BPCE - 2020 Universal Registration Document

BPCE MANAGEMENT REPORT FINANCIAL REPORT

BPCE INCOME STATEMENT

Change 2020/2019

2020

2019

in millions of euros

(in millions of euros)

(in %)

Net banking income Operating expenses

433

930

(497)

(53%) +21%

(432)

(356)

(76)

Gross operating income

1 0

574

(573)

(100%) (100%) +293% (680%)

Cost of risk

(2)

+2

Net gains or losses on long-term investments

(1,341) (1,340)

(341)

(1,000) (1,571)

Income before tax

231 146

Income tax

267

+121

+83%

Funding/reversal of fund for general banking risks and regulated provisions

0

65

(65)

(1)

NET INCOME

(1,073)

442

(1,515)

(343%)

The result for 2020 amounted to -€1,073 million, down by €1,515 million compared to 2019, mainly due to the impairment of consolidated investments. Gross operating income of €1 million, losses on fixed assets of -€1,341 million and tax income of €267 million.

NET BANKING INCOME

Change 2020/2019

2020

2019

in millions of euros

(in millions of euros)

(in %)

Financial Management

(292)

(40) 210 760

(252) +111 (606) +250 (497)

+630%

Financial Solutions & Expertise

321 154 250 433

+53% (80%)

Holding company Central institution

0

NA

NET BANKING INCOME

930

(53%)

5

In 2020, BPCE’s net banking income totaled €433 million, down by €497 million compared with 2019. BPCE is responsible for ensuring the Group’s liquidity and capital adequacy by guaranteeing that the regulatory ratios are met. These activities are part of the Financial Management business line, which delivered net banking income of -€292 million in 2020, a decrease of €252 million compared with 2019. This change is due to an income of €345 million recorded in 2019 in respect of the Natixis CIB exposures run-off activity (formerly GAPCE). In 2020, an income of €106 million was recorded in NBI, following the rebilling of financial management expenses for the Group’s institutions. The net banking income of the Financial Solutions & Expertise business was €321 million. It includes dividends received from

the subsidiaries BPCE Factor, BPCE Lease, BPCE Financement, CEGC, Socfim and the net banking income from the securities custody activity. This activity has been housed within BPCE since the end of March 2019. Net banking income from the holding company totaled €154 million, down €606 million over the period. As part of the health crisis and the ECB’s recommendations, the amount of dividends received by BPCE in 2020 was significantly reduced. The net banking income of the central institution business amounted to €250 million. It follows the rebilling of “central institution” activities (listed in the French Monetary and Financial Code), now presented in NBI.

OPERATING EXPENSES

Change 2020/2019

2020

2019

in millions of euros

(in millions of euros)

(in %)

Payroll costs

(381) (256) (637) (121) (311) (432) 516

(351) (293) (644) (125) (231) (356) 519

(30) +37

+9%

Other expenses

(13%) (1%) (1%) (3%) +35% +21%

Gross operating expenses

+7 (3) +4

Rebilled expenses

Net operating expenses

Charges from exceptional projects

(80) (76)

OPERATING EXPENSES

COST OF RISK Loans and advances due from banks mainly relate to institutions benefiting from the guarantee and solidarity system, which explains the non-materiality of the cost of risk in BPCE SA parent company financial statements.

Operating expenses amounted to -€432 million in 2020, an increase of €76 million compared to 2019, mainly due to the continuation of the Group’s transformation projects.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE