Groupe BPCE 4th quarter and annual results 2019

February 6, 2020

Results for Groupe BPCE 4th quarter and annual results 2019 (extract from the press release)

Results for the 4th quarter and full year 2019

Robust Q4-19 performance: 7.8% revenue growth to €6.3bn

Operating expenses declined by 0.9% to €4.6bn

 Strong 34.2% growth in reported net income to €789m

Reported revenues increased by 1.3% in 2019 to €24.3bn, and net income of €3bn


Retail Banking & Insurance: strong commercial dynamism and enhanced profitability

  • 8.2% year-on-year growth in loan outstandings
  • 7.2% revenue increase generated by Financial Solutions & Expertise in Q4-19, up by 2.6% in 2019
  • Continued strong growth enjoyed by the Insurance (7.1%) and Payments businesses (8.5%) in 2019
  • Improvement in the cost to income ratio thanks to the tight cost control in the Banques Populaires banks and Caisses d’Epargne

Asset & Wealth Management: strength of the multi-boutique business model

  • Net inflows of €3bn on long-term products in Q4-19 both in Europe and in the United States
  • Fee rate on assets under management in line with the strategic target of 30 basis points

Corporate & Investment Banking: positive jaws effect in Q4-19 and in full year 2019 with a strong business recovery at the end of the year

  • 16% growth in revenues1 in Q4-19, including 40% for Global markets
  • Historically high quarter for Investment Banking and M&A activities

Cost of risk at a low level in 2019 at 19 basis points on loan outstandings, stable vs. 2018

High level of capital adequacy, well above the regulatory requirements

  • Rise in the CET1 ratio2 to 15.6%, with TLAC2 and MREL2 ratios at 23.3% and 29.2% respectively at end-2019

A streamlined group on the move: proven ability to transform itself…

  • 2020 target of €1bn in cost synergies already achieved at end-2019 and growth in revenue synergies thanks to the bancassurance business model finalized this year
  • Successful completion of simplification projects
  • Acquisition of a 50.1% stake in the capital of Oney Bank in October 2019
  • Creation of a major player in asset management with the merger between Ostrum and La Banque Postale Asset Management

… and to innovate for the benefit of its customers and for its social commitments

  •  “Digital Inside” strategy recognized by the D-rating agency, which ranks Groupe BPCE in the digital transformers category
  • Innovation in favor of the energy transition with notably the Green Weighting Factor created by Natixis

Laurent Mignon, Chairman of the Management Board of Groupe BPCE, made the following statement: "Thanks to the confidence of our customers and the energy of all our people, the Group’s three core business lines achieved an extremely good commercial performance in the 4th quarter of last year and throughout 2019 as a whole. Our two major retail banking networks pursued their development and continued to roll out digital tools for our customers’ benefit; the Asset Management division recorded positive net inflows this quarter; and the Corporate & Investment Banking business lines were extremely dynamic. At the same time, we kept costs under tight control, generated positive jaws effects in all our businesses, thereby enhancing the Group's profitability. 2019 was also a highly eventful year regarding the completion of strategic projects to streamline our structures and pave the way for our Group’s future development, notably with the acquisition of a majority stake in Oney Bank, the finalization of our insurance banking model, or the creation by Natixis, in partnership with La Banque Postale, of a major player in insurance-related asset management in Europe. Finally, the Group, which is deeply committed to sustainable growth, continued to take major initiatives in favor of the energy transition and in the area of social responsibility.”


1 Adjusted in Q4-18 to account for the non-recurring impact of - €259m on Asian equity derivatives
2 Estimate at December 31, 2019

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