Q1-24 results of Groupe BPCE

KEY FIGURES¹

Q1-24: Net banking income of €5.8bn, almost stable vs. Q1-23 and up 5% vs. Q4-23; continued momentum in Retail Banking & Insurance activities and positive impact of asset repricing in the networks; robust performance for Corporate & Investment Banking and Asset Management businesses.

Reported net income of €875m, up 64% YoY and x2.3 QoQ (-22% excluding SRF contribution)

Solvency remains very high with a CET1 ratio of 15.6%², including organic capital creation of 14bps during the quarter

BUSINESS LINES / ACTIVITIES¹

Retail Banking & Insurance: growth in the client base of the Banque Populaire and Caisse d'Epargne networks across all market segments; dynamic conquest with 241,000 new customers³ despite a slowdown in mortgage lending. Net banking income down by a limited 4% vs. Q1-23 thanks to the effects of loan repricing related to the cost of liabilities

• Local & regional financing: loan outstandings up 2% YoY to €717bn at end-March 2024
• Clients’ deposits⁴ up 2% YoY to €675bn at end-March 2024, up by €13bn
• Insurance: sustained gross inflows of €4.6bn in life insurance in Q1-24. Premiums up 39% vs. Q1-23.  Client equipment rate⁵ for P&C and personal protection insurance stood at 34.4% at end-March 2024, +0.3% YoY
• Financial Solutions & Expertise: net banking income up 4% vs. Q1-23, driven in particular by the Leasing and Factoring businesses
• Digital & Payments: +5% increase YoY in the number of card transactions at end-March 2024; roll-out of Tap to Pay to all our clients

Global Financial Services: revenues up 4% vs. Q1-23; continued growth in the Corporate & Investment Banking business and solid rebound in Asset Management

• Corporate & Investment Banking: net banking income of €1.1bn, up 3% vs. Q1-23; revenues for Global Markets stable vs. Q1-23 in a more sluggish market; 11% growth in net banking income for Global Finance and 24% for Investment Banking in Q1-24 YoY
• Asset & Wealth Management: 5% YTD growth in Natixis IM assets under management, reaching €1,225bn at end-March 2024; net inflows of €6bn in Q1-24 driven notably by fixed-income expertise; strong growth in net banking income, +7% vs. Q1-23 at constant exchange rates.

P&L / CAPITAL¹

Expenses down 10% vs. Q1-23 (up 3.7% excluding SRF contribution)

Cost of risk: €382m in Q1-24, or 18bps, including reversals of provisions and higher provisions for occurred risks, reflecting the economic environment in certain sectors and Groupe BPCE's position in its markets

Financial strength: CET1 ratio of 15.6%³ at end-March 2024, including the full estimated dividend for 2024; liquidity reserves stand at €324bn

STRATEGIC DEVELOPMENTS

Project⁶ to acquire the activities⁷ of Société Générale Equipment Finance (SGEF) in line with Groupe BPCE's strategy to develop Specialized Financing services in Europe

• SGEF, an international player in the equipment leasing segment, is present in 25 countries with a distribution model based on a network of vendors, directly and through banking partnerships.

• With this project, Groupe BPCE will become the European leader in the equipment leasing market

Natixis Corporate & Investment Banking announces the extension of Natixis Partners' participation in Clipperton, a boutique specializing in mergers & acquisitions advisory services in the tech sector.

Nicolas Namias, Chairman of the Management Board of BPCE, said: “The first quarter of the year was marked by Groupe BPCE’s strong performance, with a sharp rise of the reported net income. The Banques Populaires and Caisses d'Epargne played their role to the full in support of their customers and the French economy through the multiplication of initiatives, to accompany first-time buyers and condominium unit owners in the real-estate sector or the implementation of exceptional emergency measures to assist farmers. Natixis CIB and Natixis IM, our global business lines, both performed extremely well. The Group’s net income also reflects our tight control over expenses, a continuing low cost of risk, even if it reflects the economic environment in certain sectors and the leading position of our regional banks in their markets; it also reflects the impact of the discontinuation of Single Resolution Fund contributions after 10 years of making significant payments into this instrument designed to ensure the stability of the banking system.

Buoyed up by the dynamism of its business lines and the final drafting of its strategic plan – to be published on June 26 later this year – Groupe BPCE is already on the move with the announcement of a major strategic operation for its future growth with the project to acquire SGEF, making it the European leader in equipment leasing solutions. We have also announced the continuation of an international M&A franchise with the renewal of the partnership between Natixis CIB and Clipperton.

When, at this moment, the Olympic Flame is sailing across the Mediterranean on the three-masted of the Belem Caisse d'Epargne Fundation, accompanied by 16 young people from every region of France, Groupe BPCE’s 100,000 employees are preparing to welcome the Olympic & Paralympic Games to France. As a premium partner of this event, we are mobilizing all our energies and expertises to ensure that the Games become an unforgettable moment of national harmony and pride.”

^{1 See the notes on methodology appended to this press release 2 Estimated figures at end-March 2024 3 +17.700 additional active clients since the beginning of the year 4 On-balance sheet deposits and savings within the scope of the Retail Banking & Insurance business unit 5 Within the scope of individual clients banking with the BP and CE 6 This project is subject to applicable social procedures and the approval of the relevant regulatory and competition authorities 7 Excluding SGEF’s interests in the Czech Republic and Slovakia}