Results for the 3rd quarter and first nine months of 2021

November 4, 2021

Reported 9M-21 results: strong growth in revenues to €18.7bn (+15.5% vs. 9M-20 and +7.3% vs. 9M-19) thanks to buoyant sales momentum in all our different business lines

Net income: €3.2bn, multiplied by a factor of 3.2 vs. 9M-20

Q3-21: reported net banking income up 14.2% to €6.3bn and reported net income of €1.3bn

Very tight discipline over expenses: cost/income ratio equal to 66.9% in 9M-21

Reinforcement of our positions in Asset Management

and work on streamlining our Insurance and Payments businesses proceeding on schedule

Retail Banking & Insurance: strong commercial momentum in the Banques Populaires and Caisses d'Epargne networks and in all our business lines. Revenues up by 7.5% in 9M-21 and by 7.2% in Q3-21

  • Loan outstandings: year-on-year growth of 6.9%, including +8.8% in residential mortgages, +5.9% in consumer credit, and +5.2% in equipment loans
  • Financial Solutions & Expertise: net banking income up 7.8% in 9M-21, extremely dynamic activity in all business lines
  • Insurance: 5.2% revenue growth in 9M-21 and 35% growth in premiums
  • Digital: continued rollout of digital tools for the BP and CE networks: 11.7 million active customers, +19% vs. end-2020

Global Financial Services: revenues up by 27.6% in 9M-21 and by 22.2% in Q3-21

  • Asset & Wealth Management: assets under management equal to €1,199bn at end-September for Natixis IM; 6 consecutive quarters of positive inflows on LT products, representing a total of €30bn over the period; net banking income up by 20.3% in Q3-21 year-on-year
  • Corporate & Investment Banking: strong commercial activity and continued improvement in the cost of risk; growth in Global Markets revenues including very good performance in FIC-T vs. Q3-20 (+28%); Global Finance revenues up by 20% year-on-year in Q3-21 driven, in particular, by Real Estate and Trade finance as well as Infrastructure and Energy; 40% increase in Investment Banking revenues in Q3-21, driven by the Acquisition Structured Finance and Strategic Equity Capital Markets businesses

Positive jaws effect: cost/income ratio of 66.9% over 9M-21, down by 6.3pp vs. 9M-20 and down by 3.1pp vs. 9M-19

  • In 9M-21, the cost/income ratio improved by 2.6pp in Retail Banking and by 9.8pp in the Global Financial Services division

Continued implementation of a cautious provisioning policy

  • Group cost of risk equal to €1.2bn in 9M-21, or 20bps, down by 43.7% vs 9M-20 and up by 25.2% vs 9M-19
  • Group cost of risk came to €342m in Q3-21, or 18bps

Very high solvency levels, above the target for end-2021

  • CET12 ratio: 15.8% at end-September 2021
  • Generation of organic CET1 ratio: 22bps in Q3-21

Rationalization3 of capital ties and strengthening of industrial partnerships with La Banque Postale

  • Plan to sell the 16.1% stake held by the Group in CNP Assurances to La Banque Postale (€2.4bn)
  • Natixis IM: plan to acquire from La Banque Postale its 45% stake in Ostrum AM and its 40% interest in AEW Europe (€240m)
  • Plans under study to strengthen and extend commercial and industrial partnerships in Insurance and Asset Management

Projects3 launched to streamline the Group's organizational structure:

  • BPCE's planned acquisition of Natixis' Insurance and Payments activities proceeding according to plan

Laurent Mignon, Chairman of the Management Board of Groupe BPCE, said: "In the 3rd quarter of the year, commercial momentum was strong in all our business lines, which were able to support the projects of all our customers in this period of economic recovery. Working closely with their territories and customers, the Banques Populaires and Caisses d'Epargne once again delivered very solid growth, notably in insurance and consumer credit. Our global business lines – Asset Management and Corporate & Investment Banking – record sustained performance in their respective areas of expertise, driven by a dynamic market. Plans to simplify our organization are progressing according to schedule and the announcement of the streamlining of our relations with Banque Postale represents a complementary aspect of this initiative. More than ever, our Group is determined to continue supporting its customers throughout its local catchment areas because, for a cooperative banking Group such as ours, meeting the major challenges of the energy, digital, and societal transition is an absolute priority, at the heart of our strategic ambitions.”


1 See notes on methodology and excluding the Coface contribution
2 Estimate at end-September 2021
3 Project submitted to the relevant social & economic committees for consultation purposes