Full-year 2023 and Q4-23 results of Groupe BPCE

KEY FIGURES¹

2023: net banking income of €22.2bn, -7% vs. 2022, decrease anticipated starting 2023 related to the trend of cost of liabilities on both regulated and unregulated savings; continued asset repricing thanks to new loan production; strict control of expenses, -2% vs. 2022; net income² of €2.8bn

Q4-23: net banking income of €5.5 bn, stable vs. Q3-23; costs down by 2% vs. Q4-22; net income² of €381m

Ongoing improvement of solvency, at the highest standard: CET1 ratio of 15.6%³ at end-December 2023, +16bps QoQ and +53bps organic capital generation YoY

BUSINESS LINES / ACTIVITIES¹

Retail Banking & Insurance: 925,000 new clients⁴ in 2023 in the Banque Populaire and Caisse d'Epargne retail banking networks; continued commercial momentum with Insurance and Specialized Financing; net banking income down
8% vs. 2022 with the faster rise in the cost of liabilities than the return on assets

• Financing territories: 3% YoY increase in loan outstandings, rising to €719bn at end-December 2023
• Clients’ deposits⁵ up 3% at end-December 2023 YoY, i.e. +€21bn, rising to €676bn
• Insurance: sustained gross in life insurance inflows at €12.7bn in 2023. Premiums up 14% vs. 2022.
  Client equipment rate⁵ for P&C and personal protection insurance reached 34.1% at the end of December 2023, +0.9% YoY
• Financial Solutions & Expertise: net banking income up +11% vs. 2022, driven by financing activities
• Digital & Payment: leadership in payment technologies, with the launch of Tap to Pay solution, the instant account-to-account payment transactions through EPI solution and the ticketing payment system for the Olympic and Paralympic Games Paris 2024

Global Financial Services: 3% revenue growth in 2023 and Q4-23 YoY at constant exchange rates; strong performance for CIB and good resilience for AWM in a challenging environment for this industry in 2023

• Corporate & Investment Banking: net banking income of €4bn in 2023, up 9% in Q4-23 YoY at constant exchange rates; good performance of Global Markets in 2023; net banking income up 20% in Global Finance and 21% in Investment Banking and M&A vs. Q4-22
• Asset & Wealth Management: 8% increase YtD in Natixis IM assets under management, reaching €1,166bn at end-December 2023; net inflows of €12.9bn in 2023 (excluding life insurance and money market products); net banking income down by 3% in 2023 and in Q4-23 YoY at constant exchange rates

P&L / CAPITAL¹

Very tight management in expenses: down by 2% in 2023 and in Q4-23 YoY

Low cost of risk and continued prudent provisioning policy: -12% in 2023 to €1,731m, or 20bps, including limited reversals of provisions and higher provisioning for occurred risk.

Financial strength: CET1 ratio of 15.6%³ at end-December 2023, +16bps vs. end-September 2023 notably thanks to earnings generation in Q4-23; liquidity reserves stood at €302bn at end-2023.

Nicolas Namias, Chairman of the Management Board of BPCE, said: “As anticipated, Groupe BPCE's financial performance was marked in 2023 by the transition period due to rapid rise in interest rates; this impact reflects the position we have in the financing of the French economy. With our model based on fixed rates financing, we are proud to have played our full role in protecting the purchasing power for clients of the Banques Populaires and Caisses d’Epargne. Thanks to particularly dynamic sales activity across all client segments, our two retail banking networks have continued to expand their client bases, enabling to pursue actively the rollout of our Insurance and Specialized Financing businesses. In our global business lines, Natixis CIB continued its sustained and carefully managed development and recorded annual revenues at an unprecedented level, while Asset Management achieved a robust performance with positive net inflows on long-term products in a challenging context for the industry in 2023.

This quarter once again, our Group further consolidated its already high level of financial strength, leaving it well placed to prepare the future and pursue its growth strategy.

I would like to thank the 100,000 employees of Groupe BPCE both in France and in the international areas for their day-to-day commitment in favor of our clients. They are contributing to make our Group a central player in the economy, performing a key role in addressing the different environmental, technological and social challenges.”

¹ See the notes on methodology annexed to this press release ² Group share ³ Estimated figures at end-December 2023 ⁴ 228,000 additional active clients over the past 12 months ⁵ On-balance sheet deposits and savings within the scope of the Retail Banking & Insurance business unit ⁶ Within the scope of individual clients banking with the BP and CE