BPCE - 2019 Universal Registration Document

5

FINANCIAL REPORT

IFRS CONSOLIDATED FINANCIAL STATEMENTS OF GROUPE BPCE AS AT DECEMBER 31, 2019

Other information

Note 12

SEGMENT REPORTING 12.1 The Group has three core businesses: Retail Banking and Insurance, which is central to the transformation, includes: the Banque Populaire network, comprising the fourteen • Banques Populaires and their subsidiaries, Crédit Maritime Mutuel, and the Mutual Guarantee Companies; the Caisse d’Epargne network, consisting of the • fifteen Caisses d’Epargne; Financial Solutions and Expertise, a sub-division encompassing • specialized financing activities: Factoring, Leasing, Consumer Finance, Sureties & Financial Guarantees, and Retail Securities Services (formerly housed in the Specialized Financial Services (SFS) sub-division in addition to Socfim, CFI and Pramex (formerly in Other Networks); Insurance, a Natixis business line serving the Groupe BPCE • networks and their customers; Payments, which offers a full range of payment and prepaid • solutions to local businesses, online and via mobile devices. The Payments activity is becoming a business line in its own right; Other Networks, which include Oney Bank and Banque • Palatine. Asset & Wealth Management, a Natixis business line consisting of: Asset Management, which operates on several international • markets, combining expertise in investment management and distribution;

Wealth Management, with Natixis Wealth Management, • which offers wealth management and financing solutions for large private-sector investors; employee savings, “Natixis Interépargne” is a top-tier player in • employee savings plan management in France which joined the Asset & Wealth Management division. Corporate & Investment Banking, a division of Natixis: Corporate & Investment Banking advises and supports • corporates, institutional investors, insurance companies, banks and public sector entities. Film and Audiovisual Financing joined the Corporate & Investment Banking division in 2019. The Corporate center, which primarily includes: the Group’s central institution and holding companies; • Natixis’ equity interests in Coface, Natixis Algérie and Natixis • Private Equity; run-off activities of Crédit Foncier and BPCE International; • unlisted investments and cross-business activities; • items related to goodwill impairment and the amortization of • valuation differences, as these items form part of the Group’s acquisition and investment strategy; the contribution to the Single Resolution Fund. • Groupe BPCE’s segment reporting information has been restated accordingly for previous reporting periods and also incorporates the transfer of subsidiaries Banque de Tahiti, Banque de Nouvelle Calédonie, Société Havraise de Calédonie from BPCE International to the Caisse d’Epargne network, and of INGEPAR from BPCE International to the Banque Populaire network.

12.1.1 Results by division (1)

SEGMENT ANALYSIS OF THE CONSOLIDATED INCOME STATEMENT

Corporate & Investment Banking

Retail Banking and Insurance

Asset Management

Corporate center

Groupe BPCE

2019 2018 pf

2019 2018 pf

2019 2018 pf

2019 2018 pf

2019 2018 pf

in millions of euros

Net banking income Operating expenses

16,317 16,056

3,760

3,513

3,337

3,266

891

1,166 24,305 24,001

(10,844)

(10,803)

(2,492)

(2,343)

(2,235)

(2,202)

(2,011)

(2,339) (1,173)

(17,582)

(17,687)

Gross operating income

5,473

5,253

1,268

1,170

1,102

1,064 (1,121)

6,722

6,314

Cost/income ratio

66.5% 67.3% 66.3% 66.7% 67.0% 67.4% ns

ns

72.3% 73.7%

Cost of risk

(1,028)

(999)

(8)

(2)

(312)

(174)

(20)

(125)

(1,367)

(1,299)

Share in income of equity-accounted associates Gains or losses on other assets Change in the value of goodwill

45

44

1

3

10

12

209

226 (32) (16)

265

284

8

2

13

43

(15)

3

(4)

1

15

(84)

(84)

(16)

Income before tax

4,499

4,300

1,273 (353) (447)

1,214 (328) (418)

786

904 (1,020)

(1,121)

5,538

5,297

Income tax

(1,476)

(1,367)

(212) (176)

(241) (199)

241

460 (1,801)

(1,477)

Non-controlling interests (minority interests) EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT Transition from pro forma to reportable net income attributable to equity holders of the parent (1) REPORTABLE NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

(87)

(90)

3

(7)

(707)

(714)

2,936

2,842

473

468

397

464

(776)

(669)

3,030

3,105

(346)

(8)

(9)

284

(79)

2,936

2,496

473

460

397

455

(776)

(386)

3,030

3,026

(1) 2018 segment reporting information is stated pro forma of the transfer of Specialized Financing to BPCE SA, with an impact on non-controlling interests and net income attributable to the equity holders of the parent of €79 million.

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UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE

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