BPCE - 2019 Universal Registration Document

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ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

FINANCIAL SOLUTIONS AND EXPERTISE (SEF) The Financial Solutions and Expertise businesses developed a strong commercial activity throughout the year, ramping up their relations with the Banque Populaire and Caisse d’Epargne networks in particular. Factoring generated revenue of €59.4 billion in 2019, with activity holding up well in the professional and SME client segments. Consumer Finance posted a record level of business activity with loan outstandings at year-end of €26.4 billion, up 7%, driven mainly by momentum in personal loans. Leasing saw continued growth, notably among the Banque Populaire and Caisse d’Epargne networks, with record growth in new loans of 13%, driven by strong equipment leasing activity. Sureties and Guarantees saw very strong activity in the loan guarantee market for retail customers, with a substantial increase in the penetration rate on the Banque Populaire network. Gross issued premiums rose by 24% vs. 2018 on this market. Securities Services continued to expand its range of services for the networks. SOCFIM saw strong growth in its real estate financing activity, with new loans up 14.5% year-on-year.

This impact on the cost of risk weighed on growth in income before tax, which totaled €404 million at end-2019, a slight year-on-year decrease of 0.7%. INSURANCE Sales momentum was very strong in provident and non-life insurance and in life insurance in 2019. With €10.1 billion in direct business premiums, life insurance inflows were up 5% year-on-year: activity remained at a high level against a backdrop of low interest rates and higher financial markets and inflation. Premiums on unit-linked assets totaled €3.1 billion (-3%) and made up 30.6% of total gross inflows in 2019 versus 33.2% in 2018, down 2.6 points year-on-year but outperforming the market by 4 points at end-December (27%). Inflows invested in the euro fund increased by 9% to €7.0 billion. CHANGE IN LIFE INSURANCE ASSETS UNDER MANAGEMENT EXCLUDING OUTSTANDINGS RELATED TO CNP (in billions of euros)

+2.3

+2.5

+3.5

BREAKDOWN OF 2019 SEF NBI BY BUSINESS LINE

60.1

68.4

Pramex 1 % Securities Services 8 %

Factoring 14 %

CFI 3 %

Assets under management at 12.31.2018

Net inflows €

Net inflows Unit-linked

Market and other effects

Assets under management at 12.31.2019

Socfim 5 %

Sureties and financial guarantees 23 %

Premiums on provident and payment protection insurance (€993 million) continued to increase at a steady pace of 12%, with no material impact from the Bourquin amendment, and with the launch of the Family Insurance and Funeral Insurance ranges in the Banque Populaire network, the impacts of which will not be truly felt until 2020. The non-life insurance portfolio grew by 5% to 6.1 million policies. Gross sales increased by 1%, with no change in the Caisse d’Epargne network and an increase of 6% in the Banque Populaire network. Earned premiums grew by 6% to €1,577 million, with similar growth levels on both networks. Growth was driven by the core offering, with auto insurance up 8%, multi-risk home insurance up 7%, Pers. acc./Multi-risk acc. insurance up 7%, in line with growth in the portfolio. Net banking income for the Insurance business lines totaled €846 million, up 7.1% compared with 2018, resulting from: growth of 9% in NBI from life insurance, underpinned by • growth in insurance outstandings (+14%), continuation of the rollout in the Caisse d’Epargne network that began in 2016 and the revaluation of unit-linked policies. Despite a further decline in interest rates in 2019, the diversification of investment sources helped to contain the dilution of the rate of return on assets;

Consumer finance 24 %

Lease Financing and Leasing 22 %

The net banking income of this division totaled €1,117 million, a year-on-year increase of 2.6%, underpinned mainly by real estate financing (+32%), leasing (+4.4%) and equipment leasing in particular, as well as by the sureties and real estate loan guarantee activities (+1.3%) and consumer finance (+1.2%), which in turn was driven by strong momentum in personal loans. Operating expenses in the SEF division amounted to €634 million, up 2.5% year-on-year, linked to the development of activities and structuring of the division. Gross operating income rose 2.6% to €483 million vs. 2018 (pro forma). Although very closely managed during the year, the cost of risk (€79 million), increased by 24.9% mainly due to the impact of IFRS 9 on the 2018 comparison base.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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