BPCE - 2020 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

FINANCIAL RESULTS (PRO FORMA VIEW) The Banque Populaire network’s net banking income totaled €6.3 billion in 2020, a slight increase (+0.1%) compared to 2019 (+0.6% excluding the change in the home savings provision). The interest margin (1) was €3.7 billion, up +89.2 million year-on-year. In an environment of persistently low interest rates, the interest margin was carried by strong momentum in business volumes and a declining cost of inflows, very low or even negative-rate refinancing in the form of TLTROs, and, lastly, compensation measures such as Tiering mechanism, despite the negative impacts of changes in fair value observed on certain financial assets. Fees were down (-3.4%) to €2.5 billion, specifically account management fees (-14.0%), impacted by the decrease in the number of payment incidents and transaction flows, in the context of the health crisis. However, loan fees and commissions increased (+1.4%), driven by payment protection insurance to +11.3%, as well as payment instrument fees and commissions (+0.7%). Centralized savings fees and commissions recorded a more dynamic trend (+18.4%), as well as financial savings (+4.0%). Income and expenses from other activities deteriorated (-€7.2 million), due to a favorable 2019 base-line effect for a BRED subsidiary (Sofider subsidy). Net income from insurance activities, which concern BRED’s Prépar Vie and Prépar IARD subsidiaries, increased significantly (+€16.9 millionor +12.7%), due to the reversal of provisions on the risk coverage floor guarantee of €16 million. Operating expenses fell significantly (+€51.4 million, or -1.2%) to -€4.2 billion, reflecting good cost control by the institutions. Payroll expenses were virtually stable (+€3.2 million, i.e. -0.1%) at -€2.5 billion amid a reduction in the headcount, particularly in those institutions that had recently merged. Accordingly, Banque Populaire Aquitaine Centre Atlantique, Banque Populaire Auvergne Rhône Alpes, Banque Populaire Grand Ouest, and Banque Populaire Méditerranée together registered a decrease of 439 FTEs. On the other hand, BRED’s headcount increased by 96 FTEs, in line with its development needs. The decline in other operating expenses (+€48.1 million, i.e. -2.6%) was mainly driven by savings on external services and savings resulting from the health and economic context. Transformation costs were down significantly to -€32.0 millionin 2020 compared to -€80.5 million in 2019 ( i.e. -60.2%) and are spread across all the institutions, except for CASDEN. The main institutions affectedwere BRED (-€6.7 million),Crédit Coopératif (-€4.1 million), Banque Populaire du Nord (-€3.3 million), Banque Populaire Auvergne Rhône Alpes (-€3.2 million), and Banque Populaire Rives de Paris (-€3.1 million), bringing the transformation costs of the Banques Populaires network to -20.4 million, or 63.8% of the total. Gross operating income came out at €2.1 billion, increasing by +3.0%, while the cost/income ratio improved 0.9 of a point to 67.2% in 2020.

CUSTOMER DEPOSITS AND SAVINGS (in billions of euros)

322.9

12.0 %

288.3

78.8

75.8

244.1

● Off-balance sheet deposits and savings ● On-balance sheet deposits and savings (incl. centralized savings)

212.5

12/31/2019

12/31/2020

LOAN OUTSTANDINGS UP 15.5% IN AN ENVIRONMENT OF LOW INTEREST RATES The Banques Populaires consolidated their active role in financing the economy, with an annual increase of +15.5% in loan outstandings to €259.9 billion at end-2020. The growth in loan outstandings in the individual customer market (+9.3% to €129.6 billion) was buoyed by robust growth in home loan outstandings (+10.0% to €117.7 billion), amid low interest rates which bolstered demand. Consumer loans also contributed to the rise in total loan outstandings,with growth of +3.6% to €11.5 billion at end-2020. On the professional, corporate, and institutionalmarkets, growth in outstandings was very strong (+22.5%), bringing them to €130.3 billion at the end of 2020, due in particular to State-guaranteed loans, outstandings of which amounted to €16.9 billion at the end of 2020, and equipment loans (+10.2% to €71.4 billion).

4

LOAN OUTSTANDINGS (in billions of euros)

259.9

15.5 %

225.0

42.9

26.4

75.1

68.3

● Other (incl. SGLs) ● Equipment loans ● Real estate loans

141.9

130.3

12/31/2020

12/31/2019

(1) Fees and commissions on centralized savings have been restated from net interest income and included in fee and commission income.

221

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE