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Bpce: Q4-20 and 2020 results of Groupe BPCE

BPCE
·49-min read

Paris, February 11, 2021

Q4-20 and 2020 results

Solid results, strong business momentum, proven ability to support our customers
and absorb the impact of the crisis

Project to simplify the group organization to serve the development of our businesses

2020: net banking income of €22.5bn and reported net income (Group share) of €1,610m (-46.9%)
including a resolutely prudent provisioning policy

Underlying net banking income and net income1 (Group share) of €22.5bn and €2.1bn respectively

Q4-20 reported figures: net banking income of €6.3bn, up 2.9%, gross operating income of €1.9bn, up 15.8%,
and net income (Group share) down 20.9% to €624 million.

Retail Banking & Insurance: revenues up 2.6%2 and gross operating income up 6.7%2 in 2020, 4%2 growth in revenues and 11.9%2 increase in gross operating income in Q4-20, thanks to a very good level of business activity and strict cost control

  • Loan outstandings: up 11% year-on-year, of which +8% for residential mortgages and +7% for equipment loans

  • Insurance: net revenue growth of 8% in 2020, with a 5% increase in earned premiums for P&C insurance

  • Financial Solutions & Expertise: gross operating income up 10% in 2020 driven, in particular, by Leasing, Sureties, and Consumer credit

Asset & Wealth Management: €1,135bn in assets under management at end-December 2020

  • Net inflows of €11bn in Q4-20 driven notably by Mirova's expertise in ESG and the Equity and FI strategies in the US

  • Q4-20: limited 9.6% year-on-year decline in net banking income and up 16% excluding H20 AM

Corporate & Investment Banking: back to business growth in Q4-20 with a 2% year-on-year increase in net revenues at constant exchange rates

  • FIC-T revenues up by 17% QoQ and 7% QoQ for Global Finance activities in Q4-20

  • M&A revenues up 6% in 2020 YoY

  • Income before tax of €189 million in Q4-20, up 2.4% YoY

Tight control of operating expenses: 2.8% decrease in Q4-20 and 2.9%3 in 2020

  • Positive jaws effect in the Banque Populaire and Caisse d'Epargne networks in Q4-20 and in 2020

  • Cost/income ratio enhanced by 4.5 pp in Q4-20 YoY in the Corporate & Investment Banking business

Resolutely prudent provisioning policy

  • Provisioning level of €923m in Q4-20, at 49 bps, including around 65% provision for future risks (S1/S2)

  • Stability of occurred provision (S3) in 2020 in Retail Banking & Insurance vs. 2019

  • Cost of risk for the Group at €3bn in 2020, at 41 bps, of which 45% provisioning for future risks (S1/S2)

A “best in class” capital position among European G-SIBs

  • CET1 ratio4 of 16.0% at end-December 2020, 520 bps above the threshold for triggering the MDA

  • TLAC4 and MREL4 stood at 23.6% and 30.2% respectively at end-December 2020

Determined and recognized commitments to society

  • Significant increase in Groupe BPCE's rating awarded by Vigeo Eiris, up from “Robust” to “Advanced”

  • For its first assessment by CDP, Groupe BPCE is awarded a rating of A-, one of the highest in the banking sector.

Groupe BPCE announces a project5 of simplification and evolution of its organization

  • The aim of the project is to enhance agility, strategic flexibility and efficiency for our businesses

  • To accelerate its development, Groupe BPCE filed a public tender offer on Natixis’ shares, followed by a potential mandatory squeeze-out


Laurent Mignon, Chairman of the Management Board of Groupe BPCE, said: “All our teams, in all the companies within our Group, fully assumed their responsibilities this year and lived up to the exceptional situation we have all lived through. This makes me extremely proud and I would like to thank them for everything they have done. It has been remarkable how we have mobilized our resources massively in support of our customers with the rapid implementation of the full range of support measures, such as moratoriums, state-guaranteed loans, or specific support for the healthcare sector. The Group's results are solid, fully demonstrating the effectiveness of our decentralized and diversified business model. The Group has also a robust financial position, prudent regarding forthcoming risks and fully capable for preparing the future and facing the challenges that lie ahead. As we are preparing our upcoming strategic plan, the simplification project of our organization underpins our new ambitions to continue financing the economy, serve our customers, and our employees The strength of our Group is also based on our cooperative model, very close to the territories, combining efficiency with a long-term vision. We are, and we will remain, deeply committed to continuing our support for our customers’ projects, to serving society in general and supporting recovery of our economy.”

1 See note on methodology and excluding the Coface contribution 2 Pro forma, see note on methodology 3 Excluding direct regulatory costs 4 Estimate at end-December 2020 5 This change would be subject to approval by the relevant regulatory authorities


The quarterly financial statements of Groupe BPCE for the period ended December 31, 2020, approved by the Management Board at a meeting convened on February 9, 2020, were verified and reviewed by the Supervisory Board, chaired by Pierre Valentin, at a meeting convened on February 11, 2020

Groupe BPCE:

Restated figures
€m

Q4-20

Q4-19

% Change

2020

2019

% Change

Net banking income

6,303

6,123

2.9%

22,540

23,593

(4.5)%

Operating expenses

(4,356)

(4,441)

(1.9)%

(16,644)

(17,065)

(2.5)%

o/w expenses excluding SRF

(16,244)

(16,689)

(2.7)%

Gross operating income

1,947

1,682

15.8%

5,896

6,528

(9.7)%

Cost of risk

(924)

(426)

x2.2

(2,998)

(1,395)

x2.2

Gains or losses on other assets

(22)

24

ns

(144)

(1)

ns

Income before tax

1,069

1,359

(21.4)%

2,982

5,338

(44.1)%

Income tax

(318)

(382)

(16.8)%

(1,045)

(1,748)

(40.2)%

Non-controlling interests

(123)

(196)

(37.3)%

(191)

(604)

(68.3)%

Net income – Group share excl. Coface net contribution

628

780

(19.6)%

1,745

2,986

(41.6)%

Coface net contribution

(5)

9

(136)

44

Net income – Group share incl. Coface net contribution

624

789

(20.9)%

1,610

3,030

(46.9)%

Coface: change in reporting method as at March 31, 2020
Following the divestment announced on February 25, 2020 of a 29.5% stake in Coface, the contribution made by this subsidiary to the income statement is presented on a separate line: ‘Coface net contribution.’

Exceptional items

€m

Q4-20

Q4-19

2020

2019

Revaluation of assets associated with
DSN denominated in foreign currencies

Net banking income

Corporate center

3

2

7

17

Contribution to the insurance guarantee fund

Net banking income

Insurance & Corporate center

(16)

Transformation and reorganization costs

Operating expenses / Cost of risk /

Business lines & Corporate center

(183)

(172)

(566)

(565)

Gains or losses on other assets / Goodwill

Impact of Lebanon default on ADIR insurance

Associates

Insurance

(9)

(23)

Disposals and impairments

Associates / Gains or losses on other assets

Business lines & Corporate center

(5)

(15)

(40)

Total impact on income before tax

(excl. Coface net contribution)

(193)

(169)

(614)

(588)

Total impact on net income – Group share

(excl. Coface net contribution)

(127)

(85)

(391)

(463)

Coface

Coface capital loss

Coface net contribution

(146)

Coface residual stake impairment

Coface net contribution

(10)

(57)

Transformation costs / Goodwill impairment

Coface net contribution

5

5

Total impact on income before tax

(10)

(4)

(203)

(4)

Total impact on net income – Group share

(7)

0

(143)

2

From an accounting standpoint, the Coface capital loss is classified under ‘Gain or loss on other assets’ and the Coface residual stake impairment is listed under ‘Share in net income of associates.’ See the annexes for the reconciliation with the accounting view.

1. Groupe BPCE, underlying performance

Underlying figures
€m

Q4-20

Q4-19

% Change

2020

2019

% Change

Net banking income

6,272

6,121

2.5%

22,516

23,576

(4.5)%

Operating expenses

(4,167)

(4,287)

(2.8)%

(16,219)

(16,634)

(2.5)%

o/w expenses excluding SRF

(15,819)

(16,257)

(2.7)%

Gross operating income

2,104

1,834

14.7%

6,297

6,942

(9.3)%

Cost of risk

(923)

(385)

x2.4

(2,992)

(1,315)

x2.3

Income before tax

1,262

1,528

(17.4)%

3,595

5,926

(39.3)%

Income tax

(348)

(440)

(20.8)%

(1,201)

(1,830)

(34.4)%

Non-controlling interests

(159)

(223)

(28.5)%

(258)

(646)

(60.0)%

Net income – Group share excl. Coface net contribution

754

865

(12.8)%

2,136

3,450

(38.1)%

Net income – Group share excl. Coface net contribution
after IFRIC 21 restatement

636

762

(16.5)%

2,136

3,450

(38.1)%

Cost/income ratio(1)

68.8%

72.2%

(3.4)pp

72.0%

70.6%

1.4pp

Unless specified to the contrary, the following financial data and related comments refer to the underlying results, i.e. results restated to exclude exceptional items, as presented on page 2. Changes express differences between Q4-20 and Q4-19, full-year 2020 and full-year 2019.

Groupe BPCE reported 2.5% growth in net banking income to 6.3 billion euros in Q4-20 and a 4.5% decrease in full-year 2020 to 22.5 billion euros.
All of the Group's business lines have been extremely active in supporting customers, as illustrated by the growth in loan outstandings in the Retail Banking & Insurance division (+11.1% in 2020) and the high volume of state-guaranteed loans distributed by the Group since the beginning of the health crisis (loans granted for a total of more than 30 billion euros).

The Retail Banking & Insurance division performed robustly in the second half of the year with an recovery in activities in Q3-20 following the first lockdown period and the imposition of less stringent health-related restrictions in Q4-20. The revenues generated by the division revenues grew by 2.6% in 2020.
In the Asset Management business, the merger between Ostrum AM and La Banque Postale AM became effective in Q4-20 and helped to bring total assets under management to more than 1,100 billion euros at the end of December 2020. In parallel with the activities of this new entity, the other affiliates continued to enjoy high margins, with a fee rate at approximately 38bps in Q4-20.
The revenues generated by the Corporate & Investment Banking division increased in Q4-20 vs. Q3-20 and are 2% higher than the level reached by Q4-19 revenues (at constant exchange rates). This result was driven by the fine performance of the Credit activities within FICT, a strong rebound for Equity in a favorable market environment, and an increased contribution to revenues from the loan portfolio in the Global Finance activity. The Investment banking/M&A businesses maintained good momentum throughout the year, including a 6% increase in M&A revenues in full-year 2020.

Operating expenses declined by 2.8% in Q4-20 and by 2.7% in full-year 2020 (excluding contributions to the Single Resolution Fund). The Banque Populaire and Caisse d'Epargne retail banking networks recorded a 2.0% year-on-year decline in their operating expenses in 2020, while the FSE division recorded a 4.0% decline in operating expenses over the same period.
The Insurance business is pursuing the development of its activities and enjoying the benefit of positive jaws effects even with the 3.9% increase in 2020 operating expenses remaining lower than growth in revenues. With regard to the Payments activity, investments to drive future growth have continued, leading to a 5.2% increase in operating expenses in full-year 2020.
Within the Asset & Wealth Management and Corporate & Investment Banking divisions, flexibility in the cost structure and strict cost control discipline led, respectively, to a 5.7% and 5.4% decline in operating expenses in full-year 2020.

In Q4-20, the cost/income ratio stood at 68.8% after restating to account for the impact of IFRIC 21, down 3.4pp year-on-year. In full-year 2020, it reached 72.0%, up 1.4pp compared with 2019.
Gross operating income rose sharply in Q4-20 to a total of 2,104 million euros (+14.7% year-on-year) but fell by 9.3% in full-year 2020 to 6,297 million euros.

The cost of risk for Groupe BPCE stood at 923 million euros in Q4-20 (x2.4 year-on-year) and at 2,992 million euros in full-year 2020, more than double the figure for 2019 (x2.3).
This increase in the cost of risk reflects the deterioration in the economic environment in 2020 and the adoption of a prudent provisioning policy in view of the more negative outlook for the economy.
The amount of provisions for performing loans rated ‘Stage 1’ or ‘Stage 2’ came to 1,358 million euros in 2020, representing 45% of the total cost of risk. The amount of provisions for occurred risks stood at 1,634 million in full-year 2020, representing 55% of the total cost of risk and an increase of 21% over the previous year.

For Groupe BPCE, the cost of risk amounted to 41 bps compared with gross customer outstandings in full-year 2020 (29bps in Q1-20, 55bps in Q2-20, 32bps in Q3-20, and 49bps in Q4-20), of which almost half (19bps) represented provisions for performing loans rated ‘Stage 1’ or ‘Stage 2’.
In 2020, the cost of risk stood at 35 bps for Retail Banking & Insurance (18bps in 2019), including 20bps for the provisioning of performing loans rated ‘Stage 1’ or ‘Stage 2’, and 126bps for the Corporate & Investment Banking division (49bps in 2019), including 20bps for the provisioning of performing loans rated ‘Stage 1’ or ‘Stage 2’.

The ratio of non-performing loans to gross loan outstandings stood at 2.5% at December 31, 2020, marginally lower than at the end of 2019.

Reported net income (Group share) in Q4-20 amounted to 624 million euros, down 20.9% compared with Q4-19. In full-year 2020, it stood at 1,610 million euros, down 46.9% year-on-year.
Underlying net income (Group share) after restating to account for the impact of IFRIC 21 and excluding the net contribution of Coface stood at 636 million euros in Q4-20 and at 2,136 million euros in full-year 2020, down 16.5% and 38.1% year-on-year respectively.

1 See note on methodology and after restating to account for the impact of IFRIC 21


2. Capital and loss-absorbing capacity

2.1 CET11 level

Groupe BPCE's CET11,2 ratio at the end of December 2020 reached an estimated level of 16.0%, compared with 15.9% at September 30, 2020. Changes for the quarter can be broken down into:

  • Retained earnings: +14bps,

  • Change in risk-weighted assets: -26bps,

  • Issuance and distribution of cooperative shares: +6bps,

  • Market impact on OCI changes: +9bps,

  • Other changes: +6bps.


At the end of December 2020, Groupe BPCE held a buffer of 520bps above the threshold for triggering the maximum distributable amount (MDA).

2.2 TLAC Ratio2

Total loss-absorbing capacity (TLAC) estimated at the end of December 2020 stands at 102.0 billion euros. The TLAC ratio, expressed as a percentage of risk-weighted assets, stood at an estimated 23.6% at the end of December 2020 (without taking account of preferred senior debt for the calculation of this ratio), well above the FSB requirements of 19.51%.

2.3 MREL Ratio

Expressed as a percentage of risks weighted assets at December 31, 2020, Groupe BPCE's subordinated MREL ratio and total MREL ratio were 23.6% (without taking account of preferred senior debt for the calculation of this ratio) and 30.2% respectively, well above the respective minimum SRB requirements of 20.4%2 and 24.9%2.

2.4 Leverage Ratio

At December 31, 2020, the estimated leverage ratio1 was 5.6%3,4.

2.5 Liquidity reserves at high levels

The Liquidity Coverage Ratio (LCR) for Groupe BPCE is well above the regulatory requirements of 100%, standing at 166% on the basis of the average of end-of-month LCRs in the 4th quarter of 2020.
The volume of liquidity reserves reached 307 billion euros at end-December 2020, representing an extremely high coverage ratio of 246% of short-term financial debts (including short-term maturities of medium-/long-term financial debt).

2.6 Medium-/long-term funding plan: approximately 28% of the 2021 plan already completed at the end of January

In 2020, Groupe BPCE raised:

  • 18.7 billion euros (excluding structured private placements and ABS), including 4.1 billion euros in senior non-preferred debt, 5.8 billion euros in senior preferred debt, and 8.8 billion euros in covered bonds,

  • 2.0 billion euros in ABS.

The size of the MLT funding plan for 2021 ranges between 22 and 25 billion euros (excluding structured private placements and ABS), including 6.7 billion euros raised at the end of January 2021 (≈ 28% of the plan) that can be broken down as follows:

  • 4 billion euros of Tier 2 and/or non-preferred senior debt (1 billion euros of non-preferred senior debt issued in January)

  • Between 7.5 and 10.5 billion euros in preferred senior debt (3.4 billion euros issued in January)

  • 10.5 billion euros in covered bonds (2.2 billion euros issued in January)

The target for ABS is 1.5 billion euros.

1 See notes on methodology 2Based on estimated TLOF and RWAs as at December 31, 2020 3 The leverage ratio would stand at 5.9% if centralized outstandings of regulated savings are excluded from the calculation of the denominator of the ratio, subject to the agreement of the ECB and following the decision dated July 13, 2018 of the General Court of the European Union 4 Deduction of Central Bank exposures from the denominator of the leverage ratio


3. RESULTS OF THE BUSINESS LINES

Unless specified to the contrary, the following financial data and related comments refer to the underlying results, i.e. results restated to exclude exceptional items, as presented on page 2. Changes express differences between Q4-20 and Q4-19, full-year 2020 and full-year 2019.

3.1 Retail Banking & Insurance

Underlying figures
€m

Q4-20

% Change

2020

% Change

Net banking income

4,275

4.0%

16,473

2.6%

Operating expenses

(2,721)

stable

(10,534)

0.5%

Gross operating income

1,555

11.9%

5,939

6.7%

Cost of risk

(746)

x2.7

(2,042)

x2

Income before tax
after IFRIC 21 restatement

781

(28.6)%

3,939

(15.2)%

Cost/income ratio(1)

64.4%

(2.5)pp

63.9%

(1.4)pp

Loan outstandings enjoyed buoyant year-on-year growth of 11.1%, reaching 613 billion euros at the end of December 2020, including 8.1% growth in residential mortgages and an increase of 2.2% and 7.0% respectively for consumer loans and equipment loans.
At the end of December 2020, customer deposits & savings (excluding centralized regulated savings) amounted to 522 billion euros (+13.9%) while sight deposits were up 28.1% year-on-year.

Net banking income generated by the Retail Banking & Insurance division rose by 4.0% in Q4-20 to stand at 4,275 million euros, and increased by 2.6% in full-year 2020 to 16,473 million euros.
In 2020, the Banque Populaire and Caisse d'Epargne retail banking networks recorded a 0.9% increase in revenues (excluding provisions for home-purchase savings schemes), including a robust recovery in the second half of the year. The Financial Solutions & Expertise and Payments divisions also benefited from the recovery in business activities as of June, with revenue growth of 2.3% and 1.9% respectively in full-year 2020.
The Insurance division is continuing to expand its business with the networks, with revenues up 8.1% year-on-year in full-year 2020.

Operating expenses totaled 2,721 million euros in Q4-20, stable year-on-year. They also remained virtually stable in full-year 2020 at 10,534 million euros; this figure includes a reduction in operating expenses of 2.0% for the Banque Populaire and Caisse d'Epargne retail banking networks and a reduction of 4.0% for Financial Solutions & Expertise. The Insurance and Payments businesses saw their operating expenses increase by 3.9% and 5.2% respectively in 2020 compared with full-year 2019.
The cost/income ratio (after restating to account for the impact of IFRIC 21) saw a 2.5pp year-on-year improvement in Q4-20 to 64.4%, and a 1.4pp improvement in full-year 2020 taking the ratio to 63.9%.

The division's gross operating income increased by 11.9% in Q4-20 to 1,555 million euros and by 6.7% to 5,939 million euros in full-year 2020, reflecting the good performance of the business lines and the impact of strict cost control.

The deterioration in the economic environment in 2020 and uncertainties about the outlook in 2021 call for the adoption of a prudent provisioning policy. The cost of risk doubled in 2020, reaching 2,042 million euros. In Q4-20, it stood at 746 million euros, i.e. 2.7 times its level in Q4-19. The cost of risk in full-year 2020 can be broken down as follows: 828 million euros for the Banque Populaire network, 914 million euros for the Caisse d'Epargne network, 117 million euros for the activities pursued by FSE, 85 million euros for Oney Bank, and 100 million euros for Banque Palatine.

For the division as a whole, income before tax (after restating to account for the impact of IFRIC 21) amounted to 781 million euros in Q4-20, down 28.6% year-on-year. In full-year 2020, income before tax declined by 15.2% year-on-year to 3,939 million euros.

1 See note on methodology and after restating to account for the impact of IFRIC 21

3.1.1 Banque Populaire retail banking network
The Banque Populaire network comprises the 14 Banques Populaires, including CASDEN Banque Populaire and Crédit Coopératif and their subsidiaries, Crédit Maritime Mutuel, and the Mutual Guarantee Companies.

Underlying figures
€m

Q4-20

% Change

2020

% Change

Net banking income

1,672

5.2%

6,315

0.2%

Operating expenses

(1,046)

0.8%

(4,138)

(1.4)%

Gross operating income

625

13.4%

2,177

3.2%

Cost of risk

(309)

x2.4

(828)

98.8%

Income before tax
after IFRIC 21 restatement

305

(26.9)%

1,377

(20.3)%

Cost/income ratio(1)

63.3%

(2.6)pp

65.5%

(1.0)pp

Loan outstandings rose by 15.5% year-on-year to 260 billion euros at the end of December 2020. Customer deposits & savings increased by 12.0% year-on-year to 323 billion euros at the end of December 2020 (+14.6% for on-balance sheet savings & deposits excluding centralized regulated savings).

In Q4-20, net banking income stood at 1,672 million euros, up 5.2% compared with the same period last year. In full-year 2020, it remained virtually stable year-on-year at 6,315 million euros. If provisions for home-purchase savings schemes are excluded, it increased by 0.7% to 6,325 million euros, including a 3.3% increase in net interest income to 3,713 million euros and a 3.4% decline in commissions to 2,532 million euros.
Operating expenses increased by 0.8% in Q4-20. In full-year 2020, operating expenses fell by 1.4%, resulting in a 1.0pp improvement to 65.5% in the cost/income ratio.

The cost of risk stood at 309 million euros in Q4-20 (x2.4 year-on-year) and at 828 million euros in 2020 (x2) owing to the adoption of a prudent forward-looking provisioning policy. Income before tax (after restating to account for the impact of IFRIC 21) was down 26.9% to 305 million euros in Q4-20 and down by 20.3% to 1,377 million euros in full-year 2020.

3.1.2 Caisse d'Epargne retail banking network
The Caisse d’Epargne network comprises 15 individual Caisses d’Epargne along with their subsidiaries.

Underlying figures
€m

Q4-20

% Change

2020

% Change

Net banking income

1,767

4.3%

6,917

stable

Operating expenses

(1,165)

(0.5)%

(4,436)

(2.5)%

Gross operating income

603

14.8%

2,481

4.6%

Cost of risk

(354)

x3.9

(914)

x2.2

Income before tax
after IFRIC 21 restatement

235

(44.4)%

1,577

(19.5)%

Cost/income ratio(1)

66.6%

(3.1)pp

64.1%

(1.6)pp

Loan outstandings rose by 8.5% year-on-year to 316 billion euros at the end of December 2020 while customer deposits & savings enjoyed an 8.4% year-on-year increase to 477 billion euros (+13.8% for on-balance sheet deposits & savings excluding centralized regulated savings).

Net banking income enjoyed 4.3% year-on-year growth in Q4-20 to reach 1,767 million euros and remained stable in full-year 2020 at 6,917 million euros. If provisions for home-purchase savings schemes are excluded, net banking income grew by 1.2% in 2020 to a total of 6,942 million euros, including a 0.6% increase in net interest income to 3,814 million euros and a 1.1% rise in commissions to 3,194 million euros.
Operating expenses saw a 0.5% year-on-year decline in Q4-20 and a 2.5% decrease in full-year 2020. The cost/income ratio (after restating to account for the impact of IFRIC 21) improved by 3.1pp in Q4-20 and by 1.6pp in 2020 overall to reach 66.6% and 64.1% respectively. As a result, gross operating income increased by 14.8% in Q4-20 to 603 million euros and by 4.6% to 2,481 million euros in 2020.

The cost of risk amounted to 354 million euros in Q4-20 (x3.9) and 914 million euros in 2020, more than double the figure for 2019 (x2.2). This increase takes account of the future impacts of the downturn in the economic environment.
Income before tax decreased by 44.4% in Q4-20 to 235 million euros and by 19.5% in full-year 2020 to 1,577 million euros.

1 See note on methodology and after restating to account for the impact of IFRIC 21

3.1.3 Financial Solutions & Expertise

Underlying figures (pro forma)(1)
€m

Q4-20

% Change

2020

% Change

Net banking income

300

1.5 %

1,135

2.3%

Operating expenses

(153)

(8.9) %

(599)

(4.0)%

Gross operating income

148

15.1 %

536

10.3%

Cost of risk

(32)

91.9%

(117)

48.4%

Income before tax
after IFRIC 21 restatement

114

2.7 %

418

2.7%

Cost/income ratio(1)

51.3 %

(5.7) pp

52.7%

(3.4)pp

The net banking income generated by the Financial Solutions & Expertise division rose by 1.5% in Q4-20 to 300 million euros and by 2.3% in full-year 2020 to 1,135 million euros, reflecting the positive rebound in business activities since June 2020 and the division’s good performance in the 4th quarter despite the second lockdown period.

Good commercial momentum in the Consumer credit segment resulted in enhanced market share and made Groupe BPCE one of the leading banking players in France in this business area.
In the Sureties & financial guarantees segment, gross premiums written were up 18% year-on-year in 2020 in the area of residential mortgage guarantees.
The Securities services segment enjoyed record-breaking levels of business with a significant increase in the volume of equity market transactions, leading to a 113% increase in the volume of transactions handled in full-year 2020 compared with 2019.
In Leasing, new equipment leasing business grew by 1% in 2020, including a sharp 10% recovery in Q4-20.
In the Factoring segment, business in the Banque Populaire and Caisse d'Épargne retail banking networks was depressed by the economic slowdown and factored sales in 2020 declined by 9%.

Operating expenses remained under tight control with a year-on-year decrease of 8.9% in Q4-20 and of 4.0% in full-year 2020 taking expenses to 153 million euros and 599 million euros respectively. This resulted in a 3.4pp decline in the cost/income ratio to 52.7% in 2020. Gross operating income rose sharply in Q4-20, by 15.1% year-on-year to 148 million euros. In full-year 2020, it was also up sharply by 10.3% year-on-year to 536 million euros.

The cost of risk increased by 48.4% in 2020 compared with 2019, to 117 million euros.

Income before tax stood at 418 million in full-year 2020, up 2.7% compared with 2019. Restated to account for the impact of IFRIC 21, it rose by 2.7% in Q4-20 to 114 million euros.

3.1.4 Insurance
The results presented below concern the Insurance division of Natixis. Figures specifying the contribution to Groupe BPCE are different from those reported by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com

Underlying figures(2)
€m

Q4-20

% Change

2020

% Change

Net banking income

232

7.6%

915

8.1%

Operating expenses

(123)

0.5%

(491)

3.9%

Gross operating income

114

17.7%

424

13.4%

Income before tax
after IFRIC 21 restatement

109

17.6%

430

12.1%

Cost/income ratio(1)

55.3%

(3.5)pp

53.6%

(2.2)pp

Net banking income rose by 7.6% in Q4-20 to reach 232 million euros and by 8.1% in full-year 2020 to a total of 915 million euros.

Premiums2 declined overall in 2020 to 10.8 billion euros, with a marked contraction in life and personal protection insurance (-17%) offset by continued growth in property and casualty insurance (+5%).

Assets under management2 came to 72.7 billion euros at the end of December 2020; since the end of 2019, they have increased by 6%, with net inflows of €1.3 billion in euro funds and €2.3 billion in unit-linked products.
Unit-linked funds accounted for 27% of assets under management at the end of 2020 and for 35% of gross inflows in full-year 2020 compared with 31% in full-year 2019.
In P&C insurance, the client equipment rate for the Banque Populaire network reached 27.9% (+1.3 pp year-on-year) while the client equipment rate for the Caisse d'Epargne network stood at 30.6% (+0.7pp year-on-year).

Operating expenses increased by 3.9% in full-year 2020 and were virtually stable in Q4-20 at 123 million euros. The cost/ income ratio improved by 3.5pp in Q4-20 to 55.3% and by 2.2pp to 53.6% in 2020. Gross operating income rose by 17.7% in Q4-20 and by 13.4% in full-year 2020 to 114 million euros and 424 million euros respectively.

Income before tax (restated to account for the impact of IFRIC 21) came to 109 million euros in Q4-20 (+17.6%) and to 430 million euros in full-year 2020 (+12.1%).

1 See notes on methodology and after restating to account for IFRIC 21 2 Excluding the reinsurance agreement with CNP

3.1.5 Payments
The results presented below are those achieved by Natixis' Payments division. Figures specifying the contribution to Groupe BPCE are different from those reported by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com

Underlying figures
€m

Q4-20

% Change

2020

% Change

Net banking income

115

3.3%

431

1.9%

Operating expenses

(100)

7.5%

(384)

5.2%

Gross operating income

14

(19.0)%

46

(18.8)%

Income before tax
after IFRIC 21 restatement

15

(14.0)%

49

(11.0)%

Despite the two lockdown periods, net banking income rose by 3.3% in Q4-20 to 115 million euros, and by 1.9% in full-year 2020 to 431 million euros.

In the Payment Processing & Services business, the number of card transactions declined slightly compared with 2019, with a share of contactless payments exceeding 40% in Q4-20.
In the Merchant Solutions segment, PayPlug benefited from its positioning with customers seeking to diversify their distribution channels towards digital solutions and increased its business volume by a factor of 2.3 year-on-year in 2020, driven by a considerably faster pace of business growth with Groupe BPCE’s retail banking networks.

Operating expenses rose by 5.2% in 2020 year-on-year and by 7.5% in Q4-20. Gross operating income fell by 19.0% in Q4-20 and by 18.8% in full-year 2020.

Income before tax stood at 15 million euros in Q4-20, down 14.0% and came to 49 million euros in 2020, down 11.0% year-on-year.

3.1.6 Oney Bank

Underlying figures
€m

Q4-20

% Change

2020

Net banking income

108

(8.1)%

435

Operating expenses

(74)

(7.5)%

(288)

Gross operating income

33

(9.5)%

147

Cost of risk

(21)

(0.8)%

(85)

Income before tax
after IFRIC 21 restatement

12

(23.2)%

61

Cost/income ratio(1)

69.2%

0.5pp

66.2%

Despite the adverse business environment, Oney Bank recorded a slight +0.6% increase to 3,048 million euros in its level of new loan production compared with full-year 2019. This result can be broken down as follows: 45% in split payment solutions (up 40% year-on-year), 36% in assigned credit, 12% in revolving credit, and 7% in personal loans.

1 See note on methodology and after restating to account for the impact of IFRIC 21

3.1.7 Bank Palatine

Loan outstandings increased by 16.1% compared with end-2019, reflecting the bank’s effort to support the real economy.

In full-year 2020, net banking income totaled 325 million euros, down 1.7% year-on-year while operating expenses rose by a marginal 0.5%.

Gross operating income in 2020 declined by 4.9% year-on-year to 127 million euros.

The cost of risk amounted to 100 million euros in 2020, reflecting a year-on-year increase of 104.6% due to the economic crisis and an allocation to IFRS 9 provisions on performing loans to reflect the future impact of the downturn in the economic environment.

Income before tax decreased by 71.7% in 2020 to 26 million euros.

1 See note on methodology and after restating to account for the impact of IFRIC 21


3.2 Asset & Wealth management
The Asset & Wealth Management business line includes the Asset Management and Wealth Management activities of Natixis.
Figures specifying the contribution to Groupe BPCE are different from those reported by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com

Underlying figures

Q4-20

% Change

2020

% Change

% Change (constant FX)

€m

Net banking income

1,003

(9.6)%

3,225

(14.2)%

(13.4)%

NBI excl. H2O

1,012

16%

3,095

(1)%

Operating expenses

(673)

(0.9)%

(2,341)

(5.7)%

(4.7)%

Gross operating income

330

(23.3)%

884

(30.8)%

(30.2)%

GOI excl. H2O

348

54%

807

7%

Income before tax

323

-25.7%

861

-32.9%

after IFRIC 21 restatement

Cost/income ratio(1)

67.2%

5.9pp

72.6%

6.6pp

The division's net banking income in Q4-20 came to a total of 1,003 million euros, down 9.6% compared with Q4-19. This figure includes 912 million euros in Asset Management revenues (-12% year-on-year), 30 million euros in Employee Savings (stable year-on-year) and 61 million euros in Wealth Management revenues (+26% year-on-year).
Net banking income includes 210 million euros in performance fees in the Asset Management business, chiefly generated by DNCA and Mirova.
If the contribution from H20 AM is excluded, the revenues posted by the division, and those posted by the Asset Management business, enjoyed 16% year-on-year growth in Q4-20.
In Asset Management, the fee rate (excluding performance fees) was approximately 25bps overall and came to about 38bps if Ostrum AM is excluded (+0.7bps vs. Q3-20). The fee rate is approximately 34bps for US affiliates (+0.1pp compared with Q3-20) and approximately 39bps for European affiliates, if Ostrum AM is excluded (-0.5pp compared with Q3-20). For Ostrum AM, the fee rate stood at about 4bps in Q4-20.

In full-year 2020, net banking income generated by the division came to 3,225 million, representing a 14.2% year-on-year decline (-13.4% at constant exchange rates).
Asset Management recorded a 16% contraction in revenues (-15% at constant exchange rates) to 2,948 million euros while the Employee Savings business recorded a slight decline to 99 million euros. In contrast, Wealth Management posted 19% growth in revenues over the year to 178 million euros.
If the contribution from H20 AM is excluded, the division's revenues amounted to 3,095 million euros in full-year 2020, while the revenues generated by the Asset Management business stood at 2,818 million euros, down marginally by 1% and 2% respectively.

In Asset Management, net inflows2 came to approximately 11 billion euros in Q4-20. This result reflects good momentum from North American affiliates in fixed income and growth equity strategies with net inflows of 4 billion euros. In Europe, Mirova continued to attract strong positive inflows.

At December 31, 2020, assets under management2 in the Asset Management segment amounted to 1,135 billion euros. If H20 AM is excluded, AuM amounted to 1,117 billion euros, up in Q4-20 thanks to new net inflows, a positive market effect of 59 billion euros, a negative currency translation effect of 20 billion euros, and the integration of La Banque Postale AM for 177 billion euros in assets under management.

Operating expenses for the division were down 0.9% in Q4-20 and down 5.7% in full-year 2020 (-4.7% at constant exchange rates). The cost/income ratio stood at 72.6% in 2020, up 6.6pp year-on-year.

Gross operating income stood at 330 million euros in Q4-20 (-23.3% compared with Q4-19) and at 884 million euros in full-year 2020 (-30.8% compared with 2019, -30.2% at constant exchange rates).
If the contribution from H20 AM is excluded, operating income stood at 348 million euros in Q4-20 and at 807 million euros in full-year 2020, up 54% and 7% respectively.

Income before tax1 came to 323 million euros in Q4-20 (-25.7%) and stood at 861 million euros in 2020 (-32.9%).

1 See notes on methodology and after restating to account for the impact of IFRIC 21 2 Europe notably includes Dynamic Solutions and the assets under management of Vega IM, and excludes those of H2O in Q3-20; North America notably includes WCM IM

3.3 Corporate & Investment Banking

The Corporate & Investment Banking business line (CIB) includes the Global markets, Global finance, Investment banking and M&A activities of Natixis. Figures specifying the contribution to Groupe BPCE are different from those reported by Natixis. For a more detailed analysis of the business lines and results of Natixis, please refer to the press release published by Natixis that may be consulted online at www.natixis.com

Underlying figures
€m

Q4-20

% Change

2020

%
Change

Constant Fx
% Change

Net banking income

894

(0.6)%

2,803

(16.0)%

(15.3)%

Operating expenses

(546)

(7.4)%

(2,088)

(5.4)%

(4.7)%

Gross operating income

347

12.4%

715

(36.7)%

(36.2)%

Cost of risk

(152)

27.9%

(819)

x2.6

Income before tax
after IFRIC 21 restatement

189

2.4%

(94)

ns

Cost/income ratio(1)

61.1%

(4.5)pp

74.5%

8.3pp

In Q4-20, the net banking income posted by the Corporate & Investment Banking division contracted by a marginal 0.6% year-on-year to 894 million euros but, at constant exchange rates, it grew by 2%. In full-year 2020, net banking income came to 2,803 million euros, down 16.0% (-15.3% at constant exchange rates).

In the Global markets segment, FICT revenues in Q4-20, at 252 million euros, were down year-on-year due to a lower contribution from the foreign exchange and interest rate activities but remained stable as far as credit activities are concerned. In full-year 2020, FICT revenues remained stable compared with 2019.
For the Equity business, the first half of the year was marked by the cancellation of dividends, which had a negative impact on the valuation of derivatives and explains the sharp decline in revenues in 2020 overall. Favorable market conditions in Q4-20 led to a rebound in revenues to 127 million euros.
A strategic review of the Equity Derivatives business has been carried out, resulting in an exit from the most complex products and a tightening of exposure limits on low/medium risk products. These products will chiefly be offered to Groupe BPCE retail networks and Natixis’ selected strategic clients.

Global finance revenues, at 347 million euros, were down 6% in Q4-20 compared with Q4-19, a high baseline for comparisons. Revenues increased compared with Q3-20, driven by higher loan portfolio revenues, particularly in the Infrastructure and Energy segments.
Investment banking and M&A revenues include the good business momentum of Equity Capital Markets and M&A activities (revenues up 6% in full-year 2020).

Operating expenses decreased by 7.4% in Q4-20 and by 5.4% in 2020 (-4.7% at constant exchange rates) thanks to strict cost control.
In full-year 2020, gross operating income decreased to 715 million euros (-36.7% year-on-year at current exchange rates or -36.2% at constant exchange rates). Gross operating income enjoyed significant year-on-year growth of 12.4% in Q4-20, rising to 347 million euros.

The cost of risk remained high in Q4-20 at 152 million euros (+27.9% year-on-year). In full-year 2020, it amounted to 819 million euros (x2.6 year-on-year), including notably higher provisions in the Energy & Natural Resources sector.

As a result, income before tax came to -94 million euros in 2020. After restatement to account for the impact of IFRIC 21, income before tax was positive in Q4-20 at 189 million euros (+2.4%).

1 See notes on methodology and after restating to account for IFRIC 21


ANNEXES

Notes on methodology

Presentation of restated and pro-forma quarterly results
In its capacity as the central institution, BPCE SA organizes, coordinates and supervises a certain number of activities or services on behalf of the Group and, notably, of the Banque Populaire and Caisse d'Epargne retail banking networks (strategic oversight, coordination of commercial policies, centralized management of refinancing, major projects, etc.). The contribution of the central institution is presented under the Corporate center division.
The rules governing the re-invoicing by BPCE SA of expenses recorded with respect to the missions it pursues in its central institution capacity were modified in the fourth quarter of 2020. As a result and for comparison purposes, the 2019 and 2020 quarterly income statements of the Retail Banking & Insurance and Corporate center divisions have been restated for past periods

Restatement of the impact of IFRIC 21
The results, cost/income ratios and ROE, after being restated to account for the impact of IFRIC 21, are calculated on the basis of ¼ of the amount of taxes and contributions resulting from the interpretation of IFRIC 21 for a given quarter, or ½ of the amount of taxes and contributions resulting from the interpretation of IFRIC 21 for a 6-month period. In practice, for Groupe BPCE, the principal taxes concerned by IFRIC 21 are the company social solidarity contribution (C3S) and contributions and levies of a regulatory nature (systemic risk tax levied on banking institutions, contribution to ACPR control costs, contribution to the Single Resolution Fund and to the Single Supervisory Mechanism).

Net banking income
Customer net interest income, excluding regulated home savings schemes, is computed on the basis of interest earned from transactions with customers, excluding net interest on centralized savings products (Livret A, Livret Développement Durable, Livret Epargne Logement passbook savings accounts) in addition to changes in provisions for regulated home purchase savings schemes. Net interest on centralized savings is assimilated to commissions.

Operating expenses
The operating expenses correspond to the aggregate total of the ‘Operating Expenses’ (as presented in the Group’s universal registration document, note 4.7 appended to the consolidated financial statements of Groupe BPCE) and ‘Depreciation, amortization and impairment for property, plant and equipment and intangible assets.’

Cost of risk
The cost of risk is expressed in basis points and measures the level of risk per business line as a percentage of the volume of loan outstandings; it is calculated by comparing net provisions booked with respect to credit risks of the period to gross customer loan outstandings at the beginning of the period.

Loan outstandings and Deposits & Savings
Restatements regarding transitions from book outstandings to outstandings under management (Loans and Deposits & Savings) are as follows:

  • Deposits & Savings: the scope of outstandings under management excludes debt securities (certificates of deposit and savings bonds)

  • Loan outstandings: the scope of outstandings under management excludes securities classified as customer loans and receivables and other securities classified as financial operations.

Capital adequacy & deduction of IPC

  • Common Equity Tier 1 is determined in accordance with the applicable CRR/CRD IV rules and after deduction of irrevocable payment commitments

  • Additional Tier-1 capital takes account of subordinated debt issues that have become non-eligible and subject to ceilings at the phase-out rate in force.

  • The leverage ratio is calculated using the rules of the Delegated Act published by the European Commission on October 10, 2014, without transitional measures. Securities financing operations carried out with clearing houses are offset on the basis of the criteria set forth in IAS 32, without consideration of maturity and currency criteria.
    Following the decision of July 13, 2018 handed down by the General Court of the European Union, Groupe BPCE again requested the agreement of the ECB to exclude the centralized outstandings of regulated savings from the calculation of the denominator of the ratio.

Total loss-absorbing capacity
The amount of liabilities eligible for inclusion in the numerator used to calculate the Total Loss-Absorbing Capacity (TLAC) ratio is determined on the basis of our understanding of the Term Sheet published by the FSB on November 9, 2015: “Principles on Loss-Absorbing and Recapitalization Capacity of G-SIBs in Resolution.”
This amount is comprised of the following 4 items:

  • Common Equity Tier 1 in accordance with the applicable CRR/CRD IV rules,

  • Additional Tier-1 capital in accordance with the applicable CRR/CRD IV rules,

  • Tier-2 capital in accordance with the applicable CRR/CRD IV rules,

  • Subordinated liabilities not recognized in the capital mentioned above and whose residual maturity is greater than 1 year, namely:

    • The share of additional Tier-1 capital instruments not recognized in common equity (i.e. included in the phase-out),

    • The share of the prudential discount on Tier-2 capital instruments whose residual maturity is greater than 1 year,

    • The nominal amount of senior non-preferred securities maturing in more than 1 year.

Eligible amounts differ slightly from the amounts adopted for the numerator of the capital adequacy ratios; these eligible amounts are determined using the principles defined in the Term Sheet published by the FSB on November 9, 2015.

Liquidity
Total liquidity reserves comprise the following:

  • Central bank-eligible assets include: ECB-eligible securities not eligible for the LCR, taken for their ECB valuation (after the ECB haircut), securities retained (securitization and covered bonds) that are available and ECB-eligible taken for their ECB valuation (after ECB haircut) and private receivables available and eligible for central bank funding (ECB and the Federal Reserve), net of central bank funding.

  • LCR eligible assets comprising the Group’s LCR reserve taken for their LCR valuation.

  • Liquid assets placed with central banks (ECB and the Federal Reserve), net of US Money Market Funds deposits and to which fiduciary money is added.

Short-term funding corresponds to funding with an initial maturity of less than, or equal to, 1 year and the short-term maturities of medium-/long-term debt correspond to debt with an initial maturity date of more than 1 year maturing within the next 12 months. Customer deposits are subject to the following adjustments:

  • Addition of security issues placed by the Banque Populaire and Caisse d’Epargne retail banking networks with their customers, and certain operations carried out with counterparties comparable to customer deposits

  • Withdrawal of short-term deposits held by certain financial customers collected by Natixis in pursuit of its intermediation activities.

Reconciliation of restated data to reported data

Q4-20

GROUPE
BPCE

GROUPE
BPCE

In millions of euros

Q4-20
reported

Coface

Q4-20
restated

Q4-19
reported

Coface

Q4-19
restated

Net banking income

6,303

6,303

6,300

(178)

6,123

Operating expenses

(4,356)

(4,356)

(4,580)

138

(4,441)

Gross operating income

1,947

1,947

1,720

(40)

1,682

Cost of risk

(924)

(924)

(426)

(426)

Share in net income of associates

60

7

67

79

79

Gains or losses on other assets

(22)

(22)

24

24

Income before tax

1,062

7

1,069

1,399

(40)

1,359

Income tax

(318)

(318)

(393)

10

(382)

Non-controlling interests

(120)

(3)

(123)

(218)

22

(196)

Net income – excl. Coface net contribution

5

628

(9)

780

Coface – Net contribution

(5)

9

Net income – Group share

624

624

789

789

2020

GROUPE
BPCE

GROUPE
BPCE

In millions of euros

2020
reported

Coface

2020
restated

2019
Reported

Coface

2019
restated

Net banking income

22,540

22,540

24,305

(712)

23,593

Operating expenses

(16,644)

(16,644)

(17,582)

517

(17,065)

Gross operating income

5,896

5,896

6,722

(194)

6,528

Cost of risk

(2,998)

(2,998)

(1,367)

2

(1,365)

Share in net income of associates

180

47

227

265

265

Gains or losses on other assets

(289)

145

(144)

1

(2)

(1)

Impairment of goodwill

(84)

(4)

(88)

Income before tax

2,789

193

2,982

5,538

(200)

5,338

Income tax

(1,045)

(1,045)

(1,801)

53

(1,748)

Non-controlling interests

(134)

(57)

(191)

(707)

103

(604)

Net income – excl. Coface net contribution

136

1,745

(44)

2,986

Coface – Net contribution

(136)

44

Net income – Group share

1,610

1,610

3,030

3,030


Restated results excluding Coface: reconciliation of alternative performance measures to reported data

Q4-20

In millions of euros

Net banking
income

Operating
expenses

Cost of risk

Gains or losses
on other assets

Income
before tax

Net income
- Group share excluding Coface

Coface net income

Net income
- Group share including Coface

Restated Q4-20 results

6,303

(4,356)

(924)

(22)

1,069

628

(5)

624

Revaluation of assets associated with deeply subordinated notes denominated
in foreign currencies

Corporate center

3

3

10

Transformation and reorganization costs

Business lines/
Corporate center

28

(188)

(1)

(21)

(183)

(128)

Disposals and impairments

Business lines/
Corporate center

(5)

(5)

(3)

Impact of Lebanon default on ADIR insurance

Insurance

(9)

(6)

Restated Q4-20 results
excluding exceptional items

6,272

4,167

(923)

5

1,262

754

3

757

Total impact

31

(188)

(1)

(26)

(193)

(127)

(7)

(134)

Q4-19

In millions of euros

Net banking
income

Operating
expenses

Cost of risk

Gains or losses
on other assets

Income
before tax

Net income
- Group share excluding Coface

Coface net income

Net income
- Group share including Coface

Restated Q4-19 results

6,123

(4,441)

(426)

24

1,359

780

9

789

Revaluation of assets associated with deeply subordinated notes denominated
in foreign currencies

Corporate center

2

2

7

Transformation and reorganization costs

Business lines/
Corporate center

(154)

(41)

24

(172)

(92)

Disposals and impairments

Business lines/
Corporate center

0

Impact of Lebanon default on ADIR insurance

Insurance

Restated Q4-19 results
excluding exceptional items

6,121

(4,287)

(385)

0

1,528

865

9

874

Total impact

2

(154)

(41)

24

(169)

(85)

(85)


2020

In millions of euros

Net banking
income

Operating
expenses

Cost of risk

Share in net income
of associates

Gains or losses
on other assets

Income
before tax

Net income
- Group share excluding Coface

Coface net income

Net income
- Group share including Coface

Restated 2020 results

22,540

(16,644)

(2,998)

227

(144)

2,982

1,745

(136)

1,610

Revaluation of assets associated with deeply subordinated notes denominated
in foreign currencies

Corporate center

7

7

20

Transformation and reorganization costs

Business lines/
Corporate center

33

(425)

(6)

(168)

(566)

(374)

Contribution to the insurance guarantee fund

Insurance

(16)

(10)

(26)

(18)

Disposals and impairment

Business lines/
Corporate center

(5)

(5)

(3)

Impact of Lebanon default on ADIR insurance

Insurance

(23)

(23)

(16)

Restated 2020 results
excluding exceptional items

22,516

(16,219)

(2,992)

260

30

3,595

2,136

7

2,144

Total impact

24

(425)

(6)

(33)

(173)

(614)

(391)

(143)

(534)

2019

In millions of euros

Net banking
income

Operating
expenses

Cost of risk

Share in income of equity-accounted associates

Gains or losses
on other assets

Goodwill

Income
before tax

Net income
- Group share excluding Coface

Coface net income

Net income
- Group share including Coface

Restated 2019 results

23,593

(17,065)

(1,365)

265

(1)

(88)

5,338

2,986

44

3,030

Revaluation of assets associated with deeply subordinated notes denominated in foreign currencies

Corporate center

17

17

8

Transformation and reorganization costs

Business lines/
Corporate center

(432)

(50)

5

(88)

(565)

(436)

Disposals and impairments

Business lines/
Corporate center

(25)

(15)

(40)

(35)

Restated 2019 results
excluding exceptional items

23,576

(16,634)

(1,315)

290

8

0

5,926

3,450

42

3,492

Total impact

17

(432)

(50)

(25)

(10)

(88)

(588)

(463)

2

(461)


Reconciliation of 2019 and 2020 data to pro forma data

Retail banking and Insurance

Q1-19

Q2-19

Q3-19

Q4-19

In millions of euros

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Reported figures

4,070

(2,694)

1,131

739

4,099

(2,690)

1,222

766

3,972

(2,596)

1,143

751

4,176

(2,863)

1,003

679

Central institution’s expenses

(67)

33

(34)

(22)

(67)

33

(34)

(22)

(67)

33

(34)

(22)

(67)

33

(34)

(22)

Pro forma figures

4,003

(2,661)

1,097

717

4,032

(2,658)

1,188

744

3,905

(2,564)

1,109

728

4,109

(2,830)

968

657


Corporate center

Q1-19

Q2-19

Q3-19

Q4-19

In millions of euros

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Restated figures

127

(729)

(680)

(589)

57

(232)

(134)

(54)

56

(239)

(148)

(28)

(61)

(295)

(258)

(150)

Central institution’s expenses

67

(33)

34

23

67

(33)

34

22

67

(33)

34

23

67

(33)

34

23

Pro forma figures

194

(762)

(646)

(566)

124

(265)

(100)

(31)

123

(272)

(114)

(5)

6

(328)

(224)

(128)


Retail banking and Insurance

Q1-20

Q2-20

Q3-20

In millions of euros

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Reported figures

4,140

(2,803)

1,032

685

4,074

(2,585)

844

537

4,162

(2,629)

1,211

818

Central institution’s expenses

(65)

7

(58)

(39)

(65)

7

(58)

(39)

(65)

7

(58)

(39)

Pro forma figures

4,075

(2,796)

975

645

4,009

2,578

787

498

4,097

(2,622)

1,154

779


Corporate center

Q1-20

Q2-20

Q3-20

In millions of euros

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Net banking income

Operating expenses

Income before tax

Net income

Reported figures

(58)

(606)

(619)

(461)

(115)

(238)

(491)

(341)

(98)

(191)

(263)

(169)

Central institution’s expenses

65

(7)

58

39

65

(7)

58

39

65

(7)

58

39

Pro forma figures

6

(613)

(561)

(422)

(50)

(245)

(433)

(302)

(33)

(198)

(205)

(130)


Groupe BPCE: restated income statement per business line

Q4-20

RETAIL BANKING
& INSURANCE

ASSET & WEALTH MANAGEMENT

CORPORATE
& INVESTMENT
BANKING

CORPORATE
CENTER

GROUPE
BPCE

Restated figures
In millions of euros

Q4-20

Q4-19 pf

Q4-20

Q4-19

Q4-20

Q4-19

Q4-20

Q4-19 pf

Q4-20

Q4-19

%

Net banking income

4,275

4,109

1,003

1,109

894

899

132

6

6,303

6,123

2.9%

Operating expenses

(2,817)

(2,830)

(696)

(681)

(555)

(602)

(288)

(328)

(4,356)

(4,441)

(1.9)%

Gross operating income

1,458

1,279

307

428

339

297

(156)

(322)

1,682

15.8%

Cost of risk

(746)

(316)

(7)

2

(152)

(118)

(20)

7

(924)

(426)

x2.2

Income before tax

700

968

275

434

190

181

(96)

(224)

1,069

1,359

(21.4)%

Income tax

(261)

(296)

(85)

(118)

(47)

(44)

76

76

(318)

(382)

(16.8)%

Non-controlling interests

(33)

(16)

(63)

(158)

(45)

(43)

17

20

(123)

(196)

(37.3)%

Net income –
excl. Coface net contribution

406

657

127

157

98

94

(3)

(128)

628

780

(19.6)%

Coface – Net contribution

(5)

9

(5)

9

n.s

Net income –
Group share

406

657

127

157

98

94

(7)

(119)

624

789

(20.9)%

2020

RETAIL BANKING
& INSURANCE

ASSET & WEALTH MANAGEMENT

CORPORATE
& INVESTMENT
BANKING

CORPORATE
CENTER

GROUPE
BPCE

Restated figures
In millions of euros

2020

2019 pf

2020

2019

2020

2019

2020

2019 pf

2020

2019

%

Net banking income

16,457

16,050

3,225

3,760

2,803

3,337

55

447

22,540

23,593

(4.5)%

Operating expenses

(10,813)

(10,713)

(2,387)

(2,492)

(2,099)

(2,235)

(1,345)

(1,626)

(16,644)

(17,065)

(2.5)%

Gross operating income

5,644

5,337

838

1,268

704

1,102

(1,290)

(1,179)

5,896

6,528

(9.7)%

Cost of risk

(2,042)

(1,028)

(27)

(8)

(819)

(312)

(110)

(18)

(2,998)

(1,365)

x2.2

Income before tax

3,615

4,362

768

1,273

(105)

786

(1,297)

(1,083)

2,982

5,338

(44.1)%

Income tax

(1,173)

(1,429)

(226)

(353)

33

(212)

321

246

(1,045)

(1,748)

(40.2)%

Non-controlling interests

(114)

(87)

(209)

(447)

14

(176)

119

106

(191)

(604)

(68.3)%

Net income –
excl. Coface net contribution

2,328

2,846

332

473

(57)

397

(857)

(730)

1,745

2,986

(41.6%)

Coface – Net contribution

(136)

44

(136)

44

n.s

Net income –
Group share

2,328

2,846

332

473

(57)

397

(993)

(687)

1,610

3,030

(46.9)%


Groupe BPCE: restated quarterly series

GROUPE BPCE

In millions of euros

Q1-19

Q2-19

Q3-19

Q4-19

2019

Q1-20

Q2-20

Q3-20

Q4-20

2020

Net banking income

5,778

5,935

5,757

6,123

23,593

5,543

5,183

5,511

6,303

22,540

Operating expenses

(4,563)

(4,051)

(4,011)

(4,441)

(17,065)

(4,546)

(3,837)

(3,905)

(4,356)

(16,644)

Gross operating income

1,215

1,884

1,746

1,682

6,528

997

1,346

1,606

1,947

5,896

Cost of risk

(293)

(326)

(320)

(426)

(1,365)

(504)

(981)

(589)

(924)

(2,998)

Income before tax

850

1,636

1,494

1,359

5,338

548

282

1,083

1,069

2,982

Net income –
excl. Coface net contribution

329

945

931

780

2,986

265

150

703

628

1,745

Coface – Net contribution

11

13

12

9

44

(83)

(19)

(29)

(5)

(136)

Net income – Group share

340

958

943

789

3,030

181

131

674

624

1,610


Consolidated balance sheet

ASSETS
(in millions of euros)

Dec. 31, 2020

Dec. 31, 2019

Cash and amounts due from central banks

153,403

80,244

Financial assets at fair value through profit or loss

196,260

210,679

Hedging derivatives

9,608

9,286

Financial assets at fair value through shareholders' equity

49,630

44,630

Financial assets at amortized cost

26,732

28,922

Loans and receivables due from credit institutions
and similar at amortized cost

90,018

89,656

Loans and receivables due from customers at amortized cost

746,809

693,257

Revaluation difference on interest rate risk-hedged portfolios

8,941

7,673

Insurance activity investments

124,566

119,046

Current tax assets

747

864

Deferred tax assets

3,667

3,597

Accrued income and other assets

16,367

15,998

Non-current assets held for sale

2,599

578

Investments in associates

4,586

4,247

Investment property

770

769

Property, plant and equipment

6,222

6,448

Intangible assets

1,038

1,089

Goodwill

4,307

4,665

TOTAL ASSETS

1,446,269

1,321,648


LIABILITIES
(in millions of euros)

Dec. 31, 2020

Dec. 31, 2019

Amounts due to central banks

Financial liabilities at fair value through profit or loss

191,371

193,448

Hedging derivatives

15,262

15,068

Debt securities

228,201

239,341

Amounts due to credit institutions

138,416

76,653

Amounts due to customers

630,837

559,713

Revaluation difference on interest rate risk-hedged portfolios

243

238

Current tax liabilities

485

788

Deferred tax liabilities

1,239

1,400

Accrued expenses and other liabilities

22,662

22,789

Liabilities associated with non-current assets held for sale

1,945

528

Insurance-related liabilities

114,608

110,697

Provisions

6,213

6,156

Subordinated debt

16,375

17,487

Shareholders' equity

78,412

77,341

Equity attributable to equity holders of the parent

72,683

69,909

Non-controlling interests

5,728

7,431

TOTAL LIABILITIES

1,446,269

1,321,648


Retail Banking & Insurance

Quarterly income statement

BANQUE
POPULAIRE

NETWORK

CAISSE
D'EPARGNE

NETWORK

FINANCIAL SOLUTIONS
& EXPERTISE

INSURANCE

PAYMENTS

OTHER
NETWORKS

RETAIL BANKING
& INSURANCE

In millions of euros

Q4-20

Q4-19 pf

%

Q4-20

Q4-19 pf

%

Q4-20

Q4-19 pf

%

Q4-20

Q4-19

%

Q4-20

Q4-19

%

Q4-20

Q4-19 pf

%

Q4-20

Q4-19 pf

%

Net banking income

1,672

1,589

5,2%

1,767

1,694

4,3%

300

296

1,5%

232

216

7,6%

115

111

3,3%

189

202

(6.5)%

4,275

4,109

4.0%

Operating expenses

(1,082)

(1,090)

(0,8)%

(1,209)

(1,202)

0,7%

(154)

(171)

(9,8)%

(123)

(125)

(1,6)%

(103)

(96)

7,3%

(146)

(146)

-

(2,817)

(2,830)

(0.5)%

Gross operating income

590

499

18,2%

558

493

13,1%

146

125

16,9%

109

90

20,3%

12

15

(22)%

44

56

(22.4)%

1,458

1,279

14.0%

Cost of risk

(309)

(128)

140,2%

(354)

(89)

298,9%

(32)

(17)

91,9%

1

0

(227,8)%

(52)

(82)

(36.8)%

(746)

(316)

x2.4

Income before tax

280

373

(24,8)%

202

403

(49,8)%

114

109

4,9%

105

94

11,7%

13

15

(16, 3)%

(14)

(25)

(45.6)%

700

968

(27.7)%

Income tax

(99)

(110)

(10,3)%

(100)

(126)

(20,6)%

(33)

(35)

(6,1)%

(32)

(29)

11.0%

(4)

(5)

(22,8)%

7

10

(30.9)%

(261)

(296)

(11,6)%

Non-controlling interests

0

(1)

n.s

(4)

(2)

x2

0

0

-

(21)

(19)

12,1%

(3)

(3)

(2,5)%

(4)

8

n.s

(33)

(16)

x2.1

Net income
- Group share

182

262

(30,7)%

98

275

(64,6)%

81

74

10,1%

51

46

12,1%

6

7

(17,2)%

(11)

(7)

(61,1)%

406

657

(38,2)%

2020 income statement

BANQUE
POPULAIRE

NETWORK

CAISSE
D'EPARGNE

NETWORK

FINANCIAL SOLUTIONS
& EXPERTISE

INSURANCE

PAYMENTS

OTHER
NETWORKS

RETAIL BANKING
& INSURANCE

In millions of euros

2020

2019 pf

%

2020

2019 pf

%

2020

2019 pf

%

2020

2019

%

2020

2019

%

2020

2019 pf

%

2020

2019 pf

%

Net banking income

6,315

6,305

0,1%

6,917

6,919

-

1,134

1,109

2.2%

901

846

6.5%

431

423

1.9%

760

448

69.8%

16,457

16,050

2.5%

Operating expenses

(4,242)

(4,294)

(1.2)%

(4,549)

(4,616)

(1.5)%

(604)

(628)

(3.9)%

(491)

(478)

2.5%

(391)

(370)

5.7%

(537)

(326)

64.5%

(10,813)

(10,713)

0.9%

Gross operating income

2,072

2,012

3.0%

2,369

2,303

2.9%

530

481

10.2%

410

368

11.6%

39

52

(25.0)%

223

121

84.0%

5,644

5,337

5.8%

Cost/income ratio

67.2%

68.1%

(0.9)pp

65.8%

66.7%

(1.0)pp

53.2%

56.6%

(3.4)pp

54.5%

56.5%

(2.1)pp

90.9%

87.6%

3.3pp

70.7%

72.9%

(2.3)pp

65.7%

66.7%

(1.0)pp

Cost of risk

(828)

(417)

98.8%

(914)

(419)

x2.2

(117)

(79)

48.4%

2

(2)

n.s

(185)

(111)

67.5%

(2,042)

(1,028)

98.7%

Income before tax

1,273

1,632

(22.0)%

1,464

1,881

(22.2)%

413

402

2.5%

393

378

4.2%

42

50

(16.8)%

31

18

69.0%

3,615

4,362

(17.1)%

Income tax

(402)

(515)

(22.0)%

(511)

(636)

(19.7)%

(123)

(137)

(10.6)%

(123)

(119)

3.0%

(12)

(16)

(23.2)%

(2)

(6)

(57.8)%

(1,173)

(1,429)

(18.0)%

Non-controlling interests

(1)

(2)

(65.5)%

(3)

(7)

(48.6)%

0

0

-

(79)

(76)

4.8%

(9)

(10)

(12.5)%

(22)

8

n.s

(114)

(87)

32.3%

Net income
- Group share

870

1,115

(22.0)%

950

1,238

(23.3)%

290

265

9.3%

191

183

4.7%

21

24

(14.1)%

7

21

-68.7%

2,328

2,846

(18.2)%


Retail Banking & Insurance

Quarterly series

RETAIL BANKING & INSURANCE

In millions of euros

Q1-19 pf

Q2-19 pf

Q3-19 pf

Q4-19 pf

2019 pf

Q1-20 pf

Q2-20 pf

Q3-20 pf

Q4-20

2020

Net banking income

4,003

4,032

3,905

4,109

16,050

4,075

4,009

4,097

4,275

16,457

Operating expenses

(2,661)

(2,658)

(2,564)

(2,830)

(10,713)

(2,796)

(2,578)

(2,622)

(2,817)

(10,813)

Gross operating income

1,342

1,374

1,342

1,279

5,337

1,279

1,431

1,475

1,458

5,644

Cost/income ratio

66.5%

65.9%

65.6%

68.9%

66.7%

68.6%

64.3%

64%

65.9%

65.7%

Cost of risk

(257)

(212)

(243)

(316)

(1,028)

(302)

(651)

(343)

(746)

(2,042)

Income before tax

1,097

1,188

1,109

968

4,362

975

787

1,154

700

3,615

Net income – Group share

717

744

728

657

2,846

645

498

779

406

2,328

Banque Populaire and Caisse d’Épargne networks: quarterly series

BANQUE POPULAIRE NETWORK

In millions of euros

Q1-19 pf

Q2-19 pf

Q3-19 pf

Q4-19 pf

2019 pf

Q1-20 pf

Q2-20 pf

Q3-20 pf

Q4-20

2020

Net banking income

1,586

1,594

1,536

1,589

6,305

1,572

1,483

1,588

1,672

6,315

Operating expenses

(1,071)

(1,083)

(1,049)

(1,090)

(4,294)

(1,092)

(1,016)

(1,053)

(1,082)

(4,242)

Gross operating income

516

511

486

499

2,012

480

468

535

590

2,072

Cost of risk

(94)

(85)

(109)

(128)

(417)

(117)

(289)

(114)

(309)

(828)

Income before tax

432

441

386

373

1,632

372

187

434

280

1,273

Net income – Group share

297

287

268

262

1,115

255

120

313

182

870

CAISSE D’EPARGNE NETWORK

In millions of euros

Q1-19 pf

Q2-19 pf

Q3-19 pf

Q4-19 pf

2019 pf

Q1-20 pf

Q2-20 pf

Q3-20 pf

Q4-20

2020

Net banking income

1,745

1,768

1,711

1,694

6,919

1,684

1,761

1,705

1,767

6,917

Operating expenses

(1,167)

(1,150)

(1,097)

(1,202)

(4,616)

(1,175)

(1,086)

(1,077)

(1,209)

(4,549)

Gross operating income

578

618

614

493

2,303

509

675

627

558

2,369

Cost of risk

(126)

(92)

(112)

(89)

(419)

(121)

(276)

(162)

(354)

(914)

Income before tax

453

524

502

403

1,881

388

398

476

202

1,464

Net income – Group share

298

337

329

275

1,238

264

263

326

98

950

Financial Solutions & Expertise: quarterly series

FINANCIAL SOLUTION & EXPERTISE

In millions of euros

Q1-19 pf

Q2-19 pf

Q3-19 pf

Q4-19 pf

2019 pf

Q1-20 pf

Q2-20 pf

Q3-20 pf

Q4-20

2020

Net banking income

270

278

266

296

1,109

288

262

284

300

1,134

Operating expenses

(153)

(151)

(153)

(171)

(628)

(159)

(141)

(150)

(154)

(604)

Gross operating income

116

127

113

125

481

130

120

134

146

530

Cost/income ratio

56.9%

54.4%

57.6%

57.7%

56.6%

55.0%

53.9%

52.9%

51.2%

53.2%

Cost of risk

(25)

(22)

(15)

(17)

(79)

(24)

(26)

(35)

(32)

(117)

Income before tax

91

105

98

109

402

105

95

99

114

413

Net income – Group share

62

60

70

74

265

73

67

69

81

290


Insurance: quarterly series

INSURANCE

In millions of euros

Q1-19

Q2-19

Q3-19

Q4-19

2019

Q1-20

Q2-20

Q3-20

Q4-20

2020

Net banking income

218

207

205

216

846

221

228

220

232

901

Operating expenses

(125)

(116)

(112)

(125)

(478)

(134)

(117)

(117)

(123)

(491)

Gross operating income

93

92

93

90

368

87

112

103

109

410

Cost/income ratio

57.5%

55.8%

54.6%

58.1%

56.5%

60.6%

51.1%

53.1%

53.2%

54.5%

Income before tax

93

96

94

94

378

76

110

102

105

393

Net income – Group share

45

47

45

46

183

35

54

51

51

191

Payments: quarterly series

PAYMENTS

In millions of euros

Q1-19

Q2-19

Q3-19

Q4-19

2019

Q1-20

Q2-20

Q3-20

Q4-20

2020

Net banking income

103

105

103

111

423

113

86

117

115

431

Operating expenses

(88)

(94)

(93)

(96)

(370)

(94)

(96)

(98)

(103)

(391)

Gross operating income

16

11

10

15

52

18

(10)

19

12

39

Cost/income ratio

84.8%

89.6%

90.1%

86.1%

87.6%

83.8%

111.7%

83.9%

89.5%

90.9%

Income before tax

16

10

9

15

50

20

(10)

19

13

42

Net income – Group share

8

5

4

7

24

10

(5)

9

6

21

Other networks: quarterly series

OTHER NETWORKS

In millions of euros

Q1-19 pf

Q2-19 pf

Q3-19 pf

Q4-19 pf

2019 pf

Q1-20 pf

Q2-20 pf

Q3-20 pf

Q4-20

2020

Net banking income

81

81

84

202

448

197

189

184

189

760

Operating expenses

(57)

(64)

(59)

(146)

(326)

(141)

(123)

(127)

(146)

(537)

Gross operating income

24

17

25

56

121

56

67

57

44

223

Cost/income ratio

70.7%

79.1%

70.6%

72.3%

72.9%

71.7%

64.8%

69.0%

77%

70.7%

Cost of risk

(11)

(13)

(5)

(82)

(111)

(42)

(60)

(32)

(52)

(185)

Income before tax

12

12

20

(25)

18

14

7

24

(14)

31

Net income – Group share

8

8

12

(7)

21

8

(2)

11

(11)

7


Asset & Wealth Management: quarterly series

ASSET & WEALTH MANAGEMENT

In millions of euros

Q1-19

Q2-19

Q3-19

Q4-19

2019

Q1-20

Q2-20

Q3-20

Q4-20

2020

Net banking income

773

932

945

1,109

3,760

774

704

744

1,003

3,225

Operating expenses

(558)

(605)

(648)

(681)

(2,492)

(579)

(537)

(575)

(696)

(2,387)

Gross operating income

216

327

297

428

1,268

195

167

169

307

838

Cost/income ratio

72.1%

64.9%

68.5%

61.4%

66.3%

74.8%

76.3%

77.3%

69.4%

74.0%

Cost of risk

1

(2)

(8)

2

(8)

1

(11)

(10)

(7)

(27)

Income before tax

216

325

299

434

1,273

196

159

139

275

768

Net income – Group share

90

119

107

157

473

75

74

57

127

332

Corporate & Investment Banking: quarterly series

CORPORATE & INVESTMENT BANKING

In millions of euros

Q1-19

Q2-19

Q3-19

Q4-19

2019

Q1-20

Q2-20

Q3-20

Q4-20

2020

Net banking income

807

847

784

899

3,337

688

519

703

894

2,803

Operating expenses

(582)

(523)

(527)

(602)

(2,235)

(557)

(477)

(510)

(555)

2,099

Gross operating income

225

324

256

297

1,102

130

42

193

339

704

Cost/income ratio

72.2%

61.8%

67.3%

67.0%

67.0%

81.1%

91.8%

72.6%

62.1%

74.9%

Cost of risk

(30)

(104)

(59)

(118)

(312)

(194)

(275)

(199)

(152)

(819)

Income before tax

183

223

200

181

786

(61)

(230)

(4)

190

(105)

Net income – Group share

89

114

102

94

397

(33)

(120)

(3)

98

(57)

Corporate center: restated quarterly series

CORPORATE CENTER

In millions of euros

Q1-19 pf

Q2-19 pf

Q3-19 pf

Q4-19 pf

2019 pf

Q1-20 pf

Q2-20 pf

Q3-20 pf

Q4-20

2020

Net banking income

194

124

123

6

447

6

(50)

(33)

132

55

Operating expenses

(762)

(265)

(272)

(328)

(1,626)

(613)

(245)

(198)

(288)

(1,345)

Gross operating income

(567)

(141)

(149)

(322)

(1,179)

(607)

(295)

(232)

(156)

(1,290)

Cost of risk

(8)

(7)

(9)

7

(18)

(8)

(44)

(38)

(20)

(110)

Share in income of associates

31

61

48

70

209

51

43

48

71

212

Net gains or losses on other assets

(13)

(12)

(3)

22

(7)

3

(137)

16

9

(109)

Income before tax

(646)

(100)

(114)

(224)

(1,083)

(561)

(433)

(205)

(96)

(1,297)

Net income –
excl. Coface net contribution

(566)

(31)

(5)

(128)

(730)

(422)

(302)

(130)

(3)

(857)

Coface – Net contribution

11

13

12

9

44

(83)

(19)

(29)

(5)

(136)

Net income – Group share

(556)

(19)

6

(119)

(687)

(505)

(321)

(159)

(7)

(993)


DISCLAIMER

This press release may contain forward-looking statements and comments relating to the objectives and strategy of Groupe BPCE. By their very nature, these forward-looking statements inherently depend on assumptions, project considerations, objectives and expectations linked to future events, transactions, products and services as well as on suppositions regarding future performance and synergies.
No guarantee can be given that such objectives will be realized; they are subject to inherent risks and uncertainties and are based on assumptions relating to the Group, its subsidiaries and associates and the business development thereof; trends in the sector; future acquisitions and investments; macroeconomic conditions and conditions in the Group’s principal local markets; competition and regulation. Occurrence of such events is not certain, and outcomes may prove different from current expectations, significantly affecting expected results. Actual results may differ significantly from those anticipated or implied by the forward-looking statements. Groupe BPCE shall in no event have any obligation to publish modifications or updates of such objectives.
Information in this press release relating to parties other than Groupe BPCE or taken from external sources has not been subject to independent verification; the Group makes no statement or commitment with respect to this third-party information and makes no warranty as to the accuracy, fairness, precision or completeness of the information or opinions contained in this press release. Neither Groupe BPCE nor its representatives shall be held liable for any errors or omissions or for any harm resulting from the use of this press release, the content of this press release, or any document or information referred to in this press release.
The financial information presented in this document relating to the fiscal period ended December 31, 2020 has been drawn up in compliance with IFRS standards, as adopted in the European Union. This financial information is not the equivalent of summary financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting”.
Preparation of the financial information requires Management to make estimates and assumptions in certain areas with regard to uncertain future events. These estimates are based on the judgment of the individuals preparing this financial information and the information available at the balance sheet date. Actual future results may differ from these estimates.
The extent and duration of the waves of infection caused by the new coronavirus behind the Covid-19 pandemic have already affected, and are likely to affect with even greater severity, the economic situation of many business sectors and lead to considerable disruption in the financial markets. The countries affected by the pandemic are also being forced to adopt containment measures ranging from localized restrictions on mobility or activity to strict stay-at-home orders for the population, greatly reducing the activities of many operators. The future development of the Covid-19 situation is a major source of uncertainty.
In view of this particular context, it should be specified that the expected credit losses (IFRS 9 provisions) and the substantial increase in credit risk have been appraised in the light of forward-looking information based on a macroeconomic scenario updated in September last year, combined with expert assessments of the impact of specific downturns in certain sectors of the economy.
Readers must take all these risk factors and uncertainties into consideration before making their own judgment.
This presentation has been prepared for information purposes only. It does not constitute an offer to buy, or the solicitation of an offer to sell any securities of Natixis, or an offer to sell, in any jurisdiction, including France. This document is not meant to be disseminated in any jurisdiction other than France, except in those jurisdictions where such dissemination is authorised by applicable laws and regulations.
Pursuant to French laws and regulations, the Offer and the draft offer document, which sets out the terms and conditions of the Offer, will be filed with the Autorité des Marchés Financiers (AMF). The Offer and the draft offer document will be subject to review by the AMF and the Offer can only be opened once approved by the AMF.
The dissemination, publication, or distribution of this presentation, as well as that of the Offer and its acceptance, may be subject to specific regulations and restrictions in certain jurisdictions. The Offer will not be addressed to those persons directly or indirectly subject to such restrictions. The Offer may not be accepted in any jurisdiction where the Offer is subject to such restrictions. Accordingly, persons who come into possession of this presentation should inform themselves of and observe these local restrictions. BPCE and J.P. Morgan disclaim any responsibility or liability for the violation of any such restrictions by any person.
To the extent permissible under applicable laws and regulations, including Rule 14e-5 under the U.S. Securities Exchange Act, BPCE and its affiliates or its broker(s) (acting as agent or in the name and on behalf of BPCE and its affiliates, where applicable) may from time to time after the date of filing of the Offer, including other than pursuant to the Offer, directly or indirectly purchase any equity-linked securities. These purchases may occur either in the open market, on the basis of an order made at the Offer price, or in off-market transactions at a price per share equal to the Offer price. In no event will any such purchases be made for a price per share that is greater than the Offer price. No purchases will be made outside of the Offer in the United States of America by or on behalf of BPCE or its affiliates. In addition, the financial advisers to BPCE may also engage in ordinary course trading activities in securities of Natixis, which may include purchases or arrangements to purchase such securities.
The audit procedures relating to the consolidated financial statements for the year ended December 31, 2020 have been substantially completed. The reports of the statutory auditors regarding the certification of these consolidated financial statements will be published following the verification of the Management Report and the finalization of the procedures required for the universal registration document.

About Groupe BPCE
Groupe BPCE, with its business model as a universal cooperative bank represented by 9 million cooperative shareholders, is currently the 2nd-largest banking group in France. With its 105,000 employees, it serves a total of 36 million customers – individuals, professionals, corporates, investors, and local government bodies – around the world. It operates in the retail banking and insurance sectors in France via its two major Banque Populaire and Caisse d’Epargne banking networks, along with Banque Palatine. With Natixis, it also runs global business lines specializing in Asset & Wealth management, Corporate & Investment Banking, Insurance and Payments. Through this structure, it is able to offer its customers a comprehensive, diversified range of products and services: solutions in savings, investment, cash management, financing, and insurance. The Group's financial strength is recognized by four financial rating agencies: Moody's (A1, outlook stable), Standard & Poor's (A+, outlook negative), Fitch (A+, outlook negative), and R&I (A+, outlook stable).

Groupe BPCE press contact
Christophe Gilbert: 33-1 40 39 66 00
Email: christophe.gilbert@bpce.fr

Groupe BPCE analyst relations
Roland Charbonnel: 33-1 58 40 69 30
François Courtois: 33-1 58 40 46 69
Email: bpce-ir@bpce.fr

groupebpce.com

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