BPCE - 2019 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

LOAN OUTSTANDINGS (in billions of euros)

Growth in On-balance sheet deposits and savings was mainly led by demand deposits (+16.3%, i.e. +€12.4 billion). Nevertheless, passbook savings accounts increased by 3.1% to €128.1 billion while term accounts rose by 18.1% to €19.5 billion. There was an increase in the outstandings of Livret Jeune and Livret B passbook savings accounts (+14.3%, i.e. +€2.9 billion) as well as in that of Livret A passbook savings accounts (+1.6%, i.e. +€1.3 billion), and to a lesser degree in regulated home savings products (+1.5%, i.e. +€0.9 billion), which became less popular among savers. Thus, the individual customer market posted net inflows of +€3.9 billion (+1.8%) in 2019 while the corporate and professional customer markets proved much stronger at +€14.4 billion, i.e. +20.5%. Off-balance sheet deposits and savings rose +3.5% to €139.3 billion, underpinned by growth in life insurance outstandings in 2019 (+4.0%, i.e. +€5.1 billion) while growth in UCI outstandings continued to fall (-4.5%, i.e. -€0.4 billion).

291

7.6 %

270.3

35.1

32.5

77

72.3

178.9

165.5

● Other ● Equipment loans ● Real estate loans

12.31.2019

12.31.2018

FINANCIAL RESULTS The Caisse d’Epargne network generated net banking income of €7.0 billion in 2019, a slight decrease vs. 2018 (pro forma) (-0.4%, i.e. -€32 million). Net interest income (1) fell by 0.8% to €3.9 billion. The sales momentum ensured high growth in customer outstandings, leading to a volume effect that partly offset the negative interest rate effect. Revenue from financial investments decreased in relation to 2018. Fees and commissions, which declined by 0.6% vs. 2018 (pro forma), were negatively impacted, mainly, by account management fees and the measures to support purchasing power, which nevertheless were partly offset by the positive trend in fees on loans, underpinned by payment protection insurance. Operating expenses fell by 2.4% to -€4.7 billion. Restated for transformation costs, they were down 1.8% compared with 2018 (pro forma) to -€4.6 billion. The transformation costs include costs related to the implementation of Banco 2020 and costs linked to the absorption of Pacific region banks by Caisse d’Epargne Ile-de-France. They also factor in, albeit to a lesser degree, the residual costs of the creation of Caisse d’Epargne Hauts de France and Caisse d’Epargne Grand Est Europe. As a result, gross operating income came to €2.4 billion in fiscal year 2019, up 3.6% compared to 2018 (pro forma), while the cost/income ratio improved by 1.3pt to 66.4%. The cost of risk for the Caisses d’Epargne was up 1.7% to -€0.4 billion. Divided by loan outstandings, it stood at 15bp in December 2019, down 1bp compared to 2018. The Caisses d’Epargne contributed €1.9 billion to the Retail Banking and Insurance division’s income before tax in 2019, up 3.8% compared to 2018 (pro forma).

CUSTOMER DEPOSITS AND SAVINGS (in billions of euros)

5.5 %

441.4

418.4

139.3

4

134.6

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

302.1

283.7

12.31.2019

12.31.2018

2019: ANOTHER VERY STRONG 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 +7.6% vs. 2018 to €291.0 billion. Individual customer loan outstandings increased 7.7% on 2018 to €165.6 billion, driven in particular by an upturn in home loans (+7.8%, i.e. +€10.7 billion), the outstandings of which came to €147.8 billion in 2019, with activity boosted by low interest rates. Loans to professional, corporate and institutional customers increased by 7.6% to €125.4 billion, driven mainly by equipment loans (+6.5%, i.e. +€4.7 billion to €77.0 billion) and to a lesser extent real estate loans (+9.8%, i.e. +€2.8 billion to €31.1 billion).

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

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE