BPCE - 2019 Universal Registration Document

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ACTIVITIES AND FINANCIAL INFORMATIONS 2019

GROUPE BPCE FINANCIAL DATA

ASSET MANAGEMENT Assets under management stood at €934.1 billion at the end of December 2019, an increase of 16% at current exchange rates (+14% at constant exchange rates) versus December 31, 2018, underpinned by a very positive market effect (+€96.0 billion), the scope effect (+€32.0 billion) with the acquisition of WCM in particular (+$34.6 billion) and a positive foreign exchange effect (+€7.5 billion), which was partly offset by net outflows over the year (-€10.0 billion).

strong growth in performance fees at the European (primarily • H2O and DNCA) and US (AEW CM) asset management companies; an increase in financial income attributable to the positive • impact of the valuation of the seed money portfolio and the integration of WCM and Fiera; an improvement in other revenue thanks to a reversal of the • previously recognized provision for claims and litigation. These increases were partly offset by lower fees on assets under management, mainly in the US, linked to the fall in average outstandings and the fee rate over the period. Expenses came to €2,251 million, including non-recurring items, an increase of 6% versus December 31, 2018 (+3% at constant exchange rates). After restatement for the non-recurring provision reversal recognized in Q1 2018 (an outstanding dispute), the increase in expenses is lower (+5%), underpinned by the increase in internal payroll costs (growth in the headcount in line with growth in the activity), operating costs – essentially IT expenses (development of tools and implementation of projects) – and documentation and market data expenses (increase in prices and impact of MIFID). WEALTH MANAGEMENT The Wealth Management activity recorded net inflows of €0.5 billion in 2019, underpinned mainly by strong activity in the private B-to-B segment thanks to the networks and international wealth management. Assets under management came to €30.4 billion, an increase of 16% year-on-year, with a scope effect of €1.5 billion linked to the acquisition of Massena. Restated for this effect, assets under management increased by 11% in relation to 2018. Meanwhile, loan outstandings climbed 2% to €2.1 billion. In 2019, net banking income totaled €149 million, up 3% (+€4.7 million) on 2018. After restatement for scope effects related to Sélection 1818 and Massena Partners, it was up 8%. This increase can be attributed mainly to strong performance fees recorded in the last quarter of 2019 (+6.5 million versus 2018) and growth in fees on assets under management of 8% over the period. Expenses stood at €157.5 million, up 5% compared with 2018. After restatement for scope effects related to Sélection 1818 and Massena Partners, expenses increased by 4% versus 2018. EMPLOYEE SAVINGS Assets under management at end-December 2019 stood at €27.0 billion, up €0.4 billion or 1% in relation to December 31, 2018, underpinned by a very positive market effect (+€3.7 billion) which more than offset net negative investments (-€3.3 billion). Average assets under management came to €28.7 billion over the year, an increase of 5%. At December 31, 2019, net banking income stood at €100 million, up 6% compared with December 31, 2018, underpinned by account keeping fees, financial management fees and other income (car lease activity). Expenses came to €83 million, up 5% in relation to December 31, 2018, primarily comprising growth in IT expenses.

YEAR-ON-YEAR CHANGE IN ASSETS UNDER MANAGEMENT (in billions of euros)

+32.0

+96.0 +7.5

- 10.0

934.1

808.6

Assets under management at 12.31.2018

Market effect

Foreign exchange effect

Scope effect

Net inflows

Assets under management at 12.31.2019

The business line recorded net outflows over the year of €10.0 billion at current exchange rates, i.e. -€7.0 billion on long-term products, including: in the US, net outflows on long-term products of -€4.0 billion, • primarily at Harris Associates (-€10.3 billion related to equity products) and at Gateway Investment Advisers (-€1.8 billion related to alternative products), which were partly offset by inflows at WCM Investment Management (+€4.8 billion related to equity products) and Loomis Sales & Co (+€3.8 billion related to equity products); net outflows of -€4.1 billion recorded at Dynamic Solutions, • mainly related to equity products (-€3.6 billion) and structured products (-€1.2 billion); net outflows of -€2.3 billion in Europe, primarily at DNCA • Finance and H2O (-€3.4 billion and -€3.0 billion respectively related to diversified products), which were partly offset by inflows at Mirova (+€3.2 billion related to equity products) and at AEW Europe (+€0.7 billion related to real estate products); a slight net inflow generated by Private Equity firms of • -€69.7 million. At €859.2 billion, average assets under management at December 31, 2019 were up 0.4% compared to 2018, at constant exchange rates. At 29.6 pts, the rate of return on AuM was down slightly in relation to December 31, 2018, at constant exchange rates. At end-December 2019, AuM can be broken down into predominantly equity products (29.3%), followed by bond products (28.4%) and life insurance (20.2%). At December 31, 2019, net banking income stood at €3,511 million, up 7% versus December 31, 2018 ( i.e. +4% at constant exchange rates), underpinned by:

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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