News and Press releases

17/02/2013

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Results for the full year and 4th quarter of 2012

Building on sound results in 2012, generated in a tight business environment, Groupe BPCE is announcing a major project aimed at simplifying its organizational structure. The projected buy-back of Cooperative Investment Certificates (CCIs) follows on directly from the strategic decisions that we have taken since 2009: confirmation of the Group’s cooperative banking model, clarification of its organization, transformation of Natixis’ business model and risk profile, a stronger customer focus adopted by all business activities.

Operation to simplify the Group’s organizational structure: projected buy-back by the Banque Populaire banks and the Caisses d’Epargne, for a total of €12.1 billion1, the Cooperative Investment Certificates (CCIs) held by Natixis in the capital of the Banque Populaire banks and Caisses d’Epargne, followed by the cancellation of these certificates.

Net income attributable to equity holders of the parent (excluding revaluation of the Group’s own debt) of €2.3 billion: solid results in a tight business environment. At the end of the “Together” strategic plan launched in 2010 – which has enabled the Group to return to profit, to reinforce its capital adequacy and liquidity, to reduce its risk profile, notably regarding Natixis, and to make Natixis a fully-fledged member of the Group via the development of synergies with the Banque Populaire banks and the Caisses d’Epargne – Group BPCE is announcing major plans to simplify its organizational structure.

Projected simplification of the Group’s organizational structure

  • Plan for the Banque Populaire banks and the Caisses d’Epargne to buy back the Cooperative Investment Certificates (CCIs) held by Natixis in the capital of the mutual banks, in an amount of €12.1 billion(1)
  • A threefold objective: projected simplification of the Group’s organizational structure, clearer appreciation of Natixis’ performance, and optimization of the allocation of equity within the Group
  • An operation that creates value for Natixis’ shareholders: exceptional payment(2) of dividends in an amount of €2 billion (€0.65 per share), improvement of the cost/income ratio(3), enhanced ROTE(3) (from 8.1% before the operation to 8.5% after the operation)
  • No impact on Groupe BPCE results and marginal impact on its capital adequacy (estimated 15-basis point decline in the Common Equity Tier-1 ratio under Basel 3(4) on a pro-forma basis at Dec. 31, 2012)

Enhancement of the Group’s financial structure in 2012

  • Core Tier-1 ratio under Basel 2.5 of 10.7%5 at Dec. 31, 2012, +160 basis points in 1 year
  • Common Equity Tier-1 ratio under Basel 3 in excess of 9%(4,5) at Dec. 31, 2012, ahead of target
  • Goal to reduce liquidity requirements by €35 billion achieved one year in advance. Liquidity reserves of €144 billion at Dec. 31, 2012, equal to an increase of €34 billion in one year
  • 2013 Medium-/Long-Term refunding program 50%(6) complete at January 31, 2013

Solid results in a tight business environment

  • Stability in core business line revenues at €20.9 billion (-1.0% vs. 2011)
  • Net income attributable to equity holders of the parent (excluding revaluation of the Group’s own debt) of €2.34 billion (-5.9% vs. 2011(7))
  • Net income attributable to equity holders of the parent: €2.15 billion

Continued adaptation of the business models of the core business lines

  • Banque Populaire banks and Caisses d’Epargne: strong growth in the number of active customers leading to substantial growth in on-balance sheet savings deposits and continued funding of the French economy
  • Crédit Foncier: active balance sheet management with the disposal of international assets for €4.9 billion since November 30, 2011; 7% cost reduction vs. 2011; launch of the project to pool IT resources with the creation of the Caisses d’Epargne platform
  • Natixis: goal of reducing capital and liquidity consumption achieved one year ahead of schedule; implementation of the Originate to Distribute model in the Wholesale Banking arm and launch of the Operational Efficiency Plan

1) 2012 dividend rights attached; representing 1.05 x the aggregate equity of the Banque Populaire banks and Caisses d’Epargne
2) Proposal submitted to the Extraordinary General Shareholders’ meeting
3) Return on Tangible Equity, or return on total shareholders’ equity less deeply subordinated notes, intangible assets and  goodwill. Excluding non-operating items – 2012 pro forma versus real 2012
4) Without transitional measures and after restatement for deferred tax assets and subject to the finalization of regulatory provisions
5) Estimate
6) Including amounts raised at the end of 2012 in excess of the 2012 program
7) Pro forma to account for the disposal of Eurosic and Foncia in June and July 2011