Results for the 1st half and 2nd quarter of 2022

KEY FIGURES

H1-22: 5.5% growth in net banking income to €13.1bn buoyed up by sustained business development
Net income of €2.1bn, +13.9% vs. H1-21

Q2-22: 3.6% growth in revenues to €6.6bn
Net income of €1.3bn, +1.6% vs. Q2-21

Cost/income ratio¹ equal to 64.6% in H1-22 and 63.9% in Q2-22 reflecting year-on-year improvement

BUSINESS LINES/ACTIVITIES

Retail Banking & Insurance: continued development of the customer base in the Banques Populaires and Caisses Épargne networks and success of the cross-selling strategy; 6% growth in net banking income in H1-22

• Very dynamic financing of local and regional France: 8.1% increase in loan outstandings YoY
• Insurance: net inflows of €3.5bn in life insurance, 6% growth in non-life insurance premiums
• Financial Solutions & Expertise: continued strong growth in business, +10% growth in net banking income vs. H1-21
• Digital Inside: 9.9 million active clients on mobile devices, +24% vs. June 2021; an average of 48 million visits per week on digital channels in H1-22

Global Financial Services: 2.3% revenue growth vs. H1-21 in a difficult market environment.
Continued rollout of key franchises in AM and CIB.

• Asset & Wealth Management: revenues stable vs. H1-21 thanks to the diversified expertise model; €1,107bn of assets under management at the end of June 2022 for Natixis IM; limited global outflows of €1.7bn in Q2-22; good momentum on ESG and Equity expertise in Europe
• Corporate & Investment Banking: successful diversification strategy; net banking income up 4% in H1-22 YoY. 10% growth in H1-22 revenues of Global Markets buoyed up by FIC-T, driven by the development of the Flow and Equity businesses; H1-22 net banking income up 9% YoY for Global Finance driven by Real Assets and Global Trade

P&L/CAPITAL

Strict control of expenses: cost/income ratio of 64.6%¹ in H1-22, excluding the SRF, down 1.5pp year-on-year
Continued prudent provisioning policy and low cost of proven risk:

• Group cost of risk of €881m in H1-22, or 22bps, and €457m in Q2-22, including €199m of additional provisions for future risks Stage 1 / Stage 2
• Group cost of proven risk of €543m in H1-22, or 14bps vs. 19bps in H1-21

Very high solvency level: CET1² ratio of 14.9% at end-June 2022, integrating sustained business line development

STRATEGY

Strategic initiatives in digital services:

Plans to merge Bimpli with SWILE, a digital worktech player, to create a global leader in the sector. If the deal goes ahead, Groupe BPCE will be the No.1 shareholder of the new entity.

Participation in the first round of financing of the French fintech company Bridge to support innovation in open banking
 

Laurent Mignon, Chairman of the Management Board of Groupe BPCE, said: “One year after the launch of our BPCE 2024 strategic plan, all our companies and business lines are pursuing their development in a globally more adverse environment in line with the objectives we have set ourselves, while remaining prudent in the management of our risks. We are helping to finance the French economy through the activities of the Banques Populaires and Caisses d'Epargne at a local and regional level. Our global business lines are continuing to expand thanks, in particular, to the diversification of our expertise and despite a difficult market environment.
The Group is well prepared and determined to continue to support its customers by placing environmental and social issues at the heart of its actions.
Groupe BPCE, along with its cooperative shareholders, employees and partners, will play its role to the full in striving to meet society's expectations in the current context of far-reaching change.”

^{1 Underlying and excluding Single Resolution Fund – See note on methodology
2 Estimated ratio at end June 2022}