BPCE - 2020 Universal Registration Document

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ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

INCOME BEFORE TAX Groupe BPCE’s cost of risk amounted to €3 billion, 2.2 times higher than in 2019 due to increased provisioning of performing loans in the context of the Covid-19 crisis for all business lines, including around 45% of provisions for expected losses. As a percentage of outstanding customer loans, Groupe BPCE’scost of risk is an annual average of 41 basis points. The rate of non-performing loans to gross outstandings was 2.5% on December 31, 2020, a decrease in relation to 2019. The coverage rate for non-performing loans, including collateral on impaired loan outstandings, came to 66.2% on December 31, 2020 versus 74.8% on December 31, 2019. In retail banking, the Banque Populaire network has a cost of risk of 34 basis points (19 basis points in 2019) and 30 basis points for the Caisse d’Epargne network (15 basis points in 2019). The cost of risk also deteriorated for Corporate & Investment Banking, with a cost of risk of 126 basis points (49 basis points in 2019). Gains or losses on other assets amounted to -€144 million in connection with Fidor Bank and H2O. Most of the change in the value of goodwill in 2019 was due to goodwill impairment on Fidor Bank AG. NET INCOME ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT The Group’s income tax totaled €1,045 million, a decrease of 40% compared to 2019. The decrease was mainly attributable to the reduction in pre-tax income and in the French ordinary tax rate. Coface’s contribution, now isolated in the income statement presentation, reached a net income of -€136 million in 2020, including the one-off impacts related to the disposal (-€146 million in gains or losses on other assets, -€47 million under the equity method and €56 million in non-controlling interests), compared to +€44 million in 2019. Net income attributable to equity holders of the parent amounted to €1.6 billion, down by 46.9% compared to 2019.

SOLVENCY The Common Equity Tier 1 ratio was 16.0% on December 31, 2020 versus 15.7% on December 31, 2019. The change in the Common Equity Tier 1 ratio in 2020 can also be attributed to: the increase in Common Equity Tier 1 capital, driven in particular by earnings taken to reserves (+30 basis points) and cooperative share inflows (+28 basis points); the increase in weighted risks (-35 basis points), with the impact of the early implementationof CRR2 allowing a lower weighting of SME exposures (+17 basis points), and the impact of TRIM Corporate at Natixis (-21 basis points). At 16.0%, Groupe BPCE’s Common Equity Tier 1 ratio on December 31, 2020 was significantly higher than the ECB’s minimumrequirement,as defined by the EuropeanCentral Bank (ECB) during the 2020 Supervisory Review and Evaluation Process (SREP). The total capital ratio stood at 18.1% on December 31, 2020, i.e. above the ECB’s minimum requirement. TLAC (Total Loss Absorbing Capacity) amounted to €101.8 billion at end-December 2020. The TLAC ratio was 23.6% on December 31, 2020 versus 23.3% on December 31, 2019 and a target of 21.5% for early 2019, as defined in the TEC 2020 strategic plan. The leverage ratio came out at 5.6% on December 31, 2020 versus 5.3% on December 31, 2019. LIQUIDITY Groupe BPCE’s total liquidity reserves amounted to €307 billion on December 31,2020, including €105 billion in available assets eligible for central bank funding, €56 billionin LCR-eligibleassets, and €146 billion in liquid assets placed with central banks. Short-term funding decreased from €127 billion on Decem- ber 31, 2019 to €106 billion on December 31, 2020. On December 31, 2020, Groupe BPCE’s total liquidity reserves covered 246% of all short-term funding as well as short-term maturities of MLT debt ( versus 155% at end-2019). The Liquidity Coverage Ratio (LCR) is well above the regulatory requirements of 100%, standing at 166% on the basis of the average of end-of-month LCRs in the fourth quarter of 2020.

The Group’s business lines 4.3.2

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-divisionencompassing • the specialized financing activities: Factoring, Leasing, Consumer Financing, Sureties & Financial Guarantees, and the "retail securities" business, in addition to Socfim, BPCE Solutions Immobilières, and Pramex; 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; Other Networks, which include Oney Bank and Banque • Palatine.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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