BPCE - 2019 Universal Registration Document

FINANCIAL REPORT

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

Other information

Note 12

SEGMENT REPORTING 12.1 Segment reporting has been modified as of the first quarter of 2019, consistent with the strategic plan. BPCE SA group has three core businesses: Retail Banking and Insurance, which is central to the transformation, includes: Financial Solutions and Expertise, a sub-division encompassing • the 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, and which 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 with “Natixis Interépargne”, a top-tier player • in employee savings plan management in France which has been included in 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. Financing of the cinema industry was included in 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; the run-off activities of Crédit Foncier and BPCE International; • 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. • BPCE SA group’s segment reporting information has been restated accordingly for previous reporting periods and also incorporates the deconsolidation of subsidiaries Banque de Tahiti, Banque de Nouvelle Calédonie, Société Havraise de Calédonie from BPCE International subsequent to their transfer to the Caisse d’Epargne network, and of INGEPAR subsequent to its transfer from BPCE International to the Banque Populaire network.

5

12.1.1

SEGMENT ANALYSIS OF THE CONSOLIDATED INCOME STATEMENT

Results by division (1)

Corporate & Investment Banking

Retail Banking and Insurance*

Asset & Wealth Management

Corporate center

Groupe BPCE

2019 pf

2018 pf

2019

2018 pf

2019

2018 pf

2019

2018 pf

2019 pf

2018 pf

in millions of euros

Net banking income Operating expenses

2,790

2,557

3,760

3,513

3,337

3,266

1,168

1,332

11,054 (8,820)

10,668 (8,713)

(1,818)

(1,662)

(2,492)

(2,343)

(2,235)

(2,202)

(2,275) (1,107)

(2,506) (1,175)

Gross operating income

971

895

1,268

1,170

1,102

1,064

2,234

1,954

ns

ns

79.8% 81.7%

Cost/income ratio

65.2% 65.0% 66.3% 66.7% 67.0% 67.4%

Cost of risk

(149)

(67)

(8)

(2)

(312)

(174)

(22) 209 (12) (78)

(125)

(491)

(368)

Share in income of equity-accounted associates

11

15

1

3

10

12

219 (42) (16)

231

248

Gains or losses on other assets Change in the value of goodwill

7

1

13

43

(15)

3

(7)

4

(78)

(16)

Income before tax

841

843

1,273 (353) (447)

1,214 (328) (418)

786

904

(1,010)

(1,139)

1,890 (569) (698)

1,822 (372) (702)

Income tax

(276)

(255)

(212) (176)

(241) (199)

272

452

Non-controlling interests (minority interests) Net income 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

(78)

(81)

3

(3)

487

507

473

468

397

464

(735)

(692)

623

747

14

(327)

(8)

(9)

(6)

280

8

(63)

502

180

473

460

397

455

(741)

(410)

631

685

Excluding Banques Populaires, Caisses d’Epargne and their consolidated subsidiaries. *

(1) 2018 segment reporting information is stated pro forma of the transfer of Specialized Financing to BPCE SA, and also takes into account the deconsolidation of INGEPAR, Banque de Tahiti, Banque de Nouvelle Calédonie and Société Havraise de Calédonie with an impact on net income attributable to equity holders of the parent of +€63 million, including an impact of -€133 million on net banking income, +€82 million on management fees and +€80 million on non-controlling interests. 2019 segment reporting information is pro forma of the deconsolidation of subsidiaries Banque de Tahiti, Banque de Nouvelle Calédonie and Société Havraise de Calédonie with an impact on net income attributable to equity holders of the parent of -€8 million, including -€91 million on net banking income, +€40 million on management fees.

471

UNIVERSAL REGISTRATION DOCUMENT 2019 | GROUPE BPCE