BPCE - 2019 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

electronic payments and service voucher activities, as well as by the acquired fintech activities. In parallel, the issuing solutions activity (NPS and S-money) contributed €4.9 million to revenue growth, with the launch of specific and innovative payment products and services, such as Xpollens. Expenses in the Payments division came to €370 million, up 8.5% vs. 2018, notably attributable to the staff, IT and digital investments needed for its development. Overall, gross operating income rose 8.7% to €52 million. Income before tax came to €50 million, up 7.5%. Groupe BPCE acquired 50.1% of Oney Bank on October 22, 2019. To simplify things, the entire earnings for Q4 2019 are split between Groupe BPCE (50.1%) and the Auchan Holding group (49.9%). Oney Bank’s gross operating income amounted to €37 million in the fourth quarter. Its activity was underpinned by the rollout of new customer processes, particularly relating to the split payment solution in France. It is worth noting that several partnerships were signed in 2019, taking the number of banners that selected Oney’s split payment solution to a total of 450. BANQUE PALATINE Banque Palatine contributed €43 million to the division’s income before tax, up 2.6% relative to 2018. Growth in NBI of 0.5% and closely managed operating expenses helped it to achieve a 2% increase in gross operating income. Following on from the implementation of its transformation program, Palatine notably generated IT migration expenses of €49 million in 2019. OTHER NETWORKS ONEY BANK GROUP

growth of 6% in NBI from provident insurance and payment • protection insurance, reflecting the resilience of the business; growth of 5% in NBI from non-life insurance: the loss ratio • remained under control despite an increase in the average guarantee cost on auto equipment and the climate events that occurred in 2019. The combined ratio stood at 91.7%, a slight increase on 2018. Operating expenses were up 6.8% to €478 million. This growth is lower than growth in NBI, reflecting the development of the activities and the implementation of the New Dimension plan’s strategic ambitions: rollout of the new provident insurance offering for individual customers, continuation of the strategic projects in non-life insurance and initiation of rollout, and the work to implement IFRS 17 in particular. Gross operating income rose 8% to €368 million. PAYMENTS This activity showed further strong momentum in 2019, both in the division’s historical activities and in the fintech activities. The historical activities were underpinned by strong growth in electronic payment transactions, with processed volumes continuing to increase at a strong pace (card authorizations +16% and card transactions +10%), and by the NIT (Natixis Intertitres) activity, for which the value of issued restaurant vouchers in millions of euros increased by 6% versus 2018. The fintech activity notably saw growth in volumes recorded by Payplug and Dalenys, which reached record levels in 2019, increasing by 83% and 21% respectively. Revenue in the Payments division grew by 8.5% year-on-year to €423 million (+€33 million) with scope effects of +€11 million linked to the acquisitions of Comitéo and Titres Cadeaux. This growth was underpinned by the performance of the historical

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Asset & Wealth Management 4.3.5

Asset & Wealth Management

Chg. 2019/2018 pf

2019

2018 pf

€m

%

in millions of euros

Net banking income Operating expenses

3,760

3,513

247

7.0% 6.3% 8.4%

(2,492) 1,268 66.3%

(2,343) 1,170 66.7%

(149)

Gross operating income

98

Cost/income ratio

0

(0.4) pt

Cost of risk

(8)

(2)

(7) (2)

ns

Share in income of equity-accounted associates

1

3

(67.5%) (70.7%)

Gains or losses on other assets

13

43

(30)

Income before tax

1,273

1,214

59

4.9%

The Asset & Wealth Management division saw a 7.0% increase in revenue at current exchange rates in relation to December 31, 2018 to €3.8 billion (+4.1% at constant exchange rates). Expenses increased at a slower pace (+6.3% at current exchange rates, i.e. +3.3% at constant exchange rates) to €2.5 billion.

Gross operating income was up 8.4% at current exchange rates (+5.7% at constant exchange rates) to €1.3 billion.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE