BPCE - 2020 Universal Registration Document

ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

FINANCIAL RESULTS (PRO FORMA VIEW) The Caisse d’Epargne network generated a net banking income of €6.9 billion in 2020, stable compared to 2019, amid an economic and health crisis. Net interest (1) income fell by -1.7% to €3.8 billion. Restated for the home savings provision, the net interest margin increased by +0.6%. The sales momentum ensured high growth in customer outstandings, producing a positive volume effect on loans to which was added an accelerated decrease in the cost of customer resources, linked to the favorable trend in the structure of oustandings and to the decline in the Livret A rate. Financial investment income was down compared to 2019, penalized by the impact of changes in the fair value of certain financial assets. Fees and commissions, up +1.1% compared to 2019, were mainly driven by credit activity (+5.8% of which +7.0% on payment protection insurance fees) and fees on payment instruments (+7.2%), while account management fees were down by -10.2%, mainly due to the drop in incidents. Operating expenses fell -1.5% to -€4.5 billion, reflecting the decrease in headcount, lower variable compensation, and a reduction in expenses on employee benefit obligations. Transformation costs were down to -€40.2 million in 2020 vs. -€51.3 million in 2019 ( i.e. -21.6%), spread across all Caisses d’Epargne. The main institutions concerned are Caisse d’Epargne Hauts de France (-€9.0 million), Caisse d’Epargne Bretagne Pays de Loire (-€8.2 million), Caisse d’Epargne Provence Alpes Corse (-€5.9 million), and Caisse d’Epargne Rhône Alpes (-€3.3 million), for a cost of -€26.3 million, i.e. 65.5% of the total. As a result, gross operating income stood at €2.4 billion for fiscal year 2020, up +2.9% compared to 2019. The cost/income ratio improved by +1.0 point to 65.8%. Cost of risk for the Caisses d’Epargne, -€0.9 billion, more than doubled compared to 2019, to take into account the future impacts of the worsening economic environment. In the end, the cost of risk came out at 13.21% of NBI ( vs. 6.05% in 2019). Divided by loan outstandings, it stood at 30bp in December 2020, up 15bp compared to 2019. The Caisses d’Epargne contributed €1.5 billion to the Retail banking & Insurance division’s income before tax in 2020, down 22.2% compared to 2019. FINANCIAL SOLUTIONS AND EXPERTISE (SEF) The Financial Solutions & Expertise businesses continued to grow in 2020, with excellent commercial momentum with the Banque Populaire and Caisse d’Epargne networks, particularly in the first quarter. Although penalized by the lockdown periods, consumer financing stayed strong, with historic outstandings of €27.6 billion at the end of the year, up +5%. This growth, driven by personal loans, enabled it to gain market share. The sureties and financial guarantees business also had a record year, with a 16% increase in written premiums. This evolution was driven by home loan guarantees for individual customers (+18%), in line with Groupe BPCE’shome loan business and the increased penetration rate within the Banque Populaire network.

Leasing saw continued growth with the Caisse d’Epargne and Banque Populaire networks, driven by the good level in movable property leasing, with outstandings up 8% year-on-year. The Securities business was driven by high volatility in the financial markets, which led to a doubling of the number of stock market transactions compared to last year. Socfim maintained a sustained level of activity, with average outstandings up by 37% over the year. Finally, factoring showed good resilience in a very unfavorable context. Impacted by the excess liquidity of French companies, revenue factored with the Banque Populaire and Caisse

d’Epargne networks decreased by 9% in 2020. BREAKDOWN OF 2020 SEF NBI BY BUSINESS LINE

Other 10 %

BPCE Financement 23 %

Eurotitres 9 %

€ 1,134 m

BPCE Factor & MF 12 %

BPCE Lease 22 %

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CEGC 24 %

The Financial Solutions and Expertise division’s net banking income rose by 2.2% to reach €1,134 millionat the end of 2020, driven by real estate development financing (+26%), securities custody services (+8%), sureties (mainly real estate loan guarantees) (sureties +6%), as well as leasing (+2%), particularly equipment leasing. At the same time, the measures taken at the start of the crisis and maintained throughout the year allowed for strict control of expenses, down by 3.9% compared to 2019. Gross operating income therefore benefited from a positive scissors effect and rose by 10.2%, with a cost/income ratio up by 3.4 pts. The cost of risk amounted to €117m, an increase of 48.4%, reflecting prudent risk management in the context of the health crisis. As a result, pre-tax income increased by 2.5% compared to 2019 and stood at €413 million at the end of 2020. INSURANCE The year was marked by the Covid-19 pandemic, with the consequence of a significant slowdown in commercial activity during the first lockdown, between March and May. With €8.1 billion in premiums in direct business, gross inflows from life insurance fell by 19% compared to 2019. Unit-linked premiums amounted to €2.9 billion and represented 35.4% of total gross inflows, an increase of five points compared to 2019 and one point higher than the Market at the end of December. Gross inflows invested in the "Euro" fund decreased by 25% to €5.3 billion.

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

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE