BPCE - 2019 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

Retail Banking and Insurance 4.3.4

Financial Solutions and Expertise

Other networks

Retail Banking and Insurance

Banques Populaires

Caisses d’Epargne

Insurance

Payments

Change

2018 pf

2018 pf

2018 pf

2018 pf

2018 pf

2018 pf

2018 pf

2019

2019

2019

2019

2019

2019

2019

€m %

in millions of euros

Net banking income 6,434 6,377 7,048 7,080 1,117 1,089

846

790

423

389

450

332 16,317 16,056 (250) (10,844) (10,803)

261 1.6%

Operating expenses (4,356) (4,355) (4,677) (4,791)

(634)

(618)

(478)

(448)

(370)

(341)

(329)

(41)

0.4%

Gross operating income Cost/income ratio

2,079 2,022 2,370 2,288

483

471

368

342

52

48

121

83 5,473 5,253

220 4.2%

67.7% 68.3% 66.4% 67.7% 56.7% 56.8% 56.5% 56.7% 87.6% 87.6% 73.1% 75.1% 66.5% 67.3% -- (0.8) pt

Cost of risk

(417)

(479)

(419)

(412)

(79)

(63)

0

0

(2)

(2)

(111)

(42) (1,028)

(999)

(29)

2.9%

Share in income of equity-accounted associates Gains or losses on other assets

34

29

0

0

0

0

10

15

0

0

1

1

45

44

1 2.8%

3

0

(3)

1

0

0

0

0

0

1

7

0

8

2

6

ns

Income before tax 1,699 1,571 1,949 1,878

404

407

378

356

50

47

18

41 4,499 4,300

199 4.6%

The Retail Banking and Insurance division’s income before tax rose by 4.6% compared to 2018 thanks to the increase in net banking income across almost all of the sub-divisions in an environment of persistently low interest rates. Operating expenses (excluding transformation costs) were up 0.4% compared to 2018 due to growth in the activity. The cost of risk rose by 2.9% year-on-year, averaging 18bp in 2019. The Banque Populaire and Caisse d’Epargne networks accounted for 81% of the Retail Banking and Insurance division’s income before tax in 2019. BANQUES POPULAIRES The Banque Populaire network maintained robust sales activity in 2019, drawing on the expansion and continued sales of products and services to its customer base. The Banques Populaires posted 2.2% growth in its individual customer base (o/w 2.9% growth in customers using banking products and services), 4.0% growth in its corporate customer base and 1.0% growth in its professional customer base. GROWTH OF 8.3% IN ON-BALANCE SHEET DEPOSITS AND SAVINGS (EXCLUDING CENTRALIZED SAVINGS) The Banques Populaires recorded robust inflows in what remained a highly competitive economic environment. On-balance sheet deposits and savings (excluding centralized savings) climbed 8.3% to €199.7 billion. Off-balance sheet deposits and savings totaled €75.8 billion at end-2019 (+8.3%), underpinned by UCI, which increased by €2.6 billion (+20.5%), as well as by life insurance outstandings which rose by €2.7 billion (+5.3%). Business was strong on the individual customer market, which posted an increase in deposits of +5.8%, and even more so on the professional, corporate and institutional customer markets, the outstandings of which increased by 12.0%. Risk aversion steered individual customer investments more towards On-balance sheet deposits and savings (+6.2%).

Growth was driven by passbook savings accounts (+9.1% to €45.5 billion at end-2019), in particular the Livrets Jeune and ordinary passbook savings accounts, the outstandings of which increased by 13.3% to €20.2 billion, and the Livret A passbook savings account, which saw growth of €1.2 billion to €11.8 billion at the end of 2019. The LDD Sustainable Development passbook savings account saw an increase of €0.4 billion (+4.9%) to €8.7 billion at December 31, 2019. Demand deposits also contributed to the growth in on-balance sheet savings and deposits over the year, with an increase of €1.9 billion (+7%), taking total demand deposit outstandings to €29.6 billion at the end of 2019. Regulated home savings products grew by €0.5 billion over the year (+2.5% to €21.4 billion). Term deposits continued to fall, with outstandings decreasing by 25% to €1.5 billion at December 31, 2019. Professional, corporate and institutional customers also made a significant contribution to the increase in On-balance sheet deposits and savings, primarily in terms of demand deposits (+12.1%, i.e. +€7.4 billion to €68.4 billion at end-2019) and term deposits (+19.1%, i.e. +€4.6 billion to €28.8 billion).

4

CUSTOMER DEPOSITS AND SAVINGS (in billions of euros)

288.3

8.5 %

265.7

75.8

70

212.5

195.7

● Off-balance sheet deposits and savings ● On-balance sheet deposits and savings (incl. centralized savings)

12.31.2019

12.31.2018

201

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE