Results for the 3rd quarter and first 9 months of 2023

KEY FIGURES¹

9M-23: net banking income of €16.7bn, down 8%, impacted by the change in interest rate environment; continued asset repricing progressively offsetting higher interest rates on liabilities; costs remain under very tight control, -2% vs. 9M-22; net income² at €2.4bn

Q3-23: NBI of €5.5bn, stable vs. Q2-23; expenses down 3% YoY; net income² at €917m

Very high level of capital: CET1 ratio of 15.4%³ at end-September 2023, +20bps vs. the end of June driven by earning generation in Q3-23

BUSINESS LINES / ACTIVITIES¹

Retail Banking & Insurance: more than 730,000 new customers⁴ YTD thanks to strong commercial momentum in the Banque Populaire and Caisse d'Epargne networks; successful cross-selling strategy with the insurance and specialized financial services businesses; 9M-23 net banking income down 9% as anticipated due to the quick rise in the cost of liabilities

• Financing of territories: loan outstandings grew by 3% YoY, reaching €716bn at end-September 2023
• Deposits⁵ up 2% YoY, reaching €669 billion at end-September 2023
• Insurance: sustained gross in life insurance inflows of €9.3 billion in 9M-23, premium up 14% vs. 9M-22
• Financial Solutions & Expertise: net banking income up +8% vs. 9M-22 driven by the factoring and leasing activities
• Digital & Payments: mobile and instant payments multiplied by 1.9 at end-September 2023 YoY

Global Financial Services: revenues up 6% in Q3-23 YoY at constant exchange rates; strong performance achieved by Natixis CIB and growth in asset management revenues

• Corporate & Investment Banking: net banking income 11% sharp growth in Q3-23 YoY at constant exchange rates; Global Markets revenues up 6% YoY driven by a strong performance in Equity (+24%) and stable Fixed-income revenues in a down European market; 9% growth in net banking income YoY for Global Finance with good momentum in Global Trade
• Asset & Wealth Management: 3% YtD growth in Natixis IM's assets under management, reaching €1,114bn at end-September 2023; net inflows of €5.1 bn in 9M-23 (excluding life insurance and money-market products) with a product mix more oriented towards fixed-income; net banking income up 1% in Q3-23 YoY at constant exchange rates

P&L / CAPITAL¹

Expenses under very tight control, down 2% in 9M-23 and 3% in Q3-23 YoY

Low cost of risk and prudent provisioning policy: -18% in 9M-23 to €988m, or 16bps, including provision reversals after several years of very cautious provisioning; provisioning for proven risk up slightly

High level of solvency: CET1 ratio of 15.4%³ at end-September 2023, +20bps vs. end-June 2023 thanks to net income generated in Q3-23; liquidity reserves at €289bn

Nicolas Namias, Chairman of the BPCE Management Board, said: “Groupe BPCE experienced a strong commercial momentum both in the Banques Populaires and Caisses d’Epargne with the confidence of 730,000 new customers since the beginning of the year, as well as in our global business lines and notably the Corporate & Investment Banking. We are fully engaged in our efforts to finance the economy; the Banque Populaire and Caisse d'Epargne networks have each launched new home financing offers aimed at the under-35s, thereby amplifying the government's zero-rate loan scheme. 

We are actively managing our financial equilibriums to prepare the future with confidence, by decreasing our expenses while strengthening our financial solidity, which gained 20bps this quarter to reach the highest European level. In the current context of economic and geopolitical uncertainties, we are keeping a prudent provisioning policy.

Finally, true to our commitment to being the Bank of Sport in France and a useful partner contributing to the success of the Olympics, we are efficiently meeting the challenge of managing ticket payments for the Olympic & Paralympic Games Paris 2024, the largest operations ever carried out on this scale."

¹ See the notes on methodology annexed to this press release

² Group share

³ Estimated ratio at end-September 2023

⁴ 200,000 additional active customers over the past 12 months

⁵Including centralized regulated savings