Results for the 1st quarter of 2020

Retail Banking & Insurance: revenue growth of almost 2% driven by a good level of commercial activity

• Loan outstandings: up 8.4% year-on-year
• Financial Solutions & Expertise: 6.8% growth in net banking income
• Insurance and Payments: enhanced revenues of +4.5% and +9.1% respectively

Asset & Wealth Management: strength of the multi-affiliate business model

• Net banking income: growth of +9% excluding seed money
• Fee rate on assets under management: around 29bps

Corporate & Investment Banking: diversification of sources of revenue and tight cost management (-3.8%)

• Revenues down by 14.8% with contrasting evolutions per business lines
• Global markets activities: FICT posted 46% revenue growth: Equity derivatives business impacted by market conditions
• Investment Banking/M&A reports 19% revenue growth, buoyed up by the multi-boutique business model; Global finance business resists well

Cost of risk up 77%, reflecting the first effects of the crisis

• Increase in the cost of risk from 17bps in Q1-19 to 29bps in Q1-20

Solvency and liquidity: ability to absorb significant shocks

• CET1 ratio² at 15.5% virtually stable vs. Dec. 31, 2019, TLAC² and MREL² ratios at 23.4% and 29.8%
• LCR³ at 138% and liquidity reserves of €247bn
• Nearly 50% of 2020 MLT funding plan already completed

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Groupe BPCE is well-equipped to weather this unprecedented crisis

• A robust financial position: CET1 ratio (15.5%²), 464bps above regulatory requirements⁴, representing 47bp increase in the capital buffer of Groupe BPCE
• A diversified business model
• Significant capacity to finance our customers: leverage ratio at 5.2%

As of mid-March, all the Group’s companies mobilized to support our customers and communities

• Proactive automatic 6-month deferment of equipment loans: more than 500,000 loan installments deferred, equal to €5bn in monthly payments.
• State-guaranteed loan: around 130,000 requests for loans processed for an aggregate total exceeding €22bn
• Insurance: 4,000 customers eligible for a guarantee in the event of administrative closure due to an epidemic, representing a total of 180 million euros
• Mobilization of Group employees: nearly 90% of our branches remain open in all territorries with a dedicated employee protection organization; nearly half of our employees working from home
• Digital Inside strategy enabled a continuous and adapted access to all our customers during lockdown. Groupe BPCE’s leadership in France in terms of mobile banking during this period highlighted by the D-Rating agency.
• Global solidarity with frontline professionals with, in particular, the donation of 5 million masks

Laurent Mignon, Chairman of the Management Board of Groupe BPCE, made the following statement: “Groupe BPCE entered this crisis with robust fundamentals regarding its capital adequacy, liquidity, and risk management, leaving us determined to rise to the challenges that lie ahead. Very close to their clients, the Banques Populaires, the Caisses d'Epargne, Natixis and Palatine are at the forefront of the drive to inform and support them by taking all the necessary measures to satisfy their needs. Thanks to the strong mobilization of everyone involved, the Group was able to respond very quickly in setting up State-guaranteed loans and is now one of the most active banks to roll-out these credit facilities.

Our business model as a universal banking institution, our financial strength, the trust that our customers place in us, and the commitment of our employees are key assets that will enable us to absorb this profound shock and to take all the necessary steps in unison with the public authorities to ensure the recovery of our economy over time. We will do so in every territorries in line with our core values, those of a cooperative banking group fully aware of the importance of the role it plays for all the different stakeholders in our society.”

¹ See notes on methodology ² Estimate at March 31, 2020 ³ End-of-month average of the Liquidity Coverage Ratio at end-March for the 1^st quarter of 2020 – see notes on methodology ⁴ On the basis of regulatory requirements at end-March 2020 concerning the Maximum Distributable Amount (MDA), integrating the cancellation of counter-cyclical capital buffers by the HCSF on April 1^st 2020 and the application of article 104a relating to the CRD5 directive authorized by ECB on April 8, 2020.

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Find more information on : https://groupebpce.com/en/investors/results-and-publications/results-presentations