News and Press releases

08/11/2018

Results for the 3rd quarter and first 9 months

Dynamic business performance (9M-18 underlying NBI at €18.1bn +1.9%, at constant exchange rates) revenues growth in Retail Banking & Insurance in Q3-18 strong capital position acceleration of the transformation of the Group

BUSINESS LINES IN 9M-18 (1) : A DIVERSIFIED REVENUE BASE ENSURING RESILIENT EARNINGS

-  9M-18 reported Net income-Group share at €2.4bn, -3.5% (-14.6% in Q3-18 due to exceptional items weight this quarter)

-  9M-18 underlying Net income-Group share at €2.7bn, +2.0% (+0.7% in Q3-18)

Retail Banking & Insurance: Resilient performance achieved

  • Q3-18: Growth for underlying Retail Banking & Insurance revenues, positive jaw effect taking year-on-year increase in the division’s income before tax to 6.1%, after restatement of IFRIC 21
  • 9M-18: stability in underlying net banking income (2) to €12,596m (€4,132m in Q3-18, +1.7%)
  • Enhanced commission income (excluding Early Repayment Fees) in the Banque Populaire and Caisse d’Epargne networks (+4.4% in 9M-18)
  • Insurance: growth in business activities and revenues (+8.2% in 9M-18)
  • Solid growth in revenues posted by the Payments activities (+15% in 9M-18)

Asset & Wealth Management: Strong momentum

  • Buoyant growth in the division with a €2,413m contribution to net banking income, representing year-on-year growth of 13.6% at constant exchange rates (+6.7% to €818m in Q3-18)

Corporate & Investment Banking: High 9M-18 ROE at 14.4%, +0.3 pp vs. 9M-17

  • Contribution to the Group’s underlying net banking income of €2,657m, up in 9m-18, on a year-on-year  basis excluding CVA/DVA and cash equity

STRONG CAPITAL POSITION AND ENHANCED RATINGS

  • CET1 (3) pro forma and TLAC (3,4) ratios equal to 15.4% and 22.4% respectively at September 30, 2018; the TLAC target defined in the strategic plan has already been achieved.
  • S&P credit rating on the Group’s long-term senior preferred debt upgraded from A, positive outlook positive, to A+, stable outlook.
  • Japanese rating agency R&I revised Groupe BPCE’s outlook from “stable” to “positive.”
  • EBA stress test: CET1 ratio of 10.7 % post stress, higher than the European weighted average

ACCELERATION OF THE TRANSFORMATION OF THE GROUP : FOCUSING ON OUR CORE RETAIL BANKING BUSINESS AND VALUE CREATION

  • Project (5) to integrate Crédit Foncier activities and expertise within the group
  • Project (5) to integrate the Consumer Finance, Factoring, Leasing, Sureties & Guarantees, and Securities services businesses of Natixis’ SFS division within BPCE SA
  • Project (5) to dispose of banking interests in Africa

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(1) Variations express differences between 9M-17pf and 9M-18 or between Q3-17pf and Q3-18, unless specified to the contrary.
(2) Excluding provision for home-purchase saving schemes.
(3) Estimate at September 30, 2018 – CRR/CRD IV without transitional measures, including IPCs and transformation plan impacts.
(4) Cf. Notes on methodology related to the total loss-absorption capacity, page 14.
(5) Projects are subject to the notification/consultation process of the trade union representatives of the employees of the Group entities concerned by this initiative and will also be subject to the usual conditions precedent for this type of transaction.