to be published on
June 26 later this year – Groupe BPCE is already on the move with
the announcement of a major strategic operation for its future
growth with the project to acquire SGEF, making it the European
leader in equipment leasing solutions. We have also announced the
continuation of an international M&A franchise with the renewal
of the partnership between Natixis CIB and Clipperton.
When, at this moment, the Olympic Flame is
sailing across the Mediterranean on the three-masted of the Belem
Caisse d'Epargne Fundation, accompanied by 16 young people from
every region of France, Groupe BPCE’s 100,000 employees are
preparing to welcome the Olympic & Paralympic Games to France.
As a premium partner of this event, we are mobilizing all our
energies and expertises to ensure that the Games become an
unforgettable moment of national harmony and pride.”
The quarterly financial statements of Groupe
BPCE for the period ended March 31, 2024, approved by the
Management Board at a meeting convened on April 30, 2024, were
verified and reviewed by the Supervisory Board, chaired by Thierry
Cahn, at a meeting convened on May 2, 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
1 Reported figures as far as “Net
income (Group share)”2 “Underlying” means exclusive of exceptional
items3 The cost/income ratio of Groupe BPCE is calculated on the
basis of net banking income and operating expenses excluding
exceptional items, the latter being restated to account for the
contribution to the Single Resolution Fund (SRF) booked in the
Corporate center business unit. The calculations are detailed in
the annex on pages 18. to 21.
1. Groupe
BPCEUnless 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 Q1-24 and
Q1-23.
Groupe BPCE's net banking
income, which stood at 5,753 million euros, is almost
stable in Q1-24 vs. Q1-23.
The revenues of the Retail Banking &
Insurance business unit (RB&I) stood at 3,763 million
euros (-4%) in Q1-24. The Banques Populaires and Caisses d'Epargne
reported strong sales performance. The continuing rise in the
return on assets partly offset the increase in the cost of
liabilities, notably regulated and non-regulated savings; net
banking income from the retail banking networks
was down 5%. The Financial Solutions &
Expertise business unit enjoyed 4% revenue growth in
Q1-24, driven by the strength of leasing and factoring services.
The Digital & Payments business unit enjoyed
an extremely dynamic business performance. The
Insurance business unit benefited from very strong
momentum in life insurance.
Global Financial Services
reported revenues up 4% in Q1-24, rising to 1,933 million euros. In
Q1-24, the net banking income generated by the business unit was
driven by Asset & Wealth Management, whose net
banking income rose by 6% in Q1-24, thanks to a higher base of
assets under management. Corporate & Investment
Banking was driven by the strong commercial performance
achieved by the Global Markets, Global Finance and Investment
Banking and M&A businesses.
Net interest income came to 1.9
billion euros in Q1-24, down 4% year-on-year.
Commissions, which stood at 2.6 billion euros in
Q1-24, were up 4% year-on-year.
Operating expenses fell by 10%
year-on-year to 4,151 million euros in Q1-24. If the SRF
contribution is excluded, they rose by 4%.
The underlying cost/income ratio,
excluding the SRF1
contribution, came to 71.5% in Q1-24, up
3.6pps.
Gross operating income rose by
31% in Q1-24, to stand at 1,602 million euros.
Groupe BPCE's cost of risk
stood at 382 million euros, up 17% in Q1-24, reflecting the current
deterioration in certain business sectors and Groupe BPCE's
position in the economy.
Performing loans are rated ‘Stage 1’ or ‘Stage 2’,
while outstandings with an occurred risk are rated ‘Stage 3.’
1 The underlying cost/income ratio of Groupe BPCE
is calculated on the basis of net banking income and operating
expenses excluding exceptional items and adjusted for the
contribution to the SRF (Single Resolution Fund), allocated to the
Corporate center division. The calculations are detailed in the
annex on 18. to 21.
For Groupe BPCE in Q1-24, the
amount of provisions for outstanding loans stood
at 382 million euros compared with 326 million euros in Q1-23. This
total can be broken down as follows:
- For performing
loans, provisions for a total of 70 million euros were
booked in Q1-23 while 145 million euros of provisions were reversed
in Q1-24,
- Allocations to provisions for
loans with an occurred risk rose from 257 million
euros in Q1-23 to 527 million euros in Q1-24.
For Groupe BPCE in Q1-24, the cost of
risk stood at 18bps of gross customer
outstandings (16bps in Q1-23). This figure includes a reversal of
provisions on performing loans of 7bps (vs. an allocation to
provisions of 3bps in Q1-23) and an allocation to provisions for
loans with an occurred risk of 25bps vs. allocations of 12bps in
Q1-23. The cost of risk stood at 16bps for the
Retail Banking & Insurance business unit
(17bps in Q1-23), including a 7bps reversal of provisions for
performing loans (vs. a 2bps allocation to provisions in Q1-23) and
a 23bps allocation to provisions for loans with an occurred risk
(vs. a 15bps provision in Q1-23). The cost of risk of the
Corporate & Investment Banking business unit
came to 32bps (-13bps in Q1-23), including a 2bps
reversal of provisions on performing loans (vs. a 1bp reversal in
Q1-23) and a 34bps provision on loans with an occurred risk (vs. a
12bps reversal in Q1-23).
The ratio of non-performing
loans to gross loan outstandings was 2.4%
at March 31, 2024, stable vs. end-December 2023.
Reported net income (Group
share) in Q1-24 came to 875 million euros, up 64% (533
million euros in Q1-23), and down 22% compared with Q1-23 if the
SRF contribution is excluded. It stands 2.3 times higher than in
Q4-23.
Underlying net income (Group
share)2 stood at 904 million euros in
Q1-24, up 59% on Q1-23 (570 million euros).
2 “Underlying” means exclusive of exceptional
items
2. BPCE, fully
committed to all its customers, is entering a new phase of
growthGroupe BPCE has made a major commitment to
supporting the French economy and meeting the needs of its
customers, in particular through:
- Specific measures to facilitate
home loans and energy renovation projects with:
- The ‘Starden’ real-estate loan for
young people and public sector employees,
- Solutions designed to support and
encourage first-time buyers throughout France to purchase their
main residence,
- 46,000 loan applications (BP and CE
combined) for a total of more than 5 billion euros in Q1-24,
- Loan solutions designed for
renovating buildings.
- Support for the local economy with
the launch of a new 535 million euro ISE fund to help finance the
development of French intermediate-sized enterprises (ISEs)
throughout the country.
- Specific support for the healthcare
sector:
- Thanks to a partnership with the
European Investment Bank (EIB), a 150 million euro package of
subsidized loans will be made available to support new medical
facilities and the realization of projects designed to develop the
activities of healthcare professionals throughout France.
- Exceptional support for the farming
sector with the introduction of new initiatives for farming
customers.
- The roll-out of ‘Tap to Pay’ to all
our customers: to date ~23,400 contracts have been signed and
~6,170 customers are active users.
- The deployment since the beginning
of 2023 of ESG interviews to improve the non-financial knowledge of
our corporate clients in order to measure the positive impact of
this clients and offer them support solutions to intensify this
impact: to date, almost 22,000 ESG interviews have been carried
out.
With its universal banking business model,
Groupe BPCE is buoyed up by the dynamism of its 3 growth
drivers:
- Retail Banking, a front-ranking
player in France, which is adapting to the new interest-rate
environment,
- Corporate & Investment Banking,
which is pursuing sustainable growth thanks to its worldwide
expertise,
- Asset Management, which is enjoying
a strong rebound in all the geographical regions where it is
present.
3. Strategic
developments
- Groupe BPCE has set the objective
of speeding up the development of its specialized financing
businesses in Europe, particularly leasing. In this context, the
Group has announced the signature of a memorandum of understanding1
with Société Générale with a view to acquiring the activities of
Société Générale Equipment Finance (SGEF)*.
Groupe BPCE holds a leading position in leasing
in France through BPCE LEASE and is ranked No. 1 for SME
customers.SGEF is a leading international player in the leasing of
industrial equipment with a wide range of equipment financing
solutions and associated services.SGEF is present in 25 countries
(operating directly in 16 countries), chiefly in Europe but also in
the United States. SGEF's business model strikes a good balance
between distribution via partnerships with vendors (2/3) and
distribution via direct origination and partnerships with retail
banking networks (1/3).With the acquisition of SEGF, Groupe BPCE
has the opportunity to become the No.1 European player in equipment
leasing.
The impact is limited on the CET1 ratio and the
transaction is already included in the 2024 refinancing plan. This
acquisition will add variable-rate activities to Groupe BPCE's net
interest income base.
- Natixis CIB has announced the
extension of Natixis Partners' stake in Clipperton, a boutique
specializing in mergers & acquisitions in the tech and digital
sector.
Natixis CIB is continuing to develop a
successful M&A franchise that combines complementary sector
expertise within a business model comprised of 7 M&A boutiques
serving French and international clients.
* Excluding SGEF activities in the Czech
Republic and Slovakia1 This project is subject to the applicable
social procedures and the approval of the competent regulatory and
competition authorities.
4. Capital,
loss-absorbing capacity, liquidity and
funding4.1 CET1
ratio1
Groupe BPCE's
CET11 ratio at the end of March
2024 reached an estimated level of
15.6%1, stable over the
quarter. This level is explained by the following impacts:
- Retained earnings: +19bps,
- Change in risk-weighted assets:
-5bps,
- Net issuance of cooperative shares:
+3bps,
- Estimated dividend payout related
to cooperative shares in 2024: -19bps,
- Other items: +2bps.
Groupe BPCE generated organic capital equal to
14bps during the quarter.
Groupe BPCE had an estimated buffer of
16.6 billion euros above the threshold for triggering the
maximum distributable amount (MDA) for equity
capital at the end of March 2024, while taking account of the
prudential requirements laid down by the ECB applicable on March
31, 2024.
4.2 TLAC
ratio1
The Total Loss-Absorbing Capacity (TLAC)
estimated at the end of March 2024 stands at 119.6 billion euros1.
The TLAC ratio, expressed as a percentage of risk-weighted assets,
stood at an estimated 26.1%3 at end-March 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 March 31, 2024.
4.3 MREL
ratio1
Expressed as a percentage of risk-weighted
assets at March 31, 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 26.1%1 and
34.7%1 respectively, well above the minimum requirements laid down
by the SRB on March 31, 2024, of 22.39%3 and 27.28%3
respectively.
4.4 Leverage
ratio1
At March 31, 2024, the estimated leverage ratio
stood at 5.1%1 , well above the leverage ratio requirement.
4.5 Liquidity
reserves at a high level
The Liquidity Coverage Ratio (LCR) for Groupe
BPCE is well above the regulatory requirement of 100%, standing at
152% based on the average of end-of-month LCRs in the 1st quarter
of 2024.The volume of liquidity reserves stood at 324 billion euros
at the end of March 2024, representing a coverage ratio of 186% of
short-term financial debts (including short-term maturities of
medium-/long-term financial debt).
4.6 MLT
funding plan: 60.5 % of the 2024 plan already completed by April
24, 2024
For 2024, the size of the MLT funding plan,
excluding structured private placements and 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 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 April 24, 2024, Groupe BPCE has raised 17.1
billion euros, excluding structured private placements and ABS
(60.5% of the 28.3 billion euro program):
- 6.0 billion euros in TLAC funding:
1.6 billion euros in Tier 2 (79.8% of requirements) and 4.4 billion
euros in senior non-preferred debt (68.5% of requirements),
- 3.4 billion euros in senior
preferred debt (61.5% of requirements),
- 7.7 billion euros in covered bonds
(53.8% of requirements).
ABS issues amounted to 2.7 billion euros as at
April 24, 2024, i.e. 67.5% of the target.
Solvency, Total loss-absorbing capacity – see notes
on methodology1 Estimated at March 31, 20242 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 requirements3
Requirements as at March 31, 2024
5. Results of the
business linesUnless specified to the contrary, the
following financial data and related comments refer to the reported
results of the business lines. Changes express differences between
Q1-24 and Q1-23.
5.1 Retail
Banking & Insurance
€m(1) |
|
Q1-24 |
% Change |
Net banking income |
|
3,763 |
(4)% |
Operating expenses |
|
(2,547) |
2% |
Gross operating income |
|
1,217 |
(13)% |
Cost of risk |
|
(296) |
(4)% |
Income before tax |
|
934 |
(16)% |
Exceptional items |
|
(25) |
(19)% |
Underlying income before tax |
|
959 |
(17)% |
Underlying cost/income ratio |
|
67.0% |
3.8pp |
Loan outstandings grew by 2%
year-on-year, reaching 717 billion euros at the end of March 2024,
including a 1% increase in residential mortgages to 400 billion
euros, a 3% increase in equipment loans to 194 billion euros, and a
6% increase in consumer loans to 40 billion euros.
At the end of March 2024, on-balance
sheet customer deposits & savings stood at 675 billion
euros, up 13 billion euros year-on-year, with term accounts up 39%
and regulated and unregulated passbook savings accounts up 1%.
Net banking income for the
Retail Banking & Insurance business unit fell by 4% to 3,763
million euros in Q1-24, benefiting from the positive effects of
asset repricing. This change includes 5% declines in net revenues
for the Banque Populaire and Caisse
d'Épargne retail banking networks in Q1-24.
The Financial Solutions &
Expertise business lines continued to enjoy very good
sales momentum, with revenues up 4% in Q1-24. In the
Insurance business revenues rose by 5% in Q1-24,
driven by strong sales momentum in life insurance. The
Digital & Payments business unit reported a 5%
growth in revenues in Q1-24.
Operating expenses remained
tightly managed, rising by just 2% in Q1-24 to 2,457 million
euros.
The underlying cost/income
ratio3 rose by 3.8pps in Q1-24, to
67.0%.
The business unit's gross operating
income fell by 13% in Q1-24 to 1,217 million euros.
The cost of risk declined by 4%
in Q1-24, to 296 million euros.
For the business unit as a whole, income
before tax came to 934 million euros in Q1-24, down
16%.
The underlying income before
tax2 stood at 959 million euros in Q1-24,
down 17%.
1 Reported figures until “Income before tax”2
“Underlying” means exclusive of exceptional items3 The business
line cost/income ratios are calculated on the basis of net banking
income and underlying operating expenses
5.1.1
Banque
Populaire retail banking networkThe 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.
€m(2) |
|
Q1-24 |
% Change |
Net banking income |
|
1,489 |
(5)% |
Operating expenses |
|
(1,043) |
2% |
Gross operating income |
|
445 |
(19)% |
Cost of risk |
|
(125) |
(5)% |
Income before tax |
|
329 |
(24)% |
Exceptional items |
|
(12) |
(7)% |
Underlying income before tax |
|
341 |
(24)% |
Underlying cost/income ratio |
|
69.3% |
5.2pp |
Loan outstandings remained
stable year-on-year at 300 billion euros at the end of March
2024.On-balance sheet customer deposits &
savings increased by 7 billion euros year-on-year at the
end of March 2024 with growth in term accounts (+46% year-on-year)
and stability in regulated and unregulated passbook savings
accounts.
Net banking income came to
1,489 million euros, down 5% on Q1-24. This total includes:
- An 11% year-on-year drop in net
interest income4,5, to €730 million euros.
- And a 2% year-on-year decline in
commissions5 to 717 million euros.
Operating expenses, which
remained under tight control, rose by 2% in Q1-24 to 1,043 million
euros.
This led to a 5.2pp year-on-year rise in the
underlying cost/income ratio3,
which stood at 69.3% in Q1-24.
Gross operating income fell by
19% year-on-year to 445 million euros in Q1-24.
The cost of risk stood at 125
million euros in Q1-24 (-5% vs. Q1-23).
Income before tax stood at 329
million euros in Q1-24 (-24% vs. Q1-23).
Underlying income before
tax2 stood at 341 million euros in Q1-24
(-24% vs. Q1-23).
1 Reported figures until “Income before tax”2
“Underlying” means exclusive of exceptional items3 The business
line cost/income ratios have been calculated on the basis of net
banking income and underlying operating expenses4 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
5.1.2 Caisse
d’Epargne retail banking networkThe Caisse d’Epargne
retail banking network comprises 15 individual Caisses d’Epargne
along with their subsidiaries.
€m(3) |
|
Q1-24 |
% Change |
Net banking income |
|
1,454 |
(5)% |
Operating expenses |
|
(1,085) |
2% |
Gross operating income |
|
368 |
(22)% |
Cost of risk |
|
(100) |
(27)% |
Income before tax |
|
270 |
(19)% |
Exceptional items |
|
(12) |
10% |
Underlying income before tax |
|
282 |
(18)% |
Underlying cost/income ratio |
|
73.8% |
5.2pp |
Loan outstandings increased by
3% year-on-year to 372 billion euros at the end of March
2024.On-balance sheet customer deposits &
savings increased by 8 billion euros year-on-year, with
growth in term accounts (+29% year-on-year) and regulated and
unregulated passbook accounts (+1% year-on-year).
In Q1-24, net banking income
came to a total of 1,454 million euros, down 5% year-on-year. This
total includes:
- An 20% year-on-year drop in net
interest income4,5, to €568 million euros.
- And a 3% year-on-year increase in
commissions5 to 816 million euros.
Operating expenses, which
remained closely managed, were up 2% year-on-year in Q1-24, at
1,085 million euros.
The underlying cost/income
ratio3 rose by 5.2pps year-on-year to
73.8% in Q1-24.
Gross operating income fell by
22% year-on-year to 368 million euros in Q1-24.
The cost of risk came to 100
million euros in Q1-24, down 27% year-on-year.
Income before tax stood at 270
million euros in Q1-24 (-19% vs. Q1-23).
Underlying income before
tax2 stood at 282 million euros in Q1-24
(-18% vs. Q1-23).
1 Reported figures until “Income before tax”2
“Underlying” means exclusive of exceptional items3 The business
line cost/income ratios have been calculated on the basis of net
banking income and underlying operating expenses4 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
5.1.3 Financial
Solutions & Expertise
€m(1) |
|
Q1-24 |
% Change |
Net banking income |
|
327 |
4% |
Operating expenses |
|
(162) |
3% |
Gross operating income |
|
166 |
5% |
Cost of risk |
|
(24) |
x4 |
Income before tax |
|
141 |
(7)% |
Exceptional items |
|
0 |
ns |
Underlying income before tax |
|
141 |
(7)% |
Underlying cost/income ratio |
|
49.4% |
(0.2)pp |
In Consumer Credit, average
outstandings (personal loans and revolving credit) rose by 8%
year-on-year.Continued strong momentum in 2023 in the
Leasing segment, notably with the retail banking
networks, resulted in a sharp 11% year-on-year increase in
outstandings, driven by equipment leasing (+18%).In the
Factoring business, demand for financing remained
strong with the retail banking networks, with average factored
sales stable year-on-year.
In the Sureties & Financial
Guarantees business line, gross premiums written fell by
38% year-on-year, impacted by the severe impact of the extremely
sluggish residential real-estate market.
Net banking income for the
Financial Solutions & Expertise business unit rose by 4%
year-on-year to 327 million euros in Q1-24.
Operating expenses were kept
under control at 162 million euros, up 3% year-on-year in Q1-24, in
line with growth in revenues, leading to a positive jaws
effect.
The underlying cost/income
ratio3 fell by 0.2pps year-on-year in
Q1-24 to 49.4%.
Gross operating income rose by
5% year-on-year in Q1-24 to 166 million euros.
The cost of risk stood at 24
million euros in Q1-24.
Income before tax came to 141
million euros in Q1-24, down 7% year-on-year.
Underlying income before
tax2 stood at 141 million euros in Q1-24,
down 7% year-on-year.
1 Reported figures until “Income before tax”2
“Underlying” means exclusive of exceptional items3 The business
line cost/income ratios have been calculated on the basis of net
banking income and underlying operating expenses
5.1.4 Insurance1The
results presented below concern the Insurance business unit held
directly by BPCE since March 1, 2022.
€m(3) |
|
Q1-24 |
% Change |
Net banking income |
|
188 |
5% |
Operating expenses(4) |
|
(42) |
(3)% |
Gross operating income |
|
146 |
7% |
Income before tax |
|
149 |
7% |
Exceptional items |
|
0 |
ns |
Underlying income before tax |
|
149 |
6% |
Underlying cost/income ratio |
|
22.3% |
(0.7)pp |
In Q1-24,
premiums6 rose by 39% year-on-year to 5.5
billion euros, with 43% growth in Life & Personal Protection
products and 7% in Property & Casualty insurance.
Life insurance assets under
management6 had grown to 96.6 billion
euros at the end of March 2024, rising 5% since the end of December
2023. Gross fund inflows6
amounted to 4.6 billion euros in Q1-24. Unit-linked funds accounted
for 35% of assets under management6 at end-March 2024, up 6pps vs.
end-December 2023, and 57% of gross inflows6 in Q1-24, up 15pps vs.
end-December 2023.
In Property & Casualty Insurance, the
customer equipment rate for the two retail banking networks reached
34.4%7 at end-March 2024, up 0.3pps since end-December 2023.
Net banking income rose by 5%
year-on-year in Q1-24 to 188 million euros.
Operating expenses fell by 3%
year-on-year in Q1-24, to 42 million euros.
Gross operating income,
benefitting from a positive jaws effect, rose by 7% to reach 146
million euros in Q1-24.
Income before tax stood at 149
million euros in Q1-24, up 7% year-on-year.
Underlying income before
tax4 stood at 149 million euros in Q1-24,
up 6% year-on-year.
1 BPCE Insurances 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 contracts4 “Underlying”
means exclusive of exceptional items5 The business line cost/income
ratios have been calculated on the basis of net banking income and
underlying operating expenses6 Excluding the reinsurance treaty
with CNP Assurances7 Scope: combined individual customers of the BP
and CE networks
5.1.5
Digital & Payments
€m(1) |
|
Q1-24 |
% Change |
Net banking income |
|
215 |
5% |
o/w Payments |
|
120 |
4% |
o/w Oney |
|
94 |
6% |
Operating expenses |
|
(160) |
(1)% |
o/w Payments |
|
(95) |
1% |
o/w Oney |
|
(65) |
(4)% |
Gross operating income |
|
55 |
24% |
Cost of risk |
|
(31) |
(2)% |
Income before tax |
|
24 |
x3 |
Exceptional items |
|
(1) |
ns |
Underlying income before tax |
|
25 |
x2 |
Underlying cost/income ratio |
|
74.2% |
(2.3)pp |
Payments
Net banking income was up 5%, and operating
expenses remained very tightly managed.
In the Payment Solutions segment, the number of
card transactions rose by 5% vs. Q1-23. Mobile and instant payments
continued their ongoing growth (+57% vs. Q1-23). The rollout of
Android POS terminals (x2.6) is gathering pace, and the "Tap 2 pay"
solution for iPhones enjoyed strong momentum in Q1-24.
Payplug recorded strong growth in business
volumes, chiefly driven by SME customers (+27% vs. Q1-23).
Oney Bank
Net banking income rose 6% vs. Q1-23 thanks to
improved margin rates and the impact of asset repricing.
Operating expenses remained under tight control,
down 4% on Q1-23. This led to a significant 5.1pp improvement in
the underlying cost/income ratio vs. Q1-23.
Business remained robust despite the tense
economic environment, with Oney maintaining its leadership in the
“Buy Now Pay Later” (BNPL) segment in France.
Digital & AI
At the end of March 2024, 11.5 million customers
were active on mobile apps (+8% compared with end-March 2023).
For business customers, 4 million sales
opportunities were generated for retail banking by AI in Q1-24, as
many as during the entire year in 2023.With AI for Efficiency, 1.5
million supporting documents were reviewed automatically (+40% vs.
Q1-23).As far as our employees are concerned, 10,000 are active
users of the internal AI generation tool with over 700,000 messages
generated this quarter.
Net banking income for the Digital &
Payments business unit rose by 5% in Q1-24 to 215 million
euros.
The business unit's tightly managed
operating expenses came to 160 million euros in
Q1-24, down 1% year-on-year.
This led to a 2.3pp improvement in the
underlying cost/income ratio2
which stood at 74.2% in Q1-24.
Gross operating income rose by
24% year-on-year in Q1-24 to 55 million euros, thanks to a positive
jaws effect.
The cost of risk fell by 2%
year-on-year to 31 million euros in Q1-24.
Income before tax enjoyed
3-fold year-on-year growth to 24 million euros in Q1-24.
Underlying income before
tax3 increased year-on-year by a factor
of 2 to reach 25 million euros in Q1-24.
1 Reported figures until “Income before tax”2
The business line cost/income ratios have been calculated on the
basis of net banking income and underlying operating expenses3
“Underlying” means exclusive of exceptional items
5.2. Global Financial
ServicesThe GFS business unit includes the Asset &
Wealth Management activities and the Corporate & Investment
Banking activities of Natixis.
€m(1) |
|
Q1-24 |
% Change |
Constant Fx % change |
Net banking income |
|
1,933 |
4% |
5% |
o/w AWM |
|
830 |
6% |
7% |
o/w CIB |
|
1,102 |
3% |
3% |
Operating expenses |
|
(1,368) |
5% |
5% |
o/w AWM |
|
(662) |
3% |
3% |
o/w CIB |
|
(706) |
7% |
7% |
Gross operating income |
|
564 |
3% |
4% |
Cost of risk |
|
(58) |
ns |
|
Income before tax |
|
510 |
(18)% |
|
Exceptional items |
|
0 |
ns |
|
Underlying income before tax |
|
510 |
(19)% |
|
Underlying cost/income ratio |
|
70.8% |
0.9pp |
|
GFS revenues rose by 4%
year-on-year in Q1-24 to 1,933 million euros (+5% at constant
exchange rates).
Corporate & Investment Banking
revenues rose by 3% in Q1-24 to 1,102 million euros,
thanks to good diversification and the strong performance of the
Global Finance business lines (+11% year-on-year) and the
Investment Banking and M&A activities (+14%
year-on-year).Revenues generated by the Asset & Wealth
Management business were up 7% year-on-year, at constant
exchange rates, in Q1-24, rising to 830 million euros, thanks to a
higher assets under management base year-on-year.
Operating expenses rose by 5%
year-on-year in Q1-24 to 1,368 million euros (+5% at constant
exchange rates).In Q1-24, Corporate & Investment Banking's
operating expenses rose by 7%, including investments in personnel
and certain tax payments. In Q1-24, Asset & Wealth
Management operating expenses rose by 3%, in line with
growth in revenues.
The underlying cost/income
ratio2 increased by 0.9pps year-on-year
to 70.8% in Q1-24.
Gross operating income rose by
3% year-on-year in Q1-24 to 564 million euros (+4% at constant
exchange rates).
The cost of risk stood at 58
million euros in Q1-24.
Income before tax fell by 18%
year-on-year to 510 million euros in Q1-24.
Underlying income before
tax3 stood at 510 million euros in Q1-24,
down 19% year-on-year.
1 Reported figures until “Income before tax”2
The business line cost/income ratios have been calculated on the
basis of net banking income and underlying operating expenses3
”Underlying” means exclusive of exceptional items
5.2.1 Corporate
& Investment BankingThe Corporate & Investment
Banking (CIB) business unit includes the Global Markets, Global
Finance, Investment Banking and M&A activities of Natixis.
€m(1) |
|
Q1-24 |
% Change |
Net banking income |
|
1,102 |
3% |
Operating expenses |
|
(706) |
7% |
Gross operating income |
|
396 |
(4)% |
Cost of risk |
|
(54) |
ns |
Income before tax |
|
346 |
(21)% |
Exceptional items |
|
0 |
ns |
Underlying income before tax |
|
346 |
(21)% |
Underlying cost/income ratio |
|
64.0% |
2.4pp |
Global Markets revenues were
stable year-on-year at 537 million euros. Revenues generated by the
Equity business stood at 145 million euros in Q1-24, despite a
resilient customer business activities. FIC-T revenues remained
stable overall, at 379 million euros in Q1-24, with a strong
performance from the FI business, which saw revenues grow by 6%
thanks, in particular, to the Credit and Fixed Income
activities.
Global Finance revenues rose by
11% year-on-year to 406 million euros, thanks to the sustained
dynamism of the Real Assets and Global Trade businesses.
Investment Banking activities
posted revenues of 77 million euros, up 24% year-on-year in Q1-24,
driven by growth achieved in three businesses: Acquisition &
Strategic, Debt Capital Market, and Strategic Equity Capital
Markets.
The M&A business continued
to perform well, with revenues up 3% in Q1-24 to 54 million
euros.
Net banking income posted by
the Corporate & Investment Banking business unit was up 3%
year-on-year in Q1-24, at 1,102 million euros.
Operating expenses, which
include investments in personnel and certain tax payments, were up
7% year-on-year in Q1-24, at 706 million euros.
The underlying cost/income
ratio3 rose by 2.4pps year-on-year to
64.0% in Q1-24.
Gross operating income fell by
4% year-on-year in Q1-24 to 396 million euros.
The cost of risk stood at 54
million euros in Q1-24, impacted by provisions for certain specific
cases, reflecting the deterioration observed in certain
sectors.
Income before tax fell by 21%
year-on-year to 346 million euros in Q1-24.
Underlying income before
tax2 was down 21% year-on-year at 346
million euros in Q1-24.
1 Reported figures until “Income before tax”2
“Underlying” means exclusive of exceptional items3 The business
line cost/income ratios have been calculated on the basis of net
banking income and underlying operating expenses
5.2.2 Asset
& Wealth ManagementThe business unit includes the
Asset & Wealth Management activities of Natixis.
€m(3) |
|
Q1-24 |
% Change |
Net banking income |
|
830 |
6% |
Operating expenses |
|
(662) |
3% |
Gross operating income |
|
168 |
23% |
Income before tax |
|
163 |
(11)% |
Exceptional items |
|
0 |
ns |
Underlying income before tax |
|
163 |
(15)% |
Underlying cost/income ratio |
|
79.8% |
(1.5)pp |
In Asset Management, assets under
management4 stood at 1,225 billion euros
at the end of March 2024, up 5% thanks to positive market and
currency impacts.
Net inflows into Asset
Management4 in Q1-24 reached a total of 6.0 billion euros, chiefly
thanks to Fixed-income products with 8 billion euros of net
inflows.
At the end of March 2024, Asset Management
achieved robust performances in its investment
funds. At end-March 2024, 83% of rated funds were ranked
in the 1st and 2nd quartiles over a 5-year horizon compared with
74% at end-March 2023 (source: Morningstar).
In Asset Management4, the total fee
rate (excluding performance fees) in Q1-24 stood at
25.0bps (-0.1bp year-on-year), or 36.6bps if insurance-driven asset
management is excluded (-1.5bps year-on-year).
Net banking income posted by
the Asset & Wealth Management business unit rose by 6%
year-on-year in Q1-24, to 830 million euros.
Operating expenses stood at 662
million euros, up 3% year-on-year in Q1-24, in line with revenue
growth. The underlying cost/income
ratio3 improved by 1.5pps year-on-year in
Q1-24, to 79.8%.
Gross operating income came to
168 million euros in Q1-24, up 23% year-on-year.
Income before tax stood at 163
million euros in Q1-24 (-11% vs. Q1-23).
Underlying income before
tax2 was down 15% year-on-year, at 163
million euros in Q1-24.
1 Reported figures until “Income before tax”2
“Underlying” means exclusive of exceptional items3 The business
line cost/income ratios have been calculated on the basis of net
banking income and underlying operating expenses4 Asset Management:
Europe includes Dynamic Solutions and Vega IM; North America
includes WCM IM; excluding Wealth Management
Paris, February 7, 2024
ANNEXES
Notes on methodology
Presentation of the pro-forma quarterly
results
The 2023 quarterly series are presented pro
forma with changes in standards and organization:
- 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;
- 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.
Data for 2023 has been recalculated to obtain a
like-for-like basis of comparison.
The tables showing the transition from reported
2023 to pro-forma 2023 are presented on annexes
Exceptional itemsExceptional items
and the reconciliation of the reported income statement to the
underlying income statement of Groupe BPCE are detailed in the
annexes.
Net banking incomeCustomer 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 expensesOperating
expenses correspond to the aggregate total of the “Operating
Expenses” (as presented in the Group’s 2022 universal 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 ratioGroupe BPCE's
cost/income ratio is calculated on the basis of net banking income
and operating expenses excluding exceptional items, the latter
being restated to account for the contribution to the Single
Resolution Fund (SRF) booked in the Corporate center division. 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 riskThe 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 &
savingsRestatements 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 adequacyCommon
Equity Tier 1 is determined in accordance with the
applicable CRR II/CRD V 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
capacityThe 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.
LiquidityTotal 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.
Digital indicatorsThe
number of active customers using mobile apps or websites
corresponds to the number of customers who have made at least one
visit via one of the digital channels (mobile apps or website) over
the last 12 months.The number of commercial opportunities
generated is the total of customers’ key life moments and
events detected via data with a view to being handled for
commercial purposes. For individual customers: entry into working
life, birth of a child, pre-retirement preparation, retirement,
etc.; for professional and corporate customers: international
development, new capital spending, etc.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).Reconciliation of 2023 data to pro forma
data
Retail banking and Insurance |
Q1-23 |
Q2-23 |
In millions of euros |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Reported figures |
3,891 |
(2,496) |
1,107 |
(269) |
840 |
3,655 |
(2,459) |
952 |
(224) |
729 |
Sectoral reallocation |
12 |
(1) |
11 |
0 |
11 |
(15) |
(1) |
(15) |
(0) |
(15) |
Pro forma figures |
3,903 |
(2,497) |
1,118 |
(269) |
851 |
3,640 |
(2,460) |
936 |
(224) |
713 |
|
|
|
|
|
|
|
|
|
|
|
Global financial services |
Q1-23 |
Q2-23 |
In millions of euros |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Reported figures |
1,822 |
(1,303) |
590 |
(146) |
432 |
1,798 |
(1,282) |
429 |
(115) |
300 |
Sectoral reallocation |
0 |
0 |
0 |
0 |
0 |
(0) |
(0) |
(0) |
(0) |
(0) |
New rules |
32 |
(2) |
30 |
(4) |
26 |
31 |
(5) |
26 |
(3) |
22 |
Pro forma figures |
1,854 |
(1,305) |
621 |
(151) |
458 |
1,829 |
(1,287) |
455 |
(118) |
322 |
|
|
|
|
|
|
|
|
|
|
|
Corporate center |
Q1-23 |
Q2-23 |
In millions of euros |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Reported figures |
102 |
(788) |
(729) |
(10) |
(739) |
13 |
(58) |
(44) |
(14) |
(56) |
Sectoral reallocation |
(12) |
1 |
(11) |
0 |
(11) |
15 |
1 |
16 |
0 |
16 |
New rules |
(32) |
2 |
(30) |
4 |
(26) |
(31) |
5 |
(26) |
3 |
(22) |
Pro forma figures |
57 |
(785) |
(771) |
(5) |
(776) |
(3) |
(52) |
(54) |
(10) |
(63) |
Retail banking and Insurance |
Q3-23 |
Q4-23 |
In millions of euros |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Reported figures |
3,721 |
(2,358) |
1,072 |
(268) |
799 |
3,557 |
(2,497) |
395 |
(122) |
294 |
Sectoral reallocation |
(13) |
(1) |
(14) |
0 |
(14) |
19 |
(1) |
18 |
(0) |
18 |
Pro forma figures |
3,709 |
(2,359) |
1,058 |
(268) |
785 |
3,576 |
(2,499) |
413 |
(122) |
312 |
|
|
|
|
|
|
|
|
|
|
|
Global financial services |
Q3-23 |
Q4-23 |
In millions of euros |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Reported figures |
1,736 |
(1,279) |
444 |
(114) |
319 |
1,874 |
(1,389) |
391 |
(118) |
255 |
Sectoral reallocation |
(0) |
(0) |
(0) |
0 |
(0) |
0 |
(1) |
(0) |
(0) |
(0) |
New rules |
31 |
(4) |
27 |
(4) |
23 |
33 |
(4) |
29 |
(3) |
26 |
Pro forma figures |
1,767 |
(1,283) |
470 |
(118) |
341 |
1,908 |
(1,394) |
420 |
(121) |
280 |
|
|
|
|
|
|
|
|
|
|
|
Corporate center |
Q3-23 |
Q4-23 |
In millions of euros |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Net banking income |
Operating expenses |
Income before tax |
Incometax |
Net income |
Reported figures |
(3) |
(175) |
(176) |
(23) |
(200) |
31 |
(243) |
(249) |
81 |
(168) |
Sectoral reallocation |
13 |
1 |
14 |
0 |
14 |
(20) |
2 |
(18) |
0 |
(18) |
New rules |
(31) |
4 |
(27) |
4 |
(23) |
(33) |
4 |
(29) |
3 |
(26) |
Pro forma figures |
(21) |
(170) |
(189) |
(19) |
(210) |
(22) |
(237) |
(296) |
84 |
(211) |
Q1-24 & Q1-23 results:
reconciliation 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 incomeGroup share |
Reported Q1-24 results |
|
5,753 |
(4,151) |
(382) |
0 |
1,233 |
875 |
Transformation andreorganization costs |
Business lines/Corporate center |
1 |
(38) |
|
|
(37) |
(28) |
Disposals |
Corporate center |
|
|
|
(1) |
(1) |
(1) |
Q1-24 results excluding exceptional items |
|
5,752 |
(4,113) |
382 |
1 |
1,272 |
904 |
€m |
|
Net banking income |
Operating expenses |
Cost of risk |
Gains or losses on other
assets |
Income before tax |
Net incomeGroup share |
Pro forma reported Q1-23 results |
|
5,815 |
(4,587) |
(326) |
49 |
968 |
533 |
Transformation andreorganization costs |
Business lines/Corporate center |
4 |
(56) |
2 |
|
(49) |
(36) |
Disposals |
Corporate center |
|
0 |
|
(1) |
(1) |
0 |
Pro forma Q1-23 results excluding exceptional
items |
|
5,810 |
(4,531) |
(329) |
49 |
1,018 |
570 |
Groupe BPCE: underlying cost to income
ratio excluding SRF
€m |
Net banking income |
Operating expenses |
Underlying cost income ratio excluding
SRF |
Q1-24 reported figures |
5,753 |
(4,151) |
|
Impact of exceptional items |
1 |
(38) |
|
Q1-24 underlying figures excluding SRF |
5 752 |
(4 113) |
71,5% |
€m |
Net banking income |
Operating expenses |
Underlying cost income ratio excluding
SRF |
Q1-23 Pro forma reported figures |
5,815 |
(4,587) |
|
Impact of exceptional items |
4 |
(56) |
|
SRF contribution |
|
(585) |
|
Q1-23 Pro forma underlying figures excluding
SRF |
5,810 |
(3,946) |
67.9% |
Groupe BPCE: quarterly income statement
per business line
|
RETAIL BANKING &
INSURANCE |
GLOBAL FINANCIAL SERVICES |
CORPORATE CENTER |
GROUPE BPCE |
€m |
Q1-24 |
Q1-23 |
Q1-24 |
Q1-23 |
Q1-24 |
Q1-23 |
Q1-24 |
Q1-23 |
% |
Net banking income |
3,763 |
3,903 |
1,933 |
1,854 |
57 |
57 |
5,753 |
5,815 |
(1)% |
Operating expenses |
(2,547) |
(2,497) |
(1,368) |
(1,305) |
(236) |
(785) |
(4,151) |
(4,587) |
(10)% |
Gross operating income |
1,217 |
1,406 |
564 |
549 |
(179) |
(728) |
1,602 |
1,228 |
31% |
Cost of risk |
(296) |
(308) |
(58) |
27 |
(28) |
(46) |
(382) |
(326) |
17% |
Income before tax |
934 |
1,118 |
510 |
621 |
(210) |
(771) |
1,233 |
968 |
27% |
Income tax |
(223) |
(269) |
(133) |
(151) |
12 |
(5) |
(343) |
(425) |
(19)% |
Non-controlling interests |
(2) |
2 |
(13) |
(12) |
0 |
0 |
(15) |
(10) |
43% |
Net income – Group share |
709 |
851 |
364 |
458 |
(198) |
(776) |
875 |
533 |
64% |
Groupe BPCE: quarterly
series
GROUPE BPCE |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
5,815 |
5,467 |
5,455 |
5,462 |
5,753 |
Operating expenses |
(4,587) |
(3,799) |
(3,812) |
(4,129) |
(4,151) |
Gross operating income |
1,228 |
1,667 |
1,642 |
1,332 |
1,602 |
Cost of risk |
(326) |
(342) |
(319) |
(744) |
(382) |
Income before tax |
968 |
1,337 |
1,339 |
537 |
1,233 |
Net income – Group share |
533 |
973 |
917 |
381 |
875 |
Consolidated balance sheet
ASSETS €m |
March 31, 2024 |
Dec. 31, 2023 |
Cash and amounts due from central banks |
135,637 |
152,669 |
Financial assets at fair value through profit or loss |
221,280 |
214,782 |
Hedging derivatives |
8,830 |
8,855 |
Financial assets at fair value through shareholders' equity |
52,494 |
48,073 |
Financial assets at amortized cost |
26,111 |
26,373 |
Loans and receivables due from credit institutions and similar at
amortized cost |
112,487 |
108,631 |
Loans and receivables due from customers at amortized cost |
838,812 |
839,457 |
Revaluation difference on interest rate risk-hedged portfolios |
(3,189) |
(2,626) |
Financial investments of insurance activities |
107,472 |
103,615 |
Insurance contracts written - Assets |
1,151 |
1,124 |
Reinsurance contracts ceded - Assets |
9,442 |
9,564 |
Current tax assets |
932 |
829 |
Deferred tax assets |
4,516 |
4,575 |
Accrued income and other assets |
15,392 |
14,528 |
Investments in associates |
1,624 |
1,616 |
Investment property |
721 |
717 |
Property, plant and equipment |
6,043 |
6,023 |
Intangible assets |
1,138 |
1,110 |
Goodwill |
4,258 |
4,224 |
TOTAL ASSETS |
1,545,151 |
1,544,139 |
LIABILITIES €m |
March 31, 2024 |
Dec. 31, 2023 |
Amounts due to central banks |
4 |
2 |
Financial liabilities at fair value through profit or loss |
207,175 |
204,064 |
Hedging derivatives |
14,532 |
14,973 |
Debt securities |
299,225 |
292,598 |
Amounts due to credit institutions |
66,830 |
79,634 |
Amounts due to customers |
707,196 |
711,658 |
Revaluation difference on interest rate risk-hedged portfolios |
126 |
159 |
Insurance contracts written - Liabilities |
110,001 |
106,137 |
Reinsurance contracts ceded - Liabilities |
167 |
149 |
Current tax liabilities |
2,100 |
2,026 |
Deferred tax liabilities |
1,742 |
1,660 |
Accrued expenses and other liabilities |
24,824 |
22,492 |
Provisions |
4,708 |
4,825 |
Subordinated debt |
20,314 |
18,801 |
Shareholders' equity |
86,207 |
84,961 |
Equity attributable to equity holders of the parent |
85,658 |
84,407 |
Non-controlling interests |
549 |
553 |
TOTAL LIABILITIES |
1,545,151 |
1,544,139 |
Statement of changes in shareholders'
equity
€m |
Equity attributable to shareholders’ equity |
December 31, 2023 |
84,407 |
Distributions |
0 |
Change in capital (cooperative shares) |
303 |
Impact of acquisitions and disposals on non-controlling interests
(minority interests) |
8 |
Income |
875 |
Changes in gains & losses directly recognized in equity |
3 |
Others |
60 |
March 31, 2024 |
85,658 |
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 |
Q1-24 |
Q1-23 |
% |
Q1-24 |
Q1-23 |
% |
Q1-24 |
Q1-23 |
% |
Q1-24 |
Q1-23 |
% |
Q1-24 |
Q1-23 |
% |
Q1-24 |
Q1-23 |
% |
Q1-24 |
Q1-23 |
% |
|
Net banking income |
1,489 |
1,569 |
(5)% |
1,454 |
1,537 |
(5)% |
327 |
315 |
4% |
188 |
180 |
5% |
215 |
205 |
5% |
91 |
97 |
(6)% |
3,763 |
3,903 |
(4)% |
|
Operating expenses |
(1,043) |
(1,018) |
2% |
(1,085) |
(1,066) |
2% |
(162) |
(157) |
3% |
(42) |
(43) |
(3)% |
(160) |
(161) |
(1)% |
(55) |
(51) |
8% |
(2,547) |
(2,497) |
2% |
|
Gross operating income |
445 |
551 |
(19)% |
368 |
470 |
(22)% |
166 |
158 |
5% |
146 |
137 |
7% |
55 |
44 |
25% |
37 |
46 |
(21)% |
1,217 |
1,406 |
(13)% |
|
Cost of risk |
(125) |
(132) |
(5)% |
(100) |
(136) |
(27)% |
(24) |
(6) |
X4 |
0 |
0 |
0 |
(31) |
(32) |
(2)% |
(16) |
(2) |
0 |
(296) |
(308) |
(4)% |
|
Income before tax |
329 |
434 |
(24)% |
270 |
334 |
(19)% |
141 |
151 |
(7)% |
149 |
139 |
7% |
24 |
8 |
X3 |
20 |
52 |
(61)% |
934 |
1,118 |
(16)% |
|
Income tax |
(74) |
(98) |
(25)% |
(62) |
(80) |
(23)% |
(38) |
(40) |
(5)% |
(36) |
(30) |
22% |
(9) |
(8) |
17% |
(5) |
(13) |
(63)% |
(223) |
(269) |
(17)% |
|
Non-controlling interests |
(3) |
(4) |
(14)% |
(1) |
(1) |
12% |
0 |
0 |
(9)% |
0 |
0 |
Ns |
2 |
7 |
(65)% |
0 |
0 |
0 |
(2) |
2 |
Ns |
|
Net income - Group share |
252 |
332 |
(24%) |
208 |
253 |
(18)% |
104 |
112 |
(7)% |
113 |
109 |
3% |
17 |
7 |
X2.4 |
16 |
39 |
(60)% |
709 |
851 |
(17)% |
|
Retail Banking & Insurance:
quarterly series
RETAIL BANKING & INSURANCE |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
3,903 |
3,640 |
3,709 |
3,576 |
3,763 |
Operating expenses |
(2,497) |
(2,460) |
(2,359) |
(2,499) |
(2,547) |
Gross operating income |
1,406 |
1,180 |
1,350 |
1,077 |
1,217 |
Cost of risk |
(308) |
(252) |
(302) |
(643) |
(296) |
Income before tax |
1,118 |
936 |
1,058 |
413 |
934 |
Net income – Group share |
851 |
713 |
785 |
312 |
709 |
Retail Banking & Insurance: Banque
Populaire and Caisse d’Epargne networks quarterly
series
BANQUE POPULAIRE NETWORK |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
1,569 |
1,442 |
1,469 |
1,382 |
1,489 |
Operating expenses |
(1,018) |
(1,015) |
(961) |
(975) |
(1,043) |
Gross operating income |
551 |
427 |
508 |
407 |
445 |
Cost of risk |
(132) |
(110) |
(127) |
(282) |
(125) |
Income before tax |
434 |
328 |
398 |
149 |
329 |
Net income – Group share |
332 |
240 |
284 |
98 |
252 |
|
|
|
|
|
|
CAISSE D’EPARGNE NETWORK |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
1,537 |
1,465 |
1,432 |
1,423 |
1,454 |
Operating expenses |
(1,066) |
(1,041) |
(993) |
(1,081) |
(1,085) |
Gross operating income |
470 |
424 |
440 |
343 |
368 |
Cost of risk |
(136) |
(84) |
(115) |
(218) |
(100) |
Income before tax |
334 |
340 |
325 |
126 |
270 |
Net income – Group share |
253 |
256 |
253 |
103 |
208 |
Retail Banking & Insurance: FSE
quarterly series
FINANCIAL SOLUTIONS & EXPERTISE |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
315 |
306 |
318 |
335 |
327 |
Operating expenses |
(157) |
(151) |
(154) |
(167) |
(162) |
Gross operating income |
158 |
155 |
164 |
168 |
166 |
Cost of risk |
(6) |
(19) |
(18) |
(54) |
(24) |
Income before tax |
151 |
136 |
146 |
112 |
141 |
Net income – Group share |
112 |
102 |
107 |
85 |
104 |
Retail Banking & Insurance:
Insurance quarterly series
INSURANCE |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
180 |
126 |
181 |
146 |
188 |
Operating expenses |
(43) |
(37) |
(42) |
(41) |
(42) |
Gross operating income |
137 |
89 |
139 |
105 |
146 |
Income before tax |
139 |
93 |
137 |
107 |
149 |
Net income – Group share |
109 |
83 |
103 |
81 |
113 |
Retail Banking & Insurance: Digital
& Payments quarterly series
DIGITAL & PAYMENTS |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
205 |
203 |
209 |
199 |
215 |
Operating expenses |
(161) |
(163) |
(157) |
(171) |
(160) |
Gross operating income |
44 |
40 |
52 |
27 |
55 |
Cost of risk |
(32) |
(41) |
(29) |
(69) |
(31) |
Income before tax |
8 |
(6) |
19 |
(89) |
24 |
Net income – Group share |
7 |
(3) |
13 |
(61) |
17 |
Retail Banking & Insurance: Other
network quarterly series
OTHER NETWORK |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
97 |
97 |
99 |
91 |
91 |
Operating expenses |
(51) |
(52) |
(52) |
(63) |
(55) |
Gross operating income |
46 |
45 |
47 |
28 |
37 |
Cost of risk |
(2) |
2 |
(14) |
(19) |
(16) |
Income before tax |
52 |
47 |
33 |
9 |
20 |
Net income – Group share |
39 |
36 |
25 |
7 |
16 |
Global Financial Services: quarterly
income statement per business line
|
ASSET AND WEALTH MANAGEMENT |
CORPORATE &
INVESTMENTBANKING |
GLOBAL FINANCIALSERVICES |
€m |
Q1-24 |
Q1-23 |
Q1-24 |
Q1-23 |
Q1-24 |
Q1-23 |
% |
Net banking income |
830 |
781 |
1,102 |
1,074 |
1,933 |
1,854 |
4% |
Operating expenses |
(662) |
(644) |
(706) |
(661) |
(1,368) |
(1,305) |
5% |
Gross operating income |
168 |
137 |
396 |
412 |
564 |
549 |
3% |
Cost of risk |
(5) |
6 |
(54) |
21 |
(58) |
27 |
Ns |
Share in net income of associates |
0 |
0 |
4 |
3 |
4 |
3 |
13% |
Income before tax |
163 |
184 |
346 |
437 |
510 |
621 |
(18)% |
Net income – Group share |
109 |
137 |
255 |
321 |
364 |
458 |
(21)% |
Global Financial Services: quarterly
series
GLOBAL FINANCIAL SERVICES |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
1,854 |
1,829 |
1,767 |
1,908 |
1,933 |
Operating expenses |
(1,305) |
(1,287) |
(1,283) |
(1,394) |
(1,368) |
Gross operating income |
549 |
542 |
483 |
514 |
564 |
Cost of risk |
27 |
(91) |
(17) |
(73) |
(58) |
Income before tax |
621 |
455 |
470 |
420 |
510 |
Net income – Group share |
458 |
322 |
341 |
280 |
364 |
Asset & Wealth Management: quarterly
series
ASSET & WEALTH MANAGEMENT |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
781 |
773 |
764 |
874 |
830 |
Operating expenses |
(644) |
(636) |
(633) |
(691) |
(662) |
Gross operating income |
137 |
137 |
131 |
183 |
168 |
Cost of risk |
6 |
(1) |
11 |
(12) |
(5) |
Income before tax |
184 |
136 |
143 |
165 |
163 |
Net income – Group share |
137 |
89 |
94 |
105 |
109 |
Corporate & Investment Banking:
quarterly series
CORPORATE & INVESTMENT BANKING |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
1,074 |
1,056 |
1,002 |
1,034 |
1,102 |
Operating expenses |
(661) |
(651) |
(650) |
(703) |
(706) |
Gross operating income |
412 |
405 |
352 |
331 |
396 |
Cost of risk |
21 |
(90) |
(28) |
(62) |
(54) |
Income before tax |
437 |
318 |
328 |
255 |
346 |
Net income – Group share |
321 |
233 |
247 |
176 |
255 |
Corporate center: quarterly
series
CORPORATE CENTER |
€m |
Q1-23 |
Q2-23 |
Q3-23 |
Q4-23 |
Q1-24 |
Net banking income |
57 |
(3) |
(21) |
(22) |
57 |
Operating expenses |
(785) |
(52) |
(170) |
(237) |
(236) |
Gross operating income |
(728) |
(55) |
(191) |
(259) |
(179) |
Cost of risk |
(46) |
1 |
0 |
(28) |
(28) |
Share in income of associates |
2 |
0 |
1 |
(9) |
3 |
Gains or losses on other assets |
0 |
0 |
0 |
0 |
(6) |
Income before tax |
(771) |
(54) |
(189) |
(296) |
(210) |
Net income – Group share |
(776) |
(63) |
(210) |
(211) |
(198) |
DISCLAIMER
This document 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 bsiness 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 document 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 document or of its contents or any related
material, or of any document or information referred to in this
document.
The financial information presented in this
document relating to the fiscal period ended March 31, 2024, has
been drawn up in compliance with IFRS standards, as adopted in the
European Union. 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.The
transition from IFRS 4 to IFRS 17 may create differences due to
different recognition rates in revenues. With respect to the
financial information of Groupe BPCE for the year ended March 31,
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 financial results contained in this document have not
been reviewed by the statutory auditors. The quarterly financial
information of Groupe BPCE for the period ended March 31, 2024,
approved by the Management Board at a meeting convened on April 30,
2024, were verified and reviewed by the Supervisory Board at a
meeting convened on May 2, 2024.
About Groupe
BPCEGroupe BPCE is the second-largest banking group in
France. Through its 100,000 staff, the group serves 36 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 financial rating agencies: Moody's (A1,
stable outlook), Standard & Poor's (A, stable outlook), Fitch
(A+, stable outlook) and R&I (A+, stable outlook).
Groupe BPCE press contactChristophe Gilbert: +33 1
40 39 66 00Email: christophe.gilbert@bpce.fr |
Groupe BPCE investor and analyst relationsFrançois
Courtois: +33 1 58 40 46 69Email: bpce-ir@bpce.fr |
groupebpce.com
- PR_Results_Groupe_BPCE_Q1-24_FV2