BPCE - 2018 Registration document

ACTIVITIES AND FINANCIAL INFORMATION 2018 Groupe BPCE financial data

2018: another banner year for lending activity The Caisse d’Epargne network was as committed as ever to its role in funding the economy and the regions, with robust growth in loan outstandings of +6.2% year-on-year to € 270.3 billion. Individual customer loan outstandings increased +6.9% year-on-year to € 157.2 billion, boosted by the appeal of home loans (+6.8%, i.e. + € 8.9 billion), which enjoyed another strong performance in outstandings in 2018 ( € 140.0 billion) thanks to the low interest rate environment. Loans to professional, corporate and institutional customers climbed +5.2% to € 113.1 billion, largely consisting of equipment loans (+6.1% to € 72.3 billion).

CAISSES D’EPARGNE The Caisses d’Epargne delivered a strong performance in 2018, issuing total new loans of € 53.4 billion to finance the French economy. Their strategy is based on providing additional banking products and services to individual customers and gaining new corporate and professional customers. The number of principal active customers increased by 0.9%, active professional customers by 1.4% and active corporate customers by 6.2% in 2018. Growth of 1.6% in on-balance sheet deposits & savings (excluding centralized savings) Despite the highly competitive savings market, the Caisses d’Epargne saw their on-balance sheet deposits and savings (excluding centralized savings) climb +1.6% year-on-year ( i.e. + € 3.5 billion) to € 227.0 billion. Growth in on-balance sheet deposits and savings was mainly led by demand deposits (+11.0%, i.e. + € 7.5 billion). Passbook savings account deposits picked up +1.3% to € 124.2 billion, with varying impacts depending on the market. The individual customer market posted net inflows of + € 6.5 billion (+6.3%) in 2018, versus net outflows of - € 4.9 billion for the professional, corporate and institutional customer markets (-24.2%). In the low interest rate environment of 2018, some products recorded higher AuM, including in particular the Livret Jeune and Livret B passbook savings accounts (+ € 1.1 billion, i.e. +5.6%). Home savings deposits, viewed as less attractive by investors, recorded a smaller gain (+ € 0.6 billion). Off-balance sheet deposits and savings rose +0.4% to € 134.6 billion, driven by more moderate growth in life insurance products in 2018 (+0.7%, + € 0.9 billion).

LOAN OUTSTANDINGS (IN BILLIONS OF EUROS) ➡

6.2%

270.3

4

254.6

32.5

32.4

72.3

68.2

165.5

154.0

Home loans Equipment loans Other

12/31/2017

12/31/2018

CUSTOMER DEPOSITS AND SAVINGS ➡ (IN BILLIONS OF EUROS)

Financial results The Caisse d’Epargne network generated net banking income of € 7.0 billion in 2018, down -1.9% compared to 2017. Net interest income (1) shed -6.5% due to the decline in the intermediation margin, adversely impacted by sustainably low interest rates. The increase in loan volumes was not high enough to fully offset the impact of the lower margin rate. Fees and commissions were up +1.9% compared to 2017, driven by robust growth in fees on payment instruments (+ € 20.5 million, +4.8%) stemming from the increase in banking products sold to the customer base and the programs designed to attract high-end customers. Sales of banking products to existing customers also boosted account management fees (+ € 25.5 million, +3.1%). Fees on off-balance sheet deposits and savings rose +4.8% (+ € 31.5 million), fueled by life insurance (+6.2%). Fees on loans fell - € 24 million (-3.2%), largely due to lower prepayment penalty fees (- € 79.3 million, -37.8%), partially offset by higher payment protection insurance fees (+ € 27.9 million, +7.5%).

1.4%

418.4

412.4

134.6

134.1

283.7

Off-balance sheet deposits & savings On-balance sheet deposits & savings (including centralized savings)

278.3

12/31/2017

12/31/2018

Fees and commissions on centralized savings have been restated for net interest income and included in fees and commissions income. (1)

231

Registration document 2018