BPCE - 2019 Universal Registration Document

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PRESENTATION OF GROUPE BPCE

TEC 2020: A STRATEGIC PLAN FOCUSED ON DIGITAL TRANSFORMATION, COMMITMENT AND GROWTH

New strategic operations

fixed-income strategies and insurance, which will be 55%-owned by Natixis Investment Managers and 45% by LBPAM, for the purposes of the CNP Assurances/La Banque Postale – merger, establishment of a new shareholders’ agreement through end-2030 between BPCE and La Banque Postale, in their capacity as shareholders, owning 16.11% and 62.13% of CNP Assurances’ share capital, respectively, agreement between BPCE and CNP Assurances through – end-2030 resulting in a 50-50 coinsurance split between Natixis Assurances and CNP Assurances for collective payment protection insurance and the reinsurance by CNP Assurances of 34% of individual payment protection policies underwritten by BPCE Vie. This growth is being achieved in strict compliance with the Group’s financial fundamentals, i.e. keeping the CET1 ratio above 15.5% for the duration of the plan and the TLAC ratio above 21.5% (excluding senior preferred debt) as from early 2019 by issuing €4 billion to €5 billion in senior non-preferred debt per year, while keeping cost of risk on outstandings low (19 bp in 2019). Groupe BPCE has set an NBI target of more than €25 billion by the end of 2020. The target cost/income ratio is approximately 64% for Retail Banking and Insurance, 68% for Asset & Wealth Management, and 60% for Corporate & Investment Banking. To meet these targets, the Group will rely on revenue synergies between BPCE, Natixis, Banques Populaires and Caisses d’Epargne business lines (€431 million in additional revenues generated as of end-2019 despite the low interest rate environment, which is detrimental to financing activities) and a cost-cutting program whose target of €1 billion in savings by 2020 was reached in 2019.

In 2019, the Group carried out new strategic operations in order to vitalize retail banking, streamline its organizational structure and prepare for the future: incorporation of Natixis specialized financial services, i.e. • Factoring, Sureties & Guarantees, Leasing, Consumer Finance and Securities Services, in BPCE SA; partnership with Auchan Holding, with BPCE SA having • purchased a 50.1% stake in Oney Bank, a leading European player in consumer finance and payment activities; acquisition by BPCE SA of Crédit Foncier’s stake in Socfim, a • global player in financing for real estate professionals; sale by BPCE International of: • Banque de Tahiti and Banque de Nouvelle Calédonie to – Caisse d’Epargne Ile-de-France, stakes in banking operations located in Sub-Saharan Africa to – Moroccan group BCP: in Cameroon: 68.5% of Banque Internationale du – Cameroun pour l’Épargne et le Crédit (BICEC), in Madagascar: 71% of Banque Malgache de l’Océan – Indien (BMOI), in the Republic of the Congo: 100% of Banque – Commerciale Internationale (BCI); agreement signed for the sale of 60% of Banque • Tuniso-Koweitienne (BTK) by BPCE International to the Tunisian government subject to the procurement of the necessary authorizations; talks in progress between Groupe BPCE and Banque Postale • with a view to expanding their business partnership in 2020: merger of the asset management activities of Ostrum Asset – Management and La Banque Postale Asset Management (LBPAM) to establish a European specialist in euro

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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