Groupe BPCE - Results for the 1st quarter of 2021
10.4% growth in revenues to €6.1bn
Reported net income up threefold to €548m and underlying net income of €1,009m
Strict discipline on operating expenses, with a cost/income ratio of 67.1%1
Stable cost of risk, illustrating a prudent provisioning policy
Rollout of the Group simplification project according to plan
Retail Banking & Insurance: 5.3% growth in revenues and gross operating income up 15.4%
- Loan outstandings: up 11.3% year-on-year, including +8.3% for residential mortgages, +2.6% for consumer loans and +5.6% for equipment loans
- Insurance: 5.1% growth in revenues, premium growth of 32% and gross operating income growth of 7.4%
- Financial Solutions & Expertise: gross operating income up 5.8%, notably driven by Leasing activities
Asset & Wealth Management: assets under management of €1,153bn2 at end-March
- Net inflows of €6 billion in LT products driven by Fixed Income, Equity and ESG strategies
- Net banking income up 4.9% year-on-year at constant exchange rates
Corporate & Investment Banking: revenues up 43.3% year-on-year at constant exchange rates
- Growth in Global Markets revenues reflected good performances in FIC-T and Equity businesses and a favorable basis of comparison
- Global Finance year-on-year revenues up 13%, driven by business with corporates and in the Infrastructure segment
- Gross operating income of €364 million
Control of operating expenses: positive jaws effect generating a cost/income ratio of 67.1%
- Limited 0.8%3 increase in operating expenses year-on-year
- Expenses stable in the Banque Populaire and Caisse d'Epargne networks
- Cost/income ratio of 58.6% in the Corporate & Investment Banking division
Pursuit of a resolutely prudent provisioning policy
- Group cost of risk equal to €490 million, representing 26 bps vs. 29 bps in Q1-20
- Occurred risk (S3): marginal increase in Retail Banking & Insurance and a significant reduction in the Corporate & Investment Banking division
Very robust capital position, well above regulatory requirements
- CET14 ratio of 16.1% at end-March 2021, 492 bps above the MDA trigger threshold
Group simplification project5 well on track, AMF approval received on April 15 for the tender offer on Natixis shares not already held
Next strategic plan to be presented in July 2021
Laurent Mignon, Chairman of the Management Board of Groupe BPCE, said: “I would like to pay tribute once again to the commitment of all our teams, who have continued to demonstrate their strong motivation and great efficiency in serving all our customers in all our business lines. We will resolutely continue, as Banques Populaires and Caisses d’Epargne have done until now, to support the recovery and the turnaround of the French economy. The Group, which is highly capitalized and has completed its transformation, is now embarking on its simplification of its structures in order to provide to all its businesses the resources they need to develop their activities.”
1. See note on methodology and excluding the Coface contribution
2. Excluding H2O AM
3. Excluding direct regulatory costs
4. Estimate at end-March 2021
5. This change is subject to obtaining the approval of the relevant regulatory authorities
Find more information on : https://groupebpce.com/en/investors/results-and-publications/results-presentations
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About Groupe BPCE
Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A, stable outlook), Fitch (AA-, negative outlook) and R&I (A+, stable outlook).
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