Results for the 3rd quarter and first 9 months of 2022

November 9, 2022

KEY FIGURES

9M-22: Revenue growth of 3.8% to €19.5bn, driven by positive commercial momentum
 Net income up 6.9% vs. 9M-21, to a total of €3.4bn

Q3-22: Revenues up 0.2% to €6.3bn in a contrasting business environment
 Net income of €1.3bn, -3% vs. Q3-21, including a €184m provision for future risks

Cost/income ratio1 of 65.1% in 9M-22 thanks to good cost control

BUSINESS LINES/ACTIVITIES

Retail Banking & Insurance: year-on-year growth in the customer base of both retail banking networks; continued rise in interest rates since January 2022 to reflect increased cost of funding, especially Livret A; net banking income up 4.3%2 in 9M-22

  • Local and regional financing: very strong 8.4% growth in loan outstandings YoY
  • Insurance: net inflows of €4.1bn in life insurance over 9 months, 8% growth in non-life insurance premiums
  • Financial Solutions & Expertise: very buoyant growth in business activities, net banking income up +8%2 vs. 9M-21
  • Digital Inside: 10.1m active clients on mobile devices, +18% vs. September 2021. 49 million visits per week on average

Global Financial Services: revenue growth of 0.3%2 vs. 9M-21 in what remains a challenging market environment
Successful diversification strategies in AWM and CIB

  • Asset & Wealth Management: revenue resilience thanks to the diversified expertise model, -3.7%2 vs. 9M-21; growth in the overall fee rate in Q3-22 to 25.9bps; €1,095bn of assets under management at end-September 2022 for Natixis IM;
  • Corporate & Investment Banking: Net Banking Income up 3.9%2 in 9M-22 and 3.8%2 in Q3-22 thanks to the strategy pursued to diversify expertise and expand the client base. Global Markets revenues up 25%2 YoY in Q3-22; slight growth in the net banking income generated by Global Finance in 9M-22 in a more adverse business environment


P&L/CAPITAL

Strict cost control: cost/income ratio of 65.1%1 in 9M-22 (excluding SRF), -0.4pp vs. 9M-21, despite the impact of inflation and with an investment policy to support business line development

Resolutely prudent provisioning policy and cost of proven risk (Stage 3) remaining at a low level:

  • Cost of risk for the Group: €1,228m in 9M-22, or 20bps, and €347m in Q3-22 including respectively €522m in 9M-22 and €184m of additional provisions for future risks (Stage 1/Stage 2)
  • Group cost of proven risk (Stage 3) of €706m in 9M-22, or 12bps vs. 18bps in 9M-21

Capital adequacy at a very high level: CET13 ratio of 15.1% at end-September 2022, +19bps vs. end-June 2022


STRATEGY

Strategic initiative in the health sector with the proposed acquisition4 by BPCE Lease of 100% of the capital of Eurolocatique and its subsidiary Médidan, the leading French player in the financing of healthcare equipment through financial leasing

 

Laurent Mignon, Chairman of the Management Board of BPCE, said: “Groupe BPCE recorded a solid quarter in a more difficult economic and financial environment, marked by high inflation, intense market volatility, and rapidly rising interest rates. We continued to play our role to the full alongside our clients with all our companies, and the commercial activities of our different business lines remained strong both in our two BP and CE retail banking networks as well as in our Corporate & Investment Banking business unit that performed well thanks to the positive impact of its diversification strategy.

We are also keeping a close eye on the economic environment and pursuing a prudent provisioning policy, as we have for several past quarters.

Groupe BPCE’s customers can rely on its talented teams and financial strength to weather the current uncertain environment.

On December 3, at the end of an exemplary succession process in terms of both speed and the quality of the in-house candidates, Nicolas Namias will be succeeding me as Chairman of the Management Board of BPCE. This is a great opportunity for our Group and I have every faith in the qualities of Nicolas, who has been by my side for 8 years and who, along with all the senior managers of the Group, will pursue the ambitions and the ongoing development of each of our business lines. I would also like to extend my thanks to all the people working for our Group, the Banques Populaires, the Caisses d’Epargne, Natixis CIB, Natixis IM and the “Communauté BPCE” whose commitment, outstanding skills and sense of customer service make Groupe BPCE a recognized model in our industry fully prepared for the challenges facing our society.”

 

1 Underlying figures and excluding SRF contributions - See note on methodology
2 Underlying
3 Estimate at end-September 2022
4 This project is the subject of an information-consultation procedure with BPCE Lease employee representative bodies; the project can only be finalized after obtaining the agreement of the competent competition authorities

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