BPCE - 2020 Universal Registration Document

NON-FINANCIAL PERFORMANCE STATEMENT

BEING A RESPONSIBLE GROUP IN ITS INTERNAL AND EXTERNAL PRACTICES

HOW BPCE FINANCEMENT MANAGES THE FINANCIAL VULNERABILITY OF ITS CUSTOMERS As a finance company and subsidiary of BPCE SA, BPCE Financement manages consumer loans (personal loans and revolving loans) for customers of the Banques Populaires and the Caisses d’Epargne. As the third largest player in France (with 2.8 million customers), BPCE Financement has set up a specific process for managing customers identified as vulnerable by a predictive score. The detection triggers contact by sending a paper letter inviting the customer to call BPCE Financement back, so that a telephone interview can be scheduledwith the dedicated customer relations center, to provide an update on their situation. The interview makes it possible to rule out or confirm the customer’s vulnerable situation and to propose appropriate solutions. (deferral of monthly payment, declaration of loss to insurance, adjustment of the BPCE Financement receivable, change in the date of withdrawal). If necessary, BPCE Financement can also inform the customer of the existence of third-party non-profit organizations that can support it.

SUPPORTING PERSONAL AND PROFESSIONAL MICROLOANS IN PARTNERSHIP WITH SUPPORT NETWORKS Partnerships with the networks

amounts (the Lagarde Act should have a capital A of July 1, 2010 caps microloans at €46,000), the Group’s market share is the same. These loans qualify as solidarity-based loans because their approval is not based on standard bank scoring criteria, particularly for project sponsors who are out of work or cannot put up personal collateral. Financing is secured by appropriate financial support: interest-free loans, delegated public guarantees, reinforced advantages for specific groups (women, young people, residents of the city’s political districts, etc.). Project leaders receive support provided by a solidarity financier in partnership with a Banque Populaire or Caisse d’Epargne.

In 2020, Groupe BPCE remained the number one bank in France in personal and professional microloans with support, with nearly one-third of the market (1) . It confirms its position as the leading financier of the three major microloan support networks with €118.7 million disbursed or refinanced to 13,737 beneficiaries, thus testifying to very resilient operations, despite Covid-19. For other solidarity-based loans, which are not considered microloans due to their higher

SUMMARY OF MICROLOANS (2) WITH GROUP SUPPORT

Change 2019-2020 (in %)

New loans in 2020

New loans in 2019

New loans in 2018

Type of loan in thousands of euros

Number

Amount

Number

Amount

Number

Amount

Number

Amount

Personal banking microloans Personal non-banking microloans

3,621 1,944

10,859

4,988 1,545

14,504

5,361 1,787

14,966

(27%)

(25%)

7,060

5,138

5,705

26% 37%

Secured professional banking microloans, o/w guaranteed by France Active Professional non-banking microloans

2,110 6,062

79,104 21,727

2,242 6,514

74,050 24,516

2,407 5,570

71,749 20,442

(6%) (7%)

7%

(11%)

GROUPE BPCE TOTAL (CAISSES D’EPARGNE, BANQUES POPULAIRES, CRÉDIT COOPÉRATIF)

13,737

118,750

15,289

118,208

15,125

112,861

(10%)

0%

“NACRE” (NOUVEL ACCOMPAGNEMENT À LA CRÉATION ET À LA REPRISE D’ENTREPRISE OR NEW SUPPORT FOR THE CREATION AND TAKEOVER OF A BUSINESS) TOP-UP LOANS, SUPERVISED AT THE NATIONAL LEVEL BY BPI FRANCE

New loans in 2020

New loans in 2019

New loans in 2018

Change 2019-2020

Issuing network in thousands of euros

Number Payments

Number Payments

Number Payments

Number

Payment

GROUPE BPCE TOTAL

287

9,328

547

20,440

1,109

40,019

(48%)

(54%)

(1) Sources: Report by the Fonds de cohésion sociale (social cohesion fund), Adie reporting, France Active, Initiative France and France Active disclosures on NACRE financing. (2) Microloans: loans issued to borrowers in vulnerable situations covered by a guarantee and supported by a public interest organization. Caps on funds issued as established by the Lagarde Act of July 1, 2010.

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UNIVERSAL REGISTRATION DOCUMENT 2020 | GROUPE BPCE

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