Results for the 2nd quarter and 1st half of 2024

RATINGS

The Rating agencies assign top European ratings to Groupe BPCE

• S&P upgraded the LT credit rating to A+, outlook stable on July 15, up from the previous A (outlook stable)
• Moody’s confirmed its rating of A1, outlook stable on July 11
• R&I confirmed its rating of A+, outlook stable on July 30
• Fitch confirmed its rating of A+, outlook stable on January 19
   

STRATEGIC DEVELOPMENTSNGS   

Groupe BPCE is on the move, implementing the acquisition- and partnership-driven growth strategy laid out in its Vision 2030 strategic plan

• Project to acquire Société Générale Equipment Finance: integration process and submission of approval requests in line with the initial schedule²
• Project to acquire³ Belgium’s Nagelmackers bank by Caisse d’Epargne Hauts de France announced on July 22
• Investments by Natixis Partners in M&A boutiques Tandem Capital Advisors in Belgium and Emendo Capital in the Netherlands
• Natixis Interépargne, one of the leading players in the employee savings and pensions in France, announced on May 3 that it had signed a MoU with HSBC to acquire HSBC Epargne Entreprise, France's 9^th-largest player in this area
• Announcement on June 13 for the creation of a JV between BPCE and BNP PARIBAS in payment processing (17 billion transactions).
  The processor would be No. 1 in France and with the ambition of becoming one of the Top 3 players in Europe
• Project to acquire iPaidThat for becoming a benchmark player in Digital financial management solutions for corporates

KEY FIGURES⁴

H1-24: net banking income of €11.4bn, up 1% YoY thanks to the good performance achieved by all the business lines; gross operating income up 11% generated by a positive jaws effect; reported net income¹ of €1.7bn, up 12% vs. H1-23

Q2-24: 1st rebound in quarterly net banking income YoY since end-2022, up 3% vs. Q2-23 to €5.6bn; growth driven by the dynamism of the two retail banking networks, by specialized financing, and the global businesses; net income of €806m

Solvency and liquidity levels remain very high, with a CET1 ratio of 15.6%⁵ and a LCR of 149%⁵ at end-June 2024

BUSINESS³

 RETAIL BANKING & INSURANCE Continued growth in the client base in the Banque Populaire and Caisse d'Epargne networks across all segments, with 452,000 new clients⁶ in H1-24. Net banking income up 2% YoY in Q2-24 thanks to ongoing asset repricing and growth in commissions 

• Local and regional financing: 1% growth in loan outstandings YoY to €718bn at end-June 2024
• 3% growth in clients’ deposits⁷ at end-June 2024 YoY, i.e. +€18bn, reaching a total of €676bn.
• Insurance: gross life insurance inflows of €8.3bn in H1-24. Premiums up 7% vs. H1-23.  Client equipment rate⁸ in P&C and personal protection insurance of 34.6% at end-June 2024, +0.4% YtD
• Financial Solutions & Expertise: net banking income up 4% vs. H1-23, driven notably by Leasing, Factoring and Consumer Credit activities
• Digital & Payments: +5% increase in the number of card transactions at end-June 2024 YoY
   

 GLOBAL FINANCIAL SERVICES Strong revenue growth in Q2-24, +8% YoY; continued commercial development in all Corporate & Investment Banking businesses, net banking income up 7% in Q2-24 YoY, and solid performance in Asset Management, net banking income up 10% in Q2 -24 YoY

• Corporate & Investment Banking: net banking income stands at €1.1bn in Q2-24; very good performance for Global Markets driven by Fixed-income and Equity, revenues up 9% vs. Q2-23; net banking income up 18% for Global Finance and 20% for Investment Banking in Q2-24 YoY; M&A revenues increased by 6% vs. Q2-23

• Asset & Wealth Management: 6% YtD growth in Natixis IM's assets under management, reaching €1,232bn end-June 2024; sustained net inflows of €11bn in Q2-24 and €17bn in H1-24; strong net banking income growth in Q2-24 to €850m

P&L / CAPITAL³

Expenses down 3% in H1-24 and 3 pp improvement in the cost/income ratio

Cost of risk: €942m in H1-24, equal to 22bps, reflecting both Groupe BPCE's footprint in financing the economy and a prudent provisioning policy

Financial strength: CET1 ratio stood at 15.6%⁵ at end-June 2024; liquidity reserves of €329bn

Nicolas Namias, Chairman of the Management Board of BPCE, said: “Groupe BPCE has completed the first half of 2024 marked by a number of extremely significant strategic developments. The upgrading of the Group's rating, now unanimously ranked in the A+ category for its long-term credit ratings, confirms the relevance of the financial management decisions made over several months and Groupe BPCE's ability to implemente its new strategic ambitions as presented towards the end of June in the “VISION 2030” project.

The Group, already on the move, has launched a new development momentum, characterized especially by several external growth operations, such as the acquisition project enabling Groupe BPCE to become the European leader in equipment lease financing, or the steps taken to reinforce the multi-boutique M&A network. The partnerships forged with leading players in payments solutions or energy renovation also demonstrate our ability to develop our activities as an open group.

Groupe BPCE recorded in the second quarter the first rebound of its revenues year-on-year since end-2022. Consequently, the group reports an increase in its half-year results thanks to sustained commercial activity, both in retail banking and insurance, whose businesses are beginning to benefit from the new interest rate environment, and in its global businesses with their very good performance. True to their capacity for innovation, the Banques Populaires and Caisses d'Epargne have strengthened their commercial offerings for first-time homebuyers and confirmed once again their status as pioneers in offering their clients the latest innovations in payment solutions. Our asset management business has generated highly positive net inflows, while income from our Corporate & Investment Banking arm has continued to grow with closely managed regularity.

The Group's financial discipline is illustrated by its tight control of costs in an inflationary environment, its prudent risk policy, and the preservation of an extremely high level of solvency.

Finally, six years after becoming the first premium partner to commit to the Olympic & Paralympic Games, Groupe BPCE and its companies are particularly pleased to have shared the magic of the Games with the greatest number of people in all the territories thanks to the Torch Relay, and to have contributed the best of its banking and payment expertise to ensure the success of this extraordinary sporting event. Today, it's time for all our employees, clients, and cooperative shareholders to share our enthusiasm and fully embrace the exceptional emotions inspired by these games.”

^{1 Group share 2 Employee representative bodies consulted, awaiting regulatory authorizations 3 Consultation of employee representative bodies underway, preparation of regulatory filing 4 See the notes on methodology appended to this press release 5 Estimated figures at end-June 2024 6 64,500 additional active clients over the past 6 months 7 On-balance sheet savings and deposits within the scope of the Retail Banking & Insurance business unit 8 Scope: BP and CE individual clients}