News and Press releases

09/02/2017

4th quarter and full-year 2016 results of Groupe BPCE

Published net income[1] of €4bn in 2016. Robust generation of capital, chiefly through retained earnings

Commercial activities remain buoyant

Strong momentum in retail banking

  • 3.7% year-on-year growth in loan outstandings and 1.7% in deposits & savings at Dec. 31, 2016
  • New loan production in excess of €100bn in 2016

Development of Insurance activities[2]

  • Strong momentum in life insurance with gross inflows up 7% compared with 2015
  • Non-life insurance: 5.3 million contracts at end-2016 and 9% year-on-year portfolio growth

 Notable contribution from Natixis’ Corporate & Investment Banking division

  • Excellent momentum enjoyed by Global markets, with high levels achieved by the Equity and Fixed income businesses

 

Strong fundamentals

Revenues [3 ] stand up well despite an interest rate environment highly unfavorable to retail banking activities: €23.4bn, down 1.1%

  • Natixis business line revenues in 2016 up by 2.9%[3] year-on-year, to €8.1bn
  • Retail banking revenues down by 2.2%[4], to €15bn

Decline in the cost of risk to 22 basis points in 2016, lower than the business cycle average (30 to 35bp)

Net income attributable to equity holders of the parent[3] of €3.4bn, up 7.6%

Published net income attributable to equity holders of the parent of €4bn, up 26.7%

 

Robust generation of capital

Substantial capital generation capacity making the Group well-placed to comply with future regulatory requirements

CET1 ratio of 14.3%[5] at Dec. 31, 2016: +130bp in 2016 (including 73bp through retained earnings)

TLAC ratio of 19.4%[5] (including the January 2017 issue of senior non-preferred debt for a total of €1.6bn)

 

Preparation of Groupe BPCE’s new Strategic Plan for 2018–2020

Merger of regional banks: creation of Banque Populaire Auvergne Rhône Alpes and Banque Populaire Méditerranée, reducing the number of Banque Populaire banks to 15 at end-2016 vs. 18 at end-2015                                  

Plans for the transformation of retail banking: presentation on February 21, 2017

 

 

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[1 ]2015 and Q4-15 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 December 31,2015
[2] Entities included: CNP Assurances, Natixis Assurances, Prépar vie (gross inflows from the Banque Populaire and Caisse d’Epargne retail banking networks)
[3] Excluding non-economic and exceptional items
[4] Excluding changes in provisions for home purchase savings schemes and after restating to account for €73m in capital gains on real estate asset disposal recognized in 2015
[5] Estimate at Dec. 31, 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

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