BPCE - 2020 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

Groupe BPCE financial data 4.3

4.3.1

Groupe BPCE results (1)

Groupe BPCE posted solid revenues of €22.5 billion, down by 4.5% compared to 2019 despite the economic and health situation. Net income came to €1.6 billion, including a resolutely prudent provisioning policy and the Group’s ongoing transformation.

Groupe BPCE

Chg. 2020/2019 pf

2020

2019 pf 23,593 (17,065) 6,528 72.3% (1,365)

€m

%

in millions of euros

Net banking income Operating expenses

22,540 (16,644) 5,896 73.8% (2,998)

(1,053)

(4.5%) (2.5%) (9.7%) 1.5 pt

421

Gross operating income

(632)

Cost/income ratio

--

Cost of risk

(1,633)

x2.2

Share in income of equity-accounted associates

227

265

(38)

(14.4%)

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

(144)

(1)

(143)

ns ns

(88)

88

4

Income before tax

2,982

5,338

(2,357)

(44.1%) (40.2%) (68.3%) (41.6%)

Income tax

(1,045)

(1,748)

703 412

Non-controlling interests (minority interests)

(191) 1,745 (136) 1,610

(604) 2,986

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT - excl. Coface net contribution

(1,241)

Net contribution by Coface

44

(180)

ns

NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT

3,030

(1,420)

(46.9%)

NET BANKING INCOME On December 31, 2020, Groupe BPCE’s net banking income was resilient in the face of the health crisis, at €22.5 billion, underpinned by strong commercial momentumin retail banking, within the networks in particular, coupled with robust growth in the Insurance and Financial Solutions & Expertise business lines. Retail banking and Insurance posted revenue growth, with net banking income up by 2.5% to €16.5 billion, demonstrating the robust model anchored across the regions, in a context where the low-interest-rate banking environment is weighing on loan outstandings. Loan outstandings increased by 11.1% year-on-year to €613 billion at the end of December 2020, with home loans up 8.1%, consumer loans up 2.2%, and equipment loans up 7.0%. At the end of December 2020, deposits and savings excluding centralized regulated savings amounted to €522 billion (+13.9%), while demand deposits showed an increase of 28.1% year-on-year. Net banking income in the Asset & WealthManagementdivision decreased by 14.2% in 2020 (-13.4% at constant exchange rates) to €3.2 billion compared to 2019. Asset Management revenues in 2020 were impacted by the decline in performance fees (mainly H2O), management fees (concentrated in the United States), and financial products. At the same time, Wealth Management revenues rose significantlyby 19.5% year-on-year, benefiting in particular from a high level of performance fees; and income from employee savings fell by just 1.1%.

Corporate & Investment Banking generated net banking income of €2.8 billion in 2020, down 16.0% (-15.3% at constant exchange rates) compared to 2019, impacted by a difficult financial environment in the first half. OPERATING EXPENSES Operating expenses stood at -€16.6 billion, down by 2.5% compared to 2019 (-2.7% restated for the contribution to the Single Resolution Fund). This positive development is the result of continued cost reductions, thanks to optimized operational performance and good cost control. The Group’s transformation costs, related to synergy-creating transactions such as mergers of institutions and migrations of IT platforms for digital transformation, are included in operating expenses. Retail banking & Insurance operating expenses, excluding transformation costs, were up slightly by 0.5% in connection with the development of its activities, resulting in a positive scissors effect. Most of the decrease in operating expenses was concentrated in the Asset & Wealth Management and Corporate & Investment Banking divisions. The Group headcount dipped 4.5% in relation to 2019, to 100,344 employees on December 31, 2020. Gross operating income amounted to nearly €6 billion in 2020, a decrease of 9.7% on 2019. Restated for non-recurring items, the cost/income ratio stood at 72.0% in 2020, a deterioration of 1.5 points.

(1) Segment information has been restated for the net contribution of Coface, now isolated in the income statement presentation in net income attributable to equity holders of the parent of -€136 million in 2020 and +€44 million in 2019.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE