BPCE - 2018 Registration document

ACTIVITIES AND FINANCIAL INFORMATION 2018 Groupe BPCE financial data

CHANGE IN LIFE INSURANCE ASSETS UNDER ➡ MANAGEMENT (IN BILLIONS OF EUROS)

ongoing strategic non-life insurance projects (#Innove2020, Purple#Care and #Pop’Timiz) and amortization of assurément#2016 and Impulse.

Gross operating income rose 15.8% to € 342 million.

+2.5

+3.2

-0.3

OTHER NETWORKS Crédit Foncier group

60.1

54.7

Momentum on the home loan market held strong in 2018, amid heightened competition on lending rates and pressure on ancillary products such as insurance. As a result, Crédit Foncier found itself in an exceptional position stemming from the plan for its activities to be consolidated in the Groupe BPCE entities. On the heels of a record performance in 2017, the Crédit Foncier teams mobilized their efforts to keep the momentum going across all business segments, resulting in total new loans of € 10.7 billion (o/w € 7.1 billion in the individual customer segment) versus € 9.6 billion in 2016 and € 11.8 billion in 2017. Crédit Foncier group posted a 2.7% year-on-year rise in net banking income, thanks to the improvement in net interest income, partially offset by a drop in fees and commissions largely owing to the downturn in prepayments. Operating expenses came out at € 757 million in 2018, up 67.7% compared to 2017, with 2018 including a provision for the restructuring of Crédit Foncier. Cost of risk amounted to € 61 million, down 25.0% compared to 2017, reflecting in particular the improvement in the level of risk associated with generations of loans added to the balance sheet since 2011. BPCE International and Banque Palatine BPCE International’s gross operating income shed -2.1% year-on-year due to slower business in the Pacific and International divisions. Cost of risk was down -26.9% in connection with the high 2017 comparison base. In 2018, gains or losses on other assets included restructuring impacts and the planned disposal of certain equity interests. Lastly, Banque Palatine contributed € 42 million to the division’s income before tax, down 45.3% (- € 35 million) relative to 2017. The 3.8% rise in NBI (+ € 12 million) was not high enough to offset the 22.4% increase in operating expenses (- € 45 million), predominantly attributable to IT migration costs (- € 35 million).

Assets under management at 12/31/2017

Assets under management at 12/31/2018

Net inflow in €

Unit-linked policy net inflow

Market effect and other

Premiums on provident and payment protection insurance ( € 886 million) continued to increase at a steady pace (+8%). Payment protection insurance maintained a growth rate of 6% without any material impact from the Bourquin amendment. The non-life insurance portfolio grew by 5% to 5.8 million policies. Earned premiums on the Banque Populaire and Caisse d’Epargne networks gained 7% to € 1,482 million. Automotive and multi-risk home insurance saw 9% and 7% growth, respectively. Net banking income for the Insurance business lines totaled € 790 million, up 8% compared with 2017, resulting from: 7% growth in life insurance NBI, propelled by growth in assets ● under management (+10%), driven in turn by the roll-out of the offer on the Caisse d’Epargne network. Despite the persistently low interest rate environment in 2018, lower bond yields were offset through the diversification of investment sources (private placements or the direct funding of the economy); 8% growth in provident insurance and payment protection ● insurance NBI, reflecting the resilience of the business; 6% growth in non-life insurance revenues: the claims rate was ● under control, despite the impact of extreme weather events and exceptionally high major automotive insurance claims. The combined ratio stood at 91.2%, an improvement on 2017. Operating expenses were up 2% to € 448 million. The increase in expenses, below NBI growth (8%), reflected the development of the business as well as the implementation of the New Dimension plan’s strategic ambitions: deployment of a new multi-site, multi-brand customer relationship model in personal insurance (Move#2018);

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Registration document 2018