BPCE - 2020 Universal Registration Document

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ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

PAYMENTS Activity in 2020, penalized by the health crisis linked to Covid-19, appears to be mixed, the various lockdowns having impacted consumption. The resilience of the Payments business is mainly illustrated by: (i) the contained drop in Natixis Payment Solutions’ legacy e-payment activities of 4.5% in the volume of card payments (after the 19% drop in Q2 2020 compared to Q2 2019); (ii) the limited decline in Natixis Intertitres’ legacy restaurant voucher issuance business (-2.6% of the volume of securities issued compared to 2019), which continuedwith the ramp-up of digitization and accelerated its commercial development (+13% more beneficiaries compared to 2019), while the other entities (Titres Cadeaux, Comitéo, Lakooz) showed good resistance, allowing a decline in the overall volume of business issued by the Prepaid & Issuing Business Unit at -3%; (iii) the outperformance of Merchant Solutions Business Unit's e-commerce fintech PayPlug, which recorded growth of 125.2% in its business volume due to its strong commercial development. Revenues in Payments (€431 million) were up by 1.9% (+€8 million) compared to 2019, with growth mainly driven by historical electronic payment activities as well as the contribution of Fintechs of the Merchant Solutions BU. For the Prepaid & Issuing BU, the good performance of the Gifts business was more than offset by NIT (Natixis Intertitres) revenues, which were penalized by the closure of acceptance sites. ​ Expenses in the Payments division, at €391 million, were up by 5.7% (+€21 million), in line with the staff and IT investments made, combined with actions taken to control costs. Overall, gross operating income decreased 25.0% to €39 million. Income before tax came to €42 million, down 16.8%. Oney Bank’s pre-tax income stood at €61 million in 2020. The resilience of its activities in a difficult environment was attributable to the split-payment dynamic in France, the development of partnerships, the gradual increase in activities deployed in recent years, and very good control of expenses. The cost of risk remained contained in 2020. BANQUE PALATINE Banque Palatine contributed -€25 million to the division’s income before tax, down by 25% compared to 2019. Net banking income down by 1.7%, and slightly lower operating expenses impacted by IT migration costs, led to a decline in gross operating income, down -10% to €76 million. OTHER NETWORKS ONEY BANK GROUP

CHANGE IN LIFE INSURANCE ASSETS UNDER MANAGEMENT, EXCLUDING OUTSTANDINGS RELATED TO CNP (in billions of euros)

+ 0.8

+ 2.3

+ 1.3

68.4

72.7

Assets under management at 12/31/2019

Net inflows € Net inflows Unit-linked

Market and other effects

Assets under management at 12/31/2020

At €1,053 million, contributions to Personal Protection and Payment Protection Insurance continued to increase (+6%). Contributions to Personal Protection for individual customers were up by 10%. Payment Protection Insurance was up 5%, with no material impact from the Bourquin amendment or the health crisis. In non-life insurance, the portfolio grew by 5% year-on-year to reach 6.4 million contracts. Gross sales decreased by 2% due to the health crisis and the impact of lockdowns, yet benefited from the success of the recovery plan put in place in May 2020. Earned premiums increased by 5% over the year, with similar growth in activity on both networks, at €1,654 million. Net banking income for the Insurance business lines totaled €901 million, up 6.5% compared with 2019, resulting from: growth of 11% in NBI in personal insurance, which benefited • from the 6% increase in outstandings and was little impacted by the health crisis and the decline in financial markets. The growth in net revenues also attributable to the resistance of the Personal Protection Insurance and Payment Protection Insurance, with a drop in the claims expense for ADE (in connection with the update of final accounts for the previous year) and deterioration in Protection insurance claims due to work cessation guarantees; a 3% increase in property & casualty insurance with a • decrease in the claims expense for individual customer products on account of the two lockdowns, in particular in the Auto segment. The overall combined ratio stood at 89.2%, an improvement compared to 2019 (89.6%); the exceptional contribution to the Solidarity Fund set up by • the government of €14 million. Operating expenses amounted to €491 million, up by 2.5%. This change reflects the implementationof the New Dimension plan: support for business growth and implementation of strategic projects. Gross operating income rose 11.6% to €410 million. Net income of associates was impacted by: the payment default by Lebanon: an impairment loss of • €23 millionwas recorded on bank-insurer ADIR, which is 34% owned; a contribution from BPCE IARD of €5 million (compared to • €7 million in 2019), mainly due to the deterioration of claims expenses for operating loss cover for restaurant owners following the health crisis.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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