BPCE - 2018 Registration document

ACTIVITIES AND FINANCIAL INFORMATION 2018 BPCE SA group financial data

BPCE SA group financial data 4.4

4.4.1

BPCE SA group results

BPCE SA group’s net income is calculated after restating the contribution of non-consolidated entities.

In 2018, the transition from Groupe BPCE’s net income to BPCE SA group’s net income can be broken down as follows:

2018

in millions of euros

Groupe BPCE net income

3,026 (2,361)

Entities not consolidated or consolidated under a different method (1)

Other items

20

BPCE SA group net income

685

Including the Banque Populaire banks, the Caisses d’Epargne and their consolidated subsidiaries. (1)

4

BPCE SA group recorded net income attributable to equity holders of

to 2017 mainly owing to strategic and group transformation projects

the parent of € 685 million in 2018, down by € 160 million compared launched during the year.

Corporate & Investment Banking

Retail Banking and Insurance

Asset & Wealth Management

Corporate center

BPCE SA group

2018

2018

2018

2018

2018

2017

2017

2017

2017

2017

in millions of euros

Net banking income Operating expenses

3,471 3,303 3,419 3,113 3,237 3,581 673 501 10,800 10,499

(2,713)

(2,284)

(2,264)

(2,178)

(2,193)

(2,194)

(1,626)

(1,485)

(8,795)

(8,141)

Gross operating income

758 1,019 1,154 936 1,045 1,387 (952) 78.2% 69.1% 66.2% 69.9% 67.7% 61.3% ns

(984)

2,005 2,358

Cost/income ratio

ns 81.4% 77.5%

Cost of risk

(198)

(292)

(1)

(0)

(175)

(115)

(11)

(104)

(385)

(511)

Share in income of equity-accounted associates Gains or losses on other assets Change in the value of goodwill

15

14

3

1

12

10 219 216 248 241

(40)

(15)

43

13

3

18

(1)

89

4 104

(16)

(66)

(16)

(66)

Income before tax

536 725 1,198 950 884 1,300 (762)

(849)

1,856 2,126

Income tax

(194) (162)

(231) (130)

(323) (415)

(329) (276)

(235) (194)

(380) (269)

362 329 (389)

(611) (670)

Non-controlling interests (minority interests) EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

(11)

6 (782)

180 364 460 345 455 651 (410)

(514)

685 845

Retail Banking and Insurance recorded a - € 184 million decline in net income attributable to equity holders of the parent relative to 2017, and included a - € 307 million impact related to group transformation projects, predominantly borne by Crédit Foncier. With income of € 460 million, the Asset & Wealth Management division posted a 33.6% year-on-year gain, driven by higher fees on assets under management (thanks to the increase in average assets under management) and the rise in the commission rate over the period, plus the increase in incentive fees charged by European asset management companies.

Corporate & Investment Banking earned income of € 455 million, down 30.1% year-on-year, adversely affected by challenging market conditions and decreased business, made worse by the impact of the equity derivatives portfolio in Asia. In addition to the contribution of the Group’s central institution, BPCE SA group, and Natixis, the Corporate center’s net income attributable to equity holders of the parent included a - € 184 million contribution to the Single Resolution Fund.

239

Registration document 2018