BPCE - 2020 Universal Registration Document

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ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

Retail banking & Insurance 4.3.4

Financial Solutions and Expertise

Banques Populaires

Caisses d’Epargne

Other Networks

Retail banking & Insurance

Insurance

Payments

Change

2019 pf

2019 pf

2019 pf

2019 pf

2019 pf

in millions of euros Net banking income Operating expenses Gross operating income Cost/income ratio Cost of risk

2020

2020

2020

2020 2019 2020 2019 2020

2020

€m %

6,315 6,305 6,917 6,919 1,134 1,109 901 846 431 423 760 448 16,457 16,050

408 2.5%

(4,242)

(4,294)

(4,549)

(4,616)

(604)

(628)

(491)

(478)

(391)

(370)

(537)

(326) (10,813) (10,713)

(100)

0.9%

2,072 2,012 2,369 2,303 530 481 410 368

39

52 223 121 5,644 5,337

307 5.8%

67.2% 68.1% 65.8% 66.7% 53.2% 56.6% 54.5% 56.5% 90.9% 87.6% 70.7% 72.9% 65.7% 66.7% -- (1.0) pt

(828)

(417)

(914)

(419)

(117)

(79)

2

(2)

(185)

(111) (2,042) (1,028)

(1,014) 98.7%

Share in income of equity- accounted associates Gains or losses on other assets Income before tax

20

34

(17)

10

-

1

4

45

(41) (91.8%)

8

3

9

(3)

(1)

-

(6)

7

10

8

2 28.3%

1,273 1,632 1,464 1,881 413 402 393 378

42

50

31

18 3,615 4,362 (747) (17.1%)

The Retail Banking & Insurance division’s income before tax fell by 17.1% compared to 2019, with however the increase in net banking income across almost all of the sub-divisions.Operating expenses (excluding transformation costs) were up 0.5% compared to 2019 due to growth in the sub-divisions’ activity. The cost of risk doubled compared to 2019, averaging 35 basis points in 2020. The Banque Populaire and Caisse d’Epargne networks accounted for 76% of the Retail banking & Insurance division’s income before tax in 2020. BANQUE POPULAIRE BANKS The Banque Populaire network maintained resilient sales activity in 2020 despite the economic and health context, drawing on the expansion and equipment of its customer base. The Banques Populaires thus recorded an increase of +0.8% in their principal active customers, of which +2.6% for customers stock set up with banking services. The number of active professional customers increased by +0.8%; however, the number of corporate customers fell by -0.6% year-on-year. GROWTH OF 14.6% IN ON-BALANCE SHEET DEPOSITS AND SAVINGS (EXCLUDING CENTRALIZED SAVINGS) The Banques Populaires posted robust inflows in what remained a highly competitive economic environment. On-balance sheet deposits and savings (excluding centralized savings) climbed 14.6% to €229.0 billion. Off-balance sheet deposits and savings totaled €78.8 billion at end-2020 (+4.0%), underpinned by UCI, which increased by €1.7 billion (+11.3%), as well as by life insurance outstandings which rose by €1.1 billion (+2.1%).

Despite the context of the health and economic crisis, deposits increased by +7.7% in the individual customer market and by +17.1% in the professional, corporate, and institutional customer markets. Risk aversion and the desire to build up precautionary savings during the year 2020 directed the investments of individual customers towards balance sheet savings (+11.6%). Growth was driven by passbook savings accounts (+12.3% to €51.1 billion at end-2020), in particular the Livret Jeune (youth passbook) and ordinary passbook savings accounts, the outstandings of which increased by 14.7% to €23.2 billion, and the Livret A passbook savings account, which grew by +€1.8 billion to €13.6 billion at the end of 2020. Outstandings of LDD sustainable development passbook savings accounts increased by +€0.9 billion (+9.9%) to €9.6 billion at the end of 2020. Demand deposits also contributed to the growth in on-balance sheet savings and deposits over the year, with a substantial increase of €5.4 billion (+18.4%), taking total demand deposit outstandingsto €35.0 billionat the end of 2020. Home savings plans PEL/CEL grew by €0.6 billion over the year (+2.9% to €22.0 billion). In view of the low-interest-rate environment, term deposits continued to decline, with outstandings falling by -19.1% to reach €1.2 billion at the end of 2020. Professional, corporate, and institutional customers made a significant contribution to the growth in on-balance sheet savings. In particular, it continued to favor demand deposits (+32.4% or +€22.2 billion, i.e. outstandings of €90.7 billion at the end of 2020), partly funded by payments from State-guaranteed loans; and passbook savings accounts (+16.9% or +€1.7 billion to €11.9 billion). Term deposits fell by -€3.9 billion or -13.7% to reach €24.8 billion at the end of December 2020.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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