Results for the first quarter of 2016 of Groupe BPCE
Good commercial performance against a background of low interest rates and adverse market conditions.
Net income attributable to equity holders of the parent stable at €872m*
CONTINUED GROWTH DYNAMIC PURSUED BY THE CORE BUSINESS LINES[1]
Banque Populaire and Caisse d’Epargne retail banking network
- Buoyant year-on-year growth in loan outstandings of +4.2% after 2 years of higher than market growth and growth in on-balance sheet deposits & savings +3.0%
- Growth in the customer base with priority targets: +157,000 principal active customers using banking services over one year
Insurance[2]
- Strong momentum in life insurance with gross inflows up +23% vs. Q1-15
- Growth in portfolios of non-life insurance contracts +10% vs. March 31, 2015
Core business lines of Natixis
- Investment Solutions: assets under management of €776bn at end-March 2016, oriented downward following a negative foreign exchange effect, disposal of affiliates and slight outflows (-€1bn); continued increase in margins
- Corporate & Investment Banking: proportion of commissions in the revenues from structured financing maintained at a high level (37% in Q1-16) and continued strong momentum in Equity derivatives
- Specialized Financial Services: good performance with premiums issued up +15% vs. Q1-15 (Sureties & financial guarantees), factored turnover up +10%, and strong growth in new production of real-estate leases
RESULTS STABLE DESPITE THE ENVIRONMENT CHARACTERIZED BY low interest rates
- Decline in core business line revenues[3] to €5.7bn (-3.1%): commercial performance of retail banking limiting the negative impact of interest rates on net interest income and stability in Natixis core business lines revenues
- Tight control over operating expenses, excluding increase in the estimated contribution to the Single Resolution Fund (SRF): +0.4% vs. Q1-15 (SRF: €218m in 2016, i.e a €112m increase vs. 2015)
- Decline in the cost of risk5 to a moderate level: €372m (-24.6%), or 24bps (vs. 32bps in Q1-15)
- Attributable net income generated by the core business lines2: €1bn in Q1-16, -1.2% vs. Q1-15
- Attributable net income (excluding estimated increase in the SRF[4]): €680m, +5.4% vs. Q1-15
Continued strengthening of the balance sheet
- Common Equity Tier 1 ratio (or CET1[5]) of 13.3% at March 31, 2016 (+10pbs vs. Dec. 31, 2015)
- Total capital adequacy ratio[5[6] of 17.3% (+30pbs vs. Dec. 31, 2015)
Q1-15 pro forma (cf. the note on methodology at the end of this press release) ; unless specified to the contrary, all changes use the same reference base of March 31, 2015
*Excluding non-economic and exceptional items, and after restating to account for the IFRIC 21 impact
[1] Core business lines: Commercial Banking & Insurance, Investment Solutions, Corporate & Investment Banking, and Specialized Financial Services
[2] Entities included: CNP Assurances, Natixis Assurances, Prépar Vie (gross inflows held by the Banque Populaire and Caisse d’Epargne)
[3] Excluding non-economic and exceptional items
[4] €102m increase in net income attributable to equity holders of the parent vs. Q1-15
[5] Estimate at March 31, 2016 – CRR/CRD4 without transitional measures after deferred tax asset restatement on tax loss carryforwards
[6] Including circa €1.6bn in Tier-2 issues completed after March 31, 2016
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About Groupe BPCE
Groupe BPCE is the second-largest banking group in France. Through its 100,000 staff, the group serves 35 million customers – individuals, professionals, companies, investors and local government bodies – around the world. It operates in the retail banking and insurance fields in France via its two major networks, Banque Populaire and Caisse d’Epargne, along with Banque Palatine and Oney. It also pursues its activities worldwide with the asset & wealth management services provided by Natixis Investment Managers and the wholesale banking expertise of Natixis Corporate & Investment Banking. The Group's financial strength is recognized by four credit rating agencies with the following senior preferred LT ratings: Moody's (A1, stable outlook), Standard & Poor's (A, stable outlook), Fitch (AA-, negative outlook) and R&I (A+, stable outlook).
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