Results of Groupe BPCE for the 3rd quarter and 1st nine months of 2016

November 15, 2016

Results [1] of Groupe BPCE for the 3rd quarter and 1st nine months of 2016 : In the first 9 months of 2016, net income attributable to equity holders of the parent stands at €2.8bn [2] , up 8.6%, with published net income attributable to equity holders of the parent of €3.4bn thanks to capital gains realized on the Visa Europe transaction

Commercial activity REMAINS BUOYANT

Strong momentum in the Banque Populaire and Caisse d’Epargne retail banking networks

  • Increase in loan outstandings by 5.0% and in deposits & savings of 2.2% as of Sept. 30, 2016
  • Production of new MLT loans to corporate customers rose by 18.1% compared with 9M-15

Development of Insurance businesses [3]

  • Strong momentum in life insurance with gross inflows up by 16.9% compared with 9M-15
  • Portfolio of non-life insurance contracts up by 9.7% year-on-year

Significant contribution from the Corporate & Investment Banking division of Natixis

  • High level of business activity, with a very good performance achieved by the Fixed Income and Mergers & Acquisitions activities

Robust results thanks to our “UNIVERSAL bank” model

Decline in retail banking revenues offset by the good performance of the core business lines [4] of Natixis

  • Net banking income [5] of the Group’s core business lines declined by 1.5% compared with 9M-15
  • Low interest rates depressed the net interest income generated by retail banking activities
  • 2.9% increase in the net banking income [6] of the core business lines of Natixis driven by CIB (+7.8%) vs. 9M-15

The Group’s cost of risk kept at a low level: 21 basis points in 9M-16

Net income attributable [2] to equity holders of the parent of the core business lines equal to €3.2bn, up by 4.4% vs. 9M-15

TOTAL CAPITAL RATIO TARGET ACHIEVED

  • Fully-loaded total capital ratio of 18.2% [7], ahead of the early 2019 target of 18% [7]
  • CET1 ratio of 14.0% [8] as of Sept. 30, 2016
  • Generation of CET1 via retained earnings: +60bps since the beginning of 2016

PREPARATION OF GROUPE BPCE’S NEW STRATEGIC PLAN FOR 2018 – 2020

Transformation and Business Efficiency Project [9] of Natixis : €250m in cost savings by the end of 2019

Specialized Financial Services : creation of a business line bringing together within Natixis all payment platforms on behalf of Groupe BPCE

Groupe BPCE : presentation in early 2017 of the digital action plan, its new local banking relationship models, and the Group’s Transformation and Operational Excellence project.
 

[1] 9M-15 and Q3-15 are presented 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 September 30, 2015

[2] Excluding non-economic and exceptional items and after restating to account for the impact of IFRIC 21

[3] Entities included: CNP Assurances, Natixis Assurances, Prépar vie (gross inflows from the Banque Populaire and Caisse d’Epargne retail banking networks)

[4]Core business lines: Commercial Banking & Insurance, Investment Solutions, Corporate & Investment Banking, and Specialized Financial Services

[5] Excluding non-economic and exceptional items

[6] Excluding exceptional items

[7] CRR/CRD IV without transitional measures

[8] Estimate at Sept. 30, 2016 - CRR/CRD IV without transitional measures (except for deferred tax assets on tax loss carryforwards and pro forma of the additional phase-in of the stock of DTA in accordance with regulation 2016/445); additional Tier-1 capital takes account of subordinated debt issues that have become ineligible and capped at the phase-out rate in force

[9] Plans will be subject to the consultation process with employee representatives

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