BPCE - 2019 Universal Registration Document

4

ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

Groupe BPCE financial data 4.3

4.3.1

Groupe BPCE results

Groupe BPCE generated growth in reported revenue of 1.3% to €24.3 billion, and net income of €3 billion, which includes non-recurring items related to the Group’s transformation.

Groupe BPCE

Chg. 2019/2018 pf

in millions of euros Net banking income Operating expenses

2019

2018 pf 24,001 (17,687) 6,314 73.7% (1,299)

€m

%

24,305 (17,582) 6,722 72.3% (1,367)

304 105 408 (67) (18) (14) (67) 241 --

1.3%

(0.6%)

Gross operating income

6.5%

Cost/income ratio

(1.4) pt

Cost of risk

5.2%

Share in income of equity-accounted associates

265

284

(6.4%) (92.6%)

Gains or losses on other assets Change in the value of goodwill

1

15

(84)

(16)

ns

Income before tax

5,538

5,297

4.6%

Income tax

(1,801)

(1,477)

(324)

21.9% (1.0%) (2.4%)

Non-controlling interests (minority interests)

(707) 3,030

(714) 3,105

7

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

(75)

NET BANKING INCOME At December 31, 2019, Groupe BPCE’s net banking income was up 1.3% compared to 2018, underpinned by strong commercial momentum in retail banking, within the networks in particular, coupled with robust growth in the Insurance, Financial Solutions and Expertise and Payments business lines. It also reflected very strong momentum in the Corporate & Investment Banking division’s Asset Management, Global Finance and M&A business lines. Retail Banking and Insurance saw an increase in net banking income of 1.6% to €16.3 billion, underpinned by high growth in outstandings amid ongoing low interest rates. Outstanding loans increased by 8.2% year-on-year to €551 billion at the end of December 2019, comprising an increase in home loans of 8.7%, an increase in consumer loans of 16.5% and an increase in equipment loans of 6.6%. At the end of December 2019, deposits and savings excluding centralized regulated savings amounted to €458 billion (+8.3%) while demand deposits showed an increase of 12.9% year-on-year. Net banking income in the Asset & Wealth Management division increased by 7.0% in 2019, and by 4.1% at constant exchange rates, to €3.8 billion. This growth was driven by strong growth in performance fees of the European and US asset management companies while the rate of return on assets under management, at 29.6 pts, fell slightly at constant exchange rates in relation to December 31, 2018. Meanwhile, revenues from wealth management and employee savings grew by 3% and 6% respectively year-on-year.

Corporate & Investment Banking generated net banking income of €3.3 billion in 2019, a year-on-year increase of 2.2% and no change at constant exchange rates, having benefited from the diversification of the activities. Excluding non-recurring items and the impact on equity derivatives in Asia, net banking income was down 5.4% at constant exchange rates compared with 2018. OPERATING EXPENSES Operating expenses came to -€17.6 billion, down 0.8% (after restatement for the contribution to the Single Resolution Fund), reflecting an improvement in the operating performance and good cost control, which enabled a positive jaws effect. Operating expenses include the transformation costs associated with the Group’s key strategic operations aimed at simplifying its structure and generating synergies. These costs primarily related to mergers of entities and IT platform migrations. Operating expenses for the Retail Banking and Insurance arm, excluding transformation costs, increased slightly by 0.5%. This increase was predominantly attributable to the development of activities in the Asset & Wealth Management division. The Group headcount dipped 0.4% in relation to 2018, to 105,019 employees at December 31, 2019. Gross operating income amounted to €6.7 billion in 2019, an increase of 6.5% on 2018. Restated for non-recurring items, the cost/income ratio stood at 70.6% in 2019, an improvement of 0.5 of a point.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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