1st quarter 2022 results of Groupe BPCE

May 12, 2022

Continued good sales momentum in all our business lines: revenues up 7.5% to €6.6bn

Strict control of expenses, with a cost/income ratio of 65.3%1, down 2.4pp YoY

Continued pursuit of a cautious provisioning policy

Net income of €785m, up +43.1% vs. Q1-21

Retail Banking & Insurance: very good level of activity in all our business lines. The Banques Populaires and Caisses d'Epargne have gained new customers in all market segments compared to the same period last year. Growth in net banking income1 came to 7.5% in Q1-22

  • Continued active support for the French economy throughout the different territories: 7.1% year-on-year increase in loan outstandings,
  • Insurance: revenue growth of 6.9% and net inflows of €2.1bn in Life Insurance,
  • Financial Solutions & Expertise: strong +11.7% revenue growth vs. Q1-21,
  • Digital Inside: 12.6 million active clients on digital channels, including 9.5 million active clients on mobile devices, i.e. +25% vs. end-March 2021

Global Financial Services: continued rollout of key franchises and 4.6% revenue growth in a more volatile market environment

  • Asset & Wealth Management: 5.3% growth in net banking income vs. Q1-21; €1,188bn of assets under management at the end of March 2022 for Natixis IM; positive inflows of ~€1bn in Q1-22, 8th consecutive quarter of positive inflows on long-term products; continued development of private assets and the share of ESG assets in total assets is up 34%,
  • Corporate & Investment Banking: development of business activities in line with our strategy, continued diversification and development of Green revenues. 4% growth in net banking income in Q1-22 YoY. Global Markets revenues up 52% compared with Q4-21 and up 2% vs. Q1-21, a period representing a high basis of comparison; net banking income up 16% YoY for Global Finance driven, in particular, by the Real Assets activity. 4% growth in Investment Banking/M&A revenues YoY. Green revenues enjoyed +78% growth compared with the same period last year.

Very tight control of expenses (excluding the Single Resolution Fund), with the cost/income ratio standing at 65.3%1 at the end of March 2022, down 2.4pp year-on-year

 Continued pursuit of a cautious provisioning policy

  • Cost of risk for the Group as a whole stood at €424m in Q1-22, or 21bps, down 13.5% vs. Q1-21, including €140m of additional provisions for future risks in S1/S2 and €69m for counterparties in Russia and Ukraine,
  • Decline in the Group's cost of incurred credit risk to 14bps in Q1-22 vs. 16bps in Q4-21 and 21bps in Q1-21.

High level of capital adequacy: CET12 ratio stood at 15.2% at end-March 2022, integrating both the extremely dynamic development of business line activities and the impact of regulations (notably the inclusion of IPC).

Laurent Mignon, Chairman of the Management Board of Groupe BPCE, said: “Our Group continues to support its customers in all its different territories. This support finds expression in the ongoing development of our franchises and is reflected in the good results of the first quarter of this year. Groupe BPCE, a robust and recently streamlined banking group, is fully committed, with its employees, customers and cooperative shareholders, to supporting the sustainable development of the French economy and pursuing the implementation of its strategic plan despite the current uncertainties in the geopolitical and economic environment.”

1 Underlying metric and excluding contributions to the Single Resolution Fund – See notes on methodology 2 Estimate at end-March 2022