BPCE - 2020 Universal Registration Document

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PRESENTATION OF GROUPE BPCE

TEC 2020: A STRATEGIC PLAN FOCUSED ON DIGITAL TRANSFORMATION, COMMITMENT AND GROWTH

Ambitious growth targets in all business lines

→ Throughout the plan, the Group continued to develop its integrated insurance model, with growth of 815,000 non-life insurance contracts, and life insurance outstandings of €72.7 billion (excluding reinsurance contracts with CNP). FOR ASSET MANAGEMENT Confirming our position as a world leader in active investment • strategies in terms of size, profitability and capacity for innovation. Developing alternative strategies and solutions. • Expanding global distribution capacities. • → On December 31, 2020, assets under management amounted to €1,135 billion, against a target of €1,000 billion, an increase of more than 25% year-on-year, with improved expertise across all classes, particularly ESG thanks to Mirova’s expertise. FOR CORPORATE & INVESTMENT BANKING Being recognized as a bank for innovative solutions and • strengthening our Originate-to-Distribute model, primarily by expanding our customer base of insurers and investment funds. Becoming the go-to bank in four key sectors: Energy and • Natural Resources, Infrastructure, Aviation, Real Estate & Hospitality. → The health crisis weighed negatively on revenues and cost of risk for Corporate & Investment Banking. In 2020, the Americas and APAC share of revenues amounted to 37% for a target of 40%.

The Group has set goals for 2020 for each of its business lines:

FOR RETAIL BANKING For the Banques Populaires, developing the civil service • market, consolidating our position as the leading bank for SMEs and maintaining a presence alongside company directors. For the Caisses d’Epargne, consolidating our position as the • preferred bank for individual customers, and particularly those with the potential to become wealth management customers, and continuing our efforts to gain new professional and corporate customers, while maintaining leadership on the institutional market. → Over the course of the plan, the number of banked customers increased by 275,000 for individual customers, by more than 26,000 for professional customers, and by 5,000 for corporate and institutional customers. For Banque Palatine, developing a high-end offering focusing • on dual banking relationships with company directors. Digitizing specialized financial services and boosting synergies • with the banking networks. → Over the course of the plan, BPCE set up the Financial Solutions & Expertise division, acquiring specialized financial service companies from Natixis, to strengthen its proximity to the banking networks. Oney Bank continued to develop its solutions, in particular the “3x4x” split payment offer. Becoming a pure player in payments (Natixis). • → During the plan, Natixis Payments developed a comprehensive range of solutions for all economic players around its three activities—Processing, Digital Payments, and Benefits—and multiplied its revenues by a factor of 1.3. Consolidating our position as a top-tier insurer in France • (notably as one of the Top 5 in personal insurance) and integrating the entire non-life insurance value chain.

Financial trajectory

Groupe BPCE achieved its TEC 2020 strategic plan in line with its liquidity and solvency targets: during the term of the plan, the CET1 ratio was managed at a level above the target of 15.5% to stand at 16% at the end of 2020; and the TLAC ratio exceeded the target of 21.5%, ending 2020 at 23.6%. The cost of risk, maintained at 19bp in 2018 and 2019, rose to 41bp in 2020 for an overall target of 20-30bp over the course of the plan. Risk-weighted assets increased, with an average annual growth rate of 3.7% since the end of 2017, for a target of around 3%.

With regard to cost-income targets (1) , the target for Retail Banking & Insurance stood at 63.9% at the end of 2020 compared to a target of around 64%, while that of Asset & WealthManagementstood at 72.6% for an initial target of 68%, and Corporate & Investment Banking at 74.5% for an initial target of around 60%. The target of cost synergies of €1 billion at the end of 2020 was met, with cost savings of €1.156 billion.

(1) Excluding non-recurring items

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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