BPCE - 2020 Universal Registration Document

4

ACTIVITIES AND FINANCIAL INFORMATIONS 2020

GROUPE BPCE FINANCIAL DATA

An additional provision following the announcement of the proposed disposal of the subsidiary H2O was recorded in the fourth quarter on the basis of the estimated capital loss, bringing the total annual impact recorded in losses on other assets to -€47.6 million. WEALTH MANAGEMENT The Wealth Management activity recorded net inflows of €919 million in 2020, underpinned mainly by strong activity in the private B-to-B segment thanks to the networks and significant institutional inflows in Luxembourg. Assets under management stood at €30.7 billion, up 1% year-on-year, supported by inflows that more than offset the negative market effect (very unfavorablemarket effect recorded in the first quarter). At the same time, outstanding loans increased by 6% to reach €2.2 billion, with an increase concentrated in France. In 2020, net banking income totaled €177.8 million, up 19.5% (+€29.0 million) on 2019. This increase can be attributed mainly to strong performancefees, momentumon transaction fees and fees on assets under management, and the resilient financial margin.

Expenses amounted to €153.7 million,down by 2.4% compared to 2019, reflecting the actions implemented to control costs.

EMPLOYEE SAVINGS Assets under management at the end of December 2020 amounted to €28.2 billion, up by €1.2 billion or 4% compared to December 31, 2019, underpinned by a positive market effect (+0.7 billion) and a favorable investment effect (+0.5 billion). Average assets under management amounted to €25.8 billion over the year, down (-10%) year-on-year, mainly penalized by the loss of Sanofi assets at the end of 2019. On December 31, 2020, net banking income at €99.1 million was down by €1.1 million, or -1,1% compared to December 31, 2019, due to the transfer of Car Lease remote sales activities to BPCE Lease from June 2020, partially offset by the increase in net subscription fees (savers’ arbitrage). Expenses amounted to €77 million and were down by €5.9 million or 7,1% compared to December 31, 2019, mainly with lower net IT expenses and lower operating expenses (impact of Covid-19 and cost control efforts).

Corporate & Investment Banking (CIB) 4.3.6

Corporate & Investment Banking

Chg. 2020/2019

2020

2019

€m

%

in millions of euros

Net banking income Operating expenses

2,803

3,337

(533)

(16.0%) (6.1%) (36.1%) 7.9 pts

(2,099)

(2,235) 1,102 67.0%

136

Gross operating income

704

(397)

Cost/income ratio

74.9%

--

Cost of risk

(819)

(312)

(507)

N/S

Share in income of equity-accounted associates

10

10

(1) 15

(5.1%)

Gains or losses on other assets

(15) 786

(100.0%)

Income before tax

(105)

(890)

N/S

In 2020, Corporate & Investment Banking’s net banking income totaled €2,803 million, down 15.3% compared to 2019 at constant exchange rates (-16.0% at current exchange rates). Capital market revenues totaled €1,085 million in 2020, a decrease of 27.9% compared with 2019 at constant exchange rates. Revenues from Fixed Income, Forex, Credit, Commodities, and Treasury activities stood at €1,114 million in 2020, stable on 2019 at constant exchange rates. The following changes were observed in each segment: income from the Fixed Income and Foreign Exchange • activities was up by 2.5% to €325 million, with Fixed Income activities down by 9.4% to €183 million, due to a slowdown in commercial activity, with interest rates remaining low and foreign exchange activities up sharply by 23.5% to €142 million in a context of high currency volatility over the first four months of the year, which generated strong customer demand for hedging;

revenues from Credit activities were down by 9.1% compared • to 2019 at €304 million, penalized by a slowdown in the securitization market in the first half, its recovery in the second half making it possible to minimize the downturn compared to 2019; revenues from Repo activities, now split 50/50 between Fixed • Income and Equity, amounted to €314 million, down 21% compared to 2019, with business slowing down particularly in the second half following the implementation of the new TRTLO operation by the Central Bank in June offering abundant liquidity. With negative revenues of €263 million in 2020, the Equity business lines suffered from extreme market conditions in the first half of the year, with very high volatility in the equity markets, and changes in dividend payout policies (cancellations) that strongly affected the exposure of the Equity Derivatives business line.

226

UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

www.groupebpce.com