Paris, August 3, 2021 Results for the 2nd quarter and 1st half of 2021

August 3, 2021

H1-21: revenue growth of 16% to €12.5bn driven by all the business lines
after a first half of 2020 impacted by the crisis

Reported and underlying net income1 of €1.9bn and €2.2bn respectively

Positive jaws effect: cost/income ratio at 67.0%1

Reported Q2-21 results1: net banking income up 22% to €6.3bn, with net income at €1.3bn

Project to streamline the Group’s organization proceeding on schedule

Retail Banking and Insurance: strong commercial momentum in all business lines, very good performance in the BP and CE retail banking networks, revenues up by 10% in Q2-21 and by 7.6% in H1-21

  • Loan outstandings: up 7.8% YoY, including +8.6% in residential mortgages, +6.8% in consumer credit, and +5.8% in equipment loans
  • Insurance: revenue growth of 5.9% in H1-21, and a 50% increase in premiums
  • Financial Solutions & Expertise: net banking income up 8.4% in H1-21, dynamic activity in all business lines
  • Digital: further growth in the take-up of digital tools in BP / CE networks with 12m active customers (+14% vs. end-2020)

Global Financial Services : revenues up 30.5% in H1-21

  • Asset & Wealth Management: assets under management equal to €1,183bn at end-June for Natixis IM, up 3% QoQ
    Five consecutive quarters of positive net inflows on LT products, representing a total of €26bn over the period
    H1-21 net banking income up 15.4% year-on-year at constant exchange rates
  • Corporate & Investment Banking (Natixis CIB) : strong commercial activity and enhanced cost of risk
    Growth in Global Market revenues, including good performances in FIC-T and Equity and a favorable baseline effect
    Global Finance revenues up 22% year-on-year in Q2-21, driven by Trade Finance and Infrastructure activities
    Gross operating income equal to €700 million in H1-21

Positive jaws effect: cost/income ratio of 67.0% in H1-21, down 7pp vs. H1-20

  • Operating expenses up 5.0%3 year-on-year, in line with the recovery in business activities

Continued prudent provisioning policy

  • Group cost of risk of €822m in H1-21, or 22bps, down 45% vs. H1-20 and up 35% vs. H1-19
  • Group cost of risk of €332m in Q2-21, or 17bps

Capital adequacy level at end-June above their target for the end of 2021

  • CET12 ratio at 15.6% at end-June 2021 including the full impact of the Natixis share buyback operation
  • Generation of organic of CET1 ratio equal to 13bps in Q2-21

Launch of Groupe BPCE's new strategic plan on July 8: an ambitious growth plan to support the recovery of the French economy and the needs of our customers 

Commitment to climate action: Groupe BPCE joins the “Net Zero Banking Alliance”

On August 3rd, Moody’s affirmed the A1 long term senior preferred rating with a stable outlook; on July 21st, R&I has affirmed the A+ long term senior preferred rating with a stable outlook

Project to simplify the Group's organization:

  • Delisting of Natixis shares on July 21, 2021
  • Finalization of the study3 on the acquisition by BPCE of the Insurance and Payments activities of Natixis

Laurent Mignon, Chairman of the Management Board of Groupe BPCE, said: “The strong commercial momentum observed in the 1st quarter of the year gathered pace in the 2nd quarter in all our business lines and all our customer segments. Our presence alongside our customers, and the massive support we provided them at the height of the crisis in 2020 is now bearing fruit with a sharp increase in our financing activities responding to their new needs associated with the economic recovery. Our “BPCE 2024” strategic plan has a good start and, as of this quarter, we have taken very tangible steps in favor of the energy transition, which will enable us to answer to the strong expectations of society at large in this area. With the delisting of Natixis, we have taken a decisive step this quarter in our drive to simplify our corporate structure, a project to which we will be devoting our energies over the next few months in order to complete the creation of a powerful and innovative multi-brand cooperative banking group, pursuing strong strategic ambitions at the service of its customers, its employees, and its cooperative shareholders.”

1 See note on methodology and excluding the Coface contribution 2 Estimate at end-June 2021 3 Any project resulting from this study will be submitted, if required, to the relevant social & economic committees for consultation purposes