Results for full-year 2014

February 19, 2015

Results for full-year 2014: strong performance achieved by Groupe BPCE in 2014, with a sharp rise in income before tax of €5.6bn, up +9.5% compared with 2013, and net income attributable to equity holders of the parent of €3.1bn (+5.9% year-on-year)

 

  • Buoyant commercial activities 
    • Banque Populaire and Caisse d’Epargne retail banking networks
      • On-balance sheet deposits & savings[1] enjoyed net fund inflows > €20bn in 2014
      • Loan outstandings rose 3.0% year-on-year, equal to an increase of €11bn
    • Insurance
      • Dynamic growth in the portfolio of non-life, provident and health insurance contracts, +9.3%
      • Recovery in new life insurance inflows in 2014, with a 4.0% increase in total life funds under management
    • Private banking
      • 6.5% growth in private banking assets under management year-on-year
    • Core business lines of Natixis
      • Wholesale Banking: net revenues up by 3.7% in 2014, new loan production of €28bn in Structured financing and strong growth in equity derivatives
      • Investment Solutions: 15.2% revenue growth in 2014, record-breaking net asset management inflows of €32bn year-on-year (excluding money market funds)
      • SFS: product offering rolled out in the retail networks, increased consumer finance outstandings (+9%) and growth in assets under management in employee benefit schemes (+6%)
  • A robust basis of results in 2014 
    • Cost/income ratio down 0.7 percentage points to 69.2%
    • 6 basis-point decline in the annual average cost of risk to 29 basis points in 2014
    • Income before tax up 9.5% year-on-year, to €5.6bn
  • Sharp improvement in capital adequacy and continued strengthening of liquidity
    • High level of capital adequacy: Common Equity Tier-1 ratio[2] of 12.0% (+160bps in 2014) and a total capital adequacy ratio[2] of 15.6% (+250bps in 2014))
    • Leverage ratio[3] of 4.5% at Dec. 31, 2014
    • Customer loan/deposit ratio stood at 121%[4] at Dec. 31, 2014
    • Liquidity reserves cover 120% of short-term funding and MLT & subordinate maturities ≤ 1 year

On February 18, 2015, the Supervisory Board of Groupe BPCE convened a meeting chaired by

Stève Gentili to examine the group’s financial statements for the full year and 4th quarter of 2014.

François Pérol, Chairman of the Management Board of Groupe BPCE, said: “2014 was a good year for Groupe BPCE, a dynamic and constructive period. Commercial activities were buoyant in France despite a sluggish economic environment. Growth in savings inflows via the Banque Populaire and Caisse d’Epargne retail banking networks was greater than growth in loan outstandings, which increased by 3%. Natixis, for its part, performed extremely well in all its core business lines – Wholesale Banking, Investment Solutions, and Specialized Financial Services – with an overall increase in net revenues of 7.5% last year. This performance, buoyed up by tight control over operating expenses and a reduced cost of risk, explains the 5.9% growth in net income attributable to equity holders of the parent to a total of 3.1 billion euros. 2014 also saw a substantial reinforcement of the group’s liquidity and capital adequacy (with a Common Equity Tier-1 ratio of 12%). Our strategic plan is also being implemented in a satisfactory manner in an economic and financial environment that will continue to require a great deal of attention in 2015.”

 

Footnotes

  1. ^ Excluding centralized savings
  2. a, b Estimate at Dec. 31, 2014 – CRR/CRD4 without transitional measures and after restatement to account for deferred tax assets
  3. ^ Estimate at Dec. 31, 2014 according to the rules of the Delegated Act published by the European Commission on October 10, 2014 - without CRR / CRD 4 transitional measures after restatement of deferred tax assets
  4. ^ Customer loan/deposit ratio stood at 121%[1] at Dec. 31, 2014[1] Excluding SCF (Compagnie de Financement Foncier, the Group’s société de crédit foncier – a French legal covered bonds issuer)

Contact