BPCE - 2020 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2020

SIGNIFICANT EVENTS OF 2020

The dip in the fourth quarter then interrupted this catch-up momentum. This deep recession, however, caused a one-time impressive increase in the savings rate and, as a result, in household financial investments, due to an unprecedented contraction in consumption (forced savings, then precautionary savings) and the preservation of purchasing power. It only fell by 0.3%,

thanks to the decline in inflation (an annual average of 0.5%, compared with 1.1% in 2019) and, above all, partial unemployment benefits. The latter allowed employment to fall by only 2.3%, much less than activity. The corporatemargin rate lost almost four points on average over the year. Finally, most of the revenue losses due to the crisis were borne by the general government, with public debt amounting to 120% of GDP.

Significant events of the fiscal year 4.2.2

The year 2020 was marked by the management of the coronavirus health crisis. Groupe BPCE entered the crisis with extremely solid fundamentals in terms of its solvency, liquidity and risks, and it took several initiatives to address the consequences of the crisis. It did better than withstand the crisis and its expected prolongation, in particular thanks to the very good level of activity in the two major Banque Populaire and Caisse d’Epargne networks. All its teams were mobilized to support customers as closely as possible and work with them to find the best financial solutions to face this crisis. The business continuity plan was implemented to protect employees’ health and safety, facilitate operations for customers (branch opening, ATMs, communications, and the application of the new health protection measures), and maintain internal processes (funding, accounting, compliance with regulations, etc.). Massive use of digital technology became necessary, and the rollout of digital solutions was ramped up. To support the economy and its customers, Groupe BPCE announced an automatic six-month deferral, with effect from March 20, 2020, of investment loans to companies and professionals most affected by the health crisis: more than 425,000 repayment moratoria were signed in 2020. The initial repayment moratoria for the tourism, hotel and catering sectors have been extended for six months. The retail networksensured that eligible business and professional customers could benefit from the State-guaranteed loan mechanism by undertaking to review all applications rapidly. As a result, 193,000 loans totaling €30 billion were disbursed in 2020. Groupe BPCE was the first player in France to extensively rollout the Sign’it electronic signature service for State-guaranteed loans issued by the Banques Populaires and the Caisses d’Epargne. To support the recovery of businesses, Banque Populaire and Caisse d’Epargne signed an agreement with the European Investment Fund (EIF) to finance loans of €75 million. This agreement aims to facilitate access to financing for SMEs, mid-cap companies, and start-ups with fewer than 3,000 employees that invest in projects of an innovative, adaptive, or transformationalnature in relation to the current health crisis. For individual customers, a number of services were enhanced to ensure service continuity and quality. Basic services continued, with bank cards and checkbooks automatically sent to customers’ homes, daily monitoring of ATM cash stocks and checks to ensure online banking services remained accessible. Customers were encouraged to use mobile apps for all their everyday banking transactions, and to use text messages to contact their branch. Efforts to facilitate customers’ daily lives were stepped up, for example by raising the contactless payment limit from €30 to €50, offering cash withdrawals by text message to all customers, which is particularly useful for those without a bank card, and managing cancellations and complaints regarding direct debits issued by the tax authorities

(DGFiP). To better protect customers against phishing (theft of login details or passwords) and means of payment fraud (transfers, card payments, checks), a communications and awareness campaign was organized for employees and customers. The Banques Populaires and the Caisses d’Epargne launched a support plan for students and apprentices to help them get through the crisis. As far as business activity is concerned, the Banques Populaires recorded extremely favorable banking mobility scores, with a gain of 52,600 new customers over the year. All the Banques Populaires extended the Cristal range of everyday banking services they offer, with more than 453,000 customers set up. In non-life insurance, the new Innove2020 offer entered the general rollout phase and was successfullydeployed for the first time at three Banques Populaires in September. In the professional and corporate markets, the priority remained the provision of customer support. This support was highly appreciated and was reflected in customer satisfaction barometers, which rose sharply. Customers emphasized accessibility, responsiveness and pro-activity as key qualities. New business volumes were also up sharply compared to 2019. Banque Populaire helped drive the recovery in its professional customers’ business activity with the SOCAMA Relance loan, a loan without personal guarantee from the manager, their family or a third party, 100%-guaranteed by SOCAMA ( Société de caution mutuelle artisanale ) and supported by the European Investment Fund (EIF). The omnichannel e-commerce payment solution PayPlug was rolled out across the network and offered free of charge to doctors in the context of the health crisis. A Leaseback offer developed by BPCE Lease was launched, allowing customers to refinance investments in recently acquired equipment or assets with a long lifespan. Finally, Banque Populaire was awarded a prize by the magazine Mieux Vivre Votre Argent for the one-year performanceof its collective investment range, taking third place (out of thirteen institutions) at the Corbeille d’Or awards. The Caisses d’Epargne continued to support the economy, with more than €68 billion in new loans granted to households and businesses over the year. The negative trend in banking mobility was reversed, with nearly 13,000 new customers gained during the year. The new everyday banking solution, Les Formules , recorded a very strong year, with over a million contracts signed and a very positive range of subscription types. With regard to home insurance, a new MRH (multi-risk home insurance) was successfully launched. A new turnkey e-commerce offer for professional customers, IZ e-commerce, was rolled out, providing a platform for creating, managing and developing an e-commercesite; access to advice, support and e-commerce expertise; and a simple and secure payment solution.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE